Overview

* Monroe Capital ( MRCC ) Q3 adjusted NII falls to $1.9 mln from $3.3 mln in Q2

* Net asset value declines to $173 mln from $179.6 mln in Q2

* Company anticipates merger with Horizon Technology to close in Q1 2026

Outlook

* Company anticipates merger with Horizon Technology Finance to close in Q1 2026

* Company expects merger to unlock value and provide long-term upside

Result Drivers

* DIVIDEND SUPPORT - Utilization of spillover income supported the quarterly dividend, contributing to NAV decline

* INCOME DECLINE - Decline in interest and dividend income led to reduced net investment income

* MERGER ANTICIPATION - Expected merger with Horizon Technology Finance Corporation anticipated to unlock value and provide synergies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Net $173 mln

Asset

Value

Q3 Net $7.99

Asset

Value

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the closed end funds peer group is "buy"

* Wall Street's median 12-month price target for Monroe Capital Corp ( MRCC ) is $8.25, about 15.2% above its November 4 closing price of $7.00

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)