FS KKR Capital Corp (FSK) Earnings History

FS KKR Capital Corp - Q4 FY2025 Earnings

Filed at: Feb 25, 2026, 4:32 PM EST|Read from source

EXECUTIVE SUMMARY

FS KKR Capital Corp. reported a challenging year in 2025, marked by a net loss and a decrease in net investment income, primarily due to issues with specific investments impacting results in the second and fourth quarters. The company is focusing on stabilizing these investments and prioritizing new originations in first lien senior secured structures for 2026.

POSITIVE HIGHLIGHTS

  • •

    Total investment income was $1,519 million for the year ended December 31, 2025, a decrease from $1,721 million in the prior year.

    neutral
  • •

    The company declared a first quarter 2026 distribution of $0.48 per share, consisting of a base distribution of $0.45 and a supplemental distribution of $0.03.

    neutral
  • •

    Exposure to the top ten largest portfolio companies decreased to 19% from 20% as of September 30, 2025, indicating some diversification.

    neutral

CONCERNS & RISKS

  • •

    Net investment income decreased to $654 million for the year ended December 31, 2025, down from $813 million in the prior year.

    negative
  • •

    Net increase (decrease) in net assets resulting from operations was $11 million for the year ended December 31, 2025, a significant drop from $585 million in the prior year.

    negative
  • •

    Earnings per share (EPS) for the year ended December 31, 2025, was $0.04, a sharp decline from $2.09 in the prior year.

    negative
  • •

    Net asset value per share decreased to $20.89 as of December 31, 2025, from $23.64 as of December 31, 2024.

    negative
  • •

    Investments on non-accrual status increased to 3.4% of the total investment portfolio at fair value, up from 2.9% as of September 30, 2025.

    attention
  • •

    Net debt to equity ratio increased to 122% as of December 31, 2025, from 116% as of September 30, 2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$1.52B
-11.7%
Prior year: $1.72B
Annual (YTD)
$1.52K
N/A
Prior year: $1.72K
Net Income
Quarterly
$11.00
-98.1%
Prior year: $585.00
Annual (YTD)
$11.00
N/A
Prior year: $585.00
EPS (Diluted)
Quarterly
$0.04
-98.1%
Prior year: $2.09
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Net Margin
Current Quarter
0.0%
Prior Year
0.3%
YoY Change
-3330 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT COMMENTARY

Acknowledged specific challenges with a few investments impacting results in Q2 and Q4.

— FS KKR Capital Corp, Q4 FY2025 2025 Earnings Call

Focusing on stabilizing these investments in 2026.

— FS KKR Capital Corp, Q4 FY2025 2025 Earnings Call

Prioritizing high-quality new originations, primarily in first lien senior secured structures.

— FS KKR Capital Corp, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Investments on Non-Accrual Status
3.4
+17.2% YoY
Prior year: 2.9
%
Net Debt to Equity Ratio
122
+5.2% YoY
Prior year: 116
%
Weighted Average Annual Yield on Accruing Debt Investments
10.1
-4.7% YoY
Prior year: 10.6
%
Weighted Average Annual Yield on All Debt Investments
9.3
-5.1% YoY
Prior year: 9.8
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.