FS KKR Capital Corp (FSK) SEC Filings & Earnings Calls

Non-accrual assets still represent 3.8% of portfolio at fair value; net realized/unrealized loss of $0.56 per share.

“investments on non-accrual status represented 3.8% and 7.1% of the total investment portfolio at fair value and amortized cost” · word for word

Net asset value declined from $18.83 to $18.30 per share during the quarter.

“Net asset value of $18.30 per share as of June 30, 2026, compared to $18.83 per share as of March 31, 2026” · word for word

Portfolio depreciation risk

“Total net realized and unrealized gain (loss) $(712) million for the six months ended June 30, 2026 compared to $(435) million for the six months ended June 30, 2025.”

Declining net asset value

“Net asset value per share of common stock at period end $18.30 as of June 30, 2026 compared to $20.89 as of December 31, 2025.”

Potential dilution from convertible preferred stock

“Convertible Preferred Stock can be converted into common stock, potentially diluting existing shareholders.”

Potential dilution from convertible preferred stock

“The Convertible Preferred Stock may be converted into the Issuer's Common Stock at the conversion price then in effect ... The initial conversion price is $18.83 per share.” · word for word

Potential dilution from convertible preferred stock

“The Convertible Preferred Stock may be converted into the Issuer's Common Stock at the conversion price then in effect ... The initial conversion price is $18.83 per share.” · word for word

Increased leverage with $900M in new unsecured notes; interest expense will increase.

“Issued $900M of 7.500% notes due 2031; interest payable semi-annually.”

Significant NAV decline of 9.9% QoQ; total net realized and unrealized loss of $2.00 per share.

“Total net realized and unrealized loss of $2.00 per share” · word for word

Leverage increased to 131% net debt to equity.

“Net debt to equity ratio as of March 31, 2026 was 131%, compared to 122%”

Credit Deterioration

“% of Investments on Non-Accrual (based on fair value) 4.2% (Mar 2026) vs 3.4% (Dec 2025)” · word for word

Portfolio Valuation Risk

“Net change in unrealized appreciation (depreciation) on investments $(377) million driven primarily by reduced valuations of certain portfolio companies” · word for word

Dividend Sustainability Risk

“Dividend per share reduced from $0.70 (Q1 2025) to $0.48 (Q1 2026); further reduced to $0.42 for next quarter”

Leverage Risk

“Asset coverage 172% (above 150% minimum but below 200% threshold)”

NAV Decline

“NAV per Share declined from $24.32 (Q1 2024) to $20.89 (Q4 2025), a 14.1% decrease.”

Stock Price Below NAV

“As of Q4 2025, the stock price low was $14.16, representing a 32.22% discount to NAV of $20.89.”

Dilution Risk from Below-NAV Offerings

“Proposal 2 seeks approval to sell shares below NAV, which would cause immediate dilution to existing stockholders.”

Conflict of Interest - Advisor Compensation

“The Board considered a possible source of conflict of interest due to the fact that the proceeds from the issuance of additional Shares may increase the management fees that the Company pays to the Advisor as such fees are partially based on the value of the Company's gross assets.” · word for word

Market Volatility and Capital Access

“monetary policies of the Federal Reserve and political uncertainty resulting from recent events, including changes to U.S. trade policies, the ongoing conflicts between Russia and Ukraine and in the Middle East and related responses, has led to, from time to time, disruption and instability in the global markets” · word for word

NAV decline and increased non-accruals signal credit quality deterioration.

“Net asset value declined 5% QoQ; non-accruals at fair value increased to 3.4% from 2.9%”

Leverage increase may amplify downside risk in a downturn.

“Net debt to equity ratio rose to 122% from 116%”

Credit Quality Deterioration

“% of Investments on Non-Accrual (based on fair value) 2.9% (Sep 2025) vs 2.2% (Dec 2024)” · word for word

Yield Compression

“Weighted Average Annual Yield on Accruing Debt Investments 10.6% (Sep 2025) vs 11.3% (Dec 2024)” · word for word

Market Value Decline

“total return based on market value was (23.25)% (9M 2025)” · word for word

Adjusted NII declined sequentially from $0.60 to $0.57 per share; portfolio yield slightly down.

“Adjusted net investment income $0.57 per share vs $0.60 prior quarter; yield on accruing debt 10.6% vs 10.8%.”

Non-accruals stable but still present; credit risk remains.

“Non-accruals at 2.9% fair value, 5.0% at amortized cost.”