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CION reports Q1 net investment income of 25 cents per share, missing estimates by 2 cents.
CION's total investment income declines 11.6% year over year to $49.5 million in the first quarter.
CION maintains 1.62X leverage, with $1.70 billion invested across 89 portfolio companies.
Shares of CION Investment Corporation (CION - Free Report) plunged 5.3% in yesterday’s trading session after reporting lower-than-expected results. The company reported first-quarter 2026 net investment income of 25 cents per share, which missed the Zacks Consensus Estimate of 27 cents. The reported figure compares unfavorably with 36 cents per share in 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 $12.9 million, down 32.7% from the prior-year quarter.
Net Asset Value (NAV) per share was $13.11, down 8.2% from $14.28 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 first quarter was $49.5 million, down 11.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $49.1 million.
Total operating expenses were $36.6 million, down nearly 1% year over year. The decrease was due to a decline in almost all the components of expenses except interest expense and general and administrative expense.
CION’s Portfolio and Credit Quality
Total investments at fair value were $1.70 billion across 89 portfolio companies in 23 industries. The portfolio composition remained defensively positioned with 80.8% senior secured first lien.
Non-accruals were 1.53% of fair value and 5.35% of the total investment portfolio at amortized cost compared with 1.78% and 4.32%, respectively, in the fourth quarter of 2025.
CION’s Capital Allocation and Liquidity
The company repurchased 1,116,053 shares in the first quarter of 2026 at an average price of $8.71 per share for a total repurchase amount of $9.7 million.
Net funded investment activity was positive $28 million, reflecting $38 million in repayments and sales against $54 million in new commitments.
Leverage remained disciplined at 1.62X net debt-to-equity, with total debt of $1.17 billion (75% unsecured, 25% bank debt) and $106 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, intense competition in the private credit market remains a key headwind.
CION Investment Corporation Price, Consensus and EPS Surprise
Hercules Capital Inc.’s (HTGC - Free Report) first-quarter 2026 net investment income of 48 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line grew 6.7% from the year-ago quarter.
Results primarily benefited from an increase in the total investment income and record new commitments. The balance sheet position remained decent. However, a rise in operating expenses was a headwind for HTGC.
Main Street Capital Corporation (MAIN - Free Report) reported first-quarter 2026 net investment income (NII) of 93 cents per share, missing the Zacks Consensus Estimate of $1.04. The reported figure compares unfavorably with $1.01 per share in the year-ago quarter.
MAIN’s results were affected by an increase in expenses. However, improvement in the total investment income supported the result to some extent.
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CION Investment Stock Dips on Q1 Earnings Miss, Expenses Decline Y/Y
Key Takeaways
Shares of CION Investment Corporation (CION - Free Report) plunged 5.3% in yesterday’s trading session after reporting lower-than-expected results. The company reported first-quarter 2026 net investment income of 25 cents per share, which missed the Zacks Consensus Estimate of 27 cents. The reported figure compares unfavorably with 36 cents per share in 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 $12.9 million, down 32.7% from the prior-year quarter.
Net Asset Value (NAV) per share was $13.11, down 8.2% from $14.28 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 first quarter was $49.5 million, down 11.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $49.1 million.
Total operating expenses were $36.6 million, down nearly 1% year over year. The decrease was due to a decline in almost all the components of expenses except interest expense and general and administrative expense.
CION’s Portfolio and Credit Quality
Total investments at fair value were $1.70 billion across 89 portfolio companies in 23 industries. The portfolio composition remained defensively positioned with 80.8% senior secured first lien.
Non-accruals were 1.53% of fair value and 5.35% of the total investment portfolio at amortized cost compared with 1.78% and 4.32%, respectively, in the fourth quarter of 2025.
CION’s Capital Allocation and Liquidity
The company repurchased 1,116,053 shares in the first quarter of 2026 at an average price of $8.71 per share for a total repurchase amount of $9.7 million.
Net funded investment activity was positive $28 million, reflecting $38 million in repayments and sales against $54 million in new commitments.
Leverage remained disciplined at 1.62X net debt-to-equity, with total debt of $1.17 billion (75% unsecured, 25% bank debt) and $106 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, intense competition in the private credit market remains a key headwind.
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 #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other CION’s Peers
Hercules Capital Inc.’s (HTGC - Free Report) first-quarter 2026 net investment income of 48 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line grew 6.7% from the year-ago quarter.
Results primarily benefited from an increase in the total investment income and record new commitments. The balance sheet position remained decent. However, a rise in operating expenses was a headwind for HTGC.
Main Street Capital Corporation (MAIN - Free Report) reported first-quarter 2026 net investment income (NII) of 93 cents per share, missing the Zacks Consensus Estimate of $1.04. The reported figure compares unfavorably with $1.01 per share in the year-ago quarter.
MAIN’s results were affected by an increase in expenses. However, improvement in the total investment income supported the result to some extent.