Sound Point Meridian Capital, Inc. (SPMC) AI Stock Analysis

Sound Point Meridian Capital, LLC operates as a closed-end management investment company in the United States. Founded in 2022 and based in New York, New York, the company focuses on investing primarily in equity and mezzanine tranches of collateralized loan obligations. These investments are collateralized by portfolios consisting primarily of below-investment grade U.S. senior secured loans. The company employs 285 people and held its initial public offering in 2024.

In FY2024, revenue stood at $64.5M with net income of $63.6M, identical to FY2023 levels. Performance shifted in FY2025 as revenue fell 267.4% to -$108.0M and net income fell to -$126.2M, alongside an operating margin of 116.9%. Over the trailing twelve months, revenue reached $65.7M, but profit margin registered at -180.2% and EPS landed at -$6.15. In the latest quarter ended March 31, 2026, quarterly revenue fell 35.3% year-over-year, while quarterly earnings grew 75.8%.

As of March 31, 2026, Sound Point Meridian Capital held $5.8M in cash and short-term investments against total debt of $60.0M, resulting in net debt of $54.2M. The company had total assets of $374.5M and shareholders' equity of $198.7M, resulting in a debt-to-equity ratio of 0.30 and a current ratio of 1.46. In FY2025, operating cash flow and free cash flow turned positive to $6.7M, up from -$106.4M in FY2024, while dividends paid totaled $57.8M.

At a share price of $6.93, SPMC carries a market capitalization of $143.0M and an enterprise value of $185.2M. The stock trades at a forward P/E of 6.0x, below the 10.8x median of its US-listed Financial Services peers. Its price-to-sales ratio sits at 2.2x compared to the peer median of 3.2x, while price-to-book is 0.9x. Over the past year, SPMC shares fell 46.4%, underperforming the S&P 500 (SPY), which gained 16.8%.

Sound Point Meridian Capital pays a monthly dividend with an annual forward dividend of $1.33, representing a dividend yield of 19.19%. The payout ratio stands at 42.6%, and the company has paid dividends for 3 consecutive years. Its last ex-dividend date was December 15, 2026.

Wall Street coverage consists of 2 Strong Buy ratings and 2 Hold ratings, with 0 Buy, Sell, or Strong Sell ratings. The mean price target is $10.03, which is 44.7% above the last close of $6.93. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $53.4M and EPS of $1.16. Over the last 4 quarters, the company recorded 0 EPS beats, and its next earnings date is November 12, 2026.

This page is an AI-written research summary of Sound Point Meridian Capital, Inc. (SPMC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SPMC income statement, SPMC balance sheet, SPMC key metrics, SPMC analyst forecast, SPMC chart. See the SPMC stock overview for the latest quote and news.