Financial Performance - For the quarter ended June 2025, PennantPark (PFLT) reported revenue of $63.5 million, reflecting a year-over-year increase of 30.9% [1] - The earnings per share (EPS) for the quarter was $0.25, down from $0.31 in the same quarter last year [1] - The reported revenue was below the Zacks Consensus Estimate of $65.19 million, resulting in a surprise of -2.59% [1] - The company experienced an EPS surprise of -10.71%, with the consensus EPS estimate being $0.28 [1] Key Metrics - Non-controlled, non-affiliated investments generated other income of $0.79 million, which was below the two-analyst average estimate of $1.08 million [4] - Interest from non-controlled, non-affiliated investments was reported at $50.86 million, slightly below the average estimate of $50.87 million, but represented a year-over-year increase of 47.6% [4] - Dividend income from non-controlled, non-affiliated investments was $0.55 million, exceeding the average estimate of $0.37 million, but showed a year-over-year decline of 28.5% [4] Stock Performance - Shares of PennantPark have returned -2.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of +2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - PennantPark (PFLT) reported quarterly earnings of $0.25 per share, missing the Zacks Consensus Estimate of $0.28 per share, and showing a decline from $0.31 per share a year ago, indicating a -10.71% earnings surprise [1] Financial Performance - The company posted revenues of $63.5 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.59%, compared to $48.51 million in the same quarter last year [2] - Over the last four quarters, PennantPark has surpassed consensus EPS estimates only once and topped consensus revenue estimates two times [2] Stock Performance - PennantPark shares have declined approximately 3.9% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current Zacks Rank for PennantPark is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $66.19 million, and for the current fiscal year, it is $1.18 on revenues of $260.33 million [7] - The trend of estimate revisions for PennantPark was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Financial - Investment Management industry, to which PennantPark belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

PART I. CONSOLIDATED FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Financial statements detail the company's position, operations, and cash flows, showing asset growth, increased income, and a lower NAV per share [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to $2.52 billion, but Net Asset Value per share decreased to $10.96 from $11.31 Consolidated Statements of Assets and Liabilities Highlights (in thousands, except per share data) | Metric | June 30, 2025 (unaudited) | September 30, 2024 | | :--- | :--- | :--- | | Total Investments at Fair Value | $2,403,515 | $1,983,504 | | Total Assets | $2,521,602 | $2,108,845 | | Total Liabilities | $1,434,089 | $1,231,551 | | Total Net Assets | $1,087,513 | $877,294 | | Net Asset Value per share | $10.96 | $11.31 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Investment income increased for both three and nine-month periods, but net unrealized losses led to lower net asset growth Key Operational Results (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2025 | Nine Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $63,502 | $48,505 | $192,449 | $130,831 | | Total Expenses | $38,877 | $27,295 | $112,827 | $71,085 | | Net Investment Income | $24,625 | $21,210 | $79,622 | $59,746 | | Net Increase in Net Assets | $19,298 | $16,920 | $48,852 | $70,499 | | Net Investment Income per Share | $0.25 | $0.31 | $0.88 | $0.95 | | Net Increase in Net Assets per Share | $0.19 | $0.25 | $0.54 | $1.12 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $210.2 million to $1.09 billion, primarily from operations and capital transactions, offset by distributions - Net assets grew from **$877.3 million** at the beginning of the period to **$1,087.5 million** at the end[16](index=16&type=chunk) Changes in Net Assets for the Nine Months Ended June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Net Increase from Operations | $48,852 | | Distributions to Stockholders | $(83,389) | | Net Increase from Capital Transactions | $244,756 | | **Net Increase in Net Assets** | **$210,219** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used $386.1 million cash, largely offset by $376.7 million from financing, leading to a $9.3 million net cash decrease Cash Flow Summary for the Nine Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(386,052) | $(509,641) | | Net