Eagle Point Income Q3 2026 Earnings Results & Report

Eagle Point Income EPS Results

• Actual EPS: $0.73
• Consensus EPS: $0.3133
• Beat/Miss: Beat by +$0.4167
• One Year Ago EPS: N/A
• EPS Beat Rate: 4 of last 7 quarters

Eagle Point Income Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $10.76 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Eagle Point Income (NYSE:EIC) Company, Inc. (NYSE: EIC) is a closed-end management investment company focused primarily on generating current income and, to a lesser extent, capital appreciation. The company invests mainly in collateralized loan obligations (CLOs), which are securities backed by portfolios of senior secured loans made to corporate borrowers.

EIC typically invests across different levels of the CLO capital structure, including debt tranches and equity interests. Its portfolio may also include other investments related to corporate credit and structured finance. Through these investments, the company seeks exposure to income-producing assets while managing risk through diversification across borrowers, industries, managers and CLO transactions.

Eagle Point Income is externally managed by Eagle Point Income Management LLC, an affiliate of Eagle Point Credit Management LLC. The company’s investments generally provide exposure to the U.S. corporate loan market, although the activities of individual CLOs and their underlying borrowers may extend across multiple industries and geographies.

Eagle Point Income Q3 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Net investment income less realized losses was $0.67 per share, more than double quarterly distributions of $0.33. A $0.30-per-share gain from an early investment repayment boosted results; excluding it, normalized earnings were still $0.37 per share.
• Negative Sentiment: NAV declined 1% in the quarter to $12.39 per share, and the October month-end estimate fell a further 3% from September. Management attributed the pressure mainly to CLO equity valuations amid lower loan prices, while CLO BBs and other private-credit investments were relatively stable.
• Positive Sentiment: The company invested $31 million across 16 investments at a weighted-average effective yield of 15.6%, spanning infrastructure credit and other credit strategies. Management said its broader platform provides access to differentiated opportunities, including investments that can generate additional income.
• Positive Sentiment: Management described underlying credit conditions as resilient: the leveraged-loan default rate declined to 0.6%, and EIC’s look-through exposure to defaulted loans was 22 basis points. It also said 53% of the portfolio was in floating-rate CLO debt, which can benefit from higher benchmark rates.
• Neutral Sentiment: Leverage was 17.3%, below the company’s 25%–35% target range, and management expects it to rise over time through additional preferred-stock issuance. CLO equity valuations remain pressured, while management believes resets and refinancings may help reduce financing costs and support equity cash flows over time.

Presentation

[Operator]

Greetings, and welcome to the Eagle Point Income Company Third Quarter 2026 financial results conference call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. At this time, I will turn the conference over to Mr. Darren Daugherty from Prosek Partners. You may now begin.

[Darren Daugherty, Managing Director at Prosek Partners]

Thank you, operator, and good morning. Welcome to Eagle Point Income Company's Earnings Conference Call for the third quarter of 2026. Speaking on the call today are Thomas Majewski, Chairman and Chief Executive Officer of the company, Dan Ko, Senior Principal and Portfolio Manager for the company's advisor, and Lena Umnova, Chief Accounting Officer for the advisor. Before we begin, I would like to remind everyone that the matters discussed on this call include forward-looking statements or projected financial information that involve risks and uncertainties that may cause the company's actual results to differ materially from such projections. For further information on factors that could impact the company and the statements or projections contained herein, please refer to the company's filings with the SEC.

[Darren Daugherty, Managing Director at Prosek Partners]

Each forward-looking statement or projection of financial information made during this call is based on the information available to us as of the date of this call. We disclaim any obligation to update our forward-looking statements unless required by law. Earlier today, we filed our third quarter 2026 financial statements and investor presentation, which features an updated format with the SEC. These are also available in the investor relations section of the company's website, eaglepointincome.com. A replay of this call will also be made available later today. I will now turn the call over to Thomas Majewski, chairman and chief executive officer of Eagle Point Income Company. Tom?

