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EarningsQ2 2026 Earnings Report
STRC Q2 2026 EPS Results
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STRC Q2 2026 Revenue Results
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Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeAfter Close
Conference CallThursday, July 30, 2026
STRC Upcoming Earnings
Strategy Inc 9% Perp Stretch PFD Registered Shs Series A's next earnings date is estimated for November 4, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
STRC Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a strongly positive operating and financial quarter highlighted by record originations, record investment income and NII, AUM growth, improved liquidity and reduced leverage, and ongoing adviser contributions. Credit metrics remain largely stable with very low non-accruals, though management noted a mixed-quality pipeline and increased competition; prepayment-driven revenue is expected to normalize in Q3 which may moderate near-term income. Expense growth tied to variable compensation and a modest shift toward mid-rated credits are items being actively managed.Company Guidance
Record Originations and Fundings
First half 2026 record originations of $2.74B (up 35.6% YoY) and record fundings of $1.35B (up 8.5% YoY). Q2 commitments >$927M and Q2 fundings >$647M.
Strong Top-Line Investment Income and NII
Q2 total investment income was a record $149.1M (up 5.4% QoQ, 8.5% YoY). Core investment income was $134.4M (roughly consistent with Q1, +7.8% YoY). Net investment income (NII) was a record $92.9M or $0.50/share (up 5.5% QoQ, 4.7% YoY).
Dividend Coverage and Supplemental Distribution Track Record
Q2 NII covered base shareholder distribution by 125% and full distribution (including $0.07 supplemental) by 106%. This represents the 24th consecutive quarter with a supplemental distribution.
Asset Growth and Platform Scale
Assets under management grew to approximately $6.1B (up 14.4% YoY). Hercules Adviser now manages nearly $2B of committed capital; platform manages ~120 employees with ~60 on the investment team.
Improved Liquidity and Lower Leverage
BDC available liquidity ended quarter at $652.9M and platform liquidity >$1B. GAAP leverage decreased to 103.9% from 115.4% QoQ; regulatory leverage decreased to 88.5% from 99.7% QoQ. Subsequent issuance of $325M institutional unsecured notes at 6.3% strengthened liquidity.
Credit Profile Largely Stable with Low Non-Accruals
Weighted average internal credit rating was 2.17 (vs 2.11 Q1), rated 4 and 5 credits remain <2% of portfolio. Non-accruals small: two loans (cost ~$16M, fair value ~$5.5M) representing ~0.3% cost and ~0.1% value of portfolio.
NAV Improvement and Realized/Unrealized Gains
NAV per share increased $0.25 to $12.15 (+2.1% QoQ). Net unrealized appreciation of $29.6M and net realized gains of $7.7M in Q2.
Robust Portfolio Capital Raises and Exits
29 portfolio companies raised ~$5.7B in Q2; YTD through Q2 portfolio companies raised $9.3B. Year-to-date portfolio exits included 12 M&A events and two IPOs, with three additional M&A closings post-quarter.
Operational and Adviser Contribution
Hercules Adviser contributed $7.0M in NII to the BDC in Q2 (dividend $2.1M + $4.9M expense reimbursement), a 26% increase YoY. Adviser continues to provide recurring, non‑NII cash flow benefits.
STRC 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