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PhenixFIN Corporation Announces Fiscal Third Quarter 2025 Financial Results

1. PFX reported $6.2M total investment income in Q3. 2. Net asset value per share decreased to $78.20. 3. The company recorded a net realized loss of $12M. 4. Borrowing capacity revised; credit facility extended to 2030. 5. Management emphasizes strong origination and investment opportunities.

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$50.4808/07 11:39 PM EDTLatest Updated
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FAQ

Why Bearish?

The significant net realized loss of $12 million suggests operational challenges, impacting shareholder confidence. Historical examples show that similar losses often results in stock price declines for development companies.

How important is it?

The financial results directly inform investors about PFX's operational viability, which influences investment strategies and decision-making.

Why Short Term?

Given the immediate impact of quarterly earnings on stock prices, the negative sentiment is expected to affect PFX in the short term.

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PFXNZNSEC
August 06, 2025 16:16 ET  | Source: PhenixFIN Corporation NEW YORK, Aug. 06, 2025 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal third quarter for its year ending September 30, 2025. Highlights: Third quarter total investment income of $6.2 million; net investment income of $1.2 millionNet asset value (NAV) of $157 million, or $78.20 per share as of June 30, 2025On April 17, 2025, amended the credit facility to $100mm with a $50mm accordion, reduction in pricing to SOFR+2.50% and extended maturity to April 17, 2030Weighted average yield was 12.66% on debt and other income producing investments “We continue to see solid performance from the portfolio despite a more volatile macro environment.” commented David Lorber, Chief Executive Officer, “We had a strong origination quarter as we continue to source attractive investment opportunities, we also had multiple portfolio companies repay and monetized one of our last remaining legacy investments.” Selected Third Quarter 2025 Financial Results for the Quarter Ended June 30, 2025: Total investment income was $6.2 million of which $5.5 million was attributable to portfolio interest and dividend income, and $0.7 million was attributable to fee and other income. Total net expenses were $5.0 million and total net investment income was $1.2 million. The Company recorded a net realized loss of $12.0 million and a net unrealized gain of $9.3 million. Portfolio and Investment Activities for the Quarter Ended June 30, 2025: The fair value of the Company's investment portfolio totaled $294.4 million and consisted of 34 portfolio companies. Liquidity and Capital Resources: As of June 30, 2025, the Company had $7.3 million in cash and cash equivalents, $59.2 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $87.0 million outstanding under the Credit Facility. ABOUT PHENIXFIN CORPORATION PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.  SAFE HARBOR STATEMENT AND OTHER DISCLOSURES This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to execute on its strategic initiatives, deliver value to shareholders, increase investment activity, increase net investment income, reduce interest expenses, implement its investment strategy and achieve its investment objective, source and capitalize on investment opportunities, grow its net asset value per share and perform well in the prevailing market environment, the ability of our portfolio companies, including National Security Group, Inc. to perform well and generate income and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release. Past performance is not a guarantee of future results. The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporation’s common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective.  