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

Thank you, Darren, and good morning, everyone. We appreciate your joining Eagle Point Income Company's earnings call this morning. EIC had a strong quarter, as our net investment income, less realized losses, was $0.67 per share, which is more than double our aggregate distributions for the quarter of $0.33 per share. Our earnings were boosted by income from the early repayment of one of our private infrastructure credit investments that was sourced through the broader Eagle Point platform. This contributed $0.30 per share to our quarterly earnings. Excluding the contribution from this early prepayment, our normalized net investment income and realized gains would have been $0.37 per share, still well in excess of our aggregate distributions for the quarter.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

This transaction demonstrates the value of our access to differentiated investment opportunities across the broader Eagle Point platform, which we expect will continue to generate incremental earnings for EIC. As of September 30th, our net asset value was $12.39 per share, down 1% from June 30th, and our GAAP return on common equity was 1.6% for the quarter. Turning to the broader market environment, more market participants are expecting higher interest rates in the near term. This creates a favorable backdrop for EIC's predominantly floating rate portfolio. As of September 30th, 53% of EIC's portfolio consisted of floating rate CLO debt investments, which provide attractive current income and are positioned to benefit from higher benchmark interest rates. Leveraged loans, which are also floating rate, saw prices improve modestly, while the underlying loan spreads remained relatively stable during the quarter.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

With only 27.7% of loans trading above par at quarter end, loan repricing activity also remained relatively limited. Despite continued uncertainty around the path of interest rates, underlying credit fundamentals have remained resilient, and we have not seen signs of widespread credit deterioration. Dan will provide some additional color on the loan and CLO markets later in the call. Turning to our investment activity, during the quarter, we deployed $31 million across 16 new investments at a weighted average effective yield of 15.6%. Our new investment activity spanned a range of asset classes, including infrastructure credit, Portfolio Debt Securities, regulatory capital relief transactions, asset-backed securities, specialty financings, and equipment leasing investments. These investments are originated through dedicated teams across the broader Eagle Point platform, giving EIC access to specialized investment expertise opportunities across a wide range of credit markets.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

As demonstrated by our third quarter results, these investments can also generate meaningful incremental investment income, complementing the recurring income from our portfolio. Turning to our capital structure, during the quarter, we issued about $1 million of our 6% Series AA Convertible Perpetual Preferred Shares. We expect to issue more of this type of preferred equity in the coming quarters, as this fixed rate perpetual financing is an attractive source of long-term capital for us and provides additional flexibility to deploy capital when opportunities arise. We view this financing as a competitive advantage, as we are unaware of any other public CLO debt-focused fund with a similar perpetual convertible preferred program. I'll now turn the call over to Senior Principal and Portfolio Manager Dan Ko for an update on the market.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Thanks, Tom. I'd now like to share some additional thoughts on the loan and CLO markets. The S&P UBS Leveraged Loan Index generated a total return of 2.0% in the third quarter. While loan prices improved modestly, underlying loan spreads remained relatively stable, and repricing activity was limited. We believe the recent stabilization in loan spreads is a positive development following the compression experienced in prior quarters. Despite these generally stable conditions in the underlying loan market, CLO equity valuations continue to face pressure from weaker investor sentiment and broader market technicals.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Turning to underlying credit fundamentals, the average corporate revenue and EBITDA growth numbers remained positive during the quarter, reflecting continued resilience among leveraged loan borrowers despite broader macroeconomic uncertainty. The trailing 12-month leveraged loan default rate declined to 0.6% as of September 30th, compared with 1.0% as of June 30th, and a long-term average of approximately 2.5%.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Importantly, EIC's look through exposure to defaulted loans with just 22 basis points at quarter end, reflecting the quality of our underlying loan holdings and our disciplined approach to CLO selection. Within the leveraged loan market, we have also seen encouraging signs of stabilization in the software sector, including relatively limited default activity and a 2.3% increase in loan prices since the end of the first quarter. As we have discussed on prior calls, we believe concerns about AI disruption may be overstated for many software businesses, particularly those providing mission-critical solutions with strong customer retention and recurring revenues under long-term contracts. While we continue to believe AI is more likely to complement these businesses than replace them, we remain attentive to evolving developments and their potential implications for the sector.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

In terms of CLO market activity, CLO issuance remained robust during the third quarter with $46 billion of new issuance, $48 billion of reset activity, and $38 billion of refinancing activity. Refinancings and resets continue to provide opportunities for CLO equity investors to reduce liability costs and extend reinvestment periods, while also creating potential early repayment opportunities for CLO debt investors. For CLO debt positions purchased at a discount, this activity creates opportunities to realize gains earlier than expected. Beyond the opportunities created by refinancing and reset activity, we continue to see attractive income potential in CLO junior debt. With predominantly floating rate coupons, these investments benefit from elevated benchmark rates, while CLO equity returns are driven more by the arbitrage between the underlying loan spreads and the CLO debt costs.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Combined with EIC's capital structure, we believe this positions the company to generate attractive investment income in the current interest rate environment. With that, I'll hand it over to our advisor's Chief Accounting Officer, Lena Umnova, to walk through our financial results.

