Saratoga Investment Corp. Announces 2025 Fiscal Year and Fourth Quarter Financial Results

Core Insights - Saratoga Investment Corp. reported a 4.7% sequential quarter and a 6.1% annual increase in Net Asset Value (NAV), while reducing leverage [1] - The company achieved net deployments of $25.9 million in the fiscal fourth quarter of 2025, supporting one new platform and six follow-on investments, with two additional new portfolio companies since year-end [1] - Non-accruals were reduced to 0.3% of fair value and 0.5% of cost in fiscal 2025, indicating improved credit quality [1] Financial Performance - As of February 28, 2025, Assets Under Management (AUM) were $978.1 million, a decrease of 14.1% from $1.139 billion as of February 29, 2024, but an increase of 1.9% from $960.1 million last quarter [9] - Total investment income for the year ended February 28, 2025, was $148.9 million, an increase of $5.2 million, or 3.6%, from the previous year [9] - For the fiscal fourth quarter, total investment income was $31.3 million, a decrease of $5.9 million, or 15.9%, from the same quarter last year [9] Earnings and Dividends - Net Investment Income (NII) per share for the year was $3.81, compared to $4.10 the previous year, reflecting a dilution from increased share count [5] - Earnings per share (EPS) for the year was $2.02, up from $0.71 in the previous year [5] - The company declared a base quarterly dividend of $0.74 per share for the fiscal fourth quarter and transitioned to a monthly dividend structure, increasing the quarterly base dividend to $0.75 for the first quarter of fiscal 2026 [19][18] Portfolio and Investment Activity - The fair value of Saratoga Investment's portfolio was $978.1 million, with 88.7% in first lien debt [8][14] - The company executed approximately $45.5 million of new originations in two new portfolio companies and six follow-ons since quarter-end [11] - The overall portfolio composition included 88.7% first lien term loans, with a weighted average current yield of 10.8% [14] Leverage and Credit Quality - The company reduced its regulatory leverage from 161.1% to 162.9% due to the NAV increase of $22.5 million from the previous year [5] - The overall credit quality remained steady, with 99.7% of credits rated in the highest category, and only two investments on non-accrual status [5][6] - The current cash position was $204.7 million, providing a strong level of cash availability in a volatile macro environment [5]