Prospect Capital Q4 earnings fall less than expected as originations climb

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Prospect Capital's (NASDAQ:PSEC [https://seekingalpha.com/symbol/PSEC]) fiscal Q4 net investment income per share, released on Tuesday, slid less than expected from both the prior three-month period and a year earlier. Shares gained 2.1% in after-hours trading.

The business development company's fiscal Q4 net investment income per share [https://seekingalpha.com/pr/20212426-prospect-capital-announces-financial-results-for-june-2025] fell to $0.17, vs. the average analyst estimate of $0.13, from $0.19 in Q3 and $0.25 in last year's Q4.

Total interest income of $158.4M for the quarter ended June 30, 2025, slipped from $159.3M in the prior quarter and $189.3M a year ago. The current quarter's interest income beat the Visible Alpha consensus of $152.9M.

Prospect's (NASDAQ:PSEC [https://seekingalpha.com/symbol/PSEC]) total investment income of $167.0M, slightly lagging the $167.1M consensus, dropped from $170.7M in Q3 and $212.3M in last Q4 2024.

Total originations of $270.9M vs. $196.1M in the previous quarter. Total repayments and sales of $445.3M vs. $191.7M in Q3. That puts originations, net of repayments and sales, at -$174.5M vs. $4.4M in the previous quarter.

Annualized current yield, performing interest-bearing investments, was 12.2% vs. 11.5% in Q3 and 12.1% in Q4 2024. Annualized current yield for all investments increased to 9.6% from 9.2% in the previous quarter and dipped from 9.8% in the year-ago quarter.

Total investments at fair value were $6.67B at June 30, 2025, vs. $6.90B at March 31 and $7.72B at June 30, 2024.

Non-accrual loans, as a percentage of total assets, shrank to 0.3% from 0.6% in Q3 and held steady from Q4 2024.

Net asset value per common share of $6.56 at June 30, 2025, compared with $7.25 at March 31, and $8.74 at June 30, 2024.

Conference call [https://www.prospectstreet.com/investors/default.aspx]on Aug. 27 at 9:00 AM ET.

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