PennantPark Investment Corporation Announces Financial Results for the Quarter Ended June 30, 2025
Rhea-AI Summary
PennantPark Investment Corporation (NYSE:PNNT) reported its financial results for Q3 2025, with net investment income of $11.8 million ($0.18 per share), down from $15.7 million ($0.24 per share) in Q3 2024. The company's portfolio totaled $1,171.6 million across 158 companies, with a weighted average yield on debt investments of 11.5%.
The portfolio composition includes 41% first lien secured debt, 11% U.S. Government Securities, 1% second lien secured debt, 16% subordinated debt, and 31% preferred and common equity. The company maintained a regulatory debt-to-equity ratio of 1.31x and declared distributions of $0.24 per share.
Notable concerns include four portfolio companies on non-accrual representing 2.8% and 0.7% of the portfolio on cost and fair value basis, respectively. Management emphasized their focus on rotating out of equity positions into debt investments to drive core net investment income growth.
[ "Portfolio had net unrealized appreciation of $40.4 million as of June 30, 2025", "90% of interest-bearing debt portfolio consisted of variable-rate investments, beneficial in rising rate environment", "Strong liquidity position with $70.5 million in cash and $183.5 million unused borrowing capacity", "Net increase in net assets from operations improved to $8.2 million ($0.12 per share) from $3.7 million year-over-year" ]Positive
- None.
Negative
- Net investment income decreased to $0.18 per share from $0.24 per share year-over-year
- Investment income declined to $29.6 million from $37.0 million in the same quarter last year
- Number of companies on non-accrual increased to four from two year-over-year
- Weighted average yield on debt investments decreased to 11.5% from 12.3% at fiscal year-end
News Market Reaction – PNNT
In the Aug 12 session, PNNT gained 0.82%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIAMI, Aug. 11, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE: PNNT) announced today its financial results for the third quarter ended June 30, 2025.
HIGHLIGHTS
Quarter ended June 30, 2025 (unaudited)
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||||
| Investment portfolio (1) | $ | 1,171.6 | ||||
| Net assets | $ | 480.6 | ||||
| Net asset value per share | $ | 7.36 | ||||
| Quarterly change in net asset value per share | (1.6 | )% | ||||
| Credit Facility | $ | 316.4 | ||||
| 2026 Notes, net of unamortized deferred financing costs | $ | 149.2 | ||||
| 2026-2 Notes, net of unamortized deferred financing costs | $ | 163.7 | ||||
| Regulatory debt to equity | 1.31x | |||||
| Weighted average yield on debt investments | 11.5 | % | ||||
| Operating Results: | ||||||
| Net investment income | $ | 11.8 | ||||
| Net investment income per share | $ | 0.18 | ||||
| Core net investment income per share (2) | $ | 0.18 | ||||
| Distributions declared per share | $ | 0.24 | ||||
| Portfolio Activity: | ||||||
| Purchases of investments (3) | $ | 87.7 | ||||
| Sales and repayments of investments (3) | $ | 132.2 | ||||
| PSLF Portfolio data: | ||||||
| PSLF investment portfolio | $ | 1,339.1 | ||||
| Purchases of investments | $ | 22.0 | ||||
| Sales and repayments of investments | $ | 71.4 | ||||
- Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling
$213.6 million , at fair value. - 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, 2025, there were no one-time events, resulting in
$0.18 of Core NII. - Excludes U.S. Government Securities.
CONFERENCE CALL AT 12:00 P.M. EST ON AUGUST 12, 2025
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 12, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8193. All callers should reference conference ID #3278368 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
“We are encouraged by the recent resurgence in deal activity, which we anticipate will result in increased new loan originations and potential exits of our equity positions. " said Art Penn, Chairman and CEO. "We remain focused on the plan to rotate out of our equity positions and redeploy that capital into debt investments which will drive growth in our core net investment income. We will continue to utilize the significant balance of spillover income to cover any shortfall between core net investment income and the dividend as we execute on the plan.”
As of June 30, 2025, our portfolio totaled
As of September 30, 2024, our portfolio totaled
For the three months ended June 30, 2025, we invested
For the three months ended June 30, 2024, we invested
PennantPark Senior Loan Fund, LLC
As of June 30, 2025, PSLF’s portfolio totaled
As of September 30, 2024, PSLF’s portfolio totaled
For the three months ended June 30, 2025, PSLF invested
For the three months ended June 30, 2024, PSLF invested
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three and nine months ended June 30, 2025 and 2024.
