Revenue volatility remains a primary concern, with net margins swinging from 47.6% in 2026Q1 to -8.5% in 2026Q4 due to non-cash valuation adjustments.
| 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 | 99.23M | 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 % | 75.48% | 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 % | 135.67% | 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 | 12.75M | 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 | 9.7% | 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 | 0 | 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 | - | 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 | 86.48M | 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 % | 65.78% | 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 % | 170.54% | 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 | 85.66M | 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 % | 65.16% | 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 % | 167.96% | 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 | 85.66M | 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 | 70.03M | 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 | 119.33M | 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 | 49.3M | 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 | 36.35M | 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 % | 27.65% | 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 | -251.67K | 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 % | -0.69% | 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 | 36.6M | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.5M | 14.04M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Net Margin % | 27.84% | 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 % | 30.33% | 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) | 36.6M | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.5M | 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 Volatility
As reported in recent quarterly filings, Saratoga Investment Corp's revenue trajectory exhibits significant quarter-over-quarter fluctuations, with the most recent period reaching $30.8M, yet the lack of consistent sequential growth suggests that the firm's ability to scale its interest-earning assets remains sensitive to broader market conditions.
The revenue profile appears heavily influenced by the timing of investment exits and the recognition of non-cash income components. Investors should monitor whether the recent revenue uptick represents sustainable portfolio expansion or merely a temporary spike driven by non-recurring fee recognition.
Based on the provided financial data, Saratoga's gross margin reached 74.2% in 2026Q4, yet historical volatility—including a negative margin period in 2024Q3—indicates that the firm's profitability is highly susceptible to unrealized valuation adjustments within its lower-middle market credit portfolio.
The wide variance in gross margins suggests that the firm's core interest income is frequently offset by mark-to-market adjustments on illiquid assets. This volatility complicates the assessment of true operational efficiency and warrants further investigation into the underlying credit quality of the loan book.
According to the income statement, Saratoga's net income has swung from a $13.9M profit in 2026Q1 to a $2.6M loss by 2026Q4, highlighting that reported earnings are frequently decoupled from core investment income due to the impact of non-cash unrealized gains and losses.
The reliance on Level 3 asset valuations introduces significant noise into the bottom line, making GAAP net income a poor proxy for dividend-paying capacity. Analysts should prioritize Net Investment Income over reported net income to better gauge the sustainability of shareholder distributions.
As evidenced by the sharp swing into negative net income in 2026Q4, the firm's reliance on fair-value accounting for its portfolio assets creates a risk where sudden credit deterioration could rapidly erode the company's reported book value and overall financial standing.
Short-term volatility in the income statement may reflect underlying credit stress that is not yet fully captured in cash interest receipts. Investors should remain cautious regarding the potential for future write-downs if the current economic environment pressures the repayment capacity of the firm's smaller borrowers.
Quick answers to the most common questions about buying SAZ stock.
Saratoga Investment Corp 8.50% (SAZ) is profitable, generating $36.6M in net income for the fiscal year ending 2026 with a net profit margin of 27.8%.
Saratoga Investment Corp 8.50% (SAZ) reported an operating income of $86.5M, resulting in an operating profit margin of 65.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Saratoga Investment Corp 8.50% (SAZ) generated $99.2M in gross profit for the year, representing a gross profit margin of 75.5%. This demonstrates the company's core pricing power and production efficiency.