FSK earnings analysis
What we found in FSK's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Misses Expectations
- Quarterly revenue was reported at $400 million, falling short of the estimated $415 million.
- Significant EPS Loss
- The EPS loss amounted to -$1.57, diverging sharply from the expected gain of $0.44.
- Decline in Net Asset Value
- Net asset value decreased to $18.83 from $20.89 in the previous quarter.
- Distribution Declared
- The company declared a distribution of $0.42 per share for Q2 2026.
- High Cost of Debt
- Weighted average interest payments on borrowed funds were reported at 5.27%.
- High Management Fees
- Base management and incentive fees totaled 5.02% as an annualized percentage of net assets.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increase in Non-Accrual Assets
- A significant portion of the investment portfolio, 4.2%, consists of non-accrual assets.
- Rising Interest Rate Exposure
- 61.2% of investments are in variable rate debt, increasing vulnerability to interest rate hikes.
- Net Realized and Unrealized Losses
- Continued pressure on performance could lead to further realized losses impacting earnings.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.57
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
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