Prospect Capital Announces Financial Results for December 2025

Financial Results - Prospect Capital Corporation reported a net investment income (NII) of $90,888,000 for the quarter ended December 31, 2025, an increase from $79,350,000 in the previous quarter and $86,431,000 in the same quarter last year [2] - The NII per common share was $0.19, compared to $0.17 in the previous quarter and $0.20 a year ago [2] - The company experienced a net loss applicable to common shareholders of $(6,576,000), a decrease from a profit of $48,087,000 in the previous quarter and a loss of $(30,993,000) in the same quarter last year [2] - Total assets decreased to $6,534,578,000 from $6,641,870,000 in the previous quarter and $7,234,855,000 a year ago [2] - The net asset value (NAV) per common share was $6.21, down from $6.45 in the previous quarter and $7.84 a year ago [2] Investment Activity - The company has invested over $22 billion across more than 450 investments since its initial public offering in July 2004, exiting over 350 of these investments [6] - The gross internal rate of return (IRR) on exited investments is approximately 12%, with total proceeds from exited investments amounting to approximately $16.7 billion against $13.1 billion invested [7] - In the middle market lending sector, the exited investments yielded a gross IRR of approximately 14.5%, with an annualized realized loss rate of 0.2% [8] - For companies with less than $50 million in EBITDA, the gross IRR reached approximately 17.2%, with an annualized net realized loss rate of 0.1% [9] Portfolio Composition - As of December 31, 2025, the portfolio included 91 companies across 32 industries, with total investments valued at $6,441,536,000 [18] - The first lien debt represented 71.4% of the total investments, while second lien debt accounted for 12.7% [19] - The company’s real estate property portfolio at National Property REIT Corp. constituted 14.1% of investments, yielding an income of 5.4% for the quarter [16] Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and various debt instruments [21] - As of December 31, 2025, the weighted average cost of unsecured debt financing was 4.68% [25] - The balance sheet cash and undrawn revolving credit facility commitments totaled $1,647,216,000 [24] Dividend Information - Prospect Capital Corporation declared monthly cash distributions of $0.045 per share for February, March, and April 2026 [4][5] - Cumulative distributions to common shareholders since inception amount to approximately $4.7 billion, equating to $21.93 per share [5]