Prospect Capital
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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.
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Q2 2026 earnings summary10 Feb, 2026

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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Frequently asked questions

Prospect Capital Corporation is a U.S.-based business development company (BDC) that provides debt and equity financing to middle-market companies across various industries. The company primarily focuses on offering secured and unsecured loans, as well as equity investments, to support corporate growth, acquisitions, and recapitalizations. Prospect Capital's investment strategy covers a range of sectors, including manufacturing, energy, financial services, and real estate. The company aims to generate income and capital appreciation through its diversified portfolio of investments. The company is headquartered in New York, New York, and its shares are listed on the Nasdaq.

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