The fund maintains a strong 72.57% net margin despite experiencing a notable 18.64% year-over-year revenue decline.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 |
|---|
| Net Interest Income | 189.18M | 207.86M | 196.56M | 184.64M |
| NII Growth % | -8.99% | 5.75% | 6.46% | - |
| Net Interest Margin % | 8.76% | 8.93% | 9.42% | 9.17% |
| Interest Income | 231.94M | 255.3M | 240.48M | 220.44M |
| Interest Expense | 42.76M | 47.44M | 43.92M | 35.8M |
| Loan Loss Provision | 0 | 0 | 0 | 0 |
| Non-Interest Income | -25.59M | -1.68M | 66.71M | -319.14M |
| Non-Interest Income % | -12.4% | -0.66% | 21.72% | 323.32% |
| Total Revenue | 206.35M | 253.62M | 307.19M | -98.71M |
| Revenue Growth % | -18.64% | -17.44% | 411.21% | - |
| Non-Interest Expense | 9.84M | 9.67M | 15.84M | 17.08M |
| Efficiency Ratio | 4.77% | 3.81% | 5.16% | -17.3% |
| Operating Income | 153.75M | 196.51M | 247.42M | -151.58M |
| Operating Margin % | 74.51% | 77.48% | 80.54% | 153.57% |
| Operating Income Growth % | -21.76% | -20.58% | 263.23% | - |
| Pretax Income | 153.75M | 196.51M | 247.42M | -151.58M |
| Pretax Margin % | 74.51% | 77.48% | 80.54% | 153.57% |
| Income Tax | 4.01M | 8.44M | 4.48M | 4.11M |
| Effective Tax Rate % | 2.61% | 4.3% | 1.81% | -2.71% |
| Net Income | 149.75M | 188.07M | 242.94M | -155.69M |
| Net Margin % | 72.57% | 74.15% | 79.08% | 157.73% |
| Net Income Growth % | -20.38% | -22.59% | 256.04% | - |
| Net Income (Continuing) | 149.75M | 188.07M | 242.94M | -155.69M |
| EPS (Diluted) | 0.76 | 0.95 | 1.23 | -0.79 |
| EPS Growth % | -20% | -22.76% | 255.7% | - |
| EPS (Basic) | 0.76 | 0.95 | 1.23 | -0.79 |
| Diluted Shares Outstanding | 197.03M | 197.51M | 197.51M | 197.08M |
Deployment and reinvestment velocity
As reported in recent financial disclosures, FSCO experienced a significant 18.64% year-over-year revenue decline, which suggests a potential reduction in the fund's earning power or a strategic pivot toward lower-yielding, defensive assets that may limit the fund's ability to capture traditional credit market upside.
The double-digit revenue contraction warrants further investigation into whether this reflects a deliberate defensive posture or an inability to source attractive event-driven credit opportunities. Investors should monitor whether this trend persists as a structural shift or if it represents a temporary pause in capital deployment.
Based on the fund's reported figures, FSCO maintains a strong net margin of 72.57%, which appears consistent with the operational profile of a closed-end investment vehicle where the primary cost of goods sold is the cost of capital rather than traditional operational overhead expenses.
The high operating margin of 74.51% suggests that the fund retains significant efficiency in converting investment income into net earnings. However, this profitability is highly sensitive to the performance of underlying credit assets and potential fluctuations in borrowing costs for the fund's own leverage.
According to recent portfolio data, the fund holds $398 million in cash and equivalents, which represents significant dry powder but simultaneously acts as a drag on current returns until management successfully deploys these assets into higher-yielding credit instruments within the current interest rate environment.
The accumulation of cash suggests a cautious approach to market entry, yet it creates an immediate headwind for yield-focused investors. Management's ability to rotate this liquidity into accretive positions will be the primary determinant of whether this cash drag is a temporary tactical decision or a long-term performance inhibitor.
Financial statements indicate a low debt-to-equity ratio of 0.20%, which suggests a conservative approach to balance sheet risk that may be limiting the fund's capacity to enhance returns through leverage in a manner consistent with its opportunistic, event-driven mandate.
While this low leverage profile provides a buffer against market volatility, it may also indicate an under-utilization of the fund's structural capacity to drive returns. Analysts should consider whether this conservative stance is a response to limited deal flow or a strategic decision to prioritize capital preservation over aggressive growth.
Quick answers to the most common questions about buying FSCO stock.
FS Credit Opportunities Corp. (FSCO) is profitable, generating $149.7M in net income for the fiscal year ending 2025 with a net profit margin of 72.6%.
FS Credit Opportunities Corp. (FSCO) reported an operating income of $153.8M, resulting in an operating profit margin of 74.5%. This margin reflects the operational efficiency of the business before interest and taxes.
FS Credit Opportunities Corp. (FSCO) generated $163.6M in gross profit for the year, representing a gross profit margin of 79.3%. This demonstrates the company's core pricing power and production efficiency.