Saratoga Investment Corp. Reports Strong Annual NAV Growth

Saratoga Investment ( (SAR) ) has released its Q4 earnings. Here is a breakdown of the information Saratoga Investment presented to its investors.

Saratoga Investment Corp. is a business development company that provides financing solutions to U.S. middle-market businesses, primarily through senior and unitranche leveraged loans and mezzanine debt, with a focus on generating current income and long-term capital appreciation.

In its latest earnings report, Saratoga Investment Corp. announced a 6.1% annual increase in Net Asset Value (NAV) and a 4.7% sequential quarter increase, alongside a reduction in non-accruals to 0.3% of fair value. The company also highlighted net deployments of $25.9 million for the fiscal fourth quarter of 2025, supporting one new platform and six follow-ons, with two additional new portfolio companies since year-end.

Key financial metrics for the fiscal year 2025 included a total investment income of $148.9 million, up 3.6% from the previous year, and a net investment income per share of $3.81. The company declared dividends of $3.31 per share, including a special dividend, reflecting a 15.7% increase from the previous year. The portfolio’s fair value was reported at $978.1 million, with a weighted average current yield of 10.8%.

Saratoga Investment Corp. has transitioned to a monthly dividend structure, with an annualized first-quarter dividend yield of 12.1%. The company remains focused on maintaining a strong cash position, with $204.7 million available for new investments or debt repayment, and continues to see opportunities in the lower middle market despite a volatile macro environment.

Looking ahead, Saratoga Investment Corp. is confident in its experienced management team and robust pipeline to steadily increase portfolio size and quality, aiming to deliver exceptional risk-adjusted returns to shareholders amidst ongoing economic uncertainties.