Saratoga Investment Corp. Announces 2026 Fiscal Year and Fourth Quarter Financial Results
Rhea-AI Summary
Saratoga Investment (NYSE: SAR) reported fiscal 2026 results for year and quarter ended February 28, 2026. Key outcomes include AUM $1.109B (+13.4% YoY), NAV $396.2M (+0.9% YoY), annual ROE 9.1%, net Q4 originations of $101.1M, and total dividends of $3.74 per share. The quarter included $9.6M of portfolio markdowns, a decline in cash to $21.8M, and adjusted NII of $0.61 per share excluding excise taxes. Two investments are on non-accrual, representing 0.2% of fair value and 1.2% of cost.
Positive
- AUM +13.4% YoY to $1.109 billion
- Annual ROE 9.1%, above BDC industry average of 4.3%
- Net Q4 originations $101.1M (135.1M new originations; five new platforms)
- NAV +0.9% YoY, increase of $3.5 million to $396.2 million
- Total dividends $3.74 per share for fiscal 2026
Negative
- Total investment income down 15.5% YoY to $125.7 million
- NAV per share declined from $25.86 to $24.42 year-over-year
- Quarter-end cash fell to $21.8M from $169.6M last quarter
- Portfolio marked down $9.6M during the quarter
News Market Reaction – SAR
In the May 6 session, SAR declined 3.10%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Quarterly earnings | Positive | +1.6% | Q3 2026 results with higher NAV, NII per share and strong ROE. |
| Oct 07 | Quarterly earnings | Positive | -4.7% | Q2 2026 results showing higher NAV and strong ROE but softer NII. |
| Jul 08 | Quarterly earnings | Positive | -2.9% | Q1 2026 update with higher adjusted NII per share and ROE outperformance. |
| May 07 | Annual earnings | Positive | -7.9% | Fiscal 2025 results with higher NAV and income but lower AUM. |
| Jan 08 | Quarterly earnings | Positive | -1.3% | Q3 2025 earnings with NII growth, strong yields and liquidity. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often seen the stock trade lower despite generally positive fundamental updates, with only one of the last five earnings reactions showing a positive alignment.
Over the past five earnings releases through Jan 2026, Saratoga Investment consistently highlighted strong ROE versus BDC peers, high first-lien exposure, and solid credit quality. AUM has trended near or above $960M–$1.0B, with NAV rising into the $392.7M–$413.2M range and adjusted NII per share generally healthy. Despite this, four of the five earnings events saw negative next-day price moves, indicating a pattern of cautious or skeptical market reactions to results.
Key Terms
business development company financial
non-accrual financial
collateralized loan obligation financial
joint venture financial
first lien debt financial
second lien term loans financial
unsecured loans financial
net investment income financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Reports
Annual ROE of
Net Deployments of
Non-Accruals Remain Low at
NEW YORK, May 05, 2026 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE: SAR) (“Saratoga Investment” or “the Company”), a business development company (“BDC”), today announced financial results for its 2026 fiscal year and fourth quarter ended February 28, 2026.
Summary Financial Information
The Company’s summarized financial information is as follows:
| For the years ended and as of | |||||
| ($ in thousands, except per share) | February 28, 2026 | February 28, 2025 | February 29, 2024 | ||
| Assets Under Management (AUM) | 1,109,134 | 978,078 | 1,138,794 | ||
| Net Asset Value (NAV) | 396,156 | 392,666 | 370,224 | ||
| NAV per share | 24.42 | 25.86 | 27.12 | ||
| Total Investment Income | 125,713 | 148,855 | 143,720 | ||
| Net Investment Income (NII) per share | 2.32 | 3.81 | 4.49 | ||
| Adjusted NII per share | 2.37 | 3.81 | 4.10 | ||
| Earnings per share | 2.31 | 2.02 | 0.71 | ||
| Dividends per share (record date) | 3.74* | 3.30** | 2.82 | ||
| Return on Equity – last twelve months | |||||
| Originations | 309,502 | 168,077 | 246,101 | ||
| Repayments | 178,890 | 312,113 | 30,271 | ||
* Actual dividend of
** Actual dividend of
| For the three months ended and as of | ||||||
| ($ in thousands, except per share) | February 28, 2026 | November 30, 2025 | February 28, 2025 | |||
| Assets Under Management (AUM) | 1,109,134 | 1,015,950 | 978,078 | |||
| Net Asset Value (NAV) | 396,156 | 413,207 | 392,666 | |||
| NAV per share | 24.42 | 25.59 | 25.86 | |||
| Total Investment Income | 31,123 | 31,646 | 31,295 | |||
| Net Investment Income (NII) per share | 0.48 | 0.61 | 0.56 | |||
| Adjusted NII per share | 0.53 | 0.61 | 0.56 | |||
| Earnings per share | (0.16) | 0.74 | (0.05) | |||
| Dividends per share (record date) | 1.00* | 1.09** | 0.72 | |||
| Return on Equity | – last twelve months | |||||
| – annualized quarter | ( | ( | ||||
| Originations | 135,139 | 72,122 | 41,802 | |||
| Repayments | 34,020 | 54,943 | 15,867 | |||
