Trinity Capital's Net Investment Income Extends Record Streak

The Tip Desk · November 10, 2026 · 3 min read

Net investment income reached a record $49.9 million, or $0.52 a share, in the third quarter ended September 30, 2026.

Trinity Capital Inc. (TRIN), an international alternative asset manager, reported net investment income of $49.9 million, or $0.52 a basic share, for the three months ended September 30, 2026, a record that followed $46.0 million, or $0.51 a share, in the second quarter.

The year-over-year pace of NII growth accelerated. NII rose 34.9% from $37.0 million a year earlier, after a 32.1% year-over-year increase in the second quarter. Basic weighted average shares outstanding were 95.1 million.

Total investment income was $98.4 million, up 30.2% from $75.6 million in the year-ago quarter, after a 25.5% year-over-year increase in the second quarter. The effective yield on average debt investments at cost was 15.2%, compared with 15.0% in the second quarter.

Interest expense was $28.3 million, which the company attributed primarily to higher weighted average debt outstanding. Total operating expenses and excise taxes excluding interest expense were $20.2 million, which the company said was primarily attributable to higher compensation costs, partially offset by higher allocated expenses to its registered investment adviser subsidiary.

Return on average equity was 15.5%, up from 15.2% in the second quarter. Return on average assets was 7.0%. Net increase in net assets resulting from operations was $46.9 million, or $0.49 a share.

Net realized loss on investments was approximately $7.5 million, primarily due to realized losses on two loan positions and one equipment financing position, partially offset by a realized gain on one warrant position. Net unrealized appreciation totaled approximately $4.5 million.

Net asset value was $1.33 billion, or $13.61 a share, at quarter-end, up 4.6% from $1.27 billion at June 30. The company said the increase was primarily due to accretive ATM issuances, partially offset by net portfolio performance.

The investment portfolio had an aggregate fair value of approximately $2.9 billion across 198 portfolio companies, including about $2.0 billion in secured loans, $470.7 million in equipment financings and $369.5 million in equity and warrants. The debt portfolio was 89.2% first-lien and 10.8% second-lien, with 78.4% at floating rates. The portfolio increased $121.1 million on a cost basis and $125.4 million on a fair value basis versus June 30.

Gross investment commitments were $880.5 million. Gross investments funded were $614.1 million, including $431.9 million to 15 new portfolio companies, $117.7 million to 24 existing companies and $64.5 million to multi-sector holdings. Gross exits and repayments were $494.8 million, including $237.2 million from investments sold, $194.3 million from early repayments and refinancings, $57.3 million of scheduled and amortizing payments and $6.0 million from warrant and equity sales.

Loans to three portfolio companies were on non-accrual with a fair value of about $17.2 million, or 0.7% of the debt investment portfolio. The weighted average risk rating score was 3.1. Very strong performance (4.0–5.0) was 7.2% of the debt portfolio, up from 5.1%. Default/workout (1.0–1.5) was 0.7%.

Available liquidity was about $225.0 million, including $20.7 million of cash and $204.3 million of KeyBank borrowing capacity. Net leverage was about 117%. During the quarter the company sold 3,280,462 ATM shares at a weighted average $17.82, raising $57.8 million of net proceeds.

The board declared $0.17 monthly dividends for October, November and December 2026, totaling $0.51 for the fourth quarter and marking the 28th consecutive quarter of a consistent regular dividend. After quarter-end, on October 5, the company issued $350.0 million of 7.500% unsecured notes due 2032 and used proceeds to pay down a portion of KeyBank indebtedness.