CION Reverses NAV Drop and Lifts Buyback Cap

The Tip Desk · August 6, 2026 · 4 min read

Net asset value was $13.57 a share at June 30, up $0.46 from March, after a 4.7% first-quarter decline.

CION Investment Corporation (CION) reversed a first-quarter drop in net asset value and swung earnings to a profit as mark-to-market gains on equity holdings lifted the book, while the board raised its share-repurchase authorization by $50 million.

The publicly listed business development company, which focuses on senior secured loans to U.S. middle-market companies, reported net asset value of $13.57 a share as of June 30, 2026, up $0.46, or 3.5%, from $13.11 at March 31. The increase was primarily due to mark-to-market price increases on certain equity investments.

Earnings per share were $0.62 for the three months ended June 30, compared with a $0.45 loss in the prior quarter. Net increase in net assets resulting from operations was $30.98 million, versus a $23.03 million decrease. Net unrealized gains were $34.78 million, versus a $36.13 million loss. Net realized losses were $17.97 million, versus a $0.24 million gain.

Net investment income after taxes rose to $14.17 million from $12.86 million, and net investment income per share rose to $0.29 from $0.25. Total investment income was $49.79 million. The slight increase was primarily driven by higher amortization of purchase discounts from opportunistic purchases in the second quarter, partly offset by lower interest income from a smaller portfolio. Operating expenses fell to $35.62 million from $36.67 million, due to lower interest expense from a decrease in average debt outstanding and lower general and administrative expenses.

The funded portfolio shrank. Investments at fair value were $1.65 billion in 82 portfolio companies across 23 industries, down from $1.70 billion in 89 companies. During the quarter, the company funded $54 million of new investment commitments and $13 million of previously unfunded commitments, and recorded sales and repayments of $157 million, for a $90 million net decrease in the funded portfolio. In the prior quarter, the funded portfolio had increased $28 million. The company received full repayment in five portfolio companies and sold all investments in three.

The book remained concentrated in senior secured first lien debt, which was $1.30 billion, or 79.2% of the $1.65 billion fair-value portfolio. Equity was $334.18 million, or 20.3%. Unsecured debt was $7.36 million.

Credit quality improved. Investments on non-accrual status were 1.44% of the portfolio at fair value and 4.41% at amortized cost, down from 1.53% and 5.35% at March 31. Co-Chief Executive Officer Mark Gatto said there were no new names placed on non-accrual and no new internal risk-rating downgrades.

Yield on debt and other income-producing investments at amortized cost was 10.57%. Yield on performing loans was 11.23%. Weighted average leverage (net debt/EBITDA) was 5.07x, and weighted average interest coverage was 1.87x. Median EBITDA was $33.7 million.

Total debt outstanding remained $1.17 billion, of which 25% was senior secured bank debt and 75% unsecured. Net debt-to-equity improved to 1.52x from 1.62x; debt-to-equity was 1.76x. Cash and short-term investments were $163 million, with $25 million available under financing arrangements.

The company repurchased 1,099,109 shares in the quarter at an average of $7.28 for $8.0 million. Through June 30, it had repurchased 7,755,736 shares at an average of $9.44 for $73.2 million under its 10b5-1 plan. On July 30, the board increased the authorized repurchase amount from up to $80 million to up to $130 million. Gatto said the board authorized the $50 million increase and that the company continues to believe the stock is significantly undervalued relative to net asset value.

After quarter-end, the company repaid about $125 million under its JPM Credit Facility on July 9 and July 24, and on July 15 entered note purchase agreements for up to $10 million of 7.50% senior unsecured notes due 2029 and up to $50 million of 8.00% notes due 2031, with initial closings of $2 million and $28 million, respectively.

Base distributions remained $0.10 a share per month, or $0.30 for the quarter. Monthly base distributions totaled $14.8 million. The co-chief executive officers declared $0.10 per share for October, November and December 2026.