Prospect Capital reported total investment income of $151.7 million for its fiscal first quarter 2027, missing analyst expectations, though its Net Investment Income (NII) of $0.15 per share exceeded estimates. Net Asset Value (NAV) per common share fell 6.1% sequentially to $5.36, driven primarily by net unrealized losses on control and affiliate investments. The company signaled a renewed focus on capital returns by increasing its common share repurchase program to $200 million.
Key Highlights
- Net Investment Income of $76.4 million ($0.15 per share) provided 143% coverage of the $0.105 per share quarterly common distribution.
- Portfolio transition continues with first-lien senior secured loans increasing to 71.5% of the total mix at cost, up 740 basis points since June 2024.
- Regulatory asset coverage on senior securities improved to 184.9% as the company reduced outstanding debt principal by $341.4 million during the quarter.