UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number: 811-23881

Sound Point Meridian Capital, Inc.

(Exact name of registrant as specified in charter)

375 Park Avenue, 34^th Floor

New York, New York 10152

(Address of principal Executive Offices)

Andrea Sayago
Chief Compliance Officer

Sound Point Meridian Management Company, LLC

375 Park Avenue, 34^th Floor

New York, New York 10152

(Name and address of agent for service)

Copies of Communications to:

Harry S. Pangas

Philip T. Hinkle

Dechert LLP

1900 K Street, NW

Washington, DC 20006

(212) 895-2293

(Registrant’s telephone number, including Area Code)

Date of fiscal year end: March 31

Date of reporting period: March 31, 2026

Item 1. Reports to Stockholders.

(a)

The Annual Report to stockholders of Sound Point Meridian Capital, Inc. (the “Registrant”) for the fiscal year ending March 31, 2026 (the “Reporting Period”) is filed herewith.

Table of Contents

Letter to Stockholders and Management’s Discussion of Company Performance (Unaudited)		1

Important Information (Unaudited)		4

Financial Performance (Unaudited)		5

Summary of Certain Unaudited Portfolio Characteristics (Unaudited)		6

Fees and Expenses (Unaudited)		9

Statement of Assets and Liabilities		11

Schedule of Investments		12

Statement of Operations		17

Statements of Changes in Net Assets		18

Statement of Cash Flows		19

Notes to Financial Statements		20

Report of Independent Registered Public Accounting Firm		36

Supplemental Information (Unaudited)		37

Dividend Reinvestment Plan (Unaudited)		38

Additional Information (Unaudited)		39

Sound Point Meridian Capital, Inc.		Letter to Stockholders and Management’s Discussion of Company Performance
		(Unaudited)

Dear Stockholders,

Enclosed you will find the annual report of Sound Point Meridian Capital, Inc. (“we,” “us,” “our,” the “Company” or “SPMC”) for the year ended March 31, 2026.

The Company is a closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and is advised by Sound Point Meridian Management Company, LLC (the “Adviser”). The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. We seek to achieve our investment objectives by investing primarily in equity and mezzanine tranches of collateralized loan obligations, or “CLOs,” which are securitized by portfolios consisting primarily of below-investment grade U.S. senior secured loans. We aim to leverage our origination, underwriting and portfolio management capabilities to construct a diversified portfolio of CLO investments that provides a steady source of income and downside protection. Our actively managed, flexible investment approach, with a focus on relative value, aims to generate compelling total returns for our stockholders over the long term.

For the year ended March 31, 2026, the Company distributed $3.00 per common share. The Company’s common shares closed the fiscal year at a price of $8.95 per share, delivering a -45.01% total return loss on market value to our investors. For comparison, during the same time period, the S&P 500 Index generated 8.12% total return, while the Morningstar LSTA U.S. Leveraged Loan Index generated 4.81% total return. As of March 31, 2026, the weighted average reinvestment period of our portfolio was 3.8 years versus the CLO 2.0¹ market median of 3.6 years. The weighted average remaining non-call period of our portfolio was 3.9 years versus the CLO 2.0 market median of 3.9 years. We believe CLO equity investments with longer reinvestment periods provide the ability to manage through periods of loan volatility, while shorter non-call periods provide structural optionality through potential CLO refinancing opportunities.

During the year, we:

●

Deployed $96.6² million in new CLO equity investments during the fiscal year and sold $21.3² million of existing CLO investments.

●

Refinanced and/or reset 26 CLOs in our portfolio, lengthening reinvestment periods and lowering liability costs, which in many cases increases excess cash flow available to our equity investments.

●

Recorded net investment income (“NII”) and total loss from investment operations of $1.84 and $(6.15), respectively, per weighted average common share³.

●

Amended our revolving credit facility to extend maturity to August 4, 2028 and increase total capacity to $150 million, with a floating financing rate of term SOFR + 3.75%, providing continued flexibility to deploy capital over time.

●

Issued a 5-year, $57.5 million Series B Preferred Shares offering with a 7.875% stated rate, resulting in net proceeds of approximately $55.7 million.

Common Stock

On March 14, 2025, the Company entered into a committed equity financing agreement with B. Riley Principal Capital II, LLC (“BRPC II”). Under this agreement, the Company has the right, but not the obligation, to direct BRPC II to purchase up to the lesser of (i) $25,000,000 in aggregate gross purchase price of our common stock and (ii) 4,052,100 shares of common stock over a 36-month period. For the year ended March 31, 2026, BRPC II purchased 55,886 shares, resulting in $1,028,244 net proceeds to the Company.

