Earnings analysis · 10-Q
FSK earnings analysis
Filed May 11, 2026 · Our reading of the company's report
The latest report
FS KKR Capital Corp. (FSK) reported disappointing Q1 2026 results with revenue of $400 million, missing estimates by $15 million, and a significant EPS loss of $1.57 compared to expectations of $0.44. Management…
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FS KKR Capital Corp. (FSK) reported disappointing Q1 2026 results with revenue of $400 million, missing estimates by $15 million, and a significant EPS loss of $1.57 compared to expectations of $0.44. Management underscored strategic actions being implemented while reporting a decline in net asset value from $20.89 to $18.83 per share.
Reported figures
- Earnings per share
- $-1.57
What stood out
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Revenue Misses Expectations
Quarterly revenue was reported at $400 million, falling short of the estimated $415 million.
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Significant EPS Loss
The EPS loss amounted to -$1.57, diverging sharply from the expected gain of $0.44.
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Decline in Net Asset Value
Net asset value decreased to $18.83 from $20.89 in the previous quarter.
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Distribution Declared
The company declared a distribution of $0.42 per share for Q2 2026.
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High Cost of Debt
Weighted average interest payments on borrowed funds were reported at 5.27%.
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High Management Fees
Base management and incentive fees totaled 5.02% as an annualized percentage of net assets.
What to watch
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Increase in Non-Accrual Assets
A significant portion of the investment portfolio, 4.2%, consists of non-accrual assets.
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Rising Interest Rate Exposure
61.2% of investments are in variable rate debt, increasing vulnerability to interest rate hikes.
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Net Realized and Unrealized Losses
Continued pressure on performance could lead to further realized losses impacting earnings.
Management's outlook
Outlook deferred to earnings press release / call.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.