SPMC

This article first appeared on GuruFocus. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net asset value (NAV) per share increased to $9.88 from $9.63 in the prior quarter, driven by net unrealized appreciation in CLO equity investments. The CLO equity portfolio's weighted average GAAP yield improved to 9.8% from 9.1% in the prior quarter, with current go-forward yields around 10.1%. The advisor proposed a temporary fee waiver for the second half of 2026, reducing the base management fee from 1.75% to 1.5% and the incentive fee from 20% to 15% to reduce expenses. The portfolio remains highly diversified across 108 CLOs, 31 managers, and over 1,500 underlying loans, which is a key risk management tool amid market dispersion. Active portfolio rotation is adding value, with year-to-date sales of $35 million and purchases of $50 million, adding approximately 100 basis points of yield through the trades. Refinancing of 13 CLO liabilities during the quarter resulted in a weighted average debt cost savings of 37 basis points, supporting future cash flows. Net investment income (NII) of $0.24 per share remained below the common distributions of $0.60 per share, leading to a reduction in the monthly distribution to $0.13 per share. The company recorded a net realized loss of $12.8 million during the quarter, reflecting losses on sold investments. The CLO equity asset class is facing unprecedented income compression due to spread tightening and higher model loss reserves for AI-impacted software loans. The broader market environment is challenging, with a slowdown in private equity deal-making and a decline in investor demand for CLOs, leading to a rough supply-demand equilibrium. The software sector, which makes up 10-12% of the portfolio on a look-through basis, continues to face AI-driven disruption, with average bid prices on performing software loans slipping to 85.62. The new issue CLO equity arbitrage remains unattractive, with primary equity returns in the high single-digit range compared to more attractive secondary market opportunities. Warning! GuruFocus has detected 4 Warning Signs with ELE. Is SPMC fairly valued? Test your thesis with our free DCF calculator. Q: How did the company determine the new monthly dividend rate of $0.13 per share, given that it is still higher than the NII reported for the quarter?A: Ujaval Desai, CEO, explained that the board considered several factors, including the current portfolio mix, expected yields going forward, and the ongoing portfolio rotation. He highlighted three key components: signs of improving loan spreads, continued refinancing and reset activity (13 transactions completed in the quarter), and active trading that has added about 100 basis points of yield through rotation. The portfolio's weighted average GAAP yield has already improved to 9.8% from 9.1% in the prior quarter, with July go-forward yields around 10.1%, which the company expects will translate into higher NII over time. Q: Can you provide color on the company's exposure to the software sector impacted by AI and how it plans to manage that exposure?A: Ujaval Desai, CEO, stated that roughly 10% to 12% of the portfolio is exposed to software credits on a look-through basis. However, he emphasized that not all credits are the same and the company has conducted extensive credit-by-credit re-underwriting to identify which names are likely to be impacted. The goal has been to reduce the tougher names within the sector to minimize tail risk, rather than reducing the overall sector exposure itself. Q: What was the historical percentage of software exposure in new CLO issuance compared to the current 8.8%?A: Ujaval Desai, CEO, did not have the exact historical number on hand but estimated that typical portfolios have had 10% to 15% software exposure, and the new issue market was probably in the 15% to 20% range in prior years. He committed to following up with the exact figure. Q: How is the company thinking about capital deployment between new investments in CLOs versus paying down the revolver, given the $21 million cash position?A: Ujaval Desai, CEO, said the focus remains on the rotation tradeselling lower-yielding or riskier positions and buying better quality secondary investments. The company is seeing plenty of opportunities in the secondary market with mid-to-high 10s yields from tier-one managers. Primary equity returns remain unattractive at high single-digit levels (8%-9%), while secondary equity offers high 10s returns. The company is carefully managing its revolver and will evaluate leverage sustainability as it deploys capital. Q: Can you describe the characteristics of the investments sold that resulted in realized losses during the quarter?A: Ujaval Desai, CEO, clarified that the sold investments were not nearing the end of their reinvestment periods, as the portfolio's weighted average reinvestment period is among the longest in the market. The sales were