Net interest income has contracted by over 70% from $238M in Q1 2024 to $65M in Q2 2026, while the net interest margin has compressed to 0.5%, indicating severe pressure on core spread earnings.
FS KKR Capital Corp. (FSK) annual income statement — 18-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 |
|---|
| Net Interest Income | 646M | 1.02B | 937M | 1.04B | 918M | 572M | 352M | 506M | 294M | 301M | 314M | 352.45M | 353.94M | 376.75M | 257.65M | 97.44M | 25.21M | 4.42M | 0 |
| NII Growth % | -92.7% | 8.75% | -9.56% | 12.85% | 60.49% | 62.5% | -30.43% | 72.11% | -2.33% | -4.14% | -10.91% | -0.42% | -6.05% | 46.23% | 164.43% | 286.56% | 470.27% | - | - |
| Net Interest Margin % | 5.52% | 7.42% | 6.59% | 6.7% | 5.69% | 3.32% | 4.86% | 6.16% | 3.82% | 7.33% | 7.64% | 8.5% | 8.13% | 8.48% | 5.93% | 4.54% | 3.22% | 4.02% | 0% |
| Interest Income | 1.07B | 1.48B | 1.38B | 1.49B | 1.27B | 794M | 510M | 670M | 372M | 375M | 384M | 423.82M | 418.75M | 427.51M | 287.88M | 108.77M | 29.09M | 4.42M | 25K |
| Interest Expense | 420M | 464M | 446M | 451M | 351M | 222M | 158M | 164M | 78M | 74M | 70M | 71.36M | 64.8M | 50.76M | 30.23M | 11.33M | 3.88M | 0 | 0 |
| Loan Loss Provision | -109M | -108M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | -168M | -312M | -273M | -257M | -806M | 971M | -713M | -227M | 297M | -101M | 3M | -291.09M | -134.43M | -88.75M | 90.44M | -34.91M | 7.1M | 0 | -25K |
| Non-Interest Income % | -35.15% | -44.13% | -41.11% | -32.99% | -719.64% | 62.93% | 197.51% | -81.36% | 50.25% | -50.5% | 0.95% | -474.34% | -61.24% | -30.82% | 25.98% | -55.83% | 21.97% | 0% | 100% |
| Total Net Revenue | 478M | 707M | 664M | 779M | 112M | 1.54B | -361M | 279M | 591M | 200M | 317M | 61.37M | 219.52M | 287.99M | 348.08M | 62.53M | 32.3M | 4.42M | -25K |
| Revenue Growth % | 32.04% | 6.48% | -14.76% | 595.54% | -92.74% | 527.42% | -229.39% | -52.79% | 195.5% | -36.91% | 416.56% | -72.04% | -23.78% | -17.26% | 456.68% | 93.57% | 630.81% | 17780% | - |
| Non-Interest Expense | 580M | 235M | 56M | 58M | -4M | 16M | 34M | 26M | 15M | 13M | 17M | 16.93M | 19.34M | 16.41M | 17.39M | 9.06M | 4.04M | -7.04M | -580K |
| Efficiency Ratio | 121.34% | 33.24% | 8.43% | 7.45% | -3.57% | 1.04% | -9.42% | 9.32% | 2.54% | 6.5% | 5.36% | 27.58% | 8.81% | 5.7% | 4.99% | 14.49% | 12.5% | -159.19% | 2320% |
| Operating Income | 7M | 580M | 608M | 721M | 116M | 1.53B | -395M | 253M | 576M | 187M | 300M | 44.44M | 200.18M | 271.58M | 330.7M | 53.47M | 28.26M | 11.46M | 0 |
| Operating Margin % | 1.46% | 82.04% | 91.57% | 92.55% | 103.57% | 98.96% | 109.42% | 90.68% | 97.46% | 93.5% | 94.64% | 72.42% | 91.19% | 94.3% | 95.01% | 85.51% | 87.5% | 259.19% | 0% |
