Prospect Capital (PSEC) investor relations material

Executive summary

• Net investment income for the March quarter was $78.5 million, or $0.16 per share, with NAV at $3 billion and net assets per share at $6.05 as of March 31, 2026.

• Strategic focus increased on first lien, senior secured, middle market loans, with first lien mix rising to 72% since June 2024.

• Monthly common shareholder distributions of $0.035 per share announced for May through August 2026, with cumulative distributions reaching $22.07 per share since inception.

• Portfolio rotation away from subordinated structured notes and equity-linked assets, including real estate exits and corporate divestitures.

• AI and automation initiatives are being implemented to drive profit enhancements and operational efficiencies.

Financial highlights

• Total assets as of March 31, 2026, were $6.38 billion, with net asset value per share at $6.05, and net debt to total assets ratio at 27%.

• Net investment income for the nine months ended March 31, 2026, was $248.7 million.

• Unsecured debt plus perpetual preferred equity comprised 88% of total debt plus preferred.

• Interest income for the 12 months ending March 2026 was 92–93.4% of total investment income.

• Payment-in-kind interest income was reduced by 41% year-over-year, now 11% of total investment income.

Outlook and guidance

• Future real estate exit proceeds expected to be redeployed into first lien senior secured loans and selected equity-linked investments.

• Continued focus on middle market lending, especially to companies with less than $50 million EBITDA.

• Ongoing monthly distributions and preferred shareholder cash distributions at contract rates.

• Management highlighted ongoing macroeconomic uncertainty, including inflation, elevated interest rates, and geopolitical instability.

• AI and automation initiatives are expected to drive profit enhancements and operational efficiencies.