Saratoga Investment Corp. announced its financial results for the fiscal first quarter 2026 ended May 31, 2025, on July 8, 2025. The company reported a 17.9% increase in adjusted Net Investment Income (NII) per share from the previous quarter, reaching $0.66 per share. Net Asset Value (NAV) grew by 0.9% from the prior quarter to $396.4 million.
The company's quarterly Return on Equity (ROE) was 14.1%, generating an LTM ROE of 9.3%, which surpassed the BDC industry average of 7.0%. Originations for the quarter totaled $50.1 million, including investments in two new portfolio companies, six follow-ons, and new investments in multiple BB CLO debt securities.
Saratoga's cash position increased to $224.3 million, providing strong liquidity. The net interest margin expanded from $13.7 million to $15.6 million, driven by a $1.4 million increase in non-CLO interest income and a $0.5 million decrease in interest expense due to the repayment of $44 million in SBIC II debentures and the redemption of a $20 million 8.75% baby bond.
The company's overall credit quality remained high, with 99.7% of credits rated in the highest category. Zollege and Pepper Palace remained on non-accrual status, representing 0.3% and 0.6% of fair value, respectively. The core non-CLO portfolio was marked up by $2.6 million, standing 1.7% above cost.
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