FIDUS INVESTMENT Corp (FDUS) SEC Filings & Earnings Calls

Geopolitical uncertainties and market volatility may impact investment activity.

“ongoing geopolitical uncertainties and market volatility weighed on activity levels during the quarter” · word for word

Interest and financing expenses increased due to higher borrowings and rates.

“$3.2 million increase in interest and financing expenses due to an increase in weighted average borrowings outstanding and weighted average interest rates” · word for word

Credit Risk from Non-Accrual Investments

“As of June 30, 2026 and December 31, 2025, we had debt investments in one portfolio company and two portfolio companies, respectively, on non-accrual status.” · word for word

Interest Rate Risk on Borrowings

“Interest and financing expenses $20.7 $14.6 $6.1 42.6%”

Concentration in Lower Middle-Market Companies

“We provide customized debt and equity financing solutions to lower middle-market companies, which we define as U.S. based companies having revenues between $10.0 million and $150.0 million.” · word for word

Interest expense increased due to higher borrowings and rates, pressuring net investment income growth.

“Interest and financing expenses increased by $3.0 million due to an increase in average borrowings outstanding and weighted average interest rates.”

Concentration in lower middle-market companies may increase credit risk during economic downturns.

“Portfolio of niche market leaders with strong defensive characteristics; but lower middle-market focus implies higher risk.”

Credit risk from non-accrual investments

“As of March 31, 2026 and December 31, 2025, we had debt investments in two portfolio companies on non-accrual status... Total $ 0.1 $ 11.2 $ 1.7 $ 27.1” · word for word

Realized loss on investment

“For the three months ended March 31, 2026, the total net realized gain/(loss) on investments, before income tax (provision)/benefit, was $(12.2) million.” · word for word

Interest rate sensitivity

“Interest rate volatility could adversely affect our results, particularly because we use leverage as part of our investment strategy.”

Economic downturn risk

“In the event that the U.S. economy enters into a protracted recession, it is possible that the results of certain U.S. middle market companies could experience deterioration.” · word for word

Tariff and trade policy uncertainty

“The uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies and its impact on our portfolio companies and our financial condition.” · word for word

Interest rate sensitivity: higher cost of debt due to refinancing of unsecured notes.

“increase in interest and financing expenses due to higher average debt balances outstanding and an increase in the cost of debt driven by the refinancing of our 4.75% January 2026 unsecured notes” · word for word

Credit risk: portfolio companies may face repayment challenges.

“focus on credit quality and capital preservation” · word for word

Interest Rate Risk

“The Federal Reserve has reduced its benchmark interest rate by 0.25% in each of September 2025, October 2025 and December 2025 and held interest rates steady in February 2026, bringing the benchmark rate to the 3.50% to 3.75% range.” · word for word

Tariff and Trade Policy Risk

“The uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policies and its impact on our portfolio companies and our financial condition.” · word for word

Economic Downturn Risk

“Economic recessions or downturns could impair our portfolio companies and harm our operating results.” · word for word

Leverage Risk

“Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital.” · word for word

Credit risk from non-accrual investments

“As of September 30, 2025 and December 31, 2024, we had debt investments in three and four portfolio companies on non-accrual status (dollars in millions), respectively.” · word for word

Interest rate risk on borrowings

“$4.0 million increase in interest and financing expenses due to an increase in the weighted average interest rate of our debt outstanding and an increase in weighted average borrowings outstanding during 2025 as compared to 2024.” · word for word

Declining net investment income and rising expenses may pressure future dividend coverage if trend continues.

“Net investment income down 18.9% YoY; expenses up 17.2%”

Lower fee income and dividend income from equity investments indicate potential portfolio yield compression.

“Fee income down 50.9%; dividend income down 28.5%”