Fidus Raises Fourth-Quarter Dividend to $0.54 a Share

The Tip Desk · November 11, 2026 · 4 min read

Net investment income was $21.1 million, or $0.54 a share, and the board declared a $0.43 base plus $0.11 supplemental payout for the fourth quarter.

Fidus Investment Corporation (FDUS), a provider of customized debt and equity financing to lower middle-market U.S. companies, reported net investment income of $21.1 million, or $0.54 a share, for the three months ended September 30, 2026, up 21.7% from $17.4 million, or $0.49 a share, a year earlier.

Adjusted net investment income, which excludes capital-gains incentive-fee accruals, was $21.0 million, or $0.54 a share. Chairman and CEO Edward Ross said the debt portfolio generated that $0.54 of adjusted net investment income, 18% year over year, which he attributed to a 27% increase in interest income, and that the result continued to cover the base dividend.

Total investment income was $45.9 million. Interest income rose 26.9% to $39.1 million from $30.8 million. The company said the $8.7 million increase in total investment income was primarily attributable to an $8.2 million rise in total interest income, including payment-in-kind interest, from higher average debt balances, partly offset by a lower weighted average yield. Fee income rose 125.9% to $3.0 million from $1.3 million on higher prepayment and management-services fees. Dividend income was a $78,000 expense versus $989,000 of income a year earlier. Interest on idle funds was $776,000.

Total expenses, including the base management fee waiver and income tax provision, were $24.8 million, up 24.6% from $19.9 million. The company said the increase was primarily attributable to a $4.0 million rise in interest and financing expenses from higher average borrowings and rates, a $1.2 million net increase in the base management fee, and a $0.7 million increase in the income incentive fee.

Net realized loss on investments, net of tax, was $10.9 million versus a $1.4 million loss a year earlier. Net increase in net assets resulting from operations was $20.3 million, or $0.52 a share.

Originations slowed. Fidus invested $51.8 million in debt and equity securities and received $52.4 million from repayments and realizations, versus $98.0 million invested and $39.2 million received in the second quarter. Ross said originations were roughly equal to repayments and that the portfolio remained diversified and healthy from a credit-quality perspective.

The fair value of the investment portfolio was $1.4 billion as of September 30, 2026, across 99 active companies and eight that had sold their operations. Debt investments of 57 companies bore variable rates and totaled $909.8 million, or 71.3% of the debt portfolio on a fair-value basis. The weighted average yield on debt investments was 12.6%. Average active portfolio-company investment at amortized cost was $14.1 million.

Net asset value was $774.4 million, or $19.47 a share, versus $738.5 million, or $19.46 a share, at June 30. Estimated spillover income was $37.7 million, or $0.95 a share. Cash and cash equivalents were $31.2 million, with $132.8 million unused on the SPV credit facility. SBA debentures outstanding were $289.5 million, June 2029 notes $120.0 million, and March 2030 notes $200.0 million. The weighted average interest rate on total debt was 5.8%. During the quarter the company received about $35.5 million from the at-the-market program, issued $10.5 million of SBA debentures, and redeemed $17.0 million of SBA debentures.

On November 2, the board declared a fourth-quarter dividend of $0.54 a share, comprising a $0.43 base and a $0.11 supplemental, payable December 29 to holders of record on December 18. That compares with $0.50 a share paid in the third quarter, a $0.43 base plus a $0.07 supplemental.

After quarter-end, Fidus issued $8.0 million of SBA debentures on October 23, invested $25.0 million in first-lien debt and $1.0 million in common equity in CasePoint Solutions, received $22.5 million in full payment on Green Cubes Technology first-lien debt, and invested $17.6 million in first-lien debt in SnugZ/USA. Ross said the company intends to continue selecting high-quality companies with defensive characteristics and positive growth outlooks.