Saratoga Investment Corp. Announces Fiscal Second Quarter 2026 Financial Results

Core Insights - Saratoga Investment Corp. reported a 3.6% increase in Net Asset Value (NAV) and a 0.4% increase in NAV per share from the previous quarter, reflecting strong financial performance [1][3] - The company achieved a quarterly Return on Equity (ROE) of 13.8%, resulting in a Last Twelve Months (LTM) ROE of 9.1%, which surpasses the Business Development Company (BDC) industry average of 7.3% [1][3] - The Zollege investment has returned to accrual status, with only one investment remaining on non-accrual status, representing 0.2% of the portfolio at fair value [1][4] Financial Performance - As of August 31, 2025, total assets under management (AUM) were $995.3 million, a decrease of 4.4% year-over-year but an increase of 2.8% from the previous quarter [2][5] - Total investment income for the quarter was $30.6 million, down 28.8% from $43.0 million year-over-year and down 5.2% from $32.3 million in the previous quarter [5][6] - Net Investment Income (NII) per share was $0.58, reflecting a decrease from $1.33 year-over-year and $0.66 from the previous quarter [2][5] - Earnings per share (EPS) for the quarter was $0.84, compared to $0.97 in the same quarter last year [2][5] Portfolio and Investment Activity - The fair value of the portfolio increased by $3.8 million during the quarter, with the core non-CLO portfolio marked up by $3.9 million [4][6] - The company originated $52.2 million in new investments during the quarter, while principal repayments totaled $29.8 million [2][5] - The portfolio composition included 84.3% in first lien debt, indicating a focus on high-quality investments [13] Dividend and Shareholder Returns - The company declared a base dividend of $0.75 per share for the third quarter of fiscal 2026, maintaining a strong dividend distribution history [15][16] - The annualized second quarter dividend of $0.75 per share represents a 12.3% yield based on the stock price of $24.41 as of October 6, 2025 [2][4] Liquidity and Capital Resources - As of August 31, 2025, the company had $200.8 million in cash and cash equivalents, providing a strong liquidity position [4][14] - The total undrawn borrowing capacity, including cash and credit facilities, amounted to $406.8 million, enhancing the company's ability to pursue new investments [14]