Kayne Anderson BDC (KBDC) Financials

Kayne Anderson BDC (KBDC) Financial Summary and Trends:

Analyzing the last four years of quarterly financial statements, including income, cash flow, and balance sheet data, Kayne Anderson BDC shows growth characteristics and some key operational trends important for retail investors.

• Net income has shown significant growth from the first quarter of 2023 ($57.9M) to the first quarter of 2025 ($77.1M reported in the income statement, $22.2M in cash flow reconciliation, showing some adjustment timing differences), signaling improving profitability.
• Operating revenue has increased notably from $19.3M in Q1 2023 to $29.3M in Q1 2025, indicating growing core business activity.
• The company maintains strong total assets growth, increasing from $1.84 billion in Q1 2024 to approximately $2.23 billion in Q1 2025, reflecting expansion and investment.
• Total common equity has risen from $811.6M in Q1 2024 to $1.18 billion in Q1 2025, suggesting strengthened shareholder equity and retained earnings expansion.
• Dividend per share increased to $0.5 in Q1 2025 from $0.4 in Q1 2024, which may attract income-focused investors.

• The company consistently reports zero plant, property, and equipment, which is typical for a business development company relying on financial investments rather than physical assets.
• Interest and investment income fluctuate but remain robust, with $110.5M in Q1 2025 versus $92.9M in Q1 2024, reflecting potential market and portfolio shifts.
• Weighted average shares outstanding rose from about 45 million basic shares in Q1 2023 to over 71 million basic shares in Q1 2025, implying dilution, possibly due to equity issuance to fund growth.

• Operating cash flows have shown negative values in recent quarters, e.g., -$127.2M in Q1 2025, which may indicate significant changes in working capital or unrealized gains impacting cash flow.
• High non-cash adjustments to reconcile net income, such as -$150M in Q1 2025, could imply considerable unrealized losses or mark-to-market fluctuations impacting reported results.
• The company has a considerable amount of debt, with total liabilities of approximately $1.05 billion in Q1 2025, which requires attention due to interest expenses reported ($17.1M interest expense in Q1 2025), possibly affecting net income sustainability.
• Total operating expenses exceed revenue in some quarters (e.g., total operating expenses of $34M vs. revenue $29.3M in Q1 2025), resulting in negative operating income before other income/expenses, implying dependence on investment income for profitability.

Summary: Kayne Anderson BDC has demonstrated solid revenue and net income growth over the analyzed period, alongside growing asset and equity bases. However, the company’s cash flow from operations is negative, heavily influenced by non-cash adjustments, and it carries significant debt, resulting in substantial interest expenses. Despite the operational expenses sometimes outweighing operating revenues, strong investment income helps maintain positive net income. The increase in dividends per share indicates management’s confidence in cash generation abilities.

Investors should consider both the growth potential and risks from leverage and cash flow variability when evaluating Kayne Anderson BDC.