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Jun 30, 2025
Prospect Capital Q4 2025 Earnings Report
Prospect Capital reported a net loss and a decline in net asset value during Q4 2025.
Key Takeaways
Prospect Capital faced a challenging quarter with a net loss of $226.4 million and a significant decline in NAV per share. Despite lower investment income compared to the prior year, the company maintained consistent distributions and continued its portfolio repositioning strategy.
Revenue by Segment
Forward Guidance
Prospect Capital signaled continued focus on first lien debt investments and selective real estate exits as part of its strategic repositioning.
Positive Outlook
- High allocation to first lien debt at 70.5% of portfolio.
- Exits from structured notes nearly completed.
- Positive IRR of 12% on exited investments.
- Continued real estate exits to recycle capital.
- Strong internal ownership alignment with 28.5% insider ownership.
Challenges Ahead
- Net loss of $226 million during the quarter.
- NAV per share declined significantly from prior year.
- Non-accrual loans increased to 4.0% of assets.
- Decline in total investment income year over year.
- Increased cost of unsecured debt financing.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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