Fourth Quarter 2025 Net Investment Income of $1.03 Per Share

Fourth Quarter 2025 Distributable Net Investment Income⁽¹⁾ of $1.09 Per Share

Net Asset Value of $33.33 Per Share

HOUSTON, Feb. 26, 2026 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the fourth quarter and full year ended December 31, 2025. Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our" and the "Company" refer to Main Street and its consolidated subsidiaries.

Fourth Quarter 2025 Highlights

• Net investment income ("NII") of $92.1 million, or $1.03 per share
• Distributable net investment income ("DNII")⁽¹⁾ of $98.0 million, or $1.09 per share
• DNII before taxes⁽²⁾ of $100.0 million, or $1.11 per share
• Total investment income of $145.5 million
• An industry leading position in cost efficiency, with a ratio of total non-interest operating expenses as a percentage of quarterly average total assets ("Operating Expenses to Assets Ratio") of 1.4% on an annualized basis
• Net increase in net assets resulting from operations of $131.1 million, or $1.46 per share
• Return on equity⁽³⁾ of 17.7% on an annualized basis
• Net asset value of $33.33 per share as of December 31, 2025, representing an increase of $0.55 per share, or 1.7%, compared to $32.78 per share as of September 30, 2025
• Declared regular monthly dividends totaling $0.78 per share for the first quarter of 2026, or $0.26 per share for each of January, February and March 2026, representing a 4.0% increase from the regular monthly dividends paid in the first quarter of 2025 and a 2.0% increase from the regular monthly dividends paid in the fourth quarter of 2025
• Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the fourth quarter of 2025 of $1.065 per share and representing a 2.9% increase from the total dividends paid in the fourth quarter of 2024
• Completed $300.0 million in total lower middle market ("LMM") portfolio investments, including investments totaling $241.0 million in five new portfolio companies, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase of $253.1 million in the total cost basis of the LMM investment portfolio
• Completed $231.4 million in total private loan portfolio investments, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to a realized loss resulted in a net increase of $108.8 million in the total cost basis of the private loan investment portfolio
• Fully exited investments in Purge Rite LLC, realizing a gain of $33.9 million and resulting in annual internal rates of return ("IRR") and times money invested ("TMI") returns of 179.9% and 9.4 times, respectively, on the equity investment, and 98.2% and 3.3 times, respectively, including all debt and equity investments in the company on a cumulative basis since Main Street's initial investment in 2023
• Fully exited investments in Mystic Logistics Holdings, LLC, realizing a gain of $23.8 million, which in addition to the total dividends of $22.1 million received over the life of the equity investment, resulted in annual IRRs and TMI returns of 32.9% and 17.9 times, respectively, on the equity investment, and 22.9% and 5.1 times, respectively, including all debt and equity investments in the company on a cumulative basis since Main Street's initial investment in 2014

Full Year 2025 Highlights

• NII, including excise tax and NII related income taxes, of $352.7 million, or $3.95 per share
• DNII,⁽¹⁾ including excise tax and NII related income taxes, of $376.0 million, or $4.21 per share
• DNII before taxes⁽²⁾ of $390.0 million, or $4.36 per share
• Total investment income of $566.4 million
• An industry leading position in cost efficiency, with an Operating Expenses to Assets Ratio of 1.3%
• Net increase in net assets resulting from operations of $493.4 million, or $5.52 per share
• Return on equity⁽³⁾ of 17.1%
• Net asset value of $33.33 per share as of December 31, 2025, representing an increase of $1.68 per share, or 5.3%, compared to $31.65 per share as of December 31, 2024
• Paid regular monthly dividends totaling $3.03 per share, representing a 4.1% increase from prior year
• Paid supplemental dividends totaling $1.20 per share, resulting in total dividends paid of $4.23 per share, representing a 2.9% increase from prior year and a new record for total annual dividends paid
• Completed $701.6 million in total LMM portfolio investments, including investments totaling $482.2 million in 13 new portfolio companies, which after aggregate repayments, return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase of $480.1 million in the total cost basis of the LMM investment portfolio
• Completed $671.5 million in total private loan portfolio investments, which after aggregate repayments and sales of debt investments, return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net increase of $30.8 million in the total cost basis of the private loan investment portfolio
• Net decrease of $76.4 million in the total cost basis of the middle market investment portfolio
• Further strengthened our capital structure and enhanced our liquidity position by (i) amending the SPV Facility to decrease the interest rate, extend the final maturity date to September 2030 and decrease the unused fee, (ii) amending the Corporate Facility to decrease the interest rate, increase the total commitments to $1.145 billion and extend the maturity date to April 2030, (iii) issuing an aggregate principal amount of $350.0 million of the August 2028 Notes and (iv) fully prepaying $150.0 million of notes outstanding in September 2025 ahead of their December 2025 maturity date (the "December 2025 Notes," with the SPV Facility, Corporate Facility and August 2028 Notes each defined in the Liquidity and Capital Resources section below)
• MSC Income Fund, Inc., an externally managed business development company for which Main Street's wholly owned registered investment adviser serves as investment advisor and administrator, completed a follow-on public offering of its common stock and, in conjunction with the offering, began trading on the New York Stock Exchange in January 2025

