FS KKR reports $1.57 per share net loss, KKR to support buybacks and fee waivers

FS KKR Capital (NYSE:FSK) reported net investment income of $0.42 per share for the first quarter of 2026, meeting internal expectations for core earnings.

However, the company posted a net loss of $1.57 per share, primarily the result of $2 per share in net realized and unrealized losses on its investment portfolio.

This performance brought the company’s net asset value down to $18.83 per share as of March 31, 2026.

In a decisive move to stabilize the stock and signal confidence, FSK introduced a multi-pronged capital plan.

A subsidiary of KKR will make a $150 million cumulative convertible preferred investment in the company, providing a fresh infusion of equity.

Additionally, KKR has committed to a $150 million tender offer for FSK shares at $11 per share, while the FSK board has authorized a separate $300 million share repurchase program.

To further support shareholders, KKR has agreed to waive 50% of its subordinated income incentive fee for the next four quarters.

Despite the quarterly net loss, the board of directors declared a second-quarter 2026 distribution of $0.42 per share, which is payable on July 2, 2026, to stockholders of record as of June 17.