Cash Provided by Financing Activities | $376,732 | $493,675 | | **Net (Decrease) in Cash** | **$(9,320)** | **$(15,966)** | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments) The investment portfolio expanded to $2.40 billion, predominantly in first lien secured debt, with significant PSSL holdings Investment Portfolio Composition (in thousands) | Investment Classification | Fair Value at June 30, 2025 | Fair Value at Sept 30, 2024 | | :--- | :--- | :--- | | **Non-Controlled, Non-Affiliated** | | | | First Lien Secured Debt | $1,912,951 | $1,472,064 | | Subordinate Debt | $12,506 | $2,693 | | Preferred Equity | $18,801 | $18,305 | | Common Equity/Warrants | $168,318 | $139,207 | | **Subtotal** | **$2,112,576** | **$1,632,269** | | **Controlled, Affiliated (PSSL)** | | | | First Lien Secured Debt | $237,650 | $274,634 | | Equity Interests | $53,289 | $76,601 | | **Subtotal** | **$290,939** | **$351,235** | | **Total Investments** | **$2,403,515** | **$1,983,504** | - As of June 30, 2025, two portfolio companies were on non-accrual status, representing **1.0%** of the portfolio at cost and **0.5%** at fair value[88](index=88&type=chunk) [Notes to Consolidated Financial Statements](index=27&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's BDC structure, investment strategy, fee arrangements, debt facilities, and PSSL joint venture - The company's investment objective is to generate current income and capital appreciation by investing primarily in floating rate loans to U.S. middle-market private companies[61](index=61&type=chunk) - In February 2025, the company completed a new **$474.6 million** term debt securitization (2037 Debt Securitization), retaining **$113.6 million** of the subordinated and Class D notes[72](index=72&type=chunk) - The company's asset coverage ratio was **177%** as of June 30, 2025, above the regulatory minimum of **150%**[185](index=185&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, portfolio growth to $2.4 billion, 10.4% yield, and financing, confirming sufficient liquidity Portfolio Summary as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Portfolio Value | $2,403.5 million | | Number of Portfolio Companies | 155 | | Average Investment Size | $15.5 million | | Weighted Average Yield on Debt | 10.4% | | % First Lien Secured Debt | 89% | | % Subordinated Debt | <1% | | % Preferred & Common Equity | 10% | - For the nine months ended June 30, 2025, the company invested **$1.1 billion** in 18 new and 112 existing portfolio companies, with sales and repayments totaling **$669.5 million**[242](index=242&type=chunk) - The company established a new **$500 million** at-the-market (ATM) offering program in July 2024, raising **$244.8 million** in net proceeds by issuing **21.6 million shares** through its ATM programs during the nine months ended June 30, 2025[78](index=78&type=chunk)[79](index=79&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with 99% variable-rate debt; a 1% rate increase boosts net interest income by $9.5 million Annualized Impact of Hypothetical Interest Rate Changes | Change in Interest Rates | Change in Net Interest Income (in thousands) | Change in Net Interest Income Per Share | | :--- | :--- | :--- | | Down 1% | $(9,453) | $(0.10) | | Up 1% | $9,453 | $0.10 | | Up 2% | $18,905 | $0.19 | | Up 3% | $28,358 | $0.29 | [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO confirmed effective disclosure controls as of June 30, 2025, with no material internal control changes - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[346](index=346&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2025[347](index=347&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company, its Investment Adviser, and Administrator are not subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[348](index=348&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) Key risks include U.S. trade policy changes affecting portfolio companies and significant cybersecurity vulnerabilities - Changes in U.S. trade policies and tariffs could increase costs or reduce demand for portfolio companies' products, adversely affecting their operations[350](index=350&type=chunk) - The company is subject to significant cybersecurity risks, including data breaches and system failures, which could lead to financial losses, regulatory intervention, and reputational damage[351](index=351&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[355](index=355&type=chunk) [Item 3. Defaults Upon Senior Securities](index=72&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[356](index=356&type=chunk) [Item 4. Mine Safety Disclosures](index=72&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This disclosure item is not applicable to the company's operations - Not applicable[357](index=357&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) This item is not applicable, and no Rule 10b5-1 trading arrangements were adopted or terminated - Not applicable[358](index=358&type=chunk) [Item 6. Exhibits](index=73&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including credit agreement amendments and certifications

