Saratoga Investment

SAY Q1 2026 Earnings

Reported Jul 8, 2025 at 4:05 PM ET · SEC Source

Q1 26 EPS

$0.91

BEAT +27.04%

Est. $0.72

Q1 26 Revenue

$32.3M

MISS 1.45%

Est. $32.8M

vs S&P Since Q1 26

-2.4%

TRAILING MARKET

SAY +15.2% vs S&P +17.5%

Market Reaction

Did SAY Beat Earnings? Q1 2026 Results

Saratoga Investment Corp. Posted a stronger-than-expected fiscal first quarter, with earnings per share of $0.91 beating the $0.72 consensus estimate by 27.04%, even as revenue of $32.32 million came in just 1.45% below the $32.79 million Wall Street… Read more Saratoga Investment Corp. Posted a stronger-than-expected fiscal first quarter, with earnings per share of $0.91 beating the $0.72 consensus estimate by 27.04%, even as revenue of $32.32 million came in just 1.45% below the $32.79 million Wall Street expected. The headline EPS recovery, swinging sharply from a $0.05 loss last quarter, was driven primarily by $2.90 million in net realized gains, including an equity realization in the Identity investment, alongside $943,977 in net unrealized appreciation. Total investment income grew 41.5% year over year in revenue terms, though lower base interest rates and a reduced asset base, with AUM declining to $968.30 million from $1.10 billion a year ago, continued to weigh on the broader income picture. NAV per share rose to $25.52, and the company ended the quarter with $430.30 million in total undrawn borrowing capacity. Looking ahead, management acknowledged ongoing macro headwinds from tariff uncertainty and muted M&A activity, while pointing to its substantial liquidity position as a foundation for disciplined long-term portfolio growth.

Key Takeaways

  • Full-period impact of Q4 originations drove sequential investment income increase
  • Net interest margin expanded from $13.7 million to $15.6 million sequentially
  • Interest expense decreased by $0.5 million from SBIC II debenture repayment and baby bond redemption
  • Non-recurrence of $2.4 million annual excise tax recognized last quarter boosted adjusted NII
  • $2.9 million of realized gains from equity realization and debt repayments
  • 99.7% of credits rated in highest internal category
  • 86.9% first lien debt portfolio composition
  • Weighted average current yield of 10.7% on the portfolio
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SAY YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

“This quarter's highlights include a 17.9% increase in adjusted NII per share from the previous quarter, continued growth of NAV, a strong return on equity beating the industry, two new portfolio company investments and most importantly, a continued solid performance from the core BDC portfolio in a volatile macro environment.”

— Christian L. Oberbeck, Q1 2026 Earnings Press Release