{"id":997065,"date":"2026-08-20T16:20:34","date_gmt":"2026-08-20T20:20:34","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/prospect-capital-announces-june-2026-results\/"},"modified":"2026-08-20T16:20:34","modified_gmt":"2026-08-20T20:20:34","slug":"prospect-capital-announces-june-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/prospect-capital-announces-june-2026-results\/","title":{"rendered":"Prospect Capital Announces June 2026 Results"},"content":{"rendered":"
\n

NEW YORK, Aug. 20, 2026 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (\u201cProspect\u201d, \u201cour\u201d, or \u201cwe\u201d) today announced financial results for our fiscal quarter and fiscal year ended June 30, 2026.<\/p>\n

\n FINANCIAL RESULTS<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n All amounts in $000\u2019s except<\/em>
\n
\n per share amounts (on weighted average<\/em>
\n
\n basis for period numbers)<\/em>
\n \n <\/td>\n		\n Quarter Ended<\/strong>\n <\/td>\n\n Quarter Ended<\/strong>\n <\/td>\n\n Quarter Ended<\/strong>\n <\/td>\n<\/tr>\n
\n June 30, 2026<\/strong>\n <\/td>\n\n March 31, 2026<\/strong>\n <\/td>\n\n June 30, 2025<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net Investment Income (\u201cNII\u201d)<\/td>\n$77,692<\/td>\n$78,457<\/td>\n$79,043<\/td>\n<\/tr>\n
NII per Common Share<\/td>\n$0.15<\/td>\n$0.16<\/td>\n$0.17<\/td>\n<\/tr>\n
Interest as % of Total Investment Income<\/td>\n90.1%<\/td>\n93.4%<\/td>\n94.9%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net Income (Loss) Applicable to Common Shareholders<\/td>\n$(38,091)<\/td>\n$26,408<\/td>\n$(226,369)<\/td>\n<\/tr>\n
Net Income (Loss) per Common Share<\/td>\n$(0.08)<\/td>\n$0.05<\/td>\n$(0.50)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Distributions to Common Shareholders<\/td>\n$57,988<\/td>\n$65,421<\/td>\n$61,181<\/td>\n<\/tr>\n
Distributions per Common Share<\/td>\n$0.115<\/td>\n$0.135<\/td>\n$0.135<\/td>\n<\/tr>\n
Cumulative Paid and Declared Distributions to Common Shareholders(1)<\/sup><\/td>\n$4,809,658<\/td>\n$4,770,919<\/td>\n$4,569,727<\/td>\n<\/tr>\n
Cumulative Paid and Declared Distributions per Common Share(1)<\/sup><\/td>\n$22.14<\/td>\n$22.07<\/td>\n$21.66<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Assets<\/td>\n$6,448,627<\/td>\n$6,383,972<\/td>\n$6,804,938<\/td>\n<\/tr>\n
Total Liabilities<\/td>\n$1,945,331<\/td>\n$1,816,573<\/td>\n$2,186,266<\/td>\n<\/tr>\n
Perpetual Preferred Stock<\/td>\n$1,574,450<\/td>\n$1,613,772<\/td>\n$1,629,900<\/td>\n<\/tr>\n
Net Asset Value (\u201cNAV\u201d) to Common Shareholders<\/td>\n$2,928,846<\/td>\n$2,953,627<\/td>\n$2,988,772<\/td>\n<\/tr>\n
NAV per Common Share<\/td>\n$5.71<\/td>\n$6.05<\/td>\n$6.56<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments<\/td>\n$1,602,744<\/td>\n$1,752,375<\/td>\n$1,315,967<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Net of Cash Debt to Total Assets<\/td>\n28.6%<\/td>\n27.0%<\/td>\n30.4%<\/td>\n<\/tr>\n
Net of Cash Debt to Total Equity Ratio(2)<\/sup><\/td>\n40.7%<\/td>\n37.6%<\/td>\n44.4%<\/td>\n<\/tr>\n
Net of Cash Asset Coverage of Debt Ratio(2)<\/sup><\/td>\n345%<\/td>\n366%<\/td>\n325%<\/td>\n<\/tr>\n
Interest Coverage(3)<\/sup><\/td>\n366%<\/td>\n356%<\/td>\n351%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Unsecured Debt + Perpetual Preferred Equity as % of Total Debt + Perpetual Preferred Equity<\/td>\n83.7%<\/td>\n88.0%<\/td>\n77.1%<\/td>\n<\/tr>\n
Unsecured and Non-Recourse Debt as % of Total Debt<\/td>\n100.0%<\/td>\n100.0%<\/td>\n100.0%<\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n\n
\n (1)<\/sup>\n <\/td>\nDeclared dividends are through the October 2026 distribution. August 2026 through October 2026 distributions are estimated based on shares outstanding as of 8\/19\/2026.<\/td>\n<\/tr>\n
\n (2)<\/sup>\n <\/td>\nIncluding our perpetual preferred stock as equity.<\/td>\n<\/tr>\n
\n (3)<\/sup>\n <\/td>\nCalculated as (Net Investment Income + Interest Expense + Incentive Fees) \/ Interest Expense.<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION<\/strong>\n <\/p>\n

