FS KKR Capital Corp. FSK

NYSE | Finance | Private credit
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Updated: 7 Sep 2026 Base analysis: 6 Aug 2026

The news check keeps the assessment current.

General analysis — not personal advice.

HOLD Partly clear

A cautious stance is appropriate until the Q2 report clarifies non-accrual trends.

Large credit write-downs, dividend cut and ongoing litigation justify the HOLD signal.

Market sentiment Negative ↓
Trend: Declining

The market showed a positive short-term reaction to the report but analysts remain cautious amid concerns over NAV erosion and long-term dividend coverage.

Risk assessment High
Dilution: Medium Recent convertible issuance but common equity raise unlikely
Jurisdiction: Low Operations primarily in the United States
Execution: High Repeated write-downs and dividend reductions

HOLD is the call. Negative is the market mood. High risk means a lot can go wrong.

Latest change
  • 7 Aug 2026 — Report shows revenue beat and portfolio actions that cut leverage, providing clarity on non-accruals following prior write-downs.

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About the company

FS KKR Capital Corp. is an externally managed Business Development Company providing senior secured and subordinated loans to middle-market private US companies. The portfolio is managed by FS/KKR Advisor and generates interest income primarily distributed as dividends.

Sector: Private credit
Type: Finance
Next report (Q3)
5 Nov 2026
Bull case

The stock trades at a large discount to NAV and KKR has demonstrated support through capital injection and fee waivers.

Bear case

Elevated non-accruals and large write-downs threaten both NAV and dividend sustainability.

Sensitivity analysis
Factor If it weakens If it strengthens
Share of non-accruals in the portfolio Rising non-accruals → further NAV erosion and dividend cut. Stabilized non-accrual share → NAV recovery and restored confidence.
Continued KKR support via fee waivers and capital Reduced support → higher costs and weaker balance sheet. Extended support → improved profitability and lower dilution risk.
Why this signal

Large credit write-downs, dividend cut and ongoing litigation justify the HOLD signal.

Recent news
  • The Q2 report was released on 6 August 2026 showing NII of $0.44 per share and NAV of $18.30. The company executed share buybacks, reduced leverage and set the dividend at $0.44 with ex-date 16 September. Insider purchases were reported in August and analysts from JPMorgan, RBC and Truist issued updated price targets.

Key figures

Revenue
Q2 2026
USD 290M
Net income
TTM
USD -550M
Cash
Q1 2026
USD 133M
Total debt
Q1 2026
USD 7,335M
Shares outstanding
Q2 2026
280M
EPS
TTM
USD -1.96
Exchange
NYSE
Type
Finance
Sector
Private credit
FS KKR Capital Corp. FSK
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