PROSPECT CAPITAL CORP
For the period ended Dec 31, 2025. Filed Feb 9, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 31, 2025 · Filed Feb 9, 2026
PSEC$1.41+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001287032-25-000339
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-12-31; filed 2026-02-09.
0001287032-26-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 251 previous paragraphs and 294 current paragraphs.
169 unchanged; 71 reworded; 37 added; 9 removed; 2 previous and 17 current paragraphs rearranged.
Tables are not compared: 27 previous and 32 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (37)
Current report
Second Quarter Highlights
Current report
During the three months ended December 31, 2025, we repurchased $34,837 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 96.87%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,006 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes.
Current report
During the three months ended December 31, 2025, we repurchased $20,250 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 89.46%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $2,009 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.
Current report
Certain derivative instruments are valued as Level 2 assets or liabilities using pricing information obtained from third-party pricing services, including HIS Markit. These valuations are based on prevailing market data as of the measurement date and are derived using models that apply well-recognized financial principles. Significant inputs to the valuation models include observable market data such as interest rate curves, forward curves, credit spreads, foreign exchange rates, volatilities, and other market-corroborated inputs. Management and the independent valuation firm evaluate the methodologies and inputs to assess whether the resulting values are representative of fair value.
Current report
InterDent, Inc.
Current report
Prospect owns 100% of the equity of InterDent, Inc. InterDent is a dental support organization (“DSO”). InterDent provides business and administrative support services to a regionally-diversified set of dental practices so that dentists can focus on delivering high-quality clinical care and patient satisfaction.
Current report
The fair value of our investment in InterDent was $337,872 as of December 31, 2025, a discount of $75,828 to its amortized cost basis compared to a fair value of $338,781 as of June 30, 2025, a discount of $55,244 to its amortized cost. The increase in discount to amortized cost resulted from a decline in financial performance and increased debt in the capital structure.
Current report
NMMB Holdings, Inc.
Current report
Prospect owns 92.77% of the fully-diluted equity of NMMB Holdings, Inc. (“Refuel”). NMMB, through its subsidiary, Refuel Agency, provides integrated marketing and advertising services to brands across industries.
Current report
The fair value of our investment in Refuel was $84,089 as of December 31, 2025, a premium of $54,366 to its amortized cost compared to a fair value of $72,207 as of June 30, 2025, a premium of $42,484 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance.
Current report
Pacific World Corporation
Current report
On May 29, 2018, Prospect exercised its rights and remedies under its loan documents to exercise the shareholder voting rights in respect of the stock of Pacific World Corporation (“Pacific World”) and to appoint a new Board of Directors of Pacific World. As a result, as of June 30, 2018, Prospect’s investment in Pacific World is classified as a control investment. Pacific World supplies nail and beauty care products to food, drug, mass, and value retail channels worldwide.
Current report
The fair value of our investment in Pacific World was $107,626 as of December 31, 2025, a discount of $244,625 to its amortized cost compared to a fair value of $107,970 as of June 30, 2025, a discount of $228,143 to its amortized cost. The increase in discount to amortized cost resulted from increased debt in the capital structure and lower projected performance.
Current report
USES Corp.
Current report
Prospect owns 99.96% of the equity of USES Corp. as of December 31, 2025 and June 30, 2025. USES provides industrial, environmental, and maritime services in the Gulf States region.
Current report
The fair value of our investment in USES was $10,708 as of December 31, 2025, a discount of $10,394 to its amortized cost compared to a fair value of $14,518 as of June 30, 2025, a discount of $72,258 to its amortized cost. The decrease in discount is due to a realized loss recorded in the December 2025 quarter, which reduced amortized cost basis following a period of decreased performance and core asset sales.
Current report
During the three and six months ended December 31, 2025, we repurchased $34,837 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 96.87%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,006 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes.
Current report
As of December 31, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 3.364% 2026 Notes were $267,533 and $300,000, respectively.
Current report
During the three and six months ended December 31, 2025, we repurchased $20,250 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 89.46%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $2,009 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.
Current report
As of December 31, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 5.50% 2030 Notes were $171,282 and $0, respectively.
Current report
In connection with the issuance of the 5.50% 2030 Notes, the Company entered into a series of forward currency contracts designated as hedging instruments under ASC 815. The Company uses derivative instruments in connection with its risk management activities to reduce exposure to foreign currency exchange rate risk arising from foreign-denominated interest payments and foreign-denominated principal on the 5.50% 2030 Notes. Derivative instruments are carried at fair value on the Consolidated Statement of Assets and Liabilities.
Current report
As of December 31, 2025 and June 30, 2025, the fair value of the derivative assets and derivative liabilities were $484 and $968, and $0 and $0, respectively.
Current report
Other income for the six months ended December 31, 2025 decreased by $14,363 compared to the six months ended December 31, 2024 primarily due to a $14,831 decrease in royalty and net revenue interests from our investment in National Property REIT Corp. (“NPRC”), offset by a $389 increase in structuring and amendment fees.
Current report
Interest expense was $56,736 and $67,002 for the six months ended December 31, 2025 and 2024, respectively. The weighted average stated interest rate on borrowings (excluding amortization, accretion and undrawn facility fees) was 5.29% and 5.30% for the six months ended December 31, 2025 and 2024, respectively. The stable rate is primarily due to the 2025 maturity of the Convertible Notes, the extinguishment of the Original 2026 Notes, and repurchases of $20,250 of the aggregate principal amount of 3.437% 2028 Notes, offset by an increase of the Prospect Capital InterNotes® average outstanding balance and stated interest rates and the issuance of the 5.50% 2030 Notes. The weighted average interest rate on borrowings was 6.20% and 6.15% for the six months ended December 31, 2025 and 2024, respectively. The increase is primarily due to an increase in the average outstanding balance and stated interest rates for the Prospect Capital InterNotes®, an increase in original issuance discount on the 5.50% 2030 Notes and deferred financing fee amortization on the 3.437% 2028 Notes and 5.50% 2030 Notes. The increase is partially offset by a decrease in average outstanding balances from maturity of the 2025 Convertible Notes, the extinguishment of the Original 2026 Notes, and repurchases of $20,250 of the aggregate principal amount of 3.437% 2028 Notes.
