Prospect Capital (PSEC) Q4 2025

Q2 2026 Q1 2026 Q4 2025 Q3 2025

Earnings

Prospect Capital delivered a deeply disappointing fiscal fourth quarter, missing analyst expectations by a wide margin as $308.48 million in net realized investment losses overwhelmed operating results. The business development company posted an EPS … Read more Prospect Capital delivered a deeply disappointing fiscal fourth quarter, missing analyst expectations by a wide margin as $308.48 million in net realized investment losses overwhelmed operating results. The business development company posted an EPS loss of $0.50 per share, falling far short of the $0.13 consensus estimate by 484.62%, while revenue of $166.95 million trailed the $395.57 million consensus by 57.80%, despite rising 107.9% year over year. The realized losses cascaded into a net loss applicable to common stockholders of $226.37 million for the quarter, a sharp deterioration from a $9.05 million loss in the year-ago period, and net asset value per share eroded 24.9% to $6.56 from $8.74. Management framed the results around an ongoing strategic shift toward first lien senior secured middle market loans, with that allocation climbing 642 basis points to 70.5% at cost, while the subordinated structured notes portfolio was substantially exited. Looking ahead, the company is expected to declare distributions through January 2026, with its next significant debt maturity of $300 million not arriving until November 2026.