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EarningsQ2 2026 Earnings Report
PSBD Q2 2026 EPS Results
Actual EPS$0.27
Consensus EPS$0.43
Beat/MissMissed by -$0.16
One Year Ago EPS$0.43
PSBD Q2 2026 Revenue Results
Actual Revenue$23.97M
Expected Revenue$25.97M
Beat/MissMissed by -$2.00M
YoY Revenue Growth-7.57%
Earnings Announcement Details
QuarterQ2 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
PSBD Upcoming Earnings
Palmer Square Capital BDC Inc.'s next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
PSBD Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
Management emphasized portfolio resilience (low nonaccruals, high yields, diversification), improved funding costs, solid liquidity and proactive capital allocation (expanded buybacks). However, the company reported lower investment income (down 13.8% YoY), modest NAV and fair value declines (~0.7% NAV, ~3.6% portfolio fair value QoQ), concentrated realized losses YTD, and sector-specific weakness in software valuations amid subdued deal activity and macro uncertainty. On balance, positive operational actions and credit fundamentals were highlighted as offsetting near-term income and valuation headwinds.Company Guidance
Capital Deployment and Realizations
Deployed $72.4 million of capital in Q2 2026 (21 new commitments, avg ~$3.3M each) and realized ~$109.8 million through repayments and sales, supporting portfolio rotation and liquidity management.
Strong Yield Profile
Weighted average total yield to maturity of debt and income-producing securities (fair value) was 11.95% and 8.43% on an amortized cost basis, with new private credit loans representing 24.1% of new investments at a weighted average spread of 534 bps.
Net Investment Income and Dividend
Generated net investment income of $12.0 million in Q2 2026, or $0.39 per share, and paid a $0.39 per share dividend (includes $0.03 supplemental). Board declared Q3 base dividend of $0.36 per share.
Improved Funding Cost and Extended Facility
Reset and extended BDC CLO, lowering weighted average cost of debt to SOFR + 1.39% from SOFR + 1.72%, extending reinvestment period to July 2031 and maturity to July 2039; transaction expected to be fully accretive (after refinancing costs) beginning Q4 2026.
Strong Liquidity and Balance Sheet
Available liquidity (cash + undrawn capacity) of approximately $331 million (up from $325.3M prior quarter); total assets ~$1.1B, total net assets $406.2M, debt-to-equity ~1.71x.
Portfolio Diversification and Credit Quality
Total investment portfolio fair value ~$1.11B diversified across 45 industries; 96% senior secured, 10 largest investments = 10.74% of portfolio, average hold size ~$4.2M, fair-value weighted average internal rating 3.6, PIK income only ~1.37% of investment income.
Low Nonaccruals and Healthy Credit Metrics
Reported a 0.29% nonaccrual rate; nonaccruals represent ~29 bps on a fair value basis (149 bps at cost); first lien borrowers (fair value weighted) with avg EBITDA $463M, senior secured leverage 5.6x and interest coverage 2.5x.
Share Repurchase Program Expanded
Expanded share repurchase program to $30 million to capitalize on valuation dislocation (used about $4M under prior program). Program structure: $10M via 10b5-1 (formulaic) and $20M open-market (discretionary).
PSBD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed