NII grew 12.8% YoY to $40.2M in 2026Q3, but a -$11.3M provision reversal and a 55.2% efficiency ratio indicate strained profitability and credit deterioration.
PennantPark Floating Rate Capital Ltd. (PFLT) annual income statement — 14-year revenue, gross profit & net income history
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 |
|---|
| Net Interest Income | 91.63M | 145.63M | 104.27M | 81.53M | 55.49M | 47.78M | 58.83M | 60.48M | 53.41M | 44.95M | 35.74M | 25.95M | 25.79M | 15.78M | -1.48M |
| NII Growth % | -123.11% | 39.67% | 27.89% | 46.92% | 16.15% | -18.78% | -2.74% | 13.24% | 18.84% | 25.74% | 37.73% | 0.65% | 63.38% | 1164.67% | - |
| Net Interest Margin % | 3.48% | 5% | 4.94% | 6.91% | 4.52% | 4.08% | 5.12% | 5.25% | 4.96% | 6.01% | 5.66% | 6.24% | 6.92% | 4.8% | -0.83% |
| Interest Income | 193.74M | 238.86M | 163.49M | 119.7M | 85.25M | 69.43M | 85.94M | 83.02M | 67.77M | 53.28M | 40.67M | 29.2M | 29.26M | 17.64M | 0 |
| Interest Expense | 102.11M | 93.23M | 59.22M | 38.17M | 29.75M | 21.65M | 27.11M | 22.54M | 14.36M | 8.34M | 4.92M | 3.25M | 3.47M | 1.85M | 1.48M |
| Loan Loss Provision | -22.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.28K |
| Non-Interest Income | -16.13M | -67.34M | 4.33M | -39.38M | -43.88M | 14.14M | -36.15M | -40.53M | -3.79M | -4.03M | 1.98M | -8.69M | -2.19M | -1.39M | 14.21M |
| Non-Interest Income % | -21.37% | -86.01% | 3.99% | -93.41% | -377.82% | 22.83% | -159.4% | -203.2% | -7.64% | -9.84% | 5.25% | -50.36% | -9.27% | -9.69% | 111.65% |
| Total Net Revenue | 75.5M | 78.29M | 108.6M | 42.16M | 11.61M | 61.91M | 22.68M | 19.95M | 49.62M | 40.92M | 37.72M | 17.26M | 23.6M | 14.39M | 12.73M |
| Revenue Growth % | -24.49% | -27.91% | 157.63% | 262.97% | -81.24% | 173.02% | 13.69% | -59.8% | 21.27% | 8.47% | 118.56% | -26.85% | 64% | 13.06% | - |
| Non-Interest Expense | -2.75M | 10.8M | 15.68M | 4.42M | 3.19M | 5M | 3.87M | 8.53M | 15.33M | 4.29M | 4.24M | 4.32M | 2.6M | 2.28M | 2.21M |
| Efficiency Ratio | -3.65% | 13.79% | 14.44% | 10.49% | 27.49% | 8.07% | 17.04% | 42.77% | 30.89% | 10.49% | 11.23% | 25.01% | 11.03% | 15.85% | 17.33% |
| Operating Income | 100.8M | 67.5M | 92.92M | 37.73M | 8.42M | 56.92M | 18.81M | 11.42M | 34.29M | 36.63M | 33.49M | 12.94M | 20.99M | 12.11M | 6.31M |
| Operating Margin % | 133.51% | 86.21% | 85.56% | 89.51% | 72.51% | 91.93% | 82.96% | 57.23% | 69.11% | 89.51% | 88.77% | 74.99% | 88.97% | 84.15% | 49.58% |
| Operating Income Growth % | - | -27.36% | 146.26% | 348.09% | -85.2% | 202.54% | 64.79% | -66.71% | -6.38% | 9.37% | 158.71% | -38.34% | 73.39% | 91.89% | - |
| Pretax Income | 50.25M | 67.5M | 92.92M | 37.73M | 8.42M | 56.92M | 18.81M | 11.42M | 34.29M | 36.63M | 33.49M | 12.94M | 20.99M | 12.11M | 12M |
| Pretax Margin % | 66.56% | 86.21% | 85.56% | 89.51% | 72.51% | 91.93% | 82.96% | 57.23% | 69.11% | 89.51% | 88.77% | 74.99% | 88.97% | 84.15% | 94.32% |
| Income Tax | 1K | 1.13M | 1.08M | -1.53M | 4.97M | 400K | 400K | 0 | 800K | 300K | 0 | 440K | 479.43K | 122.9K | 42.03K |
| Effective Tax Rate % | 0% | 1.68% | 1.17% | -4.05% | 59% | 0.7% | 2.13% | 0% | 2.33% | 0.82% | 0% | 3.4% | 2.28% | 1.02% | 0.35% |
| Net Income | 50.25M | 66.36M | 91.84M | 39.26M | 3.45M | 56.52M | 18.41M | 11.42M | 33.49M | 36.33M | 33.49M | 12.5M | 20.51M | 11.98M | 11.96M |
| Net Margin % | 66.56% | 84.76% | 84.56% | 93.13% | 29.73% | 91.28% | 81.19% | 57.23% | 67.49% | 88.78% | 88.77% | 72.45% | 86.94% | 83.3% | 93.99% |
| Net Income Growth % | -28.41% | -27.74% | 133.92% | 1037.01% | -93.89% | 206.94% | 61.29% | -65.91% | -7.8% | 8.47% | 167.82% | -39.05% | 71.17% | 0.2% | - |
| Net Income (Continuing) | 50.25M | 66.36M | 91.84M | 39.26M | 3.45M | 56.52M | 18.41M | 11.42M | 33.49M | 36.33M | 33.49M | 12.5M | 20.51M | 11.98M | 11.96M |
| EPS (Diluted) | 0.51 | 0.72 | 1.40 | 0.77 | 0.08 | 1.46 | 0.47 | 0.29 | 0.87 | 1.20 | 1.25 | 0.77 | 1.38 | 1.25 | 1.75 |
| EPS Growth % | -42.49% | -48.57% | 81.82% | 815.58% | -94.24% | 210.64% | 62.07% | -66.67% | -27.5% | -4% | 62.34% | -44.2% | 10.4% | -28.57% | - |
| EPS (Basic) | - | 0.72 | 1.40 | 0.77 | 0.08 | 1.46 | 0.47 | 0.29 | 0.87 | 1.20 | 1.25 | 0.77 | 1.38 | 1.25 | 1.75 |
| Diluted Shares Outstanding | 99.22M | 92.54M | 65.73M | 50.83M | 41.06M | 38.77M | 38.77M | 38.77M | 38.3M | 30.27M | 26.73M | 16.29M | 14.9M | 9.59M | 6.85M |
Quick answers to the most common questions about buying PFLT stock.
