PennantPark Investment (PNNT) investor relations material

Executive summary

• Core net investment income for the quarter ended September 30 was $0.15 per share, with total distributions of $0.24 per share.

• Reported net investment income of $46.1 million ($0.71 per share) for the year ended September 30, 2025, down from $60.1 million ($0.92 per share) the prior year.

• $48 million ($0.73 per share) of undistributed spillover income will be used to cover dividend shortfalls.

• Portfolio totaled $1,287.3 million, focused on core middle-market companies, with 166 companies and an average investment size of $7.0 million.

• Net asset value per share was $7.11, down from $7.36 in the prior quarter and $7.56 a year earlier.

Financial highlights

• GAAP and core net investment income were both $0.15 per share for the quarter.

• Investment income for the year was $122.4 million, down from $143.8 million the previous year.

• Net realized and unrealized loss on investments and debt was $10.8 million for the quarter; net realized losses for the year were $(52.4) million, with net change in unrealized appreciation of $39.2 million.

• Distributions declared for the year were $0.96 per share, totaling $62.7 million.

• Operating expenses included $10 million in interest and credit facility expenses, $6.1 million in management and incentive fees, $0.9 million in G&A, and $0.7 million in excise taxes.

Outlook and guidance

• Management is comfortable maintaining the current dividend level in the near term, supported by spillover income.

• Optimism about increased transaction activity and higher loan origination volumes in upcoming quarters.

• Equity rotation opportunities are expected to improve as M&A activity picks up.

• Management remains confident in the resilience of the core middle market portfolio, emphasizing disciplined focus and spillover income to support dividends.