Prospect Capital Corporation (Nasdaq: PSEC) Q4 2025 Earnings Call | 08/27/2025

7 months ago

22:06

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Earnings Calls

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Prospect Capital Corporation reported solid Q4 and fiscal year-end 2025 results, with net investment income (NII) of $79 million, or $0.17 per common share. The company’s net asset value (NAV) remained strong at $3 billion, or $6.56 per share. The net debt to total assets ratio stood at 30.4%, with unsecured debt and preferred stock comprising 77.1% of total liabilities. Prospect announced monthly common shareholder distributions of $0.045 per share for September and October 2025. The company's strategic focus on first lien senior secured middle market loans continued to progress, with an increase in first lien mix by 642 basis points to 70.5% year-over-year. The second lien exposure was reduced, while subordinated structured notes were nearly exited. Prospect originated $167 million in new investments this quarter, mainly to middle market companies with EBITDA under $50 million, and experienced $445 million in repayments and exits, emphasizing capital preservation. Portfolio diversification remains strong, with 85% of investments in senior secured debt and a $378 million unrealized gain in real estate assets. The company maintains a solid liquidity position with $1.3 billion in combined cash and credit facilities and holds a well-laddered debt profile extending through 2052 at a weighted average unsecured debt cost of 4.52%. Prospect highlighted disciplined portfolio management, risk mitigation, and ongoing capital allocation to maximize shareholder value. About Inside Ticker: Inside Ticker provides timely financial news and detailed earnings call summaries for investors and professionals. Visit www.insideticker.com. #ProspectCapital #PSEC #Q42025 #Earnings #FinancialResults #NetInvestmentIncome #MiddleMarketLoans #FirstLien #DebtPortfolio #NAV #Liquidity #CapitalAllocation #RealEstate #CreditRisk #InvestorRelations #EarningsCall #StockMarket #InsideTicker #InvestmentManagement #FinancialPerformance #DividendDistributions #DebtMaturity

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