Operating margins have experienced extreme volatility, falling from 57.1% in 2024Q4 to 25.4% in 2026Q2, reflecting an inability to maintain consistent profitability amidst top-line contraction.
| 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 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 |
|---|
| Sales/Revenue | 82.28M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 42.6M | 41.76M | 58.51M | -20.17M | -4.96M | 171.31M | -9.86M | 28.96M | 50.88M | 67.87M | 21.72M | -4.49M | 125.21M | 100.5M | 99.17M | 76.84M | 48.52M | 31.72M | 39.81M | -15.3M |
| Gross Margin % | 51.77% | 50.27% | 56.42% | -104.81% | -20.84% | 88.39% | -44.19% | 48.21% | 69.04% | 71.81% | 44.04% | -20.53% | 86.07% | 86.72% | 130.03% | 481.05% | 227.89% | 78.96% | -108.52% | 113.64% |
| Gross Profit Growth % | - | -28.62% | 390.13% | -306.59% | -102.9% | 1837.62% | -134.05% | -43.09% | -25.04% | 212.48% | 583.77% | -103.59% | 24.58% | 1.34% | 29.06% | 58.36% | 52.97% | -20.32% | 360.25% | - |
| Operating Expenses | 20.27M | 6.47M | 6.56M | 5.97M | 11.9M | 4.09M | 4.91M | 11.83M | 3.16M | 4.46M | 633.12K | 5.76M | 14.15M | 8.78M | 4.66M | -51.57M | -22.4M | 4.06M | -55.24M | 1.3M |
| OpEx % of Revenue | - | 7.79% | 6.33% | 31.02% | 50% | 2.11% | 22.01% | 19.7% | 4.29% | 4.72% | 1.28% | 26.32% | 9.73% | 7.57% | 6.11% | -322.87% | -105.22% | 10.1% | 150.58% | -9.63% |
| Selling, General & Admin | 8.02M | 1.49M | 6.56M | 5.68M | 3.89M | 4.09M | 6.83M | 4.75M | 4.59M | 6.24M | 7.17M | 5.76M | 5.81M | 6.02M | 7.24M | 5.48M | 4.66M | 4.37M | 4.44M | 1.73M |
| SG&A % of Revenue | - | 1.8% | 6.33% | 29.52% | 16.35% | 2.11% | 30.63% | 7.91% | 6.23% | 6.6% | 14.54% | 26.32% | 4% | 5.19% | 9.5% | 34.31% | 21.87% | 10.88% | -12.1% | -12.85% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 22.33M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M | -14.77M | 17.12M | 47.71M | 63.41M | 21.09M | -10.25M | 111.06M | 91.72M | 57.38M | 52.65M | 32.07M | 22.72M | 18.56M | -16.59M |
| Operating Margin % | 27.14% | 42.48% | 50.09% | -135.83% | -70.84% | 86.27% | -66.21% | 28.51% | 64.74% | 67.09% | 42.75% | -46.86% | 76.34% | 79.15% | 75.23% | 329.59% | 150.65% | 56.55% | -50.58% | 123.27% |
| Operating Income Growth % | - | -32.07% | 298.76% | -55.01% | -110.08% | 1232.14% | -186.25% | -64.11% | -24.76% | 200.72% | 305.81% | -109.23% | 21.08% | 59.86% | 8.99% | 64.13% | 41.18% | 22.43% | 211.83% | - |
| EBITDA | 22.33M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M | -14.77M | 17.12M | 47.71M | 63.41M | 21.09M | -10.25M | 111.06M | 91.72M | 75.34M | 15.81M | 16.54M | 40.43M | -34.39M | 7.33M |
| EBITDA Margin % | 27.14% | 42.48% | 50.09% | -135.83% | -70.84% | 86.27% | -66.21% | 28.51% | 64.74% | 67.09% | 42.75% | -46.86% | 76.34% | 79.15% | 98.79% | 99.01% | 77.66% | 100.64% | 93.75% | -54.44% |
| EBITDA Growth % | -55.36% | -32.07% | 298.76% | -55.01% | -110.08% | 1232.14% | -186.25% | -64.11% | -24.76% | 200.72% | 305.81% | -109.23% | 21.08% | 21.74% | 376.41% | -4.36% | -59.1% | 217.55% | -569.31% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 17.96M | -36.83M | -15.54M | 17.71M | -52.95M | 23.92M |
| EBIT | 22.33M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M | -14.77M | 17.12M | 47.71M | 63.41M | 21.09M | -10.25M | 111.06M | 91.72M | 0 | 0 | 0 | 0 | 0 | -16.59M |
| Net Interest Income | 56.89M | 56.85M | 70.65M | 73.97M | 58.67M | 48.58M | 63.23M | 77.1M | 78.48M | 89.2M | 103.44M | 121.35M | 117.52M | 102.32M | -11.68M | -5.32M | -3.67M | 40.34M | -6.31M | 11.27M |
