Prospect Capital Corp

Prospect Capital Corporation delivered a split verdict for fiscal Q2 2026, beating revenue expectations while falling well short on the bottom line. Total investment income of $176.00 million topped the $156.34 million consensus by 12.58%, and revenue surged 266.4% year over year, yet reported EPS came in at negative $0.01, missing the $0.10 consensus estimate by 110.00% as $141.30 million in net realized investment losses overwhelmed an otherwise solid quarter of net investment income. Net investment income reached $90.89 million, or $0.19 per share, reflecting the company's ongoing pivot toward first lien senior secured middle market lending, which now comprises 71.4% of the portfolio at cost. That strategic rotation, however, has accompanied a shrinking portfolio, with total investments at fair value contracting to $6.44 billion from $7.13 billion a year ago, and NAV per share sliding to $6.21 from $7.84 over the same period. Adding a note of internal confidence to the picture, the company's COO recently purchased roughly $2.75 million in common shares on the open market.