Current report
In December 2025, Prospect Administration finalized a litigation settlement related to a portfolio company owned by the Company that provided $20,500 in proceeds to Prospect Administration. As of December 31, 2025, the Company recorded a receivable from Prospect Administration for $2,369 for reimbursement of external legal fees paid by the Company related to the litigation, which reduced other general and administration expenses for the three and six months ended December 31, 2025 presented in the Consolidated Statement of Operations. Of the remaining proceeds, $3,375 was sent to the portfolio company involved in the litigation settlement, $5,500 was used to offset the below current period allocations of overhead expense from Prospect Administration to the Company in the three months ended December 31, 2025, and $9,256 was retained by Prospect Administration to offset future overhead allocations from Prospect Administration to the Company during the year ended June 30, 2026.
Current report
Net Realized Gain/Loss from Derivative Instruments and Foreign Currency Transactions
Current report
During the three andsix months ended December 31, 2025, we recorded a net realized loss of $224 from derivative instruments and foreign currency transactions. During the three and six months ended December 31, 2024, there were no realized gains or losses from derivative instruments and foreign currency transactions.
Current report
The following table reflects net change in unrealized gains (losses) on investments for the six months ended December 31, 2025:
Current report
The following table reflects net change in unrealized gains (losses) on investments for the six months ended December 31, 2024:
Current report
Net Change in Unrealized Gain/Loss from Derivative Instruments and Foreign Currency Transactions
Current report
During the three andsix months ended December 31, 2025, we recorded a net change in unrealized gain of $155 from derivative instruments and foreign currency transactions. During the three and six months ended December 31, 2024, there were no net changes in unrealized gains or losses from derivative instruments and foreign currency transactions.
Current report
During the three months ended December 31, 2024, we exchanged an aggregate of 51,185 Series M1 Preferred Stock for an aggregate of 5,000 and 46,185 newly-issued Series M3 Preferred Stock and Series M4 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act. During the three months ended December 31, 2024, we exchanged an aggregate of 103,590 Series M3 Preferred Stock for an aggregate of 103,590 newly-issued Series M4 Preferred Stock pursuant to the Securities Act.
Current report
During the six months ended December 31, 2024, we exchanged an aggregate of 138,618 Series M1 Preferred Stock for an aggregate of 10,842 and 127,774 newly-issued Series M3 Preferred Stock and Series M4 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act. During the six months ended December 31, 2024, we exchanged an aggregate of 235,507 Series M3 Preferred Stock for an aggregate of 235,504 newly-issued Series M4 Preferred Stock pursuant to the Securities Act.
Current report
During the three months ended December 31, 2025, we exchanged an aggregate of 35,094 Series M1 Preferred Stock for an aggregate of 35,094 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. Additionally, during the three months ended December 31, 2025, we exchanged and aggregate of 24,350 Series M3 Preferred Stock for an aggregate of 24,350 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. During the six months ended December 31, 2025, we exchanged an aggregate of 35,094 Series M1 Preferred Stock for an aggregate of 35,094 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. Additionally, during the six months ended December 31, 2025, we exchanged an aggregate of 36,532 Series M3 Preferred Stock for an aggregate of 36,532 newly-issued Series M5 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act.
Current report
As of December 31, 2025, we have reserved 550,000,000 shares of our common stock for issuance upon conversion of the 5.50% Preferred Stock and the 6.50% Preferred Stock and 95,000,061 shares of our common stock for issuance to common stock holders pursuant to our common stock dividend reinvestment and direct stock purchase plan.
Current report
On January 6, 2026, we, our Investment Adviser and certain affiliates received an exemptive order from the SEC, which superseded a prior co-investment exemptive order granted on January 13, 2020 (and amended on August 2, 2022), that permits us, among other things, to participate with other funds managed by the Investment Adviser or certain affiliates, including Priority Income Fund, Inc., Prospect Floating Rate and Alternative Income Fund, Inc. and Prospect Enhanced Yield Fund, in certain co-investment transactions, where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions included therein.
Current report
Certain derivative instruments are valued using pricing information obtained from third-party pricing services, including HIS Markit. These valuations are based on prevailing market data as of the measurement date and are derived using models that apply well-recognized financial principles. Significant inputs to the valuation models include observable market data such as interest rate curves, forward curves, credit spreads, foreign exchange rates, volatilities, and other market-corroborated inputs. Management and the independent valuation firm evaluate the methodologies and inputs to assess whether the resulting values are representative of fair value.
Removed paragraphs (9)
Previous report
First Quarter Highlights
Previous report
As of September 30, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 3.364% 2026 Notes were $300,000 and $300,000, respectively.
Previous report
For the three months ended September 30, 2025 and September 30, 2024, our operating activities provided $278,992 and provided $173,726 of cash, respectively. The $105,266 increase is primarily driven by a $180,309 decrease in originations, offset by a $52,241 decrease in repayments and sales of investments, and a $7,432 decrease in net reductions to Subordinated Structured Notes and related costs, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. There were no investing activities for the three months ended September 30, 2025 and September 30,
Previous report
During the three months ended September 30, 2025, we exchanged an aggregate of 0 Series M1 Preferred Stock. Additionally, during the three months ended September 30, 2025, we exchanged an aggregate of 12,182 Series M3 Preferred Stock for an aggregate of 0 and 12,182 newly-issued Series M4 Preferred Stock and newly-issued Series M5 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act.
Previous report
The 5.50% 2030 Notes will mature on December 31, 2030 and will bear interest at a rate of 5.50% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2026. The 5.50% 2030 Notes will be general senior unsecured obligations of the Company, will rank equally in right of payment with our existing and future senior unsecured debt, and will rank senior in right of payment to any potential subordinated debt, should any be issued in the future.
Previous report
After 60 days from the date on which the 5.50% 2030 Notes are listed for trading on the TASE, we may redeem the 5.50% 2030 Notes, at our option, in whole or in part, at any time or from time to time, at a redemption price equal to the greater of (i) par plus accrued and unpaid interest on the 5.50% 2030 Notes, if any, up to but excluding the date of redemption, (ii) the average closing price of the 5.50% 2030 Notes over the 30 trading days preceding our Board of Directors’ resolution approving the redemption and (iii) the discounted value of the remaining payments under the 5.50% 2030 Notes, as set forth in the Deed of Trust.
