The firm's profitability has deteriorated significantly, with net margins plummeting to -86.9% in 2025Q3 as operating income swung to a $3.5 million loss.
| Sales/Revenue | 0 | - | - | - |
| Revenue Growth % | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - |
| COGS % of Revenue | - | - | - | - |
| Gross Profit | 8.07M | 17.56M | 17.42M | 2.24M |
| Gross Margin % | - | 78.85% | 99.6% | 100% |
| Gross Profit Growth % | - | 0.85% | 676.61% | - |
| Operating Expenses | 7.24M | 33.55M | 2.26M | 0 |
| OpEx % of Revenue | - | 150.64% | 12.95% | - |
| Selling, General & Admin | 0 | 4.16M | 2.24M | 0 |
| SG&A % of Revenue | - | 18.68% | 12.8% | - |
| Research & Development | 0 | - | - | - |
| R&D % of Revenue | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - |
| Operating Income | 7.66M | -15.99M | 15.15M | 8.4M |
| Operating Margin % | - | -71.78% | 86.65% | 374.53% |
| Operating Income Growth % | - | -205.52% | 80.4% | - |
| EBITDA | 7.66M | -15.99M | 15.15M | 8.4M |
| EBITDA Margin % | - | -71.78% | 86.65% | 374.53% |
| EBITDA Growth % | - | -205.52% | 80.4% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 |
| EBIT | 7.66M | -15.99M | 15.15M | 8.4M |
| Net Interest Income | 9.26M | 19.43M | 2.41M | 0 |
| Interest Income | 10.92M | 22.77M | 2.48M | 0 |
| Interest Expense | 1.66M | 3.34M | 70.69K | 0 |
| Other Income/Expense | 0 | - | - | - |
| Pretax Income | 5.94M | -19.33M | 6.77M | 8.38M |
| Pretax Margin % | - | -86.79% | 38.71% | 373.79% |
| Income Tax | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% |
| Net Income | 5.94M | -19.33M | 6.77M | 8.38M |
| Net Margin % | - | -86.79% | 38.71% | 373.79% |
| Net Income Growth % | - | -385.56% | -19.24% | - |
| Net Income (Continuing) | 5.94M | -19.33M | 6.77M | 8.38M |
| Discontinued Operations | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | -2.35 | 0.85 | 1.09 |
| EPS Growth % | - | -376.47% | -22.02% | - |
| EPS (Basic) | - | -2.35 | 0.85 | 1.09 |
| Diluted Shares Outstanding | 6.72M | 6.96M | 8M | 7.67M |
| Basic Shares Outstanding | 6.72M | 6.96M | 8M | 7.67M |
| Dividend Payout Ratio | - | - | 110.43% | 25.8% |
Insufficient Liquidity for Operations
According to recent financial disclosures, PDCC's quarterly revenue has fluctuated significantly, dropping from $9.5 million in 2024Q4 to $5.0 million by 2025Q3, suggesting that the firm's top-line growth is highly sensitive to the timing of distributions from its underlying CLO equity and mezzanine portfolio holdings.
The observed revenue contraction indicates that the company's income stream is not yet stabilized, likely reflecting the inherent volatility of CLO waterfall payments. Investors should monitor whether this decline represents a structural shift in portfolio yield or merely the timing of cash receipts from underlying loan pools.
As reported in the latest income statements, PDCC's net margin plummeted to -86.9% in 2025Q3, highlighting a significant disconnect between gross investment income and the firm's ability to maintain profitability after accounting for the overhead costs associated with its specialized asset management structure.
The wide variance between gross profit margins and net margins suggests that the company is struggling to achieve the necessary scale to absorb its fixed operating expenses. This margin profile appears to be in a precarious state, requiring a substantial increase in AUM to reach a sustainable break-even point.
Based on the provided income statement data, PDCC's operating income swung from a positive $4.3 million in 2025Q2 to a loss of $3.5 million in 2025Q3, indicating that the firm currently lacks the operating leverage required to maintain consistent profitability during periods of lower investment income.
The inability to maintain positive operating income suggests that the company's cost structure is currently too rigid relative to its revenue generation. Without a larger asset base to spread these fixed costs, the firm remains highly vulnerable to even minor fluctuations in quarterly investment distributions.
Data from recent filings reveals a cash position of under $100,000, which, when contrasted against the firm's recent quarterly revenue of $5.0 million and negative net income, suggests that PDCC faces a critical liquidity risk that could necessitate dilutive capital raises to sustain its ongoing operations.
Short-sellers would likely focus on this thin cash buffer as a primary indicator of operational fragility. The lack of liquid reserves implies that the company has almost no margin for error, potentially forcing management to prioritize immediate cash generation over long-term portfolio quality.
Quick answers to the most common questions about buying PDCC stock.
Pearl Diver Credit Company Inc. (PDCC) reported a net loss of $19.3M for the fiscal year ending 2025.
Pearl Diver Credit Company Inc. (PDCC) reported an operating income of $-16.0M, resulting in an operating profit margin of -71.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Pearl Diver Credit Company Inc. (PDCC) generated $17.6M in gross profit for the year, representing a gross profit margin of 78.9%. This demonstrates the company's core pricing power and production efficiency.