Saratoga Investment Q2 NAV per share falls due to unrealized depreciation on investments

Saratoga Investment

06/10/2026 21:18

Overview
U.S. specialty finance BDC's fiscal Q2 assets under management grew 2.1% sequentially
Adjusted net investment income per share declined slightly from prior quarter, reflecting higher interest expense
Net asset value per share fell, mainly due to investment markdowns and dividend distributions exceeding earnings

Outlook
Company says market conditions remain volatile with significant competition in private credit
Saratoga expects to remain selective in deploying capital amid ongoing economic uncertainty

Result Drivers
INVESTMENT MARKDOWNS - Co said NAV per share decline was mainly due to unrealized depreciation on investments, particularly in Madison Logic, Exigo and Chronus, and reversals of prior appreciation in Gen4 and Modis
HIGHER INTEREST EXPENSE - Adjusted NII per share decline was mainly attributed to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth
PORTFOLIO GROWTH - Higher investment income was driven by the full-quarter impact of Q1 originations and partial-quarter impact of Q2 originations, more than offsetting repayments

Company press release: ID:nGNX2z4J5D

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Loss Per Share
 
$0.41
 
Q2 Assets Under Management
 
$1.15 bln
 
Q2 Net Asset Value Per Share
 
$22.15
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "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 $21.50, about 29.4% above its October 5 closing price of $16.61
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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(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.)