Barings BDC, Inc. Reports Fourth Quarter and Full Year 2025 Results and Announces Quarterly Cash Dividend of $0.26 Per Share

Barings BDC, Inc. (NYSE:BBDC) ("Barings BDC" or the "Company") today reported its financial and operating results for the fourth quarter and full year of 2025 and announced that the Company's Board of Directors (the "Board") declared a quarterly cash dividend of $0.26 per share.

Fourth Quarter 2025 Results

Commenting on the quarter, Tom McDonnell, Chief Executive Officer of Barings BDC, stated, "Our portfolio delivered strong performance in the fourth quarter and throughout 2025, highlighted by net investment income that continued to exceed our regular dividend for both the quarter and the full year. Credit quality across the portfolio remains excellent, as reflected in industry‑leading metrics including non‑accruals of just 0.2% of fair value, strong weighted‑average interest coverage, and stable portfolio spreads. These indicators highlight the resilience of our borrowers and the strength of our underwriting discipline. Supported by the scale and expertise of the Barings platform and the ongoing execution by our talented team, we remain confident in the quality of our portfolio and our ability to continue generating attractive, long‑term value for shareholders."

During the three months ended December 31, 2025, the Company reported total investment income of $68.0 million, net investment income of $28.0 million, or $0.27 per share, and a net increase in net assets resulting from operations of $25.2 million, or $0.24 per share.

Net asset value ("NAV") per share as of December 31, 2025 was $11.09, as compared to $11.10 as of September 30, 2025. The decrease in NAV per share from September 30, 2025 to December 31, 2025 was primarily attributed to a net realized loss on investments, credit support agreement, foreign currency transactions and forward currency contracts of $0.05 per share, partially offset by net unrealized appreciation on the Company's investment portfolio, credit support agreement, foreign currency transactions and forward currency contracts of approximately $0.02 per share, net investment income exceeding the Company's fourth quarter dividend by $0.01 per share and the accretive impact of share repurchases of $0.01 per share.

Recent Portfolio Activity

During the three months ended December 31, 2025, the Company made 19 new investments totaling $83.2 million, made investments in existing portfolio companies totaling $50.0 million and made a $2.9 million additional debt investment alongside other related party affiliates in a portfolio company that specializes in providing financing to plaintiff law firms engaged in mass tort and other civil litigation. The Company had 14 loans repaid totaling $84.6 million and recognized a net realized loss on these transactions of $7.1 million. The Company also received $71.2 million of portfolio company principal payments and sales proceeds and recognized a net realized loss of $4.5 million. The Company received $22.3 million of return of capital from its joint ventures, equity, and royalty rights investments. In addition, the Company sold $90.9 million of investments to its joint ventures, recognizing a net realized gain on these transactions of $0.4 million. Also, investments in one portfolio company were restructured, which resulted in a net realized loss of $2.9 million. Lastly, the Company received proceeds related to the sale of equity investments totaling $2.2 million and recognized a net realized gain on such sales totaling $1.8 million.

During the three months ended December 31, 2025, the Company recorded net unrealized appreciation totaling $2.5 million, consisting of net unrealized appreciation reclassification adjustments of $11.7 million related to the net realized losses on the sales / exits and restructuring of certain investments and unrealized appreciation of $7.7 million on the Sierra credit support agreement with Barings LLC ("Barings"), partially offset by net unrealized depreciation on our current portfolio of $9.8 million, net unrealized depreciation related to foreign currency transactions of $4.2 million, net unrealized depreciation on forward currency contracts of $2.8 million and deferred taxes of $0.1 million. The net unrealized depreciation on the Company's current portfolio of $9.8 million was driven primarily by broad market moves for investments of $7.2 million, the credit or fundamental performance of investments of $3.3 million, partially offset by the impact of foreign currency exchange rates on investments of $0.7 million.

Liquidity and Capitalization

As of December 31, 2025, the Company had cash and foreign currencies of $66.8 million (including restricted cash of $12.9 million), $226.8 million of borrowings outstanding under its $825 million senior secured credit agreement, $1,212.5 million aggregate principal amount of unsecured notes outstanding and a net receivable from unsettled transactions of $55.8 million.

Share Repurchase Program

On February 20, 2025, the Board authorized a 12-month share repurchase program (the "Prior Share Repurchase Program"). Under the Prior Share Repurchase Program, the Company may repurchase, during the 12-month period that commenced on March 1, 2025, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company's stock price, applicable legal, contractual and regulatory requirements and other factors. The Prior Share Repurchase Program is expected to be in effect until March 1, 2026, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The Prior Share Repurchase Program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the Prior Share Repurchase Program. The Prior Share Repurchase Program may be suspended, extended, modified or discontinued at any time. As of February 19, 2026, the Company had repurchased a total of 702,054 shares of its common stock in the open market under the Prior Share Repurchase Program at an average price of $9.04 per share, including brokerage commissions.

On February 19, 2026, the Board authorized a new 12-month share repurchase program (the "Share Repurchase Program"). Under the Share Repurchase Program, the Company may repurchase, during the 12-month period commencing on March 1, 2026, up to $30.0 million in the aggregate of its outstanding common stock in the open market at prices below the then-current NAV per share. The timing, manner, price and amount of any share repurchases will be determined by the Company, in its discretion, based upon the evaluation of economic and market conditions, the Company's stock price, applicable legal, contractual and regulatory requirements and other factors. The Share Repurchase Program is expected to be in effect until March 1, 2027, unless extended or until the aggregate repurchase amount that has been approved by the Board has been expended. The Share Repurchase Program does not require the Company to repurchase any specific number of shares, and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time.

