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CION shares fell 9.9% after Q4 net investment income of 35 cents per share missed estimates.
CION total investment income fell 7.1% to $53.8M in Q4, while operating expenses declined 9.1% Y/Y.
CION NAV per share fell to $13.76 from $15.43 as mark-to-market adjustments weighed on investments.
Shares of CION Investment Corporation (CION - Free Report) plunged 9.9% in yesterday’s trading session after reporting lower-than-expected results. The company reported fourth-quarter 2025 net investment income of 35 cents per share, which missed the Zacks Consensus Estimate of 39 cents. The reported figure remained unchanged from the year-ago quarter.
The results were affected by a decline in total investment income. However, a decrease in expenses supported the results to some extent.
Net investment income was $18.3 million, down 2.1% from the prior-year quarter.
For 2025, the company reported net investment income of $1.78 per share, which missed the Zacks Consensus Estimate of $1.81. Also, the reported figure compares unfavorably with $1.79 per share in the year-ago period. Net investment income was $93 million, down 2.9% year over year.
The company’s distribution coverage was 0.97X, which compares favorably with 0.85X reported in the year-ago quarter.
Net Asset Value (NAV) per share was $13.76, down 10.8% from $15.43 in the year-ago period, primarily reflecting mark-to-market price adjustments to certain investments in the equity portfolio.
CION’s Total Investment Income & Expenses Decline
Total investment income in the fourth quarter was $53.8 million, down 7.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $54.8 million.
Full-year total investment income was $240.8 million, down 4.6% from the year-ago period. The top line missed the Zacks Consensus Estimate of $241.8 million.
Total operating expenses were $35.5 million, down 9.1% year over year. The decrease was due to a decline in almost all the components of expenses.
CION’s Portfolio and Credit Quality
Total investments at fair value were $1.70 billion across 89 portfolio companies in 22 industries. The portfolio composition remained defensively positioned with 80.8% senior secured first lien.
Non-accruals increased to 1.78% of fair value and 4.32% of the total investment portfolio from 1.75% and 4.08%, respectively, in the third quarter of 2025.
CION’s Capital Allocation and Liquidity
The company repurchased 555,652 shares in the fourth quarter of 2025 at $9.37.
Net funded investment activity was negative $1 million, reflecting $79 million in repayments and sales against $66 million in new commitments.
Leverage remained disciplined at 1.44X net debt-to-equity, with total debt of $1.14 billion (65% unsecured, 35% bank debt) and $124 million in available liquidity.
Our Take on CION
Disciplined leverage and a defensively positioned portfolio are expected to support CION Investment’s earnings stability in the coming quarters. Improving deal activity and selective originations could aid portfolio growth over time. However, rising non-accruals and intense competition in the private credit market remain key headwinds.
CION Investment Corporation Price, Consensus and EPS Surprise
Main Street Capital Corporation’s (MAIN - Free Report) fourth-quarter 2025 distributable net investment income of $1.09 per share surpassed the Zacks Consensus Estimate of $1.05. The reported figure compares favorably with $1.04 per share in the year-ago quarter.
MAIN’s results benefited from an improvement in the total investment income. However, an increase in expenses acted as a spoilsport.
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2025 net investment income of 48 cents per share met the Zacks Consensus Estimate. The bottom line, however, declined 2% from the year-ago quarter.
HTGC’s results were primarily aided by an increase in the total investment income. Also, the balance sheet position remained decent, and new commitments were robust. However, a rise in operating expenses was a headwind.
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CION Investment Stock Plunges on Q4 Earnings Miss, Expenses Decline Y/Y
Key Takeaways
Shares of CION Investment Corporation (CION - Free Report) plunged 9.9% in yesterday’s trading session after reporting lower-than-expected results. The company reported fourth-quarter 2025 net investment income of 35 cents per share, which missed the Zacks Consensus Estimate of 39 cents. The reported figure remained unchanged from the year-ago quarter.
The results were affected by a decline in total investment income. However, a decrease in expenses supported the results to some extent.
Net investment income was $18.3 million, down 2.1% from the prior-year quarter.
For 2025, the company reported net investment income of $1.78 per share, which missed the Zacks Consensus Estimate of $1.81. Also, the reported figure compares unfavorably with $1.79 per share in the year-ago period. Net investment income was $93 million, down 2.9% year over year.
The company’s distribution coverage was 0.97X, which compares favorably with 0.85X reported in the year-ago quarter.
Net Asset Value (NAV) per share was $13.76, down 10.8% from $15.43 in the year-ago period, primarily reflecting mark-to-market price adjustments to certain investments in the equity portfolio.
CION’s Total Investment Income & Expenses Decline
Total investment income in the fourth quarter was $53.8 million, down 7.1% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $54.8 million.
Full-year total investment income was $240.8 million, down 4.6% from the year-ago period. The top line missed the Zacks Consensus Estimate of $241.8 million.
Total operating expenses were $35.5 million, down 9.1% year over year. The decrease was due to a decline in almost all the components of expenses.
CION’s Portfolio and Credit Quality
Total investments at fair value were $1.70 billion across 89 portfolio companies in 22 industries. The portfolio composition remained defensively positioned with 80.8% senior secured first lien.
Non-accruals increased to 1.78% of fair value and 4.32% of the total investment portfolio from 1.75% and 4.08%, respectively, in the third quarter of 2025.
CION’s Capital Allocation and Liquidity
The company repurchased 555,652 shares in the fourth quarter of 2025 at $9.37.
Net funded investment activity was negative $1 million, reflecting $79 million in repayments and sales against $66 million in new commitments.
Leverage remained disciplined at 1.44X net debt-to-equity, with total debt of $1.14 billion (65% unsecured, 35% bank debt) and $124 million in available liquidity.
Our Take on CION
Disciplined leverage and a defensively positioned portfolio are expected to support CION Investment’s earnings stability in the coming quarters. Improving deal activity and selective originations could aid portfolio growth over time. However, rising non-accruals and intense competition in the private credit market remain key headwinds.
CION Investment Corporation Price, Consensus and EPS Surprise
CION Investment Corporation price-consensus-eps-surprise-chart | CION Investment Corporation Quote
Currently, CION Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other CION’s Peers
Main Street Capital Corporation’s (MAIN - Free Report) fourth-quarter 2025 distributable net investment income of $1.09 per share surpassed the Zacks Consensus Estimate of $1.05. The reported figure compares favorably with $1.04 per share in the year-ago quarter.
MAIN’s results benefited from an improvement in the total investment income. However, an increase in expenses acted as a spoilsport.
Hercules Capital Inc.’s (HTGC - Free Report) fourth-quarter 2025 net investment income of 48 cents per share met the Zacks Consensus Estimate. The bottom line, however, declined 2% from the year-ago quarter.
HTGC’s results were primarily aided by an increase in the total investment income. Also, the balance sheet position remained decent, and new commitments were robust. However, a rise in operating expenses was a headwind.