CION Investment Corporation Reports First Quarter 2026 Financial Results
CION
Published on 05/07/2026 at 08:05 am EDT
CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the first quarter ended March 31, 2026 and filed its Form 10-Q with the U.S. Securities and Exchange Commission (the "SEC").
CION also announced that, on May 4, 2026 its co-chief executive officers declared base distributions of $0.10 per share for each of July, August and September 2026, which will be payable to shareholders on July 31, August 28, and September 25, 2026, respectively, to shareholders of record as of July 17, August 14, and September 11, 2026, respectively.
FIRST QUARTER AND OTHER HIGHLIGHTS
DISTRIBUTIONS
Mark Gatto, co-Chief Executive Officer of CION, commented:
“We believe that our core first lien portfolio, which represents approximately 81% of our investments, continues to perform well — weighted average interest coverage and weighted average leverage remained relatively steady from the prior quarter. We also believe that our intentionally low software exposure of 1.8% reflects the defensive construction of our book. While first quarter NAV was impacted by unrealized mark-to-market adjustments, we remain confident in the durability of our first lien focused strategy continuing into 2026.”
SELECTED FINANCIAL HIGHLIGHTS
As of
(in thousands, except per share data and ratios)
March 31, 2026
December 31, 2025
Investment portfolio, at fair value1
$
1,702,420
$
1,696,980
Total debt outstanding2
$
1,174,844
$
1,139,844
Net assets
$
659,636
$
707,628
Net asset value per share
$
13.11
$
13.76
Debt-to-equity
1.78x
1.61x
Net debt-to-equity
1.62x
1.44x
Three Months Ended
(in thousands, except share and per share data)
March 31, 2026
December 31, 2025
Total investment income
$
49,537
$
53,792
Total operating expenses and income tax expense
$
36,673
$
35,493
Net investment income after taxes
$
12,864
$
18,299
Net realized gains
$
237
$
118
Net unrealized losses
$
(36,132
)
$
(59,537
)
Net decrease in net assets resulting from operations
$
(23,031
)
$
(41,120
)
Net investment income per share
$
0.25
$
0.35
Net realized and unrealized losses per share
$
(0.70
)
$
(1.15
)
Earnings per share
$
(0.45
)
$
(0.80
)
Weighted average shares outstanding
50,803,697
51,616,723
Distributions declared per share
$
0.30
$
0.36
Total investment income for the three months ended March 31, 2026 and December 31, 2025 was $49.5 million and $53.8 million, respectively. The decrease in total investment income was primarily driven by lower transaction fees recorded during the first quarter due to lower repayment and investment activity and lower dividend income earned on the Company's investments during the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025.
Operating expenses for the three months ended March 31, 2026 and December 31, 2025 were $36.7 million and $35.5 million, respectively. The increase in operating expenses was primarily attributable to higher interest expense, which resulted from both an increase in the Company's average debt outstanding and a higher weighted average cost of debt capital during the quarter. These changes were primarily driven by the refinancing of lower-yielding fixed rate notes and the repayment of a portion of lower-yielding senior secured debt using proceeds from newly issued, higher-yielding fixed rate notes. The increase in operating expenses was partially offset by lower advisory fees earned by our advisor during the quarter due to lower investment income earned on our investments.
PORTFOLIO AND INVESTMENT ACTIVITY1
A summary of the Company's investment activity for the three months ended March 31, 2026 is as follows:
New Investment Commitments
Sales and Repayments
Investment Type (in thousands)
$
%
$
%
Senior secured first lien debt
$
63,953
93
%
$
(34,436
)
92
%
Equity
4,787
7
%
(3,000
)
8
%
Total
$
68,740
100
%
$
(37,436
)
100
%
During the three months ended March 31, 2026, new investment commitments were made across 2 new and 9 existing portfolio companies. During the same period, the Company received full repayment of investments in 2 portfolio companies. As a result, the number of portfolio companies remained at 89 as of March 31, 2026.