Previous report
The Deed of Trust contains other terms and conditions, including, without limitation, affirmative and negative covenants, such as minimum total equity (common equity plus preferred equity), a maximum ratio of net debt to total assets, a minimum ratio of total equity (common equity plus preferred equity) to total assets, and a negative pledge. These and other covenants are subject to important limitations and exceptions that are described in the Deed of Trust. In addition, the Deed of Trust contains customary events of default, with customary cure and notice periods, for a notes offering in Israel. Based on our Consolidated Statement of Assets and Liabilities as of September 30, 2025, we are in compliance with the financial covenants of the Deed of Trust.
Previous report
On November 2, 2025, the Company’s shares of common stock listed and commenced trading on the TASE under the ticker symbol “PSEC”.
Previous report
In connection with the issuance of the 5.50% 2030 Notes, the Company entered into foreign exchange forward contracts in an aggregate notional amount equal to the expected interest and principal payments under the 5.50% 2030 Notes, thereby substantially mitigating foreign exchange risk associated with the 5.50% 2030 Notes, which are denominated in Israeli shekel.
Reworded paragraphs (71)
Previous wording
We hold many of our control investments in a two-tier structure consisting of a holding company and one or more related operating companies for tax purposes. These holding companies serve various business purposes including concentration of management teams, optimization of third-party borrowing costs, improvement of supplier, customer, and insurance terms, and enhancement of co-investments by the management teams. In these cases, our investment, which is generally equity in the holding company, the holding company’s equity investment in the operating company and any debt from us directly to the operating company structure represents our total exposure for the investment. As of September 30, 2025, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,416,328 and $3,710,632, respectively. This structure gives rise to several of the risks described in our public documents and highlighted elsewhere in this Quarterly Report. We consolidate all wholly owned and substantially wholly owned holding companies formed by us for the purpose of holding our controlled investments in operating companies. There is no significant effect of consolidating these holding companies as they hold minimal assets other than their investments in the controlled operating companies. Investment company accounting prohibits the consolidation of any operating companies.
Current wording
We hold many of our control investments in a two-tier structure consisting of a holding company and one or more related operating companies for tax purposes. These holding companies serve various business purposes including concentration of management teams, optimization of third-party borrowing costs, improvement of supplier, customer, and insurance terms, and enhancement of co-investments by the management teams. In these cases, our investment, which is generally equity in the holding company, the holding company’s equity investment in the operating company and any debt from us directly to the operating company structure represents our total exposure for the investment. As of December 31, 2025, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,364,482 and $3,695,903, respectively. This structure gives rise to several of the risks described in our public documents and highlighted elsewhere in this Quarterly Report. We consolidate all wholly owned and substantially wholly owned holding companies formed by us for the purpose of holding our controlled investments in operating companies. There is no significant effect of consolidating these holding companies as they hold minimal assets other than their investments in the controlled operating companies. Investment company accounting prohibits the consolidation of any operating companies.
Previous wording
Our previously outstanding 6.375% convertible notes due 2025, which matured during the fiscal year ended June 30, 2025, are referred to as the “2025 Notes” or the “Convertible Notes”. Our previously outstanding 3.706% unsecured notes due 2026, which redeemed during the fiscal year ended June 30, 2025, are referred to as the “2026 Notes”. Our $300.0 million of 3.364% unsecured notes due 2026 are referred to as the “3.364% 2026 Notes”. Our $300.0 million of 3.437% unsecured notes due 2028 are referred to as the “3.437% 2028 Notes”, and collectively with the 2026 Notes, and the 3.364% 2026 Notes are the “Public Notes”. Any corporate notes issued pursuant to our medium term notes program with InspereX LLC are referred to as “Prospect Capital InterNotes®”. The Convertible Notes, Public Notes, and Prospect Capital InterNotes® are collectively referred to as the “Unsecured Notes”.
Current wording
Our previously outstanding 6.375% convertible notes due 2025, which matured during the fiscal year ended June 30, 2025, are referred to as the “2025 Notes” or the “Convertible Notes”. Our previously outstanding 3.706% unsecured notes due 2026, which were redeemed during the fiscal year ended June 30, 2025, are referred to as the “2026 Notes”. Our $267.5 million of 3.364% unsecured notes due 2026 are referred to as the “3.364% 2026 Notes”. Our $279.8 million of 3.437% unsecured notes due 2028 are referred to as the “3.437% 2028 Notes”. Our $171.3 million of 5.50% unsecured notes due 2030 are referred to as the “5.50% 2030 Notes”, and collectively with the 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes, as the “Public Notes”. Any corporate notes issued pursuant to our medium term notes program with InspereX LLC are referred to as “Prospect Capital InterNotes®”. The Convertible Notes, Public Notes, and Prospect Capital InterNotes® are collectively referred to as the “Unsecured Notes”.
Previous wording
We seek to be a long-term investor with our portfolio companies. During thethree months ended September 30, 2025 we acquired $20,048 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $50,170, funded $5,658 of revolver advances, and recorded PIK interest of $15,691, resulting in gross investment originations of $91,567. During the three months ended September 30, 2025 we received full repayments totaling $82,219, received $41,285 in sales, received $23 of revolver paydowns, and received $111,133 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $234,660.
Current wording
We seek to be a long-term investor with our portfolio companies. During thethree months ended December 31, 2025 we acquired $13,290 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $37,818, funded $9,322 of revolver advances, and recorded PIK interest of $20,004, resulting in gross investment originations of $80,434. During the three months ended December 31, 2025 we received full repayments totaling $17,200, received $14,176 of revolver paydowns, and received $47,890 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $79,266. There were no sales of investments during the three months ended December 31, 2025.
Previous wording
During the three months ended September 30, 2025 we repaid $3,264 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined inthe InterNotes® Offering prospectus. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended September 30, 2025 was $77.
Current wording
During the three months ended December 31, 2025 we repaid $2,386 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined inthe InterNotes® Offering prospectus. During the three months ended December 31, 2025, we also redeemed$20,658 aggregate principal amount of Prospect Capital InterNotes® at par with a weighted average interest rate of 6.41%. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended December 31, 2025 was $119.
Previous wording
During the three months ended September 30, 2025 we issued $7,868 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 7.42%, to extend our borrowing base. The newly issued notes mature between July 15, 2028 and October 15, 2032 and generated net proceedsof $7,752.
