The dividend cut is a clear signal that management expects sustained pressure on earnings. Monitor upcoming NII trends and portfolio credit quality; further cuts or NAV erosion could pressure both common and preferred shares.
Price Chart
Executive Summary
Prospect Capital reported fiscal Q3 2026 results with Net Investment Income of $78.5M ($0.16/share), down from $90.9M ($0.19) prior quarter and $83.5M ($0.19) year ago. Total investment income of $150.1M missed the $163.2M consensus. The company cut its monthly common dividend by 22% from $0.045 to $0.035, signaling weakening earnings power.
Key Financial Metrics
Key Facts
- NII per share fell to $0.16 from $0.19 YoY and QoQ
- Total investment income $150.1M vs consensus $163.2M (miss of 8%)
- Common dividend cut from $0.045 to $0.035 per month (22% reduction)
- NAV per share declined to $6.05 from $6.21 prior quarter and $7.25 a year ago
- Net income swing positive ($26.4M) driven by unrealized gains, not core earnings
Financial Impact
NII per share down ~16% YoY; common distribution cut ~22%; revenue miss of $13.1M vs consensus
Risk Factors
- Further NII compression from declining asset base and higher funding costs
- Potential additional dividend reductions if earnings continue to deteriorate
- NAV erosion may limit ability to raise capital or meet BDC asset coverage requirements
Market Snapshot
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001287032-26-000165 |
| Document: psec-20260507.htm | 0001287032-26-000165 |
| Document: 0001287032-26-000165-index-headers.html | 0001287032-26-000165 |
| Document: 0001287032-26-000165-index.html | 0001287032-26-000165 |
| Document: 0001287032-26-000165.txt | 0001287032-26-000165 |
| 8-K Data (Synthetic) | 0001287032-26-000165 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 16, 2026 11w ago | 15-12G | $2.25 $2.30 | ▲ +2.22% | ▼ −2.22% | $2.05 (−8.89%) |
Jun 9, 2026 16w ago | DEFA14A | $2.24 $2.21 | ▼ −1.34% | ▼ −4.96% | $2.05 (−8.48%) |
May 7, 2026 21w ago | 8-K | $18.17 $16.74 | ▲ +7.87% | ▲ +7.89% | $2.05 (+88.72%) |
May 7, 2026 21w ago | Press Release | $2.47 $2.23 | ▼ −9.72% | ▼ −9.74% | $2.05 (−17.00%) |
May 4, 2026 21w ago | Press Release | $2.72 $2.46 | ▼ −9.56% | ▼ −15.20% | $2.05 (−24.63%) |
Mar 11, 2026 29w ago | DEFA14A | $2.56 $2.58 | ▲ +0.64% | ▼ −1.33% | $2.05 (−19.94%) |
US Market Status
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