Cash generation is frequently decoupled from reported earnings, as demonstrated by an erratic OCF/NI ratio that swung to -3.44 in 2026Q4, complicating the firm's ability to sustain its 13.2% dividend yield.
| 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 |
|---|
| Cash from Operations | 36.84M | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -18.64M | -36.6M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| Operating CF Margin % | 28.02% | 209.78% | -226.05% | -186.64% | -262.23% | -156.21% | -19.34% | -105.45% | -92.19% | 24.93% | -76.85% | -166.33% | -161.78% | -185.24% | -124.69% | 126.41% | -746.13% | 156.12% | -781.28% | - |
| Operating CF Growth % | -81.35% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 136.15% | 49.07% | -23.95% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
| Net Income | 36.6M | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.74M | 14.6M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Depreciation & Amortization | 0 | 5.03M | 0 | 3.59M | 4.42B | 1.37M | 1.34M | 1.19M | 990.03M | 829.48M | 913.77M | 929.77M | 903.29M | 482.31M | 674.72M | 397.16M | 10.16M | 193.46K | 502.47K | 0 |
| Stock-Based Compensation | 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 | -673.65K | 0 | 0 | -1.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -874.34K | 162.61M | -159.99M | -151.87M | -4.68B | -67.98M | -81.42M | -57.56M | -1.04B | -835.65M | -956.32M | -978.42M | -953.15M | -541.54M | -689.37M | -390.03M | 20.01M | 53.96M | -157.16M | 0 |
| Working Capital Changes | 1.11M | 1.81M | -6.15M | -6.76M | 10.46M | -10.52M | 9.2M | -1.09M | 587.24K | 1.53M | 12.26M | 1.04M | 11.59M | 7.83M | -21.34M | 4.18M | 1.47M | 3.67M | -4.97M | 130K |
| Change in Receivables | 227.89K | 2.95M | -1.78M | -3.5M | -7.25B | 8.52B | -2.56B | -2.68M | 253.04M | 1.19B | -300M | 80.65K | 1.82B | -1.76B | -59.51M | 1.81M | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 708.89K | -1.68M | -3.66M | -419.74K | -751.04M | 727.94M | -1.14B | 0 | 215.46M | 0 | 73.14M | 493.51K | 389.53M | -269.91M | -14.53K | -199.37K | 0 | -12.88M | 608.42M | 0 |
| Cash from Investing | -124.87M | 0 | 0 | 2.25B | -55.08B | -78.08B | -19.89B | -198.66B | -41.39B | 7.03B | -41.02B | -31.61B | -49.47B | -50.11B | -5.11B | 22.96B | 0 | 20.93B | -172.23B | 0 |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | 0% | - | 0% | 0% | - | - | - | 132.84% | 98.69% | 209.96% | - | 0% | 0% | - | 0% | 0% | - |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 1.11B | 978.08M | 1.14B | 972.59M | 817.57M | 554.31M | 485.63M | 402.02M | 342.69M | 250.53M | 271.17M | 223.51M | 186.28M | 0 | 95.36M | 80.04M | 89.37M | 118.91M | 188.49M | 0 |
| Other Investing | 0 | -110.64B | 215.83B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -15.19B | 0 | 0 | 0 |
| Cash from Financing | -94.91M | -33.32M | 101.64M | 173.58M | 226.09M | 52.81M | -7.5M | 88.3M | 22.47M | 8.31M | 19.19M | 35.19M | 32.67M | 35.63M | 13.3M | -20.89M | -24.18M | -31.23M | 168.16M | 0 |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 18.67M | 32.75M | 46.86M | -10.82M | 24.29M | -3.61M | 85.9M | 30.85M | 7.76M | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 15M | 0 | 0 | 108.75M | 0 |
| Dividends Paid | -52.36M | -40.75M | -32.05M | -22.67M | -18.16M | -11.27M | -17M | -12.01M | -9.01M | -6.79M | -7.91M | -1.43M | -2.51M | -3.3M | -1.97M | -1.18M | -2.07M | -11.77M | -9.62M | 0 |
| Share Repurchases | -54.31K | 0 | -2.16M | -10.82M | -2.55M | -3.61M | 0 | 0 | 0 | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 569.32K | 2.35M | -5.17M | -10.68M | -10.79M | -3.75K | -1.95M | -2.88M | -1.28M | -3.23M | -1.1M | -1.97M | -2.82M | -1.37M | -235.45K | -185.14K | -103.58K | 0 | -8.2M | 0 |
| Net Change in Cash | -182.94M | 164.22M | -55.57M | 43.21M | 22.96M | -9.54M | -22.64M | 48.32M | -8.31M | 15.05M | 552.12K | -1.41M | 3.14M | -1.18M | -9.41M | 7.38M | -3M | 5.28M | 1.07M | 0 |
