Gross margins have exhibited extreme volatility, fluctuating from a negative 9.5% in 2024Q3 to a peak of 56.3% in 2026Q3, reflecting the inherent unpredictability of BDC investment income.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 |
|---|
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 0 | 42.1M | 20.36M | 36.35M | 57.58M | 26.32M | 63.61M | 24.79M | 22.44M | 17.15M | 15.8M | 14.63M | 12.17M | 17.33M | 16.91M | 19.76M | -6.93M | 20.78M | 16.36M | 0 |
| Gross Margin % | - | 44.71% | 29.28% | 52.04% | 74.33% | 65.96% | 81.25% | 65.38% | 67.23% | 63.43% | 65.14% | 66.48% | 66.66% | 87.22% | 92.87% | 88.32% | 244.33% | 88.86% | 76.48% | - |
| Gross Profit Growth % | -100% | 106.75% | -43.98% | -36.87% | 118.74% | -58.62% | 156.63% | 10.44% | 30.87% | 8.53% | 8.01% | 20.24% | -29.8% | 2.47% | -14.39% | 384.91% | -133.37% | 27.07% | - | - |
| Operating Expenses | 88.91B | 10.14M | 8.66M | 9.6M | 9.06M | 6.38M | 7.26M | 5.54M | 4.78M | 5.72M | 4.04M | 3.33M | 3.67M | 3.29M | 3.64M | 2.8M | 3.5M | 6.82M | 21.72M | 90K |
| OpEx % of Revenue | 70.72% | 10.77% | 12.46% | 13.74% | 11.7% | 16% | 9.28% | 14.6% | 14.32% | 21.14% | 16.66% | 15.12% | 20.11% | 16.54% | 19.98% | 12.51% | -123.4% | 29.14% | 101.55% | - |
| Selling, General & Admin | 5.04B | 9.34M | 8.55M | 8.01M | 6.63M | 6.26M | 5.68M | 5.54M | 4.78M | 4.26M | 4.04M | 3.33M | 3.67M | 3.29M | 3.64M | 5.69M | 4.17M | 6.66M | 5.44M | 100K |
| SG&A % of Revenue | 4.01% | 9.92% | 12.3% | 11.47% | 8.56% | 15.67% | 7.25% | 14.6% | 14.32% | 15.77% | 16.66% | 15.13% | 20.11% | 16.54% | 19.98% | 25.45% | -147% | 28.48% | 25.44% | - |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | -138.17M | 31.97M | 11.7M | 26.76M | 48.52M | 19.94M | 56.35M | 19.25M | 17.66M | 11.43M | 11.76M | 11.3M | 8.5M | 14.04M | 13.28M | 16.96M | -10.44M | 13.97M | -5.36M | -130K |
| Operating Margin % | -0.11% | 33.95% | 16.82% | 38.31% | 62.63% | 49.96% | 71.97% | 50.77% | 52.92% | 42.28% | 48.48% | 51.36% | 46.56% | 70.68% | 72.9% | 75.81% | 367.69% | 59.72% | -25.07% | - |
| Operating Income Growth % | -532.24% | 173.22% | -56.27% | -44.85% | 143.32% | -64.61% | 192.72% | 8.97% | 54.51% | -2.78% | 4.06% | 33% | -39.5% | 5.79% | -21.72% | 262.51% | -174.72% | 360.46% | -4024.78% | - |
| EBITDA | -138.17M | 31.97M | 11.7M | 26.76M | 48.52M | 19.94M | 56.35M | 19.25M | 17.66M | 11.43M | 11.76M | 11.3M | 8.5M | 14.04M | 13.28M | 16.96M | -276.71K | 42.12M | -4.86M | -130K |
| EBITDA Margin % | -0.11% | 33.95% | 16.82% | 38.31% | 62.63% | 49.96% | 71.97% | 50.77% | 52.92% | 42.28% | 48.48% | 51.36% | 46.56% | 70.68% | 72.9% | 75.81% | 9.75% | 180.1% | -22.72% | - |
| EBITDA Growth % | -532.24% | 173.22% | -56.27% | -44.85% | 143.32% | -64.61% | 192.72% | 8.97% | 54.51% | -2.78% | 4.06% | 33% | -39.5% | 5.79% | -21.72% | 6228.48% | -100.66% | 966.73% | -3638.26% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.16M | 28.15M | 502.47K | 0 |
| EBIT | -138.17M | 31.97M | 11.7M | 26.76M | 48.52M | 19.94M | 56.35M | 19.25M | 17.66M | 11.43M | 11.76M | 11.3M | 8.5M | 14.04M | 13.28M | 16.96M | -10.44M | 13.97M | -5.36M | 0 |
