CION Investment Corporation is an externally managed business development company that invests in senior secured first-lien loans to U.S. middle-market companies, and the question for the next twelve months is whether the company can convert the $50 million increase to the share repurchase program, the deleveraging from 1.62x to 1.52x net debt-to-equity, the $125 million in JPM Credit Facility repayments, and the $30 million in new 7.50% and 8.00% senior unsecured notes into the kind of disciplined capital-management story the company has been telegraphing. The Q2 2026 print was the cleanest test of that thesis, and the cleanest signal is that co-CEO Mark Gatto said "this was a good quarter based on our key metrics - net asset value per share was up, net investment income was up, and non-accruals were down, with no new names placed on non-accrual and no new internal risk rating downgrades. Reflecting that confidence, our Board has authorized a $50 million increase to our existing share repurchase program, bringing the total to $130 million. We continue to believe our stock is significantly undervalued relative to our net asset value, and we are prepared to continue acting on that conviction." The strategic tension is the $0.62 quarterly EPS against the $7.33 recent share price, and the forward question is whether the NAV growth and the non-accrual improvement can sustain through the second half of 2026.
The NAV growth and the non-accrual improvement are the cleanest read on the operating quality, and the deleveraging is the proof. The Q2 2026 NAV per share was $13.57, up 3.5% from the $13.11 at March 31, 2026, primarily due to mark-to-market price increases to certain equity investments. The Q2 2026 investments on non-accrual status of 1.44% of the total investment portfolio at fair value and 4.41% of the total investment portfolio at amortized cost were down from 1.53% and 5.35% respectively as of March 31, 2026.
The Q2 2026 total investments at fair value of $1.65 billion in 82 portfolio companies across 23 industries, the Q2 2026 net debt-to-equity ratio of 1.52x down from 1.62x, the Q2 2026 net investment income per share of $0.29, the Q2 2026 EPS of $0.62, the Q2 2026 1,099,109 shares repurchased at an average price of $7.28 for $8.0 million, the 7,755,736 shares year-to-date repurchased at an average price of $9.44 for $73.2 million, the $50 million increase to the share repurchase program to $130 million, the $125 million JPM Credit Facility repayments, and the $30 million in new 7.50% 2029 and 8.00% 2031 senior unsecured notes anchor the print. The forward question is whether the NAV growth and the non-accrual improvement can sustain through the second half of 2026.