Saratoga Investment ( (SAR) ) has released its Q2 earnings. Here is a breakdown of the information Saratoga Investment presented to its investors.
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Saratoga Investment Corp. is a business development company that provides financing solutions to U.S. middle-market businesses, focusing on senior and unitranche leveraged loans, mezzanine debt, and equity investments. The company recently reported its fiscal second quarter 2026 financial results, highlighting a 3.6% increase in net asset value (NAV) and a 0.4% increase in NAV per share from the previous quarter. Notably, the company achieved a quarterly return on equity (ROE) of 13.8%, surpassing the BDC industry average of 7.3%.
Key financial metrics from the report include a total investment income of $30.6 million, a decrease from the previous quarter, and a net investment income (NII) per share of $0.58. The company declared a base dividend of $0.75 per share for the third quarter of fiscal 2026, representing a 12.3% yield based on the stock price as of October 6, 2025. Additionally, Saratoga Investment reported net originations of $22.4 million and highlighted the return of its Zollege investment to accrual status, reducing non-accrual investments to just one.
Saratoga Investment’s portfolio saw an increase in fair value by $3.8 million during the quarter, with a total portfolio fair value of $995.3 million. The company also maintained a strong cash position of $200.8 million, which it plans to deploy in new investments or debt repayment. Despite a decrease in net interest margin, the company remains optimistic about its investment opportunities, supported by its strong reputation and market positioning.
Looking ahead, Saratoga Investment’s management remains confident in the resilience of its portfolio and its ability to deliver attractive risk-adjusted returns. The company plans to continue expanding its portfolio size and quality, leveraging its experienced management team and disciplined underwriting approach to navigate ongoing geopolitical and macroeconomic uncertainties.