PennantPark Floating Rate Capital Ltd. Announces Financial Results for the Third Quarter Ended June 30, 2026
PennantPark Floating Rate Capital (NYSE: PFLT) reported third-quarter 2026 net investment income of $25.9 million, or $0.26 per share, on an investment portfolio of $2.5 billion.
Rhea-AI Summary
PennantPark Floating Rate Capital (NYSE: PFLT) reported third-quarter 2026 net investment income of $25.9 million, or $0.26 per share, on an investment portfolio of $2.5 billion. Net asset value was $10.26 per share, a 2.0% decline for the quarter.
The portfolio was ~99% variable-rate and primarily first lien secured debt of $2,230.7 million, with four non-accruals representing 0.4% of fair value. PFLT declared base distributions of $0.2850 and supplemental distributions of $0.0033 per share. Net realized gains reached $37.3 million, partially offset by $56.6 million of net unrealized depreciation. Debt-to-equity was 1.56x, and in June 2026 the company issued $105 million of 2031 unsecured notes at a 7.375% effective rate, contributing to a 6.1% annualized weighted average cost of debt for the nine months.
Positive
- Net investment income $25.9 million ($0.26/share) for Q3 2026, up from $24.6 million ($0.25/share) a year earlier
- Investment income increased to $66.1 million in Q3 2026 from $63.5 million in Q3 2025
- Net realized gains of $37.3 million in Q3 2026 versus $(14.8) million a year earlier
- Non-accruals remain low at 0.4% of portfolio fair value across four portfolio companies
- Debt mix approximately 99% variable-rate, with $2,230.7 million in first lien secured debt as of June 30, 2026
- Weighted average cost of debt declined to 6.1% for the nine months ended June 30, 2026 from 6.9% in 2025
Negative
- Net asset value per share declined 2.0% during the quarter to $10.26
- Net unrealized depreciation of $(56.6) million in Q3 2026 and $(76.7) million for the nine months
- Portfolio size decreased to $2,504.7 million from $2,773.3 million at September 30, 2025
- Total expenses rose to $40.2 million in Q3 2026 from $38.9 million in Q3 2025, driven mainly by higher interest costs
- Net investment income for nine months fell to $78.3 million ($0.79/share) from $79.6 million ($0.88/share) a year earlier
- Non-accrual companies increased to four from three, with cost basis exposure rising to 1.0% of the portfolio
News Explained
As of June 30, no ATM shares were issued; reported liquidity included $100.8 million cash and $449.7 million unused facility capacity.
For the three and nine months ended
An ATM program lets an issuer sell new shares gradually into the open market at prevailing prices; the reported periods therefore show no use of that mechanism.
At
Details
News Market Reaction – PFLT
On Aug 11, the first trading day after this news, PFLT closed 1.08% above the previous close. Our momentum scanner recorded 2 alerts in the available session data.
Data tracked by StockTitan Argus for the Aug 11 session.
Key Figures
- Investment portfolio
- $2,504.7 million
- Quarter ended June 30, 2026
- NAV per share
- $10.26
- Quarter ended June 30, 2026
- Quarterly NAV change
- (2.0)%
- Quarter ended June 30, 2026
- Net investment income
- $25.9 million
- Three months ended June 30, 2026
- Net investment income per share
- $0.26
- Three months ended June 30, 2026
- Net unrealized depreciation
- $122.8 million
- As of June 30, 2026
- Non-accrual portfolio companies
- 4 companies
- As of June 30, 2026
- 2031 Notes issuance
- $105.0 million
- Issued in June 2026
Previous Earnings Reports
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Lower per-share metrics and planned dividend framework adjustment accompanied quarterly results.
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NAV declined while portfolio growth and new PSSL II activity were reported.
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NAV declined amid unrealized depreciation, leverage, and substantial ATM share issuance.
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Income, portfolio expansion, joint venture formation, and portfolio quality were highlighted.