Investment Income
For the three and nine months ended June 30, 2025, investment income was
Expenses
For the three and nine months ended June 30, 2025, expenses totaled
Net Investment Income
For the three and nine months ended June 30, 2025, net investment income totaled
Net Realized Gains or Losses
For the three and nine months ended June 30, 2025, net realized gains (losses) totaled
Unrealized Appreciation or Depreciation on Investments and Debt
For the three and nine months ended June 30, 2025, we reported net change in unrealized appreciation (depreciation) on investments of
For the three and nine months ended June 30, 2025, 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, 2025, 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 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, 2025 and September 30, 2024, we had
As of June 30, 2025 and September 30, 2024, we had cash and cash equivalents of
For the nine months ended June 30, 2025, our operating activities provided cash of
For the nine months ended June 30, 2024, our operating activities used cash of
DISTRIBUTIONS
During the three and nine months ended June 30, 2025, we declared distributions of
RECENT DEVELOPMENTS
In July 2025, PSLF’s wholly-owned and consolidated subsidiary, PennantPark CLO VII, LLC ("CLO VII") partially refinanced its
Dividends Declared:
On July 14, 2025, PennantPark Investment Corporation declared the following distributions:
| Record Date | Payment Date | Distributions per Common Share | ||
| August 15, 2025 | September 2, 2025 | $ | 0.08 | |
| September 15, 2025 | September 30, 2025 | $ | 0.08 | |
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, 2025 | September 30, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 729,787 | $ | 910,323 | ||||
| Non-controlled, affiliated investments (amortized cost— | 7,484 | 33,423 | ||||||
| Controlled, affiliated investments (amortized cost— | 434,353 | 384,304 | ||||||
| Total investments (amortized cost— | 1,171,624 | 1,328,050 | ||||||
| Cash and cash equivalents (cost— | 70,546 | 49,861 | ||||||
| Interest receivable | 4,600 | 5,261 | ||||||
| Distribution receivable | 5,832 | 5,417 | ||||||
| Due from affiliates | 90 | 228 | ||||||
| Prepaid expenses and other assets | 196 | 269 | ||||||
| Total assets | 1,252,888 | 1,389,086 | ||||||
| Liabilities | ||||||||
| Truist Credit Facility payable, at fair value (cost— | $ | 316,384 | 460,361 | |||||
| 2026 Notes payable (par— | 149,247 | 148,571 | ||||||
| 2026 Notes-2 payable (par— | 163,720 | 163,080 | ||||||
| Payable for investment purchased | 124,720 | 100,096 | ||||||
| Interest payable on debt | 2,919 | 6,406 | ||||||
| Distributions payable | 5,224 | 5,224 | ||||||
| Base management fee payable | 3,889 | 4,297 | ||||||
| Accounts payable and accrued expenses | 3,698 | 4,053 | ||||||
| Incentive fee payable | 2,502 | 3,057 | ||||||
| Due to affiliate | — | 33 | ||||||
| Total liabilities | 772,303 | 895,178 | ||||||
| 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 | 743,968 | 743,968 | ||||||
| Accumulated deficit | (263,448 | ) | (250,125 | ) | ||||
| Total net assets | $ | 480,585 | $ | 493,908 | ||||
| Total liabilities and net assets | $ | 1,252,888 | $ | 1,389,086 | ||||
| Net asset value per share | $ | 7.36 | $ | 7.56 | ||||
| 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, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Investment income: | ||||||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||||||
| Interest | $ | 12,659 | $ | 17,383 | $ | 46,411 | $ | 61,353 | ||||||||
| Payment-in-kind | 1,569 | 1,904 | 4,554 | 2,093 | ||||||||||||
| Dividend income | 560 | 977 | 1,566 | 2,292 | ||||||||||||
| Other income | 617 | 392 | 1,319 | 2,595 | ||||||||||||
| From non-controlled, affiliated investments: | ||||||||||||||||
| Payment-in-kind | — | — | — | 347 | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest | 8,217 | 7,966 | 23,360 | 19,389 | ||||||||||||
| Payment-in-kind | 355 | 995 | 1,178 | 2,484 | ||||||||||||
| Dividend income | 5,578 | 7,387 | 16,008 | 16,765 | ||||||||||||
| Other income | — | — | 27 | — | ||||||||||||
| Total investment income | 29,555 | 37,004 | 94,423 | 107,318 | ||||||||||||
| Expenses: | ||||||||||||||||
| Interest and expenses on debt | 9,196 | 11,482 | 31,254 | 32,906 | ||||||||||||
| Base management fee | 3,889 | 4,216 | 12,174 | 12,357 | ||||||||||||
| Incentive fee | 2,502 | 3,345 | 7,682 | 9,684 | ||||||||||||
| General and administrative expenses | 1,050 | 1,030 | 3,450 | 3,623 | ||||||||||||
| Administrative services expenses | 450 | 450 | 1,400 | 1,189 | ||||||||||||
| Expenses before amendment costs, debt issuance costs and provision for taxes | 17,087 | 20,523 | 55,960 | 59,759 | ||||||||||||
| Provision for taxes on net investment income | 670 | 735 | 1,920 | 1,902 | ||||||||||||
| Credit facility amendment and debt issuance costs | — | — | 324 | — | ||||||||||||
| Net expenses | 17,757 | 21,258 | 58,204 | 61,661 | ||||||||||||
| Net investment income | 11,798 | 15,746 | 36,219 | 45,657 | ||||||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||||||
| Net realized gain (loss) on investments and debt: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (475 | ) | (1,590 | ) | (30,749 | ) | (444 | ) | ||||||||
| Non-controlled and controlled, affiliated investments | — | (5,305 | ) | — | (35,474 | ) | ||||||||||
| Provision for taxes on realized gain on investments | (1 | ) | — | (50 | ) | (177 | ) | |||||||||
| Net realized gain (loss) on investments and debt | (476 | ) | (6,895 | ) | (30,799 | ) | (36,095 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (547 | ) | (1,614 | ) | 12,594 | (15,412 | ) | |||||||||
| Non-controlled and controlled, affiliated investments | 347 | (3,483 | ) | 16,699 | 38,592 | |||||||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | — | — | — | (680 | ) | |||||||||||
| Debt appreciation (depreciation) | (2,972 | ) | (8 | ) | (1,023 | ) | (1,578 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on investments and debt | (3,172 | ) | (5,105 | ) | 28,270 | 20,922 | ||||||||||
| Net realized and unrealized gain (loss) from investments and debt | (3,648 | ) | (12,000 | ) | (2,529 | ) | (15,173 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 8,150 | $ | 3,746 | $ | 33,690 | $ | 30,484 | ||||||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.12 | $ | 0.06 | $ | 0.52 | $ | 0.47 | ||||||||
| Net investment income per common share | $ | 0.18 | $ | 0.24 | $ | 0.55 | $ | 0.70 | ||||||||
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation, or the Company, is a business development company that invests primarily in U.S. middle-market 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 is a leading middle market credit platform, managing approximately
FORWARD-LOOKING STATEMENTS
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 |
