Prospect Capital earnings missed by $0.11, revenue topped estimates
#Prospect Capital #Earnings Miss #Revenue Growth #Wall Street #Business Development Company #Quarterly Report #Investment #EPS
📌 Key Takeaways
- Prospect Capital reported an earnings per share (EPS) miss of $0.11 relative to analyst expectations.
- The company's quarterly revenue exceeded consensus estimates despite the bottom-line shortfall.
- The financial results come amid a volatile period for business development companies (BDCs) dealing with high interest rates.
- Market analysts are focusing on the causes of the earnings gap, specifically looking at operational costs and portfolio valuations.
📖 Full Retelling
Prospect Capital Corporation released its quarterly financial results on Tuesday, announcing an earnings miss that saw the firm fall short of Wall Street estimates by $0.11 per share despite recording stronger-than-expected revenue. The New York-based business development company (BDC) disclosed these mixed figures during the current earnings season to provide transparency regarding its investment performance and capital management strategies amidst a shifting interest rate environment. The report highlights a disconnect between the company's gross income generation and its bottom-line profitability during the most recent fiscal period.
While the earnings per share (EPS) lagged significantly behind analyst projections, the revenue side of the ledger provided a more optimistic outlook for investors. The company managed to surpass top-line estimates, suggesting that its underlying portfolio of investments remains robust and continues to generate substantial interest income. Analysts suggest that the earnings miss might be attributed to non-recurring expenses, shifts in the valuation of unrealized gains or losses, or increased costs associated with financing its own debt obligations in a high-rate market.
Prospect Capital, which primarily focuses on lending to middle-market companies and investing in senior secured loans, faces a complex landscape as the Federal Reserve weighs future monetary policy moves. The discrepancy between revenue growth and net earnings often signals to the market that while the firm is successful in finding deployment opportunities for its capital, the operational or interest costs are currently weighing heavily on its margins. Investors will be closely watching the company’s upcoming conference calls for further clarification on dividend sustainability and future portfolio adjustments.
🏷️ Themes
Finance, Earnings, Economy
📚 Related People & Topics
Business Development Company
Type of investment company in the United States
A Business Development Company ("BDC") is a form of unregistered closed-end investment company in the United States that invests in small and mid-sized businesses. This form of company was created by the US Congress in 1980 in the amendments to the Investment Company Act of 1940. Publicly filing fir...
Wall Street
Street in Manhattan, New York
# Wall Street **Wall Street** is a historic thoroughfare located in the Financial District of Lower Manhattan, New York City. Spanning approximately eight city blocks, it extends just under 2,000 feet (0.6 km) from Broadway in the west to South Street and the East River in the east. ### Geography ...
📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry As Claude disrupts stock market, Anthropic researcher warns ’world is in peril’ Gold, silver prices rise amid U.S.-Iran tensions, blowout January payrolls data Dow halts three-day win streak as blowout jobs data curbs rate cut bets Citi pushes back Fed rate cuts to May after blowout January jobs report (South Africa Philippines Nigeria) Prospect Capital earnings missed by $0.11, revenue topped estimates Earnings Published 02/09/2026, 04:22 PM Prospect Capital earnings missed by $0.11, revenue topped estimates 0 PSEC 0.69% Investing.com - Prospect Capital (NASDAQ: PSEC ) reported second quarter EPS of $-0.010, $0.11 worse than the analyst estimate of $0.100. Revenue for the quarter came in at $176M versus the consensus estimate of $165.69M. Prospect Capital’s stock price closed at $2.62. It is down -5.760% in the last 3 months and down -37.170% in the last 12 months. Prospect Capital saw 0 positive EPS revisions and 1 negative EPS revisions in the last 90 days. See Prospect Capital’s stock price’s past reactions to earnings here . According to InvestingPro , Prospect Capital’s Financial Health score is " fair performance ". Check out Prospect Capital’s recent earnings performance , and Prospect Capital’s financials here . Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar Prospect Capital earnings missed by $0.11, revenue topped estimates 0 Latest comments Post Comment Guidelines Trade With A Regulated Broker Indices Commodities Bonds Stocks US 30 50,164.40 +43.0 +0.09% US 500 6,943.30 +1.9 +0.03% Dow Jones 50,121.40 -66.74 -0.13% S&P 500 6,941.45 -0.36 -0.01% Nasdaq 23,066.47 -36.01 -0.16% S&P 500 VIX 17.65 -0.14 -0.79% Dollar Index 96.77 -0.040 -0.04% Crude Oil WTI Futures 64.96 +0.33 +0.51% Brent Oil Futures 69.71 +0.05 +0.07% Natural Gas Futures 3.226 -0.007 -0.22% Gold Futures 5,077.66 -20.84 -0.41% Silver Futures 82.048 -1.873 -2.23% Copper Futures 5.963...