FS KKR Capital Corp. reported its fourth‑quarter 2025 results, showing an adjusted net investment income of $0.52 per share, below the consensus of $0.54–$0.55, and revenue of $348 million, short of the $361.27–$363.04 million forecast. The miss followed a strong Q4 2024 performance where EPS was $0.66 and revenue was $407 million.
The company cited “specific challenges associated with a few investments” that weighed on the quarter’s performance. Those portfolio issues reduced net investment income and contributed to the revenue shortfall, while the firm’s focus on stabilizing those assets is expected to support future earnings.
Management guided for Q1 2026 revenue of about $351.9 million and EPS of $0.540855, a slight decline from the prior guidance, reflecting a cautious outlook amid the portfolio headwinds. Full‑year 2026 revenue guidance remains around $1.38 billion, unchanged from earlier estimates.
The board declared a quarterly distribution of $0.48 per share, comprising a $0.45 base and a $0.03 supplemental payment, payable on or about April 2 2026, with a record date of March 18 2026. The dividend is a significant cut from the $0.70 per share paid in the previous quarter, underscoring the company’s need to preserve capital while addressing investment challenges.
The market reaction was negative, with investors expressing concern over the earnings miss and the reduced dividend.
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