* Actual dividend of
** Actual dividend of
Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment, commented, “This quarter’s results reflect continued execution of our core objectives, highlighted by net positive originations including five new portfolio companies added during the quarter, sustained long-term AUM growth, and a strong annual return on equity of
“Continuing our track record of strong dividend distributions, we recently announced a base monthly dividend of
“During the quarter, we saw a meaningful increase in deal activity, consistent with a pick-up in M&A volume despite persistent sector headwinds and the cautious sentiment that has taken hold across the broader private credit sector. Market dynamics continued to be very competitive. While our portfolio saw multiple debt repayments in Q4, our strong origination activity more than offset those exits, resulting in net originations of
“Saratoga’s overall performance is reflected in our key performance indicators this past quarter and year, including: (i) annual ROE of
“NAV per share is down this year from
“Our total
“During the quarter, our core BDC net interest margin decreased from
“Our quarter-end cash position decreased meaningfully from
“Our overall credit quality remained solid this quarter, with
Mr. Oberbeck concluded, “As we kick off our fiscal year 2027, the macroeconomic environment remains complex, shaped by geopolitical tensions, evolving U.S. tariff policies, and concerns about AI and software. All of these aspects, combined with an uncertain interest rate environment, combine to create elevated volatility and continued uncertainty on credit spreads across the private credit sector. While negative press and sentiment weighs on the public BDC market, at this time it appears that these very negative perceptions are not commensurate with the current market performance in the broader private credit market. As we continue to focus on underwriting strong credit and long-term growth, we continue to grow our team, adding three new Associates and two new Managing Director hires this year, including most recently, David DeSantis, who joined Saratoga as Chief Operating Officer and Senior Managing Director.”
“We are encouraged by the recent improvement in M&A activity and continued strength of our pipeline. Our portfolio is significantly positioned in senior secured, first lien loans in strong businesses. With our experienced management team, disciplined underwriting, and strong balance sheet, we are confident in our ability to grow our portfolio responsibly and deliver durable, risk-adjusted returns to our shareholders over the long term.”
Discussion of Financial Results for the Year and Quarter ended February 28, 2026:
- AUM as of February 28, 2026 was
$1.109 billion , an increase of13.4% from$978.1 million as of February 28, 2025, and an increase of9.2% from$1.016 billion as of last quarter. - Total investment income for the year ended February 28, 2026, was
$125.7 million , a decrease of$23.2 million , or15.5% , from$148.9 million in the year ended February 28, 2025. For the three months ended February 28, 2026, total investment income was$31.1 million , a decrease of$0.2 million , or0.5% , from$31.3 million for the quarter ended February 28, 2025, and a decrease of$0.5 million , or1.7% , as compared to$31.6 million for the quarter ended November 30, 2025. This quarter’s investment income decrease as compared to prior quarters was primarily due to SOFR base rate decreases over the past quarter and year, partially offset by higher average AUM levels this quarter. Investment income reflects a weighted average interest rate on the core BDC portfolio of10.4% , down from10.6% as of November 30, 2025 and11.5% as of February 28, 2025, with the yield reduction primarily reflecting SOFR base rate decreases over the past year, but also indicative of recent tight spreads experienced on new originations versus historically higher spreads on repaid assets. - Total expenses for the fiscal year ended February 28, 2026, excluding interest and debt financing expenses, base management fees and incentive fees, and income and excise taxes, increased
$1.7 million from$9.3 million to$11.0 million as compared to fiscal year 2025. Total expenses for the quarter ended February 28, 2026, excluding interest and debt financing expenses, base management fees and incentive fees, and income and excise taxes, increased$1.0 million to$2.4 million as compared to$1.4 million for the quarter ended February 28, 2025, and decreased$0.9 million as compared to$3.3 million for the quarter ended November 30, 2025. This represented0.8% of average total assets on an annualized basis, unchanged from both last quarter and last year. - Adjusted NII for the year ended February 28, 2026, was