driven by two factors: deals that were too tight from a yield perspective based on go-forward cash flow generation, and deals where there were concerns about portfolio quality deterioration due to manager underperformance or negative views on underlying credits, particularly in software. The purchases were focused on better quality candidates with higher base yields and significantly better downside protection. Q: Beyond software, are there any other underlying industries the company is leaning into or seeing value in?A: Ujaval Desai, CEO, said the company prefers defensive, less cyclical sectors such as cable and healthcare. The tougher sectors to avoid include cyclical ones like retail, oil and gas, and some consumer sectors. The approach involves ongoing dialogue with all portfolio managers to track where they see value and manage the portfolio accordingly. Q: Is there a possibility that the fee waiver, which runs through the end of calendar year 2026, could be extended into 2027?A: Ujaval Desai, CEO, said the company cannot predict future conditions, but the fee waiver is intended to signal alignment with shareholders during a difficult period for CLO equity. The six-month timeframe was set to allow the company to complete its portfolio rotation and achieve the goal of earning the $0.13 dividend through NII. The waiver will be reviewed at the end of the year, and the company is also focused on reducing other expenses to maximize shareholder value. Q: What were the key drivers behind the increase in NAV per share from $9.63 to $9.88 during the quarter?A: Dan Fabian, CFO, reported that the NAV increase was primarily driven by net unrealized appreciation in the fair value of CLO equity investments, partially offset by distributions paid in excess of NII. The company recorded a net realized loss of $12.8 million and an unrealized gain of $25.2 million during the quarter, resulting in GAAP net income of $17.5 million or $0.83 per share. Q: How did the company's trading activity contribute to portfolio yield improvement during the quarter?A: Dan Fabian, CFO, detailed that the company purchased 13 equity investments in the secondary market with a cost of $16.1 million and a weighted average yield of 20.2%, while selling seven equity investments generating $23.3 million in proceeds with a weighted average yield of 8.5%. This rotation, combined with refinancing liabilities of 13 CLO equity investments at a weighted average debt cost savings of 37 basis points, contributed to the overall portfolio yield improvement. Q: What is the company's outlook for the CLO equity market and its positioning for the second half of 2026?A: Ujaval Desai, CEO, noted that while volatility is expected to continue, there are signs of improving market sentiment. He highlighted that loan spreads are beginning to improve, refinancing and reset activity remains strong, and companies are tapping public and private markets to fund AI spending, which should increase loan supply for CLO portfolios. The company remains ready to participate in primary equity as arbitrage improves, but currently sees better opportunities in the secondary market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net investment income of $0.24 per share was pressured by significant spread tightening and higher modeled loss reserves for software loans impacted by AI disruption. NAV per share increased to $9.88, primarily driven by unrealized appreciation in CLO equity fair values, which offset distributions paid in excess of earnings. Management observed a pronounced bifurcation in credit markets, where B- spreads widened by 55 basis points while higher-rated credit spreads remained largely unchanged. The company is executing a strategic rotation, selling CLO equity with limited optionality to acquire higher-quality secondary investments with yields in the mid-to-high teens. A temporary fee waiver was implemented to reduce the expense burden while the firm works to improve income through liability refinancing and active trading. Market technicals were challenged by the weakest investor demand since Q4 2023, driven by a pullback in CLO issuance and insufficient loan fund flows. The board reduced monthly distributions to $0.13 per share to better align with expected portfolio yields and support long-term NAV preservation. Future performance is heavily dependent on a recovery in private equity deal-making, which serves as the primary engine for net new loan supply. Management expects the arbitrage for primary CLO equity to remain difficult in the near term, maintaining a strategic focus on the secondary market. The direction of credit markets in late 2026 will be influenced by the evolution of interest rates, geopolitical stability, and the depth of AI-driven disruption in software. Ongoing liability management, including resets and refinancings, is expected to capture debt cost savings as top-tier managers price inside the broader market. The adviser proposed a 6-month fee waiver reducing base management fees from 1.75% to 1.5% and incentive fees from 20% to 15% through year-end 2026. Software sector exposure (10-12% of portfolio) is undergoing rigorous credit-by-credit re-underwriting to mitigate specific AI-related tail risks. A net realized loss of $12.8 million was recorded during the quarter, reflecting the strategic exit from lower-optionality investments. Energy market volatility remains a risk factor, though a tentative US-Iran peace deal has recently brought oil prices below $80 a barrel. