SLR Investment (SLRC) Financials

SLR Investment Corp. (NASDAQ: SLRC) has shown a generally solid financial performance with some fluctuations across the last four years, as per the most recent quarterly filings up through Q2 2025. Here's an analysis of key trends based on their income statements, cash flow statements, and balance sheets.

• Consistent net income growth: The company’s consolidated net income improved from $6.8 million in Q1 2023 to $24.2 million in Q2 2025, indicating steady profitability improvement over this period.
• Strong net interest income: Net interest income remained positive and relatively stable, with $35.4 million in Q2 2025, reflecting effective management of interest income and expenses.
• Increasing total assets: Total assets have grown from roughly $2.556 billion in Q1 2023 to $2.537 billion in Q2 2025, indicating modest stability in asset levels despite some quarter-to-quarter variability.
• Effective debt management: SLR issued long-term debt in Q2 2025 totaling $252 million, partially offset by repayments of $119 million, reflecting proactive management of debt to optimize capital structure.
• Consistent dividend payments: Dividends paid remained steady at about $22.3 million per quarter, showing commitment to returning value to shareholders.
• Volatile non-interest income: Non-interest income has been inconsistent, swinging from positive $3.3 million in Q1 2024 to negative amounts in other quarters, largely affected by net realized and unrealized capital gains/losses.
• Fluctuating operating cash flows: Net cash from operating activities swung from positive $68.1 million in Q1 2025 to negative $204.9 million in Q2 2025, largely due to large negative changes in operating assets and liabilities, impacting liquidity.
• Stable share count: Weighted average shares outstanding remained steady at about 54.5 million shares, indicating no dilution or repurchase activity affecting EPS consistency.
• High volatility in capital gains: The company has faced significant swings in net realized and unrealized capital gains on investments, including a substantial loss of $74.5 million in Q4 2022, negatively impacting total revenue and income in some quarters.
• Negative retained earnings: Retained earnings have been negative, around -$125 million recently, signaling overall accumulated losses or distributions exceeding profits historically, which might be a concern for equity holders in the long-term.

Summary: SLR Investment Corp. has demonstrated a recovery and steady profitability growth in recent quarters backed by solid net interest income and asset size. The company is managing its debt and dividends responsibly while facing challenges from volatile capital gains and operating cash flow fluctuations. Investors should watch for sustained improvements in non-interest income and reductions in retained earnings deficits for a healthier financial outlook.