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Feb 28, 2025
Saratoga Investment Q4 2025 Earnings Report
Saratoga Investment Corp reported a decline in adjusted net investment income in Q4 2025 amid challenging market conditions.
Key Takeaways
In Q4 2025, Saratoga Investment Corp faced a decrease in adjusted net investment income per share to $0.56, missing analyst expectations. The company maintained strong portfolio quality with minimal non-accruals and transitioned to a monthly dividend structure.
Adjusted net investment income per share was $0.56, below the expected $0.77.
Total investment income for the quarter was $31.3 million.
Net asset value increased 4.7% sequentially to $392.7 million.
Transitioned to a monthly dividend structure with a quarterly base dividend of $0.75 per share.
Forward Guidance
Saratoga Investment Corp remains cautious due to economic uncertainties and lower middle market deal volumes, focusing on disciplined asset selection and maintaining strong portfolio quality.
Positive Outlook
- Strong portfolio quality with 99.7% of credits in the highest rating category.
- Minimal non-accruals at 0.3% of fair value.
- Transition to a monthly dividend structure to provide consistent returns.
- Maintained robust liquidity with $204.7 million in cash.
- Continued focus on disciplined asset selection amid market volatility.
Challenges Ahead
- Adjusted net investment income per share declined 37.8% quarter-over-quarter.
- EPS missed analyst expectations by $0.21.
- Revenue fell short of forecasts by $1.56 million.
- Return on equity declined to -0.7% for Q4 2025.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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