Bain Capital Specialty Finance, Inc. Announces March 31, 2026 Financial Results and Declares Second Quarter 2026 Dividend of $0.42 per Share
BCSF
Published on 05/11/2026 at 05:07 pm EDT
Bain Capital Specialty Finance, Inc. (NYSE: BCSF, the “Company”, “our” or “we”) today announced financial results for the first quarter ended March 31, 2026, and that its Board of Directors (the “Board”) has declared a dividend of $0.42 per share for the second quarter of 2026.
"BCSF’s credit fundamentals remained sound across our portfolio with stable, low non-accruals and attractive net investment income that continued to cover our dividend,” said Michael Ewald, Chief Executive Officer of BCSF. “Despite market volatility and a challenging macroeconomic backdrop, we maintained a disciplined and selective approach to new investment activity, continuing to focus on structures that provide strong lender controls. Given Bain Capital’s longstanding presence and expertise in the core middle market, we believe BCSF remains well-positioned to navigate the current market environment through its predominantly first lien portfolio, broad diversification across industries, and durable balance sheet.”
Quarterly Highlights
Selected Financial Highlights
($ in millions, unless otherwise noted)
Q1 2026
Q4 2025
Net investment income per share
$
0.42
$
0.46
Net investment income
$
27.4
$
29.7
Earnings per share
$
0.05
$
0.43
Regular dividends per share declared and payable
$
0.42
$
0.42
Special dividends per share declared and payable
$
-
$
0.18
($ in millions, unless otherwise noted)
As of
March 31, 2026
As of
December 31, 2025
Total fair value of investments
$
2,470.8
$
2,508.4
Total assets
$
2,601.7
$
2,662.6
Total net assets
$
1,093.6
$
1,117.4
Net asset value per share
$
16.86
$
17.23
Portfolio and Investment Activity
For the three months ended March 31, 2026, the Company invested $243.2 million in 107 portfolio companies, including $123.6 million in 13 new companies, $110.6 million in 93 existing companies and $9.0 million in SLP. The Company had $255.4 million of principal repayments and sales in the quarter, resulting in net investment fundings of $(12.2) million.
Investment Activity for the Quarter Ended March 31, 2026:
($ in millions)
Q1 2026
Q4 2025
Investment Fundings
$
243.2
$
167.9
Sales and Repayments
$
255.4
$
193.2
Net Investment Activity
$
(12.2
)
$
(25.3
)
As of March 31, 2026, the Company’s investment portfolio had a fair value of $2,470.8 million, comprised of investments in 212 portfolio companies operating across 30 different industries.
Investment Portfolio at Fair Value as of March 31, 2026:
Investment Type
$ in Millions
% of Total
First Lien Senior Secured Loan
$
1,631.1
66.0
%
Second Lien Senior Secured Loan
30.1
1.2
Subordinated Debt
81.7
3.3
Preferred Equity
165.1
6.7
Equity Interest
167.3
6.8
Warrants
0.8
0.0
Investment Vehicles
394.7
16.0
Subordinated Note in ISLP
190.7
7.7
Equity Interest in ISLP
31.6
1.3
Subordinated Note in SLP
166.9
6.8
Preferred and Equity Interest in SLP
5.5
0.2
Total
$
2,470.8
100.0
%
As of March 31, 2026, the weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 10.8% and 10.9%, respectively, as of December 31, 2025(4)(5). 92.6% of the Company’s debt investments at fair value were in floating rate securities.
As of March 31, 2026, six portfolio companies were on non-accrual status, representing 1.4% and 0.6% of the total investment portfolio at amortized cost and fair value, respectively.
As of March 31, 2026, ISLP’s investment portfolio had an aggregate fair value of $711.9 million, comprised of investments in 40 portfolio companies operating across 17 different industries. The investment portfolio on a fair value basis was comprised of 94.0% first lien senior secured loans, 0.7% second lien senior secured loans and 5.3% equity interests. 100% of ISLP’s debt investments at fair value were in floating rate securities.
As of March 31, 2026, SLP’s investment portfolio had an aggregate fair value of $1,599.1 million, comprised of investments in 106 portfolio companies operating across 26 different industries. The investment portfolio on a fair value basis was comprised of 99.7% first lien senior secured loans and 0.3% second lien senior secured loans. 100.0% of SLP’s debt investments at fair value were in floating rate securities.
