FS KKR Capital: third-quarter net income falls nearly 67%

what happened

According to TradingView, which relied on the company's 10-Q quarterly report, FS KKR Capital's total investment income fell to $294M in the third quarter of 2026 from $373M a year earlier. Net income applicable to common stockholders dropped to $71M from $214M, and diluted earnings per share fell to $0.26 from $0.76.

The company linked the decline to a smaller investment portfolio and to investments placed on non-accrual status, which made up 3.4% of investments by fair value. Lower expenses, including an incentive-fee waiver, partly offset the drop in income. The portfolio's fair value stood at $11.3B across 234 portfolio companies.

The same TradingView report also covered Advanced Flower Capital, which swung from a loss to a profit: net income was $6.4M against a loss of $12.49M, and diluted earnings per share were $0.28.

why it matters

For investors in business development companies, the numbers matter because a steep drop in net income, combined with a shrinking portfolio and more troubled loans, can weigh on FS KKR's shares and shows how sensitive interest income is to borrower quality. Advanced Flower Capital's recovery, with its weighted average yield rising to 13.3% from 12.3%, reads differently and could support its shares.

market impact

FS KKR Capital shares: profit drop and more non-accrual loans pressure the stock

• ▼FS KKR Capital shares pressure down — net income fell about 67% on a smaller portfolio and loans placed on non-accrual

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