PennantPark Investment (PNNT) - 2025 Q4 - Annual Results

Financial Performance - For the fiscal year ended September 30, 2025, the investment portfolio totaled $1,287.3 million, with net assets of $464.0 million and a net asset value per share of $7.11, reflecting a quarterly change of (3.4)%[2] - Net investment income for the year was $46.1 million, or $0.71 per share, down from $60.1 million, or $0.92 per share, in the previous year[20] - Total investment income for the year ended September 30, 2025, was $122.4 million, a decrease from $143.8 million in 2024[36] - The net increase in net assets resulting from operations was $32.7 million, or $0.50 per share, compared to $48.9 million, or $0.75 per share in the prior year[24] - The net increase in net assets resulting from operations was $18,369 million, compared to a decrease of $964 million in the previous period[37] Distributions and Expenses - The company declared distributions of $0.96 per share for the year, with a quarterly distribution of $0.24 per share[2] - Distributions declared during the year ended September 30, 2025, totaled $62.7 million, compared to $57.4 million in the previous year[30] - Total expenses for the year were $76.3 million, a decrease from $83.7 million in the previous year, primarily due to lower interest expenses[18] - Base management fee for the period was $4,005 million, a decrease from $4,297 million in the previous period[37] - General and administrative expenses rose to $1,250 million, compared to $850 million, marking a 47% increase[37] Investment Activity - For the year ended September 30, 2025, the company invested $746.6 million in 28 new and 161 existing portfolio companies, achieving a weighted average yield of 10.2%[9] - The weighted average yield on debt investments was 11.0% for the year, with a portfolio consisting of 166 companies and an average investment size of $7.0 million[7] - The company has a diversified investment strategy focusing on first lien secured debt, second lien secured debt, subordinated debt, and equity investments[38] Portfolio Status - As of September 30, 2025, the portfolio had net unrealized appreciation of $50.4 million, up from $11.2 million the previous year[22] - The company had four portfolio companies on non-accrual status, representing 1.3% of the overall portfolio on a cost basis[7] - The net unrealized depreciation on the Credit Facility as of September 30, 2025, was $(1.0) million, slightly improved from $(1.1) million in 2024[23] Liquidity and Capital Structure - As of September 30, 2025, the company had cash and cash equivalents of $51.8 million, up from $49.9 million in 2024, indicating improved liquidity[27] - The Truist Credit Facility had outstanding borrowings of $426.5 million as of September 30, 2025, with a weighted average interest rate of 6.5%, down from 7.2% in 2024[26] - The company expects to continue using debt capital and proceeds from securities offerings to finance its investment objectives[25] Future Outlook - The company anticipates continued growth in middle-market credit investments, leveraging its comprehensive financing solutions[40] - Forward-looking statements indicate potential risks and uncertainties that may affect future performance[41]