The firm's profitability is highly erratic, with net margins plummeting to -115.81% in 2025Q4 due to the impact of unrealized portfolio depreciation on core investment income.
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 68.57M | 97.61M | 122.69M | -92.73M | 140.84M | 64.06M | -5.37M | -49.6M | 35.1M | 44.14M | 42.35M | 23M |
| Gross Margin % | 59.07% | 84.18% | 90% | 117.98% | 90.69% | 85.92% | -66.44% | 142.52% | 73.08% | 76.43% | 100% | 100% |
| Gross Profit Growth % | -29.76% | -20.44% | 232.31% | -165.84% | 119.85% | 1292.43% | 89.17% | -241.33% | -20.49% | 4.24% | 84.14% | - |
| Operating Expenses | 155.95M | 12.12M | 3.94M | 9.08M | 8.98M | 3.17M | 3.32M | 5.25M | 3.96M | 15.36M | 13.2M | 2.4M |
| OpEx % of Revenue | 134.34% | 10.45% | 2.89% | -11.55% | 5.78% | 4.26% | 41.05% | -15.08% | 8.25% | 26.6% | 31.17% | 10.43% |
| Selling, General & Admin | 7.26M | 11.33M | 4.55M | 7.23M | 6.83M | 3.18M | 3.33M | 5.46M | 3.2M | 15.36M | 13.2M | 2.4M |
| SG&A % of Revenue | 6.25% | 9.77% | 3.34% | -9.2% | 4.4% | 4.27% | 41.14% | -15.7% | 6.67% | 26.6% | 31.17% | 10.43% |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -87.39M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 40.48M | 29.15M | 20.6M |
| Operating Margin % | -75.28% | 73.73% | 87.11% | 129.53% | 84.9% | 81.66% | -107.49% | 157.6% | 64.82% | 70.08% | 68.83% | 89.57% |
| Operating Income Growth % | -202.22% | -28.01% | 216.64% | -177.21% | 116.56% | 800.5% | 84.15% | -276.19% | -23.09% | 38.87% | 41.5% | - |
| EBITDA | -87.39M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 7.27M | 560.07K | 0 |
| EBITDA Margin % | -75.28% | 73.73% | 87.11% | 129.53% | 84.9% | 81.66% | -107.49% | 157.6% | 64.82% | 12.58% | 1.32% | - |
| EBITDA Growth % | -202.22% | -28.01% | 216.64% | -177.21% | 116.56% | 800.5% | 84.15% | -276.19% | 328.4% | 1197.46% | - | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -33.21M | -28.59M | -20.6M |
| EBIT | -87.39M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 90.96M | 28.59M | 20.6M |
| Net Interest Income | 176.37M | 153.07M | 118.08M | 96.91M | 67.41M | 48.05M | 48.13M | 50.4M | 47.99M | -7.94M | -2.52M | 0 |
| Interest Income | 203.98M | 171.41M | 131.72M | 111.04M | 81.88M | 58.54M | 61.59M | 65.2M | 60.92M | 7.94M | 2.52M | 0 |
| Interest Expense | 27.61M | 18.34M | 13.63M | 14.13M | 14.47M | 10.5M | 13.46M | 14.8M | 12.93M | 0 | 0 | 0 |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -115M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 90.58M | -40.96M | 8.34M |
| Pretax Margin % | -99.07% | 73.73% | 87.11% | 129.53% | 84.9% | 81.66% | -107.49% | 157.6% | 64.82% | 156.83% | -96.72% | 36.29% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 384.79K | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0.42% | 0% | 0% |
| Net Income | -134.44M | 80.31M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 90.96M | -40.96M | 8.34M |
| Net Margin % | -115.81% | 69.26% | 87.11% | 129.53% | 84.9% | 81.66% | -107.49% | 157.6% | 64.82% | 157.5% | -96.72% | 36.29% |
| Net Income Growth % | -267.4% | -32.37% | 216.64% | -177.21% | 116.56% | 800.5% | 84.15% | -276.19% | -65.78% | 322.09% | -590.84% | - |
| Net Income (Continuing) | -115M | 85.49M | 118.75M | -101.81M | 131.86M | 60.89M | -8.69M | -54.85M | 31.13M | 90.58M | -40.96M | 8.34M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 119M | 0 | 0 |
| EPS (Diluted) | -1.05 | 0.86 | 1.74 | -2.21 | 3.94 | 1.88 | -0.30 | -2.27 | 1.76 | 5.61 | -2.96 | 1.02 |
| EPS Growth % | -222.09% | -50.57% | 178.73% | -156.09% | 109.57% | 726.67% | 86.78% | -228.98% | -68.63% | 289.53% | -389.35% | - |