Prospect is declaring distributions to common shareholders as follows:<\/p>\n\n\n\n\n
\n Monthly Cash Common Shareholder Distribution<\/strong>\n <\/td>\n\n Record Date<\/strong>\n <\/td>\n\n Payment Date<\/strong>\n <\/td>\n\n Amount ($ per share)<\/strong>\n <\/td>\n<\/tr>\n
September 2026<\/td>\n9\/28\/2026<\/td>\n10\/21\/2026<\/td>\n$0.0350<\/td>\n<\/tr>\n
October 2026<\/td>\n10\/28\/2026<\/td>\n11\/18\/2026<\/td>\n$0.0350<\/td>\n<\/tr>\n<\/table>\n

\n
Taking into account past distributions and our current share count for declared distributions, since inception through our October 2026 declared distribution, Prospect will have distributed $22.14 per share to original common shareholders, aggregating over $4.8 billion in cumulative distributions to all common shareholders.<\/p>\n

Since Prospect\u2019s initial public offering in July 2004 through June 30, 2026, Prospect has invested approximately $23 billion in more than 450 investments, exiting over 350 of these investments.<\/p>\n

Since Prospect’s initial public offering in July 2004 through June 30, 2026, Prospect’s exited investments resulted in an investment level exited gross internal rate of return (“IRR”) of approximately 12% (based on total capital invested of approximately $13.4 billion and total proceeds from such exited investments of approximately $17.2 billion).<\/p>\n