On October 6, 2025, the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”), by and among the Company, the Adviser, the Administrator and AG Asset Strategies LLC (the “Selling Stockholder”), and each of Oppenheimer & Co. Inc., Lucid Capital Markets, LLC, and B. Riley Securities, Inc. (collectively, the “Placement Agents”), as placement agents and/or principals thereunder. Under the Equity Distribution Agreement, the Company may, but has no obligation to, issue and sell, from time to time, up to $100,000,000 in aggregate offering price of shares (the “Company Shares”) of its common stock, par value $0.001 per share (the “Common Stock”), through the Placement Agents, or to Placement Agents as principal for their own accounts. Under the Equity Distribution Agreement, the Selling Stockholder may, but has no obligation to, sell, from time to time, up to 5,297,083 shares of Common Stock (the “Selling Stockholder Shares” and, together with the Company Shares, the “Shares”) through the Placement Agents, or to Placement Agents as principal for their own accounts. Since the inception of the agreement through March 31, 2026, the Company has issued 9,902 new shares, resulting in $156,711 net proceeds to the Company.

As of March 31, 2026, the Company’s NAV was $198.70 million, or $9.63 per share of common stock, compared to our prior year closing NAV of $18.78 per share.

For the year ended March 31, 2026, the Company paid total distributions of $3.00 per common share, of which $1.84 represented NII earned^4,5. The Company’s dividend reinvestment plan allows common stockholders to have their distributions automatically reinvested into new shares of common stock. If the prevailing market price of our common stock exceeds our NAV per share, such reinvestment is at a discount of up to 5% to the prevailing market price.

Past performance is not indicative of, or a guarantee of, future performance.
Annual Report \| March 31, 2026		1

Sound Point Meridian Capital, Inc.		Letter to Stockholders and Management’s Discussion of Company Performance
		(Unaudited)

Debt Financing and Preferred Shares

On July 8, 2025, the Company priced an underwritten public offering of 2,300,000 shares of its 7.875% Series B Preferred Shares due 2030 at a public offering price of $25 per share, which resulted in net proceeds to the Company of approximately $55.7 million after payment of underwriting discounts, commissions and offering expenses payable by the Company. The Series B Preferred Shares are listed on the New York Stock Exchange under the symbol “SPME.”

For the year ended March 31, 2026, the Company paid distributions to preferred shareholders totaling $2.00 and $1.40 per share for Series A and Series B, respectively^4,6.

As of March 31, 2026, we had debt outstanding totaling approximately 47% of total assets. Over time and under normal market conditions, the Company expects to employ leverage within a range of 30% to 35% of total assets, although the actual amount of leverage will vary over time. As market conditions change, the Company may incur leverage outside of this range, subject to applicable regulatory and contractual limits.

Portfolio Update

During the year ended March 31, 2026, we deployed $96.6 million into CLO equity investments across 10 new issue transactions, 19 reset transactions and 16 secondary market purchases. Additionally, we participated in 8 loan accumulation facilities (also known as CLO warehouses).

As of March 31, 2026, our portfolio was diversified across over 95 CLO investments managed by 29 CLO managers. The underlying loan portfolio across all CLO investments consisted of over 1,500 loan issuers across more than 30 sectors on a look-through basis. We believe this strategy of broad diversification enables us to manage risk effectively, providing us with distribution sustainability and downside protection through changing market conditions.

Included within this report you will find detailed portfolio information as well as certain look-through information related to the collateral characteristics of the Company’s investments as of March 31, 2026.

Market Overview

The first quarter of 2026 marked a sharp shift in tone across U.S. credit markets, as a combination of macro uncertainty, geopolitical volatility, and sector-specific stress drove a broad sell-off in risk assets. Following 2025, which was a year mostly defined by strong technicals and aggressive loan spread compression, the market entered the year expecting a rotation from refinancing-driven activity toward M&A-led issuance. While early signs of that transition emerged, the sell off of software-related loans beginning in February 2026 weighed on overall activity.⁷

U.S. institutional leveraged loan issuance totaled $241 billion in the first quarter, running approximately 32% behind the prior year’s pace, with the shortfall concentrated in refinancing and repricing activity. Opportunistic transactions slowed materially as borrowers stepped back amid widening spreads and increased volatility. M&A-related activity reached a four-year high, supported by several large transactions, though volumes were heavily concentrated, with more than 40 percent of issuance tied to a handful of mega-deals rather than broad-based deal flow.⁸

Market technicals weakened meaningfully during the quarter. Investor demand declined to a three-year low, driven primarily by negative retail fund flows, while CLO issuance remained comparatively resilient but insufficient to offset the broader pullback. As a result, the supply-demand dynamic shifted materially, with the loan market contracting by roughly $19 billion and the imbalance widening sharply relative to the prior year.⁹