[Lena Umnova, Chief Accounting Officer at Eagle Point Income Company]

Thank you, Dan. During the third quarter, the company generated net investment income, or NII, of $0.73 per share. NII, less realized losses from investments, was $0.67 per share, compared with negative $0.29 per share in the second quarter of 2026 and positive $0.26 per share in the third quarter of 2025. Including unrealized losses, GAAP net income attributable to common shareholders was $4.6 million, or $0.20 per share for the third quarter. This compares with GAAP net income of $0.84 per share in the second quarter of 2026 and $0.43 per share in the third quarter of 2025. Cash flows from company's investment portfolio totaled $9 million, or $0.40 per share during the quarter, compared with aggregate distributions on the company's equity and total expenses of $0.44 per share.

[Lena Umnova, Chief Accounting Officer at Eagle Point Income Company]

We paid three monthly distributions of $0.11 per share during the quarter, and earlier today, we have declared monthly distributions of $0.11 per share through the first quarter of 2027. As of September month-end, our leverage ratio was 17.3% and remained below our target range of 25%-35%, where we generally expect to operate the company under normal market conditions. We anticipate leverage to increase over time as we continue our Series AA/AB Convertible Perpetual Preferred Stock program, bringing us closer to the target. Continuing with our capital structure, on October 30th, we paid a Series A Term Preferred Stock, or EICA, under their scheduled maturity. This totaled $38 million.

[Lena Umnova, Chief Accounting Officer at Eagle Point Income Company]

Looking at our portfolio activity during the month of October, the company received approximately $9 million in cash flows from its investment, with additional cash still expected to come in later in the quarter. As of October month-end, the company had over $9 million of available cash and revolver capacity for investments and other purposes. We also estimated our NAV at October month-end to be between $11.92 and $12.02 per share. At the midpoint, this represented a 3% decrease from September month-end. I will now turn the call back to Tom for his closing remarks before we open the call for questions.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

Thanks, Lena. Before we want to wrap up, I did want to highlight our updated investor presentation, which provides shareholders with a new, more comprehensive view of our investment portfolio. Looking ahead, we remain constructive on the opportunity set for CLO junior debt, particularly as base rates rise, as well as our complementary private credit investments, many of which are also floating rate. Combined with disciplined portfolio management and access to differentiated investment opportunities across the broader Eagle Point platform, we believe EIC is well-positioned to generate attractive income and long-term returns for shareholders. We appreciate your continued support and thank you for your time and interest in Eagle Point Income Company. Lena, Dan, and I will now open the call to your questions. Operator?

[Operator]

Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. Our first question comes from the line of Timothy D'Agostino with B. Riley Securities. Please proceed with your question.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Yeah. Hi. Thanks for taking the questions today. I see, obviously, the new investor deck, which is great. I guess looking at slide 11, I think it's pretty interesting what you laid out here in terms of Eagle Point CLO, BB investments in terms of downgrades and PIKs. I guess it would be great to maybe just get some general market commentary on these two, and then a little bit about why you think EIC's better positioned compared to the market. Thank you.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Hey, Tim. It's Dan Ko here. Thanks for your question. This data really shows how we performed the last time there was a significant dislocation in the market. We do err towards higher quality BBs, tier one. I mean, we do like the ability to go and trade versus buying some of the more illiquid tier three, which does have maybe a wider spread, but more susceptible for downgrades and PIKs based on their credit selection. And so, we do have both institutional and retail clients, I think, that prefer the higher quality, and so that's what's translated to, I guess, the stats here. This is across our whole BB strategy, not just in EIC. So, we believe that the safer portfolio has translated well for ultimately just our shareholders.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Okay, great. And I guess, just looking into both figures and thinking about the portfolio and maybe some of the verticals and the industries that it's in, is there something like software where you're seeing more downgrades or more PIKs, or is it in other areas? I guess just maybe industry level commentary on where these downgrades or these PIKs are happening.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Oh, so this is at the CLO tranche level, is what—

[Timothy D'Agostino, Analyst at B. Riley Securities]

Okay

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

—we're talking about, I guess. Which ultimately kind of, obviously, if it's picking on the CLO BB tranche, then you're not getting cash flow, which is bad, and downgrades, obviously, maybe not as impactful for EIC, which doesn't have a ratings requirement, but some of our institutional clients obviously are sensitive to going from a BB or Ba3 to B1. That's kind of what this is laying out.

[Timothy D'Agostino, Analyst at B. Riley Securities]

Okay. Thank you for clarifying that. I appreciate it. That's all for me today.