In Prospect\u2019s primary business of middle market lending since 2004, Prospect\u2019s exited investments resulted in an investment level exited gross IRR of approximately 14.4% (based on total capital invested of approximately $11.5 billion and total proceeds from such exited investments of approximately $14.7 billion), with an annualized realized loss rate of 0.2%.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n
\n Middle-Market Lending Track Record<\/u>
\n <\/strong>\n <\/td>\n		\n
\n Overall<\/u>
\n <\/strong>\n <\/td>\n		\n
\n Exited<\/u>
\n <\/strong>\n <\/td>\n<\/tr>\n
Investments<\/td>\n365<\/td>\n293<\/td>\n<\/tr>\n
Total Capital Invested<\/td>\n$17.5 billion<\/td>\n$11.5 billion<\/td>\n<\/tr>\n
Total Proceeds<\/td>\n$19.2 billion<\/td>\n$14.7 billion<\/td>\n<\/tr>\n
Amount Remaining(1)<\/sup><\/td>\n$5.3 billion<\/td>\n$0 billion<\/td>\n<\/tr>\n
\n Total<\/strong>\n <\/td>\n\n $24.5 billion<\/strong>\n <\/td>\n\n $14.7 billion<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n
\n Exited Gross IRR<\/u>
\n <\/strong>\n <\/td>\n		\u00a0<\/td>\n\n 14.4%<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n
\n Credit Statistics<\/u>
\n <\/strong>\n <\/td>\n		\n
\n Reference<\/u>
\n <\/strong>
\n (<\/sup>
\n 2<\/sup>
\n )<\/sup>\n <\/td>\n		\n
\n PSEC Average<\/u>
\n <\/strong>\n <\/td>\n<\/tr>\n
Middle-Market Net Leverage<\/td>\n6.1x<\/td>\n4.9x<\/td>\n<\/tr>\n
Middle-Market Cash Interest Coverage<\/td>\n160%<\/td>\n223%<\/td>\n<\/tr>\n
Annualized Net Realized Loss Rate<\/td>\n1.0%<\/td>\n0.2%(<\/sup>3<\/sup>)<\/sup><\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n\n
\n (1)<\/sup>\n <\/td>\nAmount remaining represents the fair value of investments and any additional net interest receivable.<\/td>\n<\/tr>\n
\n (2)<\/sup>\n <\/td>\nReference Middle-Market Net Leverage and Middle-Market Cash Interest Coverage from KBRA Private Credit: Q2 2026 Middle Market Compendium. Such quarterly report includes median statistics for 2,785 unique global middle-market sponsored borrowers assessed over the last twelve months ended June 30, 2026. Reference Loss Rate is calculated by taking the default rate * (1 \u2013 the recovery rate). The default rate is calculated by taking the PitchBook average monthly reported LTM default rate for leveraged loans from September 2004 through June 2026. The recovery rate reflects Moody\u2019s average assumption from its loss given default framework used for speculative-grade issuers.<\/td>\n<\/tr>\n
\n (3)<\/sup>\n <\/td>\nPSEC annualized net realized loss rate defined as realized gains\/(losses) on investments as a percentage of total invested capital since inception, divided by the number of years since inception for the respective investments.<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

Drivers focused on optimizing our business include:<\/p>\n

(1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans (with our first lien mix increasing 840 basis points to 72.5% (based on cost) from June 2024), including investments in companies with smaller funded private equity sponsors, independent sponsors, and no third party financial sponsors;<\/p>\n

(2) reduction in our second lien senior secured middle market loans (with our second lien mix decreasing 454 basis points to 11.9% (based on cost) from June 2024);<\/p>\n

(3) exit of our subordinated structured notes portfolio (with our subordinated structured notes mix decreasing 837 basis points to 0.0% (based on cost) from June 2024);<\/p>\n

(4) exit of targeted lower yielding equity linked assets, including real estate properties (with six additional properties sold in the fiscal year ended June 2026) and certain corporate investments (such as the exit of Echelon Transportation, LLC in February 2026 and Valley Electric Company, Inc. in July 2026), with other potential exits targeted and in process;<\/p>\n

(5) enhancement of portfolio company operating performance and profitability, including through adoption of AI and automation initiatives focused on enhancing revenues and producing cost efficiencies; and<\/p>\n

(6) utilization of our cost effective floating rate revolver (which significantly matches our majority floating rate assets) while continuing to operate with one of the lowest debt leverage levels in the industry (28.6% net of cash debt to total assets as of June 30, 2026, which did not reflect the immediately deleveraging impact of the Valley Electric Company, Inc. (\u201cValley Electric\u201d) sale that closed on July 1, 2026).<\/p>\n

On July 1, 2026, Prospect closed the successful sale of its portfolio company Valley Electric, with total consideration of approximately $328 million (subject to post-closing adjustments and payments). Over the life of the Valley Electric investment since 2012 and including expected net exit proceeds of approximately $281 million (including potential post-closing adjustments and payments), together with prior interest on debt, equity distributions, and other cash flow streams, Prospect achieved a 20.5% realized gross annualized internal rate of return (\u201cIRR\u201d) and 4.8 times multiple of invested capital.<\/p>\n