Dividend Information

The Board declared a quarterly cash dividend of $0.26 per share, which is payable as follows:

Dividend Reinvestment Plan

Barings BDC has adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of dividends and distributions on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend or distribution, stockholders who have not opted out of the DRIP will have their cash dividends or distributions automatically reinvested (net of applicable withholding tax) in additional shares of the Company's common stock, rather than receiving cash.

When the Company declares and pays dividends and distributions, it determines the allocation of the distribution between current income, accumulated income, capital gains and return of capital on the basis of accounting principles generally accepted in the United States ("GAAP"). At each year end, the Company is required for tax purposes to determine the allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes. The tax status of the Company's distributions can be found on the Investor Relations page of its website.

Subsequent Events

Subsequent to December 31, 2025, the Company made approximately $47.6 million of new commitments, of which $37.9 million closed and funded. The $37.9 million of investments consists of $22.9 million of first lien senior secured debt investments, $14.7 million of second lien senior secured debt investments and $0.3 million of equity investments. The weighted average yield of the debt investments was 8.6%. In addition, the Company funded $16.3 million of previously committed revolvers and delayed draw term loans.

Conference Call to Discuss Fourth Quarter and Full Year 2025 Results

Barings BDC has scheduled a conference call to discuss fourth quarter and full year 2025 financial and operating results for Friday, February 20, 2026, at 9:00 a.m. ET.

To listen to the call, please dial 877-407-8831 or 201-493-6736 approximately 10 minutes prior to the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available until February 27, 2026. To access the replay, please dial 877-660-6853 or 201-612-7415 and enter conference ID 13757338.

This conference call will also be available via a live webcast on the investor relations section of Barings BDC's website at https://ir.barings.com/ir-calendar. Access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until February 27, 2026.

Forward-Looking Statements

Statements included herein or on the webcast/conference call may constitute "forward-looking statements," which relate to future events or Barings BDC's future performance or financial condition. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made, which reflect management's current estimates, projections, expectations or beliefs, and which are subject to risks and uncertainties that may cause actual results to differ materially. Forward-looking statements include, but are not limited to, the Company's projected net investment income and earnings, the Company's distribution levels and frequency of distributions, the Company's share repurchase activity and investment activity, and the ability of Barings to manage Barings BDC and identify investment opportunities, all of which are subject to change at any time based upon economic, market or other conditions, and may not be relied upon as investment advice or an indication of Barings BDC's trading intent. More information on the risks and other potential factors that could affect Barings BDC's financial results and future events, including important factors that could cause actual results or events to differ materially from plans, estimates or expectations included herein or discussed on the webcast/conference call, is included in Barings BDC's filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Barings BDC's annual report on Form 10-K and quarterly reports on Form 10-Q. In addition, there is no assurance that Barings BDC or any of its affiliates will purchase additional shares of Barings BDC at any specific discount levels or in any specific amounts. There is no assurance that the market price of Barings BDC's shares, either absolutely or relative to NAV, will increase as a result of any share repurchases, or that any repurchase plan will enhance stockholder value over the long term.

Non-GAAP Financial Measures

To provide additional information about the Company's results, the Company's management has discussed in this press release the Company's net debt (calculated as (i) total debt less (ii) unrestricted cash and foreign currencies (excluding restricted cash) net of net payables/receivables from unsettled transactions) and its net debt-to-equity ratio (calculated as net debt divided by total net assets), which are not prepared in accordance with GAAP. These non-GAAP measures are included to supplement the Company's financial information presented in accordance with GAAP and because the Company uses such measures to monitor and evaluate its leverage and financial condition and believes the presentation of these measures enhances investors' ability to analyze trends in the Company's business and to evaluate the Company's leverage and ability to take on additional debt. However, these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for analysis of the Company's financial results as reported under GAAP.

These non-GAAP measures are not in accordance with, or an alternative to, measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. These measures should only be used to evaluate the Company's results of operations in conjunction with their corresponding GAAP measures. Pursuant to the requirements of Item 10(e) of Regulation S-K, as promulgated under the Securities Exchange Act of 1934, as amended, the Company has provided a reconciliation of these non-GAAP measures in the last table included in this press release.

About Barings BDC

Barings BDC, Inc. (NYSE:BBDC) is a publicly traded, externally managed investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Barings BDC seeks to invest primarily in senior secured loans in middle-market companies that operate across a wide range of industries. Barings BDC's investment activities are managed by its investment adviser, Barings, a leading global asset manager based in Charlotte, NC with $481+ billion* of AUM firm-wide. For more information, visit www.baringsbdc.com.

About Barings LLC

Barings is a $481+ billion* global asset management firm that partners with institutional, insurance, and intermediary clients, and supports leading businesses with flexible financing solutions. The firm, a subsidiary of MassMutual, seeks to deliver excess returns by leveraging its global scale and capabilities across public and private markets in fixed income, real assets and capital solutions. Learn more at www.barings.com.

*Assets under management as of December 31, 2025

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