PennantPark Investment Corporation Announces Financial Results for the Third Quarter Ended June 30, 2026
PennantPark Investment Corporation (NYSE: PNNT) reported third-quarter 2026 net investment income of $8.9 million, or $0.14 per share, with Core NII equal to GAAP NII.
Rhea-AI Summary
PennantPark Investment Corporation (NYSE: PNNT) reported third-quarter 2026 net investment income of $8.9 million, or $0.14 per share, with Core NII equal to GAAP NII. Net asset value totaled $428.0 million, or $6.56 per share, a 2.5% decline for the quarter.
The investment portfolio was $1,193.2 million, with a weighted average yield on debt investments of 11.0% and regulatory debt-to-equity of 1.29x. Distributions declared were $0.12 base and $0.12 supplemental per share. Net realized gains were $12.0 million, offset by $(16.2) million of net unrealized depreciation, resulting in a $4.5 million net increase in net assets from operations, or $0.07 per share. As of June 30, 2026, four portfolio companies were on non-accrual, representing 0.8% of fair value, and PSLF’s credit facility spread was reduced from SOFR+225 bps to SOFR+210 bps.
Positive
- Net realized gains Q3 2026 $12.0 million versus $(0.5) million in Q3 2025
- Net increase in net assets from operations $4.5 million, or $0.07 per share, for Q3 2026
- Portfolio yield weighted average 11.0% on interest-bearing debt investments as of June 30, 2026
- PSLF credit facility cost reduced spread cut from SOFR + 225 bps to SOFR + 210 bps in June 2026
- Truist Credit Facility borrowings reduced to $311.5 million from $426.5 million, with unused capacity rising to $223.5 million
- Distributions declared total $0.24 per share for the quarter (base $0.12 plus supplemental $0.12)
Negative
- Net investment income decline to $8.9 million ($0.14 per share) from $11.8 million ($0.18 per share) in Q3 2025
- Investment income lower at $24.8 million versus $29.6 million in Q3 2025, driven by smaller portfolio and lower debt yields
- Net unrealized depreciation $(16.2) million in Q3 2026 and $(85.4) million for the nine months ended June 30, 2026
- NAV per share down to $6.56, a quarterly decrease of 2.5%
- Portfolio size reduced to $1,193.2 million from $1,287.3 million as of September 30, 2025
- Non-accrual exposure higher at 2.5% of cost and 0.8% of fair value versus 1.3% and 0.1% previously
News Explained
As of June 30, $39.3 million cash and $223.5 million unused facility capacity supported operations, but capacity remained subject to borrowing restrictions.
PennantPark Investment Corporation reported unaudited third-quarter results for the period ended
The company says its liquidity comes primarily from operating cash flows, investment sales and repayments, securities offerings, and debt financings, and is used for investments, interest, fees, and other operating expenses.
During the quarter, PennantPark purchased
Details
News Market Reaction – PNNT
On Aug 11, the first trading day after this news, PNNT closed 0.86% above the previous close.
Data tracked by StockTitan Argus for the Aug 11 session.
Key Figures
- Investment Portfolio
- $1,193.2 million
- Quarter ended June 30, 2026
- NAV per Share
- $6.56
- Quarter ended June 30, 2026
- Quarterly NAV Change
- (2.5)%
- Quarter ended June 30, 2026
- Net Investment Income
- $8.9 million
- Three months ended June 30, 2026; $11.8 million in the prior-year quarter
- Net Investment Income per Share
- $0.14
- Three months ended June 30, 2026; $0.18 in the prior-year quarter
- Net Realized Gains
- $12.0 million
- Three months ended June 30, 2026
- Net Unrealized Change
- $(16.2) million
- Three months ended June 30, 2026
- Non-accrual Portfolio Companies
- 4 companies; 2.5% cost basis and 0.8% fair value
- As of June 30, 2026
Previous Earnings Reports
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Lower NAV, net investment income, and unrealized depreciation accompanied quarterly results.
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NAV declined and the company recorded annual net realized losses.
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Lower net investment income and non-accrual concerns accompanied portfolio results.
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Net investment income declined despite portfolio appreciation and reported distributions.
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Positive NAV and income metrics were offset by reported net realized losses.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
net asset value financial
non-accrual financial
non-gaap financial measure financial
regulatory debt to equity regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIAMI, Aug. 10, 2026 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE: PNNT) (the "Company") announced today financial results for the third quarter ended June 30, 2026.
