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Monroe Capital Corporation (NASDAQ:MRCC), a New York-incorporated business development company with a market capitalization of $143 million and a notable dividend yield of 15%, has announced a change in its independent registered public accounting firm. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 5.37, indicating robust financial health. The company’s Audit Committee has dismissed KPMG LLP as of Monday, and appointed Grant Thornton LLP in its place to audit the company’s consolidated financial statements for the fiscal year ending December 31, 2025.
The dismissal of KPMG, effective June 3, 2025, was decided in relation to a transaction involving the acquisition of a significant equity interest in Monroe Capital LLC’s affiliates by an affiliate of Wendel (EPA:MWDP) SE. Notably, for the fiscal year ended December 31, 2024, KPMG’s audit report on Monroe Capital’s financial statements did not contain any adverse opinion or qualifications. InvestingPro analysis shows the company has maintained dividend payments for 14 consecutive years, demonstrating consistent shareholder returns despite recent stock price decline of 19.5% year-to-date.
Throughout the fiscal year of 2024 and up until the dismissal, there were no disagreements or "reportable events" between Monroe Capital and KPMG that would have impacted KPMG’s audit report. KPMG has provided a letter, dated June 9, 2025, agreeing with the statements made by Monroe Capital in the SEC filing.
The appointment of Grant Thornton as the new auditor was also made on June 3, 2025. Prior to this appointment, Monroe Capital had not consulted with Grant Thornton on any accounting principles or transactions, nor were there any disagreements or reportable events with the newly appointed firm.
The information provided in this article is based on Monroe Capital Corporation’s recent SEC filing. For deeper insights into MRCC’s financial health, valuation metrics, and expert analysis, discover more with InvestingPro, which offers comprehensive research reports and additional ProTips for informed investment decisions.
In other recent news, Monroe Capital Corporation reported its first-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.19, missing the forecast of $0.273, while revenue came in at $11.64 million against a projected $13.88 million. Despite these results, Monroe Capital declared a $0.25 per share dividend, maintaining an annualized yield of 14.3%. The company’s total investment portfolio decreased to $430.6 million, and the weighted average effective yield dropped to 9.2%.
Additionally, Monroe Capital Corporation announced a second-quarter distribution of $0.25 per share, payable on June 30, 2025, to shareholders of record as of June 16, 2025. The company continues to manage its investment portfolio actively, leveraging $11.5 million in spillover income to support dividend payments. Analysts have raised questions about the sustainability of Monroe Capital’s dividend, given the contraction in the portfolio size and lower net investment income. Despite challenges, the company remains committed to maintaining shareholder value and exploring strategic partnerships, such as its recent collaboration with the Wendell Group.
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