MFIC Stock: $0.31 Dividend, NAV $13.37 and Apollo Fees 2026

From Apollo Investment Corp. to MFIC, and the date that matters

MFIC lends mostly to US middle-market companies with less than $75 million of EBITDA. At June 30, 2026 its release shows 94% of the portfolio in first lien secured debt, 100% floating rate, 229 portfolio companies and a weighted average yield on the debt portfolio of 9.5%. It is externally managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management. Our explainer on business development companies covers the structure, and our page on Apollo Global Management's stock, Athene and fees covers the parent.

The history matters when you read old numbers. On August 1, 2022 the company changed its name from “Apollo Investment Corporation” to “MidCap Financial Investment Corporation”; the ticker went from AINV to MFIC on August 12, 2022. On November 3, 2022 the board moved the fiscal year end from March 31 to December 31, so the filings from the nine-month transition period ended December 31, 2022 onward are on calendar quarters. The company also has an 8.00% note listed on Nasdaq as MFICL.

As of October 16, 2026 the Form 10-Q for the quarter ended September 30, 2026 has not been filed, and the EDGAR index shows nothing at all after the June 30 Form 10-Q and the earnings 8-K of August 6, 2026. The Q3 10-Q was filed on November 7, 2023, November 7, 2024 and November 6, 2025, and the board declared a dividend on November 6, 2024 and November 4, 2025, a day or two before the results. That is a pattern, not a date the company has given. Every “current” number on this page is as of June 30, 2026 unless it says otherwise. We have no share price after June 30, 2026 from a primary source; check a live quote.

The dividend: from $0.38 to $0.31, and income that now covers it

The February 26, 2026 earnings release gave the reason: “we have re-assessed the long-term earnings power of the Company, and the Board has concluded that it was prudent to adjust the dividend at this time”. The release ties it to “changes in base rates and other factors”. NII still covered the old dividend that quarter: $0.39 for the December 2025 quarter was 103% of the $0.38 then being paid (our arithmetic).

The dividend column is the one declared with each quarter's results and paid in the following quarter; the $0.20 special distribution of August 2024 (see the merger section) is not included. The calendar-year view from the 10-K and the June 10-Q shows the same thing.

In dollars, first-half NII was $67.0 million against $53.6 million of distributions paid, 125% (our arithmetic). The excess did not reach NAV: first-half NAV fell $0.81 a share after the losses described below. The yield arithmetic: $0.31 a quarter is $1.24 a year, 9.3% of the June 30 NAV and 12.3% of the June 30 close of $10.08 (our arithmetic). The release repeats the standard warning: “There can be no assurances that the Board will continue to declare a base dividend of $0.31 per share.”

One caution on the coverage numbers. The NII per share since the cut is struck with no incentive fee, a point the fee section below explains. In the September 2025 quarter, the last one with a fee, the fee was $5.8 million, $0.06 a share (our arithmetic).

NAV per share: from $15.42 before the mergers to $13.37

NAV per share was $15.79 on March 31, 2022 and $15.41 on December 31, 2023. It stayed near $15.4 through the first half of 2024, then fell every quarter after the mergers, with the largest drops in the last three.

The 10-Q's financial highlights give the first-half bridge per share, and the 10-K gives the 2025 one (the columns do not foot exactly because of rounding):

The first-half loss of $1.28 a share is $111.4 million (net realized and unrealized). Of that, the 10-Q gives gross unrealized losses on investments of $119.7 million against gross gains of $21.2 million, and net realized losses of $12.9 million, of which $9.0 million was the write-off of Renovo. It describes the first half as “market-wide spread widening, concentrated in software and technology” plus company-specific weakness. The names that moved NAV most are in the table below. The company says software was 11.4% of the portfolio at fair value at December 31, 2025.

ChyronHego's -$27.7 million is 25% of the first-half net realized and unrealized loss of $111.4 million (our arithmetic). The 10-Q lists the ten largest second-quarter changes; the other six are between -$1.2 million and -$3.0 million.

The price: 75% of NAV, and a company buying its own stock

Quarter-end prices are in the 10-Qs' financial highlights. The stock traded close to NAV only around the mergers, and the June 30, 2026 discount is the widest in the table.

The company answered the discount with buybacks. The February 26, 2026 release said the board had authorized a new $100 million repurchase plan “which we expect to utilize aggressively”, and the plan was used up by April 13.

