SLR Investment Corp. (SLRC)
NASDAQ:SLRC
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SLR Investment Corp.
(NASDAQ:SLRC)
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Rating:58Neutral
Price Target:
$15.00
▼(-0.07% Downside)
Action:ReiteratedDate:02/25/26
The score is held back primarily by inconsistent/uncertain recent financial statement signals—especially volatile, frequently negative cash flow and the latest-period break in reported profitability—along with weak technical momentum. Offsetting these are attractive valuation metrics (low P/E and high dividend yield) and a generally constructive earnings call emphasizing strong portfolio credit quality, liquidity, and continued origination activity despite yield compression and competitive pressures.
Positive Factors
Origination Momentum
Sustained high origination volume and portfolio growth indicate a durable deal pipeline and distribution capacity. Over 2–6 months this supports recurring interest income, deployment optionality, and revenue resilience as the firm converts available capital into yielding assets.
Negative Factors
Volatile Cash Generation
Repeated swings in operating and free cash flow, including a large 2025 outflow, imply inconsistent internal cash generation. Over the medium term this raises questions about dividend coverage stability and increases reliance on external funding in tighter markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Origination Momentum
Sustained high origination volume and portfolio growth indicate a durable deal pipeline and distribution capacity. Over 2–6 months this supports recurring interest income, deployment optionality, and revenue resilience as the firm converts available capital into yielding assets.
Read all positive factors
SLR Investment Corp. (SLRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$818.87M
Dividend Yield10.8%
Average Volume (3M)317.10K
Price to Earnings (P/E)8.4
Beta (1Y)0.61
Revenue Growth-6.30%
EPS Growth-6.92%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.40
Shares Outstanding54,554,634
10 Day Avg. Volume265,392
30 Day Avg. Volume317,103
Financial Highlights & Ratios
PEG Ratio-2.67
Price to Book (P/B)0.85
Price to Sales (P/S)3.83
P/FCF Ratio-11.71
Enterprise Value/Market Cap2.38
Enterprise Value/Revenue10.74
Enterprise Value/Gross Profit12.08
Enterprise Value/Ebitda11.92
Forecast
1Y Price Target
$15.64Price Target Upside4.20% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.61
Revenue Forecast (FY)$217.28M
SLR Investment Corp. Business Overview & Revenue Model
Company Description
SLR Investment Corp. is a business development company specializing in secured debt (first lien unitranche and second lien), subordinated (unsecured) debt, minority equity, leveraged buyouts, acquisitions, recapitalizations, general refinancing, g...
How the Company Makes Money
SLR Investment Corp. generates revenue through interest income from its debt investments, which typically represent the largest portion of its earnings. The company invests in senior secured loans, subordinated debt, and equity in private companie...
SLR Investment Corp. Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call emphasizes strong portfolio quality, disciplined underwriting, robust origination momentum (notably in ABL), solid liquidity, and attractive returns relative to peers. Key weaknesses include yield compression due to lower base rates, tight spreads in sponsor finance, and elevated repayments that created timing variability. Management presents confidence in their defensive positioning, available capital to act on opportunities, and ongoing pipeline activity.Positive Updates
Steady Earnings and Returns
Q4 net investment income (NII) of $0.40 per share (flat QoQ) and net income of $0.46 per share; Q4 net income annualized return on average equity of 10.1%. Full-year 2025 net income of $1.70 per share representing a 9.3% return on average equity.
Negative Updates
Yield Compression and Rate Sensitivity
Weighted average portfolio yield declined to 11.6% from 12.2% in Q3 2025 and from 12.1% at year-end 2024 (down ~0.6 and ~0.5 percentage points respectively), driven in part by lower base rates and late-quarter timing effects.
Read all updates
Q4-2025 Updates
Positive
Negative
Steady Earnings and Returns
Q4 net investment income (NII) of $0.40 per share (flat QoQ) and net income of $0.46 per share; Q4 net income annualized return on average equity of 10.1%. Full-year 2025 net income of $1.70 per share representing a 9.3% return on average equity.