-
NAV declined despite portfolio growth, liquidity, and variable-rate investment exposure.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
non-gaap financial measure financial
non-accrual financial
first lien secured debt financial
atm programs financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIAMI, Aug. 10, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) announced today its financial results for the third quarter ended June 30, 2026.
HIGHLIGHTS
Quarter ended June 30, 2026 (Unaudited)
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||||
| Investment portfolio (1)(2) | $ | 2,504.7 | ||||
| Net assets | $ | 1,017.6 | ||||
| Net asset value per share | $ | 10.26 | ||||
| Quarterly change in net asset value per share | (2.0 | )% | ||||
| Credit Facility | $ | 318.3 | ||||
| 2029 Notes, net of unamortized deferred financing costs | $ | 196.2 | ||||
| 2031 Notes, net of unamortized deferred financing costs | $ | 101.3 | ||||
| 2036-R Asset-Backed Debt, net of unamortized deferred financing costs | $ | 286.6 | ||||
| 2037 Asset-Backed Debt, net of unamortized deferred financing costs | $ | 387.3 | ||||
| 2038-R Asset-Backed Debt, net of unamortized deferred financing costs | $ | 284.9 | ||||
| Debt to equity | 1.56x | |||||
| Weighted average yield on debt investments at quarter-end | 9.8 | % | ||||
| Operating Results: | ||||||
| Net investment income | $ | 25.9 | ||||
| Net investment income per share (GAAP) | $ | 0.26 | ||||
| Core net investment income per share (3) | $ | 0.26 | ||||
| Distributions declared per share - base | $ | 0.2850 | ||||
| Distributions declared per share - supplemental | $ | 0.0033 | ||||
| Portfolio Activity: | ||||||
| Purchases of investments | $ | 212.1 | ||||
| Sales and repayments of investments | $ | 271.7 | ||||
| PSSL Portfolio data: | ||||||
| PSSL investment portfolio | $ | 1,139.9 | ||||
| Purchases of investments | $ | 37.3 | ||||
| Sales and repayments of investments | $ | 99.7 | ||||
| PSSL II Portfolio data: | ||||||
| PSSL II investment portfolio | $ | 320.1 | ||||
| Purchases of investments | $ | 9.8 | ||||
| Sales and repayments of investments | $ | 29.6 | ||||
________________________
| (1) | Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling | |
| (2) | Includes investments in PennatPark Senior Secured Loan Fund II LLC, or PSSL II, an unconsolidated joint venture, totaling | |
| (3) | Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended June 30, 2026, there were no one-time events resulting in | |
CONFERENCE CALL AT 9:00 A.M. ET ON AUGUST 11, 2026
The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, August 11, 2026 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (800) 330-6710 approximately 5-10 minutes prior to the call. International callers should dial (646) 769-9200. All callers should reference conference ID #2261035 or PennantPark Floating Rate Capital Ltd. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased to continue to find attractive risk adjusted returns in the core middle market with conservative portfolio company leverage, low PIK interest and covenant protections. Our exposure to the Government Services and Defense sector continues to outperform. We are delighted with the meaningful realization during the quarter from an equity co-investment in a leading defense technology company. The ramp of PSSL II continues on plan and should generate substantial earnings overtime,” said Art Penn, Chairman and CEO.
As of June 30, 2026, our portfolio totaled
As of September 30, 2025, our portfolio totaled
For the three months ended June 30, 2026, we invested
For the three months ended June 30, 2025 we invested
PennantPark Senior Secured Loan Fund I LLC
As of June 30, 2026, PSSL’s portfolio totaled
For the three months ended June 30, 2026, PSSL invested
For the three months ended June 30, 2025, PSSL invested
PennantPark Senior Secured Loan Fund II LLC
As of June 30, 2026, PSSL II’s portfolio totaled
For the three months ended June 30, 2026, PSSL II invested
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and nine months ended June 30, 2026 and 2025.