[Financial Results and Highlights](index=1&type=section&id=Financial%20Results%20and%20Highlights) [Third Quarter 2025 Financial Highlights](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Highlights) PFLT reported a Q3 2025 NAV per share of **$10.96**, a 1.0% decrease, with net investment income at **$0.25 per share** and a **$2.4 billion** investment portfolio Q3 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | **Assets and Liabilities** | | | Investment Portfolio | $2,403.5 million | | Net Assets | $1,087.5 million | | Net Asset Value (NAV) per Share | $10.96 | | Quarterly Change in NAV per Share | (1.0)% | | Regulatory Debt to Equity | 1.29x | | **Operating Results** | | | Net Investment Income per Share | $0.25 | | Core Net Investment Income per Share | $0.27 | | Distributions Declared per Share | $0.31 | | **Portfolio Activity** | | | Purchases of Investments | $208.1 million | | Sales and Repayments | $145.8 million | - Core Net Investment Income (Core NII) is a non-GAAP measure that excludes **$2.9 million** of credit facility amendment costs and a **$1.2 million** incentive fee expense offset for the quarter[2](index=2&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) [Overall Portfolio Review](index=2&type=section&id=Overall%20Portfolio%20Review) The portfolio grew to **$2.4 billion** as of June 30, 2025, with 99% first lien secured debt and a 10.4% weighted average yield - Management anticipates continued net investment income growth driven by recent capital raises and the formation of a new joint venture with Hamilton Lane to invest in middle-market senior secured loans[5](index=5&type=chunk) Portfolio Composition Comparison | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Portfolio | $2,403.5 M | $1,983.5 M | | First Lien Secured Debt | $2,150.6 M | $1,746.7 M | | Number of Companies | 155 | 158 | | Avg. Investment Size | $15.5 M | $12.6 M | | Weighted Avg. Yield on Debt | 10.4% | 11.5% | | Non-Accruals (at fair value) | 0.5% | 0.2% | [Investment Activity Details](index=2&type=section&id=Investment%20Activity%20Details) Q3 2025 investments totaled **$208.1 million**, a decrease from prior year, with nine-month investments reaching **$1.1 billion** Investment Activity (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Investments | $208.1 M | $320.9 M | | Weighted Avg. Yield on New Debt | 10.1% | 11.5% | | Sales and Repayments | $145.8 M | $137.6 M | Investment Activity (Nine Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Investments | $1,108.3 M | $961.8 M | | Weighted Avg. Yield on New Debt | 10.2% | 11.7% | | Sales and Repayments | $669.5 M | $386.3 M | [PennantPark Senior Secured Loan Fund I LLC (PSSL)](index=2&type=section&id=PennantPark%20Senior%20Secured%20Loan%20Fund%20I%20LLC%20(PSSL)) PSSL's portfolio grew to **$1.06 billion** as of June 30, 2025, with a 10.4% weighted average yield on debt investments PSSL Portfolio Overview | Metric | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Portfolio | $1,055.6 M | $913.3 M | | Number of Companies | 117 | 109 | | Avg. Investment Size | $9.0 M | $8.4 M | | Weighted Avg. Yield on Debt | 10.4% | 11.4% | - For the three months ended June 30, 2025, PSSL invested **$52.3 million** and had sales/repayments of **$53.8 million**[10](index=10&type=chunk)[11](index=11&type=chunk) [Results of Operations](index=3&type=section&id=Results%20of%20Operations) [Investment Income](index=3&type=section&id=Investment%20Income) Q3 2025 total investment income increased to **$63.5 million**, driven by the growing size of the debt portfolio Investment Income Comparison (in millions) | Period | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $63.5 | $48.5 | Increase in size of debt portfolio | | Nine Months Ended June 30 | $192.4 | $130.8 | Increase in size of debt portfolio | [Expenses](index=3&type=section&id=Expenses) Q3 2025 expenses rose to **$38.9 million**, primarily due to higher interest, management fees, and credit facility amendment costs Expenses Comparison (in millions) | Period | 2025 | 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Three Months Ended June 30 | $38.9 | $27.3 | Higher interest expense, management fees, and amendment costs | | Nine Months Ended June 30 | $112.8 | $71.1 | Higher interest expense and management fees | [Net Investment Income (NII)](index=3&type=section&id=Net%20Investment%20Income%20(NII)) Q3 2025 net investment income was **$24.6 million** or **$0.25 per share**, with per-share NII decreasing due to higher share count Net Investment Income Comparison | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | NII (in millions) | $24.6 | $21.2 | | NII per Share | $0.25 | $0.31 | | **Nine Months Ended June 30** | | | | NII (in millions) | $79.6 | $59.7 | | NII per Share | $0.88 | $0.95 | [Realized and Unrealized Gains/Losses](index=3&type=section&id=Realized%20and%20Unrealized%20Gains%2FLosses) Q3 2025 saw a net realized loss of **$14.8 million** and a net unrealized appreciation of **$9.9 million** on investments - For the three months ended June 30, 2025, the company experienced net realized losses of **$(14.8) million**, a significant change from the **$(0.4) million** loss in the same period of 2024[17](index=17&type=chunk) - The net change in unrealized appreciation on investments was **$9.9 million** for the quarter, compared to a depreciation of **$(4.0) million** in Q3 2024, driven by portfolio performance and capital market conditions[19](index=19&type=chunk) [Net Change in Net Assets](index=4&type=section&id=Net%20Change%20in%20Net%20Assets) Q3 2025 net increase in net assets from operations was **$19.3 million**, or **$0.19 per share**, influenced by portfolio and market conditions Net Increase in Net Assets from Operations | Period | 2025 | 2024 | | :--- | :--- | :--- | | **Three Months Ended June 30** | | | | Net Increase (in millions) | $19.3 | $16.9 | | Per Share | $0.19 | $0.25 | | **Nine Months Ended June 30** | | | | Net Increase (in millions) | $48.9 | $70.5 | | Per Share | $0.54 | $1.12 | [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) [Capital Structure and Debt Facilities](index=4&type=section&id=Capital%20Structure%20and%20Debt%20Facilities) The company amended its credit facility in April 2025, reducing pricing and extending maturity, and PSSL closed a new **$301 million** CLO - The annualized weighted average cost of debt decreased to **7.0%** for the nine months ended June 30, 2025, from **7.3%** in the prior year period[23](index=23&type=chunk) - In April 2025, the credit facility was amended, reducing pricing to SOFR + **200 bps** and extending the maturity to August 2030[24](index=24&type=chunk) - PSSL closed a new **$301 million** CLO in April 2025 and refinanced its 2035 Asset-Backed Debt in May 2025, extending maturities to 2037[25](index=25&type=chunk)[26](index=26&type=chunk) [Cash Flow and Equity Issuances](index=5&type=section&id=Cash%20Flow%20and%20Equity%20Issuances) As of June 30, 2025, the company held **$102.7 million** in cash, with **$244.8 million** raised through its ATM program - The company held cash and cash equivalents of **$102.7 million** as of June 30, 2025[27](index=27&type=chunk) ATM Program Issuances (Nine Months Ended June 30) | Period | Shares Issued | Avg. Price | Net Proceeds | | :--- | :--- | :--- | :--- | | 2025 | 21,638,000 | $11.34 | $244.8 M | | 2024 | 13,263,436 | $11.39 | $150.6 M | - For the nine months ended June 30, 2025, cash used in operations was **$386.1 million**, while cash provided by financing was **$376.7 million**[29](index=29&type=chunk) [Shareholder Distributions and Recent Developments](index=5&type=section&id=Shareholder%20Distributions%20and%20Recent%20Developments) [Distributions](index=5&type=section&id=Distributions) The company declared distributions of **$0.3075 per share** for Q3 2025, totaling **$83.4 million** for the nine-month period Distributions Declared | Period | Per Share | Total (in millions) | | :--- | :--- | :--- | | **Three Months Ended June 30, 2025** | $0.3075 | $30.5 | | **Nine Months Ended June 30, 2025** | $0.9225 | $83.4 | [Recent Developments](index=5&type=section&id=Recent%20Developments) A new joint venture, PSSL II, was formed with Hamilton Lane in August 2025, targeting an initial **$500 million** portfolio - A new joint venture, PSSL II, was formed in August 2025 with Hamilton Lane (HL) to invest in middle-market loans[32](index=32&type=chunk) - PFLT and HL have committed a combined **$200 million** (**$150 million** from PFLT, **$50 million** from HL) and intend to add a **$300 million** financing facility, targeting an initial portfolio size of **$500 million**[33](index=33&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Assets and