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The rate was set based on an expected portfolio yield improvement from 9.8% toward 10.1% through active rotation and liability refinancing. Management noted that year-to-date rotation has already been accretive, adding approximately 100 basis points of yield to the portfolio. Exposure is approximately 10% to 12% on a look-through basis, but management is focused on individual credit selection rather than reducing total sector weight. The firm is using credit re-underwriting to identify and exit specific names with high vulnerability to AI disruption. The focus remains exclusively on secondary investments where yields are in the mid-to-high teens, compared to primary equity returns in the 8-9% range. The $21 million cash position provides flexibility to either deploy into high-quality secondary opportunities or manage the revolving credit facility. The waiver is a proactive signal of alignment with investors during a period of 'unprecedented' income compression for the CLO equity asset class. Management will review the waiver at year-end, with the goal of reaching a position where net investment income fully covers the $0.13 distribution.

Interested in Sound Point Meridian Capital, Inc.? Here are five stocks we like better. Net investment income was $5 million, or $0.24 per share, below the $0.60 per-share distribution as CLO equity income faced spread tightening and higher modeled losses on AI-affected software loans. NAV increased to $9.88 per share from $9.63. The company cut its monthly distribution to $0.13 per share from $0.20 for the fourth quarter of 2026 and proposed six months of fee waivers, reducing the base management fee to 1.5% and the incentive fee to 15%. Management is rotating toward higher-yielding secondary CLO equity investments while reducing vulnerable credits; software represented roughly 10%–12% of look-through exposure, and performing software loan prices declined amid AI-related concerns. Sound Point Meridian Capital (NYSE:SPMC) reported net investment income of $5 million, or $0.24 per share, for its fiscal first quarter ended June 30, 2026, as spread tightening and higher modeled loss reserves on AI-impacted software loans continued to pressure income from its CLO equity portfolio. The company paid distributions of $0.60 per share during the quarter. Chief Executive Officer Ujjaval Desai said net investment income remained below common distributions despite refinancing activity across the portfolio, citing income compression in the CLO equity asset class. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Net asset value rose to $9.88 per share at June 30 from $9.63 at March 31, driven primarily by net unrealized appreciation in CLO equity investments, partly offset by distributions exceeding net investment income. The company estimated its NAV per common share at between $9.56 and $9.66 as of July 31. Chief Financial Officer Dan Fabian said the company recorded a net realized loss of $12.8 million and unrealized gains on investments of $25.2 million during the quarter. GAAP net income totaled $17.5 million, or $0.83 per share, while total expenses were $7.4 million. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be Sound Point Meridian Capital’s CLO equity portfolio had a weighted average GAAP yield of 9.8% at quarter-end, up from 9.1% in the prior quarter. Desai said the portfolio held investments in 108 CLOs managed by 31 managers, providing look-through exposure to more than 1,500 loans across over 30 industries. Purchased 13 secondary-market equity investments for $16.1 million at a weighted average yield of 20.2%. Sold seven equity investments for $23.3 million in cash proceeds at a weighted average yield of 8.5%. Refinanced liabilities on 13 CLO equity investments, generating weighted average debt-cost savings of 37 basis points. Reported total assets of $384.7 million, net assets of $208.1 million, and investment portfolio fair value of $363.2 million. Ended the quarter with about $21 million in cash and a leverage ratio of 45.7% of total assets. Desai said portfolio rotation has been a central focus. Year to date, the company sold about $35 million of positions and purchased roughly $50 million of secondary positions, adding approximately 100 basis points of yield through the rotation. He said the portfolio’s current forward yield for July