FS KKR Capital (NYSE:FSK) Announces Quarterly Earnings Results

FS KKR Capital (NYSE:FSK) issued its quarterly earnings results on Thursday. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.01, FiscalAI reports. FS KKR Capital had a positive return on equity of 9.43% and a negative net margin of 28.52%.The business had revenue of $290.00 million for the quarter, compared to the consensus estimate of $286.75 million. During the same period in the prior year, the firm posted ($0.75) earnings per share.

Here are the key takeaways from FS KKR Capital’s conference call:

• Net asset value declined 2.8% to $18.30 per share, driven by a $0.56-per-share decline in portfolio valuations despite $0.44 per share of GAAP net investment income.
• Second-quarter net investment income was $0.44 per share, while adjusted net investment income was $0.43; management expects annualized net investment income of 8%–9% of NAV for the remainder of 2026.
• FSK reduced leverage, with debt-to-equity falling to 127% from 138%, and reported $3.5 billion of available liquidity. KKR also completed a $150 million share purchase and a $150 million preferred-stock investment, while FSK repurchased approximately $40 million of common stock through early third quarter.
• Portfolio rotation accelerated through roughly $500 million of third-party loan sales and $1.3 billion of net sales and repayments, helping reduce the portfolio by $735 million and shift its composition toward first-lien and senior-secured assets.
• Credit quality remains a concern: two investments entered non-accrual status, and non-accruals still represented 7.1% of the portfolio at cost and 3.8% at fair value, although both measures improved from the prior quarter.

FS KKR Capital Stock Performance

NYSE:FSK traded up $0.54 during mid-day trading on Friday, hitting $12.42. The company’s stock had a trading volume of 4,865,263 shares, compared to its average volume of 2,577,550. The business’s fifty day moving average is $10.75 and its two-hundred day moving average is $11.26. The stock has a market cap of $3.48 billion, a price-to-earnings ratio of -9.20 and a beta of 0.83. The company has a debt-to-equity ratio of 1.38, a current ratio of 2.00 and a quick ratio of 2.00. FS KKR Capital has a 1 year low of $9.72 and a 1 year high of $18.85.

FS KKR Capital Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, October 2nd. Shareholders of record on Wednesday, September 16th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This is a positive change from FS KKR Capital’s previous quarterly dividend of $0.42. This represents a $1.76 annualized dividend and a yield of 14.2%. FS KKR Capital’s dividend payout ratio is currently -85.28%.

Key FS KKR Capital News

Here are the key news stories impacting FS KKR Capital this week:

• Positive Sentiment: FSK reported second-quarter adjusted net investment income of $0.43 per share, exceeding the $0.42 consensus estimate, while revenue of $290 million also topped expectations of $286.75 million. Results improved substantially from the prior-year loss of $0.75 per share. FS KKR Capital Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The board declared a third-quarter distribution of $0.44 per share, up 4.8% from $0.42 previously and equivalent to an approximately 14.8% annualized yield. The dividend is payable October 2 to shareholders of record September 16. FS KKR Capital Announces Second Quarter Results and Distribution
• Positive Sentiment: Management expects 8%–9% annualized net investment income for the remainder of 2026 and is advancing share repurchases and portfolio rotation. Debt-to-equity declined to 127% from 138%, moving leverage closer to the company’s target range. FSK Expects 8% to 9% Annualized Net Investment Income
• Positive Sentiment: A Seeking Alpha analysis upgraded FSK to a “Buy,” reflecting a more favorable view of its income outlook, valuation and improving credit trends. FS KKR Time to Get Bullish Again
• Neutral Sentiment: Truist raised its price target from $11 to $12 but maintained a “Hold” rating, indicating limited expected upside at recent trading levels. Benzinga
• Negative Sentiment: Net asset value fell to $18.30 per share from $18.83, and FSK posted a second-quarter GAAP loss of $0.13 per share because of $0.56 per-share realized and unrealized investment losses. Continued portfolio losses and non-accrual assets remain important risks. FS KKR Capital Second Quarter Results

Hedge Funds Weigh In On FS KKR Capital

Several institutional investors and hedge funds have recently modified their holdings of FSK. Jessup Wealth Management Inc purchased a new position in FS KKR Capital during the fourth quarter worth about $26,000. Smartleaf Asset Management LLC increased its holdings in shares of FS KKR Capital by 201.2% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,678 shares of the company’s stock worth $40,000 after buying an additional 1,789 shares during the last quarter. Knott David M Jr acquired a new stake in shares of FS KKR Capital during the 4th quarter worth approximately $43,000. Strive Financial Group LLC purchased a new stake in shares of FS KKR Capital during the 4th quarter valued at approximately $50,000. Finally, Advocate Investing Services LLC purchased a new stake in shares of FS KKR Capital during the 4th quarter valued at approximately $59,000. Institutional investors and hedge funds own 36.26% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Weiss Ratings restated a “sell (d+)” rating on shares of FS KKR Capital in a research note on Tuesday, June 2nd. Keefe, Bruyette & Woods lowered their price target on FS KKR Capital from $15.00 to $11.00 and set a “market perform” rating for the company in a report on Thursday, April 16th. Truist Financial boosted their price target on FS KKR Capital from $11.00 to $12.00 and gave the stock a “hold” rating in a research note on Friday. Royal Bank Of Canada restated a “sector perform” rating and set a $11.00 price objective on shares of FS KKR Capital in a report on Tuesday, May 12th. Finally, Wells Fargo & Company decreased their price objective on shares of FS KKR Capital from $11.00 to $10.00 and set an “equal weight” rating for the company in a research report on Tuesday, May 12th. Six research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and an average price target of $10.93.

FS KKR Capital Company Profile

FS KKR Capital Corp (NYSE:FSK) is a closed-end, externally managed business development company that primarily invests in private middle-market U.S. companies. The firm seeks to generate current income and capital appreciation by structuring investments in floating-rate senior secured loans, unitranche financings, second lien debt and mezzanine instruments. As a business development company, FSK provides financing solutions designed to support growth initiatives, acquisitions, leveraged buyouts and recapitalizations for privately held enterprises.

Established in 2018 through a strategic partnership between FS Investment Corporation and KKR Credit Advisors, a division of global investment firm KKR & Co Inc, FSK combines the credit underwriting capabilities of KKR’s global platform with FS’s expertise in private credit markets.