Gross margins have exhibited extreme instability, plummeting from 66.3% in 2025Q3 to 27.6% in 2026Q1, reflecting high sensitivity to portfolio valuation adjustments.
| 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 | 1.02B | 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 % | 72% | 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 % | 7.97% | 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 | 1.48B | 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 | 461M | 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 | -63M | -108M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | -884M | -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 % | -147.58% | -26.64% | -24.59% | -20.89% | -174.08% | 55.01% | 351.23% | -51.24% | 44.39% | -36.86% | 0.78% | -219.31% | -47.28% | -26.2% | 23.91% | -47.26% | 19.61% | 0% | - |
| Total Revenue | 599M | 1.17B | 1.11B | 1.23B | 463M | 1.76B | -203M | 443M | 669M | 274M | 387M | 132.73M | 284.32M | 338.76M | 378.31M | 73.86M | 36.18M | 4.42M | 0 |
| Revenue Growth % | -191.97% | 5.5% | -9.76% | 165.66% | -73.77% | 969.46% | -145.82% | -33.78% | 144.16% | -29.2% | 191.57% | -53.32% | -16.07% | -10.46% | 412.19% | 104.13% | 718.62% | - | - |
| Non-Interest Expense | 524M | 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 | 87.48% | 20.07% | 5.05% | 4.72% | -0.86% | 0.91% | -16.75% | 5.87% | 2.24% | 4.74% | 4.39% | 12.75% | 6.8% | 4.84% | 4.6% | 12.26% | 11.16% | -159.19% | - |
| Operating Income | -323M | 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 % | -53.92% | 49.53% | 54.77% | 58.62% | 25.05% | 86.52% | 194.58% | 57.11% | 86.1% | 68.25% | 77.52% | 33.48% | 70.41% | 80.17% | 87.41% | 72.39% | 78.11% | 259.19% | - |
| 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 | -534M | 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 % | -89.15% | 1.96% | 54.77% | 58.62% | 25.05% | 86.52% | 194.58% | 57.11% | 86.1% | 68.25% | 77.52% | 33.48% | 70.41% | 80.17% | 87.41% | 72.39% | 78.11% | 259.19% | - |
| Income Tax | 16M | 12M | 23M | 25M | 24M | 12M | 10M | 7M | 7M | 5M | 6M | 6.06M | 5.4M | 5.74M | 500K | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | -3% | 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 | -550M | 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 % | -91.82% | 0.94% | 52.7% | 56.59% | 19.87% | 85.84% | 199.51% | 55.53% | 85.05% | 66.42% | 75.97% | 28.92% | 68.51% | 78.48% | 87.28% | 72.39% | 78.11% | 259.19% | - |
| Net Income Growth % | -203.38% | -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) | -550M | 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) | -1.96 | 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 % | -204.23% | -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 | 280.07M | 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 |
Portfolio valuation volatility
As evidenced by the quarterly financial data, FSK's gross margin has exhibited extreme instability, plummeting from 66.3% in 2025Q3 to a mere 27.6% by 2026Q1, suggesting that the firm's core interest-spread model is highly sensitive to underlying asset valuation adjustments and non-accrual events within the portfolio.
The significant compression in gross margins indicates that the firm's investment income is frequently offset by mark-to-market depreciation. Investors should interpret this volatility as a potential signal that the portfolio's credit quality is struggling to maintain consistent yield in the current interest rate environment.
Based on reported income statements, FSK's net income has swung violently between a $214 million profit in 2025Q3 and a $441 million loss in 2026Q1, highlighting that headline earnings are heavily influenced by non-cash valuation changes rather than recurring operational cash flow generation.
The reliance on Level 3 asset valuations makes reported net income a poor proxy for actual dividend-paying capacity. Analysts should monitor the divergence between GAAP net income and net investment income to determine if the firm is effectively covering its distributions through core interest income.
According to recent filings, FSK's operating income has frequently turned negative, such as the -$345 million reported in 2026Q1, which suggests that the firm's fixed cost structure is unable to provide positive operating leverage when the investment portfolio experiences significant realized or unrealized credit losses.
The inability to maintain positive operating income during periods of portfolio stress implies that the firm's profitability is entirely dependent on the performance of its underlying loans. This lack of operational cushion warrants further investigation into the sustainability of the firm's current debt-to-equity leverage profile.
Data from the last ten quarters reveals a recurring pattern of sharp earnings reversals, which may indicate that FSK's portfolio is more susceptible to credit deterioration than the firm's upper-middle-market focus would suggest, potentially undermining the long-term thesis regarding the stability of its KKR-integrated sourcing strategy.
Short-term spikes in profitability appear to be frequently followed by significant valuation write-downs, suggesting that the firm may be struggling to exit legacy positions at carrying value. Investors should remain cautious regarding whether the current portfolio composition can withstand prolonged economic pressure without further NAV erosion.
Quick answers to the most common questions about buying FSK stock.
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 0.9%.
FS KKR Capital Corp. (FSK) reported an operating income of $580.0M, resulting in an operating profit margin of 49.5%. 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 69.6%. This demonstrates the company's core pricing power and production efficiency.