Results of Operations
For the three months ended March 31, 2026 and December 31, 2025, total investment income was $66.2 million and $68.2 million, respectively.
Total expenses (before taxes) for the three months ended March 31, 2026 and December 31, 2025 were $37.9 million and $37.7 million, respectively.
Net investment income for the three months ended March 31, 2026 and December 31, 2025 was $27.4 million or $0.42 per share and $29.7 million or $0.46 per share, respectively.
During the three months ended March 31, 2026, the Company had net realized and unrealized losses of $24.0 million.
Net increase in net assets resulting from operations for the three months ended March 31, 2026 was $3.4 million, or $0.05 per share.
Capital and Liquidity
As of March 31, 2026, the Company had total principal debt outstanding of $1,467.0 million, including $195.0 million outstanding in the Company’s Sumitomo Credit Facility, $272.0 million outstanding of the debt issued through BCC Middle Market CLO 2019-1 LLC, $300.0 million outstanding in the Company’s senior unsecured notes due October 2026, $350.0 million outstanding in the Company's senior unsecured notes due March 2030, and $350.0 million outstanding in the Company's senior unsecured notes due March 2031.
For the three months ended March 31, 2026, the weighted average interest rate on debt outstanding was 4.6%, as compared to 4.6% for the three months ended December 31, 2025.
As of March 31, 2026, the Company had cash and cash equivalents (including foreign cash) of $16.6 million, restricted cash and cash equivalents of $17.6 million, $34.6 million of unsettled trades, net of receivables and payables of investments, and $660.0 million of capacity under its Sumitomo Credit Facility. As of March 31, 2026, the Company had $442.6 million of undrawn investment commitments.
As of March 31, 2026, the Company’s debt-to-equity and net debt-to-equity ratios were 1.34x and 1.28x, respectively, as compared to 1.32x and 1.24x, respectively, as of December 31, 2025(3).
Endnotes
Net investment income yields and net income returns are calculated on average net assets, or book value, for the respective periods shown.
Net debt-to-equity represents principal debt outstanding less cash and cash equivalents and unsettled trades, net of receivables and payables of investments.
The second quarter dividend is payable on June 29, 2026 to stockholders of record as of June 15, 2026.
The weighted average yield is computed as (a) the annual stated interest rate or yield earned on the relevant accruing debt and other income producing securities plus amortization of fees and discounts on the performing debt and other income producing investments, divided by (b) the total relevant investments at amortized cost or fair value. The weighted average yield does not represent the total return to our stockholders.
For non-stated rate income producing investments, computed based on (a) the dividend or interest income earned for the respective trailing twelve months ended on the measurement date, divided by (b) the ending amortized cost or fair value, as applicable. In instances where historical dividend or interest income data is not available or not representative for the trailing twelve months ended, the dividend or interest income is annualized.
Conference Call Information
A conference call to discuss the Company’s financial results will be held live at 8:30 a.m. Eastern Time on May 12, 2026. Please visit BCSF’s webcast link located on the Events & Presentations page of the Investor Resources section of BCSF’s website at http://www.baincapitalspecialtyfinance.com for a slide presentation that complements the Earnings Conference Call.
All participants will need to reference “Bain Capital Specialty Finance - First Quarter Ended March 31, 2026 Earnings Conference Call” once connected with the operator. All participants are asked to dial in 10-15 minutes prior to the call.
