Saratoga Investment Earnings Call Transcripts
Fiscal Year 2026
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Strong originations and disciplined underwriting drove AUM growth and robust credit quality, with only 1.2% of assets on non-accrual and a 9.1% ROE, more than double the industry average. Liquidity and capital strength support continued portfolio expansion.
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NAV grew 10.2% year-over-year to $413 million, with adjusted NII per share up sequentially but down year-over-year due to lower rates and repayments. Portfolio quality remains strong, with only one non-accrual, and management is cautiously deploying significant available capital amid a competitive and volatile market.
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NAV and portfolio value increased, but adjusted NII and yields declined due to lower rates and repayments. Portfolio quality remains strong with minimal non-accruals, and significant liquidity is available for future investments. Dividend maintained, with management focused on disciplined growth and capital deployment.
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Adjusted NII per share rose 17.9% sequentially, with NAV and return on equity both increasing and outperforming industry averages. Portfolio quality remains high, liquidity is strong, and management is focused on disciplined growth amid a challenging lower middle market environment.
Fiscal Year 2025
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Q4 saw AUM growth, strong liquidity, and a transition to monthly dividends, despite lower NII and NAV per share. Portfolio quality remains high, with disciplined asset selection and robust capital structure supporting long-term growth.
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Sequential adjusted NII growth (excluding one-time items), strong portfolio quality, and robust liquidity offset by lower yields and lumpy repayments. Dividend coverage remains solid, with long-term growth expected despite subdued M&A and unpredictable repayments.
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Resolved all watchlist investments, drove NAV and NII per share growth, and maintained a strong dividend with substantial spillover income. Portfolio remains well-structured for rate declines, with significant liquidity and disciplined underwriting amid low M&A activity.
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Adjusted NII per share rose 12% sequentially, with strong dividend coverage and high portfolio quality. No new platform investments were made, but $39 million in follow-ons supported growth. Liquidity remains robust, and active restructurings are underway for challenged credits.