Companies

Prospect Capital Corp

NASDAQ: PSEC
$2.29
▼ $0.03 (−1.08%) today
Markets open · 3:36pm ET

Q4 2025 Earnings

Reported Aug 27, 2025, 4:22pm ET · SEC source
$-0.50
Miss −493.70%
EPS · est. $0.13
$166.9M
Miss −0.08%
Revenue · est. $167.1M
−7.8%
Trailing market
PSEC vs S&P since report
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
−2%−1%0+1%Aug 27Aug 28report 4:22pm ETearnings+0.3%+0.3%
−2%−1%0+1%Aug 27Aug 28earnings+0.3%+0.3%
PSEC +0.3%S&P 500 +0.3%
−1.6%−0.8%0+0.8%Aug 27Aug 28report 4:22pm ETearnings+0.6%+0.3%
−1.6%−0.8%0+0.8%Aug 27Aug 28earnings+0.6%+0.3%
PSEC +0.3%NASDAQ +0.6%
−3%0+3%Aug 26Sep 4report 4:22pm ETearnings+0.6%+0.0%
−3%0+3%Aug 26Sep 4earnings+0.6%+0.0%
PSEC +0.0%S&P 500 +0.6%
−3%0+3%Aug 26Sep 4report 4:22pm ETearnings+0.8%+0.0%
−3%0+3%Aug 26Sep 4earnings+0.8%+0.0%
PSEC +0.0%NASDAQ +0.8%
+0.00%
Day of report
+2.76%
Next session
−0.34%
One week
−5.17%
30 days

S&P 500 over the same 30 days: +2.66%.

Did PSEC Beat Earnings? Q4 2025 Results

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.

Key Takeaways
  • Net realized losses of $308.5 million in Q4 driven primarily by non-control/non-affiliate investments
  • Net investment income declined to $79.0 million from $102.9 million year-over-year due to lower total investment income
  • Total investment income decreased to $166.9 million from $212.3 million in Q4 FY2024
  • Interest income (excluding PIK) fell to $141.1 million from $151.1 million
  • NAV per common share declined to $6.56 from $8.74 year-over-year
  • Non-accrual loans at cost increased to 4.0% of total assets from 2.7% a year ago

Forward Guidance & Outlook

Prospect expects to declare November 2025, December 2025, and January 2026 distributions to common shareholders in November 2025. Management continues to focus on rotating assets into first lien senior secured middle market loans, reducing second lien and structured notes exposure, and prudently exiting equity-linked assets including real estate properties and corporate investments such as Echelon Transportation. The next institutional bond maturity is $300 million in November 2026, with only $2.4 million of debt maturing in calendar year 2025.

PSEC YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$50.0M$100.0M$150.0M$80.3M$166.9MRevenue
$0$50.0M$100.0M$150.0MRevenue

Figures from SEC filings and company reports. Not investment advice.