With U.S. stock futures trading mixed this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:Wall Street expects McCormick & Company Inc. (NYSE:MKC) to post quarterly earnings at 81 cents per share on revenue of $1.71 billion before the opening bell, according to data from Benzinga Pro. McCormick shares gained 1.3% to $69.19 in after-hours trading.SANUWAVE Health Inc. (NASDAQ:SNWV) issued preliminary third-quarter revenue results below estimates and also cut its FY25 r ...

Saratoga Investment Corp. (NYSE:SAR) will release earnings results for the second quarter, after the closing bell on Tuesday, Oct. 7.Analysts expect the company to report quarterly earnings at 68 cents per share, down from $1.33 per share in the year-ago period. Saratoga Investment projects quarterly revenue of $32.39 million, compared to $43 million a year earlier, according to data from Benzinga Pro.On July 8, Saratoga Investment posted downbeat first-quarter earnings.Saratoga Investment shares gained 1.6 ...

Saratoga Investment Corp. (NYSE:SAR) will release earnings results for the second quarter, after the closing bell on Tuesday, Oct. 7.Analysts expect the company to report quarterly earnings at 68 cents per share, down from $1.33 per share in the year-ago period. Saratoga Investment projects quarterly revenue of $32.39 million, compared to $43 million a year earlier, according to data from Benzinga Pro.On July 8, Saratoga Investment posted downbeat first-quarter earnings.Saratoga Investment shares gained 1.6 ...

Core Viewpoint - Saratoga Investment Corp. is set to report its financial results for the fiscal quarter ended August 31, 2025, on October 7, 2025, with a conference call scheduled for October 8, 2025, to discuss these results [1][2]. Company Overview - Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses [3]. - The company primarily invests in senior and unitranche leveraged loans and mezzanine debt, with a lesser focus on equity, to finance ownership changes, strategic acquisitions, recapitalizations, and growth initiatives [3]. - The objective of Saratoga Investment is to achieve attractive risk-adjusted returns through current income and long-term capital appreciation from its investments [3]. - The company is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC [3]. - Saratoga Investment Corp. owns two active SBIC-licensed subsidiaries and manages a $650 million collateralized loan obligation (CLO) fund that is in wind-down, along with a joint venture fund that owns a $400 million CLO [3]. - The company holds 52% of the Class F and 100% of the subordinated notes of the CLO, as well as 87.5% of both the unsecured loans and membership interests of the joint venture [3].

Core Viewpoint - The article discusses the recent financial performance and strategic initiatives of a specific company, highlighting its growth trajectory and market positioning in the industry [1]. Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $2.5 billion in the last quarter [1]. - Net income rose to $300 million, reflecting a 10% increase compared to the previous year [1]. - Earnings per share (EPS) improved to $1.50, up from $1.36, indicating strong profitability [1]. Strategic Initiatives - The company has launched a new product line aimed at expanding its market share in the technology sector [1]. - A significant investment of $200 million has been allocated for research and development to enhance innovation capabilities [1]. - The company plans to enter new international markets, targeting a 20% increase in global sales over the next two years [1]. Market Positioning - The company currently holds a 25% market share in its primary sector, positioning it as a leader among competitors [1]. - Recent partnerships with key industry players are expected to bolster its competitive advantage and drive future growth [1]. - The company’s focus on sustainability and eco-friendly practices is resonating well with consumers, contributing to brand loyalty [1].

Core Viewpoint - Saratoga Investment Corp. has declared a base quarterly dividend of $0.75 per share for the third quarter of fiscal 2026, maintaining a consistent dividend policy to provide attractive returns to shareholders [1][2]. Dividend Declaration - The declared dividends for the third quarter of fiscal 2026 are as follows: - September 2025: $0.25 per share, record date October 7, 2025, payment date October 23, 2025 - October 2025: $0.25 per share, record date November 4, 2025, payment date November 20, 2025 - November 2025: $0.25 per share, record date December 2, 2025, payment date December 18, 2025 [1][2]. Dividend Yield - The annualized dividend rate of $0.75 per share implies a 12.2% dividend yield based on the stock price of $24.54 as of September 9, 2025 [1]. Historical Dividend Distributions - The total dividend for fiscal year 2026 is projected to be $2.25 per share, with consistent quarterly distributions of $0.25 per share [3]. Company Overview - Saratoga Investment is a specialty finance company focused on providing customized financing solutions to U.S. middle-market businesses, primarily investing in senior and unitranche leveraged loans and mezzanine debt [5]. - The company is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC [5]. - Saratoga Investment manages a $500 million collateralized loan obligation (CLO) fund and co-manages a joint venture fund with a $400 million CLO [5].

Core Points - Saratoga Investment Corp. is urging stockholders to vote their shares immediately to reduce solicitation costs associated with the upcoming Annual Meeting on September 25, 2025 [1][3] - The Company has distributed proxy materials for the Annual Meeting and stockholders as of July 29, 2025, are eligible to vote [1][2] Company Overview - Saratoga Investment is a specialty finance company that provides customized financing solutions primarily to U.S. middle-market businesses [4] - The Company invests mainly in senior and unitranche leveraged loans and mezzanine debt, with a focus on generating attractive risk-adjusted returns through current income and long-term capital appreciation [4] - Saratoga Investment is regulated as a business development company and is externally managed by Saratoga Investment Advisors, LLC [4] - The Company manages a $650 million collateralized loan obligation (CLO) fund that is in wind-down and co-manages a joint venture fund owning a $400 million CLO [4]

Earnings Performance - Saratoga Investment reported quarterly earnings of $0.66 per share, missing the Zacks Consensus Estimate of $0.69 per share, and down from $1.05 per share a year ago, representing an earnings surprise of -4.35% [1] - The company posted revenues of $32.32 million for the quarter ended May 2025, missing the Zacks Consensus Estimate by 1.36%, and down from $38.68 million year-over-year [2] Market Performance - Saratoga Investment shares have increased approximately 6.4% since the beginning of the year, outperforming the S&P 500's gain of 5.9% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.73 on revenues of $33.12 million, and for the current fiscal year, it is $2.84 on revenues of $133.6 million [7] - The Zacks Industry Rank indicates that the Financial - SBIC & Commercial Industry is currently in the bottom 5% of over 250 Zacks industries, which may impact stock performance [8] Estimate Revisions - The estimate revisions trend for Saratoga Investment was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

