Cash conversion efficiency remains a primary concern, as evidenced by an OCF/NI ratio that reached an extreme -4219.74 in 2025Q2, indicating a persistent decoupling of accounting income from actual cash generation.
| Metric | TTM | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 | Jun'10 | Jun'09 | Jun'08 | Jun'07 | Jun'06 | Jun'05 |
|---|
| Cash from Operations | 412.66M | 523.17M | 279.98M | -220.85M | -795.34M | 31.02M | 429.44M | 223.84M | 369.11M | 376.2M | 861.87M | 45.46M | -1.73B | -1.79B | -229.41M | -581.61M | 54.84M | -74M | -204.03M | -143.89M | -29.92M | -84.73M |
| Operating CF Margin % | - | -188.99% | 59.91% | -252.96% | -107.5% | 2.7% | 256.62% | 65.1% | 75.53% | 82.59% | 282.88% | 8.22% | -362.6% | -556.02% | -94.56% | -312.79% | 88.32% | -120.52% | -322.93% | -624.2% | -172.55% | -671.12% |
| Operating CF Growth % | -143.76% | 86.86% | 226.78% | 72.23% | -2664.04% | -92.78% | 91.85% | -39.36% | -1.89% | -56.35% | 1795.72% | 102.64% | 3.41% | -678.57% | 60.56% | -1160.59% | 174.11% | 63.73% | -41.79% | -380.93% | 64.69% | - |
| Net Income | -37.75M | -469.92M | 262.83M | -101.64M | 582.58M | 963.81M | -16.22M | 144.49M | 299.86M | 252.91M | 103.36M | 346.34M | 319.02M | 220.86M | 190.9M | 118.24M | 19.63M | 35.1M | 27.59M | 16.73M | 12.9M | 8.75M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 727K | 1.26M | -910K | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 467.37M | 1.06B | 17.28M | -112.25M | -1.38B | -937.42M | 433.55M | 93.72M | 130.91M | 79.7M | 725.39M | -337.39M | -2.01B | -2.01B | -417.6M | -700.19M | 32.34M | -114.61M | -160.53M | -164.4M | -77.81M | -93.87M |
| Working Capital Changes | -16.96M | -62.13M | -132K | -6.96M | 1.81M | 4.64M | 12.11M | -14.37M | -61.67M | 43.6M | 33.12M | 36.52M | -32.84M | 4.08M | -2.72M | 347K | 2.87M | 5.51M | -71.81M | 2.52M | 35.9M | 386K |
| Change in Receivables | -14.41M | -31.46M | -4.47M | -10.7M | 11.82M | -12.61M | 16.95M | -5.06M | -14.27M | 1.94M | 11M | 1.29M | 2.68M | -12.26M | -5.47M | -3.76M | 2.21M | 4.82M | -4.68M | -1.86M | -2.03M | -407K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -167.25M | 0 | 0 |
| Change in Payables | -17.31M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.41M | 768K | 842K |
| Cash from Investing | 139.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -106.59M | 0 | 0 | 0 | 0 | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | 0% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Acquisitions | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 6.3B | 0 | 0 | 0 | 0 | 4.4B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.58B | 886.23M | 744.64M | 530.53M | 0 | 271.15M | 158.23M |
| Other Investing | 279.93M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.76B | 701.56M |
| Cash from Financing | -572.62M | -558.25M | -289.76M | 281.13M | 767.09M | -11.97M | -491.98M | -200.5M | -603.43M | -375.92M | -654.1M | -69.66M | 1.66B | 1.87B | 289.21M | 582.02M | 42.89M | 83.39M | 204.58M | 143.89M | 20.33M | 94.31M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 57.01M | 127.22M | 234.48M | 758.5M | 559.88M | 125.87M | 6.15M | 0 | 0 | 0 | -34.14M | 146.09M | 973.83M | 1.12B | 177.7M | 381.32M | 158M | 100.3M | 140.25M | 197.56M | 0 | 98.42M |
| Dividends Paid | -327.1M | -332.39M | -360.29M | -299.14M | -270.3M | -195.57M | -239.95M | -245.1M | -255.91M | -333.62M | -336.64M | -414.83M | -377.07M | -242.3M | -127.56M | -91.25M | -82.91M | -43.26M | -24.91M | -21.63M | -7.66M | -2.65M |
| Share Repurchases | -8.48M | -2.17M | -11.3M | -580K | 0 | 0 | 0 | 0 | 0 | 0 | -34.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -3.95M | -4.31M | -8.73M | -19.29M | -17.48M | -20.14M | -7.9M | -28.73M | -12.48M | -10.01M | -6.85M | -7.44M | -30.43M | -29.96M | -18.36M | -14.45M | -7.71M | -7.29M | -1.92M | -3.53M | -505K | -1.46M |
| Net Change in Cash | -19.91M | -35.08M | -9.77M | 60.28M | -28.25M | 19.05M | -62.54M | 23.34M | -234.32M | 285K | 207.77M | -24.2M | -69.01M | 82.04M | 59.8M | 411K | -8.86M | 9.39M | 555K | 0 | -9.59M | 9.59M |
| Free Cash Flow | 412.66M | 523.17M | 279.98M | -220.85M | -795.34M | 31.02M | 429.44M | 223.84M | 369.11M | 376.2M | 861.87M | 45.46M | -1.73B | -1.79B | -229.41M | -581.61M | 54.84M | -74M | -204.03M | -143.89M | -29.92M | -84.73M |
