MidCap Financial Investment Corporation(NASDAQ) MFIC

MidCap helps medium-sized American businesses get the money they need to grow. It lends funds to companies that might not get traditional bank loans. These businesses use the money to buy other companies or pay off debt.

What Does MidCap Offer?

• First Lien Secured Loans: Debt that gives the company the first right to a borrower's assets; represents 95% of the portfolio as of December 31, 2025.
• Floating Rate Debt: Loans with interest rates that move up or down based on market trends; covers 100% of the direct origination portfolio.
• Equity Interests: Small ownership stakes in businesses through common or preferred stock; makes up 5% of the portfolio.

Growth and Recent Mergers

• Completed the acquisition of Apollo Senior Floating Rate Fund and Apollo Tactical Income Fund in July 2024.
• Entered a fee offset agreement with Apollo Investment Management to reduce management costs in 2019.
• Renamed the business to MidCap Financial Investment Corporation in 2022 to align with the MidCap brand.

Protecting the Principal

The company focuses on senior secured loans, meaning it has a high priority for repayment if a business fails. Because nearly all its loans have floating interest rates, its income can rise when general interest rates go up.

The Latest Financial Facts

• Revenue grew to $65 million in Q4 2025, up 12.9% from $57.6 million in Q4 2024.
• Operating income reached $21.9 million in Q4 2025, down 9% year-over-year.
• Net income fell to negative $12.7 million in Q4 2025, a shift from a $24.1 million profit in Q4 2024 that worsened the bottom line.
• Free cash flow was $27.2 million in Q4 2025, a 50.4% decrease from the previous year.

Evolution of the Business

MidCap has shifted its strategy toward safer, first-priority loans for middle-market companies. By merging with other funds and moving under the MidCap name, it has consolidated its position in the private lending market.