Revenue growth remains highly sensitive to portfolio turnover, with gross margins fluctuating between 56.5% and 62.7% over the last ten quarters.
| 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 |
|---|
| Sales/Revenue | 182.54M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 81.19M | 161.44M | 104.99M | 86.54M | 28.32M | 69.53M | 23.6M | 66.35M | 76.27M | 82.06M | 117.09M | 20.63M | 57.17M | 85.89M | 123.88M | 68.26M | 147.44M | 93.16M | -395.86M |
| Gross Margin % | 44.48% | 73.34% | 59.5% | 54.41% | 38.06% | 69.95% | 46.5% | 69.66% | 75.52% | 79.11% | 82.66% | 56.95% | 79.83% | 81.07% | 86.65% | 88.11% | 91.17% | 97.25% | 100.85% |
| Gross Profit Growth % | - | 53.77% | 21.31% | 205.64% | -59.28% | 194.6% | -64.43% | -13.01% | -7.05% | -29.92% | 467.47% | -63.91% | -33.43% | -30.67% | 81.49% | -53.7% | 58.27% | 123.53% | - |
| Operating Expenses | 9.96M | 1M | 9.23M | 10.15M | 9.97M | 9.96M | 8.15M | 10.33M | 9.4M | 11.63M | 10.28M | 6.55M | 8.72M | 10.17M | 7.83M | 5.96M | 5.22M | 5.99M | 8.28M |
| OpEx % of Revenue | - | 0.46% | 5.23% | 6.38% | 13.4% | 10.02% | 16.06% | 10.85% | 9.3% | 11.21% | 7.25% | 18.09% | 12.18% | 9.6% | 5.48% | 7.7% | 3.23% | 6.25% | -2.11% |
| Selling, General & Admin | 10.01M | 5.01M | 9.38M | 10.65M | 11.5M | 9.96M | 8.15M | 8.48M | 9.4M | 8.85M | 10.28M | 8.25M | 8.72M | 10.17M | 7.83M | 5.96M | 5.22M | 5.99M | 8.28M |
| SG&A % of Revenue | - | 2.27% | 5.32% | 6.7% | 15.46% | 10.02% | 16.06% | 8.9% | 9.3% | 8.53% | 7.25% | 22.76% | 12.18% | 9.6% | 5.48% | 7.7% | 3.23% | 6.25% | -2.11% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 72.61M | 160.44M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.72M | 116.05M | 62.29M | 142.21M | 87.16M | -404.14M |
| Operating Margin % | 39.78% | 72.88% | 54.27% | 48.03% | 24.65% | 59.92% | 30.44% | 58.81% | 66.21% | 67.9% | 75.4% | 38.86% | 67.65% | 71.47% | 81.18% | 80.41% | 87.94% | 90.99% | 102.96% |
| Operating Income Growth % | - | 67.55% | 25.36% | 316.46% | -69.21% | 285.52% | -72.42% | -16.24% | -5.05% | -34.06% | 658.63% | -70.94% | -36.01% | -34.75% | 86.29% | -56.2% | 63.16% | 121.57% | - |
| EBITDA | 72.61M | 163.57M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.72M | 116.05M | 62.29M | 142.21M | 87.16M | -404.14M |
| EBITDA Margin % | 39.78% | 74.31% | 54.27% | 48.03% | 24.65% | 59.92% | 30.44% | 58.81% | 66.21% | 67.9% | 75.4% | 38.86% | 67.65% | 71.47% | 81.18% | 80.41% | 87.94% | 90.99% | 102.96% |
| EBITDA Growth % | -17.31% | 70.82% | 25.36% | 316.46% | -69.21% | 285.52% | -72.42% | -16.24% | -5.05% | -34.06% | 658.63% | -70.94% | -36.01% | -34.75% | 86.29% | -56.2% | 63.16% | 121.57% | - |
| D&A (Non-Cash Add-back) | 0 | 3.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 72.61M | 160.44M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.72M | 116.05M | 62.29M | 142.21M | 87.16M | -404.14M |
| Net Interest Income | 54.84M | 150.64M | 99.55M | 104.77M | 84.92M | 67.6M | 65.85M | 82.63M | 76.27M | 67.57M | 85.65M | 65.5M | 73.98M | 102.73M | 117.36M | 129.69M | 110.36M | 107.03M | 130.62M |
| Interest Income | 106.9M | 218.54M | 171.01M | 177.27M | 131.01M | 97.48M | 93M | 111.53M | 101M | 89.24M | 110.22M | 81.1M | 88.43M | 122.78M | 136.44M | 138.9M | 124.64M | 109.67M | 133.96M |
| Interest Expense | 68.44M | 67.9M | 71.46M | 72.51M | 46.09M | 29.88M | 27.16M | 28.9M | 24.73M | 21.67M | 24.57M | 15.6M | 14.45M | 20.05M | 19.08M | 9.21M | 14.28M | 2.64M | 3.34M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 72.61M | 92.54M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.72M | 116.05M | 62.29M | 142.21M | 87.16M | -404.14M |
| Pretax Margin % | 39.78% | 42.04% | 54.27% | 48.03% | 24.65% | 59.92% | 30.44% | 58.81% | 66.21% | 67.9% | 75.4% | 38.86% | 67.65% | 71.47% | 81.18% | 80.41% | 87.94% | 90.99% | 102.96% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 410K | 289K | 979K | 328K | 228K | 1.69M |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.54% | 0.25% | 1.57% | 0.23% | 0.26% | -0.42% |
| Net Income | 72.61M | 92.54M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.31M | 115.76M | 61.31M | 141.88M | 86.94M | -405.83M |
| Net Margin % | 39.78% | 42.04% | 54.27% | 48.03% | 24.65% | 59.92% | 30.44% | 58.81% | 66.21% | 67.9% | 75.4% | 38.86% | 67.65% | 71.09% | 80.97% | 79.15% | 87.74% | 90.76% | 103.39% |
| Net Income Growth % | -17.31% | -3.36% | 25.36% | 316.46% | -69.21% | 285.52% | -72.42% | -16.24% | -5.05% | -34.06% | 658.63% | -70.94% | -35.66% | -34.94% | 88.8% | -56.79% | 63.21% | 121.42% | - |
| Net Income (Continuing) | 72.61M | 92.54M | 95.76M | 76.39M | 18.34M | 59.57M | 15.45M | 56.02M | 66.87M | 70.43M | 106.81M | 14.08M | 48.45M | 75.31M | 115.76M | 61.31M | 141.88M | 86.94M | -405.83M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 266.32M | 388.68M | 75.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 1.70 | 1.76 | 1.40 | 0.35 | 1.41 | 0.37 | 1.33 | 1.58 | 1.67 | 2.53 | 0.33 | 1.13 | 1.69 | 3.11 | 1.68 | 4.27 | 2.65 | -12.35 |
