Prospect Capital Corp. Reports Decrease in Net Asset Value and Investment Income for March 2026

Prospect Capital Corp. (PSEC) reported its financial results in a recent 10-Q filing, revealing a net asset value per common share of $6.05 as of March 31, 2026, a decrease from $6.56 as of June 30, 2025. The company's total assets were $6.38 billion and $6.80 billion, respectively. The net increase in net assets resulting from operations applicable to common stockholders was $26.4 million, or $0.05 per share, for the three months ended March 31, 2026, compared to a net decrease of $171.3 million, or $0.39 per share, for the three months ended March 31, 2025. For the nine months ended March 31, 2026, the net increase was $67.9 million, or $0.14 per share, compared to a net decrease of $367.4 million, or $0.84 per share, for the nine months ended March 31, 2025.

The company's investment income totaled $150.1 million for the three months ended March 31, 2026, down from $170.7 million for the same period in the previous year. Interest income decreased from $159.3 million to $140.1 million, while dividend income increased slightly from $7.8 million to $8.1 million. Operating expenses decreased from $87.2 million to $71.6 million, primarily due to a reimbursement of administration expenses. The company's revolving credit facility balance decreased from $856.3 million as of June 30, 2025 to $403.7 million as of March 31, 2026, while public notes increased from $593.4 million to $706.0 million.

Prospect Capital's portfolio composition as of March 31, 2026, included control investments at a fair value of $3.68 billion, affiliate investments at $36.4 million, and non-control/non-affiliate investments at $2.59 billion. The company's investment strategy focuses on secured lending to middle-market companies, with 74.33% of interest-earning investments bearing floating interest rates. The company's non-accrual loans represented 0.7% of total assets at fair value. The company's weighted average interest rate earned on performing interest bearing assets was 12.11% as of March 31, 2026.

Strategic developments included the issuance of $164.5 million in public notes and the redemption of $51.9 million in convertible notes. The company also issued preferred stock, net of underwriting costs, for $53.0 million and redeemed preferred stock for $8.3 million. The company's board reauthorized $1 billion of Prospect Capital InterNotes for sale under the Selling Agent Agreement. The company's board also approved a share repurchase plan, with approximately $65.9 million remaining available for purchases.

The filing also contains forward-looking statements regarding the company's future operating results, business prospects, and investment returns, which are subject to various risks and uncertainties, including economic conditions, market volatility, and regulatory changes. These statements should be considered with caution, as actual results may differ materially from expectations.