Read all positive updates
Company Guidance
Management's guidance was to remain disciplined yet opportunistic in 2026: the Board declared a Q1 2026 base distribution of $0.41 per share (payable 03/27/2026, record 03/13/2026), and the company has >$850M of available capital (including SSLP capacity) with roughly $55M undrawn at SSLP; debt outstanding is ~$1.2B with net debt-to-equity of 1.14x, no near-term unsecured note maturities until December 2026, and room to increase leverage toward the high end of its target (1.25x) if attractive opportunities arise. They expect to deploy into specialty finance where origination momentum persists (Q4 originations $462M, FY originations $1.84B, net funding in Q4 $70M, comprehensive portfolio $3.3B, annual growth 7.2%), with continued emphasis on ABL (Q4 ABL originations ~$247M, FY ABL ~$1.1B; ABL all‑in ~SOFR+600, ABL yield 12.6%), equipment finance (~$1.1B, yield ~11%), life sciences (first‑lien commitments ~$500M in 2025; portfolio ~$180M, yield 12.3%), and selective cash‑flow lending (~$475M, ~15% of portfolio, yield just under 10%, borrower EBITDA ~$100M, LTV ~40%, interest coverage 2.3x). Key credit and capital metrics underpinning the guidance: NAV $18.26/share, Q4 NII $0.40/share, Q4 net income $0.46/share (10.1% annualized ROE), FY net income $1.70/share (9.3% ROE), weighted average portfolio yield 11.6% (down from 12.2% Q3), ~95% first‑lien and ~98% senior secured by fair value, 100% performing, ~2% software exposure, and PIK income de minimis (~1–2%); management reiterated low sensitivity to base‑rate declines and a plan to prudently access unsecured debt markets.SLR Investment Corp. Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
36
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 220.14M | 176.45M | 159.05M | 74.40M | 99.41M |
| Gross Profit | 161.44M | 104.99M | 86.54M | 28.32M | 69.53M |
| EBITDA | 163.57M | 95.76M | 76.39M | 18.34M | 59.57M |
| Net Income | 92.54M | 95.76M | 76.39M | 18.34M | 59.57M |
Balance Sheet | |||||
| Total Assets | 2.57B | 2.45B | 2.52B | 2.54B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 15.72M | 414.27M | 344.15M | 428.33M | 322.94M |
| Total Debt | 1.15B | 1.03B | 1.18B | 1.09B | 812.04M |
| Total Liabilities | 1.58B | 1.46B | 1.54B | 1.54B | 1.17B |
| Stockholders Equity | 995.99M | 992.93M | 986.64M | 999.73M | 842.28M |
Cash Flow | |||||
| Free Cash Flow | -72.02M | 156.13M | -3.71M | 91.06M | -135.10M |
| Operating Cash Flow | -72.02M | 156.13M | -3.71M | 91.06M | -135.10M |
| Investing Cash Flow | -99.32M | 153.18M | -73.18M | -78.26M | -127.72M |
| Financing Cash Flow | 22.05M | -239.20M | -7.30M | 14.34M | 69.26M |
SLR Investment Corp. Technical Analysis
Positive
15.01
Price Trends
14.39
Positive
14.63
Positive
14.69
Positive
Market Momentum
0.14
Negative
63.65
Neutral
80.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLRC, the sentiment is Positive. The current price of 15.01 is above the 20-day moving average (MA) of 14.34, above the 50-day MA of 14.39, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 80.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SLRC.
SLR Investment Corp. Risk Analysis
SLR Investment Corp. disclosed 5 risk factors in its most recent earnings report. SLR Investment Corp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SLR Investment Corp. Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $810.86M | 9.13 | 8.72% | 13.18% | -26.08% | -27.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $679.76M | 9.74 | 11.68% | 11.47% | -12.17% | -14.93% | |
61 Neutral | $805.44M | 59.29 | 1.29% | 14.17% | 36.15% | -38.59% | |
60 Neutral | $772.50M | 12.09 | 5.87% | 13.63% | -8.23% | -35.72% | |
58 Neutral | $818.87M | 8.41 | 9.32% | 10.80% | -6.30% | -6.92% | |
54 Neutral | $835.41M | ― | 3.23% | 13.64% | 36.91% | -48.79% |
* Financial Sector Average
SLRC
SLR Investment Corp.
15.01
1.82
13.83%
FDUS
Fidus Investment
17.91
1.96
12.29%
NMFC
New Mountain Finance
7.99
-0.05
-0.58%
PFLT
Pennantpark
8.42
0.06
0.67%
CGBD
Carlyle Secured Lending Inc
10.93
-1.40
-11.34%
BCSF
Bain Capital Specialty Finance
12.61
0.20
1.64%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.