Prospect Capital ( (PSEC) ) has released its Q1 earnings. Here is a breakdown of the information Prospect Capital presented to its investors.
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Prospect Capital Corporation is a business development company that primarily focuses on lending to and investing in middle-market privately-held companies, aiming to generate both current income and long-term capital appreciation.
In its latest earnings report for the fiscal quarter ending September 30, 2025, Prospect Capital announced a net investment income of $79.35 million, consistent with the previous quarter but down from $89.88 million in the same period last year. The company also reported a net income applicable to common shareholders of $48.09 million, a significant improvement from the losses reported in the previous quarters.
Key financial metrics revealed a slight decline in net asset value per common share to $6.45 from $6.56 in the previous quarter, reflecting ongoing challenges in the investment landscape. Prospect Capital continues to focus on its core business strategy, emphasizing first lien senior secured middle market loans and reducing exposure to second lien loans and subordinated structured notes. The company has also been active in real estate investments, exiting three properties for $59 million in net proceeds.
Looking ahead, Prospect Capital remains committed to optimizing its business by enhancing portfolio company performance and utilizing its cost-efficient revolving floating rate credit facility. The management’s strategic focus on first lien senior secured loans and selective equity-linked investments is expected to drive future growth and stability.