GET DAILY SIGNALSCrescent Capital BDC (CCAP) Delivers Q3 NII Beat but NAV Declines to $17.72
Key Takeaways
- Crescent Capital BDC reported net investment income (NII, a key measure of a business development company's core earnings) of $0.37 per share for the third quarter of 2026, topping the consensus estimate of $0.35.
- Net income came in at $0.27 per share, while net asset value (NAV, the per-share value of the company's assets minus liabilities) declined to $17.72 from $19.10 at the end of 2025.
- Total investment income fell to $36.9 million from $41.4 million a year earlier, reflecting lower interest and dividend income.
- The board declared a fourth-quarter base dividend of $0.34 per share and a $0.03 special dividend, alongside a newly authorized $50 million share repurchase program.
- Portfolio quality held relatively steady, with 190 companies valued at roughly $1.56 billion and 98.2% of debt investments at floating rates.
Why These Results Matter
Crescent Capital BDC, Inc. (CCAP) is a business development company that lends to middle-market businesses, generating income primarily through floating-rate loans. Its quarterly results matter because they reveal how well the portfolio is covering the dividend, how asset values are holding up amid a shifting rate environment, and how management is positioning the balance sheet. The third quarter of 2026 carries added weight: the company had recently reduced its management and incentive fees, lowered its base dividend, and signaled a strategic pivot toward portfolio rotation and de-leveraging. Against that backdrop, investors are watching whether net investment income can stabilize, whether NAV erosion is moderating, and whether the new buyback authorization marks a turning point in shareholder returns. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Quarter in Detail
For the third quarter of 2026, ended September 30, 2026, Crescent Capital BDC reported net investment income of $0.37 per share, slightly above the $0.35 consensus estimate and down from $0.46 in the year-ago period. Net income was $0.27 per share. Total investment income declined to $36.9 million from $41.4 million a year earlier, while total net investment income fell to $13.7 million from $16.9 million.
Net asset value per share was $17.72 at quarter-end, down from $19.10 at December 31, 2025, reflecting unrealized losses tied to credit pressures in certain portfolio companies. The portfolio held investments in 190 companies with an aggregate fair value of approximately $1.56 billion. The weighted average yield on income-producing securities was 9.6%, with 98.2% of debt investments floating rate, and the weighted average cost of debt was 6.26%, resulting in a net debt-to-equity ratio of 1.36x. The company also declared a fourth-quarter base dividend of $0.34 per share and announced a $50 million share repurchase program.
Market Reaction and Investor Sentiment
Heading into this report, sentiment around CCAP had been cautious. The shares had declined meaningfully over the course of 2026 as investors digested a reduced base dividend, lower net investment income, and a series of unrealized losses that pressured book value. The third-quarter beat on net investment income per share, combined with the announcement of a $50 million buyback and a continued special dividend, offered a more constructive signal. Still, the year-over-year decline in investment income and the continued slide in NAV per share suggest investors remain focused on whether earnings durability can be restored. The combination of fee reductions, a reset dividend, and now a repurchase program indicates management is actively working to rebuild confidence, though the durability of the portfolio's earnings power remains the central question for the market.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors should watch several key factors. First is dividend coverage, the extent to which net investment income covers the regular dividend. With NII at $0.37 per share and the base dividend now set at $0.34, the company is signaling a more conservative, sustainable payout structure, and any further shifts in that relationship will be closely scrutinized.
Second, the trajectory of net asset value matters. NAV has declined through 2026 as certain non-accrual and watchlist investments, including some affected by tariff-related pressures, weighed on unrealized results. Stabilizing NAV will be a key signal that credit quality is improving.
Third, the new share repurchase program is notable. Buying back shares below book value can be accretive to NAV per share, and the participation of parent company Sun Life, which plans additional open-market purchases, reinforces alignment. Finally, investors should monitor portfolio activity, including deployment, repayments, and the weighted average yield, as well as broader rate conditions, since the overwhelmingly floating-rate portfolio is sensitive to changes in benchmark interest rates.
Using AI Tools in My Research Process
When analyzing BDCs like CCAP, I often rely on Tickeron’s AI Screener to quickly filter comparable names in the sector and spot shifts in technical and fundamental conditions. It helps me scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. This approach allows me to identify trade ideas and monitor opportunities more efficiently than manual screening alone.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CCAP in upward trend: price expected to rise as it breaks its lower Bollinger Band on October 16, 2026
CCAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 21 of 33 cases where CCAP's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on CCAP as a result. In 46 of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
The Moving Average Convergence Divergence (MACD) for CCAP just turned positive on October 27, 2026. Looking at past instances where CCAP's MACD turned positive, the stock continued to rise in 23 of 43 cases over the following month. The odds of a continued upward trend are 53%.
CCAP moved above its 50-day moving average on November 04, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where CCAP advanced for three days, in 174 of 304 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
Bearish Trend Analysis
The 10-day RSI Indicator for CCAP moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In 16 of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at 42%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CCAP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for CCAP entered a downward trend on October 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. CCAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 67 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 97 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.526) is normal, around the industry mean (2.412). P/E Ratio (-104.222) is within average values for comparable stocks, (-2.386). Projected Growth (PEG Ratio) (0.892) is also within normal values, averaging (1.319). Dividend Yield (0.145) settles around the average of (0.270) among similar stocks. P/S Ratio (51.282) is also within normal values, averaging (15.694).
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CCAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a company, which invests in secured and unsecured debt and related equity securities.
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