Prospect Capital Corporation reported its financial results for the quarter ending September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

Total investment income for the quarter was $196.3 million, a decrease from $236.2 million in the same period last year. This decline was attributed to lower interest income, which fell to $151.5 million (excluding PIK interest) from $172.2 million in the prior year. The company also experienced a net investment income of $89.9 million, down from $125.6 million in the previous year. The net change in unrealized losses from investments was $(123.8 million), contrasting sharply with a gain of $198.6 million in the same quarter of 2023. Consequently, the net increase in net assets resulting from operations was $(134.0 million), compared to a gain of $116.7 million in the prior year.

The net asset value (NAV) per common share decreased to $8.10 from $8.74 as of June 30, 2024. The total net assets applicable to common shares also fell from $3.71 billion to $3.51 billion. The company’s outstanding shares of common stock as of November 6, 2024, were reported at 436.2 million.

Strategically, Prospect Capital made several adjustments to its investment portfolio. The total investments at fair value decreased to $7.48 billion from $7.72 billion, with a notable reduction in cash and cash equivalents, which dropped to $57.0 million from $85.9 million. The company’s liabilities under its Revolving Credit Facility decreased significantly from $794.8 million to $547.2 million, while liabilities related to Prospect Capital InterNotes® increased from $496.0 million to $594.2 million.

In terms of operational activities, the company reported cash provided by operating activities of $173.7 million, up from $95.1 million in the previous year. This increase was driven by higher repayments from investments. However, financing activities used $202.6 million in cash, compared to $121.8 million in the prior year, primarily due to dividend payments and distributions to stockholders.

Prospect Capital's investment strategy continues to focus on generating current income and long-term capital appreciation through debt and equity investments, particularly in middle-market companies. The company remains committed to managing its portfolio actively, with a focus on maintaining a balanced approach to risk and return in a challenging market environment.