FS KKR Capital Corp (FSK) is a prominent diversified closed-end management investment company that specializes in providing tailored financial solutions to middle-market businesses. Leveraging its strategic partnership with KKR, a global leader in investment management, FSK has access to a broad spectrum of investment opportunities, spanning senior and subordinated debt as well as equity interests. The company's strong focus on yield generation and capital preservation is supported by rigorous credit underwriting and proactive portfolio management practices, positioning it to deliver attractive risk-adjusted returns. With a demonstrated history of successfully deploying capital across diverse economic conditions, FSK is adept at navigating complex market dynamics and capitalizing on emerging growth prospects.
| Revenue (TTM) | $1.31B |
| Gross Profit (TTM) | $1.31B |
| EBITDA | — |
| Operating Margin | 73.10% |
| Return on Equity | -6.57% |
| Return on Assets | 4.59% |
| Revenue/Share (TTM) | $4.70 |
| Book Value | $18.30 |
| Price-to-Book | 0.60 |
| Price-to-Sales (TTM) | 2.17 |
| EV/Revenue | 94.42 |
| EV/EBITDA | — |
| Quarterly Earnings Growth (YoY) | 33.80% |
| Quarterly Revenue Growth (YoY) | -27.10% |
| Shares Outstanding | $276.34M |
| Float | 0 |
| % Insiders | 0.19% |
| % Institutions | 41.68% |
Volatility is currently expanding
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PHILADELPHIA and NEW YORK, Oct. 8, 2026 /PRNewswire/ --FS KKR Capital Corp. (NYSE: FSK) ("FSK" or the "Company") announced today that its board of directors has declared (i) a fourth quarter 2026 distribution on shares of the Company's common stock of $0.44 per share and (ii) a special distribution on shares of the Company's common stock of $0.20 per share, which represents a portion of the Company's estimated undistributed taxable income. FSK also announced that it will host its third quarter 2026 results conference call via live webcast on Thursday, November 5, 2026 at 9:00 a.m.
FSK KKR Capital Corp. trades at a 33% discount to NAV but faces persistent credit quality issues and NAV erosion. Despite recent outperformance and a double-digit yield, FSK's high non-accruals and declining investment income raise concerns about dividend sustainability. Management's incentive fee waiver and continued high non-accruals signal elevated risk of another dividend cut in the near term.
FSK remains a hold, despite a recent 14% price jump post-Q2 2026 earnings. FSK's NAV dropped over $0.50 per share in one quarter, driven by realized and unrealized portfolio losses. Dividend coverage is narrow and currently aided by a temporary incentive fee waiver, which expires after three more quarters.
High-yield credit vehicles look easy on the surface: Buy the ticker, collect the check, repeat.
The Dividend Harvesting Portfolio has achieved a 46.73% ROI with $3,219.84 forward annualized dividend income and a 7.81% yield. Recent additions include Starwood Property Trust (STWD) and FS KKR Capital Corp (FSK), both offering double-digit yields and trading at significant discounts. I expect continued outperformance as AI-driven productivity boosts big tech and the broader market, with dividend income on track to surpass $5,000 annually.
FS KKR Capital faces valuation pressure after two consecutive dividend cuts in Q4'25 and Q1'26 and persistent asset quality concerns. FSK's non-accrual ratio remains elevated at 3.8%, and dividend coverage is just 100%, signaling ongoing payout risk. I maintain a 'Hold' rating with a slightly negative outlook, citing potential for a dividend reset if loan quality does not improve and coverage drops below 100%.
FS KKR Capital Corp. is upgraded to a buy after Q2 2026 results showed the first sequential NII growth in over a year. FSK trades at a -42% discount to NAV, with a fully covered 16.7% yield and a $300 million buyback program retiring shares at 59 cents on the dollar. Operational improvements include declining non-accruals, net leverage back within target, and expense reductions driving NII growth despite lower investment income.
FS KKR Capital Corp (FSK) Q2 2026 Earnings Call Transcript
FS KKR Capital (FSK) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to a loss of $0.6 per share a year ago.
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