| Free Cash Flow | 36.84M | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -18.64M | -36.6M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| FCF Margin % | 28.02% | 209.78% | -226.05% | -186.64% | -262.23% | -156.21% | -19.34% | -105.45% | -92.19% | 24.93% | -76.85% | -166.33% | -161.78% | -185.24% | -124.69% | 126.41% | -746.13% | 156.12% | -781.28% | - |
| FCF Growth % | -81.35% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 136.15% | 49.07% | -23.95% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
| FCF per Share | 2.32 | 14.20 | -12.41 | -10.90 | -17.73 | -5.57 | -1.63 | -5.67 | -5.11 | 1.17 | -3.34 | -6.80 | -6.00 | -8.95 | -6.61 | 11.60 | 19.95 | 44.04 | -215.26 | - |
| FCF Conversion (FCF/Net Income) | 1.01x | 7.03x | -17.60x | -5.28x | -4.44x | -4.22x | -0.27x | -2.16x | -1.74x | 0.59x | -1.60x | -3.32x | -3.47x | -2.62x | -1.71x | 1.67x | -2.02x | -1.71x | 30.65x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.27M | 2.63M | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 140.32K | 88.95K | 0 | 0 |
Portfolio Valuation and Liquidity
According to the provided quarterly data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -3.44 in 2026Q4 to 29.43 in 2025Q4, indicating that reported earnings are frequently decoupled from actual cash generation within the investment portfolio.
The extreme volatility in the OCF/NI ratio suggests that non-cash valuation adjustments and accruals are heavily influencing the bottom line. Investors should monitor whether this divergence stems from persistent PIK income recognition or significant unrealized gains that fail to materialize into distributable cash.
As reported in financial statements, SAT's free cash flow trajectory remains inconsistent, fluctuating from a peak of $94.2 million in 2025Q3 to a low of -$19.9 million in 2025Q4, reflecting the lumpy nature of investment exits and the inherent volatility of the firm's underlying asset base.
The lack of a stable FCF trend complicates the assessment of dividend sustainability, as the firm's cash flow appears highly sensitive to transactional outcomes rather than recurring interest income. This pattern warrants further investigation into the reliability of cash inflows from the CLO equity tranches.
Based on SAT's reported figures, working capital changes have been highly unpredictable, ranging from a $7.2 million inflow in 2026Q1 to a $6.4 million outflow in 2026Q2, which suggests that timing differences in interest collections and portfolio management are creating significant short-term liquidity fluctuations.
These swings in working capital appear to be a primary driver of the firm's inconsistent operating cash flow. The inability to maintain a predictable working capital cycle may indicate challenges in the timing of cash receipts from lower-middle market borrowers.
Data from recent filings reveals that dividend payments have frequently exceeded free cash flow, such as in 2026Q4 where $14.4 million was distributed against $9.0 million in FCF, raising questions about the long-term reliance on capital recycling or external financing to maintain current payout levels.
The consistent outflow of dividends despite volatile cash generation suggests that the firm may be prioritizing shareholder returns over internal capital retention. This strategy appears to place additional pressure on the balance sheet, especially during periods of negative free cash flow.
Quick answers to the most common questions about buying SAT stock.
Saratoga Investment Corp 6.00% (SAT) generated $36.8M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Saratoga Investment Corp 6.00% (SAT) generated $36.8M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Saratoga Investment Corp 6.00% (SAT) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Saratoga Investment Corp 6.00% (SAT) returned $52.4M to shareholders via cash dividends and spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.