TCPC Earnings Miss Estimates
BlackRock Tcp Capital (NASDAQ:TCPC), a business development company specializing in loans to middle-market companies, released its second quarter 2025 results on August 7, 2025. The most notable news from the release was that GAAP net investment income per share (EPS) was $0.32 for Q2 2025. However, Adjusted net investment income (non-GAAP) and GAAP total revenue for Q2 2025 both fell below analyst estimates. GAAP revenue was $51.5 million versus the $54.5 million consensus for Q2 2025. Key financial metrics declined compared to the prior year (Q2 2024), with adjusted net investment income (non-GAAP) down from $0.36 per share in Q1 2025, and GAAP revenue down from $71.5 million in Q2 2024. While the quarter reflected ongoing portfolio stress and lower net asset value, the company showed progress by reducing non-accruals in its loan book, with non-accruals declining to 3.7% of the portfolio at fair value in Q2 2025 from 4.4% in Q1 2025. Overall, the quarter presented a mix of challenges and positive developments as portfolio repositioning continued.
Source: Analyst estimates for the quarter provided by FactSet.
BlackRock Tcp Capital is a lender to performing middle-market companies, leaning heavily on senior secured loans for principal protection. Its business model emphasizes generating returns through interest from loans, origination fees, and occasional equity investments. The vast majority of its $1.8 billion portfolio as of June 30, 2025, is invested in senior secured debt (89.4%), with 82.4% of the total portfolio was first lien in Q2 2025. This focus targets companies with enterprise values between $100 million and $1.5 billion.
Source Fool.com