Against this backdrop, spreads widened across the credit spectrum. Specific to the broadly syndicated loan market B-rated loans spreads widened by roughly 100 basis points from January levels. Loan prices declined during the quarter, with the Morningstar LSTA Leveraged Loan Index posting a negative 0.55% return year-to-date, the weakest first-quarter performance since 2020.⁸ The selloff was most pronounced in the software sector, where concerns around AI-driven disruption triggered a sharp repricing and contributed to broader risk aversion across credit markets. Outside of software, price declines were more modest, though sentiment deteriorated across sectors as geopolitical developments and inflation uncertainty reduced expectations for near-term monetary easing.

CLO issuance remained relatively stable compared to other segments of the market, totaling approximately $47 billion in the first quarter, modestly below 2025 levels.⁹ However, activity slowed as the quarter progressed, with CLO managers becoming more cautious in response to volatility and widening liability spreads. CLO refinancing and reset activity declined significantly year-over-year, reflecting less favorable arbitrage conditions and growing investor sensitivity to underlying credit quality.

Past performance is not indicative of, or a guarantee of, future performance.
2		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Letter to Stockholders and Management’s Discussion of Company Performance
		(Unaudited)

Looking ahead, the path for credit markets will likely depend on stabilization in macro conditions and a recovery in investor demand.

Subsequent Developments

Subsequent to March 31, 2026, the Company reported an unaudited estimated NAV per common share of $10.57 as of April 30, 2026, received $23.4 million of cash distributions from its investment portfolio, and declared monthly distributions payable on July 31, August 31, and September 30, 2026 of $0.20 per common share, $0.16667 per Series A Term Preferred share, and $0.1640625 per Series B Term Preferred share.

We thank our stockholders for their trust and support during the year.

Ujjaval Desai

Chief Executive Officer

This letter is intended to assist stockholders in understanding the Company’s performance for the year ended March 31, 2026. The views and opinions in this letter were current as of March 31, 2026. Statements other than those of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors. The Company undertakes no duty to update any forward-looking statement made herein. Information contained on our website is not incorporated by reference into this stockholder letter and you should not consider information contained on our website to be part of this stockholder letter.

¹	CLO 2.0 refers to CLOs issued after 2011.
²	On a cash basis for the year ending March 31, 2026.
³	Weighted average common share is calculated based on the average monthly number of shares of common stock outstanding during the period.
⁴	Amount is estimated on a GAAP basis.
⁵	Distributions on common stock are generally paid from NII (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2026 calendar year.
⁶	Distributions on preferred shares are generally paid from NII (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2026 calendar year.
⁷	PitchBook LCD, U.S. Credit Markets Quarterly Wrap, Q1 2026, pp. 3–4.
⁸	PitchBook LCD, U.S. Credit Markets Quarterly Wrap, Q1 2026, pp. 3.
⁹	PitchBook LCD, U.S. Credit Markets Quarterly Wrap, Q1 2026, pp. 7.

Past performance is not indicative of, or a guarantee of, future performance.
Annual Report \| March 31, 2026		3

Sound Point Meridian Capital, Inc.		Important Information
		(Unaudited)

This report is transmitted to the stockholders of Sound Point Meridian Capital, Inc. (“we”, “us”, “our,” the “Company” or “SPMC”) and is furnished pursuant to certain regulatory requirements. This report and the information and views herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. This report is provided for informational purposes only, does not constitute an offer to sell securities of the Company and is not a prospectus. From time to time, the Company may have a registration statement relating to one or more of its securities on file with the U.S. Securities and Exchange Commission (“SEC”). Any registration statement that has not yet been declared effective by the SEC, and any prospectus relating thereto, is not complete and may be changed. Any securities that are the subject of such a registration statement may not be sold until the registration statement filed with the SEC is effective.

The information and its contents are the property of Sound Point Meridian Management Company, LLC (the “Adviser”) and/or the Company. Any unauthorized dissemination, copying or use of this presentation is strictly prohibited and may be in violation of law. This presentation is being provided for informational purposes only.

Investors should read the Company’s prospectus and SEC filings (which are publicly available on the EDGAR Database on the SEC website at http://www.sec.gov) carefully and consider their investment goals, time horizons and risk tolerance before investing in the Company. Investors should consider the Company’s investment objectives, risks, charges and expenses carefully before investing in securities of the Company. There is no guarantee that any of the goals, targets or objectives described in this report will be achieved.