| Operating Income Growth % | - | -4.61% | -15.67% | 521.55% | -92.4% | 486.58% | -256.13% | -56.08% | 208.02% | -37.67% | 575.05% | -77.8% | -26.29% | -17.88% | 518.48% | 89.18% | 146.72% | - | - |
| Pretax Income | -513M | 23M | 608M | 721M | 116M | 1.53B | -395M | 253M | 576M | 187M | 300M | 44.44M | 200.18M | 271.58M | 330.7M | 53.47M | 28.26M | 11.46M | -580K |
| Pretax Margin % | -107.32% | 3.25% | 91.57% | 92.55% | 103.57% | 98.96% | 109.42% | 90.68% | 97.46% | 93.5% | 94.64% | 72.42% | 91.19% | 94.3% | 95.01% | 85.51% | 87.5% | 259.19% | 2320% |
| Income Tax | 3M | 12M | 23M | 25M | 24M | 12M | 10M | 7M | 7M | 5M | 6M | 6.06M | 5.4M | 5.74M | 500K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -0.58% | 52.17% | 3.78% | 3.47% | 20.69% | 0.79% | -2.53% | 2.77% | 1.22% | 2.67% | 2% | 13.63% | 2.7% | 2.11% | 0.15% | 0% | 0% | 0% | 0% |
| Net Income | -516M | 11M | 585M | 696M | 92M | 1.51B | -405M | 246M | 569M | 182M | 294M | 38.38M | 194.78M | 265.84M | 330.2M | 53.47M | 28.26M | 11.46M | -580K |
| Net Margin % | -107.95% | 1.56% | 88.1% | 89.35% | 82.14% | 98.19% | 112.19% | 88.17% | 96.28% | 91% | 92.74% | 62.55% | 88.73% | 92.31% | 94.86% | 85.51% | 87.5% | 259.19% | 2320% |
| Net Income Growth % | -289.71% | -98.12% | -15.95% | 656.52% | -93.93% | 474.07% | -264.63% | -56.77% | 212.64% | -38.1% | 665.92% | -80.29% | -26.73% | -19.49% | 517.54% | 89.18% | 146.72% | 2075.17% | - |
| Net Income (Continuing) | -516M | 11M | 585M | 696M | 92M | 1.51B | -405M | 246M | 569M | 182M | 294M | 38.38M | 194.78M | 265.84M | 330.2M | 53.47M | 28.26M | 11.46M | -580K |
| EPS (Diluted) | -1.82 | 0.04 | 2.09 | 2.48 | 0.32 | 7.16 | -3.26 | 1.90 | 9.05 | 2.96 | 4.84 | 0.64 | 3.12 | 4.08 | 5.07 | 0.82 | 0.43 | 0.18 | -0.01 |
| EPS Growth % | -292.71% | -98.12% | -15.73% | 675% | -95.53% | 319.63% | -271.58% | -79.01% | 205.74% | -38.84% | 656.25% | -79.49% | -23.53% | -19.53% | 518.29% | 90.7% | 138.89% | - | - |
| EPS (Basic) | - | 0.04 | 2.09 | 2.48 | 0.32 | 7.16 | -3.26 | 1.90 | 9.05 | 2.96 | 4.84 | 0.64 | 3.12 | 4.08 | 5.07 | 0.82 | 0.43 | 0.18 | -0.01 |
| Diluted Shares Outstanding | 284.23M | 280.07M | 280.07M | 280.28M | 283.51M | 211.67M | 124.29M | 129.74M | 62.84M | 61.32M | 60.86M | 60.49M | 62.2M | 65.09M | 65.09M | 65.09M | 65.09M | 65.09M | 100.18M |
Quick answers to the most common questions about buying FSK stock.
For fiscal year 2025, FS KKR Capital Corp. (FSK) reported total revenue of $707.0M.
FS KKR Capital Corp. (FSK) is profitable, generating $11.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.6%.
FS KKR Capital Corp. (FSK) reported an operating income of $580.0M, resulting in an operating profit margin of 82.0%. This margin reflects the operational efficiency of the business before interest and taxes.
