Prospect Capital (NASDAQ:PSEC) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Prospect Capital (NASDAQ:PSEC) announced its earnings results on Monday. The financial services provider reported $0.19 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.09, Zacks reports. The business had revenue of $176.00 million during the quarter, compared to analysts’ expectations of $156.34 million. Prospect Capital had a positive return on equity of 11.79% and a negative net margin of 39.56%.

Prospect Capital Price Performance

PSEC opened at $2.88 on Wednesday. The stock has a fifty day moving average of $2.69 and a 200-day moving average of $2.75. The firm has a market capitalization of $1.36 billion, a P/E ratio of -3.56 and a beta of 0.89. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.64. Prospect Capital has a 12-month low of $2.45 and a 12-month high of $4.47.

Prospect Capital Announces Dividend

The company also recently announced a monthly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Tuesday, April 28th will be paid a dividend of $0.045 per share. This represents a c) annualized dividend and a yield of 18.8%. The ex-dividend date of this dividend is Tuesday, April 28th. Prospect Capital’s payout ratio is -62.79%.

Key Stories Impacting Prospect Capital

Here are the key news stories impacting Prospect Capital this week:

• Positive Sentiment: Earnings and revenue beat: PSEC reported Q2 results that topped expectations — $0.19 EPS vs. $0.10 consensus and $176M revenue vs. ~$156M expected — driven by higher investment income. This is the principal near-term catalyst supporting the stock’s rise. Prospect Capital Announces Financial Results for December 2025
• Positive Sentiment: High monthly dividend declared: Management announced a $0.045 monthly dividend (annualized yield ~18.8%), with multiple upcoming record/ex-dividend dates — an attractive income signal that often supports demand for the shares. Prospect Capital Reports Quarterly Results, Declares 2026 Distributions
• Positive Sentiment: Shift to higher‑quality assets: Management outlined a continued exit from subordinated notes and a target first‑lien mix of ~71.4%, which should reduce portfolio credit risk over time and improve loss absorption. Investors often view that as credit-quality improvement. Prospect Capital outlines continued exit from subordinated notes
• Positive Sentiment: Strong investment income trends highlighted on the call: Management emphasized gains in total investment income compared with Q1, supporting earnings durability. Prospect Capital Corp (PSEC) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Expanded preferred stock offering / capacity amendment: Prospect amended its dealer manager agreement to expand a preferred‑stock offering — this increases funding flexibility but the ultimate impact depends on issuance size and pricing. Prospect Capital Expands Preferred Stock Offering and Capacity
• Neutral Sentiment: Company filed full earnings materials and call transcript: Useful for deeper due diligence (transcript, slides and press release provide detail on portfolio composition, NAV commentary and capital plans). Prospect Capital Q2 2026 Earnings Call Transcript
• Negative Sentiment: Profitability metrics mixed: Despite the beat, PSEC reported a negative net margin (~39.6%) even as ROE was positive (~11.8%), highlighting operating and non‑cash items that temper the quality of reported EPS. Investors should be mindful of fee/expense dynamics. Prospect Capital earnings summary

Institutional Investors Weigh In On Prospect Capital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PSEC. BI Asset Management Fondsmaeglerselskab A S grew its holdings in shares of Prospect Capital by 1.3% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 520,592 shares of the financial services provider’s stock valued at $1,655,000 after acquiring an additional 6,516 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in Prospect Capital by 29.3% during the first quarter. Goldman Sachs Group Inc. now owns 393,034 shares of the financial services provider’s stock valued at $1,611,000 after purchasing an additional 89,139 shares during the last quarter. BNP Paribas Financial Markets grew its stake in Prospect Capital by 14.8% in the second quarter. BNP Paribas Financial Markets now owns 495,334 shares of the financial services provider’s stock valued at $1,575,000 after purchasing an additional 64,027 shares in the last quarter. Brevan Howard Capital Management LP raised its stake in shares of Prospect Capital by 204.6% during the 2nd quarter. Brevan Howard Capital Management LP now owns 412,695 shares of the financial services provider’s stock worth $1,312,000 after purchasing an additional 277,188 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co lifted its holdings in shares of Prospect Capital by 5.2% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 319,545 shares of the financial services provider’s stock valued at $1,015,000 after buying an additional 15,909 shares during the last quarter. Hedge funds and other institutional investors own 9.06% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Prospect Capital in a research note on Thursday, January 22nd. Wall Street Zen upgraded shares of Prospect Capital from a “hold” rating to a “buy” rating in a research report on Saturday, December 6th. Two investment analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Sell” and an average price target of $2.50.

Prospect Capital Company Profile

Prospect Capital Corporation is a publicly traded business development company listed on the Nasdaq stock exchange that specializes in providing private debt and equity financing solutions to middle-market companies across the United States. Structured as a closed-end, non-diversified management investment company under the Investment Company Act of 1940, Prospect Capital offers investors access to a diversified portfolio of senior secured loans, subordinated debt and selective equity interests in privately held businesses.

Since its founding in 2004, Prospect Capital has focused on tailoring financing structures to meet the growth, acquisition and recapitalization needs of its portfolio companies.