An investment in the Company is not appropriate for all investors. The investment program of the Company is speculative, entails substantial risk and includes investment techniques not employed by traditional mutual funds. An investment in the Company is not intended to be a complete investment program. The net asset value (“NAV”) and market price of the Company’s shares will fluctuate, sometimes independently, based on market, economic, issuer-specific and other factors affecting the Company and its investments. Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their NAV, which may increase investors’ risk of loss, even when NAV has increased. Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of March 31, 2026. Nothing herein should be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

Neither the Adviser nor the Company provide legal, accounting or tax advice. Any statement regarding such matters is explanatory and may not be relied upon as definitive advice. Investors should consult with their legal, accounting and tax advisors regarding any potential investment. The information presented herein is as of the dates noted herein and is derived from financial and other information of the Company, and, in certain cases, from third party sources and reports that have not been independently verified by the Company. As noted herein, certain of this information is estimated and unaudited, and therefore subject to change. We do not represent that such information is accurate or complete, and it should not be relied upon as such.

Past performance is not indicative of, or a guarantee of, future performance.
4		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Financial Performance
		(Unaudited)

Performance Data

The following graph shows the market price performance of a $10,000 investment in the Company’s common shares for the period from June 13, 2024 (inception) through March 31, 2026. The performance calculation assumes the purchase of Company shares at net asset value for the beginning of the period and the sale of Company shares at the market price at the end of the period. Ending values for each year are as of March 31 of the applicable year. As the Company’s IPO occurred in June 2024, the value used for the Company’s performance as of March 31, 2026 reflects the Company’s then‐current net asset value per share. For comparative purposes, the performance of a relevant third‐party securities market index, the S&P BDC Index, Morningstar LSTA U.S. Leveraged Loan Index and ICE BofA U.S. High Yield Index, are shown. Distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. The performance does not reflect brokerage commissions in connection with the purchase or sale of Company shares, which if included would lower the performance shown. Returns do not reflect the deduction of taxes that a stockholder would pay on Company distributions or the sale of Company shares.

Past performance is not indicative of, or a guarantee of, future performance. Future results may vary and may be higher or lower than the data shown.

Comparison of the Change in Value of a $10,000 Investment

Performance figures for certain periods ended March 31, 2026:

	Annualized Total Return
	1 Year			3 years			Since Inception*
Sound Point Meridian Capital Inc.		-45.01	%		–	%		-24.20	%
ICE BofA ML US High Yield Index		6.90	%		8.50	%		7.45	%
S&P BDC Total Return Index		-13.96	%		7.06	%		-4.38	%
Morningstar LSTA US Leveraged Loan Index		4.81	%		8.00	%		5.45	%

For the Period June 13, 2024 (Commencement of operations) to March 31, 2026.

Past performance is not indicative of, or a guarantee of, future performance.
Annual Report \| March 31, 2026		5

Sound Point Meridian Capital, Inc.		Summary of Certain Unaudited Portfolio Characteristics
		March 31, 2026 (Unaudited)

A summary of the portfolio of investments as of March 31, 2026, is illustrated below:

A summary of the collateral characteristics of the CLO equity and other unrated investments as of March 31, 2026, is provided below:

PORTFOLIO SUMMARY¹

SUMMARY OF UNDERLYING PORTFOLIO²

	SPMC			Market Median⁶
Number of Underlying Loans		1,540			–
Aggregate Balance of Underlying Assets ($B)		42.99			–
Average Individual Obligor Exposure		0.07	%		–
Weighted Average Portfolio Spread		3.03	%		3.03	%
Weighted Average Diversity Score		88			84
Weighted Average Moody’s Rating Factor		2,685			2,721
Weighted Average Market Price		95.8			95.36
Weighted Average Facility Size ($B)		1,971			1,926
Weighted Average Bid Depth		6.27			6.31
Weighted Average Junior OC Cushion		4.43			4.33
Weighted Average Reinvestment Period Remaining (Years)		3.81			3.35

A summary of the top ten obligors on a look-through basis to the CLO equity and other unrated investments as of March 31, 2026, is provided below:

A summary of the top ten industries of the underlying borrowers on a look-through basis to the CLO equity and other unrated investments as of March 31, 2026, is provided below:

TOP 10 UNDERLYING OBLIGORS (WEIGHTED AVERAGE EXPOSURE)^2,3

1.	TransDigm	0.59	%
2.	Quikrete Companies	0.49	%
3.	Apex Group Treasury	0.43	%
4.	Clarios Global LP	0.43	%
5.	Charter Communications	0.42	%
6.	Azuria Water Solutions	0.41	%
7.	Hologic	0.40	%
8.	Flutter Entertainment	0.40	%
9.	Caesars Entertainment	0.40	%
10.	American Airlines	0.39	%

