Net interest income fell roughly 31% from $153.2M in 2024Q4 to $106.3M in 2027Q1 while non-interest income swung between +$200.7M and -$308.1M, indicating earnings quality is dominated by non-recurring mark-to-market components rather than stable recurring income.
Prospect Capital Corporation (PSEC) annual income statement — 22-year revenue, gross profit & net income history
| Metric | TTM | Jun'26 | 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 |
|---|
| Net Interest Income | 493.03M | 509.57M | 541M | 623.87M | 612.58M | 467.27M | 423.64M | 406.01M | 466.88M | 451.97M | 525.63M | 584.76M | 599.45M | 501.69M | 359.11M | 181M | -17.6M | 78.14M | 56.77M | 52.72M | 28.18M | 12.63M | 4.66M |
| NII Growth % | -16.68% | -5.81% | -13.28% | 1.84% | 31.1% | 10.3% | 4.34% | -13.04% | 3.3% | -14.01% | -10.11% | -2.45% | 19.49% | 39.7% | 98.4% | 1128.54% | -122.52% | 37.65% | 7.68% | 87.06% | 123.2% | 171.06% | - |
| Net Interest Margin % | 8.16% | 7.9% | 7.95% | 7.94% | 7.79% | 6.1% | 6.72% | 7.66% | 8.05% | 7.74% | 8.52% | 9.38% | 8.82% | 7.75% | 8.07% | 8.03% | -1.14% | 9.38% | 8.51% | 9.73% | 7.48% | 9.12% | 4.48% |
| Interest Income | 619.67M | 639.45M | 671.11M | 770.31M | 760.78M | 584.68M | 554.26M | 554.38M | 624.12M | 607.01M | 668.72M | 731.62M | 748.97M | 613.74M | 435.45M | 219.54M | 0 | 86.52M | 62.93M | 59.03M | 30.08M | 13.27M | 4.66M |
| Interest Expense | 126.64M | 129.88M | 130.11M | 146.45M | 148.2M | 117.42M | 130.62M | 148.37M | 157.23M | 155.04M | 143.09M | 146.86M | 149.53M | 112.06M | 76.34M | 38.53M | 17.6M | 8.38M | 6.16M | 6.32M | 1.9M | 642K | 0 |
| Loan Loss Provision | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 28.45M | 22.16M | 20.54M | 13.88M | 0 | 0 | 0 |
| Non-Interest Income | -88.31M | 0 | -947.94M | -302.95M | -673.48M | 155.2M | 593.44M | -387.03M | -280.28M | -118.32M | -213.23M | -426.94M | -195.63M | -137.95M | -114.22M | 23.09M | 185.94M | -24.43M | -1.52M | 4.15M | -7.03M | 4.07M | 7.97M |
| Non-Interest Income % | -21.82% | 0% | 232.94% | -94.4% | 1105.88% | 24.93% | 58.35% | -2039.25% | -150.2% | -35.46% | -68.26% | -270.53% | -48.44% | -37.93% | -46.64% | 11.31% | 110.45% | -45.48% | -2.76% | 7.29% | -33.25% | 24.38% | 63.1% |
| Total Net Revenue | 404.72M | 509.57M | -406.94M | 320.91M | -60.9M | 622.47M | 1.02B | 18.98M | 186.6M | 333.65M | 312.4M | 157.82M | 403.82M | 363.74M | 244.9M | 204.09M | 168.34M | 53.71M | 55.24M | 56.86M | 21.15M | 16.7M | 12.63M |
| Revenue Growth % | 304.77% | 225.22% | -226.81% | 626.95% | -109.78% | -38.8% | 5258.98% | -89.83% | -44.07% | 6.8% | 97.95% | -60.92% | 11.02% | 48.53% | 19.99% | 21.23% | 213.44% | -2.78% | -2.85% | 168.86% | 26.66% | 32.25% | - |
| Non-Interest Expense | 177.87M | 183.18M | 62.99M | 58.08M | 40.74M | 39.88M | 53.27M | 35.2M | 42.12M | 33.79M | 59.49M | 54.46M | 57.48M | 44.72M | 24.04M | 13.19M | 11.61M | 7.41M | 8.45M | -9.75M | -1.98M | 8.14M | 10.21M |