$37.5 million , a decrease of$15.5 million , or29.2% , from$53.0 million in the previous year. Adjusted NII for the quarter ended February 28, 2026, was$8.5 million , an increase of$0.5 million , or6.2% , from$8.0 million in the quarter ended February 28, 2025, and a decrease of$1.3 million , or12.8% from$9.8 million in the quarter ended November 30, 2025. The decrease from last quarter, in addition to the abovementioned interest and operating expense changes, reflects the impact of the$1.7 million excise tax paid during this quarter, partially offset by the reduction in interest expense on borrowings resulting from the repayment of$20 million private bonds during the quarter. - NII Yield as a percentage of average net asset value was
9.2% for the year ended February 28, 2026. Adjusted for the incentive fee accrual related to net capital gains and double interest expense and amortization of deferred financing costs related to the7.25% 2030 Notes and the7.5% SAV Notes during the period while the4.375% 2026 Notes were already issued and outstanding, the NII Yield was9.3% . In comparison, adjusted NII Yield was14.1% for the year ended February 28, 2025. For the quarter ended February 28, 2026, NII Yield as a percentage of average net asset value was7.7% . Adjusted NII Yield was8.4% , as compared to adjusted NII Yield of8.4% last year, and9.5% last quarter. - NAV was
$396.2 million as of February 28, 2026, an increase of$3.5 million from$392.7 million as of February 28, 2025, and a decrease of$17.0 million from$413.2 million as of November 30, 2025. - NAV per share was
$24.42 as of February 28, 2026, compared to$25.86 as of February 28, 2025, and$25.59 as of November 30, 2025. This quarter included the additional$0.25 per share special dividend payment. Excluding this additional dividend, NAV per share would have been$24.67 per share. - Return on equity (“ROE”) for the last twelve months ended February 28, 2026, was
9.1% , up from7.5% for the comparable period last year, and down from9.7% for the twelve months ended November 30, 2025. ROE on an annualized basis for the quarter ended February 28, 2026 was (2.6)%. - The weighted average common shares outstanding for the quarter ended February 28, 2026 was 16.2 million, increasing from 16.1 million and 14.5 million for the quarters ended November 30, 2025 and February 28, 2025, respectively.
Portfolio and Investment Activity for the Year and Quarter Ended February 28, 2026
- Fair value of Saratoga Investment’s portfolio was
$1.109 billion , excluding$21.8 million in cash and cash equivalents, principally invested in 49 portfolio companies, one collateralized loan obligation fund (the “CLO”), one joint venture fund (the “JV”), and 24 distinct BB and BBB CLO debt investments. - Cost of investments made during the year ended February 28, 2026, were
$309.5 million , including 9 investments in new portfolio companies and 32 follow-on investments. Cost of investments made during the quarter ended February 28, 2026, were$135.1 million , including five investments in new portfolio companies and 15 follow-on investments. - Principal repayments during the year ended February 28, 2026, were
$178.9 million . Principal repayments during the quarter ended February 28, 2026, were$34.0 million , including one equity realization, two full debt repayments and five partial repayments, plus amortization.- For the quarter ended February 28, 2026, the fair value of the portfolio decreased by
$9.6 million of net realized losses and unrealized depreciation, consisting of (i) net unrealized depreciation of$3.1 million in the Non-CLO portfolio, including Pepper Palace and Zollege, (ii) net unrealized depreciation of$6.2 million in the CLO, JV, and BB portfolio, and (iii) net realized losses of$0.3 million , consisting of the realization of the prior Roscoe equity write-down of$0.5 million , partially offset by the receipt of an escrow payment on Hema Terra generating a$0.2 million realized gain. - Since taking over management of the BDC in 2010, the Company has generated
$1.37 billion of repayments and sales of investments originated by Saratoga Investment, generating a gross unlevered IRR of14.9% . Total investments originated by Saratoga are$2.53 billion in 130 portfolio companies.
- For the quarter ended February 28, 2026, the fair value of the portfolio decreased by
- The overall portfolio composition consisted of
82.1% of first lien term loans,3.9% of second lien term loans,1.5% of unsecured loans,4.9% of structured finance securities, and7.6% of common equity. - The weighted average current yield on Saratoga Investment’s portfolio based on current fair values was
9.6% , which was comprised of a weighted average current yield of10.2% on first lien term loans,11.9% on second lien term loans,10.9% on unsecured loans,11.6% on structured finance securities and0.0% on equity interests.