PORTFOLIO SUMMARY1
As of March 31, 2026, the Company’s investments consisted of the following:
Investments at Fair Value
Investment Type (in thousands)
$
%
Senior secured first lien debt
$
1,375,487
80.8
%
Senior secured second lien debt
—
—
Collateralized securities and structured products - equity
5,033
0.3
%
Unsecured debt
6,786
0.4
%
Equity
315,114
18.5
%
Total
$
1,702,420
100.0
%
The following table presents certain selected information regarding the Company’s investments:
As of
March 31, 2026
December 31, 2025
Number of portfolio companies
89
89
Percentage of performing loans bearing a floating rate3
88.6 %
88.7 %
Percentage of performing loans bearing a fixed rate3
11.4 %
11.3 %
Yield on debt and other income producing investments at amortized cost4
10.43 %
10.72 %
Yield on performing loans at amortized cost4
11.24 %
11.29 %
Yield on total investments at amortized cost
8.92 %
9.15 %
Weighted average leverage (net debt/EBITDA)5
4.62x
4.70x
Weighted average interest coverage5
2.08x
2.26x
Median EBITDA6
$34.6 million
$35.9 million
As of March 31, 2026, investments on non-accrual status represented 1.53% and 5.35% of the total investment portfolio at fair value and amortized cost, respectively. As of December 31, 2025, investments on non-accrual status represented 1.78% and 4.32% of the total investment portfolio at fair value and amortized cost, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2026, the Company had $1.17 billion of total principal amount of debt outstanding, comprised of $300 million of outstanding borrowings under its senior secured credit facilities and $875 million of unsecured notes and term loans. The combined weighted average interest rate on debt outstanding was 7.5% for the quarter ended March 31, 2026. As of March 31, 2026, the Company had $106 million in cash and short-term investments and $100 million available under its financing arrangements.2
EARNINGS CONFERENCE CALL
CION will host an earnings conference call on Thursday, May 7, 2026 at 11:00 am Eastern Time to discuss its financial results for the first quarter ended March 31, 2026. Please visit the Investor Resources - Earnings Presentation section of the Company’s website at www.cionbdc.com for a slide presentation that complements the earnings conference call.
All interested parties are invited to participate via telephone or listen via the live webcast, which can be accessed by clicking the following link: CION Investment Corporation First Quarter Conference Call. Domestic callers can access the conference call by dialing (877) 484-6065. International callers can access the conference call by dialing +1 (201) 689-8846. All callers are asked to dial in approximately 10 minutes prior to the call. An archived replay will be available on a webcast link located in the Investor Resources - Earnings Call section of CION’s website.
ENDNOTES
CĪON Investment Corporation
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
March 31, 2026
December 31, 2025
(unaudited)
Assets
Investments, at fair value:
Non-controlled, non-affiliated investments (amortized cost of $1,247,546 and $1,238,358, respectively)
$
1,147,711
$
1,158,985
Non-controlled, affiliated investments (amortized cost of $369,689 and $360,895, respectively)
372,821
364,335
Controlled investments (amortized cost of $347,478 and $342,843, respectively)
278,942
289,670
Total investments, at fair value (amortized cost of $1,964,713 and $1,942,096 respectively)
1,799,474
1,812,990
Cash
9,248
8,159
Interest receivable on investments
33,062
27,979
Receivable due on investments sold and repaid
227
3,699
Prepaid expenses and other assets
1,950
1,973
Total assets
$
1,843,961
$
1,854,800
Liabilities and Shareholders' Equity
Liabilities
Financing arrangements (net of unamortized debt issuance costs of $16,661 and $14,263, respectively)
$
1,158,183
$
1,125,580
Payable for investments purchased
6,636
2,529
Accounts payable and accrued expenses
813
785
Interest payable
8,489
5,764
Accrued management fees
6,104
6,423
Accrued subordinated incentive fee on income
2,728
3,882
Accrued administrative services expense
1,372
2,182
Share repurchases payable
—
27
Total liabilities
1,184,325
1,147,172
Shareholders' Equity
Common stock, $0.001 par value; 500,000,000 shares authorized; 50,301,813 and