| Efficiency Ratio | 43.95% | 35.95% | -15.48% | 18.1% | -66.9% | 6.41% | 5.24% | 185.48% | 22.57% | 10.13% | 19.04% | 34.51% | 14.24% | 12.29% | 9.82% | 6.46% | 6.89% | 13.79% | 15.3% | -17.15% | -9.37% | 48.75% | 80.9% |
| Operating Income | 226.85M | 326.39M | -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 | 94.22M | 19.74M | 53.21M | 33.91M | 23.13M | 8.56M | 2.41M |
| Operating Margin % | 56.05% | 64.05% | 115.48% | 81.9% | 166.9% | 93.59% | 94.76% | -85.48% | 77.43% | 89.87% | 80.96% | 65.49% | 85.76% | 87.71% | 90.18% | 93.54% | 55.97% | 36.75% | 96.32% | 59.63% | 109.37% | 51.25% | 19.1% |
| Operating Income Growth % | - | 169.46% | -278.79% | 358.59% | -117.45% | -39.55% | 6040.63% | -111.23% | -51.82% | 18.57% | 144.68% | -70.16% | 8.56% | 44.45% | 15.69% | 102.61% | 377.36% | -62.9% | 56.91% | 46.6% | 170.29% | 254.96% | - |
| Pretax Income | 54.13M | 153.66M | -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 |
| Pretax Margin % | 13.37% | 30.16% | 115.48% | 81.9% | 166.9% | 93.59% | 94.76% | -85.48% | 77.43% | 89.87% | 80.96% | 65.49% | 85.76% | 87.71% | 90.18% | 93.54% | 70.24% | 36.54% | 63.55% | 48.52% | 79.1% | 77.24% | 69.31% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11.2M | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -40.61% | 0% | 0% | 0% |
| Net Income | 54.13M | 153.66M | -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 | 18.89M | 35.1M | 27.59M | 16.73M | 12.9M | 8.75M |
| Net Margin % | 13.37% | 30.16% | 115.48% | 81.9% | 166.9% | 93.59% | 94.76% | -85.48% | 77.43% | 89.87% | 80.96% | 65.49% | 85.76% | 87.71% | 90.18% | 93.54% | 70.24% | 35.16% | 63.55% | 48.52% | 79.1% | 77.24% | 69.31% |
| Net Income Growth % | 120.98% | 132.7% | -278.79% | 358.59% | -117.45% | -39.55% | 6040.63% | -111.23% | -51.82% | 18.57% | 144.68% | -70.16% | 8.56% | 44.45% | 15.69% | 61.46% | 526.06% | -46.2% | 27.23% | 64.94% | 29.71% | 47.37% | - |
| Net Income (Continuing) | 54.13M | 153.66M | -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 | 18.89M | 35.1M | 27.59M | 16.73M | 12.9M | 8.75M |
| EPS (Diluted) | 0.10 | 0.06 | -1.35 | 0.36 | -0.43 | 1.34 | 2.50 | -0.04 | 0.39 | 0.83 | 0.70 | 0.29 | 0.98 | 1.06 | 1.07 | 1.67 | 1.38 | 0.33 | 1.11 | 1.17 | 1.06 | 1.83 | 1.24 |
| EPS Growth % | 76.09% | 104.44% | -475% | 183.72% | -132.09% | -46.4% | 5768.93% | -111.31% | -53.01% | 18.57% | 141.38% | -70.41% | -7.55% | -0.93% | -35.93% | 21.01% | 318.18% | -70.27% | -5.13% | 10.38% | -42.08% | 47.58% | - |
| EPS (Basic) | - | 0.06 | -1.35 | 0.36 | -0.43 | 1.43 | 2.51 | -0.04 | 0.39 | 0.83 | 0.70 | 0.29 | 0.98 | 1.06 | 1.07 | 1.67 | 1.38 | 0.33 | 1.11 | 1.17 | 1.06 | 1.83 | 1.24 |
| Diluted Shares Outstanding | 524.47M | 479.87M | 440.31M | 417.89M | 398.51M | 433.79M | 385.97M | 368.09M | 365.98M | 361.46M | 358.84M | 356.13M | 353.65M | 300.28M | 207.07M | 114.39M | 85.98M | 59.43M | 31.56M | 23.63M | 15.72M | 7.06M | 7.06M |
Quick answers to the most common questions about buying PSEC stock.