In commenting on the Company's operating results for the fourth quarter and full year of 2025, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are extremely pleased with our continued strong performance in the fourth quarter, which closed another great year for Main Street. This strong performance included several new quarterly and annual records across our key performance metrics. After our positive performance in the first three quarters of 2025, our strong performance in the fourth quarter resulted in a return on equity of 17.7% for the fourth quarter and 17.1% for the full year, strong levels of net investment income per share and distributable net investment income per share and a record net asset value per share, primarily driven by a significant net fair value increase of our investments, and including the benefits of material net realized gains in both our lower middle market and private loan investment portfolios. We also produced extremely strong fourth quarter investment activity in our unique lower middle market investment strategy, resulting in an annual record for gross investments of over $700 million in 2025. We believe that these continued strong results demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the continued underlying strength and quality of our portfolio companies."

Mr. Hyzak continued, "Our positive performance for the quarter and full year resulted in distributable net investment income before taxes per share which continued to significantly exceed the monthly dividends paid to our shareholders for these periods. In addition, our strong fourth quarter results and favorable outlook for the first quarter resulted in the declaration of another $0.30 per share supplemental dividend to be paid in March 2026, representing our eighteenth consecutive quarterly supplemental dividend, to go with the 11 increases to our regular monthly dividends declared since the fourth quarter of 2021. Our recent declarations of our monthly dividends and our supplemental dividend allowed us to continue our trend of increasing the total dividends paid to our shareholders over the past several years. Additionally, with the continued support from our long-term lender relationships, we continue to maintain strong liquidity and a conservative leverage profile, which we believe is important in the current economic environment. We remain confident that our diversified lower middle market and private loan investment strategies, both of which have continued to generate favorable investment activity in the first quarter, together with the benefits of our asset management business, our cost efficient operating structure and conservative capital structure, will allow us to continue to deliver superior results for our shareholders."

Fourth Quarter 2025 Operating Results

The following table provides a summary of our operating results for the fourth quarter of 2025:

The $5.1 million increase in total investment income in the fourth quarter of 2025 from the comparable period of the prior year was principally attributable to (i) an $11.4 million increase in dividend income, primarily due to a $10.9 million increase in dividend income from our LMM portfolio companies and (ii) a $0.9 million increase in fee income, primarily due to a $1.6 million increase in fee income related to increased investment activity, partially offset by a $0.7 million decrease in fee income from the refinancing and prepayment of debt investments. These increases were partially offset by a $7.2 million decrease in interest income, principally attributable to a larger negative impact from investments on non-accrual status and a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate debt investments and other decreases in interest rates on existing debt investments, partially offset by higher average levels of income producing investment portfolio debt investments. The $5.1 million increase in total investment income in the fourth quarter of 2025 includes the impact of an increase of $3.9 million in certain income considered less consistent or non-recurring, primarily related to an increase of $4.5 million in such dividend income, partially offset by a $0.7 million decrease in such fee income, in each case when compared to the same period in 2024.

Total cash expenses⁽⁵⁾ increased $0.4 million, or 0.9%, to $45.5 million in the fourth quarter of 2025 from $45.1 million for the same period in 2024. This increase in total cash expenses was principally attributable to (i) a $2.3 million increase in cash compensation expenses⁽⁵⁾ and (ii) a $0.6 million increase in general and administrative expenses, partially offset by (i) a $2.2 million decrease in interest expense and (ii) a $0.3 million increase in expenses allocated to our External Investment Manager (as defined in the External Investment Manager section below). The increase in cash compensation expenses⁽⁵⁾ is primarily related to increased incentive compensation accruals. The increase in general and administrative expenses is primarily related to increased professional fees. The decrease in interest expense is primarily related to (i) a decreased weighted-average interest rate on our unsecured debt obligations resulting from the issuance of the August 2028 Notes and the early repayment of the December 2025 Notes and (ii) a decreased weighted-average interest rate on our Credit Facilities due to decreases in benchmark index rates and decreases to the applicable margin rates related to the amendments of our Credit Facilities in April 2025.