was about 10.1%. → First Solar’s Profit Engine Faces a New Policy Test in Washington The company is selling positions with limited near-term optionality, lower expected yields or greater downside risks, while buying higher-quality secondary investments. Desai said secondary CLO equity opportunities were offering mid- to high-teen yields, compared with estimated high-single-digit returns of roughly 8% to 9% in primary CLO equity issuance. Following the quarter, the company announced monthly distributions of $0.13 per share for the fourth quarter of calendar 2026, down from $0.20 per share monthly for the third quarter. The board considered current and expected portfolio yield, balance-sheet flexibility, NAV support and the objective of earning distributions through net investment income, Desai said. The revised monthly distribution equates to $0.39 per share for the quarter. Desai said the company’s goal is for net investment income to reach the $0.13-per-share monthly distribution level over time. Sound Point, the company’s adviser, also proposed a fee waiver for the six months from July 1 through Dec. 31, 2026. The proposal would lower the annual base management fee to 1.5% from 1.75% and reduce the annual incentive fee to 15% from 20% of pre-incentive net investment income. Desai characterized the waiver as a response to unusually severe CLO equity income compression. He said management expects the period to provide time to complete portfolio rotation, subject to market conditions, and would review the waiver at year-end. Desai said approximately 10% to 12% of the portfolio, on a look-through basis, was exposed to software credits. The company has conducted credit-by-credit re-underwriting to identify companies most likely to face AI-related disruption and has used the results to reduce exposure to the names it considers most vulnerable. “At a sector level, we're more concerned about the individual names, not the sector exposure itself,” Desai said. He added that the company may maintain similar overall software exposure while reducing tail risk within the sector. In discussing the broader market, Desai said U.S. institutional leveraged loan activity totaled about $224 billion in the second quarter, down 7% sequentially but 17% above the five-year quarterly average. Private-equity deal volume fell 38% from the first quarter, however, and sponsors concentrated on extend-and-amend transactions ahead of the 2028 maturity wall. He said lower-rated credits experienced greater pressure, while software loan prices declined amid AI-related concerns. The average bid on performing software loans fell to 85.62 by quarter-end, down more than two points from March, even as the broader loan index rose 1.29% year to date. CLO issuance totaled $33.3 billion across 72 transactions during the quarter, the lowest quarterly volume since the fourth quarter of 2023, according to Desai. Refinancing and reset activity remained stronger, with combined volume of $93.7 billion, compared with $56.2 billion in the first quarter. Looking ahead, Desai said the direction of credit markets will depend on private-equity deal activity, interest rates, geopolitical developments and the evolution of AI-related software concerns. He said the company sees potential for increased loan supply as companies access public and private markets to fund artificial intelligence spending, while loan-spread improvement and liability refinancings could support future CLO equity cash flows. Sound Point Meridian Capital Inc is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches. Sound Point Meridian Capital Inc is based in NEW YORK. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sound Point Meridian Capital Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

NEW YORK, August 12, 2026--(BUSINESS WIRE)--Sound Point Meridian Capital, Inc. (NYSE: SPMC, SPMA, SPME), a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the "Company"), today announced the declaration of distributions on shares of the Company’s common and preferred stock for the third fiscal quarter 2027 (fourth calendar quarter of 2026), results for the first fiscal quarter ended June 30, 2026 and additional activity through July 31, 2026. The Company is declaring a monthly distribution of $0.13 per share on its common stock to be paid on each of October 30, 2026, November 30, 2026, and December 31, 2026. The distributions will be payable according to the following schedule: Distributions on common stock are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2026 calendar year. The Company is also declaring a monthly distribution of $0.16667 on shares of the Company’s 8.00% Series A Term Preferred Stock due 2029 (the "Series A Term Preferred Stock") to be paid on each of October 30, 2026, November 30, 2026, and December 31, 2026. The distributions will be payable according to the following schedule: The distributions on the Series A Term Preferred Stock reflect an