Liabilities](index=6&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets reached **$2.52 billion**, with net assets growing to **$1.09 billion**, though NAV per share decreased to **$10.96** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Total Investments, at fair value | $2,403,515 | $1,983,504 | | Total Assets | $2,521,602 | $2,108,845 | | Total Liabilities | $1,434,089 | $1,231,551 | | Total Net Assets | $1,087,513 | $877,294 | | Net Asset Value per Share | $10.96 | $11.31 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2025 total investment income was **$63.5 million**, resulting in net investment income of **$24.6 million** and a net increase in net assets of **$19.3 million** Income Statement Summary (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $63,502 | $48,505 | | Total Expenses | $38,877 | $27,295 | | Net Investment Income | $24,625 | $21,210 | | Net Realized/Unrealized Loss | $(5,327) | $(4,290) | | **Net Increase in Net Assets** | **$19,298** | **$16,920** | Per Share Data (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net Investment Income per Share | $0.25 | $0.31 | | Net Increase in Net Assets per Share | $0.19 | $0.25 |

Core Viewpoint - PennantPark Floating Rate Capital Ltd. has formed a joint venture, PennantPark Senior Secured Loan Fund II, LLC, with Hamilton Lane to invest primarily in middle market loans, enhancing its position as a direct lender in this sector [1][3]. Company Overview - PennantPark Floating Rate Capital Ltd. is a business development company that primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first lien, second lien, and subordinated debt [4]. - The company is managed by PennantPark Investment Advisers, LLC, which has approximately $10 billion of investable capital [5]. Joint Venture Details - The joint venture, PSSL II, will have a combined commitment of $200 million, with PennantPark contributing $150 million and Hamilton Lane contributing $50 million [2]. - PSSL II plans to establish a financing facility of $300 million, allowing the portfolio to grow to an initial size of $500 million [2]. - Investments in PSSL II's portfolio are expected to commence in late September or early October [2]. Strategic Importance - The joint venture is seen as a strategic move to broaden the impact of PennantPark as a core middle market direct lender, aiming to provide senior loan solutions to middle market sponsors and borrowers [3]. - The CEO of PennantPark anticipates that growing PSSL II will lead to higher returns on equity and net investment income per share [3]. Hamilton Lane Overview - Hamilton Lane is a leading private markets investment firm with approximately $986 billion in assets under management, specializing in providing access to a wide range of private market strategies [6].

Core Viewpoint - PennantPark Floating Rate Capital Ltd. reported its financial results for the third fiscal quarter ended June 30, 2025, highlighting growth in net investment income and portfolio activity despite a slight decline in net asset value per share [1][2]. Financial Results - The investment portfolio totaled $2,403.5 million, with net assets at $1,087.5 million and a net asset value per share of $10.96, reflecting a quarterly change of -1.0% [2]. - Net investment income for the quarter was $24.6 million, or $0.25 per share, compared to $21.2 million, or $0.31 per share, for the same period in 2024 [17]. - Total investment income for the quarter was $63.5 million, up from $48.5 million in the previous year, primarily due to an increase in the size of the debt portfolio [15]. Portfolio Activity - The company invested $208.1 million in new and existing portfolio companies during the quarter, with a weighted average yield on debt investments of 10.1% [8]. - As of June 30, 2025, the portfolio consisted of 155 companies with an average investment size of $15.5 million and a weighted average yield on debt investments of 10.4% [6]. - The company announced the formation of a new joint venture, PSSL II, with Hamilton Lane, aimed at investing in middle-market loans [32][33]. Debt and Financing - The company amended its credit facility in April 2025, reducing pricing and extending the reinvestment period and maturity date [24]. - As of June 30, 2025, the company had $419.1 million of unused borrowing capacity under the credit facility [23]. - The annualized weighted average cost of debt was 7.0% for the nine months ended June 30, 2025, compared to 7.3% for the same period in 2024 [23]. Distributions - Distributions declared per share for the quarter were $0.31, totaling $30.5 million, compared to $21.0 million for the same period in 2024 [31].

