Education
About Us
Working with TipRanks
Follow Us
Prospect Capital (PSEC)
NASDAQ:PSEC
Earnings Data
Report Date
May 13, 2026TBA (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.1Last Year’s EPS
0.19Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a broadly positive tone: management highlighted meaningful portfolio improvement and de-risking (large increase in first-lien exposure, sharp reductions in second-lien and subordinated structured notes), strong liquidity and funding diversity, disciplined origination focused on middle market lending, low nonaccruals and strong historical IRRs. The primary negatives are modest originations in the quarter (net repayments of $1M), remaining PIK exposure (albeit substantially reduced), reliance on unsecured funding instruments (though diversified), and the operational/timing aspects of rotating real estate exits. Overall, the positives around credit quality, liquidity and strategic rotation materially outweigh the limited near-term headwinds.Company Guidance
Net Investment Income and NAV
Net investment income for the December quarter was $91 million, or $0.19 per common share. Net asset value (NAV) was approximately $3.0 billion, or $6.21 per common share as of December 31, 2025.
Shareholder Distributions Maintained
Announced monthly common shareholder distributions of $0.045 per share for February, March and April; preferred shareholder cash distributions continue at contract rates. Cumulative distributions since IPO through April 2026 total $4.7 billion, or $21.93 per share.
Shift into Higher-Quality First-Lien Loans
First-lien senior secured middle market loan mix increased 728 basis points to 71.4% since June 2024, reflecting deliberate rotation into higher priority secured assets.
Reduction of Lower-Priority and Equity-Linked Exposures
Second-lien mix decreased 371 basis points to 12.7% since June 2024; subordinated structured notes mix reduced by 818 basis points to near 0 (0.2% at cost) since June 2024; targeted exits of equity-linked assets and sale of 5 additional real estate properties in the fiscal year.
Middle Market Lending Concentration and Performance
Middle market lending represented 85% of investments at cost (an increase of 878 basis points from June 2024) and comprised 100% of originations in the December quarter. Historical exited investment-level gross IRR in middle market lending ~14.5% overall and ~17.2% for core targets (<$50M EBITDA).
Strong Historical Performance and Low Realized Losses
Long-term track record: ~22 years with exited investments earning a 12% unlevered gross cash IRR across ~450 investments; middle market lending exited investments annualized realized loss rate ~0.2% (0.1% in core targeted segment).
Portfolio Quality and Credit Metrics
Portfolio at cost consisted of 84% senior and secured debt; EBITDA-to-interest coverage around 210% overall and ~230% for core targeted middle market lending. Nonaccruals were low at approximately 0.7% of total assets (fair market value) as of December 31, 2025.
Reduced Payment-in-Kind (PIK) and Recurring Interest Income
Payment-in-kind interest income declined 46% versus prior 12 months and represented 8.6% of total investment income for the December quarter. Interest income comprised 92% of total investment income over the 12 months ending December 2025, emphasizing recurring cash yield.
Liquidity, Funding Diversity and Balance Sheet Strength
Combined balance sheet cash and undrawn revolver commitments of $1.6 billion; $4.2 billion of assets unencumbered (~64% of portfolio); $2.12 billion of commitments from 48 banks; revolver pricing at SOFR + 2.05% (drawn) and weighted average cost of unsecured debt 4.68% at Dec 31, 2025. Issued ~$168 million of senior unsecured 5.5% notes due 2030 and have laddered liabilities extending through 2052.
Real Estate Strategy Outcomes (NPRC)
NPRC real estate portfolio represented 14% of investments at cost; NPRC investments included a $270 million unrealized gain as of December 2025. Since inception, 56 property exits earned an unlevered gross cash IRR of 24% and cash-on-cash multiple of 2.4x; 4 property exits in the current fiscal year generated a 21% IRR and 2.4x multiple.
Conservative Sector Positioning (Low Software Exposure)
Software exposure at cost was 2.8% of the portfolio versus a reported ~22% average across BDCs with publicly traded unsecured bonds, highlighting limited exposure to a sector under current market scrutiny.
Modest Net Deployment in Quarter with Capital Preservation
Investment originations in the December quarter totaled $80 million (100% middle market, majority first-lien); repayments and exits were $79 million, resulting in net repayments of $1 million — signaling capital preservation and validation of realizations strategy.
PSEC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PSEC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 09, 2026 | $2.61 | $2.88 | +10.34% |
Nov 06, 2025 | $2.42 | $2.60 | +7.43% |
Aug 26, 2025 | $2.56 | $2.67 | +4.10% |
May 08, 2025 | $3.14 | $3.07 | -2.23% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Prospect Capital (PSEC) report earnings?
Prospect Capital (PSEC) is schdueled to report earning on May 13, 2026, TBA (Confirmed).
What is Prospect Capital (PSEC) earnings time?
Prospect Capital (PSEC) earnings time is at May 13, 2026, TBA (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PSEC EPS forecast?
PSEC EPS forecast for the fiscal quarter 2026 (Q3) is 0.1.