annual distribution rate of 8.00% of the $25.00 liquidation preference per share. The Company is also pleased to announce the declaration of distributions on shares of the Company’s 7.875% Series B Term Preferred Stock due 2030 (the "Series B Term Preferred Stock") as follows: The distributions on the Series B Term Preferred Stock reflect an annual distribution rate of 7.875% of the $25.00 liquidation preference per share. FIRST FISCAL QUARTER ENDED JUNE 30, 2026 RESULTS Net asset value per share of common stock was $9.88 as of June 30, 2026. Net investment income ("NII") was $5.1 million, or $0.24 per share of common stock, comprised of $12.4 million of investment income, or $0.59 per share of common stock and $7.4 million of expenses, or $0.35 per share of common stock. Realized loss on investments was $12.8 million, or ($0.60) per share of common stock. Unrealized gain on investments was $25.2 million, or $1.19 per share of common stock. GAAP net income was $17.5 million, or $0.83 per share of common stock. As of June 30, 2026, the weighted average effective yield of the Company’s CLO equity portfolio, based on amortized cost, was 9.8%.1 As of June 30, 2026, on a look-through basis, and based on the most recent trustee reports received by such date: SECOND FISCAL QUARTER PORTFOLIO ACTIVITY AND OTHER UPDATES Management’s unaudited and estimated range of the net asset value per share of the Company’s common stock as of July 31, 2026, was between $9.56 and $9.66. Received $16.1 million cash distributions from the Company’s investment portfolio.2 Declared a monthly distribution of $0.13 per share on the Company’s common stock to be paid on each of October 30, 2026, November 30, 2026, and December 31, 2026. Declared a monthly distribution of $0.16667 on shares of the Company’s 8.00% Series A Term Preferred Stock due 2029 to be paid on each of October 30, 2026, November 30, 2026, and December 31, 2026. Declared a monthly distribution of $0.1640625 on shares of the Company’s 7.875% Series B Term Preferred Stock due 2030 to be paid on each of October 30, 2026, November 30, 2026, and December 31, 2026. Entered into a Management Fee Waiver Agreement with the Company's investment adviser, effective for the period from July 1, 2026 through December 31, 2026, pursuant to which the Adviser has agreed to temporarily waive a portion of the base management fee and incentive fee otherwise payable under the Advisory Agreement. During this period, the fee waiver will reduce the annual base management fee from 1.75% to 1.50% and the annual incentive fee from 20% to 15% of pre-incentive net investment income.3 CONFERENCE CALL The Company will host a conference call at 11:00 a.m. (Eastern Time) today to discuss these results. All interested parties are welcome to participate in the conference call via the below: To access the call, please dial-in approximately five minutes before the start time and, if asked, provide the operator with Conference ID 480 045 023. An accompanying slide presentation is available in pdf format via the "Events and Presentations" section of the Company’s website (https://www.soundpointmeridiancap.com/). The call will also be simultaneously webcast over the internet via the "Events and Presentations" section of the Company’s website (https://www.soundpointmeridiancap.com/). Please go to the "Events and Presentations" section of the Company’s website at least 15 minutes prior to the call to register for the call and download and install any necessary audio software. About the Company The Company is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation ("CLO") equity and mezzanine tranches of predominately U.S. dollar-denominated CLOs backed by corporate leveraged loans issued primarily to U.S. obligors. The Company is externally managed and advised by Sound Point Meridian Management Company, LLC, a Delaware limited liability company. For additional information, visit https://www.soundpointmeridiancap.com. FORWARD-LOOKING STATEMENTS This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE 1 Weighted average effective yield is based on investments’ amortized cost and expected future cash flows as of the applicable period end. 2 "Cash distributions" refers to the quarterly distributions received by the company from its CLO equity investments. 