Current wording
During the three months ended December 31, 2025 we issued $9,491 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 6.32%, to extend our borrowing base. The newly issued notes mature between October 15, 2028 and January 15, 2033 and generated net proceedsof $9,372.
Previous wording
On October 30, 2025 we issued approximately $167,637 in aggregate principal amount of 5.50% Series A Notes due 2030 (the “5.50% 2030 Notes”) pursuant to a deed of trust, dated as of October 28, 2025, between the Company and Mishmeret Trust Company Ltd., as trustee (the “Deed of Trust”). The 5.50% 2030 Notes offering in Israel closed on October 30, 2025 and the 5.50% 2030 Notes are listed and commenced trading on the Tel Aviv Stock Exchange Ltd. (the “TASE”) on November 2, 2025. The 5.50% 2030 Notes are denominated in Israeli Shekels. After the deduction of offering discounts, fees and other offering expenses, we received net proceeds of approximately $159,807, which we intend to use primarily for the refinancing of existing indebtedness including, but not limited to, the repayment of borrowings under the Revolving Credit Facility. We intend to use the remainder of the net proceeds from the offering, if any, to maintain balance sheet liquidity, including to make investments in high quality short-term debt instruments, and to make other long-term investments in accordance with our investment objectives. The 5.50% 2030 Notes are rated ilAA- by S&P Global Ratings Maalot Ltd.
Current wording
On October 30, 2025, we issued approximately $167,637 in aggregate principal amount of the 5.50% 2030 Notes which mature on December 31, 2030. The 5.50% 2030 Notes bear interest at a rate of 5.50% per year, payable quarterly on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2026. Total proceeds from the issuance of the 5.50% 2030 Notes, net of offering discounts, fees and other offering expenses, were approximately $159,531.
Previous wording
On July 22, 2025, August 20, 2025 and September 18, 2025 we issued 718,088, 836,705, and 807,813 shares of our common stock in connection with the dividend reinvestment plan, respectively.
Current wording
On October 22, 2025, November 18, 2025 and December 18, 2025 we issued 828,162, 839,173, and 969,998 shares of our common stock in connection with the dividend reinvestment plan, respectively.
Previous wording
During the three months ended September 30, 2025, 548,527 shares of our Series A1 Preferred Stock, 243,132 shares of our Series A3 Preferred Stock, 59,740 shares of our Series M1 Preferred Stock, and 115,320 shares of our Series M3 Preferred Stock were converted to 7,650,920 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in aloss from redemption of preferred stockof $1,410.
Current wording
During the three months ended December 31, 2025, 446,904 shares of our Series A1 Preferred Stock, 253,842 shares of our Series A3 Preferred Stock, 27,770 shares of our Series M1 Preferred Stock, and 157,744 shares of our Series M3 Preferred Stock were converted to 7,908,194 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in aloss from redemption of preferred stockof $1,388.
Previous wording
During the three months ended September 30, 2025 we issued 577,233 shares of Series A5 Preferred Stock for net proceeds of $12,988, and 133,736 sharesof Series M5 Preferred Stock for net proceeds of$3,249, each excluding offering costs and preferred stock dividend reinvestment.
Current wording
During the three months ended December 31, 2025 we issued 709,071 shares of Series A5 Preferred Stock for net proceeds of $15,954, and 163,585 sharesof Series M5 Preferred Stock for net proceeds of$3,968, each excluding offering costs and preferred stock dividend reinvestment.
Previous wording
In connection with our Preferred Stock Dividend Reinvestment Plan, we issued additional Series A1 Preferred Stock, Series A3 Preferred Stock, Series A4 Preferred Stock, Series A5 Preferred Stock, Series M1 Preferred Stock, Series M3 Preferred Stock, Series M4 Preferred Stock, and Series M5 Preferred Stock of 13,809, 13,774, and 14,073 throughout July, August, and September, respectively.
Current wording
In connection with our Preferred Stock Dividend Reinvestment Plan, we issued additional Series A1 Preferred Stock, Series A3 Preferred Stock, Series A4 Preferred Stock, Series A5 Preferred Stock, Series M1 Preferred Stock, Series M3 Preferred Stock, Series M4 Preferred Stock, and Series M5 Preferred Stock of 13,472, 13,394, and 13,419 throughout October, November, and December, respectively.
Previous wording
At September 30, 2025, we have $6,513,456, or 216.8%, of our net assets applicable to common shares invested in 92 portfolio investments and CLOs.
Current wording
As of December 31, 2025, we have $6,441,536, or 217.7%, of our net assets applicable to common shares invested in 91 portfolio investments and CLOs.
Previous wording
Our annualized current yield was 11.8% and 12.2% as of September 30, 2025 and June 30, 2025, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 9.1% and 9.6%as of September 30, 2025 and June 30, 2025, respectively, across all investments. In many of our portfolio companies we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns. Some of these equity positions include features such as contractual minimum internal rates of returns, preferred distributions, flip structures and other features expected to generate additional investment returns, as well as contractual protections and preferences over junior equity, in addition to the yield and security offered by our cash flow and collateral debt protections.
Current wording
Our annualized current yield was 10.9% and 12.2% as of December 31, 2025 and June 30, 2025, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 8.3% and 9.6%as of December 31, 2025 and June 30, 2025, respectively, across all investments. In many of our portfolio companies we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns. Some of these equity positions include features such as contractual minimum internal rates of returns, preferred distributions, flip structures and other features expected to generate additional investment returns, as well as contractual protections and preferences over junior equity, in addition to the yield and security offered by our cash flow and collateral debt protections.
Previous wording
As of September 30, 2025, we own controlling interests in the following portfolio companies: Belnick, LLC (Belnick); CP Energy Services Inc. (“CP Energy”); Credit Central Loan Company, LLC (“Credit Central”); Echelon Transportation, LLC (“Echelon”); First Tower Finance Company LLC (“First Tower Finance”); Freedom Marine Solutions, LLC (“Freedom Marine”); InterDent, Inc. (“InterDent”); Kickapoo Ranch Pet Resort (“Kickapoo”); MITY, Inc. (“MITY”); NPRC; Nationwide Loan Company LLC (“Nationwide”); NMMB, Inc. (“NMMB”); Pacific World Corporation (“Pacific World”); R-V Industries, Inc. (“R-V”); Universal Turbine Parts, LLC (“UTP”); USES Corp. (“United States Environmental Services” or “USES”); and Valley Electric Company, Inc. (“Valley Electric”). In June 2019, CP Energy purchased a controlling interest of the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $53,857 and $51,477 in first lien term loans (the “Spartan Term Loan A”) due to us as of September 30, 2025 and June 30, 2025, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, we report our investments in Spartan as control investment. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loan A.