FS KKR Capital Corp. (FSK) generated $815.0M in gross profit for the year, representing a gross profit margin of 115.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Legacy asset credit deterioration
Metrics are mathematically derived from official filings.
NII Contraction Amid Portfolio Shift
Net interest income has contracted sharply, falling from $238 million in early 2024 to $65 million in Q2 2026, a decline of over 70% that suggests a significant reduction in the earning asset base or a shift toward lower-yielding instruments.
The persistent quarter-over-quarter decline in NII, even as the Federal Reserve's rate cycle has evolved, indicates the contraction is driven by volume and mix rather than just rate dynamics. This trend aligns with management's reported de-risking and shift toward first-lien senior secured loans, which typically carry lower yields. The trajectory implies that the portfolio's core income generation capacity is being deliberately reduced to improve credit quality, which may temper near-term earnings power.
Net Margin Volatility Signals Valuation Stress
The net interest margin has compressed from a stable 1.6% range in 2024 to a volatile 0.5%-3.5% band in recent quarters, with the Q2 2026 NIM of 0.5% indicating severe pressure on the spread between asset yields and funding costs.
The erratic NIM movement, particularly the spike to 3.5% in Q4 2025 followed by a collapse, suggests significant non-recurring items or mark-to-market adjustments are distorting the core spread. This volatility is atypical for a BDC and warrants investigation into whether it reflects realized losses on lower-yielding assets or a strategic portfolio turnover. The current low NIM level appears unsustainable and points to a period of earnings reset as the portfolio is repositioned.
Provisioning Resumes After Lull
After five consecutive quarters with zero provision expense, FSK recorded provisions of $29 million and $34 million in Q1 and Q4 2025, respectively, signaling a potential turn in the credit cycle for its portfolio.
The resumption of provisioning after a long hiatus suggests management is now recognizing deteriorating credit conditions within the loan book, likely tied to the 'higher-for-longer' interest rate environment stressing borrower cash flows. This shift from a benign to an active provisioning stance is a critical inflection point for earnings quality. Investors should monitor whether this marks the beginning of a sustained credit cycle or a one-time adjustment for specific legacy assets.
Fee Income Dominance Masks Core Instability
Non-interest income represented 65.6% of total revenue in Q2 2026, a dramatic shift from negative contributions in prior quarters, indicating that realized gains or other transactional fees are now the primary earnings driver.
The extreme volatility in non-interest income, swinging from large negatives to a dominant positive, suggests these are largely mark-to-market adjustments or one-time realizations rather than recurring fee streams. This composition makes the income statement highly unpredictable and obscures the underlying performance of the core lending business. The reliance on such volatile components for the majority of revenue represents a significant quality-of-earnings concern.
Q4 2025 Marks a Structural Earnings Reset
The fourth quarter of 2025 appears to be a pivotal inflection point, characterized by a massive $483 million NII figure, a $389 million non-interest loss, and the resumption of provisioning, collectively suggesting a major portfolio revaluation or restructuring event.
This quarter's anomalous data, with NII more than doubling while total revenue collapsed, indicates a significant non-cash event, likely the crystallization of unrealized losses or a large-scale asset disposition. The simultaneous return to provisioning confirms a reassessment of credit risk. This event likely represents the most significant portfolio cleanup in the recent period and sets a new, lower baseline for future earnings generation.
Earnings Quality Challenged by Accounting Opacity
The reported net loss of $34 million in Q2 2026, despite a positive operational result, highlights how heavily headline earnings are distorted by non-cash mark-to-market adjustments on Level 3 assets, challenging the reliability of GAAP net income as a performance metric.
FSK's portfolio is predominantly composed of privately held, Level 3 assets valued using internal models, meaning reported net income is highly sensitive to management's valuation assumptions rather than market prices. The persistent gap between operating income and net income across most quarters suggests that unrealized depreciation is a chronic feature, not a one-off event. This accounting reality means investors must rely heavily on NAV trends and realized credit metrics, as the income statement alone provides a potentially misleading picture of economic performance.