3 For additional details, see the Management Fee Waiver Agreement, filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed August 12, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260812682026/en/ Contacts Investor Relations:Julie Smith – Sound Point Capital(833) [email protected] www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc. (SPMC) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.3 per share. This compares to earnings of $0.53 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -20.00%. A quarter ago, it was expected that this company would post earnings of $0.41 per share when it actually produced earnings of $0.34, delivering a surprise of -17.07%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Sound Point Meridian Capital, Inc., which belongs to the Zacks Financial - Investment Management industry, posted revenues of $12.43 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 11.69%. This compares to year-ago revenues of $19.21 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sound Point Meridian Capital, Inc. shares have lost about 21.7% since the beginning of the year versus the S&P 500's gain of 12.9%. While Sound Point Meridian Capital, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sound Point Meridian Capital, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $14.14 million in revenues for the coming quarter and $1.22 on $56.41 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. FG Nexus Inc (FGNX), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $6.45 per share in its upcoming report, which represents a year-over-year change of -135.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. FG Nexus Inc's revenues are expected to be $0.7 million, down 95.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sound Point Meridian Capital, Inc. (SPMC) : Free Stock Analysis Report FG Nexus Inc (FGNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PennantPark (PFLT) came out with quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -3.70%. A quarter ago, it was expected that this investment company would post earnings of $0.28 per share when it actually produced earnings of $0.27, delivering a surprise of -3.57%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. PennantPark, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $66.09 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.1%. This compares to year-ago revenues of $63.5 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. PennantPark shares have lost about 18.9% since the beginning of the year versus the S&P 500's gain of 13.3%. While PennantPark has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for PennantPark was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.28 on $68.87 million in revenues for the coming quarter and $1.08 on $272.42 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Sound Point Meridian Capital, Inc. (SPMC), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -43.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sound Point Meridian Capital, Inc.'s revenues are expected to be $14.08 million, down 26.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PennantPark Floating Rate Capital Ltd. (PFLT) : Free Stock Analysis Report Sound Point Meridian Capital, Inc. (SPMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Conference Call Scheduled for Wednesday, August 12, 2026 at 11:00 a.m. ET NEW YORK, July 29, 2026--(BUSINESS WIRE)--Sound Point Meridian Capital, Inc. (NYSE: SPMC), a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the "Company"), today announced it plans to release its financial results for its first fiscal quarter ended June 30, 2026 prior to the opening of the stock market on Wednesday, August 12, 2026, and discuss these results in a conference call at 11:00 a.m. ET. All interested parties are welcome to participate in the conference call via the below: To access the call, please dial-in approximately five minutes before the start time and, if asked, provide the operator with Conference ID "480 045 023". An accompanying slide presentation will be available in pdf format via the "Investor Relations" section of the Company’s website (https://www.soundpointmeridiancap.com) after the issuance of the earnings release. Webcast The call will also be simultaneously webcast over the internet via the "Investor Relations" section of the Company’s website or by clicking on the webcast link here. Please go to the "Investor Relations" section of the Company’s website at least 15 minutes prior to the start of the call to register and install any necessary audio software. Replay An online archive of the webcast will be made available shortly after the call via the "Investor Relations" section of the Company’s website and will remain available for approximately one year. About the Company The Company is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation ("CLO") equity and mezzanine tranches of predominately U.S. dollar-denominated CLOs backed by corporate leveraged loans issued primarily to U.S. obligors. The Company is externally managed and advised by Sound Point Meridian Management Company, LLC, a Delaware limited liability company. For additional information, visit https://www.soundpointmeridiancap.com. FORWARD-LOOKING STATEMENTS This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260729573126/en/ Contacts Investor Relations: Julie Smith – Sound Point Capital(833) [email protected] www.soundpointmeridiancap.com

