NEW YORK, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Since closing its first investment on February 6, 2025, through December 31, 2025, Prospect Credit REIT, LLC (“PCRED”), a non-traded real estate credit fund, achieved an annualized total return of 13.14% to investors. PCRED’s annualized return outperformed the 1-year annualized return of the Robert A. Stanger (“Stanger”) Composite NAV REIT Index by 2.01x. The Stanger tracked index, which includes 33 non-traded net asset value real estate investment trusts (“NAV RE ...

Core Viewpoint - Prospect Capital Corporation (PSEC) reported better-than-expected net investment income (NII) results for the last quarter, exceeding consensus estimates [1] Financial Performance - The company experienced an improvement in its dividend coverage quarter-over-quarter [1] - Despite the positive NII results, PSEC reported ongoing net asset value erosion [1]

Core Insights - Prospect Capital (PSEC) reported net investment income (NII) results that exceeded market expectations, indicating strong performance in the last quarter [1] - The company experienced an improvement in dividend coverage quarter-over-quarter, suggesting better financial health [1] - Despite the positive NII results, PSEC continues to face net asset value erosion, which may raise concerns about long-term sustainability [1]

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Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, bringing total distributions since the IPO to $4.7 billion, or $21.93 per share [3] Business Line Data and Key Metrics Changes - The company is focusing on new investments in companies with less than $50 million of EBITDA, with the first lien mix increasing by 728 basis points to 71.4% since June 2024 [3][4] - The second lien mix decreased by 371 basis points to 12.7%, and the subordinated structured notes mix decreased by 818 basis points to near zero since June 2024 [4] - The portfolio included 91 companies across 32 industries, with an aggregate fair value of $6.4 billion, and the EBITDA to interest coverage for middle market lending is about 210% [8][10] Market Data and Key Metrics Changes - The company’s portfolio at cost included only 2.8% of investments in software companies, significantly lower than the 22% average across business development companies [9] - The real estate property portfolio at National Property REIT Corp. (NPRC) totaled 14% of investments at cost, with an unlevered investment-level gross cash IRR of 24% since inception [10][11] - Interest income for the 12-month period ending December 2025 was 92% of total investment income, reflecting a strong recurring revenue profile [11] Company Strategy and Development Direction - The company is enhancing portfolio company operations, focusing on first lien senior secured loans, and exiting subordinated structured notes and targeted equity-linked assets [4][10] - The strategy includes a prudent expansion into new states and offices, with significant opportunities identified in Florida and Tennessee [22] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's balance sheet strength and liquidity, highlighting a diversified access to funding and a strong lender community [13][15] - The company noted that tax refunds are not expected to create significant headwinds for loan balances, and consumer demand remains strong [22][23] - Management emphasized the importance of existing customer credit history in determining future financing, which helps mitigate risks associated with new borrowers [24] Other Important Information - The company has successfully completed the exit of its subordinated structured notes portfolio, which now represents only 0.2% of the investment portfolio at cost [10] - The weighted average cost of unsecured debt financing was 4.68% as of December 31, 2025, with a ladder of liabilities extending 26 years into the future [16] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated that they plan to continue working with First Tower, which has been a strong performer, and noted the tax advantages of holding it as a tax partnership [20][21] Question: Stability of convertible prep product line amid market changes - Management stated that interest rates are a significant factor, and the current environment may lead investors to prefer fixed-rate investments over floating-rate ones [26][28] Question: Consideration of pivoting into enterprise SaaS software - Management expressed a focus on their own investment strategy and noted that they have avoided software investments due to perceived risks, maintaining a low exposure compared to industry averages [36][37]

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, totaling $4.7 billion distributed since the IPO [3] Business Line Data and Key Metrics Changes - The company is focusing on new investments in companies with less than $50 million of EBITDA, with a significant increase in the first lien mix by 728 basis points to 71.4% since June 2024 [3][4] - The second lien mix decreased by 371 basis points to 12.7%, and the subordinated structured notes mix decreased by 818 basis points to near zero since June 2024 [4] - The portfolio at cost included 2.8% of investments in software companies, significantly lower than the 22% average across business development companies [9] Market Data and Key Metrics Changes - As of December 2025, the company held 91 portfolio companies across 32 different industries, with an aggregate fair value of $6.4 billion [8] - The interest income for the 12-month period ending December 2025 was 92% of total investment income, indicating a strong recurring revenue profile [11] - Non-accruals as a percentage of total assets stood at approximately 0.7% based on fair market value as of December [12] Company Strategy and Development Direction - The company is enhancing portfolio company operations, focusing on first lien senior secured loans, and exiting subordinated structured notes and targeted equity-linked assets [4][10] - The strategy includes a rotation of assets into core business areas and a focus on cash flow multifamily investments in real estate [10][11] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's balance sheet strength and liquidity, highlighting a diversified access to matched book funding [13][15] - The company has locked in a ladder of liabilities extending 26 years into the future, with a weighted average cost of unsecured debt financing at 4.68% [16] - Management noted strong demand in the non-bank installment finance business, with a high barrier to entry for new competitors [22][24] Other Important Information - The company has successfully exited 56 property investments since 2012, earning an unlevered investment-level gross cash IRR of 24% [10] - The company has a combined balance sheet cash and undrawn revolving credit facility commitments of $1.6 billion as of December [15] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated no current plans to exit Tower, emphasizing its strong performance and tax advantages as a regulated investment company [20][21] - Tax refunds may create seasonality in borrowing but are not expected to distort Tower's business [22][23] Question: Impact of non-traded BDC market on convertible prep product line - Management noted that interest rates are a significant factor, with a shift towards fixed-rate investments becoming more compelling in the current environment [26][28] Question: Consideration of pivoting into enterprise SaaS software - Management stated a focus on their own underwriting culture, avoiding software investments due to perceived risks associated with cash flow and repayment [36]