Liquidity and Capital Resources
Outstanding Borrowings:
- On April 10, 2026, we issued
$25.0 million in aggregate principal amount of7.25% fixed-rate notes due 2029 (the “7.25% 2029 Notes”) for net proceeds of approximately$24.5 million , based on an offering price of98.00% per Note. Estimated offering costs incurred were approximately$0.2 million . Interest on the7.25% 2029 Notes is paid quarterly on February 28, May 31, August 31 and November 30 of each year, beginning on May 31, 2026. The Notes will mature on April 10, 2029, and may be extended to October 10, 2029, at Saratoga Investment’s sole discretion. The Notes may be redeemed at our option, in whole or in part at any time, or from time to time on or after April 10, 2027, at the redemption price of par, plus accrued and unpaid interest. Pursuant to the terms of the Notes Purchase Agreement, upon the mutual agreement of Saratoga Investment and the Purchaser, we may issue additional Notes for sale in subsequent offerings up to a maximum of$25.0 million by July 10, 2026. - As of February 28, 2026 Saratoga Investment had a combined
$70.0 million in outstanding combined borrowings under its$85.0 million senior secured revolving credit facility with Valley National Bank and its$75.0 million senior secured revolving credit facility with Live Oak. - At the same time, Saratoga Investment had
$84.0 million of SBA debentures in its SBIC II license outstanding,$76.0 million of SBA debentures in its SBIC III license outstanding,$369.4 million of listed baby bonds issued,$75.0 million of unsecured unlisted institutional bond issuances, three unlisted issuances of$65.0 million in total, and an aggregate of$21.8 million in cash and cash equivalents.
Undrawn Borrowing Capacity:
- With
$90.0 million available under the two credit facilities and$21.8 million of cash and cash equivalents as of February 28, 2026, Saratoga Investment has a total of$111.8 million of undrawn credit facility borrowing capacity and cash and cash equivalents to be used for new investments or to support existing portfolio companies in the BDC and the SBIC. - In addition, Saratoga Investment has
$99.0 million in undrawn SBA debentures available from its existing SBIC III license. - Availability under the Valley National Bank and Live Oak credit facilities can change depending on portfolio company performance and valuation. In addition, certain follow-on investments in SBIC II and the BDC will not qualify for SBIC III funding. Overall outstanding SBIC debentures are limited to
$350.0 million across all active SBIC licenses. - Total Saratoga Investment undrawn borrowing capacity is therefore
$210.8 million as of February 28, 2026. - As of February 28, 2026, Saratoga Investment had
$80.3 million of committed undrawn lending commitments and$72.7 million of discretionary funding commitments.
Additionally:
- Saratoga Investment has an active equity distribution agreement with Ladenburg Thalmann & Co. Inc., Raymond James and Associates, Inc, Lucid Capital Markets, LLC and Compass Point Research and Trading, LLC, through which the Company may offer for sale, from time to time, up to
$300.0 million of common stock through an ATM offering.- As of February 28, 2026, Saratoga Investment has sold 8,591,915 shares for gross proceeds of
$227.2 million at an average price of$26.37 for aggregate net proceeds of$225.4 million (net of transaction costs). - During the three months ended February 28, 2026, Saratoga Investment did not sell any shares through its ATM Program.
- During the year ended February 26, 2026, Saratoga Investment sold 747,199 shares for gross proceeds of
$19.3 million at an average price of$25.83 for aggregate net proceeds of$19.3 million (net of transaction costs).
- As of February 28, 2026, Saratoga Investment has sold 8,591,915 shares for gross proceeds of
Dividend
On March 17, 2026, Saratoga Investment announced that its Board of Directors declared a base quarterly dividend of
| Month | Amount Per Share | Record Date | Payment Date | ||||
| March 2026 | April 7, 2026 | April 23, 2026 | |||||
| April 2026 | May 5 2026 | May 21, 2026 | |||||
| May 2026 | June 4, 2026 | June 23, 2026 | |||||
Shareholders have the option to receive payment of dividends in cash or receive shares of common stock, pursuant to the Company’s DRIP. Shares issued under the Company’s DRIP are issued at a
The following table highlights Saratoga Investment’s dividend history over the past five years:
| Period (Fiscal Year ends Feb) | Base Dividend Per Share | Special Dividend Per Share | Total Dividend Per Share | ||
| Fiscal Q1 2027 (May 2026) | - | ||||
| Fiscal Q1 2027 (April 2026) | - | ||||
| Fiscal Q1 2027 (March 2026) | - | ||||
| Total Declared in Fiscal 2027 YTD | $0.75 | - | $0.75 | ||
| Full Year Fiscal 2026 | $3.00 | $0.25 | $3.25 | ||
| Full Year Fiscal 2025 | $2.96 | $0.35 | $3.31 | ||
| Full Year Fiscal 2024 | $2.86 | - | $2.86 | ||
| Full Year Fiscal 2023 | $2.44 | - | $2.44 | ||
Share Repurchase Plan
As of February 28, 2026, the Company purchased 1,037,698 shares of common stock, at the average price of
Previously, in fiscal year 2015, the Company announced the approval of an open market share repurchase plan (the “Share Repurchase Plan”) that allows it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published financial statements. Since then, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan, most recently to 1.7 million shares of common stock. On January 6, 2026, its Board of Directors extended the Share Repurchase Plan for another year to January 15, 2027.