Current wording
As of December 31, 2025, we own controlling interests in the following portfolio companies: Belnick, LLC (Belnick); CP Energy Services Inc. (“CP Energy”); Credit Central Loan Company, LLC (“Credit Central”); Echelon Transportation, LLC (“Echelon”); First Tower Finance Company LLC (“First Tower Finance”); Freedom Marine Solutions, LLC (“Freedom Marine”); InterDent, Inc. (“InterDent”); Kickapoo Ranch Pet Resort (“Kickapoo”); MITY, Inc. (“MITY”); NPRC; Nationwide Loan Company LLC (“Nationwide”); NMMB, Inc. (“NMMB”); Pacific World Corporation (“Pacific World”); R-V Industries, Inc. (“R-V”); Universal Turbine Parts, LLC (“UTP”); USES Corp. (“United States Environmental Services” or “USES”); and Valley Electric Company, Inc. (“Valley Electric”). In June 2019, CP Energy purchased a controlling interest of the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $56,251 and $51,477 in first lien term loans (the “Spartan Term Loan A”) due to us as of December 31, 2025 and June 30, 2025, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, we report our investments in Spartan as control investment. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loan A.
Previous wording
Our origination efforts are focused primarily on secured lending to non-control investments to reduce the risk in the portfolio by investing primarily in first lien loans and second lien loans, though we also continue to invest in select equity investments.
Current wording
Our current origination efforts are focused primarily on secured lending to middle market investments to reduce the risk in the portfolio by investing primarily in first lien loans and second lien loans, though we also continue to invest in select equity investments.
Previous wording
Our gross investment activity for the three months ended September 30, 2025 and September 30, 2024 are presented below:
Current wording
Our gross investment activity for the six months ended December 31, 2025 and December 31, 2024 are presented below:
Previous wording
(2) Approximately$15,416 and $33,144 was accrued as PIK interest income during the three months ended September 30, 2025 and September 30, 2024, respectively.
Current wording
(2) Approximately$30,560 and $53,343 was accrued as PIK interest income during the six months ended December 31, 2025 and December 31, 2024, respectively.
Previous wording
Key developments in the Company’s portfolio during the three months ended September 30, 2025 are as follows:
Current wording
Key developments in the Company’s portfolio during the six months ended December 31, 2025 are as follows:
Previous wording
The Board of Directors looked at several factors in determining where within the range to value the asset including: recent operating and financial trends for the asset, independent ratings obtained from third parties, comparable multiples for recent sales of companies within the industry and discounted cash flow models for our investments in CLOs. The composite of all these various valuation techniques, applied to each investment, was a total valuation of $6,513,456.
Current wording
The Board of Directors looked at several factors in determining where within the range to value the asset including: recent operating and financial trends for the asset, independent ratings obtained from third parties, comparable multiples for recent sales of companies within the industry and discounted cash flow models for our investments in CLOs. The composite of all these various valuation techniques, applied to each investment, was a total valuation of $6,441,536.
Previous wording
Control investments offer increased risk and reward over straight debt investments. Operating results and changes in market multiples can result in dramatic changes in values from quarter to quarter. Significant downturns in operations can further result in our looking to recoveries on sales of assets rather than the enterprise value of the investment. Equity positions in our portfolio are susceptible to potentially significant changes in value, both increases as well as decreases, due to changes in operating results and market multiples. Our controlled companies discussed below experienced such changes and we recorded corresponding fluctuations in valuations during the three months ended September 30, 2025.
Current wording
Control investments offer increased risk and reward over straight debt investments. Operating results and changes in market multiples can result in dramatic changes in values from quarter to quarter. Significant downturns in operations can further result in our looking to recoveries on sales of assets rather than the enterprise value of the investment. Equity positions in our portfolio are susceptible to potentially significant changes in value, both increases as well as decreases, due to changes in operating results and market multiples. Our controlled companies discussed below experienced such changes and we recorded corresponding fluctuations in valuations during the six months ended December 31, 2025.
Previous wording
The fair value of our investment in Belnick was $74,207 as of September 30, 2025, a discount of $16,908 to its amortized cost basis compared to a fair value of $51,166 as of June 30, 2025, a discount of $37,086 to its amortized cost. The decrease in discount to amortized cost resulted from an improvement in financial performance.
Current wording
The fair value of our investment in Belnick was $76,264 as of December 31, 2025, a discount of $17,711 to its amortized cost basis compared to a fair value of $51,166 as of June 30, 2025, a discount of $37,086 to its amortized cost. The decrease in discount to amortized cost resulted from an improvement in financial performance.
Previous wording
The fair value of our investment in First Tower was $835,932 as of September 30, 2025, a premium of $352,583 to its amortized cost basis compared to a fair value of $760,518 as of June 30, 2025, a premium of $277,200 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance and an expansion of comparable company trading multiples.
Current wording
The fair value of our investment in First Tower was $901,020 as of December 31, 2025, a premium of $420,538 to its amortized cost basis compared to a fair value of $760,518 as of June 30, 2025, a premium of $277,200 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance and an expansion of comparable company trading multiples.
Previous wording
During thethree months ended September 30, 2024, we provided$21,615 of debt financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rate secured structured notes.
Current wording
During thesix months ended December 31, 2024, we provided$44,769 of debt financing to NPRC to fund real estate capital expenditures, provide working capital, and to fund purchases of rate secured structured notes.
Previous wording
During thethree months ended September 30, 2024, we received partial repayments of$14,000 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Current wording
During thesix months ended December 31, 2024, we received partial repayments of$76,756 of our loans previously outstanding with NPRC and its wholly owned subsidiary.
