Fidus Investment Corporation functions as a Business Development Company (BDC), offering capital solutions for diverse corporate endeavors. These encompass management buyouts, debt ...
Fidus Investment Corporation (NASDAQ: FDUS) is a Business Development Company (BDC) that specializes in providing capital solutions to lower middle-market companies based in the United States. The company was formed in February 2011 and went public in June 2011, with Edward H. Ross as Chairman and CEO since its IPO. ...Fidus Investment Corporation (NASDAQ: FDUS) is a Business Development Company (BDC) that specializes in providing capital solutions to lower middle-market companies based in the United States. The company was formed in February 2011 and went public in June 2011, with Edward H. Ross as Chairman and CEO since its IPO. It operates as an externally managed investment company, with Fidus Capital, LLC (founded in 2005) serving as its investment advisor. Fidus focuses on investing in management buyouts, debt restructurings, ownership transitions, capital reorganizations, strategic acquisitions, and growth initiatives, often using mezzanine financing. Its financial instruments include senior secured loans, unitranche loans, subordinated debt, junior secured loans, second lien loans, senior subordinated notes, preferred equity, and warrants. The company explicitly avoids investing in distressed or turnaround situations. Investment targets are companies in sectors such as aerospace and defense, business services, consumer products and services (including retail, food, and beverage), healthcare products and services, industrial goods and services, information technology services, specialized manufacturing, transportation and logistics, and value-added distribution. Geographically, it focuses exclusively on U.S.-based enterprises. Typically, Fidus commits between $5 million and $15 million per transaction, targeting companies with annual revenues of $10 million to $150 million and EBITDA between $3 million and $20 million, but it can pursue opportunities outside these parameters. It also aims to take minority equity positions and board observation rights. As of the latest data, the company has a market capitalization of approximately $772 million, with a stock price of $20.35, and pays a dividend yield of about 10.9%. Its financials show a return on equity of 10.4% and a price-to-earnings ratio of 9.9. The company is headquartered in Evanston, Illinois, and has between 201 and 500 employees according to some sources, though its SEC filings indicate it has no direct employees (all operations are managed externally). Fidus has invested over $3.5 billion in more than 200 companies since 2007 (including predecessor). The company's investment strategy emphasizes long-term partnerships, rigorous underwriting, and active portfolio monitoring to generate attractive risk-adjusted returns for its shareholders.
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).
$159.2M
+40.1%
+8.1%
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.
$82.4M
+5.2%
+8.5%
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.
+72.6%
-9.7%
-8.2%
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).
+76.1%
+5.2%
+27.0%
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.
+51.7%
-24.9%
+0.4%
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.
$-147.0M
-335.7%
+112.4%
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.
-92.3%
-268.3%
+111.5%
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.
86.8%
+19.9%
+3.7%
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.
1.81x
-16.1%
-16.3%
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: Good day, and welcome to the Fidus Investment Corporation First Quarter 2026 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on a touch-tone phone. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Jody Burfening. Please go ahead.
Jody Burfening: Thank you, Debbie, and good morning, everyone, and thank you for joining us for Fidus Investment Corporation's First Quarter 2026 Earnings Conference Call. With me this morning are Edward H. Ross, Fidus Investment Corporation's chairman and chief executive officer, and Shelby Elizabeth Sherard, chief financial officer. Fidus Investment Corporation issued a press release yesterday afternoon with the company's quarterly financial results. A copy of the press release is available on the Investor Relations page of the company's website at fdus.com. I would also like to call your attention to the customary safe harbor disclosure regarding forward-looking information included on today's call. The conference call today will contain forward-looking statements including statements regarding the goals, strategies, beliefs, future potential, operating results, and cash flows of Fidus Investment Corporation. Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, 05/07/2026, these statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties, and other factors including, but not limited to, the factors set forth in the company's filings with the Securities and Exchange Commission. Fidus undertakes no obligation to update or revise any of these forward-looking statements. With that, I would now like to turn the call over to Edward H. Ross. Good morning, Ed.
Edward H. Ross: Good morning, Jody, and good morning, everyone. Welcome to our first quarter 2026 earnings conference call. In today's call, I will start with a review of our first quarter performance and our portfolio at quarter end, and then share with you our outlook for 2026. Shelby will cover the first quarter financial results and our liquidity position. After we have completed our prepared remarks, we will be happy to take your questions. Fidus' first quarter results were extremely strong from an income statement perspective. With adjusted NII of 62¢ per share, our debt portfolio continued to over-earn our base dividend of $0.43 per share and to support a payout of excess earnings to shareholders. Adjusted NII grew 14.8% to $23.7 million, reflecting a 13.1% increase in interest …