For fiscal year 2025, PennantPark Floating Rate Capital Ltd. (PFLT) reported total revenue of $78.3M. This represents a 515.2% increase compared to $12.7M in 2012.
PennantPark Floating Rate Capital Ltd. (PFLT) is profitable, generating $66.4M in net income for the fiscal year ending 2025 with a net profit margin of 84.8%.
PennantPark Floating Rate Capital Ltd. (PFLT) reported an operating income of $67.5M, resulting in an operating profit margin of 86.2%. This margin reflects the operational efficiency of the business before interest and taxes.
PennantPark Floating Rate Capital Ltd. (PFLT) generated $78.3M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Non-accrual and PIK risk
Metrics are mathematically derived from official filings.
NII Growth Driven by Floating Rate Portfolio
Net interest income grew 12.8% year-over-year to $40.2M in 2026Q3, reflecting the floating-rate portfolio's sensitivity to higher rates, as reported in the latest quarterly data.
The sequential increase from $37.2M in 2026Q1 to $40.2M in 2026Q3 indicates continued expansion in interest income, likely due to rising SOFR and portfolio growth. However, the pace of growth may moderate as the rate cycle peaks, and investors should monitor the sustainability of this trajectory given potential rate cuts.
NIM Stable but Under Pressure
Net interest margin remained flat at 1.5% in 2026Q3, unchanged from the prior quarter, according to the income statement data, suggesting stable asset yields but limited expansion.
The stability in NIM comes despite higher NII, implying that funding costs are rising in tandem with asset yields. With the efficiency ratio at 55.2%, the bank's spread is adequate but not expanding, and any increase in non-accruals could compress margins further.
Efficiency Ratio Spikes on Revenue Volatility
The efficiency ratio jumped to 55.2% in 2026Q3 from negative levels in prior quarters, as reported in the financial statements, reflecting the impact of volatile non-interest income on total revenue.
The negative efficiency ratios in earlier quarters were due to negative non-interest income, which distorted the metric. The current 55.2% indicates that operating expenses are consuming a larger share of revenue, but this is partly a function of the lumpy fee income. Excluding non-interest income, the core efficiency ratio appears more stable, but the volatility warrants monitoring.
Provision Expense Emerges as Key Risk
Provision for loan losses turned negative at -$11.3M in 2026Q3, a reversal from zero provisions in prior quarters, based on the income statement data, signaling potential credit deterioration.
The negative provision indicates a release of reserves, which boosted operating income, but the fact that provisions were zero for five consecutive quarters before this suggests the bank may have been under-reserving. The $11.3M release could be a one-time event, but it also raises questions about the adequacy of reserves given the non-accrual trends. Investors should monitor whether this release is sustainable or if it masks underlying credit stress.
Fee Income Highly Volatile
Non-interest income swung from -$38.6M in 2026Q1 to $38.1M in 2026Q3, as per the income statement data, indicating significant volatility in fee-based revenues.
The large swings in non-interest income are likely driven by unrealized gains/losses on investments and other mark-to-market adjustments, which are not core recurring fees. This volatility makes it difficult to assess the quality of fee income, but the positive $38.1M in 2026Q3 may include one-time gains. Excluding these, the underlying fee stream appears modest, and the bank's reliance on transactional fees introduces earnings variability.
Earnings Quality Questioned by Provision Reversal
The $11.3M provision reversal in 2026Q3, as reported in the income statement, may be masking underlying credit deterioration, given the prior quarters had zero provisions.
While the reversal boosted net income, it is unusual for a BDC to release reserves in a period of potential economic uncertainty. This could indicate that the bank is managing earnings to offset the EPS miss, or it may reflect improved credit conditions. However, the lack of provisions in prior quarters suggests that the bank may have been under-reserving, and the reversal could be a one-time boost. Investors should scrutinize the non-accrual rate and PIK income to assess the true credit quality.