Previous wording
As of September 30, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $925,611 and a fair value of $1,245,263. The fair value of $1,235,113 related to NPRC’s real estate portfolio was comprised of forty-five multi-family properties, five student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of September 30, 2025:
Current wording
As of June 30, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $922,647 and a fair value of $1,300,972. The fair value of $1,289,092 related to NPRC’s real estate portfolio was comprised of forty-seven multi-family properties, five student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of June 30, 2025:
Previous wording
The fair value of our investment in NPRC was $1,245,263 as of September 30, 2025, a premium of $319,652 from its amortized cost basis, compared to a fair value of $1,300,972 as of June 30, 2025. The decrease in premium to amortized cost was primarily driven by a decline in market interest rates, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure. These effects were partially offset by growth in net operating income across NPRC’s real estate portfolio.
Current wording
The fair value of our investment in NPRC was $1,173,262 as of December 31, 2025, a premium of $269,592 from its amortized cost basis, compared to a fair value of $1,300,972 as of June 30, 2025, a premium of $378,325 to its amortized cost. The decrease in premium to amortized cost was primarily driven by a softening in cash flow projections across NPRC’s real estate portfolio, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure.
Previous wording
The fair value of our investment in QC Holdings was $99,231 as of September 30, 2025, a premium of $20,239 to its amortized cost compared to a fair value of $77,286 as of June 30, 2025, a premium of $0 to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance.
Current wording
The fair value of our investment in QC Holdings was $95,672 as of December 31, 2025, a premium of $16,680 to its amortized cost compared to a fair value of $77,286 as of June 30, 2025, equal to its amortized cost. The increase in premium to amortized cost resulted from an improvement in financial performance.
Previous wording
The fair value of our investment in R-V was $94,063 as of September 30, 2025, a premium of $39,875 to its amortized cost compared to a fair value of $105,577 as of June 30, 2025, a premium of $51,389 to its amortized cost. The decrease in premium to amortized cost resulted from a reduction in comparable company multiples.
Current wording
The fair value of our investment in R-V was $102,664 as of December 31, 2025, a premium of $39,476 to its amortized cost compared to a fair value of $105,577 as of June 30, 2025, a premium of $51,389 to its amortized cost. The decrease in premium to amortized cost was primarily driven by Prospect’s incremental investment to R-V made in connection with a dividend recapitalization.
Previous wording
The fair value of our investment in Valley Electric was $322,070 as of September 30, 2025, a premium of $226,158 to its amortized cost compared to a fair value of $351,291 as of June 30, 2025, a premium of $255,379 to its amortized cost. The decrease in premium to amortized cost primarily resulted from a reduction in comparable company multiples.
Current wording
The fair value of our investment in Valley Electric was $318,383 as of December 31, 2025, a premium of $222,471 to its amortized cost compared to a fair value of $351,291 as of June 30, 2025, a premium of $255,379 to its amortized cost. The decrease in premium to amortized cost primarily resulted from a reduction in comparable company multiples.
Previous wording
Our controlled investments, including those discussed above, are valued at $294,304 above their amortized cost as of September 30, 2025.
Current wording
Our controlled investments, including those discussed above, are valued at $331,421 above their amortized cost as of December 31, 2025.
Previous wording
We hold two affiliate investments at September 30, 2025 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $30,821, a premium of $19,086 from their combined amortized cost, compared to a fair value of $27,057 as of June 30, 2025, representing a $15,322 premium to its amortized cost. The increase in premium to amortized cost was driven by an improvement in RGIS’ financial performance.
Current wording
We hold two affiliate investments as of December 31, 2025 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $33,902, a premium of $21,067 from their combined amortized cost, compared to a fair value of $27,057 as of June 30, 2025, representing a $15,322 premium to its amortized cost. The increase in premium to amortized cost was driven by an improvement in RGIS’ financial performance.
Previous wording
With the non-control/non-affiliate investments, generally, there is less volatility related to our total investments because our equity positions tend to be smaller than with our control/affiliate investments, and debt investments are generally not as susceptible to large swings in value as equity investments. For debt investments, the fair value is generally limited on the high side to each loan’s par value, plus any prepayment premium that could be imposed. Note that seven of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Discovery Point Retreat, Druid City Infusion, LLC, Taos Footwear, Town & Country Holdings, Inc. (“Town & Country”), Verify Diagnostics LLC, and our CLO investment portfolio, have larger equity or convertible debt option positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of September 30, 2025, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to ten of our non-control/ non-affiliate investments, United Sporting Companies, Inc. (“USC”), Credit.com Holdings, LLC (“Credit.com”), Aventiv Technologies, LLC (“Aventiv”), First Brands Group, STG Distribution, LLC, Town & Country Holdings, Inc., Redstone Holdco 2 LP (“RSA”), Medical Solutions Holdings Inc., Rising Tide Holdings, Inc. (“West Marine”), and K&N HoldCo, LLC (“K&N”), are valued at discounts to amortized cost of $73,496, $66,317, $55,985, $50,268, $44,581, $38,046, $28,897, $26,962, $26,600, and $25,273, respectively.
Current wording
With the non-control/non-affiliate investments, generally, there is less volatility related to our total investments because our equity positions tend to be smaller than with our control/affiliate investments, and debt investments are generally not as susceptible to large swings in value as equity investments. For debt investments, the fair value is generally limited on the high side to each loan’s par value, plus any prepayment premium that could be imposed. Note that six of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Discovery Point Retreat, Druid City Infusion, LLC, Taos Footwear, Town & Country Holdings, Inc. (“Town & Country”), and Verify Diagnostics LLC, have larger equity or convertible debt option positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of December 31, 2025, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to nine of our non-control/ non-affiliate investments, Credit.com Holdings, LLC (“Credit.com”), First Brands Group, Aventiv Technologies, LLC (“Securus”), STG Distribution, LLC (f/k/a Reception Purchaser, LLC), Town & Country Holdings, Inc., Medical Solutions Holdings, Inc., Redstone Holdco 2 LP (“RSA”), Rising Tide Holdings, Inc. (“West Marine”), and K&N HoldCo, LLC (“K&N”), which are valued at discounts to amortized cost of $89,277, $68,794, $56,439, $45,138, $39,943, $32,657, $29,123, $26,898, and $25,428, respectively.
Previous wording
Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a premium of $102,072 to amortized cost as of September 30, 2025.
Current wording
Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a premium of $113,130 to amortized cost as of December 31, 2025.
Previous wording
As of September 30, 2025 and June 30, 2025, we had $678,827 and $570,532, respectively, available to us for borrowing under the Revolving Credit Facility, net of $683,579 and $856,322 outstanding borrowings as of the respective balance sheet dates. See Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.
