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The full picture on US leveraged finance fundamentals in Q4 2025.

Sub-investment grade issuers grew revenue at roughly half the rate of the average S&P 500 company in 2025 – and Q4 brought the first EBITDA margin decline in over two years, driven by rising cost of sales.

Octus tracked earnings across the full US leveraged finance universe so you don’t have to piece it together yourself.

US Leveraged Finance Q4 2025 Earnings Recap

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  • Revenue growth vs. S&P 500: Median sub-investment grade issuers grew at roughly half the pace of large-cap peers, with Telecom Services posting negative growth for six consecutive quarters
  • EBITDA margin pressure: Median margins fell to 19.96% in Q4, the first YoY decline in over two years, driven primarily by increased cost of revenue
  • Margin breakdown by line item: Gross profit, PF EBITDA, cash EBITDA, unlevered free cash flow, and core cash flow, with YoY, QoQ, and two-year variance
  • LL vs. HY universe comparison: How fundamentals diverge across the capital structure
  • Ratings and downgrades: Full coverage of US leveraged loan ratings trends and the issuers driving Q4’s downgrade activity

Compare with previous Earnings Recaps

US Leveraged Finance Earnings Recap Q3 2024

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US Leveraged Finance Earnings Recap Q2 2025

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US Leveraged Finance Earnings Recap Q1 2025

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