| Interest Income | 94.75M | 98.17M | 115.84M | 113.38M | 87.43M | 71.09M | 95.4M | 108.21M | 101.3M | 115.85M | 131.05M | 147.71M | 137.78M | 117.71M | 0 | 0 | 0 | 44.91M | 0 | 13.11M |
| Interest Expense | 37.86M | 41.31M | 45.19M | 39.41M | 28.76M | 22.51M | 32.17M | 31.11M | 22.82M | 26.64M | 27.6M | 26.36M | 20.26M | 15.38M | 11.68M | 5.32M | 3.67M | 4.63M | 6.31M | 1.84M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 16.2M | 35.29M | 51.95M | -26.14M | -16.86M | 167.22M | -14.77M | 17.12M | 47.71M | 63.41M | 21.09M | -10.25M | 111.06M | 91.72M | 63.66M | 10.49M | 16.63M | 35.8M | -40.7M | -16.59M |
| Pretax Margin % | 19.69% | 42.48% | 50.09% | -135.83% | -70.84% | 86.27% | -66.21% | 28.51% | 64.74% | 67.09% | 42.75% | -46.86% | 76.34% | 79.15% | 83.47% | 65.69% | 78.13% | 89.12% | 110.95% | 123.27% |
| Income Tax | 2.39M | 2.56M | 3.1M | 7.67M | 7.88M | 600K | 1.2M | 1.2M | 0 | 1.7M | 2.35M | 0 | 72.6K | -53.47K | 307.99K | 228.82K | 98.29K | 0 | 0 | 105.88K |
| Effective Tax Rate % | 14.74% | 7.27% | 5.96% | -29.35% | -46.73% | 0.36% | -8.12% | 7.01% | 0% | 2.68% | 11.14% | 0% | 0.07% | -0.06% | 0.48% | 2.18% | 0.59% | 0% | 0% | -0.64% |
| Net Income | 13.81M | 32.73M | 48.85M | -33.81M | -24.74M | 166.62M | -15.97M | 15.92M | 47.71M | 61.71M | 18.74M | -10.25M | 110.98M | 91.78M | 63.35M | 10.26M | 16.54M | 35.8M | -40.7M | -16.7M |
| Net Margin % | 16.79% | 39.39% | 47.11% | -175.7% | -103.95% | 85.97% | -71.59% | 26.51% | 64.74% | 65.3% | 37.99% | -46.86% | 76.29% | 79.2% | 83.07% | 64.25% | 77.66% | 89.12% | 110.95% | 124.05% |
| Net Income Growth % | -71.02% | -33.01% | 244.5% | -36.65% | -114.85% | 1143.31% | -200.28% | -66.62% | -22.68% | 229.36% | 282.87% | -109.23% | 20.93% | 44.87% | 517.27% | -37.93% | -53.81% | 187.96% | -143.74% | - |
| Net Income (Continuing) | 13.81M | 32.73M | 48.85M | -33.81M | -24.74M | 166.62M | -15.97M | 15.92M | 47.71M | 61.71M | 18.74M | -10.25M | 110.98M | 91.78M | 63.35M | 10.26M | 16.54M | 35.8M | -40.7M | -16.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 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 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.22 | 0.50 | 0.75 | -0.52 | -0.38 | 2.49 | -0.24 | 0.24 | 0.68 | 0.87 | 0.26 | -0.14 | 1.66 | 1.39 | 1.20 | 0.24 | 0.56 | 1.70 | -1.93 | -0.80 |
| EPS Growth % | -71.2% | -33.33% | 244.23% | -36.84% | -115.26% | 1137.5% | -200% | -64.71% | -21.84% | 234.62% | 285.71% | -108.43% | 19.42% | 15.83% | 400% | -57.14% | -67.06% | 188.08% | -141.25% | - |
| EPS (Basic) | - | 0.50 | 0.75 | -0.52 | -0.38 | 2.49 | -0.24 | 0.24 | 0.68 | 0.87 | 0.26 | -0.14 | 1.66 | 1.39 | 1.20 | 0.24 | 0.56 | 1.70 | -1.93 | -0.80 |
| Diluted Shares Outstanding | 63.96M | 65.3M | 65.25M | 65.22M | 65.22M | 67.05M | 67.05M | 67.71M | 70.69M | 71.06M | 71.62M | 74.76M | 67.06M | 66.38M | 52.97M | 42.2M | 29.55M | 21.09M | 21.07M | 20.94M |
| Basic Shares Outstanding | 63.96M | 65.3M | 65.25M | 65.01M | 65.22M | 67.05M | 67.05M | 67.71M | 70.69M | 71.06M | 71.62M | 74.76M | 67.06M | 66.38M | 52.97M | 42.2M | 29.55M | 21.09M | 21.07M | 20.94M |
| Dividend Payout Ratio | - | 207.5% | 134.91% | - | - | 19.31% | - | 306.51% | 106.83% | 105.94% | 428.64% | - | 66.19% | 74.64% | 81.54% | 385.67% | 168.84% | 56.49% | - | - |
Portfolio Credit Quality Erosion
As reported in recent financial statements, PNNT's quarterly revenue has exhibited significant instability, culminating in a sharp contraction to $24.5M in 2026Q2 from a peak of $32.7M in 2024Q4, suggesting that the firm's underlying income-generating asset base is currently facing material deployment or credit-related headwinds.
