PROSPECT CAPITAL CORP (PSEC) SEC Filings & Earnings Calls

NAV decline and net loss indicate potential credit or valuation issues.

“Net Income (Loss) Applicable to Common Shareholders $(38,091) (in thousands)” · word for word

Distribution cut from $0.135 to $0.115 per share QoQ.

“Distributions per Common Share $0.115 vs $0.135 prior quarter.”

Interest rate risk

“Changes in interest rates may adversely affect the value of our portfolio investments which could have an adverse effect on our business, financial condition and results of operations.” · word for word

Leverage risk

“We fund a portion of our investments with borrowed money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us.” · word for word

Valuation uncertainty

“Most of our portfolio investments are recorded at fair value as determined in good faith under the direction of our Board of Directors and, as a result, there is uncertainty as to the value of our portfolio investments.” · word for word

Competition risk

“We operate in a highly competitive market for investment opportunities.” · word for word

Regulatory risk

“Changes in the laws or regulations governing our business or the businesses of our portfolio companies and any failure by us or our portfolio companies to comply with these laws or regulations could negatively affect the profitability of our operations or the profitability of our portfolio companies.” · word for word

Investment write-down risk

“On December 31, 2025, we wrote down the cost basis of the Term Loan A and the Term Loan B loans to zero and realized a loss of $ 35,568 and $ 30,651 respectively.” · word for word

NAV erosion

“Net asset value per common share at end of period: $6.05 (March 31, 2026) vs $7.84 (March 31, 2025).” · word for word

Share dilution

“Shares of common stock outstanding at end of period: 488,029,036 (March 31, 2026) vs 447,344,378 (March 31, 2025).” · word for word

Market price decline

“Per common share market value at end of period: $2.61 (March 31, 2026) vs $4.10 (March 31, 2025).” · word for word

NAV per share declined 16.6% YoY to $6.05, reflecting portfolio compression and realized losses.

“NAV per Common Share $6.05 vs $7.25 prior year quarter”

Net investment income per share declined 15.8% YoY, indicating pressure on earnings power.

“NII per Common Share $0.16 vs $0.19 prior year quarter”

Dilution from Below-NAV Offerings

“Any sale of common stock at a price below NAV per share would result in an immediate dilution to existing common stockholders.” · word for word

Adviser Conflict of Interest

“Our Board of Directors also will consider, among other things, the fact that sales of common stock at a discount to net asset value will benefit the Company’s investment advisor as the investment advisor will earn additional investment management fees on the proceeds of such offerings” · word for word

NAV decline and net loss indicate potential credit quality deterioration in portfolio.

“NAV per share $6.21 vs $6.45 prior quarter; net loss $(6.6M).”

Dividend cut from $0.15 to $0.135 per quarter year-over-year signals earnings pressure.

“Distributions per Common Share $0.135 vs $0.15 prior year quarter.”

Investment Write-Down Risk

“On December 31, 2025, we wrote down the cost basis of the Term Loan A and the Term Loan B loans to zero and realized a loss of $35,568 and $30,651 respectively.” · word for word

Net Asset Value Erosion

“Net asset value per common share at end of period $6.21 compared to $7.84 a year ago.” · word for word

Market Value Decline

“Per common share market value at end of period $2.59 compared to $4.31 a year ago.” · word for word

NAV per share decline of 20% YoY signals potential asset quality or valuation pressure.

“NAV per Common Share $6.45 vs $8.10 a year ago.”

High floating-rate asset exposure (75.7%) creates sensitivity to interest rate changes.

“% of Interest-Bearing Assets at Floating Rates 75.7%.” · word for word