FS KKR Capital (NYSE:FSK) Issues Quarterly Earnings Results

11 May 2026, 15:38 by Jessica Moore · The Cerbat Gem

FS KKR Capital (NYSE:FSK – Get Free Report) announced its quarterly earnings results on Monday. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.03), FiscalAI reports. The firm had revenue of $304.00 million for the quarter, compared to analyst estimates of $316.81 million. FS KKR Capital had a return on equity of 5.21% and a net margin of 0.72%.The firm’s quarterly revenue was down 24.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.65 EPS.

Here are the key takeaways from FS KKR Capital’s conference call:

FSK and KKR announced a coordinated support package including a $150M fixed‑price tender at $11, a $150M convertible perpetual preferred (5% cash / 7% PIK, conversion tied to the $18.83 NAV), a $300M share repurchase authorization, and a 4‑quarter waiver of 50% of KKR’s subordinated income incentive fee to help stabilize the stock and distributions.
FSK reported a 9.9% NAV decline (ending NAV $18.83) and GAAP net investment income of $0.42 per share; name‑specific credit events (e.g., Medallia marked to $0.54, ATX, PRG, Affordable Care) and higher non‑accruals (8.1% cost / 4.2% fair value) drove the weakness.
Management plans to shrink and de‑risk the balance sheet — reducing new originations, focusing on first‑lien/asset‑based finance, targeting deleveraging while executing buybacks, and expecting >$500M net repayments in Q2 with pro‑forma liquidity of ~$2.3B.
Portfolio backdrop: ~60% first‑lien (≈69% look‑through including JV), senior secured ~64–73%, software & services ~16% across 52 issuers with an internal AI‑risk review showing ~86% of the portfolio as low AI risk and median LTV ~38%, which management says supports credit resilience but could lengthen hold periods.

FS KKR Capital Price Performance

Shares of FSK traded down $0.06 during mid-day trading on Monday, hitting $10.78. The company’s stock had a trading volume of 4,914,880 shares, compared to its average volume of 3,729,846. The firm has a 50-day simple moving average of $10.66 and a 200 day simple moving average of $13.27. FS KKR Capital has a 1-year low of $9.72 and a 1-year high of $22.68. The company has a current ratio of 3.05, a quick ratio of 3.05 and a debt-to-equity ratio of 1.31. The firm has a market capitalization of $3.02 billion, a P/E ratio of 360.17 and a beta of 0.85.

FS KKR Capital Announces Dividend

The firm also recently announced a special dividend, which was paid on Thursday, April 2nd. Stockholders of record on Wednesday, March 18th were paid a dividend of $0.03 per share. This represents a dividend yield of 118.0%. The ex-dividend date of this dividend was Wednesday, March 18th. FS KKR Capital’s dividend payout ratio is 6,000.00%.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on FSK shares. JPMorgan Chase & Co. reduced their price target on shares of FS KKR Capital from $13.00 to $9.50 and set a “neutral” rating on the stock in a research note on Friday, March 13th. Royal Bank Of Canada lowered their price target on FS KKR Capital from $15.00 to $13.00 and set a “sector perform” rating for the company in a research report on Monday, April 6th. Truist Financial decreased their target price on FS KKR Capital from $17.00 to $11.00 and set a “hold” rating on the stock in a research note on Wednesday, March 4th. Wall Street Zen downgraded FS KKR Capital from a “hold” rating to a “sell” rating in a research report on Saturday, February 28th. Finally, B. Riley Financial cut their price target on shares of FS KKR Capital from $17.50 to $11.00 and set a “neutral” rating on the stock in a research note on Tuesday, March 3rd. Seven investment analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $11.08.

Get Our Latest Analysis on FS KKR Capital

Insider Activity at FS KKR Capital

In other FS KKR Capital news, insider Daniel Pietrzak acquired 5,000 shares of the stock in a transaction that occurred on Friday, February 27th. The shares were purchased at an average cost of $11.25 per share, with a total value of $56,250.00. Following the purchase, the insider owned 64,800 shares in the company, valued at approximately $729,000. The trade was a 8.36% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 0.18% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of FSK. Sunbelt Securities Inc. boosted its position in FS KKR Capital by 13.7% during the 4th quarter. Sunbelt Securities Inc. now owns 59,903 shares of the company’s stock worth $887,000 after purchasing an additional 7,203 shares during the period. Strive Financial Group LLC acquired a new position in FS KKR Capital in the 4th quarter worth $50,000. Mercer Global Advisors Inc. ADV boosted its position in FS KKR Capital by 72.8% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 128,097 shares of the company’s stock valued at $1,897,000 after buying an additional 53,978 shares during the last quarter. Summit Global Investments grew its stake in shares of FS KKR Capital by 28.8% during the fourth quarter. Summit Global Investments now owns 37,399 shares of the company’s stock valued at $554,000 after acquiring an additional 8,352 shares in the last quarter. Finally, Elliott Investment Management L.P. purchased a new stake in shares of FS KKR Capital during the fourth quarter worth about $3,922,000. 36.26% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about FS KKR Capital

Here are the key news stories impacting FS KKR Capital this week:

Positive Sentiment: The company declared a second-quarter distribution of $0.42 per share, signaling it is still returning cash to shareholders despite the current pressures. FS KKR Capital Corp. Announces First Quarter 2026 Results and Strategic Value Enhancement Actions; Declares Second Quarter 2026 Distribution of 0.42 per share
Positive Sentiment: KKR Alternative Assets said it plans to launch a $150 million tender offer for FSK common stock and provide a $150 million convertible preferred equity commitment, which could improve liquidity and support the stock. KKR Alternative Assets L.P. Announces Intention to Commence Cash Tender Offer for Up to 150000000 in Aggregate Amount of FS KKR Capital Corp. Common Stock and a 150000000 Convertible Preferred Equity Commitment to FS KKR Capital Corp.
Neutral Sentiment: FS KKR Capital reported first-quarter earnings of $0.41 per share on $304 million of revenue, and management also outlined strategic value-enhancement actions, but the earnings miss does not point to an immediate turnaround. FS KKR Capital stock page
Negative Sentiment: Results fell short of expectations, with EPS missing the consensus estimate and revenue also below forecasts, while revenue declined 24% year over year. FS KKR Capital (FSK) Q1 Earnings and Revenues Lag Estimates
Negative Sentiment: JPMorgan-led lenders reduced FSK’s credit facility by about $648 million and increased borrowing costs, highlighting tighter financing conditions as losses mount. JPMorgan Chase-led bank group reins in credit line to troubled KKR private credit fund as losses mount
Negative Sentiment: Multiple securities class-action announcements may add overhang and investor concern, though these lawsuits are not yet judgments. Bronstein, Gewirtz & Grossman LLC Urges FS KKR Capital Corp. Investors to Act: Class Action Filed Alleging Investor Harm

About FS KKR Capital

(Get Free Report)

FS KKR Capital Corp (NYSE:FSK) is a closed-end, externally managed business development company that primarily invests in private middle-market U.S. companies. The firm seeks to generate current income and capital appreciation by structuring investments in floating-rate senior secured loans, unitranche financings, second lien debt and mezzanine instruments. As a business development company, FSK provides financing solutions designed to support growth initiatives, acquisitions, leveraged buyouts and recapitalizations for privately held enterprises.

Established in 2018 through a strategic partnership between FS Investment Corporation and KKR Credit Advisors, a division of global investment firm KKR & Co Inc, FSK combines the credit underwriting capabilities of KKR’s global platform with FS’s expertise in private credit markets.