PennantPark Floating Rate Capital Ltd. reported its financial results for the quarter ending June 30, 2025, revealing a total investment income of $63.5 million, a significant increase from $48.5 million in the same quarter of the previous year. For the nine months ended June 30, 2025, the company generated $192.4 million in investment income, compared to $130.8 million for the same period in 2024. The rise in revenue is attributed to an expanded debt portfolio, which now includes $2.4 billion in total investments, up from $2.0 billion as of September 30, 2024.

The company’s net investment income for the quarter was $24.6 million, or $0.25 per share, compared to $21.2 million, or $0.31 per share, in the prior year. For the nine-month period, net investment income reached $79.6 million, or $0.88 per share, compared to $59.7 million, or $0.95 per share, in 2024. The increase in net investment income was primarily driven by higher investment income, although it was partially offset by increased expenses, which totaled $38.9 million for the quarter and $112.8 million for the nine months, up from $27.3 million and $71.1 million, respectively, in the previous year.

Operationally, PennantPark Floating Rate Capital Ltd. has seen a growth in its customer base, with 155 companies in its portfolio as of June 30, 2025, compared to 158 companies as of September 30, 2024. The average investment size has increased to $15.5 million, with a weighted average yield on debt investments of 10.4%. The company also reported two portfolio companies on non-accrual status, representing 1.0% and 0.5% of the overall portfolio on a cost and fair value basis, respectively.

Strategically, the company has engaged in significant capital transactions, issuing 2.8 million shares through its 2024 at-the-market offering program, raising approximately $31.6 million in the quarter. This follows the issuance of 21.6 million shares for $244.8 million in the nine months ending June 30, 2025. The company’s total net assets increased to $1.1 billion, with a net asset value per share of $10.96, down from $11.31 at the end of the previous fiscal year. The company’s outlook remains cautiously optimistic, with expectations of continued investment opportunities in the middle-market sector, although it acknowledges potential risks from market conditions and interest rate fluctuations.

Looking ahead, PennantPark Floating Rate Capital Ltd. plans to maintain its focus on floating rate loans to U.S. middle-market companies, which it believes offer attractive risk-reward profiles. The company is also committed to managing its capital structure effectively to comply with regulatory requirements while seeking to enhance shareholder value through strategic investments and distributions.

About PennantPark Floating Rate Capital Ltd.

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