Financial Data and Key Metrics Changes - For the December quarter, the company's net investment income was $91 million, or $0.19 per common share, with a net asset value (NAV) of approximately $3 billion, or $6.21 per common share [3] - The net debt-to-total assets ratio stood at 28.2%, with unsecured debt plus unsecured perpetual preferred accounting for 85.3% of total debt plus preferred [3] - Monthly common shareholder distributions of $0.04 per share were announced for February, March, and April, totaling $4.7 billion distributed since the IPO [3] Business Line Data and Key Metrics Changes - The company increased its first lien senior secured middle market loans mix by 728 basis points to 71.4% since June 2024, while the second lien mix decreased by 371 basis points to 12.7% [3][4] - The exit of subordinated structured notes has been nearly completed, with the mix decreasing by 818 basis points to near zero since June 2024 [4][9] - The portfolio included 91 companies across 32 industries, with an aggregate fair value of $6.4 billion, and the EBITDA to interest coverage for middle market lending is about 210% [7][8] Market Data and Key Metrics Changes - The company’s interest income for the 12-month period ending December 2025 was 92% of total investment income, indicating a strong recurring revenue profile [10] - Non-accruals as a percentage of total assets stood at approximately 0.7% based on fair market value as of December [11] Company Strategy and Development Direction - The company is focusing on new investments in companies with less than $50 million of EBITDA and reducing exposure to second lien loans and subordinated structured notes [4] - The strategy includes enhancing portfolio company operations and utilizing a cost-efficient floating rate revolver to match floating rate assets [4] - The company aims to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the balance sheet strength and liquidity, highlighting a diversified access to funding and a strong lender community [12][14] - The company noted that tax refunds do not appear to be a significant headwind to loan balances, and consumer demand remains strong [22][23] - Management emphasized the importance of existing customer credit history for future lending decisions, which helps mitigate risks [24] Other Important Information - The company has locked in a ladder of liabilities extending 26 years into the future, with a weighted average cost of unsecured debt financing at 4.68% as of December 31, 2025 [12][15] - The company has avoided software investments, maintaining less than 3% exposure compared to the BDC average of around 22% [8][35] Q&A Session Summary Question: Impact of tax refunds on loan balances and strategy regarding Tower - Management indicated no plans to exit Tower, citing strong performance and tax advantages as a regulated investment company [19][20] - Tax refunds are not expected to significantly impact loan balances, and consumer borrowing patterns remain consistent [22][23] Question: Stability of convertible prep product line amid market changes - Management noted that interest rates are a significant factor, with a shift towards fixed-rate investments becoming more appealing [26][27] Question: Consideration of entering the software sector - Management expressed caution regarding software investments, emphasizing a focus on their own underwriting standards and avoiding high-risk loans [32][35]

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Core Viewpoint - Prospect Capital Corporation (PSEC) is a business development company that provides capital to middle-market companies, facing financial challenges but competing effectively in its sector [1] Financial Performance - On February 9, 2026, PSEC reported earnings per share of $0.19, surpassing the estimated $0.10, indicating better-than-expected profitability for the quarter [2][5] - The company reported revenue of $176 million, exceeding the estimated $154.3 million, suggesting strong operational performance [2][5] Shareholder Returns - PSEC declared dividends through April 2026, with distributions based on shares outstanding as of February 6, 2026 [3] - Since its inception, PSEC has distributed $21.93 per share to original common shareholders, totaling approximately $4.7 billion in cumulative distributions, highlighting its commitment to shareholder returns [3][5] Cash Flow Generation - PSEC's enterprise value to operating cash flow ratio is around 6.99, indicating that the company is generating cash flow relative to its enterprise value, which is crucial for sustaining operations and supporting future growth [4]

Exhibit 99.1 Prospect Capital Announces Financial Results for December 2025 NEW YORK, February 9, 2026 (GLOBE NEWSWIRE) – Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter ended December 31, 2025. | FINANCIAL RESULTS | | | | | --- | --- | --- | --- | | All amounts in $000's except | Quarter Ended | Quarter Ended | Quarter Ended | | per share amounts (on weighted average basis for period numbers) | December 31, 2025 | September 3 ...