Refile: Saratoga Investment Q1 NAV per share falls on portfolio markdowns

Saratoga Investment

07/07/2026 21:25

Removes reference to declared dividend from Outlook section

Overview
US business development company's fiscal Q1 assets under management rose 1.6% sequentially
Fiscal Q1 adjusted net investment income per share fell both sequentially and yr/yr
Net asset value per share declined 4.9% from prior quarter, mainly due to unrealized depreciation

Outlook
Company says macroeconomic environment remains complex, with elevated inflation and interest rate uncertainty
Saratoga Investment expects portfolio composition and leverage profile to handle economic uncertainty

Result Drivers
PORTFOLIO MARKDOWNS - Co said unrealized depreciation, especially in Pepper Palace, Exigo, and Chronus, and market adjustments to equity valuations drove NAV and earnings declines
LOWER INTEREST INCOME & HIGHER INTEREST EXPENSE - Co said adjusted NII fell due to lower interest earned on cash and deployed capital, and higher interest expense from new bonds replacing lower-cost debt
TIGHTER SPREADS & RATE DECLINES - Co said declining short-term rates and tighter spreads on new originations reduced portfolio yields and income

Company press release: ID:nGNX8mMRmq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
 
-$0.42
 
Q1 Assets Under Management
 
$1.13 bln
 
Q1 Net Asset Value Per Share
 
$23.23
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Saratoga Investment Corp is $23.00, about 7.4% above its July 6 closing price of $21.42
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)