The erratic top-line performance indicates that the firm's ability to maintain a consistent interest-earning portfolio is under pressure. Investors should monitor whether this revenue decline reflects a strategic pivot toward lower-yielding assets or an inability to source high-quality credit opportunities in the current market environment.
Based on the provided income statement data, PNNT's gross margin has experienced substantial volatility, dropping from a high of 62.5% in 2024Q4 to 75.4% in 2026Q2, though the underlying trend appears inconsistent with the firm's historical ability to capture stable spreads over its cost of capital.
The fluctuation in gross margins suggests that the spread between portfolio yields and financing costs is highly sensitive to credit events or valuation adjustments. This instability may indicate that the firm is struggling to maintain pricing power in the lower-middle market, potentially forcing a reliance on riskier assets to sustain dividend coverage.
According to the firm's recent filings, operating margins have fluctuated wildly, falling to 25.4% in 2026Q2 compared to 57.1% in 2024Q4, which implies that the firm is failing to achieve the necessary operating leverage to offset the recent contraction in its top-line interest income.
The inability to maintain operating margins during periods of revenue decline suggests that fixed administrative costs are becoming a larger burden on the bottom line. This lack of scalability warrants further investigation into the firm's cost structure and the efficiency of its external management fee arrangements.
As evidenced by the shift from a $18.4M net profit in 2024Q4 to a $2.3M net loss in 2026Q2, PNNT's earnings quality appears compromised by non-operating valuation swings that obscure the firm's actual cash-generating capacity and long-term ability to sustain shareholder distributions.
The transition to negative net income suggests that unrealized losses on the portfolio are beginning to outweigh interest income. Investors should be wary of relying on headline earnings, as the reliance on Level 3 asset marks may mask deeper credit deterioration within the mezzanine and equity co-investment tranches.
Based on the reported figures, the firm's recent net loss of $2.3M in 2026Q2 highlights a significant risk to dividend sustainability, as the current income generation appears insufficient to cover the firm's operational costs and debt obligations without eroding the underlying net asset value.
Short-term observers may focus on the potential for continued NAV erosion if the firm is forced to realize losses on its distressed debt holdings. The current trajectory suggests that the firm's dividend policy may be disconnected from its actual cash-flow generation, creating a potential trap for income-focused investors.
Quick answers to the most common questions about buying PNNT stock.
PennantPark Investment Corporation (PNNT) is profitable, generating $32.7M in net income for the fiscal year ending 2025 with a net profit margin of 39.4%.
PennantPark Investment Corporation (PNNT) reported an operating income of $35.3M, resulting in an operating profit margin of 42.5%. This margin reflects the operational efficiency of the business before interest and taxes.
PennantPark Investment Corporation (PNNT) generated $41.8M in gross profit for the year, representing a gross profit margin of 50.3%. This demonstrates the company's core pricing power and production efficiency.