The first-half purchases were at a 20.45% discount to the average NAV per share, and cut the share count from 92,211,869 at December 31, 2025 to 82,372,628 at June 30, 2026, 10.7% (our arithmetic). Since the program began in August 2015 the company has repurchased 27.0 million shares for $375.0 million, and the release says the second-quarter purchases “fully utilized the existing capacity”. The at-the-market equity program signed on August 13, 2024 effectively expired on April 12, 2026 with no shares issued in the first half. On the other side of the ledger, on August 2, 2022 the company sold 1,932,641 shares at $15.52, that day's NAV, to an affiliate of MidCap Financial, with a two-year lock-up.

The 10-Q shows total return based on market price of -6.58% for the first half of 2026 (after distributions reinvested), against -0.87% in the first half of 2025.

The AFT and AIF mergers: ratios, dates and what they left behind

The mergers added 43.7% to net assets and 28.5 million shares to the count, and the filings let you follow every step.

The exchange ratios were set by net asset values measured on July 19, 2024, and the company's release of July 22 gives them.

What the mergers did to NAV. At closing, nothing, by design: each side was valued at NAV, and the ratios are the NAV quotients (14.73 / 15.43 = 0.9546 and 14.57 / 15.43 = 0.9443, our arithmetic, against the filed 0.9547 and 0.9441). The third-quarter 2024 release says NAV fell 0.5% from June 30 once the $0.20 special is excluded. What happened afterwards is the issue: MFIC's NAV per share is 13.4% lower than on July 19, 2024 (our arithmetic: $13.37 against $15.43). An AFT holder who kept the MFIC shares has a NAV claim of $12.76 for each old AFT share against $14.73 then, before any distributions received since, and an AIF holder $12.62 against $14.57. We are not assigning that loss to the mergers; the 10-Qs do not.

What came with the assets. The combined company had $3.07 billion of investments, $1.45 billion of net assets and a net leverage ratio of 1.13 times at closing (against 1.45 times at June 30, 2024), 93.8 million shares and 11 companies on non-accrual, “including 6 companies acquired from the CEF’s portfolios”. MFIC acquired $596 million of investments, of which $234 million were sold or repaid in the third quarter alone, and paid down $177 million of the funds' debt on the closing day. The adviser's stated plan was “exiting the acquired non-directly originated assets” and redeploying the capacity into loans originated by MidCap Financial. Net leverage went from 1.13 times to 1.54 times at June 30, 2026 as that capacity was used, and then as NAV fell.

What the accounting shows. The mergers were accounted for as asset acquisitions. MFIC valued the 28,527,003 shares issued at the July 19 close of $15.34, $437.6 million, against net assets acquired of $440.1 million, and booked the $2.5 million difference as a deemed contribution from the adviser. The adviser and the company also agreed that purchase-accounting amortization and accretion on the acquired assets is excluded from incentive fee calculations.

What it did to the fee base. The base management fee is a percentage of NAV, and net assets rose 43.7% to $1.45 billion at closing. Quarterly management fees were $4.4 million in the second quarter of 2024 and $6.1 million in the second quarter of 2025, up 38.5% (our arithmetic); they have fallen to $5.1 million as NAV fell. The stock closed at $15.14 on June 30, 2024 and $13.39 on September 30, 2024, 11.6% lower (our arithmetic); the filings do not say why.

Fees: the incentive fee that stopped

MFIC's fee formula is unusual, and it explains why NII per share has held up while NAV fell. The 10-Q gives the terms next to the terms of Apollo's non-traded BDC, whose own 10-Q we read for the comparison.

The mechanism: the income fee is computed on the current quarter and the eleven before it, and the cap subtracts net capital losses over that window. The company has recorded net realized and unrealized losses of $0.44 a share in 2024, $0.84 in 2025 and $1.28 in the first half of 2026 (financial highlights); the 10-Q does not publish the fee arithmetic, but it says: “incentive fees were not accrued in the current quarter, as the Company did not meet its total return threshold”. The quarterly record:

For the year 2025 the 10-K shows $24.2 million of management fees and $16.1 million of incentive fees, against $19.5 million and $21.5 million in 2024 and $17.4 million and $24.6 million in 2023, and states that no management or incentive fees were waived in any of the three years. The management fee in the June 2026 quarter, annualized, is 1.9% of June 30 net assets (our arithmetic); it is charged at 1.75% of the March 31 NAV of $1.176 billion, $5.1 million a quarter. The step from $4.4 million in the September 2024 quarter to $6.2 million in December is the merger: the fee follows NAV with a lag.

