# CION Investment Q3 2026 Earnings Results

> CION Investment reduces debt to $897 million after Q3 2026 earnings.
- Title: CION Investment Q3 2026 Earnings Results · The Motley Fool
- Summary: CION Investment reduces debt to $897 million after Q3 2026 earnings. CION Investment lowered net debt-to-equity ratio to 1.30x by repaying $114.8 million in…
- Keywords: cion investment, q3 2026, earnings call, deleveraging, net debt to equity, distribution cut, joint venture, longview power, david's bridal, pearl business, The Motley Fool
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/11/05/cion-investment-cion-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-11-05T22:42:08+00:00
- Read time: 2 min
- Topics: cion investment, q3 2026, earnings call, deleveraging, net debt to equity, distribution cut, joint venture, longview power, david's bridal, pearl business, finance, money
## Deleveraging Progress
CION Investment reduced total debt from $1.17 billion to $897 million in Q3 2026.
## Net Debt-to-Equity Ratio
Net debt-to-equity ratio fell to 1.30x from 1.52x, reaching the low end of management's target range.
## Quarterly Distribution Cut
2027 base distribution reduced to $0.25 per share, a 17% decrease from Q4 2026's $0.30 per share.
## Joint Venture Formation
Sold $180.3 million in first-lien loans to Senior Loan Fund Partners joint venture at 99.8% of par.
## Bond Repayment Activity
Repaid $114.8 million in public Series A Senior Unsecured Notes at maturity on Aug 31, 2026.
## Credit Facility Termination
Terminated $200 million JPMorgan secured facility early, repaying in full.
## Portfolio Composition Shift
71.6% of portfolio now in senior secured first-lien investments, down from 77.2% in prior quarter.
## Nonaccrual Status
1.63% of portfolio at fair value and 4.85% at amortized cost, up from 1.44% and 4.41% in prior quarter.
## Investment Activity
Funded $72 million in follow-on investments across 11 existing portfolio companies.
## Total Investment Income
Total investment income fell to $48.3 million, a 3% decrease from $49.8 million in Q2.
## Sales and Repayments
Sold $256 million in loans at blended value of 99.6% of par, including $45 million in full repayments.
## Weighted Average Yield
Weighted average yield on debt and income-producing investments at amortized cost maintained at 10.6%.
## Liquidity Position
Reported $51 million in cash and $25 million in available credit facility capacity as of Sept 30, 2026.
## Risk Ratings
97.8% of portfolio risk-rated 3 or better, indicating full repayment expectations.
## Software Exposure
2% of total portfolio with no investments in annual recurring revenue (ARR) based loans.
## New Investment Yield
New direct first-lien investments funded at SOFR plus 6.1% yield.
## Interest Coverage Ratio
Interest coverage ratio at 1.82x for portfolio companies, down from 1.87x in Q2.
## Paid-In-Kind Income
81% of total PIK income from highly structured first-lien investments or incremental cash coupons.
## Median EBITDA
Median EBITDA for portfolio companies rose to $39.5 million from $33.7 million in Q2.
## David's Bridal Transaction
Nonbinding letter of intent for David's Bridal and Pearl business combination expected to close in Q4 2026 or Q1 2027.
## Key takeaway

CION Investment lowered net debt-to-equity ratio to 1.30x by repaying $114.8 million in bonds and terminating a credit facility, cutting quarterly distribution by 17%.