Revenue growth has stalled from a $37.0M peak in 2024Q1 to $15.5M in 2026Q1, while gross margins have experienced extreme fluctuations, including a negative 57.8% in 2025Q4.
| Sales/Revenue | 61.03M | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 20.43M | 94.66M | 52.31M | 109.18M | -72.84M | 20.92M | 19.49M |
| Gross Margin % | 33.48% | 85.13% | 47.42% | 71.05% | 147.48% | 70.83% | 79.71% |
| Gross Profit Growth % | - | 80.94% | -52.08% | 249.88% | -448.12% | 7.36% | - |
| Operating Expenses | 41.87M | 47.77M | 4.65M | 1.34M | 1.64M | 1.87M | -11.98M |
| OpEx % of Revenue | - | 42.96% | 4.21% | 0.88% | -3.32% | 6.31% | -49.01% |
| Selling, General & Admin | 1.05B | 4.19B | 4.7M | 2.4M | 2.68M | 2.66M | 1 |
| SG&A % of Revenue | - | 3763.84% | 4.26% | 1.56% | -5.42% | 9.01% | 0% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | -21.43M | 46.89M | 47.67M | 107.84M | -74.48M | 19.06M | 31.47M |
| Operating Margin % | -35.12% | 42.17% | 43.21% | 70.18% | 150.8% | 64.52% | 128.73% |
| Operating Income Growth % | - | -1.63% | -55.8% | 244.78% | -490.78% | -39.44% | - |
| EBITDA | -21.43M | 1.78B | 47.67M | 107.84M | -74.48M | 19.06M | 24.45M |
| EBITDA Margin % | -35.12% | 1600.09% | 43.21% | 70.18% | 150.8% | 64.52% | 100% |
| EBITDA Growth % | -230.73% | 3632.72% | -55.8% | 244.78% | -490.78% | -22.05% | - |
| D&A (Non-Cash Add-back) | 0 | 1.73B | 0 | 0 | 0 | 0 | -7.02M |
| EBIT | -21.43M | 46.89M | 47.67M | 107.84M | -74.48M | 19.06M | 31.47M |
| Net Interest Income | 68.13M | 68.21B | 80.63M | 63.26M | 50.25M | 30.28M | 0 |
| Interest Income | 115.8M | 118.27B | 138.63M | 107.74M | 73.71M | 38.9M | 0 |
| Interest Expense | 47.67M | 50.06B | 58.01M | 44.48M | 23.45M | 8.62M | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | -32.02M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M | 26.73M |
| Pretax Margin % | -52.46% | -2.85% | 43.21% | 70.18% | 150.8% | 64.52% | 109.34% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -32.02M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M | 26.73M |
| Net Margin % | -52.46% | -2.85% | 43.21% | 70.18% | 150.8% | 64.52% | 109.34% |
| Net Income Growth % | -295.27% | -106.65% | -55.8% | 244.78% | -490.78% | -28.71% | - |
| Net Income (Continuing) | -32.02M | -3.17M | 47.67M | 107.84M | -74.48M | 19.06M | 26.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -1.03 | -0.10 | 1.46 | 3.31 | -3.22 | 0.59 | 0.83 |
| EPS Growth % | -189.66% | -106.75% | -55.89% | 202.8% | -645.76% | -28.92% | - |
| EPS (Basic) | - | -0.10 | 1.46 | 3.31 | -2.32 | 0.59 | 0.83 |
| Diluted Shares Outstanding | 31.19M | 32.13M | 32.6M | 32.55M | 32.12M | 32.12M | 32.12M |
| Basic Shares Outstanding | 31.19M | 32.13M | 32.6M | 32.55M | 32.12M | 32.12M | 32.12M |
| Dividend Payout Ratio | - | - | - | 31.45% | - | 32.99% | - |
Portfolio Valuation Volatility
According to the latest quarterly income statement, PSBD's revenue trajectory has stalled, with recent figures showing significant volatility compared to the $37.0M peak observed in 2024Q1, suggesting that the firm is struggling to maintain consistent interest income generation in the current interest rate environment.
The erratic revenue performance indicates that the company's investment portfolio may be undergoing a period of transition or that market conditions are limiting the deployment of capital into high-yielding assets. Investors should monitor whether this lack of top-line momentum reflects a deliberate defensive posture or an inability to source attractive credit opportunities.
As reported in financial statements, PSBD's gross margins have experienced extreme fluctuations, dropping to a negative 57.8% in 2025Q4 and remaining under pressure, which highlights the sensitivity of the firm's profitability to mark-to-market adjustments on its underlying broadly syndicated loan portfolio.
The wide variance in gross margins suggests that the firm's profitability is heavily influenced by non-cash accounting adjustments rather than pure interest spread management. This volatility warrants further investigation into the specific credit quality of the assets held, as persistent margin compression may indicate underlying credit deterioration.
Based on the provided income statement data, PSBD's operating leverage appears compromised, as evidenced by the 2026Q1 period where SG&A expenses surged to $1.1B, resulting in a significant operating loss that far outpaces the firm's historical ability to generate consistent operating income.
The inability to scale operating income relative to overhead suggests that the current management fee structure or administrative costs are disproportionate to the firm's current revenue-generating capacity. This misalignment may continue to weigh on net income until the portfolio reaches a more efficient scale.
Analysis of the reported figures reveals that PSBD's net income is frequently distorted by non-operating items, with the 2026Q1 net loss of $37.2M highlighting the impact of unrealized portfolio devaluations on the bottom line, which complicates the assessment of the firm's true cash-generating potential.
The reliance on GAAP net income as a performance metric appears misleading given the significant impact of unrealized gains and losses. Analysts should focus on core net investment income to better understand the underlying cash flow stability, as the current headline figures may overstate the severity of operational underperformance.
While the firm maintains a conservative debt-to-equity profile, the recent trend of negative net margins suggests that the market's skepticism regarding PSBD's asset valuation is well-founded, as the portfolio's reliance on broadly syndicated loans leaves it vulnerable to secondary market liquidity shocks.
Short-term volatility in net income may not be merely accounting noise but a signal of structural credit stress within the portfolio. If the firm fails to stabilize its net margins, the current valuation may face further downward pressure as investors demand a higher risk premium for the perceived lack of credit discipline.
Quick answers to the most common questions about buying PSBD stock.
Palmer Square Capital BDC Inc. (PSBD) reported a net loss of $3.2M for the fiscal year ending 2025.
Palmer Square Capital BDC Inc. (PSBD) reported an operating income of $46.9M, resulting in an operating profit margin of 42.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Palmer Square Capital BDC Inc. (PSBD) generated $94.7M in gross profit for the year, representing a gross profit margin of 85.1%. This demonstrates the company's core pricing power and production efficiency.