Prospect Capital(PSEC) - 2026 Q1 - Quarterly Results

Financial Performance - Net Investment Income (NII) for the quarter ended September 30, 2025, was $79,350,000, a decrease of 11.7% from $89,877,000 in the same quarter of 2024[2] - Net Income applicable to common shareholders was $48,087,000, compared to a loss of $165,069,000 in the same quarter of 2024[2] - Total interest income (excluding PIK interest income) for the three months ended September 30, 2025, was $136,978,000, down from $151,471,000 for the same period in 2024, a decrease of about 9.6%[25] - Net investment income for the three months ended September 30, 2025, was $79,350,000, compared to $89,877,000 for the same period in 2024, reflecting a decline of approximately 11.7%[25] - The net increase in net assets resulting from operations applicable to common stockholders for the three months ended September 30, 2025, was $48,087,000, compared to a loss of $165,069,000 for the same period in 2024[25] - Total operating expenses decreased to $78,274,000 for the three months ended September 30, 2025, down from $106,431,000 for the same period in 2024, a reduction of about 26.4%[25] - The diluted net increase from operations applicable to common stockholders was $0.08 for the three months ended September 30, 2025, compared to a diluted net decrease of $0.38 for the same period in 2024[26] Asset and Investment Overview - Total assets decreased to $6,641,870,000 from $7,592,705,000 year-over-year, reflecting a decline of 12.5%[2] - Total investments at fair value decreased to $6,513,456,000 as of September 30, 2025, from $6,673,516,000 as of June 30, 2025, representing a decline of approximately 2.4%[23] - Control investments at fair value increased to $3,710,632,000 as of September 30, 2025, from $3,696,367,000 as of June 30, 2025, reflecting a growth of about 0.4%[23] - The first lien senior secured loans increased to 71.1% of the investment portfolio, up 701 basis points from June 2024[6] - The company primarily invests in private, middle-market companies in the U.S. with annual revenues of less than $750 million and enterprise values of less than $1 billion[28] - The typical investment involves a senior and secured loan of less than $250 million, focusing on capital for refinancings, acquisitions, and growth initiatives[28] - The company also invests in senior and secured debt and controlling equity positions in real estate investment trusts (REITs), generating current yields from developed properties[30] Cash and Distributions - The company declared monthly cash distributions of $0.0450 per share for November 2025, December 2025, and January 2026, totaling approximately $4.6 billion in cumulative distributions since inception[3] - Cash and cash equivalents increased to $86,541,000 as of September 30, 2025, from $50,788,000 as of June 30, 2025, marking a significant increase of approximately 70.5%[23] - The dividend payable decreased to $21,288,000 as of September 30, 2025, from $28,836,000 as of June 30, 2025, a decline of approximately 26.4%[23] - Total distributions to common stockholders were $0.14 per share for the three months ended September 30, 2025, down from $0.18 per share in the same period of 2024[26] Debt and Financing - The weighted average cost of unsecured debt financing was 4.54%, reflecting an increase of 0.02% from the previous quarter[17] - The company has a total of $2.1 billion in revolving credit facility commitments, with $2.4 million remaining of debt maturing during calendar year 2025[13] Net Asset Value - The net asset value (NAV) per common share decreased to $6.45 from $8.10 year-over-year[2] - The net asset value per common share as of September 30, 2025, was $6.45, down from $6.56 as of June 30, 2025, indicating a decrease of approximately 1.7%[23] - Net asset value per common share decreased from $8.74 at the beginning of the period to $6.45 at the end of the period, representing a decline of approximately 26.2%[26] Future Outlook - Forward-looking statements made by the company are subject to various risks and uncertainties, and actual results may vary materially from those projected[35] - The internal rate of return (IRR) calculations are gross of general expenses and are historical results, not necessarily indicative of future performance[27] Corporate Events - The company will host an earnings call on November 7, 2025, at 9:00 a.m. Eastern Time[21]