Core Points - PennantPark Floating Rate Capital Ltd. will report its financial results for the third fiscal quarter ended June 30, 2025, on August 11, 2025, after market close [1] - A conference call to discuss the financial results will be held on August 12, 2025, at 9:00 a.m. Eastern Time, with access details provided for participants [2] Company Overview - PennantPark Floating Rate Capital Ltd. is a business development company that primarily invests in U.S. middle-market private companies through floating rate senior secured loans, including first lien secured debt, second lien secured debt, and subordinated debt [3] - The company may also engage in equity investments occasionally [3] - The company is managed by PennantPark Investment Advisers, LLC, which oversees approximately $10 billion of investable capital [4] - PennantPark Investment Advisers, LLC has been operational since 2007, providing a range of financing solutions to middle-market borrowers [4]

Company Overview - PennantPark is an independent private credit platform investing since 2007, focused on the core middle market[2] - The platform has deployed over $21 billion of capital across 745 investments[2] - As of September 30, 2024, PennantPark has $83 billion of AUM[2] Investment Strategy & Portfolio - PennantPark targets profitable, growing companies with $10 million to $50 million of EBITDA[7] - The company actively covers 770+ middle market private equity sponsors in the U S [9] - PennantPark's first lien loans have a cumulative default rate of 3 89% based on capital invested, with a recovery rate of 73 5% (principal only) and 91 6% (all proceeds)[14] - Since 2018, over 75% of PennantPark's deals have been with repeat private equity sponsors[13] Market Positioning - The U S middle market generates $10 trillion of annual revenue, representing 1/3 of the U S economy[23] - Core middle market first lien new issue pricing is SOFR + 5 00% to 6 50%, while second lien is SOFR + 7 50% to 10 00%[20] PFLT Performance & Structure - PFLT's market value of investments is $2 0 billion as of September 30, 2024, primarily in first lien senior secured loans (88%)[29] - PFLT reported $18 0 million of Net Investment Income during the fiscal fourth quarter[36] - PFLT's core NII per share was $0 32 during the quarter, with an annualized dividend yield on NAV of 10 9%[36]

PennantPark Overview - PennantPark is an independent private credit platform investing since 2007, with over $26 billion of capital deployed[3] and $10 billion of AUM as of March 31, 2025[3] - The firm targets profitable, growing, and cash-flowing companies with $10 million to $50 million of EBITDA[9] - PennantPark actively covers 770+ middle market PE sponsors in the U S[11], closing deals with 240+ PE sponsors[11] Investment Strategy & Performance - PennantPark focuses on capital preservation, resulting in low annualized loss rates of 0 08% on first lien loans[17, 18] - The cumulative default rate on PennantPark's first lien loans is 3 34% based on capital invested[18] with a recovery rate of 72 8% on principal proceeds only and 91 8% on all proceeds[18] - PFLT's portfolio consists of 159 direct investments with a market value of $2 3 billion as of March 31, 2025[35] PFLT Financial Highlights - PFLT reported $25 0 million of Net Investment Income (NII) during the fiscal second quarter, with $0 28 of core NII per share[36] - PFLT's total assets were $2 472 billion as of March 2025, with a Net Asset Value of $1 067 billion[40] - PFLT has a historically consistent monthly dividend of $0 1025, with an annualized dividend yield on NAV of 11 1% during the quarter[36]

PennantPark Overview - PennantPark is an independent private credit platform investing since 2007, with over $26 billion of capital deployed[3] and $10 billion of AUM as of March 31, 2025[3] - The firm targets profitable, growing, and cash-flowing companies with $10 million to $50 million of EBITDA[9] - PennantPark actively covers 770+ middle market PE sponsors in the U S[11], closing deals with 240+ PE sponsors[11] Investment Strategy & Performance - PennantPark focuses on capital preservation, resulting in low annualized loss rates of 0 08% on first lien loans[17, 18] - The cumulative default rate on PennantPark's first lien loans is 3 34% based on capital invested[18] with a recovery rate of 72 8% on principal proceeds only and 91 8% on all proceeds[18] - PFLT's portfolio consists of 159 direct investments with a market value of $2 3 billion as of March 31, 2025[35] PFLT Financial Highlights - PFLT reported $25 0 million of Net Investment Income (NII) during the fiscal second quarter, with $0 28 of core NII per share[36] - PFLT's total assets were $2 472 billion as of March 2025, with a Net Asset Value of $1 067 billion[40] - PFLT has a historically consistent monthly dividend of $0 1025, with an annualized dividend yield on NAV of 11 1% during the quarter[36]