NII has declined for eight quarters to $15.7M while a 139.6% efficiency ratio in 2025Q4 and negative fee contributions (-12.5%) expose operating cost inflexibility against collapsing revenue.
PennantPark Investment Corporation (PNNT) annual income statement — 19-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 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 |
|---|
| Net Interest Income | 58.96M | 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 |
| NII Growth % | -11.4% | -19.53% | -4.49% | 26.07% | 20.76% | -23.17% | -17.98% | -1.75% | -12.02% | -13.77% | -14.76% | 3.26% | 14.86% | 976% | -119.47% | -44.92% | -109.1% | 739.35% | -155.97% | - |
| Net Interest Margin % | 4.67% | 4.21% | 5.09% | 6.39% | 4.44% | 3.75% | 5.67% | 6% | 6.76% | 7.42% | 8.35% | 8.89% | 8.32% | 8.87% | -1.15% | -0.57% | -0.52% | 7.87% | -1.5% | 2.03% |
| Interest Income | 96.44M | 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 | 37.48M | 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 |
| Loan Loss Provision | -1.17M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.54M | 9.58M | 7.95M | 8.77M | -6.31M | 0 |
| Non-Interest Income | 3.12M | -15.09M | -12.14M | -94.13M | -63.63M | 122.73M | -73.09M | -48.14M | -27.6M | -21.33M | -81.72M | -125.84M | 7.68M | -1.82M | 76.26M | 15.97M | 21.29M | -4.73M | -36.69M | -26.57M |
| Non-Interest Income % | 5.02% | -36.13% | -20.75% | 466.77% | 1282.86% | 71.64% | 741.39% | -166.26% | -54.25% | -31.43% | -376.26% | 2802.9% | 6.14% | -1.81% | 118.09% | 149.97% | 120.84% | -13.29% | 85.33% | 173.68% |
| Total Net Revenue | 62.08M | 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 | 64.58M | 10.65M | 17.62M | 35.6M | -42.99M | -15.3M |
| Revenue Growth % | 1.29% | -28.62% | 390.13% | -306.59% | -102.9% | 1837.62% | -134.05% | -43.09% | -25.04% | 212.48% | 583.77% | -103.59% | 24.58% | 55.61% | 506.37% | -39.55% | -50.51% | 182.81% | -181.06% | - |
| Non-Interest Expense | 36.25M | 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 |
| Efficiency Ratio | 58.4% | 15.5% | 11.22% | -29.6% | -239.94% | 2.39% | -49.81% | 40.86% | 6.22% | 6.57% | 2.91% | -128.2% | 11.3% | 8.73% | 7.22% | -484.21% | -127.15% | 11.39% | 128.49% | -8.47% |
| Operating Income | 27M | 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 % | 43.49% | 84.5% | 88.78% | 129.6% | 339.94% | 97.61% | 149.81% | 59.14% | 93.78% | 93.43% | 97.09% | 228.2% | 88.7% | 91.27% | 88.84% | 494.28% | 182.05% | 63.81% | -43.16% | 108.47% |
| 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% | - |
| Pretax Income | 12.05M | 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 % | 19.41% | 84.5% | 88.78% | 129.6% | 339.94% | 97.61% | 149.81% | 59.14% | 93.78% | 93.43% | 97.09% | 228.2% | 88.7% | 91.27% | 98.57% | 98.51% | 94.41% | 100.56% | 94.67% | 108.47% |
| Income Tax | 1.92M | 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 % | 15.91% | 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 | 10.13M | 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 % | 16.32% | 78.36% | 83.49% | 167.64% | 498.79% | 97.26% | 161.98% | 55% | 93.78% | 90.93% | 86.27% | 228.2% | 88.64% | 91.32% | 98.09% | 96.36% | 93.85% | 100.56% | 94.67% | 109.16% |
| Net Income Growth % | -80.54% | -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) | 10.13M | 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 |
| EPS (Diluted) | 0.16 | 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 % | -80.01% | -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 |
Quick answers to the most common questions about buying PNNT stock.
For fiscal year 2025, PennantPark Investment Corporation (PNNT) reported total revenue of $41.8M.
PennantPark Investment Corporation (PNNT) is profitable, generating $32.7M in net income for the fiscal year ending 2025 with a net profit margin of 78.4%.
PennantPark Investment Corporation (PNNT) reported an operating income of $35.3M, resulting in an operating profit margin of 84.5%. 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 100.0%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Provisioning and volatile non-interest income swings
Metrics are mathematically derived from official filings.
Net Interest Income Decline Sustains Across Eight Quarters
According to reported financial statements, PNNT's net interest income has fallen from $18.0M in 2024Q2 to $15.7M in 2026Q3, with sequential negative growth rates through most periods, reflecting persistent asset repricing and portfolio compression rather than a single-quarter anomaly.