For PhenixFIN investor relations, please call 212-859-0390. For media inquiries, please contact info@phenixfc.com. PHENIXFIN CORPORATIONConsolidated Statements of Assets and Liabilities   June 30,2025(Unaudited)  September 30,2024 Assets:      Investments at fair value      Non-controlled, non-affiliated investments (amortized cost of $158,364,341 and $143,179,354 respectively) $159,391,606  $142,233,426 Affiliated investments (amortized cost of $10,008,289 and $20,564,242, respectively)  11,592,334   14,750,785 Controlled investments (amortized cost of $150,432,462 and $97,016,429, respectively)  123,454,891   70,931,647 Total Investments at fair value  294,438,831   227,915,858 Cash and cash equivalents  7,270,519   67,571,559 Receivables:        Interest receivable  1,135,646   1,313,598 Other receivable  16,640   65,838 Dividends receivable  -   23,468 Deferred financing costs  1,458,777   760,680 Due from Affiliate  1,101,599   90,500 Deferred tax asset, net  953,505   887,099 Other assets  298,155   1,066,323 Prepaid share repurchase  101,115   101,115 Receivable for investments sold  35,445   2,955,775 Total Assets $306,810,232  $302,751,813          Liabilities:        Credit facility and notes payable (net of debt issuance costs of $1,234,485 and $1,510,815, respectively) $144,918,632  $135,723,636 Accounts payable and accrued expenses  3,300,818   5,570,150 Interest and fees payable  1,213,024   768,043 Other liabilities  190,743   294,063 Deferred tax liability, net  340,531   - Due to Affiliate  152,365   88,148 Total Liabilities  150,116,113   142,444,040          Commitments and Contingencies (see Note 8)                 Net Assets:        Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,003,869 and 2,019,778 common shares outstanding, respectively  2,004   2,020 Capital in excess of par value  704,113,672   704,909,588 Total distributable earnings (loss)  (547,421,557)  (544,603,835)Total Net Assets  156,694,119   160,307,773 Total Liabilities and Net Assets $306,810,232  $302,751,813          Net Asset Value Per Common Share $78.20  $79.37  PHENIXFIN CORPORATIONConsolidated Statements of Operations(Unaudited)   For the Three Months EndedJune 30,  For the Nine Months EndedJune 30,   2025  2024  2025  2024 Interest Income:            Interest from investments            Non-controlled, non-affiliated investments:            Cash $3,758,928  $2,971,965  $9,708,993  $7,605,006 Payment in-kind  213,590   231,113   832,055   412,317 Affiliated investments:                Cash  -   10,682   -   742,858 Controlled investments:                Cash  607,929   650,244   1,822,914   1,230,510 Payment in-kind  -   334,398   -   603,229 Total interest income  4,580,447   4,198,402   12,363,962   10,593,920 Dividend income                Non-controlled, non-affiliated investments  247,322   531,151   1,221,852   1,963,744 Affiliated investments  -   -   254,231   - Controlled investments  617,056   982,903   3,597,022   3,216,298 Total dividend income  864,378   1,514,054   5,073,105   5,180,042 Interest from cash and cash equivalents  27,804   147,127   132,557   387,501 Fee income (see Note 9)  684,330   375,363   822,841   453,988 Other income  -   -   -   22 Total Investment Income  6,156,959   6,234,946   18,392,465   16,615,473                  Expenses:                Interest and financing expenses  2,660,472   1,721,767   7,785,246   4,831,180 Salaries and benefits  1,237,767   1,514,872   3,451,438   4,464,372 Professional fees, net  304,540   432,416   1,300,518   1,133,120 General and administrative expenses  398,494   226,903   928,026   862,740 Directors fees  204,000   187,500   612,000   562,500 Administrator expenses (see Note 6)  106,740   75,351   303,924   210,753 Insurance expenses  87,460   95,983   262,379   290,433 Total expenses  4,999,473   4,254,792   14,643,531   12,355,098 Net Investment Income  1,157,486   1,980,154   3,748,934   4,260,375                  Realized and unrealized gains (losses) on investments                Net realized gains (losses):                Non-controlled, non-affiliated investments  (1,665,458)  155,419   (1,561,801)  585,977 Affiliated investments  (10,320,353)  -   (10,320,353)  (1,991,456)Controlled investments  -   8,542,831   -   8,542,831 Total net realized gains (losses)  (11,985,811)  8,698,250   (11,882,154)  7,137,352 Net change in unrealized gains (losses):                Non-controlled, non-affiliated investments  (18,517)  1,823,185   1,973,193   4,984,195 Affiliated investments  8,379,055   73,960   7,397,502   4,787,878 Controlled investments  914,813   (9,966,938)  (892,789)  (8,655,048)Total net change in unrealized gains (losses)  9,275,351   (8,069,793)  8,477,906   1,117,025 Deferred tax benefit (expense)  55,511   -   (274,125)  - Total realized and unrealized gains (losses)  (2,654,949)  628,457   (3,678,373)  8,254,377                  Net Increase (Decrease) in Net Assets Resulting from Operations $(1,497,463) $2,608,611  $70,561  $12,514,752 Weighted average basic and diluted earnings per common share $(0.74) $1.29  $0.03  $6.11 Weighted average common shares outstanding - basic and diluted (see Note 11)  2,017,330   2,019,786   2,018,962   2,047,127 

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