BCSF exhibits structural margin volatility, with gross margins fluctuating between 52.4% and 72.5% over the last several quarters, while operating margins have compressed to 46.0% as of 2026Q1.
| Sales/Revenue | 196.66M | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 120.28M | 183.89M | 138.19M | 137.99M | 116.51M | 124.06M | 13.91M | 94.71M | 73.08M | 20.8M | 1.92M |
| Gross Margin % | 61.16% | 76.88% | 64.92% | 63.3% | 69.01% | 70.73% | 18.01% | 58.81% | 99.3% | 84.85% | 98.61% |
| Gross Profit Growth % | - | 33.07% | 0.14% | 18.44% | -6.09% | 791.88% | -85.31% | 29.6% | 251.42% | 981.96% | - |
| Operating Expenses | 22.78M | 2.99M | 14.3M | 11.26M | 10.19M | 4.12M | 5.4M | -3.37M | 19.35M | 3.07M | 1.31M |
| OpEx % of Revenue | - | 1.25% | 6.72% | 5.16% | 6.04% | 2.35% | 6.99% | -2.09% | 26.3% | 12.52% | 67.37% |
| Selling, General & Admin | 11.31M | 0 | 14.3M | 11.26M | 9.44M | 8.62M | 8.75M | 7.62M | 3.82M | 2.74M | 602.54K |
| SG&A % of Revenue | - | - | 6.72% | 5.16% | 5.59% | 4.91% | 11.33% | 4.73% | 5.19% | 11.17% | 30.91% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 97.5M | 180.9M | 123.89M | 126.73M | 106.32M | 119.94M | 8.51M | 98.08M | 69.26M | 18.15M | 608.98K |
| Operating Margin % | 49.58% | 75.63% | 58.2% | 58.13% | 62.97% | 68.38% | 11.02% | 60.91% | 94.11% | 74.07% | 31.24% |
| Operating Income Growth % | - | 46.01% | -2.24% | 19.2% | -11.36% | 1309.41% | -91.32% | 41.61% | 281.52% | 2881.07% | - |
| EBITDA | 97.43M | 183.09M | 123.89M | 126.73M | 106.32M | 119.94M | 8.51M | 98.08M | 50.66M | 23.43M | 608.98K |
| EBITDA Margin % | 49.54% | 76.55% | 58.2% | 58.13% | 62.97% | 68.38% | 11.02% | 60.91% | 68.83% | 95.62% | 31.24% |
| EBITDA Growth % | -17% | 47.78% | -2.24% | 19.2% | -11.36% | 1309.41% | -91.32% | 93.63% | 116.16% | 3748.27% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.28M | 0 |
| EBIT | 97.43M | 183.09M | 123.89M | 126.73M | 106.32M | 119.94M | 8.51M | 98.08M | 50.66M | 22.91M | 608.98K |
| Net Interest Income | 145.25M | 192.66M | 147.55M | 148.54M | 113.95M | 116M | 110.89M | 113.59M | -24.01M | -3.94M | 841.53K |
| Interest Income | 227.18M | 273.24M | 222.24M | 228.55M | 166.27M | 167.34M | 174.2M | 179.92M | 0 | -329.73K | 868.55K |
| Interest Expense | 81.93M | 80.58M | 74.69M | 80.01M | 52.32M | 51.34M | 63.31M | 66.33M | 24.01M | 3.62M | 27.02K |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 77.18M | 102.51M | 123.89M | 126.73M | 106.32M | 119.94M | 8.51M | 98.08M | 26.64M | 19.3M | 608.98K |
| Pretax Margin % | 39.25% | 42.86% | 58.2% | 58.13% | 62.97% | 68.38% | 11.02% | 60.91% | 36.21% | 78.75% | 31.24% |
| Income Tax | 3.58M | 3.75M | 4.47M | 3.36M | 837K | 134K | 232K | 0 | 0 | 4.88K | 0 |
| Effective Tax Rate % | 4.64% | 3.66% | 3.61% | 2.65% | 0.79% | 0.11% | 2.73% | 0% | 0% | 0.03% | 0% |
| Net Income | 73.6M | 98.76M | 119.42M | 123.38M | 105.48M | 119.81M | 8.28M | 98.08M | 26.64M | 19.3M | 608.98K |
| Net Margin % | 37.42% | 41.29% | 56.1% | 56.59% | 62.48% | 68.3% | 10.72% | 60.91% | 36.21% | 78.75% | 31.24% |
| Net Income Growth % | -34.79% | -17.3% | -3.21% | 16.97% | -11.96% | 1347.29% | -91.56% | 268.12% | 38.06% | 3069.26% | - |
| Net Income (Continuing) | 73.6M | 98.76M | 119.42M | 123.38M | 105.48M | 119.81M | 8.28M | 98.08M | 26.64M | 19.3M | 608.98K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.13 | 1.52 | 1.85 | 1.91 | 1.63 | 1.86 | 0.14 | 1.87 | 0.68 | 0.98 | 0.03 |
| EPS Growth % | -36.54% | -17.84% | -3.14% | 17.18% | -12.37% | 1228.57% | -92.51% | 175% | -30.61% | 3092.18% | - |
| EPS (Basic) | - | 1.52 | 1.85 | 1.91 | 1.63 | 1.86 | 0.14 | 1.87 | 0.69 | 0.98 | 0.03 |