On June 30, 2026, $562.3 million was drawn under our current $2.1 billion revolver. Such drawn amount would have been $322.7 million on a pro forma basis assuming that the cash received on July 1, 2026, from the sale of Valley Electric had been received previously and repaid borrowings under our revolver.<\/p>\n

In our middle market lending strategy, which represented 85% of our investments at cost as of June 30, 2026, we continued our focus on first lien senior secured loans during the quarter. Middle market investments comprised 91% of our $166.3 million of originations during the June 2026 quarter. Investments during the quarter included new first lien senior and secured loan investments in Safety Solutions Financing, LLC (a provider of fire security products and services), Abacus Dermatology Management, LLC (a management services organization), and Eyefive, LLC (d\/b\/a Shipoffers, a provider of on-demand product and order fulfillment services), as well as follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.<\/p>\n

As of June 30, 2026, our portfolio included 2.3% (based on fair market value) of investments in software companies, significantly lower than the 22% average across business development companies included in a June 9, 2026 Oppenheimer equity research report.<\/p>\n

Our real estate property portfolio at National Property REIT Corp. (\u201cNPRC\u201d) totaled 14.2% of our investments at cost as of June 30, 2026 and continued its focus on already developed and occupied cash flow multifamily investments. Since the inception of this strategy in 2012 and through June 30, 2026, we have exited 58 property investments that have earned an unlevered investment-level gross cash IRR of 24% and cash on cash multiple of 2.4 times. We exited six property investments in the current fiscal year through June 30, 2026 that earned an unlevered investment-level gross cash IRR of 18% and cash on cash multiple of 2.3 times. The remaining real estate property portfolio as of June 30, 2026 included 52 properties and paid us an income yield of 5.3% for the quarter ended June 30, 2026. These properties provide from time to time opportunities for Prospect to exit certain such investments and recycle into more and higher yielding corporate first lien senior secured loans with selected equity linked investments outside of NPRC. Our aggregate investment in NPRC included a $185 million unrealized gain as of June 30, 2026.<\/p>\n

Our senior management team and employees own 26.7% of all common shares outstanding or approximately $0.8 billion of our common equity as measured at NAV.<\/p>\n