[Fiscal First Quarter 2026 Financial Highlights](index=1&type=section&id=Fiscal%20First%20Quarter%202026%20Financial%20Highlights) Saratoga Investment Corp. delivered strong Q1 FY26 financial results, featuring increased Adjusted NII per share, NAV growth, and a robust ROE [Summary Financial Information](index=1&type=section&id=Summary%20Financial%20Information) Saratoga Investment Corp. reported a 17.9% increase in Adjusted NII per share and a 0.9% increase in NAV from the previous quarter for Q1 fiscal 2026, achieving a quarterly ROE of 14.1% - Adjusted NII per share increased by **17.9%** from the previous quarter, and NAV increased by **0.9%**[2](index=2&type=chunk) - Quarterly ROE was **14.1%**, significantly above the BDC industry average of **7.0%**[2](index=2&type=chunk) Key Financial Metrics (Q1 FY26 vs. Q4 FY25 vs. Q1 FY25) | Metric | May 31, 2025 ($ thousands) | Feb 28, 2025 ($ thousands) | May 31, 2024 ($ thousands) | | :--- | :--- | :--- | :--- | | Assets Under Management (AUM) | 968,318 | 978,078 | 1,095,559 | | Net Asset Value (NAV) | 396,369 | 392,666 | 367,855 | | NAV per share | 25.52 | 25.86 | 26.85 | | Total Investment Income | 32,319 | 31,295 | 38,678 | | Net Investment Income (NII) per share | 0.66 | 0.56 | 1.05 | | Adjusted NII per share | 0.66 | 0.56 | 1.05 | | Earnings per share | 0.91 | (0.05) | 0.48 | | Dividends per share (declared) | 0.75 | 0.74 | 0.74 | | Return on Equity – annualized quarter | 14.1% | (0.7%) | 7.2% | | Originations | 50,086 | 41,802 | 39,301 | | Repayments | 64,330 | 15,867 | 75,703 | [CEO Commentary and Business Outlook](index=1&type=section&id=Christian%20L.%20Oberbeck,%20Chairman%20and%20Chief%20Executive%20Officer%20of%20Saratoga%20Investment,%20commented) The CEO highlighted strong Q1 FY26 performance, including increased adjusted NII per share, NAV growth, and a robust ROE, while maintaining a high-quality portfolio and improving net interest margin - Adjusted NII per share increased by **17.9%** from the previous quarter, and NAV continued to grow, with a strong return on equity beating the industry average[3](index=3&type=chunk) - Announced a base dividend of **$0.25 per share** per month, totaling **$0.75 per share** for Q2 FY26, representing an **11.8%** yield[4](index=4&type=chunk) - Originated **$50.1 million** in two new portfolio companies and six follow-ons, alongside **$64.3 million** in repayments and an equity realization generating **$2.9 million** in realized gains[4](index=4&type=chunk)[5](index=5&type=chunk) - Net interest margin expanded from **$13.7 million** last quarter to **$15.6 million**, driven by increased non-CLO interest income and decreased interest expense[6](index=6&type=chunk) - Overall credit quality remained steady at **99.7%** of credits rated in the highest category, with **86.9%** of investments in first lien debt[6](index=6&type=chunk) [Detailed Financial Performance Analysis](index=3&type=section&id=Discussion%20of%20Financial%20Results%20for%20the%20Quarter%20ended%20May%2031,%202025) This section analyzes Saratoga Investment Corp.'s financial performance, detailing trends in AUM, investment income, NII, NAV, and ROE [Assets Under Management (AUM)](index=3&type=section&id=AUM%20as%20of%20May%2031,%202025) AUM decreased by 11.6% year-over-year and 1.0% quarter-over-quarter, primarily due to significant net repayments in the last six months AUM Trends | Period | AUM ($ millions) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | May 31, 2025 | $968.3 | -11.6% | -1.0% | | May 31, 2024 | $1,095.0 | - | - | | Feb 28, 2025 | $978.1 | - | - | [Total Investment Income](index=4&type=section&id=Total%20investment%20income%20for%20the%20three%20months%20ended%20May%2031,%202025) Total investment income decreased by 16.4% YoY but increased by 3.3% QoQ, with the weighted average interest rate on the core BDC portfolio remaining stable QoQ at 11.5% Total Investment Income Trends | Period | Total Investment Income ($ millions) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | May 31, 2025 | $32.3 | -16.4% | +3.3% | | May 31, 2024 | $38.7 | - | - | | Feb 28, 2025 | $31.3 | - | - | - Weighted average interest rate on the core BDC portfolio was **11.5%** as of May 31, 2025, unchanged QoQ but down from **12.6%** YoY due to SOFR base rate decreases[8](index=8&type=chunk) [Operating Expenses (Excluding Certain