Revenue remains highly erratic, swinging from a positive $121.5 million in 2026Q1 to a negative $149.6 million in 2025Q4, reflecting significant mark-to-market volatility in the investment portfolio.
| 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 |
|---|
| Sales/Revenue | 99.36M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | -23.14M | -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 | 129.84M | 31.55M | 34.7M | 42.98M | 21.15M | 16.7M | 12.63M |
| Gross Margin % | -23.29% | 147% | 68.66% | -69.76% | 84.13% | 88.62% | 11.34% | 54.27% | 68.27% | 68.59% | 51.8% | 72.98% | 76.45% | 76.24% | 84.12% | 69.83% | 50.81% | 56.51% | 68.03% | 91.74% | 96.3% | 100% |
| Gross Profit Growth % | - | -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% | 57.18% | 311.58% | -9.08% | -19.27% | 103.23% | 26.66% | 32.25% | - |
| Operating Expenses | -17.01M | 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 |
| OpEx % of Revenue | - | -22.75% | 12.43% | 46.67% | 5.39% | 4.64% | 21.04% | 12.25% | 6.91% | 13.06% | 17.87% | 10.39% | 9.4% | 7.48% | 5.43% | 6.24% | 11.93% | 13.76% | -15.43% | -8.6% | 46.94% | 80.9% |
| Selling, General & Admin | 24.86M | 45.79M | 44.03M | 40.56M | 29.73M | 29.76M | 32.5M | 33.63M | 26.2M | 31.82M | 31.53M | 29.89M | 30.87M | 17.54M | 13.19M | 11.61M | 7.41M | 7.92M | 7.77M | 4.42M | 3.8M | 3.85M |
| SG&A % of Revenue | - | -16.54% | 9.42% | 46.46% | 4.02% | 2.59% | 19.42% | 9.78% | 5.36% | 6.99% | 10.35% | 5.4% | 6.49% | 5.46% | 5.43% | 6.24% | 11.93% | 12.9% | 12.3% | 19.18% | 21.92% | 30.49% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -6.13M | -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 % | -6.17% | 169.75% | 56.24% | -116.42% | 78.74% | 83.98% | -9.69% | 42.02% | 61.36% | 55.52% | 33.92% | 62.59% | 67.05% | 68.75% | 78.68% | 50.67% | 31.79% | 86.65% | 53.67% | 100.34% | 49.36% | 19.1% |
| Operating Income Growth % | - | -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% | - |
| EBITDA | -6.21M | -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 | 135.84M | -19.45M | 35.31M | 34.64M | 24.39M | 7.65M | 2.41M |
| EBITDA Margin % | -6.26% | 169.75% | 56.24% | -116.42% | 78.74% | 83.98% | -9.69% | 42.02% | 61.36% | 55.52% | 33.92% | 62.59% | 67.05% | 68.75% | 78.68% | 73.05% | -31.32% | 57.51% | 54.82% | 105.83% | 44.11% | 19.1% |
| EBITDA Growth % | 97.46% | -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% | 40.54% | 798.57% | -155.07% | 1.95% | 41.98% | 218.97% | 217.21% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41.62M | -39.18M | -17.9M | 727K | 1.26M | -910K | 0 |
| EBIT | -6.21M | -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 | 19.74M | 53.21M | 33.91M | 23.13M | 8.56M | 2.41M |
| Net Interest Income | 488.68M | 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 |
| Interest Income | 608.1M | 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 | 119.43M | 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 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax 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 |
| Pretax Margin % | -38% | 169.75% | 56.24% | -116.42% | 78.74% | 83.98% | -9.69% | 42.02% | 61.36% | 55.52% | 33.92% | 62.59% | 67.05% | 68.75% | 78.68% | 63.59% | 31.61% | 57.17% | 43.67% | 72.57% | 74.38% | 69.31% |
| Income Tax | 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% | -40.61% | 0% | 0% | 0% |
| 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 | 18.89M | 35.1M | 27.59M | 16.73M | 12.9M | 8.75M |
| Net Margin % | -38% | 169.75% | 56.24% | -116.42% | 78.74% | 83.98% | -9.69% | 42.02% | 61.36% | 55.52% | 33.92% | 62.59% | 67.05% | 68.75% | 78.68% | 63.59% | 30.42% | 57.17% | 43.67% | 72.57% | 74.38% | 69.31% |
| Net Income Growth % | 84.56% | -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) | -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 | 18.89M | 35.1M | 27.59M | 16.73M | 12.9M | 8.75M |
| Discontinued Operations | 0 | 0 | 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 | 0 | 0 |
