Blackrock Tcp Capital (NASDAQ:TCPC) Releases Quarterly Earnings Results, Misses Expectations By $0.03 EPS

Blackrock Tcp Capital (NASDAQ:TCPC) released its quarterly earnings data on Friday. The investment management company reported $0.26 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.03), Zacks reports. Blackrock Tcp Capital had a positive return on equity of 15.27% and a negative net margin of 4.20%.The business had revenue of $27.13 million during the quarter, compared to the consensus estimate of $46.99 million.

Here are the key takeaways from Blackrock Tcp Capital’s conference call:

• NAV declined 19% to $7.07 for the quarter, driven largely by markdowns in six investments that together accounted for ~67% ($1.11 per share) of the decline (notable contributors: Edmentum, Razor, SellerX, Renovo, Hylan, InMobi).
• Full-year adjusted NII fell to $1.22 per share (from $1.52 in 2024) and Q4 adjusted NAI was $0.25, with declines attributed to portfolio markdowns, non-accruals, lower base rates and tighter spreads (advisor waived ~ $0.02 per share of fees in Q4).
• The firm is actively repositioning the portfolio toward senior secured first‑lien loans, increasing first‑lien exposure to 87.4% and reducing average new investment size to $5.8M to lower concentration and credit risk.
• Liquidity and leverage improved — year‑end total liquidity was $570.2M (including $482.8M available borrowings), net regulatory leverage improved to 1.34x post‑year‑end after paydowns, and the company paid off the $325M 2026 unsecured notes on Feb 9, 2026.
• Board declared a Q1 dividend of $0.17 and the company repurchased ~749,410 shares (quarter and post‑quarter) at weighted average prices of $5.84 and $5.50, signaling capital return support for shareholders.

Blackrock Tcp Capital Stock Down 9.3%

Shares of TCPC stock traded down $0.42 during trading hours on Friday, reaching $4.09. 2,963,702 shares of the stock were exchanged, compared to its average volume of 954,190. The business’s fifty day moving average is $5.21 and its two-hundred day moving average is $5.87. The firm has a market capitalization of $347.00 million, a P/E ratio of -31.46 and a beta of 0.89. Blackrock Tcp Capital has a 12-month low of $4.05 and a 12-month high of $8.83. The company has a debt-to-equity ratio of 1.42, a current ratio of 14.55 and a quick ratio of 14.55.

Blackrock Tcp Capital Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 16.6%. The ex-dividend date of this dividend is Tuesday, March 17th. Blackrock Tcp Capital’s payout ratio is presently -769.23%.

Blackrock Tcp Capital News Summary

Here are the key news stories impacting Blackrock Tcp Capital this week:

• Positive Sentiment: Company declared a first‑quarter dividend of $0.17 per share and reported fourth‑quarter net investment income of $0.26 per share (GAAP filings and Form 10‑K were filed). BusinessWire: Financial Results
• Neutral Sentiment: Full earnings call transcript is available — useful for details on portfolio performance, credit marks and management’s outlook, which investors should review to assess sustainability of income and capital actions. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Company presented GAAP EPS of $0.95 for the quarter (includes realized/one‑time items) while reporting $27.12M in revenue and providing slide deck/press materials for the quarter. Investors should separate recurring net investment income from one‑time gains when forecasting future dividends. Quarterly Press Materials
• Negative Sentiment: On a core basis the quarter missed Street expectations: net investment income/earnings of $0.26 per share fell short of the Zacks consensus of $0.29, and revenue materially missed estimates (reported ~$27.1M vs. est. ~$47.0M) — a clear driver of selling pressure. Zacks: Earnings & Revenue Miss
• Negative Sentiment: Multiple law firms (Faruqi & Faruqi, Rosen, Pomerantz, Bernstein Liebhard, Portnoy, et al.) have issued investor notices about securities‑fraud class actions covering Nov 6, 2024–Jan 23, 2026; ongoing litigation risk can amplify downside and keep shares under pressure. PRNewswire: Faruqi Notice
• Negative Sentiment: Technical and flow factors are unfavorable: trading volume spiked well above average today and the shares are trading below both the 50‑day and 200‑day moving averages, increasing the likelihood of further near‑term selling. MarketBeat: Price & Volume Data

Analysts Set New Price Targets

Several equities analysts have weighed in on TCPC shares. Zacks Research downgraded shares of Blackrock Tcp Capital from a “strong-buy” rating to a “hold” rating in a report on Wednesday, February 4th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Blackrock Tcp Capital in a report on Monday, December 29th. Wells Fargo & Company decreased their price target on Blackrock Tcp Capital from $6.00 to $5.50 and set an “underweight” rating on the stock in a report on Monday, November 10th. Finally, Wall Street Zen upgraded Blackrock Tcp Capital from a “sell” rating to a “hold” rating in a research report on Sunday, November 2nd. Two analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $6.50.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. CIBC Bancorp USA Inc. purchased a new position in Blackrock Tcp Capital during the 3rd quarter worth $65,000. Cerity Partners LLC purchased a new position in Blackrock Tcp Capital during the fourth quarter worth about $70,000. Millennium Management LLC acquired a new stake in Blackrock Tcp Capital in the fourth quarter valued at about $73,000. Boothbay Fund Management LLC acquired a new stake in Blackrock Tcp Capital in the fourth quarter valued at about $75,000. Finally, Creative Planning purchased a new stake in Blackrock Tcp Capital in the 2nd quarter valued at approximately $85,000.

About Blackrock Tcp Capital

BlackRock TCP Capital Corp is a publicly traded business development company (BDC) listed on the NASDAQ under the ticker TCPC. Externally managed by BlackRock, the firm provides customized financing solutions to U.S. middle-market companies, with a focus on sponsor-backed transactions. Its core strategy centers on delivering current income and capital appreciation through a diversified portfolio of debt and equity investments across a variety of sectors, including consumer products, healthcare, business services and industrials.

Since its initial public offering in 2013, BlackRock TCP Capital has partnered with private equity sponsors to underwrite and structure senior secured first-lien loans, second-lien loans, mezzanine debt and select equity co-investments.