MAIN STREET ANNOUNCES SECOND QUARTER 2025 RESULTS

Second Quarter 2025 Net Investment Income of $0.99 Per Share

Second Quarter 2025 Distributable Net Investment Income⁽¹⁾ of $1.06 Per Share

Net Asset Value of $32.30 Per Share

HOUSTON, Aug. 7, 2025 /PRNewswire/ — Main Street Capital Corporation (NYSE:MAIN) (“Main Street”) is pleased to announce its financial results for the second quarter ended June 30, 2025. Unless otherwise noted or the context otherwise indicates, the terms “we,” “us,” “our” and “the Company” refer to Main Street and its consolidated subsidiaries.

Second Quarter 2025 Highlights

• Net investment income of $88.2 million (or $0.99 per share), including excise tax and net investment income related income taxes of $5.2 million (or $0.06 per share)
• Distributable net investment income⁽¹⁾ of $94.3 million (or $1.06 per share), including excise tax and net investment income related income taxes of $5.2 million (or $0.06 per share)
• Total investment income of $144.0 million
• An industry leading position in cost efficiency, with a ratio of total non-interest operating expenses as a percentage of quarterly average total assets (“Operating Expenses to Assets Ratio”) of 1.4% on an annualized basis for the quarter and 1.3% for the trailing twelve-month (“TTM”) period ended June 30, 2025
• Net increase in net assets resulting from operations of $122.5 million (or $1.37 per share)
• Return on equity⁽²⁾ of 17.1% on an annualized basis for the quarter and 19.5% for the TTM period ended June 30, 2025
• Net asset value of $32.30 per share as of June 30, 2025, representing an increase of $0.27 per share, or 0.8%, compared to $32.03 per share as of March 31, 2025 and $0.65 per share, or 2.1%, compared to $31.65 per share as of December 31, 2024
• Declared regular monthly dividends totaling $0.765 per share for the third quarter of 2025, or $0.255 per share for each of July, August and September 2025, representing a 4.1% increase from the regular monthly dividends paid in the third quarter of 2024
• Declared and paid a supplemental dividend of $0.30 per share, resulting in total dividends paid in the second quarter of 2025 of $1.05 per share and representing a 2.9% increase from the total dividends paid in the second quarter of 2024
• Completed $209.3 million in total lower middle market (“LMM”) portfolio investments, including investments totaling $110.3 million in three new LMM portfolio companies, which after aggregate repayments of debt investments and return of invested equity capital resulted in a net increase of $108.4 million in the total cost basis of the LMM investment portfolio
• Completed $188.6 million in total private loan portfolio investments, which after aggregate repayments and sales of debt investments, return of invested equity capital and a decrease in cost basis due to realized losses resulted in a net decrease of $34.9 million in the total cost basis of the private loan investment portfolio
• Net decrease of $17.6 million in the total cost basis of the middle market investment portfolio

In commenting on the Company’s operating results for the second quarter of 2025, Dwayne L. Hyzak, Main Street’s Chief Executive Officer, stated, “We are pleased with our performance in the second quarter, which resulted in another quarter of strong operating results highlighted by an annualized return on equity of 17.1%, favorable levels of net investment income per share and distributable net investment income per share and another record for net asset value per share primarily driven by a significant net fair value increase, which includes the benefits of the largest realized gain in Main Street’s history. We believe that these continued strong results demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the continued underlying strength and quality of our portfolio companies, particularly those in our highly unique lower middle market investment strategy.”

Mr. Hyzak continued, “Our continued positive performance allowed us to increase the total dividends paid to our shareholders in the second quarter by 2.9% over the prior year, continuing our trend of increasing the dividends paid to our shareholders over the past few years, while also continuing to generate distributable net investment income per share which exceeds the total dividends paid to our shareholders in the second quarter. Our strong second quarter performance resulted in the declaration of another $0.30 per share supplemental dividend to be paid in September 2025, representing our sixteenth consecutive quarterly supplemental dividend, to go with the ten increases to our regular monthly dividends declared since the fourth quarter of 2021. We remain confident that our diversified lower middle market and private loan investment strategies, together with the benefits of our asset management business, our cost efficient operating structure and conservative capital structure, will allow us to continue to deliver superior results for our shareholders.”

Second Quarter 2025 Operating Results

The following table provides a summary of our operating results for the second quarter of 2025:

The $11.8 million increase in total investment income in the second quarter of 2025 from the comparable period of the prior year was principally attributable to (i) an $11.2 million increase in dividend income, primarily due to an $11.5 million increase in dividend income from our LMM portfolio companies and a $0.6 million increase in dividend income from our private loan portfolio companies, partially offset by a $0.5 million decrease in dividend income from our External Investment Manager (as defined in the External Investment Manager section below) and (ii) a $0.8 million increase in interest income, primarily due to higher average levels of income producing investment portfolio debt investments, partially offset by an increase in investments on non-accrual status and a decrease in interest rates on floating rate investment portfolio debt investments, primarily resulting from decreases in benchmark index rates. The $11.8 million increase in total investment income in the second quarter of 2025 is after the impact of an increase of $3.0 million in certain income considered less consistent or non-recurring, primarily related to (i) a $3.0 million increase in such dividend income and (ii) a $0.7 million increase in such interest income from accelerated prepayment, repricing and other activity related to certain investment portfolio debt investments, partially offset by a $0.7 million decrease in such fee income, in each case when compared to the same period in 2024.

