MSC INCOME FUND ANNOUNCES FIRST QUARTER 2026 RESULTS

About this update from Msc Income Fund, Inc.

First  Quarter 2026 Net Investment Income of $0.35 Per Share First  Quarter 2026 Adjusted Net Investment Income (1) of $0.34 Per Share First  Quarter 2026 Adjusted Net Investment Income Before Taxes (2) of $0.36 Per Share Net Asset Value of $15.87 Per Share HOUSTON , May 7, 2026 /PRNewswire/ -- MSC Income Fund, Inc. (NYSE: MSIF) ("MSC Income" or the "Fund") is pleased to announce its financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights In commenting on the Fund's operating results for the first quarter of 2026, Dwayne L. Hyzak, MSC Income's Chief Executive Officer, stated, "We are pleased with the Fund's performance in the first quarter, given the backdrop of significant economic and geopolitical uncertainties. Despite these ongoing uncertainties, we are seeing an improved lending environment and significant opportunities in our private loan investment strategy, and we believe the Fund is well positioned to capitalize on and generate attractive returns on those investments. Based upon the quality of the Fund's existing investment portfolio, together with the favorable liquidity position and expanded regulatory leverage capacity which became effective at the end of January 2026 and the current investment pipeline, we remain excited about our future expectations for the Fund." First Quarter 2026 Operating Results The following table provides a summary of the Fund's operating results for the first quarter of 2026: The $0.9 million increase in total investment income in the first quarter of 2026 from the comparable period of the prior year was principally attributable to (i) a $2.0 million increase in interest income, primarily due to higher average levels of income producing investment portfolio debt investments, partially offset by a decrease in interest rates, primarily resulting from decreases in benchmark index rates on floating rate investment portfolio debt investments, and (ii) a $0.5 million increase in fee income, primarily due to an increase in fee income related to increased investment activity. These increases were partially offset by a $1.6 million decrease in dividend income, primarily due to a $1.5 million decrease in dividend income from the Fund's LMM portfolio companies. The $0.9 million increase in total investment income in the first quarter of 2026 is after the impact of a decrease of $0.2 million in certain income considered less consistent or non-recurring, primarily related to decreases of (i) $0.2 million in such dividend income and (ii) $0.2 million in such interest income from accelerated prepayment, repricing and other activity related to certain investment portfolio debt investments, partially offset by a $0.2 million increase in such fee income, in each case when compared to the same period in 2025. Total expenses, net of waivers, increased by $0.4 million, or 2.5%, to $16.8 million in the first quarter of 2026 from $16.4 million for the same period in 2025. This increase was principally attributable to (i) a $0.7 million increase in interest expense, (ii) a $0.3 million increase in base management fees and (iii) a $0.1 million increase in incentive fee on income, net of waivers, partially offset by a $0.6 million decrease in the ending accrual for the accrued capital gains incentive fee (3) as of March 31, 2026. The increase in interest expense is primarily related to an increase in average borrowings outstanding used to fund a portion of the growth of the Fund's investment portfolio, partially offset by decreased weighted-average interest rates on the Credit Facilities due to decreases in benchmark floating index interest rates and a decrease in the applicable interest rate spread on the SPV Facility resulting from the amendment of the SPV Facility in March 2025 (with the Credit Facilities and the SPV Facility each defined in the Liquidity and Capital Resources section below). The increase in base management fees is primarily the result of the Fund's increased average total assets, partially offset by the benefit of the lower base management fee percentage for the full quarter in the first quarter of 2026 compared to the benefit for a partial quarter in the first quarter of 2025 as a result of the Fund's entry into an amended advisory agreement (the "Amended Advisory Agreement") with the Adviser (defined below), effective upon the listing of the Fund's common stock on the New York Stock Exchange on January 29, 2025 (the "MSC Income Listing"). The increase in incentive fee on income, net of waivers, is the result of (a) an increase in the gross calculated incentive fee on income of $1.1 million, partially offset by (b) a $1.0 million voluntary waiver of incentive fee on income by the Adviser. The increase in the gross calculated incentive fee on income is a result of the Amended Advisory Agreement. The reduction in the capital gains incentive fee accrual (3) is due to the net fair value depreciation of the Fund's investments in the first quarter of 2026. The Fund's ratio of total non-interest operating expenses, excluding incentive fees, net of waivers, as a percentage of quarterly average total assets, or the Operating Expenses to Assets Ratio, decreased to 1.8% on an annualized