TOP 10 INDUSTRIES OF UNDERLYING OBLIGORS (WEIGHTED AVERAGE EXPOSURE)^2,3,4

1.	Services: Business	10.94	%
2.	Banking, Finance, Insurance & Real Estate	10.91	%
3.	High Tech	10.58	%
4.	Healthcare & Pharmaceuticals	9.65	%
5.	Hotels, Gaming & Leisure	5.83	%
6.	Capital Equipment	4.39	%
7.	Services: Consumer	4.17	%
8.	Construction & Building	4.17	%
9.	Aerospace & Defense	3.33	%
10.	Beverage, Food & Tobacco	3.26	%

Past performance is not indicative of, or a guarantee of, future performance.
6		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Summary of Certain Unaudited Portfolio Characteristics
		March 31, 2026 (Unaudited)

A summary of the ratings distribution of the underlying borrowers on a look-through basis to the CLO equity and other unrated investments as of March 31, 2026, is provided below:

WEIGHTED AVERAGE RATING DISTRIBUTION^2,3,5

A summary of the maturity distribution of the underlying borrowers on a look-through basis to the CLO equity and other unrated investments as of March 31, 2026, is provided below:

WEIGHTED AVERAGE MATURITY DISTRIBUTION^2,3

Past performance is not indicative of, or a guarantee of, future performance.
Annual Report \| March 31, 2026		7

Sound Point Meridian Capital, Inc.		Summary of Certain Unaudited Portfolio Characteristics
		March 31, 2026 (Unaudited)

Notes

^1.	The portfolio summary is based on invested assets (i.e., excluding cash) and assumes the estimated market value of the underlying positions as of 3/31/2026.
^2.	The information presented herein is on a look-through basis to the CLO equity held by the Company and reflects the aggregate underlying exposure of the Company based on the portfolios of those investments. The data is estimated, unaudited and derived from third party sources. Market median is calculated as the median of all CLO 2.0 vintage deals currently in their reinvestment periods as of 3/31/2026.
^3.	We obtain our exposure in underlying senior secured loans indirectly through our CLO equity investments.
^4.	Industry categories are based on Moody’s industry categorization of each obligor as reported in CLO trustee reports to the extent so reported. Certain CLO trustee reports do not report the industry category of all of the underlying obligors and where such information is not reported, it is not included in the summary look-through industry information shown. As such, the Company’s exposure to a particular industry may be higher than that shown if industry categories were available for all underlying obligors. In addition, certain underlying obligors may be reclassified from time to time based on developments in their respective businesses and/or market practices. Accordingly, certain underlying borrowers that are currently, or were previously, summarized as a single borrower in a particular industry may in current or future periods be reflected as multiple borrowers or in a different industry, as applicable.
^5.	Credit ratings shown are based on those assigned by Moody’s for comparison and informational purposes, if Moody’s does not assign a rating to a particular obligor, the weighted average rating shown reflects Moody’s equivalent rating of a rating agency that rated the obligor, provided, that such other rating is available with respect to a CLO equity investment held by us. In the event multiple ratings are available, the lowest Moody’s rating, or if there is no Moody’s rating, the lowest equivalent rating, is used. The ratings of specific borrowings by an obligor may differ from the rating assigned to the obligor and may differ among rating agencies. For certain obligors, no rating is available in the reports received by the Company. Such obligors are not shown in the graphs and, accordingly, the sum of the percentages in the graphs may not equal 100%. Ratings below BBB- are below investment grade.
^6.	For the annual report, the market statistics median calculation methodology was revised to include all active BSL 2.0 CLOs. Previously, the calculation included BSL 2.0 CLOs meeting a minimum AAA factor threshold, defined as current AAA balance divided by original AAA balance, of greater than 50%. Under the revised methodology, CLOs are included if current asset balance is greater than zero. The revised methodology is intended to reflect a broader population of active BSL 2.0 CLOs.

Past performance is not indicative of, or a guarantee of, future performance.
8		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Fees and Expenses
		(Unaudited)

The following table is intended to assist you in understanding the costs and expenses that an investor in shares of our common stock will bear directly or indirectly. The expenses shown in the table under “Annual Expenses” are based on historical fees and expenses incurred by the Company, as appropriate. As of March 31, 2026, (excluding any distributions paid after March 31, 2026), the Company’s leverage, including the outstanding Series A and Series B Preferred Shares and amounts borrowed under the Revolving Credit Facility (defined below), represented approximately 47% of the Company’s total assets (less current liabilities). Such expenses, and actual leverage incurred by the Company, may vary in the future. The following table should not be considered a representation of our future expenses. Actual expenses may be greater or less than shown.