Total cash expenses⁽⁴⁾ increased $4.6 million, or 11.6%, to $44.5 million in the second quarter of 2025 from $39.9 million for the same period in 2024. This increase in total cash expenses was principally attributable to (i) a $3.4 million increase in interest expense, (ii) a $0.7 million increase in cash compensation expenses⁽⁴⁾ and (iii) a $0.5 million increase in general and administrative expense. The increase in interest expense is primarily related to (i) an increase in average borrowings outstanding used to fund a portion of the growth of our investment portfolio and (ii) an increased weighted-average interest rate on our debt obligations resulting from the issuance of the June 2027 Notes (as defined in the Liquidity and Capital Resources section below) and the repayment of certain notes at maturity in May 2024, partially offset by a decreased weighted-average interest rate on our Credit Facilities (as defined in the Liquidity and Capital Resources section below) due to decreases in benchmark index rates and decreases to the applicable margin rates related to the amendments of our Credit Facilities in April 2025.

Non-cash compensation expenses⁽⁴⁾ increased $1.2 million in the second quarter of 2025 from the comparable period of the prior year, primarily driven by (i) a $0.6 million increase in deferred compensation expense and (ii) a $0.5 million increase in share-based compensation.

Our Operating Expenses to Assets Ratio (which includes non-cash compensation expenses⁽⁴⁾) on an annualized basis was 1.4% for the second quarter of 2025, an increase from 1.3% for the second quarter of 2024.

Excise tax expense increased $0.5 million and net investment income related federal and state income and other tax expenses increased $1.2 million in the second quarter of 2025 compared to the same period in 2024. The increase in excise tax is due to the increase in undistributed taxable income as of June 30, 2025 and the increase in net investment income related federal and state income and other tax expenses is due to an increase in taxable net investment income between the relevant periods.

The $4.3 million increase in net investment income and the $5.5 million increase in distributable net investment income⁽¹⁾ in the second quarter of 2025 from the comparable period of the prior year were both principally attributable to the increase in total investment income, partially offset by increased expenses and excise tax and net investment income related taxes, each as discussed above. Net investment income per share increased by $0.02 per share and distributable net investment income⁽¹⁾ per share increased by $0.03 per share for the second quarter of 2025 as compared to the second quarter of 2024, to $0.99 per share and $1.06 per share, respectively. These increases include the impact of a 3.6% increase in the weighted-average shares outstanding compared to the second quarter of 2024, primarily due to shares issued since the beginning of the comparable period of the prior year through our (i) at-the-market (“ATM”) equity issuance program, (ii) dividend reinvestment plan and (iii) equity incentive plans. Net investment income and distributable net investment income⁽¹⁾ on a per share basis in the second quarter of 2025 include a net increase of $0.02 per share and $0.03 per share, respectively, resulting from an increase in investment income and an increase in non-cash deferred compensation expenses, in both cases considered less consistent or non-recurring in nature compared to the second quarter of 2024, as discussed above.

The $122.5 million net increase in net assets resulting from operations in the second quarter of 2025 represents a $19.8 million increase from the second quarter of 2024. This increase was primarily the result of (i) a $7.0 million increase in the net fair value change of our portfolio investments resulting from the net impact of net realized gains/losses and net unrealized appreciation/depreciation, with the increase resulting from a net fair value increase of $33.5 million in the second quarter of 2025 compared to a net fair value increase of $26.5 million in the prior year, (ii) an $8.6 million benefit from the change in the net tax provision/benefit on the net fair value change of our portfolio investments resulting from a net tax benefit of $0.9 million in the second quarter of 2025 compared to a net tax provision of $7.7 million in the prior year and (iii) a $4.3 million increase in net investment income as discussed above. The $33.5 million net fair value increase in the second quarter of 2025 was the result of a net realized gain of $52.4 million, partially offset by net unrealized depreciation (including the reversal of net fair value appreciation in prior periods on the net realized gain) of $19.0 million. The $26.5 million net fair value increase in the second quarter of 2024 was the result of a net realized gain of $3.4 million and net unrealized appreciation of $23.0 million. The $52.4 million net realized gain from investments for the second quarter of 2025 was primarily the result of (i) a $55.6 million realized gain on the full exit of a LMM portfolio investment, (ii) $6.2 million of realized gains on the partial exits of two other portfolio investments and (iii) a $5.2 million realized gain on the full exit of a private loan portfolio investment, partially offset by (i) an $8.5 million realized loss on the full exit of a private loan portfolio investment and (ii) a $6.2 million realized loss on the restructure of a private loan portfolio investment.

The following table provides a summary of the total net unrealized depreciation of $19.0 million for the second quarter of 2025:

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