| EPS (Basic) | -1.05 | 0.86 | 1.74 | -2.21 | 3.94 | 1.88 | -0.30 | -2.37 | 1.76 | 5.61 | -2.96 | 1.02 |
| Diluted Shares Outstanding | 128.03M | 93.38M | 67.18M | 46.89M | 33.43M | 32.35M | 28.63M | 24.16M | 17.69M | 16.21M | 13.82M | 8.16M |
| Basic Shares Outstanding | 128.03M | 93.38M | 67.18M | 46.89M | 33.43M | 32.35M | 28.63M | 23.15M | 17.69M | 16.21M | 13.82M | 8.16M |
| Dividend Payout Ratio | - | - | - | - | - | 66.16% | - | - | 184.03% | 38.32% | - | - |
CLO equity valuation volatility
As evidenced by the erratic quarterly revenue figures, including a negative $13.0 million reported in 2025Q4, ECCF's top-line performance remains highly sensitive to mark-to-market adjustments, complicating any assessment of organic growth durability within the underlying portfolio of CLO equity and junior debt tranches.
The extreme fluctuations in reported revenue suggest that GAAP accounting for effective yields is failing to provide a stable indicator of the fund's actual cash-generative capacity. Investors should monitor the divergence between these accounting figures and actual distributable cash flow to determine if the underlying credit assets are truly performing as expected.
Based on the most recent financial statements, ECCF's net margin has plummeted to -115.81%, a figure that highlights how unrealized portfolio depreciation and high management fee structures can rapidly overwhelm the gross profit generated from the fund's core investment income activities.
The significant gap between gross and net margins indicates that the fund's profitability is currently dictated more by external market valuation shifts than by operational efficiency. This structural profile suggests that the fund's bottom line is highly vulnerable to credit spread widening and subsequent mark-to-market write-downs.
According to historical income statement data, the massive discrepancy between net income and operating income, such as the -$94.3 million net loss in 2025Q1 despite positive operating income, underscores the volatility inherent in the fund's reliance on non-operating, mark-to-market adjustments for its bottom-line reporting.
The reliance on the effective yield method for income recognition may lead to periods of reported earnings that do not align with the actual cash distributions received from CLO holdings. Analysts should treat these net income figures with caution, as they appear to be heavily influenced by accounting estimates rather than realized cash flows.
As reported in recent filings, the persistent negative net margins and the potential for return-of-capital dividends warrant investigation, as these trends may indicate that the fund's distribution policy is not being fully supported by the underlying investment income generated from its CLO equity portfolio.
Short-sellers would likely focus on the disconnect between the fund's high distribution yield and its deteriorating net income profile. If the portfolio continues to experience valuation pressure, the sustainability of these payouts may become a primary concern for shareholders, potentially leading to further NAV erosion.
Quick answers to the most common questions about buying ECCF stock.
Eagle Point Credit Company Inc. (ECCF) reported a net loss of $134.4M for the fiscal year ending 2025.
Eagle Point Credit Company Inc. (ECCF) reported an operating income of $-87.4M, resulting in an operating profit margin of -75.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Eagle Point Credit Company Inc. (ECCF) generated $68.6M in gross profit for the year, representing a gross profit margin of 59.1%. This demonstrates the company's core pricing power and production efficiency.