2026 Fiscal Year and Fourth Quarter Conference Call/Webcast Information
| When: | Wednesday, May 6, 2026 |
| 1:00 p.m. Eastern Time (ET) | |
| How: | Webcast: Interested parties may access a live webcast of the call and find the Full Year and Q4 2026 presentation by going to the “Events & Presentations” section of Saratoga Investment’s investor relations website https://ir.saratogainvestmentcorp.com. A replay of the webcast will also be available for a limited time at Events & Presentations page. |
| Call: | To access the call by phone, please go to this link Registration Link and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time |
About Saratoga Investment Corp.
Saratoga Investment is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses. The Company invests primarily in senior and unitranche leveraged loans and mezzanine debt, and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Saratoga Investment’s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments. Saratoga Investment has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and is externally managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies. Saratoga Investment Corp. owns two active SBIC-licensed subsidiaries, having surrendered its first license after repaying all debentures for that fund following the end of its investment period and subsequent wind-down. Furthermore, it manages a
Forward Looking Statements
This press release contains historical information and forward-looking statements with respect to the business and investments of the Company, including, but not limited to, the statements about future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition 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, but not limited to: changes in the markets in which we invest; changes in the financial, capital, and lending markets; an economic downturn or a recession and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of interest rate volatility on our business and our portfolio companies; the uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and the global economy; the impact of supply chain constraints and labor shortages on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests, as well as those described from time to time in our filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which it is made. The Company undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2026 and subsequent filings, including the “Risk Factors” sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements.
Contacts:
Saratoga Investment Corporation
535 Madison Avenue, 4th Floor
New York, NY 10022
Henri Steenkamp
Chief Financial Officer
Saratoga Investment Corp.
212-906-7800
Lena Cati
The Equity Group Inc.
212-836-9611
Val Ferraro
The Equity Group Inc.
212-836-9633
Financials
| Saratoga Investment Corp. | ||||||||
| Consolidated Statements of Assets and Liabilities | ||||||||
| February 28, 2026 | February 28, 2025 | |||||||
| ASSETS | ||||||||
| Investments at fair value | ||||||||
| Non-control/Non-affiliate investments (amortized cost of | $ | 1,016,247,566 | $ | 897,660,110 | ||||
| Affiliate investments (amortized cost of | 52,710,911 | 40,547,432 | ||||||
| Control investments (amortized cost of | 40,175,335 | 39,870,208 | ||||||
| Total investments at fair value (amortized cost of | 1,109,133,812 | 978,077,750 | ||||||
| Cash and cash equivalents | 1,680,070 | 148,218,491 | ||||||
| Cash and cash equivalents, reserve accounts | 20,105,683 | 56,505,433 | ||||||
| Interest receivable (net of reserve of | 7,314,053 | 7,477,468 | ||||||
| Management fee receivable | 249,720 | 314,193 | ||||||
| Other assets | 781,766 | 950,522 | ||||||
| Total assets | $ | 1,139,265,104 | $ | 1,191,543,857 | ||||
| LIABILITIES | ||||||||
| Revolving credit facilities | $ | 70,000,000 | $ | 52,500,000 | ||||
| Deferred debt financing costs, revolving credit facilities | (1,670,816 | ) | (1,254,516 | ) | ||||
| SBA debentures payable | 160,000,000 | 170,000,000 | ||||||
| Deferred debt financing costs, SBA debentures payable | (3,888,087 | ) | (4,041,026 | ) | ||||
| - | 20,000,000 | |||||||
| Discount on | - | (9,055 | ) | |||||
| Deferred debt financing costs, | - | (374 | ) | |||||
| - | 12,000,000 | |||||||
| Discount on | - | (68,589 | ) | |||||
| Deferred debt financing costs, | - | (8,345 | ) | |||||
| - | 5,000,000 | |||||||
| Deferred debt financing costs, | - | (19,685 | ) | |||||
