Prospect Capital Announces Financial Results for June 2025
NEW YORK, Aug. 26, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) ("Prospect", "our", or "we") today announced financial results for our fiscal quarter and fiscal year ended June 30, 2025.
FINANCIAL RESULTS
All amounts in $000's exceptper share amounts (on weighted averagebasis for period numbers)
Quarter Ended
Quarter Ended
Quarter Ended
June 30, 2025
March 31, 2025
June 30, 2024
Net Investment Income ("NII")
$79,043
$83,489
$102,922
NII per Common Share
$0.17
$0.19
$0.25
Interest as % of Total Investment Income
94.9%
93.3%
89.2%
Net Income (Loss) Applicable to Common Shareholders
$(226,369)
$(171,331)
$(9,050)
Net Income (Loss) per Common Share
$(0.50)
$(0.39)
$(0.02)
Distributions to Common Shareholders
$61,181
$59,966
$75,640
Distributions per Common Share
$0.135
$0.135
$0.18
Cumulative Paid and Declared Distributions to Common Shareholders(1)
$4,569,727
$4,527,079
$4,325,055
Cumulative Paid and Declared Distributions per Common Share(1)
$21.66
$21.57
$21.12
Total Assets
$6,804,938
$6,996,312
$7,857,092
Total Liabilities
$2,186,266
$2,118,522
$2,559,171
Preferred Stock
$1,629,900
$1,632,426
$1,586,188
Net Asset Value ("NAV") to Common Shareholders
$2,988,772
$3,245,364
$3,711,733
NAV per Common Share
$6.56
$7.25
$8.74
Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments
$1,315,967
$1,716,035
$1,357,577
Net of Cash Debt to Total Assets
30.4%
28.7%
30.5%
Net of Cash Debt to Equity Ratio(2)
44.4%
40.8%
44.7%
Net of Cash Asset Coverage of Debt Ratio(2)
325%
345%
323%
Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity
77.1%
87.5%
80.3%
Unsecured and Non-Recourse Debt as % of Total Debt
100.0%
100.0%
100.0%
(1)
Declared dividends are through the October 2025 distribution. August through October 2025 distributions are estimated based on shares outstanding as of 8/25/2025.
(2)
Including our preferred stock as equity.
CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION
Prospect is declaring distributions to common shareholders as follows:
Monthly Cash Common Shareholder Distribution
Record Date
Payment Date
Amount ($ per share)
September 2025
9/26/2025
10/22/2025
$0.0450
October 2025
10/29/2025
11/18/2025
$0.0450
Prospect expects to declare November 2025, December 2025, and January 2026 distributions to common shareholders in November 2025.
Taking into account past distributions and our current share count for declared distributions, since inception through our October 2025 declared distribution, Prospect will have distributed $21.66 per share to original common shareholders, aggregating approximately $4.6 billion in cumulative distributions to all common shareholders.
Since Prospect's initial public offering in July 2004 through June 30, 2025, Prospect has invested over $22 billion across over 450 investments, exiting over 350 of these investments.
Since Prospect's initial public offering in July 2004 through June 30, 2025, Prospect's exited investments resulted in an investment level realized gross internal rate of return ("IRR") of approximately 12% (based on total capital invested of approximately $12.6 billion and total proceeds from such exited investments of approximately $16.0 billion).
Drivers focused on optimizing our business include:
(1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans (with our first lien mix increasing 642 basis points to 70.5% (based on cost) from the prior year), including with selected equity linked investments, focusing on new investments in companies with less than $50 million of EBITDA, including companies with smaller funded private equity sponsors, independent sponsors, and no third party financial sponsors;
(2) reduction in our second lien senior secured middle market loans (with our second lien mix decreasing 202 basis points to 14.4% (based on cost) from the prior year and with two additional second lien loans having repaid since June, 30, 2025);
(3) exiting from our subordinated structured notes portfolio (with our subordinated structured notes mix decreasing 781 basis points to 0.6% (based on cost) from the prior year);
(4) prudent exits of equity linked assets (including real estate properties (with six properties sold in the last six quarters) and corporate investments (such as the sale of significant assets within Echelon Transportation, LLC in July 2025, with other potential exits targeted));
(5) enhancement of portfolio company operating performance; and
(6) greater utilization of our cost efficient revolving floating rate credit facility (which significantly matches with our majority floating rate assets).
In our middle market lending strategy, which represented 85% of our investments at cost as of June 30, 2025, we continued our focus on first lien senior secured loans during the quarter, with such investments totaling $166.7 million of our $270.9 million of originations during the quarter. Investments during the quarter included a new investment in Verify Diagnostics LLC (a provider of advanced molecular diagnostic testing), a new investment in QC Holdings, Inc. (a provider of consumer credit), and other follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.
We have substantially completed the exit of our subordinated structured notes portfolio as of June 30, 2025, with such portfolio representing 0.6% of our investment portfolio at cost, representing a reduction of 781 basis points from 8.4% as of June 30, 2024.
In our real estate property portfolio at National Property REIT Corp. ("NPRC"), which represented 14% of our investments at cost as of June 30, 2025, and which is focused on developed and occupied cash flow multifamily investments, since the inception of this strategy in 2012 and through June 30, 2025, we have exited 52 property investments that have earned an unlevered investment-level gross cash IRR of 24.0% and cash on cash multiple of 2.4 times. The remaining real estate property portfolio included 58 properties and paid us an income yield of 4.5% for the quarter ended June 30, 2025, thereby providing opportunities to exit certain such investments and recycle into more first lien senior secured loans with selected equity linked investments. Our aggregate investment in NPRC included a $378 million unrealized gain as of June 30, 2025.
Our senior management team and employees own 28.5% of all common shares outstanding (an increase of 214 basis points since June 30, 2024) or approximately $0.9 billion of our common equity as measured at NAV.
PORTFOLIO UPDATE AND INVESTMENT ACTIVITY
All amounts in $000's exceptper unit amounts
As of
As of
As of
June 30, 2025
March 31, 2025
June 30, 2024
Total Investments(1)
$6,693,501
$6,955,011
$7,447,174
Total Investments(2)
$6,673,516
$6,901,364
$7,718,243
Number of Portfolio Companies
97
114
117
Number of Industries
33
33
35
First Lien Debt
70.5%
67.7%
64.1%
Second Lien Debt
14.4%
13.6%
16.4%
Total Senior and Secured Debt
84.9%
81.3%
80.5%
Subordinated Structured Notes
0.6%
5.9%
8.4%
Unsecured Debt
0.1%
0.1%
0.1%
Equity Investments
14.4%
12.7%
11.0%
Total Investments(1)
100.0%
100.0%
100.0%
First Lien Debt
66.9%
65.5%
60.3%
Second Lien Debt
11.5%
10.5%
13.6%
Total Senior and Secured Debt
78.4%
76.0%
73.9%
Subordinated Structured Notes
0.5%
4.2%
6.9%
Unsecured Debt
0.1%
0.1%
0.1%
Equity Investments
21.0%
19.7%
19.1%
Total Investments(2)
100.0%
100.0%
100.0%
Annualized Current Yield, All Investments
9.6%
9.2%
9.8%
Annualized Current Yield, Performing Interest Bearing Investments
12.2%
11.5%
12.1%
Non-Accrual Loans as % of Total Assets(1)
4.0%
4.7%
2.7%
Non-Accrual Loans as % of Total Assets(2)
0.3%
0.6%
