Carlyle Credit Income Fund (CCIF) reported fourth‑quarter 2025 results that fell short of analyst expectations, with a non‑GAAP earnings per share of $0.15 versus a consensus estimate of $0.1966 and revenue of $7.74 million against an estimate of $9.01 million. Net investment income for the quarter was $0.15 per common share, adjusted net investment income was $0.17, and core net investment income was $0.32. The fund’s net asset value per common share declined to $6.13 as of September 30, 2025, and the total fair value of investments was $192.2 million.
The Q4 2025 figures represent a decline from the prior year’s fourth‑quarter performance, where net investment income was $0.30 and core net investment income was $0.45, with a NAV of $7.64. Compared to the third quarter of 2025, net investment income was $0.19 and core net investment income was $0.35, with a NAV of $6.51. The drop in earnings and revenue reflects a softer CLO market and higher credit losses that reduced interest income and increased loss provisions.
CCIF will continue to pay a monthly dividend of $0.1050 per common share for December 2025, January, and February 2026, a level that is fully supported by core net investment income. The fund also declared a dividend of $0.1536 per share on its 7.375% Series D Term Preferred Shares for the same months, maintaining the preferred‑share payout schedule that investors rely on.
Principal Executive Officer Nishil Mehta explained that the quarter’s portfolio activity—five resets and two refinancings—was designed to extend reinvestment periods and strengthen the fund’s positioning amid evolving market conditions. The actions were part of a broader strategy to manage credit risk and preserve income flow in a tightening credit environment.
The earnings and revenue miss prompted a negative market reaction, as investors reassessed the fund’s near‑term value. The shortfall in earnings was driven by lower interest income and higher credit losses, while the revenue miss reflected weaker demand for CLO exposure and a decline in the fund’s underlying loan performance. The miss also highlighted the sensitivity of the fund’s income stream to macro‑economic shifts in the credit market.
In addition to the quarterly results, CCIF announced a $30 million credit facility, priced at SOFR + 3.25% and upgradable to $50 million, providing liquidity for future portfolio adjustments. The fund also issued 17,500 shares of its 7.25% Series E Convertible Preferred Shares on October 30, 2025, raising approximately $16.275 million to fund the redemption of all outstanding shares of its 8.75% Series A Preferred Shares on November 3, 2025.
Overall, the Q4 2025 results underscore the challenges CCIF faces in a tightening credit market. While the fund maintains its monthly dividend and has taken proactive portfolio actions, the earnings and revenue miss signals that the fund’s income generation is vulnerable to macro‑economic headwinds and that investors will closely monitor future performance for signs of recovery.
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