Two readings. First, a fee that switches off in a loss streak is a protection for holders, and the company says so: “We believe that MFIC’s fee structure is one of the most attractive among listed BDCs which helps mitigate the impact of losses.” Second, the same switch flatters today's NII: on our reading of the formula the fee can return when the look-back clears, and at the size of the September 2025 quarter that is about $0.06 a share (our arithmetic). The ratio of NII to average net assets was 11.31% annualized in the first half, a number the 10-Q gives and that the fee holiday helps.

Non-accruals: from 1.2% to a peak of 5.3%

A loan is placed on non-accrual when there is reasonable doubt that principal or interest will be collected in full. MFIC states the share of the portfolio at cost and at fair value every quarter.

On the June 30, 2026 balance sheet, investments are $3.06 billion at cost and $2.77 billion at fair value, so the 4.6% and 2.8% are roughly $141 million at cost and $78 million at fair value (our arithmetic from rounded percentages). The CEO's comment on the first quarter of 2025, when the share fell to 1.7%, was that results included “a reduction in non-accruals”; the share has since risen to 4.6% in five quarters. The 10-Q does not list the non-accrual companies in its discussion; the schedule of investments flags them with a footnote, and we did not sum it. PIK interest, which adds to the balance instead of paying cash, was $8.1 million in the first half, 5.8% of investment income (our arithmetic from the cash-flow disclosure), against $9.9 million a year earlier.

For comparison inside the census, our BDC non-accrual census puts MFIC among ten listed BDCs above 3% at cost, and our list of BDC stocks shows its leverage and asset coverage next to the others.

Leverage, the equity covenant and the debt ladder

Debt to equity was 1.58 times at June 30, 2026, net leverage 1.54 times and asset coverage 163% against the legal minimum of 150%.

Leverage rose while debt fell, because NAV fell faster: debt outstanding was $2.00 billion at December 31, 2025 and $1.74 billion at June 30, 2026, while net assets went from $1.31 billion to $1.10 billion. The debt:

The point most readers miss is in the revolving credit facility. Among its covenants the 10-Q lists a minimum stockholders' equity of $1,000,000 thousand plus 25% of the net proceeds of equity sold after April 1, 2025, and a minimum asset coverage of 1.5 to 1. The share counts reconcile exactly with the buybacks (93,780,278 at September 30, 2024 less 476,656, 1,091,753, 7,084,020 and 2,755,221 repurchased is 82,372,628, our arithmetic), so no shares were issued after April 1, 2025 and the second leg adds nothing we can see. Net assets at June 30 were $1,101.3 million, $101.3 million above the floor, 9.2% of net assets (our arithmetic). At 82.4 million shares, $1.0 billion is $12.14 a share, 9.2% below the June 30 NAV of $13.37 (our arithmetic). Buybacks reduce equity too: the $107.9 million spent in six months is about the size of the margin left. The company has said the repurchase capacity is fully used and that “we will make capital allocation decisions based on leverage and market conditions”.

We do not know how the lenders would treat a breach; the 10-Q does not say, and a covenant floor is not a forecast. It is the number to watch next to the 150% asset coverage line, where the cushion is 13 points.

Interest and other debt expenses were $27.1 million in the June quarter against total investment income of $68.2 million, 39.7% (our arithmetic), and income fell 16.0% from $81.2 million a year earlier as the average yield on the debt portfolio went from 10.5% to 9.5% and the book shrank.

Merx, the shrinking book and software

MFIC's aircraft leasing subsidiary, Merx Aviation Finance, has been repaying. Its share of the portfolio went from 5.6% at June 30, 2025 to 3.3% in September after a $97 million repayment, then $7.5 million in the December quarter, $22 million in the March quarter (2.7% of the portfolio) and $12.5 million in the June quarter (2.5%). The company called the repayments a de-risking at the time. The proceeds have not gone into new loans: in the second quarter MFIC made $47.2 million of investments and had $128.3 million of repayments and $79.1 million of sales, a net -$160.2 million, and the portfolio was 229 companies against 249 a year earlier. Investments at fair value were $2.77 billion at June 30, 2026 against $3.33 billion a year earlier (the release's rounded figures). In the first quarter of 2026 the CEO said that, given the discount, the company “prioritized allocating capital toward stock repurchases rather than deploying capital into new investments”.