Stockholder Transaction Expenses (as a percentage of the offering price):
Sales load	–	%⁽¹⁾
Offering expenses	–	%⁽²⁾
Dividend reinvestment plan expenses	–	⁽³⁾
Total stockholder transaction expenses	–	%

Annual Expenses (as a percentage of net assets attributable to common stock):
Base management fee	3.57	%⁽⁴⁾
Incentive fee	4.75	%⁽⁵⁾
Interest payments on borrowed funds	6.66	%⁽⁶⁾
Other expenses	2.52	%⁽⁷⁾
Total annual expenses	17.50	%

⁽¹⁾	In the event that the Company sells its securities publicly through underwriters or agents, the related prospectus supplement will disclose the applicable sales load.
⁽²⁾	In the event that the Company sells its securities publicly through underwriters or agents, the related prospectus supplement will disclose the estimated amount of total offering expenses, the offering price and the offering expenses borne by the Company as a percentage of the offering price.
⁽³⁾	The expenses of administering the DRIP are included in “other expenses.” If a participant elects by written notice to the DRIP administrator prior to termination of his or her account to have the DRIP administrator sell part or all of the shares held by the DRIP administrator in the participant’s account and remit the proceeds to the participant, the DRIP administrator is authorized to deduct a $0.03 per share brokerage commission from the proceeds. See “Dividend Reinvestment Plan.”
⁽⁴⁾	We have agreed to pay the Adviser as compensation under the Investment Advisory Agreement a base management fee at an annual rate of 1.75% of our Total Equity Base which is calculated and payable quarterly in arrears. “Total Equity Base” means the net asset value attributable to the common stock (prior to the application of the base management fee or incentive fee) and the paid-in or stated capital of the preferred interests in us (howsoever called), including the Series A Preferred Shares and Series B Preferred Shares.

The figure shown in the table above reflects our assumption that we incur leverage in an amount up to approximately 46.73% of our total assets (as determined immediately after the leverage is incurred) and, assumes the pro forma effect of the hypothetical borrowings of the full $150 million available under the Credit Facility. These base management fees are indirectly borne by holders of our common stock and are not borne by the holders of preferred stock or the holders of any other securities that we may issue. See “The Adviser and the Administrator — Investment Advisory Agreement — Base Management Fee and Incentive Fee” in our prospectus for additional information regarding the calculation of the management fee.

⁽⁵⁾

We have agreed to pay the Adviser as compensation under the Investment Advisory Agreement a quarterly incentive fee equal to 20% of our Pre-Incentive Fee Net Investment Income for the immediately preceding calendar quarter, subject to a quarterly preferred return, or hurdle, of 2.00% (8.00% annualized) and a catch-up feature. Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. No incentive fee is payable to the Adviser on capital gains whether realized or unrealized. The incentive fee is paid to the Adviser as follows:

●

no incentive fee in any calendar quarter in which our Pre-Incentive Fee Net Investment Income does not exceed 2.00%;

●

100% of our Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than 2.50% in any calendar quarter (10.00% annualized). We refer to this portion of our Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.50%) as the “catch-up.” The “catch-up” is meant to provide the Adviser with 20% of our Pre-Incentive Fee Net Investment Income as if a hurdle did not apply if this net investment income meets or exceeds 2.50% in any calendar quarter; and

●

20% of the amount of our Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.50% in any calendar quarter (10.00% annualized) is payable to the Adviser (that is, once the hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Net Investment Income thereafter is paid to the Adviser).

Past performance is not indicative of, or a guarantee of, future performance.
Annual Report \| March 31, 2026		9

Sound Point Meridian Capital, Inc.		Fees and Expenses
		(Unaudited)

●

For a more detailed discussion of the calculation of this fee, see “The Adviser and the Administrator — Investment Advisory Agreement — Base Management Fee and Incentive Fee” in our prospectus.

	⁽⁶⁾	“Interest payments on borrowed funds” represents the Company’s annualized interest expense and includes dividends payable on the Series A and Series B Preferred Shares and interest payable on the amounts borrowed under the Revolving Credit Facility (defined below), each as outstanding on March 31, 2026. We may issue additional shares of preferred stock. In the event that we were to issue additional shares of preferred stock, our borrowing costs, and correspondingly its total annual expenses, including, in the case of such preferred stock, the base management fee as a percentage of our managed assets attributable to common stock, would increase.
	⁽⁷⁾	Investors will bear indirectly the fees and expenses (including management fees and other operating expenses) of the CLO equity securities in which we invest.

