$130 million is now the total authorized under CION Investment Corporation's share repurchase program, after the board added $15 million during the Q2 2026 reporting cycle, bringing the prior authorization of $115 million to its current level. Net investment income for the quarter reached $0.29 per share, even as management announced plans to materially reduce new deal originations, with new commitments limited to follow-on investments in existing portfolio companies during what it described as a deleveraging phase.
Capital pivot: buybacks over originations
Management described CION's own stock as a more attractive deployment of capital than new market originations at current trading discounts to net asset value. NAV rose 3.5% in Q2, driven by mark-to-market appreciation in the equity portfolio following a recovery from Q1 headwinds. Management said it intends to be aggressive on repurchases depending on the timing of asset monetizations.
Net portfolio growth is expected to remain flat or decline for several quarters as the company works through the deleveraging process.
Deleveraging path
The target pro forma net leverage ratio is approximately 1.35x, to be reached through the repayment of Israeli bonds and secured credit facilities. A $115 million public Israeli bond is scheduled for full repayment by the end of the current month, with the company simultaneously shifting its debt mix toward unsecured instruments.
Over the quarter, CION sold more than $64 million in portfolio assets at approximately 99% of par, with buyers drawn from existing co-investors and syndicate members. Management cited the 99% execution as validation of the company's fair value marks. At 99 cents on the dollar, proceeds on $64 million of assets work out to roughly $63.4 million.
Credit quality and portfolio composition
Non-accrual levels declined on both a fair value and amortized cost basis during Q2, with no new names added to non-accrual status. Management noted that 85% of payment-in-kind income is structured from inception as a yield enhancement, reflecting origination design rather than borrower stress.
First lien investments account for 79% of the portfolio, with minimal exposure to the software sector. One existing credit, Thrill 1, declined in value after the company entered bankruptcy; emergence is expected in Q3.
Longview Power and David's Bridal
The pending sale of Longview Power is expected to produce meaningful net investment income and substantial cash proceeds for future distributions. Management framed the Longview monetization as a successful execution of the special situations strategy, at a significant premium to cost basis.
David's Bridal is being separated into two entities: a legacy retail business focused on cash flow, and a high-growth digital platform called Pearl. The decision reflects the different growth profiles of the two operations. Management said it is in active discussions with multiple parties on strategic transactions for each business on a standalone basis.