Bain Capital Specialty Finance, Inc. functions as a business development company (BDC) whose primary focus is providing direct debt solutions to companies ...
Bain Capital Specialty Finance, Inc. (BCSF) is an externally managed specialty finance company that focuses on lending to middle-market companies. As a business development company (BDC), it provides direct debt solutions to companies in the middle market segment, leveraging the expertise of Bain Capital Credit's Private Credit Group. With over ...Bain Capital Specialty Finance, Inc. (BCSF) is an externally managed specialty finance company that focuses on lending to middle-market companies. As a business development company (BDC), it provides direct debt solutions to companies in the middle market segment, leveraging the expertise of Bain Capital Credit's Private Credit Group. With over 20 dedicated professionals worldwide, BCSF remains highly selective in credit approval. The company's investment mandate is broad, covering a spectrum of debt instruments including first-lien, stretch senior, and second-lien facilities, unitranche loans, as well as mezzanine debt and other junior securities. Additionally, BCSF engages in secondary acquisitions of corporate debt portfolios. Target companies typically generate annual EBITDA between $10 million and $150 million. The company was formed on October 5, 2015, and commenced operations on October 13, 2015. BCSF is externally managed and has elected to be regulated as a BDC under the Investment Company Act of 1940. As of the latest data, the company has a market capitalization of approximately $850 million and a share price of $13.11. It has an enterprise value of about $2.29 billion and a dividend yield of 14.4%. The company's financial performance shows a return on equity of 6.6% and a net profit margin of 37.4%. The CEO is Michael A. Ewald, and the company is headquartered in Boston, Massachusetts. BCSF is listed on the New York Stock Exchange. Founded by Bain Capital, which was established in 1984, BCSF benefits from Bain Capital's extensive experience in credit markets. The company aims to provide attractive risk-adjusted returns to its shareholders through a diversified portfolio of middle-market loans, while emphasizing capital preservation and income generation. With a focus on selectivity, BCSF leverages the deep industry knowledge and network of Bain Capital to identify high-quality investment opportunities, contributing to its strong credit performance and shareholder value.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$239.2M
+12.4%
-15.4%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$98.8M
-17.3%
+314.6%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+76.9%
+18.4%
+8.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+75.6%
+29.9%
+75.6%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+41.3%
-26.4%
+390.1%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$29.5M
-73.8%
-55.8%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+12.3%
-76.7%
-47.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
131.6%
+7.9%
+4.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.35x
-82.0%
+1767.4%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome, everyone, joining today's Bain Capital Specialty Finance Second Quarter ended June 30, 2026, Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. It is now my pleasure to turn the meeting over to Katherine Schneider, Investor Relations. Please go ahead.
Katherine Schneider: Thanks, Nicky. Good morning, and welcome, everyone, to the Bain Capital Specialty Finance Second Quarter ended June 30, 2026, Conference Call. Yesterday, after market close, we issued our earnings press release and investor presentation of our quarterly results, a copy of which is available on Bain Capital Specialty Finance's Investor Relations website. Following our remarks today, we will hold a question-and-answer session for analysts and investors. This call is being webcast, and a replay will be available on our website. This call and the webcast are property of Bain Capital Specialty Finance and any unauthorized broadcast in any form is strictly prohibited. Any forward-looking statements made today do not guarantee future performance, and actual results may differ materially. These statements are based on current management expectations, which include risks and uncertainties, which are identified in the Risk Factors section of our Form 10-Q that could cause actual results to differ materially from those indicated. Certain information contained in the presentation has been obtained from published and nonpublished sources and are prepared by third parties and in certain cases, has not been updated through the date hereof. Such information has not been independently verified by Bain Capital Credit, and Bain Capital Credit does not assume responsibility for the accuracy of such information or updating the presentation based on facts learn following its issuance. Bain Capital Specialty Finance assumes no obligation to update any forward-looking statements at this time unless required to do so by law. Lastly, past performance does not guarantee future results. So with that, I'd like to turn the call over to our CEO, Michael Ewald.
Michael Ewald: Thanks, Katherine, and good morning, and thanks to all of you for joining us here this morning on our earnings call. I'm also joined by Mike Boyle, our President; and our Chief Financial Officer, Amit Joshi. In terms of agenda for the call, similar to past quarters, I'll start with an overview of our second quarter results and then discuss the broader market environment and our positioning. Thereafter, Mike and Amit will discuss our investment portfolio and financial results in greater detail. And we'll leave some time, as always, for questions at the end. So beginning with our financial results, we reported solid financial results for the second quarter last night. Net investment income per share was $0.44, representing an annualized yield of 10.5% on equity, covering our base dividend of $0.42 per share by 105%. Q2 earnings per share were $0.22, representing an …