| - | 175,000,000 | |||||||
| Premium on | - | 287,848 | ||||||
| Deferred debt financing costs, | - | (865,593 | ) | |||||
| 75,000,000 | 75,000,000 | |||||||
| Discount on | (108,898 | ) | (213,424 | ) | ||||
| Deferred debt financing costs, | (344,393 | ) | (688,786 | ) | ||||
| 15,000,000 | 15,000,000 | |||||||
| Deferred debt financing costs, | (130,839 | ) | (202,144 | ) | ||||
| 105,500,000 | 105,500,000 | |||||||
| Discount on | (48,361 | ) | (87,295 | ) | ||||
| Deferred debt financing costs, | (823,774 | ) | (1,524,089 | ) | ||||
| 46,000,000 | 46,000,000 | |||||||
| Deferred debt financing costs, | (580,514 | ) | (927,484 | ) | ||||
| 60,375,000 | 60,375,000 | |||||||
| Deferred debt financing costs, | (748,873 | ) | (1,156,234 | ) | ||||
| 57,500,000 | 57,500,000 | |||||||
| Deferred debt financing costs, | (866,230 | ) | (1,273,134 | ) | ||||
| 50,000,000 | - | |||||||
| Discount on | (435,318 | ) | - | |||||
| Deferred debt financing costs, | (775,165 | ) | - | |||||
| 100,000,000 | - | |||||||
| Deferred debt financing costs, | (3,298,905 | ) | - | |||||
| Base management and incentive fees payable | 6,602,819 | 6,230,944 | ||||||
| Deferred tax liability | 4,579,522 | 4,889,329 | ||||||
| Accounts payable and accrued expenses | 1,771,915 | 1,676,335 | ||||||
| Interest and debt fees payable | 3,904,143 | 3,909,517 | ||||||
| Directors fees payable | 5,500 | - | ||||||
| Due to Manager | 590,624 | 349,189 | ||||||
| Total liabilities | 743,109,350 | 798,878,389 | ||||||
| Commitments and contingencies | ||||||||
| NET ASSETS | ||||||||
| Common stock, par value | ||||||||
| authorized, 16,224,198 and 15,183,078 common shares issued and outstanding, respectively | 16,224 | 15,183 | ||||||
| Capital in excess of par value | 439,202,477 | 412,913,597 | ||||||
| Total distributable deficit | (43,062,947 | ) | (20,263,312 | ) | ||||
| Total net assets | 396,155,754 | 392,665,468 | ||||||
| Total liabilities and net assets | $ | 1,139,265,104 | $ | 1,191,543,857 | ||||
| NET ASSET VALUE PER SHARE | $ | 24.42 | $ | 25.86 | ||||
| Asset Coverage Ratio | 168.4 | % | 162.9 | % | ||||
| Saratoga Investment Corp. | ||||||||
| Consolidated Statements of Operations | ||||||||
| (unaudited) | ||||||||
| For the three months ended | ||||||||
| February 28, 2026 | February 28, 2025 | |||||||
| INVESTMENT INCOME | ||||||||
| Interest from investments | ||||||||
| Interest income: | ||||||||
| Non-control/Non-affiliate investments | $ | 23,525,328 | $ | 24,231,305 | ||||
| Affiliate investments | 686,621 | 436,995 | ||||||
| Control investments | 867,477 | 1,184,856 | ||||||
| Payment in kind interest income: | ||||||||
| Non-control/Non-affiliate investments | 171,561 | 172,899 | ||||||
| Affiliate investments | 519,757 | 563,584 | ||||||
| Control investments | 23,928 | - | ||||||
| Total interest from investments | 25,794,672 | 26,589,639 | ||||||
| Interest from cash and cash equivalents | 1,553,219 | 2,606,935 | ||||||
| Management fee income | 588,936 | 742,289 | ||||||
| Dividend income: | ||||||||
| Non-control/Non-affiliate investments | 553,419 | - | ||||||
| Control investments | 899,844 | 816,262 | ||||||
| Total dividend from investments | 1,453,263 | 816,262 | ||||||
| Structuring and advisory fee income | 1,100,227 | 396,274 | ||||||
| Other income | 632,685 | 143,679 | ||||||
| Total investment income | 31,123,002 | 31,295,078 | ||||||
| OPERATING EXPENSES | ||||||||
| Interest and debt financing expenses | 12,567,078 | 12,924,023 | ||||||
| Base management fees | 4,627,658 | 4,221,379 | ||||||
| Incentive management fees expense (benefit) | 1,975,160 | 2,009,564 | ||||||
| Professional fees | 600,419 | 262,431 | ||||||
| Administrator expenses | 1,350,000 | 1,250,000 | ||||||
| Insurance | 78,358 | 71,923 | ||||||
| Directors fees and expenses | 90,000 | 90,000 | ||||||
| General and administrative | 279,291 | (289,021 | ) | |||||
| Income tax expense (benefit) | 23,371 | 313,769 | ||||||
| Excise tax expense (benefit) | 1,734,018 | 2,406,465 | ||||||
| Total operating expenses | 23,325,353 | 23,260,533 | ||||||
| NET INVESTMENT INCOME | 7,797,649 | 8,034,545 | ||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||
| Net realized gain (loss) from investments: | ||||||||
| Non-control/Non-affiliate investments | (278,087 | ) | 7,169,655 | |||||
| Net realized gain (loss) from investments | (278,087 | ) | 7,169,655 | |||||
