Prospect Capital (PSEC) Q1 2026 Earnings
Reported May 7, 2026 at 5:00 PM ET · SEC Source
Q1 26 EPS
$0.05
MISS 54.55%
Est. $0.11
Q1 26 Revenue
$157.6M
MISS 3.43%
Est. $163.2M
Did PSEC Beat Earnings? Q1 2026 Results
Prospect Capital Corporation swung back to profitability in its fiscal third quarter ended March 31, 2026, posting net income of $26.41 million, or $0.05 per share, compared to a net loss of $171.33 million, or $0.39 per share, in the year-ago period… Read more Prospect Capital Corporation swung back to profitability in its fiscal third quarter ended March 31, 2026, posting net income of $26.41 million, or $0.05 per share, compared to a net loss of $171.33 million, or $0.39 per share, in the year-ago period. The turnaround was driven primarily by $57.64 million in net unrealized gains, which sharply reversed the $160.87 million in unrealized losses that weighed on results a year earlier, though net realized losses of $79.11 million provided a meaningful offset. Net investment income softened to $78.46 million, or $0.16 per share, from $83.49 million a year ago, reflecting total investment income of $150.07 million against $170.72 million in the prior-year quarter. NAV per share declined to $6.05 from $6.21 at December 31, 2025. Looking ahead, Prospect is prioritizing a continued rotation into first lien senior secured middle-market loans, which already account for 72.0% of investments at cost, while targeting additional exits from its real estate and equity-linked holdings to redeploy capital into higher-yielding core assets.
Key Takeaways
- • Return to positive net income driven by $57.6 million in net unrealized gains vs. $160.9 million unrealized losses in year-ago quarter
- • Rotation into first lien senior secured loans now at 72.0% of portfolio at cost, up 790 basis points since June 2024
- • Complete exit of subordinated structured notes portfolio (0.0% from 8.37% in June 2024)
- • Net investment income of $78.5 million ($0.16/share) declined from $83.5 million ($0.19/share) year-over-year
- • Total investment income declined to $150.1 million from $170.7 million in year-ago quarter
- • Net realized losses of $79.1 million partially offset unrealized appreciation
- • Middle-market investments comprised 94% of $115.3 million in quarterly originations
PSEC YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“Prospect is actively assessing and implementing the best use cases for artificial intelligence and automation within our critical business processes, including both within our investment processes as well as at the portfolio company operational level.”
— John Barry, Q1 2026 Earnings Press Release
PSEC Earnings Trends
PSEC vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PSEC EPS Trend
Earnings per share: estimate vs actual
PSEC Revenue Trend
Quarterly revenue: estimate vs actual
PSEC Quarterly Results
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $0.10 | $-0.01 | -110.00% | $176.0M | +12.58% |
| Q1 26 MISS | $0.11 | $0.05 | -54.55% | $157.6M | -3.43% |
| Q4 25 MISS FY | $0.13 | $-0.50 | -493.70% | $166.9M | -0.08% |
| FY Full Year | $0.54 | $-1.35 | -350.00% | $719.4M | -0.02% |
| Q3 25 MISS | $0.14 | $-0.39 | -378.57% | $170.7M | -2.05% |