Prospect Capital (PSEC) investor relations material

Executive summary

• NII was $76,359, or $0.15 per common share; realized and unrealized losses drove a $53,448 common-stockholder loss, or $0.10 per share.

• NAV per common share fell to $5.36 from $5.71 at June 30, 2026; portfolio fair value was $5,944,478 across 85 portfolio companies and other investments.

• Net debt to total assets was 25%; unsecured debt plus unsecured perpetual preferred represented 90.7% of total debt plus preferred.

• The board authorized $200 million of common-share repurchases and declared monthly common distributions of $0.035 per share for November through January.

• Reported income included non-recurring sale and fee items; a $3,250 administrative expense reimbursement reduced quarterly expenses.

Financial highlights

• Total investment income was $151,741 versus $157,624 year over year; net operating expenses were $75,382 versus $78,274, and NII was $76,359 versus $79,350.

• Net realized investment losses were $71,607 and net unrealized investment losses were $27,030; net assets from operations decreased $21,555.

• Interest income was $132,608 versus $152,394; PIK interest income was $16.5 million versus $15.4 million in the prior-year quarter.

• Loss per common share was $0.10 versus earnings of $0.10; net assets applicable to common shares were $2,875,089 versus $2,928,846 at June 30, 2026.

• Common distributions were $0.105 per share for the quarter, versus $0.135 in the prior-year quarter; cumulative distributions through January 2027 were $22.24 per share.

Outlook and guidance

• Monthly common distributions of $0.035 per share were declared for November 2026, December 2026, and January 2027; preferred distributions remain at contractual rates.

• The $300 million 8.95% 2031 Notes were priced October 29, with expected net proceeds of ~$283.4 million primarily for refinancing; closing was expected November 5.

• The RGIS Services sale was expected to close within 45 days of the October 27 signing, subject to customary and regulatory approvals.

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