| Net change in unrealized appreciation (depreciation) on investments: | ||||||||
| Non-control/Non-affiliate investments | (7,104,776 | ) | (11,961,415 | ) | ||||
| Affiliate investments | 148,982 | 167,406 | ||||||
| Control investments | (2,370,718 | ) | (2,972,628 | ) | ||||
| Net change in unrealized appreciation (depreciation) on investments | (9,326,512 | ) | (14,766,637 | ) | ||||
| Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | (105,281 | ) | (313,873 | ) | ||||
| Net realized and unrealized gain (loss) on investments | (9,709,880 | ) | (7,910,855 | ) | ||||
| Realized losses on extinguishment of debt | (700,853 | ) | (800,452 | ) | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (2,613,084 | ) | $ | (676,762 | ) | ||
| WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | (0.16 | ) | $ | (0.05 | ) | ||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 16,183,902 | 14,455,529 | ||||||
| Saratoga Investment Corp. | |||||||||||||
| Consolidated Statements of Operations | |||||||||||||
| For the year ended | |||||||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||||
| INVESTMENT INCOME | |||||||||||||
| Interest from investments | |||||||||||||
| Interest income: | |||||||||||||
| Non-control/Non-affiliate investments | $ | 96,061,236 | $ | 119,478,418 | $ | 113,521,652 | |||||||
| Affiliate investments | 2,654,020 | 1,883,615 | 3,299,816 | ||||||||||
| Control investments | 5,176,943 | 5,649,993 | 8,507,909 | ||||||||||
| Payment in kind interest income: | |||||||||||||
| Non-control/Non-affiliate investments | 571,084 | 2,245,934 | 766,697 | ||||||||||
| Affiliate investments | 2,314,014 | 1,479,391 | 874,226 | ||||||||||
| Control investments | 120,715 | 284,590 | 814,925 | ||||||||||
| Total interest from investments | 106,898,012 | 131,021,941 | 127,785,225 | ||||||||||
| Interest from cash and cash equivalents | 7,882,863 | 6,530,315 | 2,512,416 | ||||||||||
| Management fee income | 2,586,517 | 3,114,466 | 3,270,232 | ||||||||||
| Dividend income:* | |||||||||||||
| Non-control/Non-affiliate investments | 1,243,291 | 588,247 | 621,398 | ||||||||||
| Control investments | 3,304,708 | 3,973,584 | 5,911,564 | ||||||||||
| Total dividend from investments | 4,547,999 | 4,561,831 | 6,532,962 | ||||||||||
| Structuring and advisory fee income | 2,248,663 | 1,582,822 | 2,149,751 | ||||||||||
| Other income* | 1,548,860 | 2,043,863 | 1,469,320 | ||||||||||
| Total investment income | 125,712,914 | 148,855,238 | 143,719,906 | ||||||||||
| OPERATING EXPENSES | |||||||||||||
| Interest and debt financing expenses | 49,302,541 | 52,059,045 | 49,179,899 | ||||||||||
| Base management fees | 17,769,904 | 18,382,404 | 19,212,337 | ||||||||||
| Incentive management fees expense (benefit) | 9,230,457 | 13,254,402 | 8,025,468 | ||||||||||
| Professional fees | 2,817,292 | 2,058,003 | 1,767,015 | ||||||||||
| Administrator expenses | 5,233,333 | 4,708,333 | 3,872,917 | ||||||||||
| Insurance | 300,480 | 303,859 | 322,323 | ||||||||||
| Directors fees and expenses | 430,000 | 366,500 | 351,297 | ||||||||||
| General and administrative | 2,226,257 | 1,901,592 | 2,241,579 | ||||||||||
| Income tax expense (benefit) | (138,168 | ) | 412,032 | 42,926 | |||||||||
| Excise tax expense (benefit) | 1,734,018 | 2,406,465 | 1,829,837 | ||||||||||
| Total operating expenses | 88,906,114 | 95,852,635 | 86,845,598 | ||||||||||
| NET INVESTMENT INCOME | 36,806,800 | 53,002,603 | 56,874,308 | ||||||||||
| REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||||||||
| Net realized gain (loss) from investments: | |||||||||||||
| Non-control/Non-affiliate investments | 5,108,135 | 12,534,746 | 153,583 | ||||||||||
| Control investments | 638,355 | (54,564,070 | ) | - | |||||||||
| Net realized gain (loss) from investments | 5,746,490 | (42,029,324 | ) | 153,583 | |||||||||
| Net change in unrealized appreciation (depreciation) on investments: | |||||||||||||
| Non-control/Non-affiliate investments | (7,180,617 | ) | 27,693,311 | (24,167,727 | ) | ||||||||
| Affiliate investments | 938,098 | 1,301,899 | (1,541,829 | ) | |||||||||
| Control investments | 1,004,039 | (10,020,844 | ) | (21,381,288 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on investments | (5,238,480 | ) | 18,974,366 | (47,090,844 | ) | ||||||||
| Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | 113,498 | (1,060,936 | ) | (893,166 | ) | ||||||||
