Nuveen Churchill Direct Lending Corp. reported financial results for the full year and fourth quarter ended December 31, 2025.

Nuveen Churchill Direct Lending Corp. (NYSE: NCDL) ("NCDL" or the "Company"), a business development company externally managed by its investment adviser, Churchill DLC Advisor LLC (the "Adviser"), and by its sub-adviser, Churchill Asset Management LLC ("Churchill"), today reported financial results for the full year and fourth quarter ended December 31, 2025.

Financial Highlights for the Quarter Ended December 31, 2025

Net investment income of $0.44 per share

Net realized and unrealized loss on investments of $(0.12) per share

Net increase in net assets resulting from operations of $0.32 per share

Net asset value ("NAV") per share of $17.72, compared to $17.85 per share as of September 30, 2025

Paid fourth quarter regular distribution of $0.45 per share on January 27, 2026, which represents a 10.1% total annualized distribution yield based on the fourth quarter NAV per share

Declares first quarter distribution of $0.40 per share, consisting of a regular distribution of $0.36 per share and a supplemental distribution of $0.04 per share

Board authorized a $50 million share repurchase program

"We are pleased to conclude 2025 with a strong quarter of financial results," said Ken Kencel, President and Chief Executive Officer of NCDL. "Our investment portfolio continues to demonstrate strength and stability, as we ended the year with only 0.5% of the total portfolio at fair value on non-accrual status. We are encouraged by the positive momentum in deal activity we experienced in the second half of last year, and we remain intensely focused on generating attractive risk adjusted returns for our shareholders."

"In 2025, NCDL delivered a return on equity of nearly 11% and paid $1.90 per share of distributions, reflecting ongoing, strong operating performance," said Shai Vichness, Chief Financial Officer and Treasurer of NCDL. "We have reset our regular quarterly distribution to a level that considers the current interest rate and spread environment. In conjunction with the reset of our dividend, we are announcing a new $50 million share repurchase program, which demonstrates our confidence in the overall strength of our portfolio."

Distribution Declaration and Share Repurchase Program

The Company's Board of Directors (the "Board") has declared a regular distribution of $0.36 per share and a supplemental distribution of $0.04 per share, payable on or around April 28, 2026 to shareholders of record as of March 31, 2026.

On February 12, 2026, the Board approved a share repurchase program (the "Company 10b5-1 Plan") authorizing the Company to purchase up to $50 million in the aggregate of its outstanding common stock in the open market at prices below NAV per share.

PORTFOLIO COMPOSITION

As of December 31, 2025, the fair value of the Company's portfolio investments was $2.0 billion across 227 portfolio companies in 26 industries compared to $2.0 billion as of September 30, 2025 across 213 portfolio companies in 26 industries.

As of December 31, 2025, the Company's portfolio based on fair value consisted of approximately 89.5% first-lien debt investments, 8.2% subordinated debt investments, and 2.3% equity investments. As of September 30, 2025, the Company's portfolio based on fair value consisted of 89.8% first-lien debt investments, 8.1% subordinated debt investments, and 2.1% equity investments.

As of December 31, 2025 and September 30, 2025, the weighted average Internal Risk Rating of the portfolio at fair value was 4.2 and 4.2 (4.0 being the initial rating assigned at origination), respectively. As of December 31, 2025, there were investments in four portfolio companies on non-accrual status representing 0.5% of total investments at fair value (or 1.2% of total investments at cost). As of September 30, 2025, there were investments in three portfolio companies on non-accrual status representing 0.4% of total investments at fair value (or 0.9% of total investments at cost).

PORTFOLIO AND INVESTMENT ACTIVITY

Full Year

For the year ended December 31, 2025, the Company funded $350.7 million of portfolio investments and received $456.2 million of proceeds from principal repayments and sales, compared to $863.6 million and $430.0 million, respectively, for the year ended December 31, 2024.

Fourth Quarter

For the three months ended December 31, 2025, the Company funded $80.4 million of portfolio investments and received $84.3 million of proceeds from principal repayments and sales, compared to $36.3 million and $61.3 million, respectively, for the three months ended September 30, 2025.

RESULTS OF OPERATIONS FOR THE FULL YEAR AND FOURTH QUARTER ENDED DECEMBER 31, 2025

Investment Income

Full Year

Investment income decreased to $207.9 million for the year ended December 31, 2025 from $224.0 million for the year ended December 31, 2024. As of December 31, 2025, the size of our portfolio decreased to $2.0 billion from $2.1 billion as of December 31, 2024, at cost. As of December 31, 2025, the weighted average yield of our debt and income producing investments decreased to 9.48% from 10.33% as of December 31, 2024, at cost, primarily due to overall tightening of spreads in newly originated investments, the refinancing or repricing of existing portfolio companies, and the decline in base interest rates.

Fourth Quarter

Investment income for the three months ended December 31, 2025 was $50.0 million compared to $57.1 million for the three months ended December 31, 2024.

Net Expenses

Full Year

Net expenses before excise taxes increased to $114.3 million for the year ended December 31, 2025 from $101.1 million for the year ended December 31, 2024, primarily due to an increase in management fees and income-based incentive fees. The increase in management fees was primarily attributable to the increase in the management fee base rate from 0.75% to 1.00%, effective March 31, 2025, pursuant to the terms of the Advisory Agreement. Additionally, effective March 31, 2025, the Adviser's waiver of incentive fees on income and on capital gains expired pursuant to the terms of the Advisory Agreement. For the year ended December 31, 2025, income-based incentive fees totaled $11.2 million, of which $2.3 million was waived during the first quarter of 2025 when the fee waiver was in effect. Interest and debt financing expenses decreased primarily due to a lower average interest rate, partially offset by higher average daily borrowings and one-time costs associated with debt facility refinancings completed during the first quarter of 2025.

Fourth Quarter

Net expenses before excise taxes increased to $28.2 million for the three months ended December 31, 2025 from $26.4 million for the three months ended December 31, 2024.

Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss) on Investments

For the year ended December 31, 2025, the Company recorded a net realized loss on investments of $(6.0) million, compared to a net realized loss of $(13.2) million for the year ended December 31, 2024. The net realized loss for the year ended December 31, 2025 was primarily driven by the restructuring of an underperforming debt position, partially offset by realized gains from full or partial repayments and sales of investments in portfolio companies. The Company recorded a net change in unrealized loss of $(21.6) million for the year ended December 31, 2025, compared to a net change in unrealized gain of $7.3 million for the year ended December 31, 2024. The increase in total net change in unrealized loss for the year ended December 31, 2025, compared to the total net change in unrealized gain for the year ended December 31, 2024, primarily resulted from decreases in fair value of certain underperforming portfolio companies, partially offset by the reversal of unrealized loss on a debt position that was restructured during the year.

For the three months ended December 31, 2025, the Company recorded a net realized gain on investments of $2.1 million compared to a net realized loss of $(11.7) million for the three months ended December 31, 2024. The Company recorded a net change in unrealized loss of $(7.5) million for the three months ended December 31, 2025 compared to a net change in unrealized gain of $11.3 million for the three months ended December 31, 2024.

Financial Condition, Liquidity and Capital Resources

As of December 31, 2025, the Company had $62.5 million in cash and cash equivalents and $1.1 billion in total aggregate principal amount of debt outstanding. Subject to borrowing base and other conditions, the Company had approximately $259.0 million available for additional borrowings under its revolving credit facility as of December 31, 2025. At December 31, 2025, the Company's debt to equity ratio was 1.27x (1.20x net debt to equity ratio) compared to 1.25x (1.20x net debt to equity ratio) at September 30, 2025.

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