BRIEF: Prospect Capital’s Net Asset Value Per Share Sharply Down
How Low Can You Go?
We are writing this shortly after Prospect Capital (PSEC) has reported its FY 2025 annual results through June 2025. We’ll shortly get round to the 10-K – also just published – and the upcoming conference call. Seeking Alpha – more timely than we can be – led with this headline after viewing the earnings press release:
Prospect Capital Q4 earnings fall less than expected as originations climb
SEEKING alpha – August 26, 2025
What we noticed, though, as we prepared to update the BDC NAV Change Table: PSEC’s book value has dropped dramatically – again.
This key metric had fallen 4 quarters in a row through March 2025. In the IQ 2025, the NAVPS fell (7.5%), the third worst performance amongst the 46 BDCs we track.
This most recent quarter has seen the situation get even worse. NAVPS fell (9.5%). This was the second worst performance, eclipsed only by Horizon Technology Finance’s (HRZN) (10.8%) loss.
The BDC NAV Change Table looks back over multiple periods. The most remarkable data point point is that PSEC’s NAVPS has fallen (24.9%) in just the last 12 months. (Once again, though, HRZN has stolen PSEC’s record breaking loss, off (26.0%).
We’ll be digging into just what was involved in the latest quarterly loss when we review the 10-K. Whatever the reasons – and the composition – of the losses, these are terrible results whichever period you choose to measure them over. Is there any end in sight? Have the PSEC Augean Stables been finally cleansed? You’d suspect not given the quarter after quarter of red ink, but we’ll keep an open mind when reviewing the full evidence.
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