Revenue trajectory remains highly erratic, with the firm reporting a 2026Q4 operating income of -$110.7M, reflecting significant sensitivity to mark-to-market adjustments.
| Sales/Revenue | - | - | - |
| Revenue Growth % | - | - | - |
| Cost of Goods Sold | - | - | - |
| COGS % of Revenue | - | - | - |
| Gross Profit | -121.96M | 64.39M | 64.39M |
| Gross Margin % | 112.96% | 99.82% | 99.82% |
| Gross Profit Growth % | -289.4% | 0% | - |
| Operating Expenses | 4.27M | 792.4K | 792.4K |
| OpEx % of Revenue | -3.95% | 1.23% | 1.23% |
| Selling, General & Admin | 4.18M | 792.4K | 792.4K |
| SG&A % of Revenue | -3.87% | 1.23% | 1.23% |
| Research & Development | - | - | - |
| R&D % of Revenue | - | - | - |
| Other Operating Expenses | - | - | - |
| Operating Income | -126.23M | 63.6M | 63.6M |
| Operating Margin % | 116.91% | 98.59% | 98.59% |
| Operating Income Growth % | -298.47% | 0% | - |
| EBITDA | -126.23M | 63.6M | 63.6M |
| EBITDA Margin % | 116.91% | 98.59% | 98.59% |
| EBITDA Growth % | -298.47% | 0% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 |
| EBIT | -126.23M | 63.6M | 63.6M |
| Net Interest Income | 51.94M | 32.99M | 32.99M |
| Interest Income | 65.93M | 33.11M | 33.11M |
| Interest Expense | 13.99M | 114.81K | 114.81K |
| Other Income/Expense | - | - | - |
| Pretax Income | -126.23M | 63.6M | 63.6M |
| Pretax Margin % | 116.91% | 98.59% | 98.59% |
| Income Tax | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% |
| Net Income | -126.23M | 63.6M | 63.6M |
| Net Margin % | 116.91% | 98.59% | 98.59% |
| Net Income Growth % | -298.47% | 0% | - |
| Net Income (Continuing) | -126.23M | 63.6M | 63.6M |
| Discontinued Operations | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 |
| EPS (Diluted) | -6.12 | 0.87 | 3140.00 |
| EPS Growth % | -100.19% | -99.97% | - |
| EPS (Basic) | -6.12 | 0.87 | 3140.00 |
| Diluted Shares Outstanding | 20.63M | 20.32M | 20.28M |
| Basic Shares Outstanding | 20.63M | 20.32M | 20.28M |
| Dividend Payout Ratio | - | - | 0% |
Mark-to-market portfolio volatility
As indicated by the most recent financial disclosures, SPMC's revenue trajectory remains highly erratic, with the fund reporting a TTM revenue figure of -$107.97M, reflecting the significant impact of unrealized mark-to-market adjustments on the firm's headline income statement performance during the current reporting cycle.
The extreme variance in quarterly revenue suggests that the firm's reported top-line is heavily influenced by non-cash valuation swings rather than recurring interest income. Investors should monitor whether the underlying CLO equity tranches can generate sufficient cash yield to stabilize these fluctuations, as the current negative revenue trend complicates the assessment of long-term growth durability.
Based on reported figures, SPMC's gross margins have demonstrated significant inconsistency, fluctuating from 100% in 2026Q1 to 69.3% by 2026Q4, which highlights the inherent sensitivity of the fund's profitability to the valuation of its structured credit portfolio in a volatile interest rate environment.
The wide swings in gross margin suggest that the fund's ability to retain value is highly dependent on the performance of the underlying loan collateral. This lack of margin stability implies that the firm's profitability is currently more a function of external credit market conditions than internal operational efficiency.
According to the income statement data, SPMC's operating income collapsed to -$110.7M in 2026Q4, a sharp reversal from the $14.0M reported in 2026Q1, demonstrating that the firm lacks the operating leverage to offset significant mark-to-market losses within its investment portfolio during periods of market stress.
The inability to maintain positive operating income during periods of portfolio depreciation suggests that the firm's cost structure, while relatively lean, cannot compensate for the volatility of its asset base. This warrants further investigation into whether the management fee structure provides enough cushion to protect the firm's bottom line during sustained credit market downturns.
As reported in recent financial statements, the divergence between the fund's net income of -$118.7M in 2026Q4 and its earlier positive earnings periods underscores the low quality of reported net income, which is heavily skewed by non-cash unrealized losses on the investment portfolio.
The reliance on fair value accounting for CLO tranches means that reported EPS is a poor proxy for the actual cash-generating capacity of the fund. Analysts should focus on Net Investment Income (NII) as a more reliable metric to gauge the sustainability of distributions, as the current net income figures appear to be dominated by accounting volatility.
Based on the firm's limited cash position of $5.8M and the recent negative revenue growth, short-sellers may argue that SPMC faces a liquidity trap where it cannot capitalize on distressed market opportunities without further diluting shareholders or liquidating positions at unfavorable prices.
The combination of a thin cash buffer and high sensitivity to credit spreads suggests that the fund may be forced into a defensive posture if market conditions deteriorate further. This risk profile implies that the firm's ability to navigate a prolonged credit cycle remains unproven, potentially limiting its capacity to recover NAV in the near term.
Quick answers to the most common questions about buying SPMC stock.
Sound Point Meridian Capital Inc (SPMC) reported a net loss of $126.2M for the fiscal year ending 2026.
Sound Point Meridian Capital Inc (SPMC) reported an operating income of $-126.2M, resulting in an operating profit margin of 116.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Sound Point Meridian Capital Inc (SPMC) generated $-122.0M in gross profit for the year, representing a gross profit margin of 113.0%. This demonstrates the company's core pricing power and production efficiency.