\n PORTFOLIO UPDATE AND INVESTMENT ACTIVITY<\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
All amounts in $000\u2019s except
per unit amounts<\/td>\n		\n As of<\/strong>\n <\/td>\n\n As of<\/strong>\n <\/td>\n\n As of<\/strong>\n <\/td>\n<\/tr>\n
\n June 30, 2026<\/strong>\n <\/td>\n\n March 31, 2026<\/strong>\n <\/td>\n\n June 30, 2025<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Investments (1)<\/sup><\/td>\n$6,315,369<\/td>\n$6,192,901<\/td>\n$6,693,501<\/td>\n<\/tr>\n
Total Investments (2)<\/sup><\/td>\n$6,342,558<\/td>\n$6,302,465<\/td>\n$6,673,516<\/td>\n<\/tr>\n
Number of Portfolio Companies<\/td>\n91<\/td>\n89<\/td>\n97<\/td>\n<\/tr>\n
Number of Industries<\/td>\n31<\/td>\n31<\/td>\n33<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
First Lien Debt<\/td>\n72.5%<\/td>\n72.0%<\/td>\n70.5%<\/td>\n<\/tr>\n
Second Lien Debt<\/td>\n\n 11.9%<\/u>\n <\/td>\n\n 12.4%<\/u>\n <\/td>\n\n 14.4%<\/u>\n <\/td>\n<\/tr>\n
Total Senior and Secured Debt<\/td>\n84.4%<\/td>\n84.4%<\/td>\n84.9%<\/td>\n<\/tr>\n
Unsecured Debt<\/td>\n0.1%<\/td>\n0.1%<\/td>\n0.1%<\/td>\n<\/tr>\n
Subordinated Structured Notes<\/td>\n\u2014%<\/td>\n\u2014%<\/td>\n0.6%<\/td>\n<\/tr>\n
Equity Investments<\/td>\n\n 15.5%<\/u>\n <\/td>\n\n 15.5%<\/u>\n <\/td>\n\n 14.4%<\/u>\n <\/td>\n<\/tr>\n
Total Investments (1)<\/sup><\/td>\n100.0%<\/td>\n100.0%<\/td>\n100.0%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
First Lien Debt<\/td>\n67.6%<\/td>\n66.9%<\/td>\n66.9%<\/td>\n<\/tr>\n
Second Lien Debt<\/td>\n\n 9.1%<\/u>\n <\/td>\n\n 9.4%<\/u>\n <\/td>\n\n 11.5%<\/u>\n <\/td>\n<\/tr>\n
Total Senior and Secured Debt<\/td>\n76.7%<\/td>\n76.3%<\/td>\n78.4%<\/td>\n<\/tr>\n
Unsecured Debt<\/td>\n0.1%<\/td>\n0.1%<\/td>\n0.1%<\/td>\n<\/tr>\n
Subordinated Structured Notes<\/td>\n\u2014%<\/td>\n0.1%<\/td>\n0.5%<\/td>\n<\/tr>\n
Equity Investments<\/td>\n\n 23.2%<\/u>\n <\/td>\n\n 23.5%<\/u>\n <\/td>\n\n 21.0%<\/u>\n <\/td>\n<\/tr>\n
Total Investments (2)<\/sup><\/td>\n100.0%<\/td>\n100.0%<\/td>\n100.0%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Non-Accrual Loans as % of Total Assets (2)<\/sup><\/td>\n0.7%<\/td>\n0.7%<\/td>\n0.3%<\/td>\n<\/tr>\n<\/table>\n

\n \n <\/p>\n\n\n\n\n\n
\n (1)<\/sup>\n <\/td>\nCalculated at cost.<\/td>\n<\/tr>\n
\n (2)<\/sup>\n <\/td>\nCalculated at fair value.<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

During the March 2026 and June 2026 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
All amounts in $000\u2019s<\/td>\n\n Quarter Ended<\/strong>\n <\/td>\n\n Quarter Ended<\/strong>\n <\/td>\n<\/tr>\n
\n June 30, 2026<\/strong>\n <\/td>\n\n March 31, 2026<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Originations<\/td>\n$166,321<\/td>\n$115,276<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Middle-Market<\/td>\n90.5%<\/td>\n94.2%<\/td>\n<\/tr>\n
Real Estate<\/td>\n9.5%<\/td>\n5.4%<\/td>\n<\/tr>\n
Other<\/td>\n\u2014%<\/td>\n0.4%<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Repayments and Sales<\/td>\n$45,827<\/td>\n$222,242<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Originations, Net of Repayments and Sales<\/td>\n$120,494<\/td>\n$(106,966)<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n
For additional disclosure see \u201cPrimary Origination Strategies\u201d at the end of this release.<\/p>\n

\n ARTIFICIAL INTELLIGENCE AND AUTOMATION INITIATIVES<\/strong>\n <\/p>\n

Prospect, together with affiliates, and including portfolio company executives and external advisors, has a broad and deep cross-functional team that includes software and information technology engineers, portfolio company operations professionals, and other individuals focused on bringing best practice artificial intelligence (\u201cAI\u201d) and automation initiatives to both Prospect\u2019s operations and that of its portfolio companies, especially those companies where Prospect holds not just senior secured debt but also equity, whereby Prospect can capture economic upside from profit enhancements (including both revenue increase projects as well as cost efficiency projects) in such businesses. Examples of portfolio company use cases include:<\/p>\n