51,420,629 shares issued, and 50,301,813 and 51,417,866 shares outstanding, respectively
50
51
Capital in excess of par value
994,778
1,004,496
Accumulated distributable losses
(335,192
)
(296,919
)
Total shareholders' equity
659,636
707,628
Total liabilities and shareholders' equity
$
1,843,961
$
1,854,800
Net asset value per share of common stock at end of period
$
13.11
$
13.76
CĪON Investment Corporation
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
Three Months Ended
March 31, 2026
December 31, 2025
(unaudited)
(unaudited)
Investment income
Non-controlled, non-affiliated investments
Interest income
$
23,686
$
26,919
Paid-in-kind interest income
5,488
4,525
Fee income
2,874
4,159
Dividend income
453
407
Non-controlled, affiliated investments
Interest income
2,060
3,225
Paid-in-kind interest income
4,986
3,018
Fee income
—
275
Dividend income
3,345
4,645
Controlled investments
Interest income
6,378
2,920
Paid-in-kind interest income
267
3,385
Fee income
—
314
Total investment income
49,537
53,792
Operating expenses
Management fees
6,105
6,422
Administrative services expense
1,376
1,480
Subordinated incentive fee on income
2,728
3,882
General and administrative
1,962
1,456
Interest expense
24,413
22,253
Total operating expenses
36,584
35,493
Net investment income before taxes
12,953
18,299
Income tax expense, including excise tax
89
—
Net investment income after taxes
12,864
18,299
Realized and unrealized gains (losses)
Net realized gains on:
Non-controlled, non-affiliated investments
78
118
Non-controlled, affiliated investments
159
—
Net realized gains
237
118
Net change in unrealized (depreciation) appreciation on:
Non-controlled, non-affiliated investments
(25,511
)
(13,489
)
Non-controlled, affiliated investments
4,740
(17,202
)
Controlled investments
(15,361
)
(28,846
)
Net change in unrealized depreciation
(36,132
)
(59,537
)
Net realized and unrealized losses
(35,895
)
(59,419
)
Net decrease in net assets resulting from operations
$
(23,031
)
$
(41,120
)
Per share information—basic and diluted
Net decrease in net assets per share resulting from operations
$
(0.45
)
$
(0.80
)
Net investment income per share
$
0.25
$
0.35
Weighted average shares of common stock outstanding
50,803,697
51,616,723
ABOUT CION INVESTMENT CORPORATION
CION Investment Corporation is a leading publicly listed business development company that had approximately $1.8 billion in total assets as of March 31, 2026. CION seeks to generate current income and, to a lesser extent, capital appreciation for investors by focusing primarily on senior secured loans to U.S. middle-market companies. CION is advised by CION Investment Management, LLC, a registered investment adviser and an affiliate of CION. For more information, please visit www.cionbdc.com.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss CION’s plans, strategies, prospects and expectations concerning its business, operating results, financial condition and other similar matters. These statements represent CION’s belief regarding future events that, by their nature, are uncertain and outside of CION’s control. There are likely to be events in the future, however, that CION is not able to predict accurately or control. Any forward-looking statement made by CION in this press release speaks only as of the date on which it is made. Factors or events that could cause CION’s actual results to differ, possibly materially from its expectations, include, but are not limited to, the risks, uncertainties and other factors CION identifies in the sections entitled “Risk Factors” and “Forward-Looking Statements” in filings CION makes with the SEC, and it is not possible for CION to predict or identify all of them. CION undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
OTHER INFORMATION
The information in this press release is summary information only and should be read in conjunction with CION’s Quarterly Report on Form 10-Q, which CION filed with the SEC on May 7, 2026, as well as CION’s other reports filed with the SEC. A copy of CION’s Quarterly Report on Form 10-Q and CION’s other reports filed with the SEC can be found on CION’s website at www.cionbdc.com and the SEC’s website at www.sec.gov.
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