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Prospect Capital (PSEC) investor relations material
Prospect Capital Q2 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net investment income for the quarter was $91 million ($0.19 per share), up 5% year-over-year, with NAV at $3 billion ($6.21 per share) as of December 31, 2025.
Net assets applicable to common shares decreased to $2.96 billion, with NAV per share declining from $6.56 to $6.21 sequentially.
Distributions to common shareholders totaled $63.9 million for the quarter, with cumulative distributions since inception reaching $4.7 billion ($21.93 per share).
Strategic priorities include increasing first lien senior secured loan exposure, reducing second lien and subordinated structured notes, and exiting targeted equity-linked and real estate assets.
Portfolio rotation continues, focusing on companies with less than $50 million EBITDA and a strong emphasis on middle market lending.
Financial highlights
Total assets as of December 31, 2025, were $6.53 billion, down from $6.80 billion at June 30, 2025.
Net investment income for the quarter was $91 million; NAV stood at $3 billion ($6.21 per share).
Interest income for the 12 months ending December 2025 was 92% of total investment income, indicating a strong recurring revenue profile.
Non-accruals as a percentage of total assets were 0.7% as of December 2025.
Investment originations in the December quarter totaled $80.4 million, all in middle market investments, with $79 million in repayments and exits.
Outlook and guidance
Management expects continued volatility due to macroeconomic uncertainty, elevated interest rates, and geopolitical risks.
Monthly cash distributions of $0.045 per share have been declared for February, March, and April 2026.
Management remains focused on prudent leverage, liquidity, and balance sheet strength to capitalize on market opportunities.
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