basis for the first quarter of 2026, from 1.9% for the first quarter of 2025, primarily due to the benefit of the lower base management fee percentage in the first quarter of 2026 as discussed above. The $0.5 million increase in NII in the first quarter of 2026 from the comparable period of the prior year was principally attributable to an increase in total investment income, partially offset by an increase in total expenses, net of waivers, each as discussed above. NII on a per share basis was $0.35 per share for the first quarter of 2026, consistent with the first quarter of 2025. The $0.1 million, or $0.01 per share, decrease in ANII (1) in the first quarter of 2026 to $15.6 million, or $0.34 per share, from $15.7 million, or $0.35 per share, in the first quarter of 2025 was principally attributable to the same factors noted above for the change in NII, but excluding the impact of the $0.6 million decrease in the capital gains incentive fee accrual. The per share changes in NII and ANII (1) in the first quarter of 2026 from the comparable period of the prior year include the impact of a 3.2% increase in the weighted-average shares outstanding, primarily due to shares issued in connection with the MSC Income Listing and shares issued through the dividend reinvestment plan, partially offset by shares repurchased by the Fund, in each case since the beginning of the comparable period of the prior year. NII and ANII (1) on a per share basis in the first quarter of 2026 each include a decrease of $0.01 per share resulting from a decrease in investment income considered less consistent or non-recurring in nature compared to the first quarter of 2025, as discussed above. The $13.2 million net increase in net assets resulting from operations in the first quarter of 2026 represents a $2.7 million decrease from the first quarter of 2025. This decrease was primarily the result of (i) a $2.5 million increase in net tax provision on the net fair value change of the portfolio investments resulting from a net tax provision of $0.1 million in the first quarter of 2026 compared to a net tax benefit of $2.4 million in the comparable period of the prior year and (ii) a $0.6 million decrease in the net fair value change of the Fund's portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the decrease resulting from a net fair value decrease of $2.9 million in the first quarter of 2026 compared to a net fair value decrease of $2.3 million in the comparable period of the prior year, partially offset by a $0.5 million increase in NII as discussed above. The $2.9 million net fair value decrease in the first quarter of 2026 was the result of a net realized loss of $0.2 million and net unrealized depreciation (including the reversal of net fair value depreciation recognized in prior periods due to the net realized loss in the quarter) of $2.6 million. The $2.3 million net fair value decrease in the first quarter of 2025 was the result of a net realized loss of $21.1 million, partially offset by net unrealized appreciation of $18.8 million. The $0.2 million net realized loss from investments for the first quarter of 2026 was primarily the result of $3.7 million of realized losses on the full exits of two private loan portfolio investments, partially offset by a $3.1 million realized gain on the full exit of a private loan portfolio investment and a net realized gain on other private loan portfolio investments. The following table provides a summary of the total net unrealized depreciation of $2.6 million for the first quarter of 2026: Liquidity and Capital Resources As of March 31, 2026, the Fund had aggregate liquidity of $210.0 million, including (i) $15.6 million in cash and cash equivalents and (ii) $194.4 million of aggregate unused capacity under the Fund's corporate revolving credit facility (the "Corporate Facility") and the Fund's special purpose vehicle revolving credit facility (the "SPV Facility" and, together with the Corporate Facility, the "Credit Facilities"), which the Fund maintains to support its investment and operating activities. Several details regarding the Fund's capital structure as of March 31, 2026 are as follows: Investment Portfolio Information as of March 31, 2026 (5) The following table provides a summary of the investments in the Fund's private loan portfolio and LMM portfolio as of March 31, 2026: The Fund's total investment portfolio at fair value consists of approximately 60% private loan, 37% LMM, 2% middle market and 1% other portfolio investments. The fair value of the Fund's LMM portfolio company equity investments was 204% of the related cost basis of such equity investments, and the Fund's LMM portfolio companies had a median net senior debt (senior interest-bearing debt through the Fund's debt position less cash and cash equivalents) to EBITDA ratio of 2.5 to 1.0 and a median total EBITDA to senior interest expense ratio of 3.0 to 1.0. Including all debt that is junior in priority to the Fund's debt position, these median ratios were 2.6 to 1.0 and 2.9 to 1.0, respectively. (5)(6) As of March 31, 2026, the Fund's investment portfolio also included: As of March 31, 2026, investments on non-accrual status comprised 1.1% of the total investment portfolio at fair value and 4.2% at cost, and the Fund's