| Net Interest Income | 0 | 85.49M | 81.12M | 53.09M | 38.62M | 38.14M | 33.9M | 30.24M | 24.2M | 19.49M | 18.42M | 17.31M | 14.1M | 11.91M | 9.96M | 9.44M | 9.23M | 18.54M | 15.71M | 0 |
| Interest Income | 0 | 137.55M | 130.3M | 86.59M | 58.51M | 51.73M | 48.58M | 43.36M | 35.14M | 29.38M | 26.88M | 24.69M | 20.19M | 14.45M | 11.26M | 12.05M | 13.32M | 21.14M | 20.74M | 0 |
| Interest Expense | 49.3B | 52.06M | 49.18M | 33.5M | 19.88M | 13.59M | 14.68M | 13.13M | 10.94M | 9.89M | 8.46M | 7.38M | 6.08M | 2.54M | 1.3M | 2.61M | 4.1M | 2.61M | 5.03M | 0 |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | -138.17M | 31.97M | 11.7M | 26.76M | 48.52M | 19.94M | 56.35M | 19.25M | 17.66M | 11.43M | 11.76M | 11.3M | 8.5M | 14.04M | 13.28M | 16.96M | -10.44M | -21.17M | -5.36M | -130K |
| Pretax Margin % | -0.11% | 33.95% | 16.82% | 38.31% | 62.63% | 49.96% | 71.97% | 50.77% | 52.92% | 42.28% | 48.48% | 51.36% | 46.56% | 70.68% | 72.9% | 75.81% | 367.69% | -90.54% | -25.07% | - |
| Income Tax | -138.17M | 3.88M | 2.77M | 2.08M | 2.78M | 5.16M | 607.65K | 739.72K | -14.74K | 44.77K | 113.81K | 293.65K | 0 | 0 | 0 | 0 | 27.45K | 140.32K | 88.95K | 0 |
| Effective Tax Rate % | 100% | 12.14% | 23.64% | 7.78% | 5.73% | 25.89% | 1.08% | 3.84% | -0.08% | 0.39% | 0.97% | 2.6% | 0% | 0% | 0% | 0% | -0.26% | -0.66% | -1.66% | 0% |
| Net Income | 0 | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.5M | 14.04M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Net Margin % | - | 29.83% | 12.85% | 35.33% | 59.04% | 37.03% | 71.19% | 48.82% | 52.96% | 42.12% | 48.01% | 50.02% | 46.56% | 70.68% | 72.9% | 75.81% | 368.66% | -91.14% | -25.49% | - |
| Net Income Growth % | -100% | 214.38% | -63.8% | -46.05% | 209.5% | -73.49% | 201.14% | 4.7% | 55.25% | -2.22% | 5.8% | 29.54% | -39.5% | 5.79% | -21.72% | 262.08% | 50.91% | -291.02% | -4093.2% | - |
| Net Income (Continuing) | 0 | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.5M | 14.04M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Discontinued Operations | 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 |
| EPS (Diluted) | 2.31 | 2.02 | 0.71 | 2.06 | 3.99 | 1.32 | 5.98 | 2.63 | 2.93 | 1.98 | 2.09 | 2.04 | 1.73 | 3.42 | 3.87 | 6.96 | -9.86 | -25.71 | -7.02 | -0.21 |
| EPS Growth % | 14.36% | 184.51% | -65.53% | -48.37% | 202.27% | -77.93% | 127.38% | -10.24% | 47.98% | -5.26% | 2.45% | 17.92% | -49.42% | -11.63% | -44.4% | 170.59% | 61.65% | -266.24% | -3242.86% | - |
| EPS (Basic) | 2.31 | 2.02 | 0.71 | 2.06 | 3.99 | 1.32 | 5.98 | 2.63 | 2.93 | 1.98 | 2.09 | 2.04 | 1.73 | 3.42 | 3.87 | 6.96 | -9.86 | -25.71 | -7.02 | -0.21 |
| Diluted Shares Outstanding | 15.85M | 13.91M | 12.67M | 11.96M | 11.46M | 11.19M | 9.32M | 7.05M | 6.02M | 5.74M | 5.58M | 5.39M | 4.92M | 4.11M | 3.43M | 2.44M | 1.06M | 829.14K | 776.2K | 621.88K |
| Basic Shares Outstanding | 15.85M | 13.91M | 12.67M | 11.96M | 11.46M | 11.19M | 9.32M | 7.05M | 6.02M | 5.74M | 5.58M | 5.39M | 4.92M | 4.11M | 3.43M | 2.44M | 1.06M | 829.14K | 776.2K | 621.88K |