Non-cash compensation expenses⁽⁵⁾ increased $0.9 million in the fourth quarter of 2025 from the comparable period of the prior year, primarily driven by an $0.8 million increase in share-based compensation.

Our Operating Expenses to Assets Ratio (which includes non-cash compensation expenses⁽⁵⁾) on an annualized basis was 1.4% for the fourth quarter of 2025, an increase from 1.3% for the fourth quarter of 2024.

Excise tax expense decreased $3.1 million and NII related federal and state income and other tax expenses increased $1.5 million in the fourth quarter of 2025 compared to the same period in 2024, resulting in a net decrease in tax expenses included in NII of $1.7 million. The decrease in excise tax is due to the decrease in undistributed taxable income as of December 31, 2025 and the increase in NII related federal and state income and other tax expenses is due to an increase in taxable NII between the relevant periods.

The $5.4 million increase in NII and the $6.4 million increase in DNII⁽¹⁾ in the fourth quarter of 2025 from the comparable period of the prior year were both principally attributable to (i) the increase in total investment income and (ii) the decrease in tax expenses included in NII, partially offset by an increase in total expenses, each as discussed above. NII and DNII⁽¹⁾ on a per share basis both increased by $0.05 for the fourth quarter of 2025 as compared to the fourth quarter of 2024, to $1.03 per share and $1.09 per share, respectively. These increases include the impact of a 1.6% increase in the weighted-average shares outstanding compared to the fourth quarter of 2024, primarily due to shares issued since the beginning of the comparable period of the prior year through our (i) dividend reinvestment plan, (ii) at-the-market ("ATM") equity issuance program and (iii) equity incentive plans. NII and DNII⁽¹⁾ on a per share basis in the fourth quarter of 2025 each include a net increase of $0.04 per share resulting from an increase in investment income considered less consistent or non-recurring in nature compared to the fourth quarter of 2024, as discussed above.

The $131.1 million net increase in net assets resulting from operations in the fourth quarter of 2025 represents a $43.1 million decrease from the fourth quarter of 2024. This decrease was primarily the result of (i) a $38.3 million decrease in the net fair value change of our portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the decrease resulting from a net fair value increase of $42.5 million in the fourth quarter of 2025 compared to a net fair value increase of $80.8 million in the prior year and (ii) a $10.2 million increase in net tax provision on the net fair value change of our portfolio investments resulting from a net tax provision of $3.5 million in the fourth quarter of 2025 compared to a net tax benefit of $6.8 million in the comparable period of the prior year, with these decreases partially offset by a $5.4 million increase in NII as discussed above. The $42.5 million net fair value increase in the fourth quarter of 2025 was the result of a net realized gain of $50.8 million, partially offset by unrealized depreciation (including the reversal of net fair value appreciation recognized in prior periods due to the net realized gain in the quarter) of $8.3 million. The $80.8 million net fair value increase in the fourth quarter of 2024 was the result of a net realized gain of $28.6 million and net unrealized appreciation of $52.2 million. The $50.8 million net realized gain from investments for the fourth quarter of 2025 was primarily the result of (i) $42.0 million of realized gains on the full exits of two private loan portfolio investments, (ii) a $23.8 million realized gain on the full exit of a LMM portfolio investment, (iii) a $1.4 million realized gain on the partial exit of a LMM portfolio investment and (iv) a $1.1 million realized gain on the partial exit of an other portfolio investment, partially offset by (i) a $17.8 million realized loss on the restructure of a private loan portfolio investment and (ii) a $0.6 million realized loss on the partial exit of a LMM portfolio investment.

The following table provides a summary of the total net unrealized depreciation of $8.3 million for the fourth quarter of 2025:

Liquidity and Capital Resources

As of December 31, 2025, we had aggregate liquidity of $1.265 billion, including (i) $42.0 million in cash and cash equivalents and (ii) $1.223 billion of aggregate unused capacity under our corporate revolving credit facility (the "Corporate Facility") and our special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), which we maintain to support our investment and operating activities.

