The dividend cut and NAV erosion signal fundamental credit stress in the portfolio. Monitor the Q2 2026 earnings call for updates on non-accruals and portfolio company health. The fee reduction is a positive structural change but does not offset the income decline.
Price Chart
Executive Summary
Crescent Capital BDC reported Q1 2026 NII of $0.42/share, down 6.7% YoY from $0.45, and a net loss of ($0.42)/share driven by $31M in net realized/unrealized losses. Investment income fell 10% YoY to $37.9M, NAV per share declined 6.9% QoQ to $18.27, and the base dividend was cut 19% to $0.34/share. The company announced a post-quarter fee reduction (management fee from 1.25% to 1.00%, incentive fee from 17.5% to 15.0%) to support earnings durability. The combination of declining income, NAV erosion, and a dividend cut is clearly bearish.
Key Financial Metrics
Key Facts
- Q1 2026 NII of $0.42/share vs $0.45 in Q1 2025 (down 6.7% YoY)
- Net loss of ($0.42)/share from operations vs net income of $0.11 in Q1 2025
- Investment income fell to $37.9M from $42.1M YoY (down 10%)
- NAV per share dropped to $18.27 from $19.10 QoQ (down 4.3%) and from $19.62 YoY (down 6.9%)
- Base dividend cut 19% to $0.34/share from $0.42/share; special dividends of $0.09/share announced
- Post-quarter fee reduction: management fee lowered from 1.25% to 1.00%, incentive fee from 17.5% to 15.0%
- Net realized and unrealized losses of $31.0M in the quarter
- Debt-to-equity ratio increased to 1.32x from 1.25x QoQ
- Weighted average yield on income-producing securities declined to 9.8% from 10.0% QoQ
Financial Impact
NII per share down 6.7% YoY; NAV down 6.9% YoY; base dividend cut 19%
Risk Factors
- Further NAV erosion if credit losses continue
- Additional dividend cuts if NII continues to decline
- Portfolio company defaults in a higher-for-longer rate environment
- Leverage increase (1.32x) limits financial flexibility
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-221986 |
| Document: ccap-20260513.htm | 0001193125-26-221986 |
| Document: 0001193125-26-221986-index-headers.html | 0001193125-26-221986 |
| Document: 0001193125-26-221986-index.html | 0001193125-26-221986 |
| Document: 0001193125-26-221986.txt | 0001193125-26-221986 |
| 8-K Data (Synthetic) | 0001193125-26-221986 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
May 26, 2026 21w ago | 25-NSE | $25.17 | awaiting T+5 | — | — |
May 13, 2026 23w ago | 8-K | $25.14 $25.17 | ▼ −0.12% | ▼ −0.84% | — |
Apr 1, 2026 29w ago | DEFA14A | $25.00 $25.00 | · 0.00% | ▼ −3.62% | — |
US Market Status
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