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PSEC-PA

Prospect Capital Corporation

PSEC-PA

Prospect Capital Corporation • NYSE
$16.87 ▼ -1.52% (-0.26)
Market Cap $7.62 B
52w High $20.24
52w Low $14.58
Dividend Yield 1.34%
P/E 8
Volume 12.45K
Outstanding Shares 74.26M

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 Earnings have been quite up‑and‑down over the past few years. The company moved from strong profitability earlier in the period, to a weaker patch, then back to profit, and most recently has slipped into a loss again. That tells you results are highly sensitive to credit conditions, valuations, and funding costs. Operating performance has swung from solidly positive to clearly negative, which suggests that fee income, interest spreads, and credit losses are all moving around a lot. This kind of volatility is not unusual for a business development company, but it does mean that any one year’s earnings should be viewed with caution rather than as a stable run‑rate.

Balance Sheet

Balance Sheet The balance sheet shows a large investment portfolio funded by a mix of equity and meaningful, but not excessive, debt. Over time, total assets and equity have generally trended upward, which points to gradual growth in the underlying investment book and retained value. Debt levels have also risen over the period, but equity has grown alongside, so leverage looks controlled rather than extreme. Cash on hand is relatively small compared with total assets, which is typical for this type of lender but leaves the company reliant on continued access to credit lines and capital markets for flexibility.

Cash Flow

Cash Flow Cash generation has been choppy but has improved recently. There were years where operating cash flow was negative, reflecting portfolio repositioning, credit stresses, or timing effects. More recently, cash from operations has turned clearly positive again, which is a constructive sign for the stability of distributions and interest payments. Because the business is not capital‑intensive in terms of physical assets, capital spending is essentially negligible. Free cash flow therefore closely follows operating cash flow, magnifying both the good years and the bad years. The key risk is that cash flows can reverse quickly if credit conditions worsen.

Competitive Edge

Competitive Edge Prospect Capital competes as a large, seasoned business development company focused on middle‑market lending. Its main advantages are scale, experience across cycles, and deep relationships with sponsors and borrowers, which help it source deals that may not be widely available. The “multi‑line” strategy—spanning senior loans, private equity, real estate, and structured credit—gives it flexibility to lean into different areas as conditions change. A strong tilt toward senior secured lending adds some protection in downturns compared with more junior lenders. The flip side is that the firm still faces intense competition from other BDCs, private credit funds, and banks, and it remains inherently exposed to credit cycles and borrower health.

Innovation and R&D

Innovation and R&D Innovation here is financial and structural rather than technological. Prospect has a long history of creating new types of investment vehicles and was early in building a diversified, multi‑line BDC model. That history suggests a willingness to adapt its product set and capital structure as markets evolve. Current “innovation” is focused on repositioning the portfolio toward more senior, first‑lien loans and selectively expanding into adjacent areas such as consumer credit. There is no heavy spending on traditional R&D, but there is ongoing evolution in how the firm structures deals, manages risk, and allocates across credit, equity, and real estate to balance income and downside protection.

Summary

Overall, Prospect Capital’s preferred security is tied to a lender with a sizable, diversified investment portfolio, meaningful but managed leverage, and a long operating history in middle‑market credit. The main positives are its scale, diversified multi‑line strategy, strong origination network, and a recent recovery in cash generation. The main concerns are the volatility of earnings, sensitivity to credit and interest‑rate cycles, relatively thin cash balances, and reliance on capital markets for ongoing funding. For any holder of the preferred, the key watchpoints are the stability of net investment income, credit performance in the loan and structured credit book, and management’s discipline in maintaining a conservative mix of senior secured assets versus riskier exposures.