| Net realized and unrealized gain (loss) on investments | 621,508 | (24,115,894 | ) | (47,830,427 | ) | ||||||||
| Realized losses on extinguishment of debt | (824,010 | ) | (800,452 | ) | (110,056 | ) | |||||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 36,604,298 | $ | 28,086,257 | $ | 8,933,825 | |||||||
| WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 2.31 | $ | 2.02 | $ | 0.71 | |||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 15,850,270 | 13,912,170 | 12,670,939 | ||||||||||
| * Certain prior period amounts have been reclassified to conform to current period presentation. | |||||||||||||
Supplemental Information Regarding Adjusted Net Investment Income, Adjusted Net Investment Income Yield and Adjusted Net Investment Income per Share
On a supplemental basis, Saratoga Investment provides information relating to adjusted net investment income, adjusted net investment income yield and adjusted net investment income per share, which are non-GAAP measures. These measures are provided in addition to, but not as a substitute for, net investment income, net investment income yield and net investment income per share, respectively. These non-GAAP measures should only be used to evaluate the Company’s results of operations in conjunction with their corresponding GAAP measures. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or reversal attributable to realized and unrealized gains. The management agreement with the Company’s advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year. In addition, Saratoga Investment accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. All capital gains incentive fees are presented within net investment income within the Consolidated Statements of Operations, but the associated realized and unrealized gains and losses that these incentive fees relate to, are excluded. As such, Saratoga Investment believes that adjusted net investment income, adjusted net investment income yield and adjusted net investment income per share is a useful indicator of operations exclusive of any capital gains incentive fee expense or reversal attributable to gains. In addition, adjusted net investment income in fiscal 2026 also excludes the interest expense and amortization of deferred financing costs related to the
| For the Three Months Ended | |||||
| February 28, 2026 | February 28, 2025 | ||||
| Net Investment Income | $ | 7,797,648 | $ | 8,034,545 | |
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||
| Interest on | 738,157 | - | |||
| Adjusted net investment income | $ | 8,535,805 | $ | 8,034,545 | |
| Net investment income yield | |||||
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||
| Interest on | - | ||||
| Adjusted net investment income yield(1) | |||||
| Net investment income per share | $ | 0.48 | $ | 0.56 | |
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||
| Interest on | 0.05 | - | |||
| Adjusted net investment income per share(2) | $ | 0.53 | $ | 0.56 | |
(1) Adjusted net investment income yield is calculated as adjusted net investment income divided by average net asset value.
(2) Adjusted net investment income per share is calculated as adjusted net investment income divided by weighted average common shares outstanding.
| For the Twelve Months Ended | ||||||||
| February 28, 2026 | February 28, 2025 | February 29, 2024 | ||||||
| Net Investment Income | $ | 36,806,800 | $ | 53,002,603 | $ | 56,874,308 | ||
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | (4,957,306) | |||||
| Interest on | 738,157 | - | - | |||||
| Adjusted net investment income | $ | 37,544,957 | $ | 53,002,603 | $ | 51,917,002 | ||
| Net investment income yield | ||||||||
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | (1.4)% | |||||
| Interest on | - | - | ||||||
| Adjusted net investment income yield(3) | ||||||||
| Net investment income per share | $ | 2.32 | $ | 3.81 | $ | 4.49 | ||
| Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | (0.39) | |||||
| Interest on | 0.05 | - | - | |||||
| Adjusted net investment income per share(4) | $ | 2.37 | $ | 3.81 | $ | 4.10 | ||
(3) Adjusted net investment income yield is calculated as adjusted net investment income divided by average net asset value.
(4) Adjusted net investment income per share is calculated as adjusted net investment income divided by weighted average common shares outstanding.
