CION Investment Corporation Q1 FY2026 earnings call

• Mark Gatto: Investment income shortfall due to lower transaction fees, dividend income, higher interest expense. NAV decline mostly unrealized. Welcome scrutiny on private credit marks. Portfolio credit quality holds up. Repurchased ~1.1 million shares. • Gregg Bresner: Software exposure details. Q1 investment activity selective, fewer exiting repayments. New issue vs secondary market conditions. Q1 investment commitments and funded amounts. Unrealized mark-to-market declines and increases in portfolio. Nonaccruals decreased. • Keith Franz: Net investment income and total investment income decreased. Operating expenses increased due to higher interest expense. Debt mix and leverage details. Distribution timing and amounts changed to monthly. Baby bond offering and debt repayment details.

Investment income: Reported $0.25 per share for the first quarter, below monthly base distributions of $0.30 per share. Driven by lower transaction fees, lower dividend income, higher interest expense from refinancing. NAV: Declined 4.7% quarter-over-quarter to $13.11 per share, over 80% of downward movement unrealized due to market influences. Credit quality: Portfolio holds up well. Weighted average interest coverage 2.08x, weighted average net leverage 4.62x. Nonaccruals improved to 1.53% from 1.78%. Investment activity: Selective with new portfolio investments, focused on portfolio companies and share repurchases. Net funded investments increased by ~$28 million. Software exposure: 3 software portfolio companies, ~1.8% of portfolio fair value, no ARR loans.

• Intend to continue share repurchases and reduce overall leverage through debt repayments. • Expect to use remaining proceeds from baby bond offering and other proceeds to further reduce leverage over next few quarters. • Will consider rightsizing leverage levels when refinancing near-term maturity wall. • Second and third quarter monthly base distributions declared at $0.30 per share each, paid monthly.

• Market level influences, comparable public company valuations, and broader credit spread widening can cause unrealized mark-to-market movements. • Geopolitical developments and uncertain macro backdrop pose risks. • New issue market has lower coupon spreads, higher leverage levels, looser credit documents which may not be ideal. • Stress in private credit market could impact portfolio, although no broad-based deterioration seen in middle market borrowers currently.

Q: Erik Zwick asked about leverage reduction target and time frame, Lux Credit Consultants sale price, pipeline of originations, and David's Bridal's Pearl Marketplace.

A: Keith Franz said target leverage range around 1.30 - 1.35, will take time to get there. Sale price consistent with 3/31 fair value mark. Gregg Bresner said being choosy with new investments, seeing attractive opportunities but M&A affected by macro and rates, Pearl Marketplace is ramping