PSEC · Prospect Capital Corporation

Prospect Capital Corporation reported fiscal quarter ended March 31, 2026 results showing Net Investment Income of $78.5 million, a decline from $90.9 million in the prior quarter and $83.5 million in the year-ago quarter, with NII per common share at $0.16 versus $0.19 in both comparative periods. Interest comprised 93.4% of total investment income, up from 84.7% prior quarter. Net income applicable to common shareholders swung to a positive $26.4 million or $0.05 per share from a $6.6 million loss previously and a $171.3 million loss year-ago. Distributions to common shareholders were $65.4 million or $0.135 per share. NAV per common share decreased to $6.05 from $6.21 prior quarter and $7.25 year-ago, reflecting total assets of $6.38 billion and liabilities of $1.82 billion. The company declared consistent monthly distributions of $0.035 per common share for May through August 2026, with record dates 5/27, 6/26, 7/29, and 8/27, and payment dates 6/18, 7/22, 8/20, and 9/17. Portfolio shifts emphasized first lien senior secured middle market loans at 72.0% of cost basis, up from 71.4%, with second lien at 12.4% and subordinated structured notes at 0.0%. Net investment activity showed $115.3 million originations (94% middle-market) offset by $222.2 million repayments and sales, resulting in a $107 million net reduction. Non-accrual loans remained low at 0.7% of total assets at fair value. Balance sheet liquidity included $1.75 billion in cash plus undrawn revolver commitments, with net of cash debt to total assets at 27.0%. Management highlighted AI and automation initiatives across portfolio companies to enhance revenues and efficiencies, alongside ongoing asset rotation into higher-yielding first lien loans and real estate exits. Cumulative distributions since inception reached $22.07 per common share through August 2026.