<span item_type="fundamental" item_id="ef4eda5b40a1329b37050e5fde99c753" counter_id="ST/US/PSEC" env="prod"></span><span item_type="announcement" item_id="645851031104585729" env="prod"></span><p>Revenue: As of FY2026 Q3, the actual value is USD 150.07 M, missing the estimate of USD 163.23 M.</p><p>EPS: As of FY2026 Q3, the actual value is USD 0.05, missing the estimate of USD 0.11.</p><p>EBIT: As of FY2026 Q3, the actual value is USD 109.99 M.</p><p></p><h3>Financial Results</h3><h4>Net Investment Income (NII)</h4><ul><li>For the quarter ended March 31, 2026, Net Investment Income (NII) was $78,457 thousand, compared to $90,888 thousand for the quarter ended December 31, 2025, and $83,489 thousand for the quarter ended March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Net Income (Loss) Applicable to Common Shareholders</h4><ul><li>Net Income (Loss) Applicable to Common Shareholders was $26,408 thousand for the quarter ended March 31, 2026, - $6,576 thousand for the quarter ended December 31, 2025, and - $171,331 thousand for the quarter ended March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Distributions to Common Shareholders</h4><ul><li>Distributions to Common Shareholders totaled $65,421 thousand for the quarter ended March 31, 2026, $63,894 thousand for the quarter ended December 31, 2025, and $59,966 thousand for the quarter ended March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Total Assets</h4><ul><li>Total Assets were $6,383,972 thousand as of March 31, 2026, $6,534,578 thousand as of December 31, 2025, and $6,996,312 thousand as of March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Total Liabilities</h4><ul><li>Total Liabilities were $1,816,573 thousand as of March 31, 2026, $1,952,326 thousand as of December 31, 2025, and $2,118,522 thousand as of March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Net Asset Value (NAV) to Common Shareholders</h4><ul><li>Net Asset Value (NAV) to Common Shareholders was $2,953,627 thousand as of March 31, 2026, $2,958,755 thousand as of December 31, 2025, and $3,245,364 thousand as of March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h3>Operational Metrics</h3><h4>Interest as % of Total Investment Income</h4><ul><li>Interest represented 93.4% of Total Investment Income for the quarter ended March 31, 2026, 84.7% for the quarter ended December 31, 2025, and 93.3% for the quarter ended March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments</h4><ul><li>Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments amounted to $1,752,375 thousand as of March 31, 2026, $1,647,216 thousand as of December 31, 2025, and $1,716,035 thousand as of March 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Debt Ratios</h4><ul><li>The Net of Cash Debt to Total Assets ratio was 27.0% in March 2026, 28.2% in December 2025, and 28.7% in March 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>The Net of Cash Debt to Total Equity Ratio was 37.6% in March 2026, 39.9% in December 2025, and 40.8% in March 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Coverage Ratios</h4><ul><li>The Net of Cash Asset Coverage of Debt Ratio was 366% in March 2026, 350% in December 2025, and 345% in March 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>Interest Coverage was 356% in March 2026, 426% in December 2025, and 343% in March 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h3>Unique Metrics</h3><h4>Investment Portfolio Composition (at cost, as of March 31, 2026)</h4><ul><li>The portfolio consisted of 72.0% First Lien Debt, 12.4% Second Lien Debt, and 15.5% Equity Investments, totaling 84.4% in Senior and Secured Debt <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Investment Originations</h4><ul><li>Total Originations were $115,276 thousand for the quarter ended March 31, 2026, compared to $80,434 thousand for the quarter ended December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>Middle-Market Originations comprised 94.2% of total originations in March 2026, down from 100.0% in December 2025, while Real Estate Originations accounted for 5.4% of total originations in March 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>Originations, Net of Repayments and Sales, were - $106,966 thousand for the quarter ended March 31, 2026, versus $1,168 thousand for the quarter ended December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Middle-Market Lending Track Record (Overall, Exited Since Inception as of March 31, 2026)</h4><ul><li>Prospect Capital Corporation has exited 292 investments with a total capital invested of $11.4 billion, generating total proceeds of $14.7 billion <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>The Exited Gross IRR is 14.4%, and the Annualized Net Realized Loss Rate is 0.2% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>The Middle Market Lending Portfolio Cash Interest Coverage stands at 205% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h4>Real Estate Property Portfolio (National Property REIT Corp. - NPRC)</h4><ul><li>Real estate investments represented 14.3% of investments at cost as of March 31, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>For 57 exited properties since 2012 inception, the Unlevered Investment-Level Gross Cash IRR was 24% with a Cash on Cash Multiple of 2.4 times <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>For 5 exited properties in the current fiscal year, the Unlevered Investment-Level Gross Cash IRR was 18% with a Cash on Cash Multiple of 2.3 times <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li><li>As of March 31, 2026, 53 real estate properties remain, and the Income Yield for the quarter ended March 31, 2026, was 5.2% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>. The Unrealized Gain in NPRC was $229 million as of March 31, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul><h3>Outlook / Guidance</h3><ul><li>Prospect Capital Corporation has declared monthly cash common shareholder distributions of $0.0350 per share for May, June, July, and August 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>. The company is focusing on optimizing its business by increasing first-lien senior secured middle market loans, reducing second-lien loans and structured notes, and exiting targeted equity-linked assets <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>. Additionally, Prospect Capital Corporation is implementing AI and automation to enhance revenues and achieve cost efficiencies within its investment processes and portfolio companies <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1287032/000128703226000165/a2026-3x31xpsecearningsrel.htm"></span>.</li></ul>

Prospect Capital | 8-K: FY2026 Q3 Revenue Misses Estimate at USD 150.07 M