| Dividend Payout Ratio | - | 145.08% | 358.79% | 91.85% | 39.7% | 76.24% | 30.5% | 64.9% | 50.98% | 59.59% | 67.89% | 13.03% | 29.51% | 23.46% | 14.81% | 6.96% | - | - | - | - |
Portfolio Valuation Sensitivity
As evidenced by the quarterly income statement data, Saratoga's gross margin has fluctuated significantly, reaching a low of negative 9.5% in 2024Q3 before recovering to 56.3% by 2026Q3, highlighting the inherent sensitivity of BDC investment income to underlying credit performance and asset valuation adjustments.
The wide variance in margin performance suggests that Saratoga's profitability is highly susceptible to non-accrual events and the fair value adjustments of its Level 3 assets. Investors should monitor whether the recent stabilization in margins reflects a sustainable improvement in credit quality or merely a temporary reprieve from valuation volatility.
Based on reported financial figures, Saratoga's operating income has demonstrated inconsistent scaling relative to gross profit, with SG&A expenses occasionally consuming a substantial portion of top-line gains, as seen in the 2026Q4 period where operating expenses significantly outpaced the company's ability to generate core investment income.
The erratic relationship between operating expenses and investment income suggests that the firm faces challenges in achieving consistent operating leverage. This lack of scalability may indicate that the fixed costs associated with managing a lower-middle-market portfolio are disproportionately high relative to the current asset base.
According to the provided income statement history, Saratoga's net income has experienced extreme swings, including a notable loss of $676.8K in 2025Q4, which underscores the difficulty in relying on quarterly EPS as a consistent indicator of the firm's underlying economic earning power.
The frequent divergence between operating income and net income suggests that non-operating items and valuation adjustments play a disproportionate role in the bottom line. Analysts should exercise caution when interpreting these figures, as they may not accurately reflect the recurring cash-generating capacity of the loan portfolio.
As reported in recent financial filings, the reliance on Level 3 asset valuations creates a significant risk that the firm's reported net asset value may not be fully realizable, a concern that short-sellers often highlight when questioning the quality of earnings in the BDC sector.
The potential for aggressive internal valuation models to mask underlying credit deterioration warrants further investigation by market participants. If the portfolio's fair value estimates are overly optimistic, the firm may face future write-downs that would severely impact both book value and the sustainability of the dividend.
Quick answers to the most common questions about buying SAR stock.
Saratoga Investment Corp. (SAR) reported a net loss of $0.0M for the fiscal year ending 2026.
Saratoga Investment Corp. (SAR) reported an operating income of $-138.2M, resulting in an operating profit margin of -0.1%. This margin reflects the operational efficiency of the business before interest and taxes.