PennantPark Investment (PNNT) investor relations material

Executive summary

• Net investment income for Q2 2026 was $9.3 million ($0.14 per share), down from $11.4 million ($0.18 per share) year-over-year, primarily due to a smaller portfolio and lower yields.

• Portfolio totaled $1,203.5 million at March 31, 2026, diversified across 162 companies, with an average investment size of $6.1 million; four companies were on non-accrual, representing 2.7% of cost and 1.3% of fair value.

• PSLF joint venture portfolio contributed significantly, totaling $1.3 billion, with a 15.8% NII yield on invested capital over the last 12 months and a weighted average yield of 9.6%.

• Equity co-investment in Aechelon Technology is expected to generate $16 million in proceeds, a 15x multiple on invested capital.

• Portfolio remains conservatively positioned with median leverage of 4.7x, interest coverage of 2x, and loan-to-value of 45%.

Financial highlights

• Both GAAP and core NII were $0.14 per share for the quarter; investment income for Q2 2026 was $24.9 million, down from $30.7 million year-over-year.

• Operating expenses for Q2 2026 were $15.6 million, down from $19.2 million year-over-year, mainly due to lower debt-related interest and incentive fees.

• Net realized and unrealized loss on investments and debt was $11.7 million for the quarter; net change in unrealized depreciation for Q2 2026 was $(12.2) million.

• NAV per share was $6.73 at March 31, 2026, down 3.9% from $7.00 in the prior quarter and from $7.11 at September 30, 2025.

• Distributions declared for Q2 2026 were $0.20 per share base and $0.04 per share supplemental.

Outlook and guidance

• Management expects continued focus on U.S. middle-market companies, with portfolio activity dependent on market conditions, M&A activity, and capital availability.

• Expectation of increased transaction activity and repayments, with capital redeployed into income-generating investments.

• The company intends to maintain monthly distributions, with the board monitoring net investment income to determine payout levels.

• Management is focused on rotating out of equity into debt investments to drive core net investment income growth.

• Focus remains on high-quality middle market companies with strong free cash flow and disciplined underwriting.