The sustained NII deterioration, with negative year-over-year growth in nearly every reported quarter, appears driven by both asset yield compression and a shrinking earning-asset base as NIM fell from 1.4% to 1.2% over the period. The brief NII uptick in 2026Q2 and Q3 (+18.6% and +15.2% year-over-year) reflects easier comparisons against depressed 2025 periods rather than a genuine inflection, and absolute dollar levels remain well below 2024 levels. Investors should monitor whether the recent stabilization in NII dollars reflects portfolio rebuilding or merely mix shifts, as the trajectory suggests earnings quality remains sensitive to further rate or credit-driven asset reductions.
Emerging Provisions Signal Credit Cycle Turn
Based on EDBL's reported figures — corrected, per PNNT's financial statements — provision expense turned materially positive starting 2026Q1 at $3.9M after six consecutive quarters of zero provisions, totaling roughly $9M across 2026 quarters and materially compressing operating income.
The shift from zero provisions through 2024-2025 to recurring multi-million-dollar charges in 2026 suggests PNNT is recognizing deterioration in its middle-market credit portfolio, consistent with a late-cycle credit environment rather than isolated idiosyncratic events. This inflection is structurally important for a BDC: even with NII stabilizing, $3-4M quarterly provisions absorb roughly 20% of net interest income, capping distributable earnings. The absence of write-off detail in the supplied data warrants further investigation, but the sequential pattern indicates provisioning is not a one-off and may persist or deepen, which would further pressure EPS already down to $0.07 from $0.25-0.28 in early 2024.
Non-Interest Income Volatility Undermines Earnings Visibility
As reported in financial statements, PNNT's non-interest income swung from -$11.7M in 2025Q4 to +$12.3M in 2026Q3, a $24M swing in a single quarter that suggests mark-to-market and investment gains/losses dominate this line item rather than recurring fee streams.
The extreme variance in non-interest income — negative in four of the ten reported quarters, including a -$10.8M print in 2024Q3 and -$333K in 2026Q2 — implies this line reflects non-cash fair value adjustments and opportunistic investment outcomes, not predictable management or transaction fees. This matters for valuation: a BDC whose quarterly earnings depend on mark swings carries structurally lower earnings quality than one with stable spread income, and the negative fee percentages in multiple quarters (e.g., -31.8% in 2025Q3) highlight that this line can actively erode the bottom line. The 2026Q3 rebound may flatter headline revenue to $36.8M, but given the demonstrated mean-reversion pattern, investors should not extrapolate this contribution forward.
Fourth Quarter 2025 Marks Structural Earnings Downshift
Per SEC filings, 2025Q4 represented PNNT's clearest negative inflection, with total revenue collapsing to $11.0M — down 66% from $32.7M two quarters prior — as non-interest income plunged to -$11.7M and the efficiency ratio exploded to 139.6%, exposing operating cost inflexibility against collapsing revenue.
The 2025Q4 print, with operating income of -$370K and EPS of -$0.01, appears to be the trough of PNNT's recent earnings cycle, but the structural issue is that cost base did not adjust: even as revenue halved, the efficiency ratio (peaking at 139.6%) indicates fixed operating expenses overwhelmed the collapsing top line. Subsequent quarters show partial recovery driven primarily by non-interest income normalization rather than NII growth, while the emergence of provisions in 2026 offsets part of that recovery. This suggests PNNT's earnings trajectory may have shifted to a structurally lower plateau — high-teens NII with episodic fee swings and recurring credit costs — versus the $18M+ NII quarters of 2024.
Earnings Quality Challenge: Two Engines, Both Sputtering
The strongest challenge to PNNT's earnings quality is that both core revenue engines — spread income and fair value gains — are simultaneously deteriorating or unstable, with NII down ~13% over two years and non-interest income negative in multiple quarters, leaving thin, unpredictable distributable earnings.
A BDC's earnings are only as durable as its NII and credit performance; here, NIM compression from 1.4% to 1.2% indicates PNNT is not earning sufficient spread to absorb emerging $3M+ quarterly provisions without EPS erosion, as evidenced by the drop from $0.25 to $0.07 diluted EPS. Unlike peers showing revenue growth (e.g., GBDC at +44.7%, SLRC at +45.0%), PNNT's 10-quarter revenue trend is directionally negative, and peer net margins (ARCC 86.3%, GBDC 43.2%) dwarf PNNT's recent prints of $4.5M on $36.8M (~12% net margin before the fee volatility is considered). While 2026Q3's rebound in non-interest income and NII growth optics may invite a recovery narrative, the combination of compressed margins, new credit costs, and unreliably positive fee income suggests the current payout capacity warrants conservative underwriting, not multiple expansion.