Saratoga Investment Corp.

Saratoga Investment Corp. Earnings Recaps

SAR Financials 2 recaps
Q4 2026 May 8, 2026

Saratoga Investment Corp. shares fell 3.8% following the quarter as margin compression and a cautious outlook amid declining short-term rates and tightening spreads disappointed investors. Despite solid origination activity, lower net interest margin and portfolio markdowns weighed on sentiment.

Key takeaways
  • Adjusted net investment income (NII) was $0.53 per share, or $0.61 excluding a $1.7 million excise tax, consistent with the prior quarter but pressured by declining short-term interest rates.
  • Core BDC net interest margin declined 4%, driven by a 12 basis point drop in average SOFR and lower yields on new asset repayments.
  • Total portfolio marked down 1% ($9.6 million), with the overall portfolio valuation 2.4% below cost despite some unrealized appreciation in select investments.
  • Net originations totaled $101.1 million during the quarter, including five new investments and 15 follow-ons, offsetting multiple debt repayments.
  • Credit quality remained stable with only 0.2% of fair value on nonaccruals, below industry averages, and 82.1% of investments in first lien debt.
Full recap
Q3 2026 Jan 9, 2026

Saratoga Investment Corp delivered strong fiscal Q3 2026 results with a stable NAV per share, a notable increase in net interest income, and solid portfolio performance amid ongoing market volatility.

Key takeaways
  • NAV per share maintained at $25.59, reflecting a 10.2% increase year-over-year and a slight rise from the previous quarter.
  • Net Interest Income rose by $0.03 per share to $0.61, despite challenging market conditions impacting short-term interest rates.
  • Net originations totaled $17.2 million, with strong new investments and repayments, highlighting robust portfolio management.
  • Fourth quarter dividend announced at $0.75 per share, showcasing a 12.9% annualized yield based on current stock price.
  • Credit quality improved with 99.8% of assets rated in the highest category and a well-structured portfolio positioned for future economic uncertainties.
Full recap