Bain Capital Specialty Finance, Inc. (BCSF) SEC Filings & Earnings Calls

Credit quality deterioration

“As of June 30, 2026, there were twenty-one loans from four issuers on non-accrual. As of December 31, 2025, there were twelve loans from six issuers on non-accrual.” · word for word

Investment losses

“Net realized gain (loss) on non-controlled/non-affiliate investments $(7,228) (three months ended June 30, 2026) vs $4,861 (three months ended June 30, 2025)” · word for word

Non-accrual investments increased to 3.2% at amortized cost from 1.4% in prior quarter, indicating credit quality deterioration.

“Investments on non-accrual represented 3.2% and 2.2% of the total investment portfolio at amortized cost and fair value, respectively, as of June 30, 2026, compared to 1.4% and 0.6% as of March 31, 2026.”

Weighted average interest rate on debt increased to 5.0% from 4.6%, raising funding costs.

“weighted average interest rate on debt outstanding was 5.0%, as compared to 4.6% for the three months ended March 31, 2026.” · word for word

Net realized and unrealized losses of $24.0M in Q1 2026, driving net income down to $0.05/share.

“Net realized and unrealized losses of $24.0 million during Q1 2026.”

NAV per share declined from $17.23 to $16.86, reflecting market volatility and losses.

“Net asset value per share $16.86 vs $17.23 as of December 31, 2025.”

Net investment fundings negative at $(12.2)M, indicating repayments outpacing new investments.

“Net investment fundings $(12.2) million for Q1 2026.”

Net realized and unrealized losses

“Total net loss $(23,974) $(3,563)”

Declining NAV per share

“Net asset value per share $16.86 $17.23”

Portfolio yield declined slightly from 11.1% to 10.8% QoQ, indicating potential spread compression.

“Weighted average yield on the investment portfolio at amortized cost and fair value were 10.8% and 10.9%, respectively, as compared to 11.1% and 11.2%, respectively, as of September 30, 2025.” · word for word

Non-accruals stable but present at 1.5% of portfolio at cost.

“Investments on non-accrual were relatively unchanged quarter-over-quarter and represented 1.5% and 0.8% of the total investment portfolio at amortized cost and fair value.” · word for word

Leverage risk

“Our strategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and may increase the risk of investing in us.” · word for word

Credit risk from portfolio companies

“Our portfolio companies may default or may need to restructure their obligations to us.” · word for word

Valuation uncertainty

“The majority of our portfolio investments are recorded at fair value and, as a result, there may be uncertainty as to the value of our portfolio investments.” · word for word

Interest rate risk

“Inflation and actions by central banks or monetary authorities, including the U.S. Federal Reserve, to address inflation may adversely affect the business, results of operations and financial condition of our portfolio companies.” · word for word

Key person dependency

“We are dependent upon key personnel of Bain Capital Credit and our Advisor.” · word for word

Non-accrual loans increased

“As of September 30, 2025, there were twelve loans from six issuers on non-accrual. As of December 31, 2024, there were eight loans from five issuers on non-accrual.”

Net realized losses on investments

“Net realized gain (loss) on non-controlled/non-affiliate investments $(14,780) for the nine months ended September 30, 2025.” · word for word

Foreign currency exposure

“Unrealized depreciation on forward currency exchange contracts $10,619 as of September 30, 2025.” · word for word

Net asset value per share declined from $17.56 to $17.40 QoQ.

“NAV per share $17.40 vs $17.56.”

Non-accrual investments at 1.5% of cost; credit risk remains.

“Non-accrual 1.5% at amortized cost.”