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PSEC

Prospect Capital Corporation

PSEC

Prospect Capital Corporation • NASDAQ
$2.64 ▲ 0.76% (+0.02)
Market Cap $1.24 B
52w High $4.78
52w Low $2.52
Dividend Yield 0.54%
P/E -2.97
Volume 922.43K
Outstanding Shares 470.91M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q1-2026 $121.481M ▲ $13.962M ▼ $77.981M ▲ 64.192% ▼ $0 ▲ $77.981M ▲
Q4-2025 $-149.627M ▼ $15.999M ▲ $-195.93M ▼ 130.946% ▼ $-0.5 ▼ $-195.93M ▼
Q3-2025 $-93.118M ▼ $15.431M ▲ $-139.916M ▼ 150.257% ▲ $-0.39 ▼ $-139.916M ▼
Q2-2025 $48.032M ▲ $14.89M ▼ $-66K ▲ -0.137% ▼ $-0.071 ▲ $-66K ▲
Q1-2025 $-82.115M $16.668M $-134.012M 163.2% $-0.38 $-134.012M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q1-2026 $86.541M ▲ $6.642B ▼ $2.013B ▼ $4.629B ▲
Q4-2025 $46.506M ▼ $6.805B ▼ $3.816B ▲ $2.989B ▼
Q3-2025 $52.198M ▼ $6.996B ▼ $3.751B ▼ $3.245B ▼
Q2-2025 $58.252M ▲ $7.235B ▼ $3.795B ▼ $3.44B ▼
Q1-2025 $54.286M $7.593B $4.082B $3.511B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q1-2026 $77.981M ▲ $103.786M ▲ $175.206M ▲ $-243.239M ▼ $35.753M ▲ $103.786M ▲
Q4-2025 $-195.93M ▼ $14.05M ▼ $-21.682M ▼ $3.922M ▲ $-3.71M ▲ $14.05M ▼
Q3-2025 $-139.916M ▼ $46.796M ▲ $31.778M ▼ $-83.836M ▲ $-5.262M ▼ $46.796M ▲
Q2-2025 $-66K ▲ $-1.082M ▼ $279.585M ▲ $-275.765M ▼ $2.738M ▲ $-1.082M ▼
Q1-2025 $-134.012M $119.156M $54.57M $-202.576M $-28.85M $119.156M

Five-Year Company Overview

Income Statement

Income Statement Prospect Capital’s income statement shows that results are quite volatile. After a stretch of profitable years, the most recent period flipped back into a noticeable loss, with both operating profit and net income turning negative. Earnings have swung between strong profits and meaningful losses over just a few years, which suggests that results are very sensitive to credit conditions, interest rates, and valuation marks on its investments. This pattern is typical for business development companies, but it does underline that reported earnings can move sharply from year to year rather than following a smooth upward path.

Balance Sheet

Balance Sheet The balance sheet looks relatively large and steady, with total assets gradually rising over time and shareholders’ equity building up. Debt has also increased over the years, so leverage is an important factor to watch, but it does not appear extreme for a lender-focused business. Cash on hand is quite small versus total assets, which is normal for a BDC that invests most of its capital into loans and structured products. Overall, the company appears to have a solid capital base, but its ability to absorb losses will depend on how well its loan book performs through the credit cycle.

Cash Flow

Cash Flow Cash flow has been lumpy, but the recent trend is more reassuring than the earnings line alone would suggest. Operating cash flow swung from weak and negative a couple of years ago to clearly positive in the most recent periods. Because the business is not capital‑intensive, free cash flow largely mirrors operating cash flow, which has improved. This tells a story where accounting earnings may look worse than the underlying cash generation at times, likely due to non‑cash valuation changes in the portfolio. Still, the variability in cash flow highlights that this is not a smooth, utility‑like stream of cash; it depends heavily on deal activity, repayments, and credit performance.

Competitive Edge

Competitive Edge Prospect Capital’s edge is built more on scale, relationships, and structure than on technology. It is one of the older and larger business development companies, with a long history in the middle‑market lending space. That size allows it to offer “one‑stop” financing packages and to participate in larger, more complex deals. The firm leans on a wide and deeply established origination network with private equity sponsors, intermediaries, and company managers, which helps keep a steady pipeline of opportunities. Its portfolio is broadly diversified across industries and instruments, with a tilt toward senior and secured loans that emphasize capital preservation. On the risk side, it operates in a crowded private credit market, faces competition from other BDCs and private funds, and remains highly exposed to credit cycles and interest‑rate moves, as reflected in its earnings volatility.

Innovation and R&D

Innovation and R&D Innovation at Prospect Capital is primarily financial and structural rather than technological. The firm’s heritage includes pioneering various investment vehicles and creating what it calls a multi‑line business development company, able to address different layers of the capital structure. It has capabilities in structured credit and collateralized loan obligations that not all BDCs share. However, there is little evidence of heavy investment in proprietary data platforms, advanced analytics, or automation compared with some newer credit managers. The company’s “R&D” is effectively its ongoing refinement of deal structures, portfolio mix, and origination strategies. This approach can work well in a relationship‑driven market, but it may leave some room for more tech‑enabled competitors to differentiate over time if they can underwrite and monitor risk more efficiently.

Summary

Overall, Prospect Capital is a mature middle‑market lender with meaningful scale, a long operating history, and a broad, diversified portfolio. Its recent cash flow performance has improved, but the income statement shows that profits can swing sharply with the credit environment and valuation changes, including a recent shift back into losses. The balance sheet appears solidly capitalized, though leverage and low cash levels are important to monitor for a lending‑focused business. Competitively, the company leans on long‑standing relationships, one‑stop financing capabilities, and structured credit expertise rather than technology. Future outcomes will likely hinge on credit quality, interest‑rate trends, and management’s ability to keep rotating the portfolio toward more senior, secured exposures while navigating a competitive and cyclical private credit market.

NEWS

November 6, 2025 · 4:14 PM UTC

Prospect Capital Announces Financial Results for September 2025

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September 19, 2025 · 12:01 PM UTC

Town & Country Living Launches Eponymous Collection of Fully Coordinated Home Furnishings

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September 12, 2025 · 7:00 AM UTC

Priority Income Fund Announces 22.0% Annualized Total Cash Distribution Rate (on Net Asset Value) with “Bonus” and “Base” Common Shareholder Distributions for September 2025 through November 2025

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