CION Investment

CION

Market cap $499M

The Fed's dovishness has been the key driver for the BDC sell-off. The idea is that lower interest rates should lead to lower dividends (i.e., BDCs cutting their dividend across the board). While it is a process that takes time, the current data show that many BDCs are well-positioned to safeguard their existing dividends.

CION, IVZ, TRTX and WPC stand out with strong shareholder yield, blending income, buybacks and debt reduction for portfolio defense.

CION Investment Corporation (CION) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

The BDC sector average discount to NAV is 15%. Yet, there are some players that trade at even 30%+ discounts and thus offer very compelling yields. The logic would tell that such BDCs are certainly meant for pure speculation.

CION Investment Corporation ( CION ) Q3 2025 Earnings Call November 6, 2025 11:00 AM EST Company Participants Charles Arestia - MD & Head of Investor Relations Michael Reisner - Co-Founder, Co-Chairman & Co-CEO Gregg Bresner - President & Chief Investment Officer Keith Franz - MD, CFO & Treasurer Conference Call Participants Erik Zwick - Lucid Capital Markets, LLC, Research Division Presentation Operator Greetings. Welcome to CION Investment Corporation Third Quarter 2025 Earnings Call.

CION Investment Corporation (CION) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.4 per share a year ago.

NEW YORK--(BUSINESS WIRE)--CION Investment Corporation (NYSE: CION) (“CION” or the “Company”) today reported financial results for the third quarter ended September 30, 2025 and filed its Form 10-Q with the U.S. Securities and Exchange Commission. CION also announced that, on November 3, 2025, its co-chief executive officers declared a fourth quarter 2025 base distribution of $0.36 per share, payable on December 15, 2025 to shareholders of record as of December 1, 2025. THIRD QUARTER AND OTHER.

Business development companies (BDCs) are facing pressure from expected Fed rate cuts and credit concerns, leading to declining net investment income and potential dividend reductions. Dividend cuts are never fun, but as BDCs, their operations are impacted significantly by interest rate changes and can still deliver outsized yields even after reductions. Even further, these pressures have also delivered much more attractive entry levels for considering adding to positions further or keeping on the watchlist.

CION Investment Corporation faces significant financial headwinds, with declining NAV, shrinking portfolio, and rising leverage compared to peers. Recent earnings missed expectations, with net investment income and bottom line both falling, failing to cover distributions, and raising concerns about dividend sustainability. Despite management's optimism and ongoing share buybacks, the risk of a dividend cut in the next 3-6 months remains high due to tight coverage and upcoming debt maturities.

CION Investment Corp (CION) faces significant headwinds, including declining earnings, a rising non-accrual rate, and trades at a deep discount to NAV. CION's dividend yield is high at 16.3%, but net investment income no longer covers the payout, raising concerns about dividend sustainability amid elevated interest rates. CION's portfolio is defensively structured with 85% first lien loans, but increased PIK interest income signals potential future portfolio deterioration and risk.