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Prospect Capital

Prospect Capital (PSEC) Q3 2025 Earnings

Reported May 9, 2025 at 4:05 PM ET · SEC Source

Q3 25 EPS

$-0.39

MISS 378.57%

Est. $0.14

Q3 25 Revenue

$170.7M

MISS 2.05%

Est. $174.3M

vs S&P Since Q3 25

-60.3%

TRAILING MARKET

PSEC -27.1% vs S&P +33.2%

Market Reaction

Did PSEC Beat Earnings? Q3 2025 Results

Prospect Capital delivered a deeply disappointing fiscal third quarter, posting a loss of $0.39 per share against a consensus estimate of $0.14, a miss of 378.57%, as the business development company was weighed down by $224.05 million in net realize… Read more Prospect Capital delivered a deeply disappointing fiscal third quarter, posting a loss of $0.39 per share against a consensus estimate of $0.14, a miss of 378.57%, as the business development company was weighed down by $224.05 million in net realized and unrealized investment losses that overwhelmed otherwise steady operating activity. Revenue fell 12.8% year-over-year to $170.72 million, narrowly missing the $174.29 million consensus by 2.05%, as total investment income continued to compress from $202.22 million a year ago. The sharp swing from prior-year net income of $0.27 per share underscores the severity of portfolio valuation pressure, which also dragged NAV per share down to $7.25 from $8.99 twelve months earlier. On a more constructive note, Prospect successfully retired its $156.20 million convertible bond in March 2025 and has minimal debt maturing through year-end, while management signaled continued strategic rotation toward first lien senior secured middle market loans and plans to declare September and October 2025 distributions at $0.04 per share monthly.

Key Takeaways

  • • Rotation of assets into first lien senior secured middle market loans, with first lien mix increasing 650 basis points year-over-year to 65.5%
  • • Continued amortization of subordinated structured notes portfolio, now down to 4.2% of total assets from 7.3% a year ago
  • • Net investment income of $83.5 million ($0.19 per share) for the quarter
  • • Total investment income decline driven by lower interest income and other income
  • • Significant net realized and unrealized losses of $224 million on investments during the quarter
  • • Operating expenses decreased to $87.2 million from $107.8 million year-over-year
  • • Non-accrual loans increased to 0.6% of total assets from 0.4% in prior quarter
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PSEC YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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