Saratoga Investment

SAY Q3 2026 Earnings

Reported Jan 7, 2026 at 4:05 PM ET · SEC Source

Q3 26 EPS

$0.74

BEAT +25.15%

Est. $0.59

Q3 26 Revenue

$31.6M

BEAT +0.96%

Est. $31.3M

vs S&P Since Q3 26

-6.5%

TRAILING MARKET

SAY -0.1% vs S&P +6.4%

Market Reaction

Did SAY Beat Earnings? Q3 2026 Results

Saratoga Investment Corp. Beat analyst expectations in fiscal Q3 2026, posting earnings of $0.74 per share on total investment income of $31.65 million, with adjusted net investment income of $0.61 per share clearing the $0.59 consensus estimate. The… Read more Saratoga Investment Corp. Beat analyst expectations in fiscal Q3 2026, posting earnings of $0.74 per share on total investment income of $31.65 million, with adjusted net investment income of $0.61 per share clearing the $0.59 consensus estimate. The business development company navigated a challenging rate environment, as its weighted average portfolio interest rate slipped to 10.6% from 11.8% a year ago, pulling total investment income down 11.8% year-over-year, though the sequential recovery of 3.3% from the prior quarter signaled stabilizing momentum. A $500,000 reduction in interest expenses, following $17.00 million in baby bond repayments and the replacement of the Encina Credit Facility with a new $85.00 million Valley National Bank facility, helped cushion margins. AUM crossed $1.02 billion, up 5.8% year-over-year, and net originations of $17.20 million in the quarter were followed by approximately $89.30 million in post-quarter closings, against $30.50 million in repayments, reinforcing management's confidence in a declared Q4 base dividend of $0.75 per share, representing a 12.9% annualized yield.

Key Takeaways

  • Core BDC net interest margin increased from $13.1 million to $13.5 million driven by $0.5 million decrease in interest expenses from baby bond repayments
  • Net originations of $17.2 million from $72.1 million in new investments and nine follow-ons offset by $54.9 million in repayments
  • OID accelerations from specific repayments contributed to sequential investment income increase
  • 99.8% of credits rated in highest category with only one investment on non-accrual
  • Core non-CLO portfolio marked up by $2.9 million including realized gains
  • Weighted average current yield on portfolio of 9.7% based on fair values
24/7 Wall St

SAY YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

“This quarter's highlights include continued NAV growth from the previous quarter and year with stable NAV per share, an increase in NII of $0.03 per share from the previous quarter, a strong 13.5% return on equity beating the industry, net originations of $17.2 million including three new portfolio companies, and importantly, continued solid performance from the core BDC portfolio in a volatile macro environment.”

— Christian L. Oberbeck, Q3 2026 Earnings Press Release