Prospect Capital Corp

Latest Results (15.04.2026):

Prospect Capital Corporation reported results for its fiscal quarter ended December 31, 2025. The company generated net investment income of $90.9 million ($0.19 per common share) but net income (loss) applicable to common shareholders was a loss of $6.6 million ($(0.01) per share) after realized and unrealized investment losses. Prospect declared monthly common share distributions of $0.045 for February–April 2026, reported NAV per common share of $6.21 at quarter end, and continued to shift its portfolio toward first‑lien middle‑market loans.

Net investment income

Net investment income (NII) for the quarter was $90,888,000, or $0.19 per common share, up from $79.35 million in the prior quarter; interest made up 84.7% of total investment income for the period.

Earnings and valuation impact

Net realized and unrealized losses totaled approximately $70.0 million for the quarter, which contributed to net income (loss) applicable to common shareholders of $(6.576) million. NAV per common share was $6.21 at 12/31/2025, down from $7.84 a year earlier and $6.45 at 9/30/2025.

Distributions declared and paid

Prospect paid distributions of $63.9 million this quarter ($0.135 per common share) and declared monthly cash distributions of $0.045 per share for February, March and April 2026. Cumulative paid and declared distributions through the April 2026 distribution equal $21.93 per share (approx. $4.7 billion aggregate).

Portfolio composition and credit metrics

As of 12/31/2025, middle‑market lending represented 85% of investments at cost; first‑lien senior secured loans increased to 71.4% (based on cost). Non‑accrual loans remained low at 0.7% of total assets, and NPRC real estate exposure was 14.1% with a $270 million unrealized gain.

Activity — originations and repayments

Total originations in the quarter were $80.4 million (100% middle‑market), total repayments and sales were $79.3 million, resulting in modest net originations of $1.2 million.

Capital, liquidity and funding

Total assets were $6.534 billion with total liabilities of $1.952 billion. Balance sheet cash plus undrawn revolver commitments were $1.647 billion, net of cash debt to total assets was 28.2%, and the reported interest coverage ratio improved to 426%.

Funding actions and debt profile

Prospect issued ~$167.6 million of 5.5% senior unsecured Series A Notes due 2030 and repurchased portions of near‑term program and public notes during the quarter; weighted average cost of unsecured debt was 4.68% at 12/31/2025. Next material institutional bond maturity is $267.5 million in November 2026.

Track record and governance

Since its 2004 IPO through 12/31/2025, Prospect has invested over $22 billion across >450 investments with strong exited IRRs in its middle‑market lending focus (exited gross IRR ~14.5%). Senior management and employees own 27.9% of common shares (approx. $0.8 billion at NAV).