| EPS (Diluted) | -0.08 | -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 % | 68.38% | -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) | - | -1.35 | 0.50 | -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 | 472.26M | 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 |
| Basic Shares Outstanding | 483.41M | 440.31M | 424.85M | 398.51M | 390.57M | 382.71M | 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 |
| Dividend Payout Ratio | - | - | 137.08% | - | 46.4% | 20.29% | - | 169.63% | 85.34% | 131.92% | 325.69% | 119.78% | 118.2% | 109.71% | 66.82% | 77.17% | 438.99% | 123.23% | 90.3% | 129.33% | 59.42% | 30.24% |
Portfolio Valuation Volatility
As evidenced by the quarterly income statement data, PSEC's revenue trajectory remains highly erratic, with figures swinging from a positive $121.5M in 2026Q1 to a negative $149.6M in 2025Q4, reflecting significant mark-to-market adjustments on the firm's complex investment portfolio rather than consistent operational growth.
The extreme fluctuations in top-line revenue suggest that PSEC's performance is heavily tethered to the valuation of its Level 3 assets, particularly CLO equity and real estate holdings. Investors should monitor whether these swings represent temporary accounting noise or a fundamental erosion of the underlying asset base's ability to generate recurring interest and rental income.
Based on reported financial statements, PSEC exhibits anomalous gross margin figures, including a 120.3% margin in 2025Q4, which highlights the inherent difficulty in applying traditional manufacturing-style margin analysis to a BDC whose income is dominated by non-cash unrealized gains and losses on investment holdings.
The reported margins appear to be mathematical artifacts of BDC accounting rather than indicators of operational efficiency or pricing power. A deeper analysis suggests that these figures may obscure the true cost of capital and the sustainability of the firm's net investment income, warranting caution when comparing these metrics against more traditional lending peers.
According to recent SEC filings, PSEC's net income is frequently decoupled from cash-generating activities, as evidenced by the $195.9M net loss reported in 2025Q4, which was driven primarily by unrealized depreciation rather than a failure of the core lending business to collect contractual interest payments.
The reliance on mark-to-market adjustments creates a disconnect between reported EPS and the actual cash available for dividend distributions. This structure suggests that investors should prioritize Net Investment Income (NII) over GAAP net income to better gauge the firm's ability to sustain its payout policy without eroding its net asset value.
Data from the income statement indicates that PSEC's reliance on complex financing, including preferred stock and unsecured notes, creates a rigid cost structure that may struggle to adapt if portfolio yields compress, as seen in the negative operating margins reported during several recent quarterly periods.
Short-sellers may focus on the potential for a 'scissors effect' where the cost of fixed-income obligations remains elevated while the yield on the underlying portfolio faces downward pressure from refinancing activity. This dynamic suggests that the firm's dividend coverage may be more fragile than headline yield figures imply, necessitating a closer look at the sustainability of its current leverage profile.
Quick answers to the most common questions about buying PSEC stock.
Prospect Capital Corporation (PSEC) reported a net loss of $469.9M for the fiscal year ending 2025.
Prospect Capital Corporation (PSEC) reported an operating income of $-469.9M, resulting in an operating profit margin of 169.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Prospect Capital Corporation (PSEC) generated $-406.9M in gross profit for the year, representing a gross profit margin of 147.0%. This demonstrates the company's core pricing power and production efficiency.