Prospect Capital Corporation

Prospect Capital Corporation reported a fiscal fourth-quarter net loss applicable to common shareholders of $38.1 million, or $0.08 per share, a swing from the $26.4 million profit in the prior quarter, while cutting its monthly distribution to $0.035 per share for September and October from the $0.045 monthly rate implied by the $0.135 quarterly total paid a year ago. Net investment income per share slipped to $0.15 from $0.16 the prior quarter and $0.17 a year earlier, and net asset value per common share fell to $5.71 as of June 30 from $6.05 three months earlier and $6.56 a year before. The results contrasted with the firm's exit record: on July 1 it closed the sale of portfolio company Valley Electric Company for roughly $328 million, producing a 20.5% realized gross annualized internal rate of return and a 4.8x multiple of invested capital since 2012, while its real estate arm has exited 58 property investments since 2012 at a 24% unlevered gross cash internal rate of return and a 2.4x cash-on-cash multiple. Across the middle-market lending book since 2004, exited investments carry a 14.4% gross IRR against an annualized realized loss rate of just 0.2%, and first lien senior secured loans rose to 72.5% of investments at cost, up 840 basis points from June 2024. Unrealized losses on control investments ran $91.8 million for the quarter, net of cash debt to total equity rose to 40.7% from 37.6%, and non-accrual loans reached 0.7% of total assets as of June 30, more than double the 0.3% level of June 30, 2025.