Financial Data and Key Metrics Changes - Net investment income (NII) per share for Q4 2025 was $0.39, while GAAP net loss per share was $0.14, or $0.10 excluding one-time financing-related expenses [4][5] - NAV per share decreased to $14.18, down 3.3% from the previous quarter [5] - Total investment income for the quarter was approximately $78.4 million, a decline of $4.2 million, or 5.1% from the prior quarter [20] Business Line Data and Key Metrics Changes - New commitments in the December quarter totaled $141 million across 26 transactions, with a weighted average spread of 497 basis points [11] - The portfolio had a fair value of $3.17 billion, invested in 247 companies across 46 different industries, with 99% of the direct origination portfolio being first lien [12][13] - The weighted average yield at cost of the direct origination portfolio was 10%, down from 10.3% in the previous quarter [13] Market Data and Key Metrics Changes - The weighted average net leverage on new commitments was 4 times in the December quarter [11] - Investments on non-accrual status declined to 2.6% of the portfolio at fair value, down from 3.1% in the prior quarter [16] - Borrower net leverage was 5.29x at the end of December, unchanged from the end of September [18] Company Strategy and Development Direction - The company plans to aggressively utilize a new $100 million stock repurchase plan, believing it to be more accretive than deploying capital into new investments [9] - The board declared a quarterly dividend of $0.31 per share, reflecting a reassessment of the company's long-term earning power [10] - The company remains focused on first lien positions and cautious usage of PIK, maintaining a low software exposure [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the intrinsic value of the investment portfolio, despite current market prices not reflecting this value [10] - The company anticipates that the current level of activity will allow for the full utilization of the stock repurchase authorization by late May [33] - Management noted that the persistence of discounts in the market is likely, but they will continue to explore strategies to unlock shareholder value [26][27] Other Important Information - The company restored two investments to accrual status during the quarter, including LendingPoint and Compass Health, which was fully repaid [17] - The cost of debt for the quarter declined to 5.95%, down from 6.37% in the prior quarter [22] Q&A Session Summary Question: Future strategies regarding stock buybacks - Management indicated they will consider all options to ensure shareholders receive their true returns, acknowledging the persistent discounts in the market [25][26] Question: Clarification on the new $100 million repurchase plan - The new repurchase plan is discretionary and will be implemented during quiet periods using a 10b5-1 plan to maximize share purchase activity [32][33] Question: Sustainability of the new dividend level - Management stated that the new dividend level of $0.31 was deemed appropriate based on earnings power assessments and expected repayments from Merx [34][36] Question: Concerns about software exposure and leverage - Management explained that their software exposure is lower than industry average and focused on companies with consistent performance and financial covenants [39][41] Question: Common issues among underperforming credits - Management clarified that the underperforming credits are older investments that have been on the watch list for some time, with idiosyncratic issues compounded by market stress [48][53]

Core Insights - Personal loans are often a more affordable option compared to credit cards, especially for unexpected expenses or debt consolidation, but finding lenders willing to work with individuals with bad credit can be challenging [1] Group 1: Lender Evaluations - LendingClub is highlighted as the best overall lender due to its simple application process, competitive rates, and fast funding, with loans disbursed as soon as one business day after approval [2][3] - Oportun stands out for offering both unsecured and secured personal loans, with accessible customer support and flexible repayment terms [4][5] - LendingPoint is noted for its straightforward application process and funding speed, with loans available from $1,000 to $36,000 and repayment terms of 24-72 months [6][10] - Upstart is recognized for high customer satisfaction ratings and fast funding, although it has limited repayment terms of 36 or 60 months [11][12] - Avant offers relatively low rates compared to competitors, with loans up to $35,000 and funding available as soon as one business day [13] - Prosper allows applications with co-applicants, which can improve approval chances and loan terms [14][15] - Best Egg provides customizable payment options through its Payment Pathways program, although it charges origination fees up to 9.99% [19][20] - Upgrade offers flexible loan terms ranging from 24-84 months, with loans from $1,000 to $50,000 [21][22] - OneMain Financial is noted for its fast funding, with loans available as soon as one hour after approval for qualifying borrowers [23][24] Group 2: Loan Characteristics - Personal loans can be secured or unsecured, with secured loans potentially offering lower interest rates due to collateral [31][32] - Borrowers with bad credit typically face higher interest rates and fewer loan options, making it essential to compare rates before applying [33][34] - Loan amounts and repayment terms vary significantly among lenders, with some offering loans as large as $100,000 and terms extending up to seven years [36][37] - Common fees associated with personal loans include origination fees, which can be a percentage of the loan amount, and late payment fees [38][40]