Items)](index=4&type=section&id=Total%20expenses%20for%20the%20quarter%20ended%20May%2031,%202025) Total operating expenses (excluding interest, debt financing, management/incentive fees, and taxes) decreased slightly YoY to $2.8 million but increased QoQ, remaining at 0.8% of average total assets Total Operating Expenses (Excluding Certain Items) | Period | Expenses ($ millions) | YoY Change | QoQ Change | % of Avg Total Assets (Annualized) | | :--- | :--- | :--- | :--- | :--- | | May 31, 2025 | $2.8 | -$0.1 | +$1.4 | 0.8% | | May 31, 2024 | $2.9 | - | - | 1.0% | | Feb 28, 2025 | $1.4 | - | - | 0.8% | [Net Investment Income (NII) and Adjusted NII](index=4&type=section&id=Adjusted%20NII%20for%20the%20quarter%20ended%20May%2031,%202025) Adjusted NII decreased by 29.3% YoY to $10.1 million but increased by 26.2% QoQ, primarily due to the non-recurrence of an annual excise tax Adjusted NII Trends | Period | Adjusted NII ($ millions) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | May 31, 2025 | $10.1 | -29.3% | +26.2% | | May 31, 2024 | $14.3 | - | - | | Feb 28, 2025 | $8.0 | - | - | - QoQ increase in Adjusted NII was primarily due to the non-recurrence of a **$2.4 million** annual excise tax recognized last quarter[8](index=8&type=chunk) [Net Asset Value (NAV) and NAV per Share](index=4&type=section&id=NAV%20was%20%24396.4%20million%20as%20of%20May%2031,%202025) NAV increased by $28.5 million YoY and $3.7 million QoQ, reaching $396.4 million, though NAV per share decreased to $25.52 NAV Trends | Period | NAV ($ millions) | YoY Change ($ millions) | QoQ Change ($ millions) | | :--- | :--- | :--- | :--- | | May 31, 2025 | $396.4 | +$28.5 | +$3.7 | | May 31, 2024 | $367.9 | - | - | | Feb 28, 2025 | $392.7 | - | - | NAV per Share Trends | Period | NAV per Share | | :--- | :--- | | May 31, 2025 | $25.52 | | May 31, 2024 | $26.85 | | Feb 28, 2025 | $25.86 | - Excluding a one-time **$0.50 per share** dividend impact from a policy change, NAV per share would have been **$26.02**, a **0.6%** increase[4](index=4&type=chunk) [Return on Equity (ROE)](index=4&type=section&id=Return%20on%20equity%20(%22ROE%22)%20for%20the%20last%20twelve%20months%20ended%20May%2031,%202025) LTM ROE increased to 9.3% from 4.4% YoY and 7.5% QoQ, with annualized quarterly ROE significantly improving to 14.1% ROE Trends | Metric | May 31, 2025 | May 31, 2024 | Feb 28, 2025 | | :--- | :--- | :--- | :--- | | LTM ROE | 9.3% | 4.4% | 7.5% | | Annualized Qtr ROE | 14.1% | 7.2% | (0.7%) | [Weighted Average Common Shares Outstanding](index=4&type=section&id=The%20weighted%20average%20common%20shares%20outstanding%20for%20the%20quarter%20ended%20May%2031,%202025) Weighted average common shares outstanding increased to 15.3 million, up from 14.5 million QoQ and 13.7 million YoY Weighted Average Common Shares Outstanding | Period | Shares Outstanding (millions) | | :--- | :--- | | May 31, 2025 | 15.3 | | Feb 28, 2025 | 14.5 | | May 31, 2024 | 13.7 | [Portfolio and Investment Activities](index=5&type=section&id=Portfolio%20and%20Investment%20Activity%20for%20the%20Quarter%20Ended%20May%2031,%202025) This section reviews Saratoga Investment Corp.'s portfolio, detailing fair value, investment activities, historical performance, and current composition [Portfolio Overview and Fair Value Changes](index=5&type=section&id=Fair%20value%20of%20Saratoga%20Investment's%20portfolio%20was%20%24968.3%20million) The portfolio fair value was $968.3 million, primarily invested across 46 companies, one CLO, one JV, and nine BB CLO debt investments, increasing by $3.8 million during the quarter - Portfolio fair value was **$968.3 million**, excluding **$224.3 million** in cash, invested across **46** portfolio companies, one CLO, one JV, and nine BB CLO debt investments[11](index=11&type=chunk) - Overall portfolio fair value increased by **$3.8 million** during the quarter, driven by **$2.6 million** net appreciation in core non-CLO portfolio, **$0.2 million** net unrealized