| FCF Margin % | 415.33% | -188.99% | 59.91% | -252.96% | -107.5% | 2.7% | 256.62% | 65.1% | 75.53% | 82.59% | 282.88% | 8.22% | -362.6% | -556.02% | -94.56% | -312.79% | 88.32% | -120.52% | -322.93% | -624.2% | -172.55% | -671.12% |
| FCF Growth % | -37.34% | 86.86% | 226.78% | 72.23% | -2664.04% | -92.78% | 91.85% | -39.36% | -1.89% | -56.35% | 1795.72% | 102.64% | 3.41% | -678.57% | 60.56% | -1160.59% | 174.11% | 63.73% | -41.79% | -380.93% | 64.69% | - |
| FCF per Share | 0.87 | 1.19 | 0.67 | -0.55 | -1.83 | 0.08 | 1.17 | 0.61 | 1.02 | 1.05 | 2.42 | 0.13 | -5.75 | -8.63 | -2.01 | -6.76 | 0.92 | -2.34 | -8.64 | -9.15 | -4.24 | -12.01 |
| FCF Conversion (FCF/Net Income) | -10.93x | -1.11x | 1.07x | 2.17x | -1.37x | 0.03x | -26.47x | 1.55x | 1.23x | 1.49x | 8.34x | 0.13x | -5.41x | -8.09x | -1.20x | -4.92x | 2.90x | -2.11x | -7.39x | -8.60x | -2.32x | -9.68x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.1M | 0 | 5.01M | 4.94M | 639K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Portfolio Valuation Volatility
As reported in financial statements, PSEC's operating cash flow frequently diverges from net income, with the OCF/NI ratio reaching an extreme -4219.74 in 2025Q2, illustrating that accounting net income is a poor proxy for the actual cash-generating capacity of the firm's underlying investment portfolio.
The persistent disconnect between net income and operating cash flow suggests that non-cash mark-to-market adjustments on Level 3 assets are significantly distorting reported profitability. Investors should monitor this gap, as it indicates that the firm's reported earnings may not reflect the actual liquidity available to support dividend distributions.
Based on PSEC's reported figures, free cash flow has exhibited extreme volatility, swinging from a high of $279.0M in 2026Q1 to a negative $22.3M in 2024Q3, which complicates the firm's ability to maintain consistent dividend payouts without relying on external financing or capital recycling.
The erratic nature of FCF suggests that the company's cash flow profile is highly sensitive to the timing of investment exits and interest collections. This instability warrants further investigation into whether the current dividend policy is supported by recurring cash flows or if it is increasingly reliant on non-recurring capital events.
According to recent SEC filings, PSEC's working capital changes have been highly erratic, including a $63.4M inflow in 2025Q1 followed by a $67.9M outflow in 2025Q2, suggesting that the firm's internal cash management is subject to significant fluctuations in portfolio-level liquidity and timing.
These large swings in working capital appear to reflect the underlying volatility of the BDC's investment assets rather than operational efficiency. Such fluctuations may indicate that the firm is struggling to normalize its cash inflows, potentially creating periods of liquidity pressure that could impact its ability to meet fixed obligations.
As evidenced by the quarterly cash flow data, PSEC consistently pays out dividends that often exceed its quarterly operating cash flow, such as the $91.9M dividend payment in 2026Q3 against only $55.7M in operating cash flow, highlighting a structural reliance on capital recycling.
The persistent trend of dividend payments exceeding operating cash flow suggests that the firm may be distributing capital that is not strictly derived from core investment income. This strategy appears to prioritize yield maintenance at the potential expense of long-term balance sheet health and capital preservation.
Quick answers to the most common questions about buying PSEC stock.
Prospect Capital Corporation (PSEC) generated $523.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Prospect Capital Corporation (PSEC) generated $523.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Prospect Capital Corporation (PSEC) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Prospect Capital Corporation (PSEC) returned $332.4M to shareholders via cash dividends and spent $2.2M on share repurchases. This shows the company's commitment to returning capital to its equity investors.