Several details regarding our capital structure as of December 31, 2025 are as follows:

• The Corporate Facility included $1.145 billion in total commitments from a diversified group of 18 participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $1.718 billion.
• $432.0 million in outstanding borrowings under the Corporate Facility, with an interest rate of 5.6% based on the applicable Secured Overnight Financing Rate ("SOFR") effective for the contractual reset date of January 1, 2026.
• The SPV Facility included $600.0 million in total commitments from a diversified group of six participating lenders, plus an accordion feature that allows us to request an increase in the total commitments under the facility to up to $800.0 million.
• $86.0 million in outstanding borrowings under the SPV Facility, with an interest rate of 5.6% based on the applicable SOFR effective for the contractual reset date of January 1, 2026.
• $500.0 million of unsecured notes outstanding that bear interest at a rate of 3.00% per year (the "July 2026 Notes"). The July 2026 Notes mature on July 14, 2026 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $400.0 million of unsecured notes outstanding that bear interest at a rate of 6.50% per year with a yield-to-maturity of approximately 6.34% (the "June 2027 Notes"). The June 2027 Notes mature on June 4, 2027 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $350.0 million of unsecured notes outstanding that bear interest at a rate of 5.40% per year (the "August 2028 Notes"). The August 2028 Notes mature on August 15, 2028 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $350.0 million of unsecured notes outstanding that bear interest at a rate of 6.95% per year (the "March 2029 Notes"). The March 2029 Notes mature on March 1, 2029 and may be redeemed in whole or in part at any time at our option subject to certain make-whole provisions.
• $350.0 million of outstanding Small Business Investment Company ("SBIC") debentures through our wholly-owned SBIC subsidiaries. These debentures, which are guaranteed by the U.S. Small Business Administration (the "SBA"), had a weighted-average annual fixed interest rate of 3.26% and mature ten years from original issuance. The first maturity related to our existing SBIC debentures occurs in the first quarter of 2027, and the weighted-average remaining duration was 4.6 years.
• We maintain investment grade credit ratings from each of Fitch Ratings and S&P Global Ratings, both of which have assigned us investment grade credit ratings of BBB- with a stable outlook.
• Our net asset value totaled $3.0 billion, or $33.33 per share.

In February 2026, we expanded the total commitments under our Corporate Facility by $30.0 million to $1.175 billion. The increase in total commitments was the result of the addition of a new lender relationship, which further diversifies our lender group.

Investment Portfolio Information as of December 31, 2025⁽⁶⁾

The following table provides a summary of the investments in our LMM portfolio and private loan portfolio as of December 31, 2025:

The fair value of our LMM portfolio company equity investments was 199% of the related cost basis of such equity investments, and our LMM portfolio companies had a median net senior debt (senior interest-bearing debt through our debt position less cash and cash equivalents) to EBITDA ratio of 2.4 to 1.0 and a median total EBITDA to senior interest expense ratio of 3.0 to 1.0. Including all debt that is junior in priority to our debt position, these median ratios were 2.5 to 1.0 and 2.9 to 1.0, respectively.⁽⁶⁾⁽⁷⁾

As of December 31, 2025, our investment portfolio also included:

• Other portfolio investments in 33 entities, spread across 13 investment managers, collectively totaling $134.1 million in fair value and $141.6 million in cost basis, which comprised 2.4% and 3.0% of our investment portfolio at fair value and cost, respectively;
• Middle market portfolio investments in 11 portfolio companies, collectively totaling $83.5 million in fair value and $120.1 million in cost basis, which comprised 1.5% and 2.5% of our investment portfolio at fair value and cost, respectively; and
• Our investment in the External Investment Manager, with a fair value of $255.0 million and a cost basis of $29.5 million, which comprised 4.6% and 0.6% of our investment portfolio at fair value and cost, respectively.

As of December 31, 2025, investments on non-accrual status comprised 1.0% of the total investment portfolio at fair value and 3.3% at cost, and our total portfolio investments at fair value were 117% of the related cost basis.

