Financial Results - Prospect Capital Corporation reported a net investment income (NII) of $79,043,000 for the quarter ended June 30, 2025, down from $102,922,000 in the same quarter of the previous year, representing a decrease of 23% [2] - The NII per common share was $0.17, compared to $0.25 for the same quarter last year [2] - The company experienced a net loss applicable to common shareholders of $(226,369,000) for the quarter, a significant increase from a loss of $(9,050,000) in the same quarter of the previous year [2] - Total assets decreased to $6,804,938,000 from $7,857,092,000 year-over-year [2] - The net asset value (NAV) per common share fell to $6.56 from $8.74 a year ago [2][27] Distribution and Shareholder Information - Distributions to common shareholders for the quarter totaled $61,181,000, with a distribution per common share of $0.135, unchanged from the previous quarter but down from $0.18 a year ago [2] - Cumulative paid and declared distributions to common shareholders reached approximately $4.6 billion, equating to $21.66 per share since inception [5] - The company declared monthly cash distributions of $0.0450 for September and October 2025 [4] Investment Strategy and Portfolio Update - As of June 30, 2025, the company has invested over $22 billion across more than 450 investments, with a realized gross internal rate of return (IRR) of approximately 12% on exited investments [6][7] - The focus has shifted towards first lien senior secured middle market loans, which now represent 70.5% of the investment portfolio, an increase of 642 basis points from the previous year [7] - The company has reduced its second lien senior secured middle market loans to 14.4% and exited its subordinated structured notes portfolio, which now represents only 0.6% of the investment portfolio [7][9] Capital and Liquidity - The company has a diversified funding profile, including a $2.1 billion revolving credit facility and has successfully retired multiple upcoming maturities [15] - As of June 30, 2025, the weighted average cost of unsecured debt financing was 4.52%, reflecting an increase from the previous year [19] - Unfunded eligible commitments to portfolio companies totaled approximately $40.7 million, representing 0.6% of total assets [16] Management and Ownership - Senior management and employees own 28.5% of all common shares outstanding, valued at approximately $0.9 billion based on NAV [11]