Investment Income
For the three and nine months ended June 30, 2026 investment income was
Expenses
For the three and nine months ended June 30, 2026, expenses totaled
Net Investment Income
For the three and nine months ended June 30, 2026 net investment income totaled
Net Realized Gains or Losses
For the three and nine months ended June 30, 2026 net realized gains (losses) totaled
Unrealized Appreciation or Depreciation on Investments and Debt
For the three and nine months ended June 30, 2026, we reported net change in unrealized appreciation (depreciation) on investments of
For the three and nine months ended June 30, 2026, our Credit Facility had a net change in unrealized appreciation (depreciation) of less than
Net Change in Net Assets Resulting from Operations
For the three and nine months ended June 30, 2026, net increase (decrease) in net assets resulting from operations totaled
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from cash flows from operations, including income earned, proceeds from investment sales and repayments, and proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
In June 2026, we issued
For the nine months ended June 30, 2026 and 2025, the annualized weighted average cost of debt, inclusive of the fee on the undrawn commitment on the Credit Facility, amendment costs and debt issuance costs, was
As of June 30, 2026 and September 30, 2025, we had cash and cash equivalents of
During the three and nine months ended June 30, 2026, we did not issue any shares of our common stock under the ATM Programs. During the three and nine months ended June 30, 2025, we issued 2,800,000 shares and 21,638,000 shares of our common stock under the ATM Programs, respectively, at an average price of
For the nine months ended June 30, 2026, our operating activities provided cash of
For the nine months ended June 30, 2025, our operating activities used cash of
DISTRIBUTIONS
During the three and nine months ended June 30, 2026 we declared distributions of
We will maintain a base dividend of
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC, and stockholders may find such report on its website at www.pennantpark.com.
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share data) | ||||||||
| June 30, 2026 | September 30, 2025 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 2,120,934 | $ | 2,491,360 | ||||
| Controlled, affiliated investments (amortized cost— | 383,724 | 281,968 | ||||||
| Total investments (amortized cost— | 2,504,658 | 2,773,328 | ||||||
| Cash equivalents (cost— | 50,725 | 40,729 | ||||||
| Cash (cost— | 50,083 | 81,959 | ||||||
| Interest receivable | 13,496 | 13,832 | ||||||
| Distributions receivable | 6,081 | — | ||||||
| Receivable for investments sold | 7,472 | 1,369 | ||||||
| Due from affiliates | 233 | 321 | ||||||
| Prepaid expenses and other assets | 2,094 | 2,143 | ||||||
| Total assets | 2,634,842 | 2,913,681 | ||||||
| Liabilities | ||||||||
| Credit Facility payable, at fair value (cost— | 318,310 | 683,837 | ||||||
| 2026 Notes payable, net (par— | — | 184,609 | ||||||
| 2029 Notes payable, net (par— | 196,212 | — | ||||||
| 2031 Notes payable, net (par— | 101,255 | — | ||||||
| 2036 Asset-Backed Debt, net (par— | — | 284,627 | ||||||
| 2036-R Asset-Backed Debt, net (par— | 286,609 | 265,366 | ||||||
| 2037 Asset-Backed Debt, net (par— | 387,266 | 358,331 | ||||||
| 2038-R Asset-Backed Debt, net (par— | 284,865 | — | ||||||
| Payable for investments purchased | — | 14,852 | ||||||
| Interest payable on debt | 19,662 | 19,172 | ||||||
| Distributions payable | 8,265 | 10,170 | ||||||
| Base management fee payable | 6,381 | 6,549 | ||||||
| Incentive fee payable | 6,476 | 6,883 | ||||||
| Accounts payable and accrued expenses | 1,320 | 2,166 | ||||||
| Deferred tax liability | 592 | 1,864 | ||||||
| Due to affiliates | — | 739 | ||||||
