Prospect Capital Corp (LTS:0R25)

Q3 2026 Prospect Capital Corp Earnings Call Transcript

May 8, 2026 / 01:00 PM GMT

Release Date Price: $2.47 (-9.84%)

Transcript 8-K10-Q

Key Points

Positve

Prospect Capital Corp (PSEC) reported a net investment income of $78 million for the March quarter.
The company announced monthly common shareholder distributions of $0.035 per share for May through August.
PSEC has successfully rotated its asset focus towards first lien senior secured middle-market loans, increasing its first lien mix by 790 basis points to 72% since June 2024.
The company has exited subordinated structured notes, reducing their mix by 837 basis points to near zero since June 2024.
PSEC's middle market lending strategy now represents 85% of its investments at cost, an increase of 875 basis points from June 2024.

Negative

The net debt to total assets ratio stands at 27%, which may indicate a significant level of leverage.
PSEC's non-accruals as a percentage of total assets are at 0.7%, which could be a concern for asset quality.
The company experienced net repayments of $107 million, which might suggest challenges in maintaining investment levels.
Payment in-kind interest income was reduced by 41% from the prior 12-month period, indicating a decrease in this income stream.
The weighted average cost of unsecured debt financing is 4.71%, which could impact profitability if interest rates rise.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

PSEC.OQ - Prospect Capital Corp
Q3 2026 Prospect Capital Corp Earnings Call
May 08, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to the Prospect Capital third quarter 2026 earnings release and conference call all participants will be in listen-only mode should you need assistance please signal a conference specialist by pressing the star key followed by zero after today's presentation there will be an opportunity to ask questions to ask a question you may press star then one on a touch tone phone to withdraw your question please press star then two please note this event is being recorded.

I would now like to turn the conference over to John Berry, Chairman and CEO. Please go ahead, sir.

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Unidentified_2 [2]
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