SLR Investment (SLRC) Financials

SLR Investment Corp. (NASDAQ: SLRC) Financial Analysis – Last Four Years Overview:

SLR Investment has demonstrated solid financial performance and stability over the past four years based on available income statements, cash flow statements, and balance sheets. Here's a summary of the key trends and points of interest for retail investors:

• Consistent profitability: The company has reported positive net income in most quarters, with Q2 2025 net income at $24.23 million, up from $6.82 million in Q1 2023, showing overall growth in earnings.
• Steady Earnings Per Share (EPS) Growth: Basic EPS has increased from $0.13 in Q1 2023 to $0.44 in Q2 2025, indicating earnings growth on a per-share basis.
• Growing Total Assets: Total assets have grown moderately from around $2.56 billion in Q1 2023 to $2.54 billion in Q2 2025, reflecting an expansion in company size and investment capacity.
• Strong Net Interest Income: Net interest income has generally increased over the years, reaching $35.44 million in Q2 2025, demonstrating effective management of interest-earning assets and borrowing costs.
• Robust Cash Position: Cash and due from banks remain strong at roughly $373 million in Q2 2025, ensuring liquidity and operational flexibility.
• Fluctuating Non-Interest Income: Non-interest income, which includes service charges and capital gains, shows volatility, with some quarters recording losses (e.g., Q4 2023 had a significant negative adjustment).
• Dividend Policy Consistency: Dividends paid have been steady at roughly $22 million per quarter, suggesting a commitment to returning capital to shareholders.
• Amortization and Non-Cash Adjustments: Amortization expenses are relatively stable, while other non-cash adjustments vary widely, impacting operating cash flow reconciliation.
• Operating Cash Flow Volatility: Net cash from operating activities swung dramatically — from strong positive inflows in earlier years (e.g., $239.8 million in Q4 2022) to negative cash flow ($-205 million in Q3 2022 and $-204.85 million in Q2 2025), indicating potential working capital or operational efficiency challenges.
• High Long-Term Debt and Liabilities: The company carries over $1.17 billion in long-term debt as of Q2 2025, with total liabilities exceeding $1.54 billion, which can heighten financial risk if not well managed.

Summary: SLR Investment Corp. shows improvement in profitability and earnings per share over the last four years, supported by strong net interest income and a solid asset base. However, cash flow from operations has been inconsistent, which might warrant attention to operational efficiency and working capital management. The maintenance of a stable dividend suggests shareholder-friendly management, though the significant long-term debt levels require ongoing vigilance.

Investors should consider these factors alongside market conditions and company-specific developments when evaluating SLR Investment as an investment opportunity.