Replay Information:
An archived replay will be available approximately three hours after the conference call concludes through May 26, 2026 via a webcast link located on the Investor Resources section of BCSF’s website, and via the dial-in numbers listed below:
Bain Capital Specialty Finance, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
As of
As of
March 31, 2026
December 31, 2025
(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliate investments (amortized cost of $1,925,871 and $1,891,513, respectively)
$
1,916,461
$
1,905,297
Non-controlled/affiliate investments (amortized cost of $7,504 and $7,504, respectively)
19,164
18,674
Controlled affiliate investments (amortized cost of $549,483 and $603,650, respectively)
535,173
584,470
Cash and cash equivalents
12,973
23,092
Foreign cash (cost of $3,026 and $2,477, respectively)
3,622
3,151
Restricted cash and cash equivalents
17,593
32,667
Collateral on derivatives
9,813
10,993
Deferred financing costs
3,285
3,543
Interest receivable on investments
35,091
38,023
Interest rate swap
4,979
7,976
Receivable for sales and paydowns of investments
38,101
28,856
Prepaid insurance
277
489
Unrealized appreciation on forward currency exchange contracts
224
—
Dividend receivable
4,920
5,354
Total Assets
$
2,601,676
$
2,662,585
Liabilities
Debt (net of unamortized debt issuance costs of $17,144 and $10,110, respectively)
$
1,454,657
$
1,470,796
Interest payable
10,910
12,376
Payable for investments purchased
3,527
2,110
Collateral payable on derivatives
4,760
12,907
Unrealized depreciation on forward currency exchange contracts
2,739
9,061
Base management fee payable
9,085
9,408
Incentive fee payable
5,618
5,877
Accounts payable and accrued expenses
16,825
12,910
Distributions payable
—
9,730
Total Liabilities
1,508,121
1,545,175
Commitments and Contingencies (See Note 10)
Net Assets
Common stock, par value $0.001 per share, 100,000,000,000 and 100,000,000,000 shares authorized, 64,868,507 and 64,868,507 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively
65
65
Paid in capital in excess of par value
1,161,110
1,161,110
Total distributable loss
(67,620
)
(43,765
)
Total Net Assets
1,093,555
1,117,410
Total Liabilities and Total Net Assets
$
2,601,676
$
2,662,585
Net asset value per share
$
16.86
$
17.23
See Notes to Consolidated Financial Statements
Consolidated Statements of Operations
(in thousands, except share and per share data)
(Unaudited)
For the Three Months Ended March 31,
2026
2025
Income
Investment income from non-controlled/non-affiliate investments:
Interest from investments
$
39,333
$
41,672
Dividend income
619
1,725
PIK income
8,705
6,606
Other income
1,476
2,833
Total investment income from non-controlled/non-affiliate investments
50,133
52,836
Investment income from non-controlled/affiliate investments:
Interest from investments
2
8
PIK income
—
17
Other income
21
42
Total investment income from non-controlled/affiliate investments
23
67
Investment income from controlled affiliate investments:
Interest from investments
10,033
9,148
Dividend income
5,983
4,786
PIK income
2
2
Total investment income from controlled affiliate investments
16,018
13,936
Total investment income
66,174
66,839
Expenses
Interest and debt financing expenses
20,252
18,904
Base management fee
9,085
9,068
Incentive fee
5,618
2,222
Professional fees
700
714
Directors fees
180
174
Other general and administrative expenses
2,069
2,571
Total expenses, net of fee waivers
37,904
33,653
Net investment income before taxes
28,270
33,186
Income tax expense, including excise tax
906
1,076
Net investment income
27,364
32,110
Net realized and unrealized gains (losses)
Net realized gain (loss) on non-controlled/non-affiliate investments
3,820
(20,986
)
Net realized loss on non-controlled/affiliate investments
—
(2,967
)
Net realized loss on controlled affiliate investments
(13,448
)
—
Net realized gain (loss) on foreign currency transactions
66
(249
)
Net realized loss on forward currency exchange contracts
(2,989
)
(2,405
)
Net change in unrealized appreciation on foreign currency translation
(135
)
435
Net change in unrealized appreciation on forward currency exchange contracts
6,546
(2,073
)
Net change in unrealized appreciation on non-controlled/non-affiliate investments
(23,194
)
23,993
Net change in unrealized appreciation on non-controlled/affiliate investments
490
(1,866
)
Net change in unrealized appreciation on controlled affiliate investments
4,870
2,555
Total net loss
(23,974
)
(3,563
)
Net increase in net assets resulting from operations
$
3,390
$
28,547
Basic and diluted net investment income per share of common stock
$
0.42
$
0.50
Basic and diluted increase in net assets resulting from operations per share of common stock
$
0.05
$
0.44
Basic and diluted weighted average common stock outstanding
64,868,507
64,676,192
See Notes to Consolidated Financial Statements
About Bain Capital Specialty Finance, Inc.
Bain Capital Specialty Finance, Inc. is an externally managed specialty finance company focused on lending to middle market companies. BCSF is managed by BCSF Advisors, LP, an SEC-registered investment adviser and a subsidiary of Bain Capital Credit, LP. Since commencing investment operations on October 13, 2016, and through March 31, 2026, BCSF has invested approximately $9,975.9 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. BCSF’s investment objective is to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. BCSF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.
Forward-Looking Statements
This letter may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this letter may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this letter.
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