[Operator]

Thank you. Our next question comes from the line of Erik Zwick with Lucid Capital Markets. Please proceed with your question.

[Analyst at Lucid Capital Markets]

Hi. Good morning. This is Justin on for Erik today. Curious if you have a percentage or dollar amount of investments that have yet to make their first payment.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

I don't have that off the top of my head. I mean, I would say probably it's very low, I guess, on the CLO side. I mean, we did buy some new issue, but it isn't a huge portion of our portfolio. Most of the stuff has made its first payment, but we can get back to you on that. I suspect it's very low.

[Analyst at Lucid Capital Markets]

Okay. Thanks, Dan. Maybe if we could just get your broader view on the NAV decline over the recent quarters. It sounds like it, I think it was 3% more month to date. Is that being driven more so on the CLO equity side of the book, and what do you think could be recaptured over time?

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Yeah. As you said, Justin, it's really the CLO equity portion of the book that's been driving that. I mean, CLO BBs have remained relatively stable along with the other private credit investments that we've made. So, it's really the fact that loans have sold off, software being a little more than others, but the fact that the market is, I think, something like 80%-90% of the loan market today is trading at a discount. So, we can see that recover back closer to par and then see that a little more of a near-term recovery if the market or the loan market does come back. Then we're doing everything we can on the refinancings and the resets to help cut the cost of the CLO debt in our CLO equity book.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

While we don't necessarily own majority in EIC, we are still involved as minority holders, and pushing that so that we can hopefully increase the equity cash flows and ultimately the valuations over time. But again, that takes a bit of time to go through all the refinancings and the resets.

[Analyst at Lucid Capital Markets]

Got it. Okay. Thanks for taking my questions today.

[Dan Ko, Senior Principal and Portfolio Manager at Eagle Point Income Company]

Sure. No problem. Thank you.

[Operator]

Thank you. Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. You may proceed with your question.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Hi. The infrastructure investment is interesting. What percentage do you expect to do more of that and grow infrastructure investments as to be a meaningful part of the portfolio?

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

There are kind of two parts there. The biggest infrastructure investment in the portfolio is one from Nexus. We do have What percentage of the portfolio are we overall? We are about nine, just shy of 10% right now. It would not surprise me to see that number trickle up to the extent opportunities come about in our broader pipeline. We are not actively seeking to increase our infrastructure bucket specifically, but we do have a pretty attractive pipeline at Eagle Point of interesting infrastructure credit investments. A number of them we think are set up pretty well to have some good credit downside protection and the path to some upside, which we certainly benefited from in this most recent quarter, frankly, as well, related to one investment. More to come there.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

We do not have a target for that per se, but as investment opportunities pop up, we will certainly add them to the extent the portfolio has capacity.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Great. As a follow-up, on the floating rate, how long does it take to flow through in terms of into the P&L following a Fed hike?

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

CLO BBs typically reset quarterly, and the rate is determined roughly the 10th day of each quarter, give or take. Every CLO varies a little bit. If the Fed hikes rates on November 1, we would not see that until the January 10 coupon reset, which would then drive the higher earnings in the first quarter, which we would collect on or about April 10 of 2027. So, it flows through pretty quickly. It is not instant, but within 90 days, within one quarter on any single investment, if it is floating rate and CLO debt. Frankly, I know many of the investments and other components of our portfolio are quarterly. A few might even reset monthly, frankly. But you should think of it as flowing through pretty darn quickly.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Great. Thank you.

[Operator]

Thank you. We have reached the end of the question-and-answer session, therefore, I'd like to turn the call back over to CEO Thomas Majewski for closing remarks.

[Thomas Majewski, Chairman and CEO at Eagle Point Income Company]

Great. Thank you, everyone, for joining the call today. We're obviously very pleased with the returns on the company and the strong NII, even just on a recurring NII basis, excluding some of the other fortunate events that have played out. We look forward. We're in a portfolio here that is principally floating rate, and every time you hear about rates going up, net that directly moves the coupon of many of our investments up, which is great. We appreciate everyone's time and interest. If there are further questions or other inquiries, Lena, Dan, and I are available later today to take follow-up emails or calls. Thank you very much.

[Operator]

Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

Participants

Executives

• Thomas Majewski, Chairman and CEO
• Dan Ko, Senior Principal and Portfolio Manager
• Lena Umnova, Chief Accounting Officer

Analysts

• Darren Daugherty, Managing Director at Prosek Partners
• Timothy D'Agostino, Analyst at B. Riley Securities
• Analyst at Lucid Capital Markets
• Christopher Nolan, Analyst at Ladenburg Thalmann