Current wording
As of December 31, 2025 and June 30, 2025, we had $770,431 and $570,532, respectively, available to us for borrowing under the Revolving Credit Facility, net of $512,343 and $856,322 outstanding borrowings as of the respective balance sheet dates. See Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.
Previous wording
As of September 30, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 3.437% 2028 Notes was $300,000 and $300,000, respectively.
Current wording
As of December 31, 2025 and June 30, 2025, the outstanding aggregate principal amount of the 3.437% 2028 Notes was $279,750 and $300,000, respectively.
Previous wording
The 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. See Note 6. Public Notes within our consolidated financial statements for additional details.
Current wording
The 2026 Notes, the 3.364% 2026 Notes, the 3.437% 2028 Notes, and the 5.50% 2030 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. See Note 6. Public Notes within our consolidated financial statements for additional details.
Previous wording
On February 13, 2020, we entered into a new selling agent agreement with InspereX LLC (formerly known as “Incapital LLC”) (the “Selling Agent Agreement”), authorizing the issuance and sale from time to time of up to $1,000,000 of Prospect Capital InterNotes® (collectively with previously authorized selling agent agreements, the “InterNotes® Offerings”). Additional agents may be appointed by us from time to time in connection with the InterNotes® Offering and become parties to the Selling Agent Agreement.
Current wording
On February 13, 2020, we entered into a new selling agent agreement with InspereX LLC (formerly known as “Incapital LLC”) (as amended, the “Selling Agent Agreement”), authorizing the issuance and sale from time to time of up to $1,000,000 of Prospect Capital InterNotes® (collectively with previously authorized selling agent agreements, the “InterNotes® Offerings”). Additional agents may be appointed by us from time to time in connection with the InterNotes® Offering and become parties to the Selling Agent Agreement.
Previous wording
We have, from time to time, repurchased certain notes issued through the InterNotes® Offerings and, therefore, as of September 30, 2025 and June 30, 2025, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $651,836 and $647,232, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.
Current wording
Certain notes issued through the InterNotes® Offerings have been repaid and we have, from time to time, repurchased or redeemed such other notes and, therefore, as of December 31, 2025 and June 30, 2025, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $637,232 and $647,232, respectively. See Note 7. Prospect Capital InterNotes®within our consolidated financial statements for additional details.
Previous wording
During the three months ended September 30, 2025, our net asset value applicable to common shares increased by $16,018 and decreased by $0.11 per basic weighted average common share. Our net asset value applicable to common shareholders increased by $6,711 and $23,613 due to shares issued through reinvestment of dividends and conversion of preferred stock to common stock, respectively, but decreased per basic weighted average common share primarily due to $0.08 of dilution related to conversions of Preferred Stock at then-current market prices and discounted common share issuances through our common stock dividend reinvestment plan. Additionally, distributions to common and preferred stockholders of $89,160, or $0.20 per basic weighted average common share exceeded net investment income of $79,350, or $0.17 per basic weighted average common share, resulting in a net decrease of $0.03 per basic weighted average common share. Net realized and net change in unrealized losses of $4,496, or $0.01 per basic weighted average common share further decreased our net asset value applicable to common shares. The following table shows the calculation of net asset value per common share as of September 30, 2025 and June 30, 2025:
Current wording
During the six months ended December 31, 2025, our net asset value applicable to common shares decreased by $30,017 and decreased by $0.35 per basic weighted average common share. Net realized and net change in unrealized losses of $75,221, or $0.17 per basic weighted average common share decreased our net asset value applicable to common shares. While our net asset value applicable to common shareholders increased $13,332 and $45,186 due to shares issued through reinvestment of dividends and conversion of preferred stock to common stock, respectively, this resulted in a decrease of our per basic weighted average common share of $0.16 due to dilution related to conversions of Preferred Stock at then-current market prices and discounted common share issuances through our common stock dividend reinvestment plan. Additionally, distributions to common and preferred stockholders of $179,794, or $0.38 per basic weighted average common share exceeded net investment income of $170,238, or $0.36 per basic weighted average common share, resulting in a net decrease of $0.02 per basic weighted average common share. The following table shows the calculation of net asset value per common share as of December 31, 2025 and June 30, 2025:
Previous wording
Operating results for the three months ended September 30, 2025 and September 30, 2024 were as follows:
Current wording
Operating results for the three and six months ended December 31, 2025 and December 31, 2024 were as follows:
Previous wording
The weighted average interest rate earned on performing interest bearing assets increased to 10.20% for the three months ended September 30, 2025 from 10.04% for the three months ended September 30, 2024. The increase is primarily due to the reduction of Subordinated Structured Notes within our portfolio. Excluding Subordinated Structured Notes the weighted average interest rate earned on performing interest bearing assets decreased to 11.32% from 12.61% for the three months ended September 30, 2025 and 2024, respectively. The decrease is primarily due to a $28,042 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and declines in SOFR rates.
Current wording
The weighted average interest rate earned on performing interest bearing assets increased to 10.26% for the three months ended December 31, 2025 from 9.40% for the three months ended December 31, 2024. The increase is primarily due to the reduction of Subordinated Structured Notes within our portfolio. Excluding Subordinated Structured Notes the weighted average interest rate earned on performing interest bearing assets would have decreased to 11.39% from 11.87% for the three months ended December 31, 2025 and 2024, respectively. The decrease is primarily due to a $15,565 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and declines in SOFR rates. The weighted average interest rate earned on all interest bearing investments increased to 8.98% for the three months ended December 31, 2025 from 8.72% for the three months ended December 31, 2024. Excluding Subordinated Structured Notes the weighted average interest rate earned on all interest bearing assets decreased to 9.83% from 10.80% for the three months ended December 31, 2025 and December 31, 2024, respectively. The decrease is primarily due to a $15,565 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and a decline in SOFR rates.
Showing the first 40 of 71 pairs. Open the source sections for the rest.
Rearranged current paragraphs (17)
Current report — wording carried from elsewhere
On November 14, 2025, the Belnick, LLC (d/b/a The Ubique Group) loan agreement was amended, extending the maturity date of the First Lien Term Loan to May 14, 2029.