total portfolio investments at fair value were 106% of the related cost basis. First Quarter 2026 Financial Results Conference Call / Webcast MSC Income has scheduled a conference call for Friday, May 8, 2026 at 11:00 a.m. Eastern time to discuss the first quarter 2026 financial results. (7) You may access the conference call by dialing 412-902-0030 at least 10 minutes prior to the start time. The conference call can also be accessed via a simultaneous webcast by logging into the investor relations section of the Fund's website at https://www.mscincomefund.com . A telephonic replay of the conference call will be available through Friday, May 15, 2026 and may be accessed by dialing 201-612-7415 and using the passcode 13759639#. An audio archive of the conference call will also be available on the investor relations section of the Fund's website at https://www.mscincomefund.com  shortly after the call and will be accessible until the date of MSC Income's earnings release for the next quarter. For a more detailed discussion of the financial and other information included in this press release, please refer to the MSC Income Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 to be filed with the U.S. Securities and Exchange Commission (the "SEC") ( www.sec.gov ) and MSC Income's First Quarter 2026 Investor Presentation to be posted on the investor relations section of the MSC Income website at https://www.mscincomefund.com . ABOUT MSC INCOME FUND, INC. The Fund ( www.mscincomefund.com ) is a principal investment firm that primarily provides debt capital to private companies owned by or in the process of being acquired by a private equity fund. The Fund's portfolio investments are typically made to support leveraged buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in diverse industry sectors. The Fund seeks to partner with private equity fund sponsors and primarily invests in secured debt investments within its private loan investment strategy. The Fund also maintains a portfolio of customized long-term debt and equity investments in lower middle market companies, and through those investments, the Fund has partnered with entrepreneurs, business owners and management teams in co-investments with Main Street Capital Corporation (NYSE: MAIN) ("Main Street") utilizing the customized "one-stop" debt and equity financing solutions provided in Main Street's lower middle market investment strategy. The Fund's private loan portfolio companies generally have annual revenues between $25 million and $500 million. The Fund's lower middle market portfolio companies generally have annual revenues between $10 million and $150 million. ABOUT MSC ADVISER I, LLC MSC Adviser I, LLC (the "Adviser") is a wholly-owned subsidiary of Main Street that is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. The Adviser serves as the investment adviser and administrator of the Fund in addition to several other advisory clients. FORWARD-LOOKING STATEMENTS MSC Income cautions that statements in this press release which are forward–looking and provide other than historical information, including but not limited to MSC Income's ability to successfully source and execute on new portfolio investments and deliver future financial performance and results, are based on current conditions and information available to MSC Income as of the date hereof and include statements regarding MSC Income's goals, beliefs, strategies and future operating results and cash flows. Although its management believes that the expectations reflected in those forward–looking statements are reasonable, MSC Income can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation: MSC Income's continued effectiveness in raising, investing and managing capital; adverse changes in the economy generally or in the industries in which MSC Income's portfolio companies operate; the impacts of macroeconomic factors on MSC Income and its portfolio companies' businesses and operations, liquidity and access to capital, and on the U.S. and global economies, including impacts related to pandemics and other public health crises, global conflicts, risk of recession, tariffs and trade disputes, inflation, supply chain constraints or disruptions and changes in market index interest rates; changes in laws and regulations or business, political and/or regulatory conditions that may adversely impact MSC Income's operations or the operations of its portfolio companies; the operating and financial performance of MSC Income's portfolio companies and their access to capital; retention of key investment personnel by the Adviser; competitive factors; and such other factors described under the captions "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" included in MSC Income's filings with the SEC ( www.sec.gov ). MSC Income undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.       Contacts: MSC Income Fund, Inc. Dwayne L. Hyzak, CEO, [email protected] Cory E. Gilbert, CFO, [email protected] 713-350-6000 Dennard Lascar Investor Relations Ken Dennard / [email protected] Zach Vaughan / [email protected] 713-529-6600 View original content: https://www.prnewswire.com/news-releases/msc-income-fund-announces-first-quarter-2026-results-302766077.html

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