Operating margins exhibit extreme instability, collapsing to negative 15.5% in 2026Q1 before rebounding to 92.9% in 2026Q2, highlighting the unpredictable nature of the firm's core interest income.
| 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 |
|---|
| Sales/Revenue | 177.92M | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 88.66M | 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 | 12.71M |
| Gross Margin % | 49.83% | 45.65% | 64.71% | 52.48% | 28.07% | 74.09% | 45.55% | 46.95% | 77.56% | 83.07% | 88.46% | 84.15% | 87.18% | 88.59% | 89.48% |
| Gross Profit Growth % | - | -27.91% | 157.63% | 262.97% | -81.24% | 173.02% | 13.69% | -59.8% | 21.27% | 8.47% | 118.56% | -26.85% | 64% | 13.17% | - |
| Operating Expenses | -197K | 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 |
| OpEx % of Revenue | - | 6.29% | 9.34% | 5.5% | 7.72% | 5.98% | 7.76% | 20.08% | 23.96% | 8.71% | 9.93% | 21.04% | 9.62% | 14.04% | 15.52% |
| Selling, General & Admin | 6.6M | 7.5M | 6.65M | 4.42M | 3.19M | 2.1M | 3.87M | 4.01M | 4.46M | 4.18M | 3.33M | 2.01M | 1.89M | 1.85M | 1.89M |
| SG&A % of Revenue | - | 4.37% | 3.96% | 5.5% | 7.72% | 2.51% | 7.76% | 9.45% | 6.97% | 8.49% | 7.8% | 9.82% | 6.98% | 11.41% | 13.33% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 88.86M | 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 % | 49.94% | 39.35% | 55.37% | 46.98% | 20.36% | 68.11% | 37.79% | 26.87% | 53.6% | 74.36% | 78.53% | 63.11% | 77.56% | 74.55% | 44.41% |
| 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% | - |
| EBITDA | 87.48M | 67.5M | 92.92M | 37.73M | 8.42M | 56.92M | 18.81M | 33.96M | 48.65M | 44.96M | 38.41M | 16.2M | 24.46M | 13.96M | 2.76M |
| EBITDA Margin % | 49.17% | 39.35% | 55.37% | 46.98% | 20.36% | 68.11% | 37.79% | 79.92% | 76.04% | 91.29% | 90.07% | 78.96% | 90.38% | 85.96% | 19.45% |
| EBITDA Growth % | 34.07% | -27.36% | 146.26% | 348.09% | -85.2% | 202.54% | -44.6% | -30.2% | 8.2% | 17.06% | 137.17% | -33.8% | 75.23% | 405.1% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3.55M |
| EBIT | 87.48M | 67.5M | 92.92M | 37.73M | 8.42M | 56.92M | 18.81M | 33.96M | 48.65M | 44.96M | 38.41M | 16.2M | 24.46M | 13.96M | 13.49M |
| Net Interest Income | 152.34M | 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 |
| Interest Income | 251.97M | 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 | 99.63M | 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 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 63.34M | 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 % | 35.6% | 39.35% | 55.37% | 46.98% | 20.36% | 68.11% | 37.79% | 26.87% | 53.6% | 74.36% | 78.53% | 63.11% | 77.56% | 74.55% | 84.48% |
| Income Tax | 1.37M | 1.13M | 1.08M | -1.53M | 4.97M | 400K | 400K | 0 | 800K | 300K | 0 | 440K | 479.43K | 122.9K | 42.03K |
| Effective Tax Rate % | 2.16% | 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 | 61.97M | 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 % | 34.83% | 38.69% | 54.72% | 48.88% | 8.35% | 67.63% | 36.98% | 26.87% | 52.34% | 73.75% | 78.53% | 60.96% | 75.79% | 73.79% | 84.18% |
| Net Income Growth % | -8.62% | -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) | 61.97M | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.62 | 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 % | -25.42% | -48.57% | 81.82% | 815.58% | -94.24% | 210.64% | 262.07% | -133.33% | -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 |
| Basic Shares Outstanding | 99.22M | 92.54M | 65.73M | 50.99M | 41.06M | 38.77M | 38.77M | 38.77M | 38.3M | 30.27M | 26.73M | 16.29M | 14.9M | 9.59M | 6.85M |
| Dividend Payout Ratio | - | 168.1% | 85.82% | 149.61% | 1334.12% | 78.22% | 240.05% | 387.17% | 128.33% | 94.41% | 90.99% | 141.24% | 78.07% | 76.44% | 51.55% |
High Portfolio Volatility
As reported in recent financial statements, PFLT's gross margin has exhibited significant volatility, swinging from a negative 5.4% in 2026Q1 to a peak of 76.4% in 2026Q2, highlighting the inherent sensitivity of the firm's interest spread to underlying asset performance and credit-related adjustments.
The extreme variance in gross margins suggests that PFLT's profitability is highly susceptible to non-accruals and valuation adjustments within its loan portfolio. Investors should monitor whether these fluctuations represent temporary accounting noise or a structural deterioration in the firm's ability to maintain a consistent spread over its cost of debt.
Based on PFLT's reported figures, operating income has demonstrated extreme instability, with the operating margin collapsing to negative 15.5% in 2026Q1 before rebounding to 92.9% in 2026Q2, indicating that the firm's overhead efficiency is currently secondary to the massive swings in its core investment income.
While SG&A expenses remain relatively contained, the lack of operating leverage stability suggests that the firm's cost structure is not the primary driver of its bottom-line results. The disproportionate impact of investment-level performance on operating income warrants further investigation into the quality of the underlying credit assets.
According to recent SEC filings, PFLT's net income has fluctuated wildly, ranging from a loss of $3.6 million in 2026Q1 to a profit of $31.1 million in 2024Q2, which raises significant questions regarding the predictability of earnings for a business model predicated on recurring interest income.
The inconsistency in net income appears to be driven by the fair value adjustments of Level 3 assets rather than operational performance. This volatility suggests that reported EPS may not be a reliable indicator of the firm's long-term dividend-paying capacity or its underlying cash-generating potential.
As indicated by the data, the firm's reliance on floating rate income in a volatile credit environment creates a risk profile where a single quarter of poor asset performance, such as the 2026Q1 loss, can effectively negate multiple periods of prior earnings growth and stability.
Short-sellers would likely focus on the disconnect between the firm's dividend policy and the high volatility of its net income. The potential for future non-accruals to further compress margins suggests that the current valuation may not fully account for the downside risk inherent in the lower-middle market.
Quick answers to the most common questions about buying PFLT stock.
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 38.7%.
PennantPark Floating Rate Capital Ltd. (PFLT) reported an operating income of $67.5M, resulting in an operating profit margin of 39.4%. 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 45.6%. This demonstrates the company's core pricing power and production efficiency.