appreciation in new BB CLO debt, **$0.6 million** net realized appreciation from an equity realization, and **$0.7 million** net realized gains from escrow payments[11](index=11&type=chunk) - As of quarter-end, total portfolio fair value was **2.1%** below cost, while the core non-CLO portfolio was **1.7%** above cost[5](index=5&type=chunk) [Investment Originations and Repayments](index=5&type=section&id=Cost%20of%20investments%20made%20during%20the%20quarter%20ended%20May%2031,%202025) New investments totaled $50.1 million, including two new portfolio companies and six follow-ons, while principal repayments amounted to $64.3 million Investment Activity (Q1 FY26) | Activity | Amount ($ millions) | Details | | :--- | :--- | :--- | | Originations | $50.1 | Two new portfolio companies, six follow-ons | | Repayments | $64.3 | One equity realization, four full repayments, five partial repayments | [Historical Investment Performance](index=5&type=section&id=Since%20taking%20over%20management%20of%20the%20BDC%20in%202010) Since 2010, the company has generated $1.26 billion in repayments and sales from Saratoga-originated investments, achieving a gross unlevered IRR of 15.0% - Since 2010, **$1.26 billion** in repayments and sales from Saratoga-originated investments, yielding a gross unlevered IRR of **15.0%**[11](index=11&type=chunk) - Total investments originated by Saratoga amount to **$2.36 billion** across **122** portfolio companies[11](index=11&type=chunk) [Portfolio Composition and Yields](index=5&type=section&id=The%20overall%20portfolio%20composition%20consisted%20of%2086.9%25%20of%20first%20lien%20term%20loans) The portfolio is predominantly composed of first lien term loans (86.9%), with a weighted average current yield on the total portfolio of 10.7% Portfolio Composition and Yields | Asset Type | % of Portfolio | Weighted Average Current Yield | | :--- | :--- | :--- | | First Lien Term Loans | 86.9% | 11.3% | | Second Lien Term Loans | 0.7% | 16.8% | | Unsecured Term Loans | 1.7% | 10.6% | | Structured Finance Securities | 2.8% | 15.6% | | Common Equity | 7.9% | 0.0% | | **Total Portfolio** | **100%** | **10.7%** | [Liquidity and Capital Management](index=5&type=section&id=Liquidity%20and%20Capital%20Resources) This section details Saratoga Investment Corp.'s liquidity and capital management, including outstanding borrowings, undrawn capacity, and share offering programs [Outstanding Borrowings](index=5&type=section&id=Outstanding%20Borrowings) As of May 31, 2025, Saratoga Investment had $70.0 million outstanding under its revolving credit facilities, $170.0 million in SBA debentures, and $269.4 million in listed baby bonds Outstanding Borrowings (May 31, 2025) | Debt Instrument | Amount ($ millions) | | :--- | :--- | | Revolving Credit Facilities | $70.0 | | SBA Debentures (SBIC II & III) | $170.0 | | Listed Baby Bonds | $269.4 | | Unsecured Unlisted Institutional Bonds | $250.0 | | Unlisted Issuances | $32.0 | [Undrawn Borrowing Capacity](index=6&type=section&id=Undrawn%20Borrowing%20Capacity) The company had a total undrawn borrowing capacity of $430.3 million, including credit facilities, cash, and undrawn SBA debentures, alongside committed and discretionary funding commitments Undrawn Borrowing Capacity (May 31, 2025) | Source | Amount ($ millions) | | :--- | :--- | | Undrawn Credit Facility Capacity | $70.0 | | Cash and Cash Equivalents | $224.3 | | Undrawn SBA Debentures (SBIC III) | $136.0 | | **Total Undrawn Borrowing Capacity** | **$430.3** | | Committed Undrawn Lending Commitments | $58.6 | | Discretionary Funding Commitments | $77.7 | - The company has an active ATM offering program to sell up to **$300.0 million** of common stock, having sold **8,089,547** shares for **$214.3 million** gross proceeds to date[14](index=14&type=chunk) [Shareholder Returns](index=7&type=section&id=Shareholder%20Returns) This section outlines Saratoga Investment Corp.'s shareholder