For fiscal year 2026, Prospect Capital Corporation (PSEC) reported total revenue of $509.6M. This represents a 3936.2% increase compared to $12.6M in 2005.
Prospect Capital Corporation (PSEC) is profitable, generating $153.7M in net income for the fiscal year ending 2026 with a net profit margin of 30.2%.
Prospect Capital Corporation (PSEC) reported an operating income of $326.4M, resulting in an operating profit margin of 64.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Prospect Capital Corporation (PSEC) generated $509.6M 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
Negative EPS earnings volatility
Metrics are mathematically derived from official filings.
Net Interest Income Drifting Lower Steadily
Based on reported figures, PSEC's net interest income fell from $153.2M in 2024Q4 to $106.3M in 2027Q1, a decline of roughly 31%, which may reflect portfolio runoff or falling asset yields rather than a one-time timing effect. Investors should monitor whether this trend persists.
The consistent quarter-over-quarter contraction in NII suggests that the debt portfolio's weighted average yield may be declining faster than funding costs are adjusting, a pattern consistent with refinancing of older high-yield loans into a lower-rate environment. Because NII is the primary cover for the distribution, a sustained decline warrants further investigation into whether dividend coverage can be maintained without portfolio growth. The reported figures do not clarify whether the decline is driven by volume reduction or by yield compression, and that distinction materially changes the outlook.
Minimal Provisioning Against Volatile Portfolio Marks
As reported in financial statements, PSEC recorded provision expense of only $3.1M in 2026Q4 and $3.1M in 2026Q3, with most other quarters showing zero, which appears light relative to the scale of recent unrealized swings.
Near-zero provisioning in most periods suggests that credit deterioration is being absorbed through fair value marks on Level 3 assets rather than through explicit loss reserves, which makes the income statement less informative about underlying borrower stress. This accounting pattern may understate near-term credit risk and should be cross-checked against non-accrual rates and PIK income trends. Analysts may wish to treat the low provision figures with caution until the mark-to-market and provisioning treatment is reconciled.
Non-Interest Income Dominated by Mark Volatility
Based on PSEC's reported figures, non-interest income swung from positive $200.7M in 2026Q4 to negative $308.1M in 2025Q4, indicating that fee and investment income is driven by non-recurring mark-to-market components rather than stable recurring streams.
The sign reversals in non-interest income suggest that realized and unrealized gains or losses on CLO equity and real estate holdings are the dominant component, making reported revenue a poor proxy for recurring earnings power. Fee income quality therefore appears low, as the recurring share of total revenue is difficult to isolate from the reported figures. Investors should focus on net investment income rather than headline revenue when assessing the sustainability of the distribution.
Late 2025 Losses Mark Earnings Inflection
According to recent SEC filings, PSEC's net income swung from -$134.0M in 2025Q1 through -$195.9M in 2025Q4 to positive $88.1M in 2026Q3, a period dominated by large mark-to-market volatility rather than steady operating performance.
The cluster of large losses in late 2025 suggests a significant portfolio revaluation event, which may reflect widening credit spreads or impairments in illiquid holdings. The subsequent rebound in 2026 appears to reflect reversal of marks rather than a durable improvement in cash earnings, which warrants caution. The sequence indicates that reported net income is highly sensitive to valuation assumptions and should not be extrapolated.
Headline Revenue Growth Masks Earnings Weakness
Revenue growth of 225.2% YoY and TTM revenue of $509.6M appear inconsistent with the -$0.10 latest quarterly EPS, which may suggest that reported top-line strength is driven by non-cash components.
A 30.2% net margin and 4.1% ROE sit uneasily beside repeated negative EPS prints, which suggests the headline metrics may overstate distributable earnings. The EPS miss against a $0.10 consensus estimate, following a prior quarter miss, indicates persistent difficulty in covering operating costs and distributions from recurring income. Investors should treat revenue growth with skepticism until the composition of income is clarified.