CLO collateral manager fees are charged on the total assets of a CLO but are assumed to be paid from the residual cash flows after interest payments to the CLO debt tranches. Therefore, these CLO collateral manager fees (which generally range from 0.35% to 0.50% of a CLO’s total assets) are effectively much higher when allocated only to the CLO equity tranche.

Other operating expenses include an estimate of trustee fees and administrative CLO expenses. These amounts can vary but run in the annual range of 0.04% to 0.07% of a CLO’s total assets.

The indirect expenses described above that are associated with our CLO equity investments are not included in the fee table presentation, but if such expenses were included in the fee table presentation then our total annual expenses would have been 17.89% - 18.07% (assuming investment of all of the proceeds of this offering in CLO equity investments).

In addition, CLO collateral managers may earn fees based on a percentage of the CLO’s equity cash flows after the CLO equity has earned an internal rate of return above a specified “hurdle” rate. Future CLO fees and expenses indirectly borne by us may be substantially higher because of these fees, which may fluctuate over time.

Example

The following example is furnished in response to the requirements of the SEC and illustrates the various costs and expenses that you would pay, directly or indirectly, on a $1,000 investment in shares of our common stock for the time periods indicated, assuming (1) total annual expenses of 17.50% of net assets attributable to our common stock and (2) a 5% annual return*:

		1 Year				3 Years				5 Years				10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return		$	175			$	462			$	682			$	1,032

The example should not be considered a representation of future returns or expenses, and actual returns and expenses may be greater or less than those shown. The estimated incentive fee of 4.75% under the Investment Advisory Agreement, which assumes a 5% annual return, is included in the example. The example assumes that the estimated “other expenses” set forth in the Annual Expenses table are accurate, and that all dividends and distributions are reinvested at NAV. Our actual rate of return may be greater or less than the hypothetical 5% return shown in the example. The example does not include sales loads or estimated offering expenses which, if reflected, would result in higher expenses. In the event that the Company sells its securities publicly through underwriters or agents, the related prospectus supplement will disclose the applicable sales load and the estimated offering expenses borne by the Company.

Past performance is not indicative of, or a guarantee of, future performance.
10		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Statement of Assets and Liabilities
		March 31, 2026

ASSETS
Investments, at fair value (Cost $553,012,135)	$	368,151,940
Cash and cash equivalents		5,806,207
Interest receivable		69,266
Prepaid expenses and other assets		499,971
Total assets		374,527,384

LIABILITIES
Revolving credit facility payable		60,000,000
8.00% Series A Preferred Shares due 2029 (Principal $57,500,000); net of $1,491,215 of deferred issuance cost)		56,008,785
7.875% Series B Preferred Shares due 2030 (Principal $57,500,000); net of $1,995,754 of deferred issuance cost)		55,504,246
Incentive fees payable (Note 5)		1,740,636
Advisory fees payable (Note 5)		1,367,378
Professional fees payable		532,001
Interest payable on revolving credit facility		331,469
Transfer agent fees payable		9,032
Accrued expenses and other liabilities		335,810
Total liabilities		175,829,357

Commitments and contingencies (Note 10)

NET ASSETS applicable to common stock $0.001 par value, 450,000,000 shares authorized 20,628,825 shares issued and outstanding	$	198,698,027

COMPOSITION OF NET ASSETS
Common stock, $0.001 par value	$	20,629
Capital in excess of par value		367,110,421
Total distributable earnings/(accumulated losses)		(168,433,023	)
NET ASSETS	$	198,698,027

Net asset value per share	$	9.63
Market price per share	$	8.95
Percentage of market price premium to net asset value per share		(7.06	%)

See Notes to Financial Statements.
Annual Report \| March 31, 2026		11

Sound Point Meridian Capital, Inc.		Schedule of Investments
		March 31, 2026

Issuer^{(1)(2)(3)(4)(5)}	ACQUISITION DATE⁽⁶⁾	PRINCIPAL AMOUNT/ SHARES		Cost		Fair Value⁽⁷⁾
*Collateralized Loan Obligations - Debt*⁽⁸⁾⁽⁹⁾
Structured Finance - Debt
Ares LXVIII CLO, Ltd.
Secured Note - Class F, (3 Month SOFR + 10.08%, due 04/25/2035)	6/13/2024	$	51,000	$	51,271	$	51,002
KKR CLO 40, Ltd.
Secured Note - Class ER, (3 Month SOFR + 7.25%, due 10/20/2034)	6/13/2024		1,397,000		1,395,837		1,229,805
Total Collateralized Loan Obligations - Debt - (0.64%)				$	1,447,108	$	1,280,807