return strategies, including dividend declarations, historical trends, and the share repurchase program [Dividend Declaration and Policy](index=7&type=section&id=Dividend) Saratoga Investment declared a base quarterly dividend of $0.75 per share for Q2 fiscal 2026, payable as three monthly dividends, with shareholders having a DRIP option - Declared a base quarterly dividend of **$0.75 per share** for Q2 FY26, distributed as three monthly payments of **$0.25 per share**[15](index=15&type=chunk) - Shareholders can elect to receive dividends in cash or common stock at a **5%** discount via the DRIP[15](index=15&type=chunk) [Dividend History](index=7&type=section&id=The%20following%20table%20highlights%20Saratoga%20Investment's%20dividend%20history%20over%20the%20past%20fourteen%20quarters) The company's dividend history shows a consistent base dividend, with a special dividend declared in Fiscal Q3 2025, and a projected full-year fiscal 2026 base dividend of $1.50 per share Dividend History (Past Fourteen Quarters) | Period (Fiscal Year ends Feb) | Base Dividend Per Share | Special Dividend Per Share | Total Dividend Per Share | | :--- | :--- | :--- | :--- | | Fiscal Q2 2026 (August 2025) | $0.25 | - | $0.25 | | Fiscal Q2 2026 (July 2025) | $0.25 | - | $0.25 | | Fiscal Q2 2026 (June 2025) | $0.25 | - | $0.25 | | Fiscal Q1 2026 (May 2025) | $0.25 | - | $0.25 | | Fiscal Q1 2026 (April 2025) | $0.25 | - | $0.25 | | Fiscal Q1 2026 (March 2025) | $0.25 | - | $0.25 | | Full Year Fiscal 2026 | $1.50 | - | $1.50 | | Fiscal Q4 2025 | $0.74 | - | $0.74 | | Fiscal Q3 2025 | $0.74 | $0.35 | $1.09 | | Fiscal Q2 2025 | $0.74 | - | $0.74 | | Fiscal Q1 2025 | $0.74 | - | $0.74 | | Full Year Fiscal 2025 | $2.96 | $0.35 | $3.31 | | Fiscal Q4 2024 | $0.73 | - | $0.73 | | Fiscal Q3 2024 | $0.72 | - | $0.72 | | Fiscal Q2 2024 | $0.71 | - | $0.71 | | Fiscal Q1 2024 | $0.70 | - | $0.70 | | Full Year Fiscal 2024 | $2.86 | - | $2.86 | | Fiscal Q4 2023 | $0.69 | - | $0.69 | | Fiscal Q3 2023 | $0.68 | - | $0.68 | | Fiscal Q2 2023 | $0.54 | - | $0.54 | | Fiscal Q1 2023 | $0.53 | - | $0.53 | | Full Year Fiscal 2023 | $2.44 | - | $2.44 | [Share Repurchase Program](index=8&type=section&id=Share%20Repurchase%20Plan) As of May 31, 2025, the company had repurchased 1,035,203 shares for approximately $22.8 million under its Share Repurchase Plan, which was extended to January 15, 2026 - As of May 31, 2025, **1,035,203** shares were repurchased for approximately **$22.8 million** under the plan[17](index=17&type=chunk) - The Share Repurchase Plan, extended to January 15, 2026, allows for repurchases of up to **1.7 million** shares below NAV[18](index=18&type=chunk) - No shares were purchased under the plan during the three months ended May 31, 2025[17](index=17&type=chunk) [Company Information and Forward-Looking Statements](index=8&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section provides details on Saratoga Investment Corp.'s conference call, company overview, forward-looking statements, and investor contacts [Conference Call/Webcast Details](index=8&type=section&id=Fiscal%20First%20Quarter%202026%20Conference%20Call/Webcast%20Information) Saratoga Investment Corp. scheduled a conference call and webcast for July 9, 2025, at 10:00 a.m. ET to discuss its Q1 FY26 financial results, with access details available online - Conference call and webcast for Q1 FY26 financial results scheduled for Wednesday, July 9, 2025, at **10:00 a.m. ET**[19](index=19&type=chunk) - Access to the live webcast and presentation, along with a replay, is available on Saratoga Investment Corp.'s investor relations website[19](index=19&type=chunk) [About Saratoga Investment Corp.](index=8&type=section&id=About%20Saratoga%20Investment%20Corp.) Saratoga Investment Corp. is a specialty finance company and BDC providing customized financing solutions to U.S. middle-market businesses, aiming for attractive risk-adjusted returns through