Invesco (IVZ) came out with quarterly earnings of $0.71 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.97%. A quarter ago, it was expected that this investment management company would post earnings of $0.58 per share when it actually produced earnings of $0.57, delivering a surprise of -1.72%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Invesco, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $1.33 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $1.1 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Invesco shares have added about 14.6% since the beginning of the year versus the S&P 500's gain of 8.3%. While Invesco has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Invesco was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.75 on $1.38 billion in revenues for the coming quarter and $2.78 on $5.34 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Sound Point Meridian Capital, Inc. (SPMC), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -43.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Sound Point Meridian Capital, Inc.'s revenues are expected to be $14.08 million, down 26.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco Ltd. (IVZ) : Free Stock Analysis Report Sound Point Meridian Capital, Inc. (SPMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sound Point Meridian Capital Inc (NYSE:SPMC) generated net investment income of $7 million or $0.34 per share for the fourth fiscal quarter. The company maintains a highly diversified portfolio with investments across 98 CLOs managed by 29 different managers, providing exposure to over 1,500 underlying loans spanning more than 30 industries. SPMC announced monthly distributions for calendar Q3 2026 of $0.20 per share, unchanged from Q2 2026, indicating stability in distribution levels. The company successfully refinanced the liabilities of two CLO equity investments, resulting in a weighted average debt cost saving of 34 basis points. Post-quarter end, loan prices rebounded, and liability costs began tightening again, improving the refinancing optionality for SPMC's portfolio. Net asset value (NAV) per share declined significantly from $14.02 as of December 31, 2025, to $9.63 as of March 31, 2026. SPMC recorded a net realized loss of $4.1 million and an unrealized loss on investments of $77.6 million for the quarter. The GAAP net loss for the quarter was $74.7 million or a loss of $3.63 per share. The company's leverage ratio was 46.8% of total assets, indicating a relatively high level of debt. Market conditions were challenging, with a sell-off in loans, particularly in the software sector, impacting the company's CLO equity portfolio and increasing model default rates. Is SPMC fairly valued? Test your thesis with our free DCF calculator. Q: How much exposure does Sound Point Meridian Capital have to the software sector, and is there a plan to reduce it? A: Ujaval Desai, CEO, explained that the focus is on exposure to AI, not just software. The portfolio has a low 10% exposure to sectors potentially disrupted by AI, including software, services, and healthcare. The company has re-underwritten these positions and found many are strong companies that could benefit from AI. The strategy involves rebalancing the portfolio to focus on positive credits within the sector rather than reducing overall exposure. Q: Were the secondary market investments yielding 31.3% a one-time opportunity due to the loan sell-off? A: Ujaval Desai, CEO, noted that the market was shut off in February and March due to AI sell-off and geopolitical tensions. Most portfolio positioning occurred in April and May, with a focus on secondary market opportunities. The primary market still does not offer attractive returns, so the company is concentrating on secondary investments. Q: What drove the $4.1 million realized losses in the quarter? A: Ujaval Desai, CEO, stated that the losses were due to selling positions with more downside risk than upside potential. The focus was on reducing future losses by rebalancing the portfolio, selling underperforming transactions, and investing in better-performing secondary positions. Q: What were the common themes in the positions sold due to tail risk? A: Ujaval Desai, CEO, explained that the analysis focused on credit risk and manager performance. Many underperforming loans were software-related, trading at discounts. The strategy involved reducing exposure to loans with significant downside risk and adding positions with more upside potential. Q: Can you provide an update on the NAV increase in April and expectations for May? A: Ujaval Desai, CEO, highlighted that April's positive performance was driven by rebounding loan prices and improved liability costs. These trends continued into May, suggesting another positive month for CLOs. The expectation is for May to be a good month unless significant changes occur. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net investment income (NII) remained below common distributions due to persistent spread tightening and a significant decline in zero equity arbitrage opportunities over the last 12 to 18 months. The sharp decline in Net Asset Value (NAV) to $9.63 was primarily driven by weaker market valuations of CLO equity and underlying leveraged loans, alongside lower projected cash flows. A sector-specific sell-off in software-related loans, triggered by AI-driven disruption fears, increased model default rates and pressured the portfolio's weighted average GAAP yield. Market technicals weakened as investor demand hit a 3-year low, driven by negative retail fund flows and a 32% year-over-year decline in institutional leveraged loan issuance. Management attributes the quarter's realized losses to a deliberate strategy of exiting underperforming positions with high tail risk to rotate capital into healthier secondary market opportunities. The company maintains a highly diversified portfolio across 98 CLOs and 29 managers to mitigate increasing dispersion across credit sectors and manager performance. Management is actively reassessing the distribution strategy for the coming months as market visibility improves, maintaining the current $0.20 monthly rate for now. The investment focus has shifted toward the secondary market, where management sees more attractive risk-adjusted returns compared to primary equity issuance. A recovery in NAV to $10.57 as of April 30, 2026, suggests a rebound in sentiment following the US-Iran ceasefire and stabilizing fears regarding AI displacement. The portfolio is positioned with shorter non-call periods (averaging 10-11 months) to capitalize on liability refinancing optionality as credit spreads tighten again in Q2. Future performance is contingent on the return of M&A-related loan issuance to stabilize spreads and offset the recent slowdown in refinancing activity. Recorded a net realized loss of $4.1 million (20¢ per share) resulting from the strategic liquidation of underperforming equity investments. Identified a 12-13% portfolio exposure to 'AI-disruptible' sectors, including software, services, and healthcare, which underwent a comprehensive re-underwriting process. Leverage ratio stood at 46.8% of total assets as of quarter-end, with available liquidity limited to approximately $5.8 million in cash. Liability costs widened by 13 basis points during the quarter, temporarily hindering the company's ability to execute opportunistic refinancings. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management identified roughly 12-13% of the portfolio as exposed to AI risk across software, services, and healthcare sectors. A re-underwrite of 54 specific names found that the majority are resilient or could benefit from AI adoption, though the fund is rotating out of managers who failed to trade the stress effectively. Secondary markets currently offer superior opportunities, with some recent purchases yielding over 31%. Primary market arbitrage remains unattractive because liability spreads, while tightening recently, have not yet reached levels that justify significant new issue volume. The April NAV increase to $10.57 was driven by a rebound in loan prices and a reversal of liability widening, with costs returning to December 2025 levels. Management expects May to remain positive as the market continues to reverse the 'indiscriminate' sell-off seen in February and March.

Sound Point Meridian Capital, Inc. (SPMC) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -17.07%. A quarter ago, it was expected that this company would post earnings of $0.55 per share when it actually produced earnings of $0.44, delivering a surprise of -20%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Sound Point Meridian Capital, Inc., which belongs to the Zacks Financial - Investment Management industry, posted revenues of $15.12 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 12.09%. This compares to year-ago revenues of $22.66 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Sound Point Meridian Capital, Inc. shares have lost about 20.3% since the beginning of the year versus the S&P 500's gain of 9.8%. While Sound Point Meridian Capital, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Sound Point Meridian Capital, Inc. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.41 on $17.19 million in revenues for the coming quarter and $1.66 on $69.56 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Finance sector, HIVE Digital Technologies (HIVE), has yet to report results for the quarter ended March 2026. This crypto currency mining company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of +32.3%. The consensus EPS estimate for the quarter has been revised 5.9% higher over the last 30 days to the current level. HIVE Digital Technologies' revenues are expected to be $76.79 million, up 146.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sound Point Meridian Capital, Inc. (SPMC) : Free Stock Analysis Report HIVE Digital Technologies Ltd. (HIVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research