Palmer Square Capital BDC Reports Q4 Earnings

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: 1 hour ago

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PSBD-2.45%

Should l Buy PSBD?

Source: seekingalpha

Decline in Investment Income: Palmer Square Capital BDC reported total investment income of $29.8 million for Q4 2025, down from $34.9 million in the prior year, indicating challenges in the market environment that could impact future investment strategies and profitability.
Decrease in Net Asset Value: As of December 31, 2025, the net asset value per share was $14.85, a decline from $15.39 as of September 30, 2025, reflecting asset value volatility that may affect investor confidence.
Significant Increase in Losses: The total net realized and unrealized losses for Q4 2025 amounted to $18.4 million, a sharp rise from $2.9 million in Q4 2024, highlighting greater market risks faced by the company that could impact future financial stability.
Shareholder Dividend Plans: The company declared a cash distribution of $0.43 per share for Q4 2025 and plans to pay a regular dividend of $0.36 per share on April 9, 2026, demonstrating a commitment to shareholder returns despite financial challenges.

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Analyst Views on PSBD

Wall Street analysts forecast PSBD stock price to rise

3 Analyst Rating

0 Buy

3 Hold

0 Sell

Hold

Current: 11.020

Low

12.50

Averages

12.83

High

13.00

Current: 11.020

Low

12.50

Averages

12.83

High

13.00

RBC Capital

Outperform -> Sector Perform

downgrade

$15 -> $13

2025-11-25

Reason

RBC Capital

Price Target

$15 -> $13

AI Analysis

2025-11-25

downgrade

Outperform -> Sector Perform

Reason

RBC Capital downgraded Palmer Square to Sector Perform from Outperform with a price target of $13, down from $15.

RBC Capital

Outperform

Sector Perform

downgrade

$15 -> $13

2025-11-25

Reason

RBC Capital

Price Target

$15 -> $13

2025-11-25

downgrade

Outperform

Sector Perform

Reason

RBC Capital downgraded Palmer Square to Sector Perform from Outperform with a price target of $13, down from $15. Liquid credit opportunities, which is Palmer Square's focus, may be somewhat constrained in the near-term as credit spreads are near historic tights, the analyst tells investors in a research note. Palmer Square augmented its share repurchase program, but utilization could be limited by the company's leverage, the firm added.

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About PSBD

Palmer Square Capital BDC Inc. is an externally managed, non-diversified closed-end management investment company. The Company primarily lends to and invests in corporate debt securities, including small to large private United States companies. The Company’s investment objective is to maximize total return, comprised of current income and capital appreciation. Its investment focuses on investing in corporate debt loans and, to a lesser extent, investing in other debt securities which may include collateralized loan obligation debt and equity. The Company has four wholly owned subsidiaries: Palmer Square BDC Funding II LLC and Palmer Square BDC Funding I, LLC. The Company’s investment advisor is Palmer Square BDC Advisor LLC.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.