External Investment Manager

MSC Adviser I, LLC is our wholly-owned portfolio company and registered investment adviser that provides investment management services to external parties (the "External Investment Manager"). We share employees with the External Investment Manager and allocate costs related to such shared employees and other operating expenses to the External Investment Manager. The total contribution of the External Investment Manager to our NII consists of the combination of the expenses we allocate to the External Investment Manager and the dividend income we earn from the External Investment Manager. During the fourth quarter of 2025, the External Investment Manager earned $10.2 million of total fee income, an increase of $0.5 million from the fourth quarter of 2024. The fee income earned by the External Investment Manager in the fourth quarter of 2025 included (i) $5.8 million of management fee income, a decrease of $0.3 million from the fourth quarter of 2024, and (ii) incentive fees of $4.2 million, an increase of $0.9 million from the fourth quarter of 2024. We allocated $6.6 million of total expenses to the External Investment Manager during the fourth quarter of 2025, an increase of $0.3 million from the fourth quarter of 2024. The decrease in management fee income was primarily attributable to a decrease in the base management fees earned resulting from changes in the advisory agreement between the External Investment Manager and its client, MSC Income Fund, Inc., in conjunction with the listing of MSC Income Fund, Inc.'s shares on the New York Stock Exchange in January 2025, partially offset by an increase in total assets managed for clients. The increase in incentive fees was attributable to the favorable performance and improved operating results from the assets managed for clients in the fourth quarter of 2025 relative to the fourth quarter of 2024. The combination of the dividend income we earned from the External Investment Manager and expenses we allocated to it resulted in a total contribution to our NII of $9.3 million, representing an increase of $0.5 million from the fourth quarter of 2024.

The External Investment Manager ended the fourth quarter of 2025 with total assets under management of $1.7 billion.

Fourth Quarter and Full Year 2025 Financial Results Conference Call / Webcast

Main Street has scheduled a conference call for Friday, February 27, 2026 at 10:00 a.m. Eastern time to discuss the fourth quarter and full year 2025 financial results.⁽⁸⁾

You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of the Main Street website at https://www.mainstcapital.com.

A telephonic replay of the conference call will be available through Friday, March 6, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13757959#. An audio archive of the conference call will also be available on the investor relations section of the Company's website at https://www.mainstcapital.com shortly after the call and will be accessible until the date of Main Street's earnings release for the next quarter.

For a more detailed discussion of the financial and other information included in this press release, please refer to the Main Street Annual Report on Form 10-K for the fiscal year ended December 31, 2025 to be filed with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov) and Main Street's Fourth Quarter 2025 Investor Presentation to be posted on the investor relations section of the Main Street website at https://www.mainstcapital.com.

ABOUT MAIN STREET CAPITAL CORPORATION

Main Street (www.mainstcapital.com) is a principal investment firm that primarily provides customized long-term debt and equity capital solutions to lower middle market companies and debt capital to private companies owned by or in the process of being acquired by a private equity fund. Main Street's portfolio investments are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. Main Street seeks to partner with entrepreneurs, business owners and management teams and generally provides customized "one-stop" debt and equity financing solutions within its lower middle market investment strategy. Main Street seeks to partner with private equity fund sponsors and primarily invests in secured debt investments in its private loan investment strategy. Main Street's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. Main Street's private loan portfolio companies generally have annual revenues between $25 million and $500 million.

Main Street, through its wholly-owned portfolio company MSC Adviser I, LLC ("MSC Adviser"), also maintains an asset management business through which it manages investments for external parties. MSC Adviser is registered as an investment adviser under the Investment Advisers Act of 1940, as amended.

FORWARD-LOOKING STATEMENTS

Main Street cautions that statements in this press release which are forward-looking and provide other than historical information, including but not limited to Main Street's ability to successfully source and execute on new portfolio investments and deliver future financial performance and results, are based on current conditions and information available to Main Street as of the date hereof and include statements regarding Main Street's goals, beliefs, strategies and future operating results and cash flows. Although its management believes that the expectations reflected in those forward-looking statements are reasonable, Main Street can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: Main Street's continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which Main Street's portfolio companies operate; the impacts of macroeconomic factors on Main Street and its portfolio companies' businesses and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact Main Street's operations or the operations of its portfolio companies; the operating and financial performance of Main Street's portfolio companies and their access to capital; retention of key investment personnel; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in Main Street's filings with the SEC (www.sec.gov). Main Street undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.

MAIN STREET CAPITAL CORPORATION
Endnotes

Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO, [email protected]
Ryan R. Nelson, CFO, [email protected]
713-350-6000

Dennard Lascar Investor Relations
Ken Dennard / [email protected]
Zach Vaughan / [email protected]
713-529-6600

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SOURCE Main Street Capital Corporation