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Sep 30, 2025
PennantPark Q4 2025 Earnings Report
PennantPark Investment Corporation announced financial results for the fourth quarter and fiscal year ended September 30, 2025.
Key Takeaways
PennantPark Investment Corporation reported a decrease in net investment income for the fourth quarter of 2025 compared to the prior year, primarily due to lower investment income partially offset by a decrease in expenses. The company's investment portfolio totaled $1,287.3 million, with a weighted average yield on debt investments of 11.0%.
Net investment income for the quarter was $9.8 million, a decrease from $14.4 million in the prior year.
The investment portfolio totaled $1,287.3 million, with a weighted average yield on debt investments of 11.0%.
The company reported a net realized loss on investments and debt of $(21.6) million for the quarter.
Net assets decreased by $(1.0) million for the quarter, resulting in a net asset value per share of $7.11.
Revenue by Segment
Forward Guidance
The company remains focused on maintaining the credit quality of its investment portfolio and utilizing spillover income to supplement dividend coverage. They anticipate continued resilience in the portfolio and will continue to create realizations of equity holdings.
Positive Outlook
- Continued focus on the core middle market for attractive credit spreads and enhanced lender protections.
- High focus on creating realizations of equity holdings to support Net Investment Income.
- Utilization of spillover income, estimated at 73 cents per share, to supplement dividend coverage.
- The company believes its liquidity and capital resources are sufficient to effectively operate its business.
- The partial refinancing of CLO VII is expected to reduce the weighted average cost of capital.
Challenges Ahead
- The decrease in investment income compared to the prior year was primarily due to a decrease in total portfolio and weighted average yield on debt investment.
- The decrease in net assets from operations for the year ended September 30, 2025, was primarily due to lower net investment income.
Historical Earnings Impact
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