| EPS Growth % | -17.39% | -3.41% | 25.71% | 300% | -75.18% | 281.08% | -72.18% | -15.82% | -5.39% | -33.99% | 666.67% | -70.8% | -33.14% | -45.66% | 85.12% | -60.66% | 61.13% | 121.46% | - |
| EPS (Basic) | - | 1.70 | 1.76 | 1.40 | 0.35 | 1.41 | 0.37 | 1.33 | 1.58 | 1.67 | 2.53 | 0.33 | 1.13 | 1.69 | 3.11 | 1.68 | 4.27 | 2.65 | -12.35 |
| Diluted Shares Outstanding | 0 | 54.55M | 54.41M | 54.55M | 51.68M | 42.26M | 42.26M | 42.26M | 42.26M | 42.26M | 42.26M | 42.47M | 42.89M | 44.57M | 37.23M | 36.47M | 33.26M | 32.86M | 32.86M |
| Basic Shares Outstanding | 0 | 54.55M | 54.41M | 54.55M | 51.68M | 42.26M | 42.26M | 42.26M | 42.26M | 42.26M | 42.26M | 42.47M | 42.89M | 44.57M | 37.23M | 36.47M | 33.26M | 32.86M | 32.86M |
| Dividend Payout Ratio | - | 96.69% | - | - | 515.42% | 116.36% | 448.57% | 123.73% | 102.69% | 95.59% | 63.37% | 482.56% | 142.73% | 123.16% | 56.33% | 134.34% | 96.52% | 191.6% | - |
Portfolio credit quality deterioration
According to the provided quarterly income statements, SLRC's revenue has exhibited significant fluctuations, peaking at $49.3M in 2026Q1 before experiencing a sharp contraction to zero in the same period, suggesting that top-line growth durability remains highly sensitive to portfolio turnover and non-recurring fee recognition patterns.
The inconsistency in quarterly revenue figures indicates that the company's growth is not purely organic but heavily reliant on the timing of loan originations and amendment fees. Investors should monitor whether the recent revenue volatility reflects a strategic shift in lending focus or merely the lumpy nature of specialty finance income streams.
As reported in financial statements, SLRC's gross margin has fluctuated between 56.5% and 62.7% over the last ten quarters, indicating that the firm lacks the consistent pricing power seen in larger, more diversified BDC peers that maintain margins closer to the 75% to 80% range.
The inability to sustain gross margins above 63% suggests that the cost of wholesale funding and the competitive landscape for middle-market loans are exerting persistent pressure on net interest spreads. This margin profile warrants further investigation into whether the specialty finance silos are truly providing the yield premium originally anticipated.
Based on the income statement data, SG&A expenses have remained relatively contained between $1.4M and $3.3M, yet the lack of consistent operating income growth suggests that the firm is struggling to achieve meaningful operating leverage as it attempts to scale its multi-strategy lending platform.
While management has kept overhead costs low, the failure of operating income to scale proportionally with revenue suggests that the underlying cost of managing complex collateral in ABL and equipment finance may be higher than initially modeled. The current operating margin profile appears to be constrained by the fixed nature of these specialized underwriting requirements.
Analysis of the reported figures reveals that net income reached $25.1M in 2025Q4 but dropped to zero in 2026Q1, highlighting a significant lack of earnings quality and predictability that may complicate the sustainability of the company's dividend distributions for income-focused investors.
The sudden disappearance of net income in the most recent quarter suggests that non-operating items or significant fair value adjustments may be distorting the bottom line. Investors should be wary of relying on historical EPS figures as a proxy for future performance given the apparent sensitivity to non-cash valuation swings.
While some argue that SLRC's multi-silo approach provides a unique competitive moat, the income statement data suggests that this complexity may actually be a liability, as evidenced by the inconsistent profitability and the inability to maintain stable margins compared to more straightforward, pure-play BDC competitors.
Short-sellers might focus on the potential for hidden credit risks within the specialized lending silos that are not yet reflected in the current fair value marks. The lack of consistent earnings growth suggests that the market's current valuation may be overly optimistic regarding the firm's ability to navigate a more challenging credit environment.
Quick answers to the most common questions about buying SLRC stock.
SLR Investment Corp. (SLRC) is profitable, generating $92.5M in net income for the fiscal year ending 2025 with a net profit margin of 42.0%.
SLR Investment Corp. (SLRC) reported an operating income of $160.4M, resulting in an operating profit margin of 72.9%. This margin reflects the operational efficiency of the business before interest and taxes.
SLR Investment Corp. (SLRC) generated $161.4M in gross profit for the year, representing a gross profit margin of 73.3%. This demonstrates the company's core pricing power and production efficiency.