| Total liabilities | 1,617,213 | 1,839,165 | ||||||
| Net assets | ||||||||
| Common stock, 99,217,896 and 99,217,896 shares issued and outstanding, respectively Par value | 99 | 99 | ||||||
| Paid-in capital in excess of par value | 1,219,502 | 1,219,502 | ||||||
| Accumulated deficit | (201,972 | ) | (145,085 | ) | ||||
| Total net assets | $ | 1,017,629 | $ | 1,074,516 | ||||
| Total liabilities and net assets | $ | 2,634,842 | $ | 2,913,681 | ||||
| Net asset value per share | $ | 10.26 | $ | 10.83 | ||||
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Investment income: | ||||||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||||||
| Interest | $ | 50,133 | $ | 50,856 | $ | 157,398 | $ | 147,533 | ||||||||
| Dividend | 111 | 549 | 152 | 1,495 | ||||||||||||
| Other income | 816 | 786 | 1,964 | 2,901 | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest | 8,947 | 7,373 | 25,444 | 27,526 | ||||||||||||
| Dividend | 6,081 | 3,938 | 17,175 | 12,688 | ||||||||||||
| Other income | — | — | — | 306 | ||||||||||||
| Total investment income | 66,088 | 63,502 | 202,133 | 192,449 | ||||||||||||
| Expenses: | ||||||||||||||||
| Interest and expenses on debt | 25,029 | 22,547 | 76,321 | 67,437 | ||||||||||||
| Performance-based incentive fee | 6,476 | 5,396 | 19,573 | 19,146 | ||||||||||||
| Base management fee | 6,381 | 5,929 | 19,622 | 16,797 | ||||||||||||
| General and administrative expenses | 1,350 | 1,200 | 3,750 | 3,600 | ||||||||||||
| Administrative services expenses | 900 | 750 | 2,700 | 1,900 | ||||||||||||
| Expenses before amendment costs, debt issuance costs and provision for taxes | 40,136 | 35,822 | 121,966 | 108,880 | ||||||||||||
| Provision for taxes on net investment income | 50 | 200 | 300 | 650 | ||||||||||||
| Credit Facility amendment and debt issuance costs | — | 2,855 | 1,578 | 3,297 | ||||||||||||
| Total expenses | 40,186 | 38,877 | 123,844 | 112,827 | ||||||||||||
| Net investment income | 25,902 | 24,625 | 78,289 | 79,622 | ||||||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||||||
| Net realized gain (loss) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | 37,383 | (14,842 | ) | 31,304 | (14,456 | ) | ||||||||||
| Non-controlled and controlled, affiliated investments | — | — | — | 22,811 | ||||||||||||
| Provision for taxes on realized gain (loss) on investments | (49 | ) | 12 | (49 | ) | (82 | ) | |||||||||
| Debt extinguishment | — | — | (1,380 | ) | — | |||||||||||
| Net realized gain (loss) on investments and debt | 37,334 | (14,830 | ) | 29,875 | 8,273 | |||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (49,103 | ) | 16,233 | (45,360 | ) | 9,546 | ||||||||||
| Non-controlled and controlled, affiliated investments | (7,546 | ) | (6,351 | ) | (31,369 | ) | (49,401 | ) | ||||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | 966 | (303 | ) | 1,273 | 797 | |||||||||||
| Debt appreciation (depreciation) | 23 | (76 | ) | 27 | 15 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investments and debt | (55,660 | ) | 9,503 | (75,429 | ) | (39,043 | ) | |||||||||
| Net realized and unrealized gain (loss) from investments and debt | (18,326 | ) | (5,327 | ) | (45,554 | ) | (30,770 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 7,576 | $ | 19,298 | $ | 32,735 | $ | 48,852 | ||||||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.08 | $ | 0.19 | $ | 0.33 | $ | 0.54 | ||||||||
| Net investment income per common share | $ | 0.26 | $ | 0.25 | $ | 0.79 | $ | 0.88 | ||||||||
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC, a leading middle-market credit platform, and its affiliates, manage approximately
FORWARD-LOOKING STATEMENTS AND OTHER
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
| CONTACT: | Richard T. Allorto, Jr. |
| PennantPark Floating Rate Capital Ltd. | |
| (212) 905-1000 | |
| www.pennantpark.com |
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