Prospect Capital Corporation Q4 2026 Earnings Recap

Prospect Capital’s shares edged up modestly by 2.2% following Q4 earnings, reflecting a largely in-line quarter with no major surprises in income, portfolio composition, or credit metrics.

Key Takeaways

• Net investment income (NII) was stable at $78 million, or $0.15 per common share, unchanged from the prior quarter.
• NAV stood at $2.9 billion, or $5.71 per share, with net debt to total assets at 28.6%, indicating steady leverage.
• Successfully closed the $328 million sale of Valley Electric, delivering a 20.5% realized gross IRR and 4.8x multiple of invested capital on the investment.
• Middle market lending remained the core focus, comprising 85% of investments at cost, with 91% of originations in the quarter as first lien senior secured loans.
• Credit quality was stable: nonaccruals at 0.7% of assets and lower net leverage and higher coverage ratios than peers, supporting portfolio resilience.