HIGHLIGHTS
Quarter ended June 30, 2026 (unaudited)
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||
| Investment portfolio (1) | $ | 1,193.2 | ||
| Net assets | $ | 428.0 | ||
| Net asset value per share | $ | 6.56 | ||
| Quarterly change in net asset value per share | (2.5 | )% | ||
| Credit Facility | $ | 309.8 | ||
| 2026-2 Notes, net of unamortized deferred financing costs | $ | 164.6 | ||
| 2029 Notes, net of unamortized deferred financing costs | $ | 73.6 | ||
| Regulatory debt to equity | 1.29 | x | ||
| Weighted average yield on debt investments | 11.0 | % | ||
| Operating Results: | ||||
| Net investment income | $ | 8.9 | ||
| Net investment income per share | $ | 0.14 | ||
| Core net investment income per share (2) | $ | 0.14 | ||
| Distributions declared per share – base | $ | 0.12 | ||
| Distributions declared per share – supplemental | $ | 0.12 | ||
| Portfolio Activity: | ||||
| Purchases of investments (3) | $ | 77.0 | ||
| Sales and repayments of investments (3) | $ | 145.5 | ||
| PSLF Portfolio data: | ||||
| PSLF investment portfolio | $ | 1,278.4 | ||
| Purchases of investments | $ | 65.3 | ||
| Sales and repayments of investments | $ | 99.2 | ||
1. Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling 2. 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 3. Excludes U.S. Government Securities. | ||||
CONFERENCE CALL AT 12:00 P.M. EST ON AUGUST 11, 2026
PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.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 #3996420 or PennantPark Investment Corporation. 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
"The credit quality of our investment portfolio remains healthy, reinforcing our confidence in its continued resilience and reflecting our disciplined investment approach on the core middle market. We remain focused on selectively rotating out of our equity positions and redeploying the proceeds into income generating debt investments," said Art Penn, Chairman and CEO. "Our exposure to the Government Services and Defense sector continues to outperform. During the quarter we generated a meaningful realization from an equity co-investment in a leading defense technology company. We will continue to focus on Government Services and Defense, one of our key verticals, and look to increase our exposure over time."
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 Loan Fund, LLC
As of June 30, 2026, PSLF’s portfolio totaled
As of September 30, 2025, PSLF’s portfolio totaled
For the three months ended June 30, 2026, PSLF invested
For the three months ended June 30, 2025, PSLF invested
In June 2026, PSLF amended its revolving credit facility reducing the interest rate from SOFR plus 225 basis points to SOFR plus 210 basis points.
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
For the three and nine months ended June 30, 2026, the Truist Credit Facility had a net change in unrealized appreciation (depreciation) of
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 investment sales and repayments, income earned, proceeds of securities offerings and debt financings. Our primary use of funds from operations includes investments in portfolio companies and payments of interest expense, fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives and operations.
As of June 30, 2026 and September 30, 2025, we had
As of June 30, 2026 and September 30, 2025, we had cash and cash equivalents 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 provided cash of
DISTRIBUTIONS
During the three months ended June 30, 2026, we declared base distributions of
RECENT DEVELOPMENTS
In July 2026, PSLF partially refinanced its 2035 Asset-Backed Debt Securitization. As a result of this refinancing, the weighted average cost of capital decreased from SOFR plus
AVAILABLE INFORMATION
The Company makes available on its website its Quarterly Report on Form 10-Q filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share data) | ||||||||
| June 30, 2026 | ||||||||
| (unaudited) | September 30, 2025 | |||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 834,543 | $ | 857,415 | ||||
| Non-controlled, affiliated investments (amortized cost— | — | 4,891 | ||||||
| Controlled, affiliated investments (amortized cost— | 358,629 | 424,967 | ||||||
| Total investments (amortized cost— | 1,193,172 | 1,287,273 | ||||||
| Cash equivalents (cost— | 11,542 | 30,711 | ||||||
| Cash (cost— | 27,710 | 21,072 | ||||||
| Interest receivable | 5,549 | 5,261 | ||||||
| Receivable for investments sold | 19,594 | — | ||||||
| Distribution receivable | 4,415 | 4,694 | ||||||
| Due from affiliates | 98 | 168 | ||||||
| Prepaid expenses and other assets | 892 | 375 | ||||||
| Total assets | 1,262,972 | 1,349,554 | ||||||
