PSEC: NAV Falls 5.6% as Quarterly Loss Reaches ﹩0.08
Prospect Capital reported fiscal fourth-quarter results on August 20, 2026, showing dividend coverage from net investment income alongside another decline in net asset value.
For the quarter ended June 30, net investment income was ﹩77.7 million, or ﹩0.15 per common share, down from ﹩0.16 in the March quarter. Common-share distributions were ﹩0.115 per share. PSEC also declared ﹩0.035 monthly common distributions for September and October.
NAV fell 5.6% sequentially to ﹩5.71 per share from ﹩6.05. PSEC reported a quarterly net loss applicable to common shareholders of ﹩38.1 million, or ﹩0.08 per share. Its NAV roll-forward attributed ﹩0.17 per share of the decline to common-stock transactions and ﹩0.12 to common distributions, partly offset by ﹩0.02 of other comprehensive income.
Nonaccrual loans remained 0.7% of total assets at fair value, unchanged from March but above 0.3% a year earlier.
Why it matters
Quarterly NII exceeded distributions, supporting near-term dividend capacity. The offset is continued per-share NAV erosion, including dilution associated with common-stock transactions, which weakens capital preservation even when NII covers the payout.
The next items to watch are management’s explanation on the August 21 earnings call, future share issuance and September-quarter NAV.
Sources
Disclosure: This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.