Same sponsor, two wrappers: MFIC and Apollo Debt Solutions

Apollo also runs a non-traded BDC, Apollo Debt Solutions (ADS), whose fees are in the comparison above and whose redemptions we cover in our ADS page. The two are different products, but the 10-Qs allow a plain comparison at June 30, 2026: ADS had 0.8% of its investments on non-accrual at cost and 0.4% at fair value against MFIC's 4.6% and 2.8%, and a lower base fee of 1.25% of net assets. MFIC's November 2024 release credits the “significant volume of loans originated by MidCap Financial” as a sourcing advantage. The comparison is of reported figures; the portfolios differ in mix and vintage and the 10-Qs do not say why the non-accrual rates differ. One difference is visible in how the shares are priced: MFIC's by the market every day, at 75.4% of NAV on June 30, ADS's at a NAV that its 10-Q says is determined as of the last day of each calendar month. Our list of non-traded BDCs shows where ADS sits among the others.

What changed in the filings and what comes next

Since the 2025 Form 10-K, four things changed: the dividend (cut in February, unchanged in May and August), the buyback (a $100 million program started and finished), non-accruals (a peak of 5.3% at cost in March, 4.6% in June) and the 2026 Notes (repaid July 16). The next filing is the Form 10-Q for September 30, 2026, which on the past pattern lands in the first week of November together with the earnings release and the dividend declaration. The numbers that settle the open questions on this page:

• NII per share against $0.31, and whether the incentive fee stays at zero.
• NAV per share against $13.37, and how ChyronHego, Midwest Vision and New Era Technology are marked.
• The non-accrual share against 4.6% and 2.8%.
• Net assets against the $1.0 billion covenant floor, and the share count after any further buyback.
• Net leverage against 1.54 times, and whether the Q3 release mentions a new repurchase plan.
• The February 26, 2026 release said: “With respect to the public vehicles we manage across different asset classes, we have been active in evaluating potential strategies and options with the objective of maximizing realizable value for stockholders.” The sentence names no transaction, and the EDGAR index to August 6, 2026 shows no filing describing one.

What a holder or reader can do with this

This is a checklist built from the filings, not a recommendation.

• Put NII next to the dividend in dollars. First half: $67.0 million against $53.6 million paid. Then ask how much of the cushion is the fee holiday: about $0.06 a share at the size of the September 2025 fee.
• Read the 10-Q's non-accrual footnote in the schedule of investments before the headline percentage, and compare fair value with cost (90.5% for the whole portfolio).
• Check the price against the latest NAV on the day you look. The last NAV in a filing is $13.37 at June 30; the next is due in early November. The 24.6% discount in the table is a June 30 snapshot.
• Watch the share count. It fell 10.7% in six months; buybacks add to NAV per share only while the price stays below NAV, and the equity covenant sets how far equity can fall.
• If you also hold a non-traded Apollo vehicle, the ADS and APO pages above show its fee, redemption and leverage terms; for other listed names see Golub Capital BDC, Ares Capital and Prospect Capital.
• Tax. The split between ordinary income and return of capital is on your Form 1099-DIV; the 10-Q says the character of 2026 distributions, which may include return of capital, is set when the tax return is filed. We do not give tax advice.

This is analysis of public documents, not investment, legal or tax advice. We do not give price targets or say whether to buy, sell or hold.

FAQ

All figures are from MidCap Financial Investment Corporation's SEC filings read on EDGAR on October 16, 2026 (CIK 1278752): the Forms 10-Q for June 30, 2024 (accession 0000950170-24-092876), September 30, 2024 (0000950170-24-122744), March 31, 2025 (0000950170-25-069131), June 30, 2025 (0000950170-25-106526), September 30, 2025 (0001193125-25-269512), March 31, 2026 (0001193125-26-208941) and June 30, 2026 (0001193125-26-335848); the Forms 10-K for 2023 (0000950170-24-020118) and 2025 (0001193125-26-076499); the earnings releases (Exhibits 99.1 to the 8-Ks) of February 26, 2024 (0001193125-24-046325), May 7 (-24-133256), August 7 (-24-196023) and November 7, 2024 (-24-252707), February 25 (0001193125-25-035227), May 12 (-25-117794), August 11 (-25-178045) and November 6, 2025 (-25-269805), and February 26 (0001193125-26-076894), May 6 (-26-209081) and August 6, 2026 (-26-336509); the 8-Ks of November 7, 2023 (0001193125-23-272413), June 21, 2024 (-24-165342) and July 22, 2024 (-24-182213), with its press release; and, for the comparison, the Form 10-Q of Apollo Debt Solutions BDC (CIK 1837532) for June 30, 2026 (0001193125-26-341358). Ratios, sums, per-share equivalents and the covenant margin are our arithmetic; the covenant text is as the 10-Q states it and we do not know how it would be applied. This is analysis of public documents, not investment, legal or tax advice.