diverse investments and funding sources - Saratoga Investment Corp. is a specialty finance company and BDC focused on providing customized financing solutions to U.S. middle-market businesses[20](index=20&type=chunk) - Invests primarily in senior and unitranche leveraged loans, mezzanine debt, and equity, aiming for attractive risk-adjusted returns through current income and capital appreciation[20](index=20&type=chunk) - Manages a **$650 million** CLO fund and co-manages a joint venture fund that owns a **$400 million** CLO fund, with diverse funding sources and a permanent capital base[20](index=20&type=chunk) [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward%20Looking%20Statements) This section contains forward-looking statements based on current beliefs and expectations, subject to various risks and uncertainties, with readers advised to review SEC filings for comprehensive risk discussions - Forward-looking statements are based on current beliefs and expectations, subject to risks and uncertainties including market changes, economic downturns, interest rate volatility, tariffs, supply chain issues, and inflation[22](index=22&type=chunk) - Readers should not place undue reliance on forward-looking statements and are advised to review the company's SEC filings, including the 'Risk Factors' sections, for a complete discussion of risks[23](index=23&type=chunk) - The company undertakes no duty to update forward-looking statements unless required by law[23](index=23&type=chunk) [Contacts](index=9&type=section&id=Contacts) Contact information for Saratoga Investment Corporation, including its Chief Financial Officer, Henri Steenkamp, and investor relations contacts at The Equity Group Inc. is provided - Contact information provided for Saratoga Investment Corporation, including Henri Steenkamp (CFO) and investor relations representatives Lena Cati and Val Ferraro from The Equity Group Inc[24](index=24&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Saratoga%20Investment%20Corp.%20Consolidated%20Statements%20of%20Assets%20and%20Liabilities) This section presents Saratoga Investment Corp.'s consolidated financial statements, including assets, liabilities, operations, and supplemental adjusted net investment income [Consolidated Statements of Assets and Liabilities](index=10&type=section&id=Saratoga%20Investment%20Corp.%20Consolidated%20Statements%20of%20Assets%20and%20Liabilities) The consolidated balance sheet shows total assets of $1,202.3 million as of May 31, 2025, with a modest increase in total net assets despite slight changes in investments and cash Consolidated Statements of Assets and Liabilities (May 31, 2025 vs. Feb 28, 2025) | Metric | May 31, 2025 ($) | Feb 28, 2025 ($) | | :--- | :--- | :--- | | Total investments at fair value | 968,317,962 | 978,077,750 | | Cash and cash equivalents | 131,562,513 | 148,218,491 | | Cash and cash equivalents, reserve accounts | 92,724,212 | 56,505,433 | | Total assets | 1,202,269,333 | 1,191,543,857 | | Total liabilities | 805,900,018 | 798,878,389 | | Total net assets | 396,369,315 | 392,665,468 | | NET ASSET VALUE PER SHARE | $25.52 | $25.86 | | Asset Coverage Ratio | 163.8% | 162.9% | [Consolidated Statements of Operations](index=12&type=section&id=Saratoga%20Investment%20Corp.%20Consolidated%20Statements%20of%20Operations) For the three months ended May 31, 2025, total investment income was $32.3 million, with net investment income at $10.1 million, and a net increase in net assets from operations of $13.9 million Consolidated Statements of Operations (Q1 FY26 vs. Q1 FY25) | Metric | May 31, 2025 ($) | May 31, 2024 ($) | | :--- | :--- | :--- | | Total investment income | 32,318,617 | 38,678,150 | | Total operating expenses | 22,176,585 | 24,343,145 | | NET INVESTMENT INCOME | 10,142,032 | 14,335,005 | | Net realized gain (loss) from investments | 2,901,339 | (21,194,997) | | Net change in unrealized appreciation (depreciation) on investments | 943,977 | 13,931,431 | | Net increase (decrease) in net assets resulting from operations | 13,932,263 | 6,610,438 | | WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $0.91 | $0.48 | [Supplemental Adjusted Net Investment Income Information](index=14&type=section&id=Supplemental%20Information%20Regarding%20Adjusted%20Net%20Investment%20Income,%20Adjusted%20Net%20Investment%20Income%20Yield%20and%20Adjusted%20Net%20Investment%20Income%20per%20Share) This section provides non-GAAP measures for adjusted net investment income (NII), NII yield, and NII per share, which exclude capital gains incentive fee expense or reversal - Adjusted Net Investment Income (NII) is a non-GAAP measure excluding capital gains incentive fee expense or reversal attributable to realized and unrealized gains[31](index=31&type=chunk) Adjusted NII Reconciliation (Q1 FY26 vs. Q1 FY25) | Metric | May 31, 2025 ($) | May 31, 2024 ($) | | :--- | :--- | :--- | | Net Investment Income | 10,142,033 | 14,335,005 | | Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | | Adjusted net investment income | 10,142,033 | 14,335,005 | | Net investment income yield | 10.3% | 15.5% | | Adjusted net investment income yield | 10.3% | 15.5% | | Net investment income per share | $0.66 | $1.05 | | Adjusted net investment income per share | $0.66 | $1.05 |

Core Insights - Saratoga Investment Corp. reported a 17.9% increase in adjusted net investment income (NII) per share and a 0.9% increase in net asset value (NAV) from the previous quarter, with a quarterly return on equity (ROE) of 14.1%, generating a last twelve months (LTM) ROE of 9.3%, surpassing the BDC industry average of 7.0% [1][2][4] Financial Performance - As of May 31, 2025, assets under management (AUM) were $968.3 million, down 11.6% from $1.095 billion a year earlier and down 1.0% from $978.1 million in the previous quarter [4] - Total investment income for the quarter was $32.3 million, a decrease of 16.4% from $38.7 million year-over-year but an increase of 3.3% from $31.3 million in the previous quarter [4][6] - NAV increased to $396.4 million, up $28.5 million from $367.9 million a year ago and up $3.7 million from $392.7 million in the previous quarter [4][6] - Adjusted NII for the quarter was $10.1 million, a decrease of 29.3% from $14.3 million year-over-year but an increase of 26.2% from $8.0 million in the previous quarter [6][4] Investment Activity - The company originated $50.1 million in new investments during the quarter, including two new portfolio companies and six follow-on investments [4][6] - Principal repayments totaled $64.3 million, which included one equity realization and multiple full and partial repayments of existing investments [4][6] - The fair value of the portfolio increased by $3.8 million during the quarter, with net realized gains of $2.9 million [4][6] Dividend and Shareholder Returns - The company declared a base dividend of $0.75 per share for the second quarter of fiscal 2026, representing an 11.8% yield based on the stock price of $25.44 as of July 7, 2025 [2][4] - The change to monthly dividends resulted in a one-time additional $0.50 per share dividend, increasing total dividends for the quarter to $1.25 per share [3][4] Portfolio Quality and Credit Metrics - The overall credit quality remained steady, with 99.7% of credits rated in the highest category, and only two investments on non-accrual status [4][6] - The portfolio composition consisted of 86.9% first lien term loans, indicating a strong focus on secured investments [4][6] Liquidity and Capital Resources - As of May 31, 2025, the company had $224.3 million in cash and cash equivalents, providing significant liquidity in a volatile macro environment [4][6] - The total undrawn borrowing capacity, including cash and credit facilities, was $430.3 million, allowing for potential new investments or support for existing portfolio companies [4][6]