| Liabilities | ||||||||
| Truist Credit Facility payable, at fair value (cost— | 309,755 | 425,477 | ||||||
| 2026 Notes payable (par— zero and | — | 149,473 | ||||||
| 2026 Notes-2 payable (par— | 164,573 | 163,933 | ||||||
| 2029 Notes payable (par — | 73,607 | — | ||||||
| Payable for investment purchased | 269,308 | 130,007 | ||||||
| Interest payable on debt | 4,046 | 6,281 | ||||||
| Distributions payable | 5,224 | — | ||||||
| Accounts payable and accrued expenses | 3,046 | 4,342 | ||||||
| Base management fee payable | 3,500 | 4,005 | ||||||
| Incentive fee payable | 1,881 | 2,086 | ||||||
| Total liabilities | 834,940 | 885,604 | ||||||
| Commitments and contingencies | ||||||||
| Net assets | ||||||||
| Common stock, 65,296,094 and 65,296,094 shares issued and outstanding, respectively | ||||||||
| Par value | 65 | 65 | ||||||
| Paid-in capital in excess of par value | 740,506 | 740,506 | ||||||
| Accumulated deficit | (312,539 | ) | (276,621 | ) | ||||
| Total net assets | $ | 428,032 | $ | 463,950 | ||||
| Total liabilities and net assets | $ | 1,262,972 | $ | 1,349,554 | ||||
| Net asset value per share | $ | 6.56 | $ | 7.11 | ||||
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except 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 | $ | 11,979 | $ | 12,659 | $ | 37,522 | $ | 46,411 | ||||||||
| Payment-in-kind | 1,866 | 1,569 | 6,374 | 4,554 | ||||||||||||
| Dividend income | 286 | 560 | 818 | 1,566 | ||||||||||||
| Other income | 276 | 617 | 661 | 1,319 | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest | 6,174 | 8,217 | 18,748 | 23,360 | ||||||||||||
| Payment-in-kind | — | 355 | — | 1,178 | ||||||||||||
| Dividend income | 4,184 | 5,578 | 12,830 | 16,008 | ||||||||||||
| Other income | — | — | — | 27 | ||||||||||||
| Total investment income | 24,765 | 29,555 | 76,953 | 94,423 | ||||||||||||
| Expenses: | ||||||||||||||||
| Interest and expenses on debt | 8,817 | 9,196 | 27,424 | 31,254 | ||||||||||||
| Base management fee | 3,500 | 3,889 | 11,021 | 12,174 | ||||||||||||
| Incentive fee | 1,881 | 2,502 | 3,862 | 7,682 | ||||||||||||
| General and administrative expenses | 1,050 | 1,050 | 2,900 | 3,450 | ||||||||||||
| Administrative services expenses | 450 | 450 | 1,350 | 1,400 | ||||||||||||
| Expenses before amendment costs, debt issuance costs and provision for taxes | 15,698 | 17,087 | 46,557 | 55,960 | ||||||||||||
| Provision for taxes on net investment income | 200 | 670 | 1,310 | 1,920 | ||||||||||||
| Credit facility amendment and debt issuance costs | — | — | 3,885 | 324 | ||||||||||||
| Total expenses | 15,898 | 17,757 | 51,752 | 58,204 | ||||||||||||
| Net investment income | 8,867 | 11,798 | 25,201 | 36,219 | ||||||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||||||
| Net realized gain (loss) on investments and debt: | ||||||||||||||||
| Non-controlled, non-affiliated investments | 12,056 | (475 | ) | 8,668 | (30,749 | ) | ||||||||||
| Non-controlled and controlled, affiliated investments | — | — | 61,986 | — | ||||||||||||
| Provision for taxes on realized gain on investments | (22 | ) | (1 | ) | (35 | ) | (50 | ) | ||||||||
| Net realized gain (loss) on investments and debt | 12,034 | (476 | ) | 70,619 | (30,799 | ) | ||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (19,487 | ) | (547 | ) | (19,944 | ) | 12,594 | |||||||||
| Non-controlled and controlled, affiliated investments | 3,329 | 347 | (65,504 | ) | 16,699 | |||||||||||
| Debt appreciation (depreciation) | (274 | ) | (2,972 | ) | 723 | (1,023 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) on investments and debt | (16,432 | ) | (3,172 | ) | (84,725 | ) | 28,270 | |||||||||
| Net realized and unrealized gain (loss) from investments and debt | (4,398 | ) | (3,648 | ) | (14,106 | ) | (2,529 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 4,469 | $ | 8,150 | $ | 11,095 | $ | 33,690 | ||||||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.07 | $ | 0.12 | $ | 0.17 | $ | 0.52 | ||||||||
| Net investment income per common share | $ | 0.14 | $ | 0.18 | $ | 0.39 | $ | 0.55 | ||||||||
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development company which primarily invests in U.S. middle-market private companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation 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 (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 PennantPark Investment Corporation files 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 SEC. PennantPark Investment Corporation 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 Investment Corporation | |
| (212) 905-1000 | |
| www.pennantpark.com |
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