Prospect Capital Corporation Q2 2026 Earnings Recap

Prospect Capital reported strong performance in Q2 FY2026, delivering a net investment income of $91 million and focusing on asset rotation toward first lien senior secured loans, which now comprise 71.4% of the portfolio.

Key Takeaways

• Net investment income of $91 million equates to $0.19 per common share with NAV at approximately $3 billion.
• Increased first lien senior secured loans by 728 basis points since June 2024, now making up 71.4% of investments.
• Successfully reduced exposure to second lien loans and subordinated structured notes, with the latter near zero, enhancing portfolio quality.
• Monthly common shareholder distributions maintained at $0.045 per share for February through April.
• Interest income constituted 92% of total investment income, showcasing strong recurring revenue.