Saratoga Investment Corp. (SAR) released its fiscal third‑quarter 2026 results on January 7 2026, covering the period ended November 30 2025. The company reported adjusted net investment income (NII) per share of $0.61, surpassing the consensus estimate of $0.59 and marking a $0.02 beat of 3.4%. Revenue for the quarter was $31.65 million, outpacing the $31.3 million consensus by $0.35 million, a 1.1% lift that reflects stronger originations and a favorable mix of loan and equity income.
The company’s net originations reached $17.2 million, including three new portfolio companies, which helped offset the impact of higher repayment volumes. Net investment income per share rose $0.03 from the prior quarter, driven by a $0.02 increase in interest income and a modest $0.01 gain in equity earnings. Total investment income fell year‑over‑year, largely because the decline in short‑term interest rates and the higher level of repayments reduced the income generated from the company’s loan portfolio.
Saratoga’s net asset value (NAV) per share remained flat at $1.02, underscoring the stability of its underlying portfolio. Assets under management (AUM) grew both quarter‑over‑quarter and year‑over‑year, reflecting the net addition of $17.2 million in originations. The company’s return on equity (ROE) for the quarter was 13.5%, up from 9.7% on a trailing‑12‑month basis, indicating efficient use of capital and strong profitability relative to the BDC industry average of 6.6%.
Management attributed the year‑over‑year decline in total investment income to the combination of lower short‑term interest rates and a higher repayment balance, which reduced the income generated from the loan portfolio. The company also highlighted its continued focus on risk‑adjusted returns and its robust dividend distribution history, noting that it declared a base dividend of $0.75 per share for fiscal Q4 2026 and a special dividend of $0.25 per share for Q3.
Christian L. Oberbeck, Chairman and CEO, said the quarter’s highlights included “continued NAV growth from the previous quarter and year with stable NAV per share, an increase in NII of $0.03 per share from the previous quarter, a strong 13.5% return on equity beating the industry, net originations of $17.2 million including three new portfolio companies, and continued solid performance from the core BDC portfolio in a volatile macro environment.” He added that the company’s dividend distribution history remains strong and that it remains resilient amid the current macro‑economic headwinds.
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