Current report — wording carried from elsewhere
As of December 31, 2025, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $903,670 and a fair value of $1,173,262. The fair value of $1,164,472 related to NPRC’s real estate portfolio was comprised of forty-four multi-family properties, four student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of December 31, 2025:
Current report — wording carried from elsewhere
On October 30, 2025, we issued approximately $167,637 in aggregate principal amount of 5.50% Series A Notes due 2030 (the “5.50% 2030 Notes”) that mature on December 31, 2030 and bear interest at a rate of 5.50% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2026. The 5.50% 2030 Notes are denominated in Israeli Shekels. After the deduction of offering discounts, fees and other offering expenses, we received net proceeds of approximately $159,531.
Current report — wording carried from elsewhere
The weighted average interest rate earned on performing interest bearing assets increased to 10.23% for the six months ended December 31, 2025 from 9.72% for the six months ended December 31, 2024. The increase is primarily due to the reduction of Subordinated Structured Notes within our portfolio. Excluding Subordinated Structured Notes the weighted average interest rate earned on performing interest bearing assets would have decreased to 11.35% from 12.24% for the six months ended December 31, 2025 and 2024, respectively. The decrease is primarily due to a $41,831 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and declines in SOFR rates. The weighted average interest rate earned on all interest bearing investments decreased to 9.02% for the six months ended December 31, 2025 from 9.09% for the six months ended December 31, 2024. Excluding Subordinated Structured Notes the weighted average interest rate earned on all interest bearing assets decreased to 9.89% from 11.25% for the six months ended December 31, 2025 and six months ended December 31, 2024, respectively. The decrease is primarily due to a $41,831 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and a decline in SOFR rates.
Current report — wording carried from elsewhere
Income recognized from dividend income, prepayment premium from early repayments, structuring fees and amendment fees related to specific loan positions and royalty, net profit and revenue interests are considered to be non-recurring income. For the six months ended December 31, 2025 and six months ended December 31, 2024, we recognized $32,021 and $28,460 of non-recurring income, respectively. The $3,561 increase in nonrecurring income during the six months ended December 31, 2025 is primarily due to the $18,186 increase in dividend income and offset by the $14,831 decrease in royalty and net revenue interests.
Current report — wording carried from elsewhere
Total gross and net base management fee was $66,549 and $75,675 for the six months ended December 31, 2025 and 2024, respectively. The decrease in total gross base management fee is directly related to a decrease in average total assets.
Current report — wording carried from elsewhere
For the six months ended December 31, 2025 and 2024, we incurred $17,269 and $29,312 of income incentive fees, respectively. This decrease was driven by a corresponding decrease in pre-incentive fee net investment income (net of preferred stock dividends) to $134,000 from $152,235 for the six months ended December 31, 2025, and 2024, respectively. No capital gains incentive fee has yet been incurred pursuant to the Investment Advisory Agreement.
Current report — wording carried from elsewhere
The allocation of net overhead expense from Prospect Administration was $23, net of the $5,500 litigation settlement proceeds discussed above, and $5,708 for the three months ended December 31, 2025 and 2024, respectively. Prospect Administration also received estimated payments of $331 and $805 directly from our portfolio companies for legal and tax services during the three months ended December 31, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Total operating expenses, excluding investment advisory fees, interest and credit facility expenses, and allocation of overhead from Prospect Administration, net of any expense reimbursements, were $7,546 and $11,324 for the six months ended December 31, 2025 and December 31, 2024, respectively. The decrease was primarily attributable to the receipt of $2,369 in litigation settlement proceeds discussed above, which we recorded as a reimbursement of previously expensed legal fees on behalf of a portfolio company, as well as other general and administrative expenses.
Current report — wording carried from elsewhere
The following table details net realized gains (losses) from investments for the six months ended December 31, 2025 and December 31, 2024:
Current report — wording carried from elsewhere
During the six months ended December 31, 2025, we recorded a net realized loss of $3,971 from the accretion to redemption value of redeemable securities. During the six months ended December 31, 2024, we recorded a net realized loss of $9,997 from the accretion to redemption value of redeemable securities.
Current report — wording carried from elsewhere
During thethree months ended December 31, 2025, we recorded a net realized loss of $1,388 from the conversions of preferred stock to common, and a gain of $40 from the redemptions of preferred stock to cash, resulting in a net realized loss of $1,349. During the three months ended December 31, 2024, we recorded a net realized loss of $946 from the conversions of preferred stock to common, which was offset by a gain of $40 from the redemptions of preferred stock to cash, resulting in a net realized loss of $906.
Current report — wording carried from elsewhere
(1)On September 29, 2025, First Brands Group, LLC and certain of its affiliates (“First Brands”) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.
Current report — wording carried from elsewhere
Credit Facility was $512,343. As of December 31, 2025, we had, net of unamortized discount and debt issuance costs, $706,103 outstanding on the Public Notes and $629,250 outstanding on the Prospect Capital InterNotes® (See “Capitalization” above).
Current report — wording carried from elsewhere
Articles Supplementary with the SDAT, reclassifying and designating an additional 1,000,000 shares of the Company’s authorized and unissued shares of common stock into shares of preferred stock as Convertible Preferred Stock.
Current report — wording carried from elsewhere
immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company; or (v) any transaction primarily for the purpose of changing our jurisdiction of incorporation or form of organization.
Current report — wording carried from elsewhere
Investments for which market quotations are readily available are valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The weighted average interest rate earned on all interest bearing investments decreased to 9.07% for the three months ended September 30, 2025 from 9.45% for the three months ended September 30, 2024. The decrease is primarily due to a $28,042 reduction in interest income recognized on our portfolio company investments, excluding Subordinated Structured Notes, as a result of repayments and a decline in SOFR rates. Excluding Subordinated Structured Notes the weighted average interest rate earned on all interest bearing assets decreased to 9.95% from 11.69% for the three months ended September 30, 2025 and September 30, 2024, respectively.
Previous report — wording carried elsewhere
On October 30, 2020, and as amended on February 18, 2022, October 7, 2022, and February 10, 2023, we entered into a Dealer Manager Agreement with InspereX LLC, pursuant to which InspereX LLC has agreed to serve as the Company’s agent and dealer manager for the Company’s offering of up to 10,000,000 shares, par value $0.001 per share, of preferred stock, with a liquidation preference of $25.00 per share. Such preferred stock will initially be issued in multiple series, including the 5.50%