CION Investment Q2 Earnings Call Highlights

CION Investment NYSE: CION reported higher net investment income and net asset value in the second quarter of 2026, while reducing non-accruals and advancing a plan to lower leverage, expand share repurchases and limit new portfolio originations. Net investment income was $14.2 million, or $0.29 per share, compared with $12.9 million, or $0.25 per share, in the first quarter. The company paid base distributions totaling $0.30 per share during the quarter and declared the same $0.30 per-share monthly base distribution for both the third and fourth quarters. Net asset value rose 3.5% sequentially to $13.57 per share as of June 30, from $13.11 per share at the end of March. Chief Financial Officer Keith Franz said the increase was primarily driven by unrealized mark-to-market gains in the equity portfolio and the accretive effect of share repurchases. Portfolio sales support valuation marks Co-Chief Executive Officer Mark Gatto said CION sold more than $54 million of portfolio assets during the second quarter at 99% of par, close to their carrying values. After the quarter ended, the company sold an additional $10 million of assets at approximately 99% of par. “We have the market confirming these specific fair value marks in real time,” Gatto said, referring to the sales. During the question-and-answer session, President and Chief Investment Officer Gregg Bresner said the buyers were a diversified group that included co-investors and investors already participating in the relevant loan syndicates. He said the sales were negotiated on a loan-by-loan basis and that CION continues to hold portions of most of the loans sold. Sales and repayments totaled $157 million in the second quarter, including full repayments of first-lien positions in ESP Associates, Giving Home Health, Iron Horse, LUX Credit, MacNeill Pride and PRA Health Sciences. CION also completed secondary sales of investments including American Clinical, Future Pak, Ivy Hill VIII, Metric, Newbury Franklin and Sleep OpCo. Net funded investments declined by about $90 million during the quarter. Deleveraging plan and repurchases CION ended the second quarter with a net debt-to-equity ratio of 1.52x, down from 1.62x in the first quarter. The company reported $1.17 billion of total debt outstanding, total assets of approximately $1.8 billion and net assets of $668 million. Management outlined a deleveraging plan targeting a reduction of about $270 million, which Franz said is expected to bring net leverage to roughly 1.35x and eventually toward the low end of the company’s 1.3x to 1.4x target range. The plan includes repayments on the company’s JPMorgan senior secured credit facility and an expected full repayment of $115 million in Israeli public bonds.