10-K · March 5, 2026
Monroe Capital (MRCC) is a BDC focused on lower middle‑market lending; as of December 31, 2025 it reported a portfolio with a fair value of $334.9 million across 87 portfolio companies and has executed a paired Asset…
Earnings analysis · 10-K
MRCC earnings analysis
Filed April 29, 2026 · Our reading of the company's report
The latest report
Monroe Capital Corp (MRCC) has transitioned its business model through a merger with Horizon Technology Finance Corporation, effectively ceasing as a standalone entity. The company reported a challenging 2025,…
Read full summary
Monroe Capital Corp (MRCC) has transitioned its business model through a merger with Horizon Technology Finance Corporation, effectively ceasing as a standalone entity. The company reported a challenging 2025, highlighted by significant fluctuations in revenue and earnings per share (EPS), culminating in a merger that alters its capital structure and operational focus.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
- Operating margin
- 69.0%
What stood out
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Asset Sale and Merger Completion
On April 14, 2026, MRCC completed the sale of its investment assets for approximately $335.3 million and merged into Horizon Technology Finance.
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Improved Q4 Earnings Surprise
For Q4 2025, MRCC reported an EPS of $0.11, surpassing estimates by 22.22%.
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Revenue Stability in Q4
Q4 2025 revenue improved to $8.16 million, a 3.38% increase from expectations.
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High Operating Margin
The company maintained a strong operating margin of 69.0% in Q4 2025, indicating efficient cost management.
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Successful Debt Repayment
Proceeds from the asset sale were used to fully repay the ING credit facility, enhancing the capital structure.
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Base Management Fee Stability
Paid $6.8 million in base management fees for 2025 without accruing any capital gains incentive fees, indicating controlled costs.
What to watch
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Loss of BDC Status
MRCC withdrew its election to be treated as a business development company, risking potential investment-related advantages associated with that status.
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Shareholder Value Dilution
Following the merger, existing MRCC shareholders received 0.9402 shares of HRZN, possibly diluting value given market uncertainty.
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Profitability Instability
In 2025, MRCC experienced negative EPS in multiple quarters, indicating underlying profitability challenges before the merger.
Management's outlook
Annual outlook deferred to earnings press release / call.
Earlier filings 4
10-Q · November 5, 2025
Monroe Capital reported Q3 2025 results showing a sharp decline in revenue and EPS, with actual revenue of $8 million, down 20% from the previous quarter and down 50% year-over-year. The company reported an EPS of…
10-Q · May 7, 2025
Monroe Capital reported total investment income of $11,638,000 and net investment income per share of $0.19 for the three months ended March 31, 2025. Revenue and NII declined versus the prior year (investment income…
10-K · March 11, 2024
Monroe Capital Corporation's 10-K report for 2023 indicates a stable foundation with a focus on providing financing solutions to lower middle-market companies. Their investment strategy prioritizes senior secured loans,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.