Prospect Capital Reports Quarterly Results and Declares Distributions

An update from Prospect Capital ( (PSEC) ) is now available.

On May 7, 2026, Prospect Capital Corporation reported results for the quarter ended March 31, 2026, posting net investment income of $78.5 million, or $0.16 per common share, and net income of $26.4 million, or $0.05 per share. Net asset value to common shareholders slipped to $2.95 billion, or $6.05 per share, from $6.21 in December 2025 and $7.25 a year earlier, while balance sheet cash and undrawn credit lines rose to $1.75 billion and leverage metrics improved modestly.

On the same date, the firm declared monthly cash distributions to common shareholders of $0.035 per share for each of May through August 2026, extending a payout that will bring cumulative common distributions since inception to about $22.07 per share, or $4.8 billion in total. Prospect also announced monthly and quarterly dividends across multiple preferred stock series with stated annual rates between 5.35% and 7.50%, reinforcing a steady income profile for both common and preferred investors and highlighting the company’s capacity to sustain shareholder returns despite pressure on net asset value.

The most recent analyst rating on (PSEC) stock is a Sell with a $2.50 price target. To see the full list of analyst forecasts on Prospect Capital stock, see the PSEC Stock Forecast page.

Spark’s Take on PSEC Stock

According to Spark, TipRanks’ AI Analyst, PSEC is a Neutral.

The score is held back primarily by unstable earnings and a sharp TTM revenue contraction, despite better recent cash generation and a generally moderate-leverage balance sheet. Technicals are also weak with price trading below key moving averages. Offsetting factors include a very high dividend yield and a generally constructive earnings-call outlook focused on de-risking, liquidity strength, and maintaining distributions.

To see Spark’s full report on PSEC stock, click here.

More about Prospect Capital

Prospect Capital Corporation is a New York-based business development company focused on middle-market lending, including its core target of companies with less than $50 million in EBITDA. Since its July 2004 IPO through March 31, 2026, the firm has invested over $22 billion in more than 450 deals, generating exited gross IRRs of about 12% overall and up to 16.9% in its core middle-market strategy, with low realized loss rates and strong interest coverage metrics across its loan book.

In its primary middle-market lending business, Prospect has deployed $17.3 billion across 362 investments, with $19.1 billion in proceeds and $5.2 billion still outstanding as of March 31, 2026. The company emphasizes unsecured and non-recourse funding, maintains net-of-cash debt at roughly 27% of total assets, and reports that its portfolio companies’ EBITDA-to-interest coverage stands above 200%, underscoring a conservative leverage profile and resilient credit performance.

Average Trading Volume: 4,651,963

Technical Sentiment Signal: Sell

See more insights into PSEC stock on TipRanks’ Stock Analysis page.