| Diluted Shares Outstanding | 64.87M | 64.82M | 64.56M | 64.56M | 64.56M | 64.56M | 58.67M | 52.33M | 39.11M | 19.82M | 19.82M |
| Basic Shares Outstanding | 64.87M | 64.82M | 64.56M | 64.56M | 64.56M | 64.56M | 58.67M | 52.33M | 39.11M | 19.82M | 19.82M |
| Dividend Payout Ratio | - | 147.65% | 95.69% | 80.59% | 83.24% | 73.29% | 1041.97% | 82.83% | 153.77% | 40.19% | - |
High leverage and non-accruals
As reported in the quarterly income statements, BCSF's gross margin fluctuated significantly, reaching a low of 52.4% in 2025Q3 before recovering to 72.5% in 2026Q1, suggesting that the company's interest spread is highly sensitive to portfolio composition and the timing of non-accrual events.
The wide variance in gross margins indicates that BCSF's profitability is not as stable as its peers, likely due to the impact of non-accrual loans and the lumpy nature of fee income. Investors should monitor whether the recent margin expansion is sustainable or merely a temporary recovery from previous credit-related headwinds.
Based on the provided financial data, BCSF experienced a dramatic 89.5% decline in EPS in 2026Q1 compared to previous periods, highlighting a disconnect between top-line revenue stability and the bottom-line net income, which appears heavily influenced by non-operating items or credit-related valuation adjustments.
The sharp drop in net income despite relatively consistent revenue suggests that the company's earnings quality is subject to significant volatility from portfolio mark-to-market adjustments. This pattern warrants further investigation into whether the current net income figures accurately reflect the long-term cash-generating capacity of the underlying loan book.
According to the income statement history, BCSF's operating margin has consistently trailed its gross margin, with the 2026Q1 operating margin of 46.0% reflecting a notable compression compared to the 62.7% observed in 2024Q1, indicating that administrative and management expenses are consuming a larger share of gross profit.
The inability to maintain operating margins during periods of revenue fluctuation suggests that the company lacks the necessary scale to absorb fixed costs efficiently. This trend may indicate that management fees and other overhead costs are becoming a structural drag on the company's ability to deliver consistent shareholder returns.
As indicated by the recent financial filings, the significant gap between operating and net margins, combined with a debt-to-equity ratio of 1.32x, suggests that BCSF may be operating at the upper limit of its risk tolerance, potentially threatening the long-term sustainability of its current dividend payout.
Short-sellers would likely focus on the high leverage and the potential for further margin compression if the portfolio experiences a wave of credit defaults. The reliance on complex, non-observable Level 3 asset valuations further complicates the assessment of whether the company's net asset value is truly protected against a downturn.
Quick answers to the most common questions about buying BCSF stock.
Bain Capital Specialty Finance, Inc. (BCSF) is profitable, generating $98.8M in net income for the fiscal year ending 2025 with a net profit margin of 41.3%.
Bain Capital Specialty Finance, Inc. (BCSF) reported an operating income of $180.9M, resulting in an operating profit margin of 75.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Bain Capital Specialty Finance, Inc. (BCSF) generated $183.9M in gross profit for the year, representing a gross profit margin of 76.9%. This demonstrates the company's core pricing power and production efficiency.