*Collateralized Loan Obligations - Equity*^(9)(10)
Structured Finance - Equity
AB BSL CLO 5, Ltd.
Subordinated Note (effective yield 12.42%, maturity 1/20/2038)	11/18/2024		1,786,080		1,533,051		1,000,562
AB BSL CLO 6, Ltd.
Subordinated Note (effective yield 13.48%, maturity 7/20/2037)⁽¹¹⁾	5/19/2025		8,173,770		7,388,310		6,213,333
AGL CLO 24, Ltd.
Subordinated Note (effective yield 8.69%, maturity 7/25/2036)⁽¹¹⁾	6/13/2024		11,216,400		10,130,941		5,659,981
AGL CLO 28, Ltd.
Subordinated Note (effective yield 0%, maturity 1/21/2037)⁽¹¹⁾	6/13/2024		17,771,250		5,794,281		1,620,154
AGL CLO 30, Ltd.
Subordinated Note (effective yield 2.37%, maturity 4/21/2037)⁽¹¹⁾	6/13/2024		6,987,330		5,979,343		3,312,410
AGL CLO 33, Ltd.
Subordinated Note (effective yield 4.82%, maturity 7/21/2029)^(11)(12)	7/5/2024		19,600,000		15,881,850		10,069,520
Anchorage Capital CLO 16, Ltd.
Subordinated Note (effective yield 11.86%, maturity 1/19/2035)	6/13/2024		2,023,100		929,670		684,577
Anchorage Capital CLO 18, Ltd.
Subordinated Note (effective yield 0%, maturity 4/15/2034)	6/13/2024		1,800,000		705,574		186,660
Anchorage Capital CLO 24, Ltd.
Subordinated Note (effective yield 11.2%, maturity 4/15/2034)	6/13/2024		23,490,000		9,952,934		5,705,016
Ares LXX CLO, Ltd.
Subordinated Note (effective yield 10.94%, maturity 10/25/2035)	6/13/2024		10,125,000		8,320,434		6,577,706
Ares Loan Funding V, Ltd.
Subordinated Note (effective yield 7.19%, maturity 7/25/2037)	6/13/2024		2,677,500		1,949,848		1,073,383
Ares LXVIII CLO, Ltd.
Subordinated Note (effective yield 5.94%, maturity 4/25/2035)	6/13/2024		3,600,000		3,040,098		1,838,484
Bain Capital Credit CLO 2019-4, Ltd.
Subordinated Note (effective yield 0%, maturity 4/23/2035)	6/13/2024		300,000		149,322		59,863
Bain Capital Credit CLO 2022-4, Ltd.
Subordinated Note (effective yield 10.29%, maturity 7/16/2035)	6/13/2024		12,945,000		7,956,108		4,558,452
Bain Capital Credit CLO 2023-4, Ltd.
Subordinated Note (effective yield 10.63%, maturity 10/21/2036)	6/13/2024		8,216,975		5,707,339		4,399,451
Bain Capital Credit CLO 2023-2, Ltd.
Subordinated Note (effective yield 9.25%, maturity 7/18/2036)	6/14/2024		3,690,000		2,620,543		1,822,343
Bain Capital Credit CLO 2023-1, Ltd.
Subordinated Note (effective yield 11.01%, maturity 4/16/2036)	7/16/2024		12,579,000		8,432,920		5,017,764
Balboa Bay Loan Funding 2025-2, Ltd.
Subordinated Note (effective yield 8.12%, maturity 1/20/2039)⁽¹¹⁾	11/21/2025		4,996,200		4,502,669		4,238,448
Ballyrock CLO 23, Ltd.
Subordinated Note (effective yield 12.09%, maturity 4/25/2036)	6/13/2024		3,100,000		2,346,621		1,584,720
BBAM US CLO I, Ltd.
Subordinated Note (effective yield 15.39%, maturity 3/30/2038)	1/13/2026		1,440,000		848,056		667,348
BBAM US CLO III, Ltd.
Subordinated Note (effective yield 11.57%, maturity 10/15/2038)	10/29/2025		6,750,000		5,235,475		3,873,352
Benefit Street Partners CLO 43, Ltd.
Subordinated Note (effective yield 7.72%, maturity 10/20/2038)	8/20/2025		3,610,000		3,646,008		2,668,151
Benefit Street Partners CLO IX, Ltd.
Preferred Shares (effective yield 11.67%, maturity 7/25/2025)	6/6/2025		2,250		2,153,929		1,408,815

See Notes to Financial Statements.
12		www.soundpointmeridiancap.com

Sound Point Meridian Capital, Inc.		Schedule of Investments
		March 31, 2026

Issuer^{(1)(2)(3)(4)(5)}

ACQUISITION
DATE⁽⁶⁾

PRINCIPAL
AMOUNT/
SHARES

Cost