Saratoga Investment

SAY Q2 2026 Earnings

Reported Oct 7, 2025 at 4:07 PM ET · SEC Source

Q2 26 EPS

$0.84

BEAT +23.99%

Est. $0.68

Q2 26 Revenue

$30.6M

MISS 5.44%

Est. $32.4M

vs S&P Since Q2 26

-2.8%

TRAILING MARKET

SAY +6.2% vs S&P +9.0%

Market Reaction

Did SAY Beat Earnings? Q2 2026 Results

Saratoga Investment Corp. Fell short of Wall Street expectations in its fiscal second quarter, posting adjusted net investment income of $0.58 per share against analyst estimates of $0.65 and revenue of $30.63 million versus a consensus of $32.15 mil… Read more Saratoga Investment Corp. Fell short of Wall Street expectations in its fiscal second quarter, posting adjusted net investment income of $0.58 per share against analyst estimates of $0.65 and revenue of $30.63 million versus a consensus of $32.15 million, with shares sliding roughly 6% over the past three months in response to the earnings pressure. The primary culprit was a 28.8% year-over-year decline in total investment income, driven largely by the non-recurrence of $7.90 million in Knowland-related interest income recognized in the prior-year quarter, compounded by lower SOFR base rates and reduced AUM from outsized portfolio repayments. Yet the headline GAAP EPS of $0.84 told a more nuanced story, reflecting unrealized appreciation and realized gains that lifted NAV per share to $25.61 from $25.52 sequentially. Credit quality remained a relative bright spot, with 99.7% of credits in the top internal rating category and non-accruals at just 0.2% of fair value. Looking ahead, the company cited $52.30 million in post-quarter originations and $406.80 million in undrawn borrowing capacity as evidence that deployment momentum is building, while the board held its base quarterly dividend steady at $0.75 per share.

Key Takeaways

  • Net originations of $22.4 million during the quarter
  • Zollege investment returned to accrual status, reducing non-accrual to one investment at 0.2% of portfolio fair value
  • Core non-CLO portfolio marked up by $3.9 million
  • Quarterly annualized ROE of 13.8%, beating BDC industry average of 7.3%
  • NAV per share increased from $25.52 to $25.61 sequentially
  • 84.3% of portfolio in first lien term loans
  • 99.7% of credits rated in highest internal category
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SAY YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“This quarter's highlights include continued NAV and NAV per share growth from the previous quarter and year, a strong return on equity beating the industry, net originations of $22.4 million, and importantly, continued solid performance from the core BDC portfolio in a volatile macro environment, including the return of our Zollege investment to accrual status reducing our non-accrual investments to just one, representing only 0.2% of portfolio fair value.”

— Christian L. Oberbeck, Q2 2026 Earnings Press Release