MidCap Financial Board Approves $100M Buyback, Q4 EPS Hits $0.39
MidCap Financial Investment reported net investment income of $0.39 per share in Q4 and NAV per share declined 3.3% to $14.18 from $14.66. The board authorized a new $100 million stock repurchase plan and declared a quarterly dividend of $0.31 per share.
1. Q4 Financial Results
MidCap Financial Investment delivered net investment income of $0.39 per share for the quarter, up from $0.38 in Q3. NAV per share fell to $14.18 from $14.66, driven by valuation declines in older vintages, while new investment commitments reached $141 million, gross fundings totalled $156 million and net fundings amounted to $25 million.
2. Dividend and Share Repurchase Plan
The board declared a quarterly dividend of $0.31 per share payable on March 26 and approved a new $100 million stock repurchase authorization. During Q4, the company repurchased 1,091,753 shares at an average price of $11.81, investing $12.9 million and generating approximately $0.03 per share of NAV accretion.
3. Portfolio Composition and Leverage
Net leverage stood at 1.45x as of December 31, 2025, after Merx repaid a total of $29.5 million. Software exposure represented 11.4% of portfolio fair value, reflecting a strategy focused on businesses with resilient, entrenched customer relationships.