Prospect Capital Corp Files Q2 2025 10-Q

TL;DR

**PROSPECT CAPITAL CORP (PSEC) Q2 2025 10-Q FILED. INVESTMENTS IN AFFILIATED & UNAFFILIATED ISSUERS DETAILED.**

AI Summary

Prospect Capital Corporation filed its 10-Q for the period ending December 31, 2024. The company reported its financial position, including investments in affiliated and unaffiliated issuers. Key dates include the filing date of February 10, 2025, and the reporting period from July 1, 2024, to December 31, 2024.

Why It Matters

This filing provides investors with an update on Prospect Capital's financial health and investment portfolio performance for the second quarter of fiscal year 2025.

Risk Assessment

Risk Level: medium — As a business development company, Prospect Capital's investments are subject to market and credit risks.

Key Numbers

• N/A — Total Assets (Specific asset figures are not detailed in the provided text snippet.)
• N/A — Total Liabilities (Specific liability figures are not detailed in the provided text snippet.)
• N/A — Net Income (Specific net income figures are not detailed in the provided text snippet.)

Key Players & Entities

• PROSPECT CAPITAL CORP (company) — Filer of the 10-Q
• 2024-12-31 (date) — End of reporting period
• 2025-02-10 (date) — Filing date
• 2024-07-01 (date) — Start of reporting period

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value PSEC NASDAQ Global Select Mar

Filing Documents

• psec-20241231.htm (10-Q) — 10683KB
• psec10-qq22025ex311.htm (EX-31.1) — 10KB
• psec10-qq22025ex312.htm (EX-31.2) — 10KB
• psec10-qq22025ex321.htm (EX-32.1) — 6KB
• psec10-qq22025ex322.htm (EX-32.2) — 6KB
• 0001287032-25-000012.txt ( ) — 60377KB
• psec-20241231.xsd (EX-101.SCH) — 191KB
• psec-20241231_cal.xml (EX-101.CAL) — 93KB
• psec-20241231_def.xml (EX-101.DEF) — 1459KB
• psec-20241231_lab.xml (EX-101.LAB) — 1383KB
• psec-20241231_pre.xml (EX-101.PRE) — 1467KB
• psec-20241231_htm.xml (XML) — 11826KB

Forward-Looking Statements

Forward-Looking Statements 3

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Statements of Assets and Liabilities as of December 31, 2024 (unaudited) and June 30, 2024 4 Consolidated Statements of Operations for the three and six months ended December 31, 2024 and December 31, 2023 (unaudited) 5 Consolidated Statements of Changes in Net Assets and Temporary Equity for the three and six months ended December 31, 2024 and December 31, 2023 (unaudited) 7 Consolidated Statements of Cash Flows for the six months ended December 31, 2024 and December 31, 2023 (unaudited) 9 Consolidated Schedules of Investments as of December 31, 2024 (unaudited) and June 30, 2024 10

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 54 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 122 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 156 Item 4.

Controls and Procedures

Controls and Procedures 158

OTHER INFORMATION

PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 159 Item 1A.

Risk Factors

Risk Factors 159 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 161 Item 3. Defaults Upon Senior Securities 162 Item 4. Mine Safety Disclosures 162 Item 5. Other Information 163 Item 6. Exhibits 167

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains information that may constitute "forward-looking statements." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will," "should," "could," "may," "plan" and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, "Item 1A. Risk Factors" and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2024, and those described from time to time in reports that we have filed or in the future may file with the Securities and Exchange Commission. The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning: our, or our portfolio companies', future operating results; our busi

Financial Statements

Item 1. Financial Statements PROSPECT CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except share and per share data) December 31, 2024 June 30, 2024 (Unaudited) (Audited) Assets Investments at fair value: Control investments (amortized cost of $ 3,323,998 and $ 3,280,415 , respectively)(Note 14) $ 3,772,329 $ 3,872,575 Affiliate investments (amortized cost of $ 11,735 and $ 11,594 , respectively) 20,212 18,069 Non-control/non-affiliate invest ments (amortized cost of $ 3,689,972 and $ 4,155,165 , respectively) 3,340,387 3,827,599 Total investments at fair value (a mortized cost of $ 7,025,705 and $ 7,447,174 , respectively)(Note 3) 7,132,928 7,718,243 Cash an d cash equivalents (restricted cash of $ 1,508 and $ 3,974 , respectively) 59,760 85,872 Receivables for: Interest, net 18,428 26,936 Other 1,914 1,091 Deferred financing costs on Revolving Credit Facility (Note 4) 21,180 22,975 Prepaid expenses 641 1,162 Due from broker — 734 Due from Affiliate (Note 13) 4 79 Total Assets 7,234,855 7,857,092 Liabilities Revolving Credit Facility (Notes 4 and 8) 301,522 794,796 Public Notes (less unamortized discount and debt issuance costs of $ 10,075 and $ 12,433 , respectively) (Notes 6 and 8) 966,197 987,567 Prospect Capital InterNotes (less unamortized debt issuance costs of $ 9,299 and $ 7,999 , respectively) (Notes 7 and 8) 634,535 496,029 Convertible Notes (less unamortized debt issuance costs of $ 166 and $ 649 , respectively) (Notes 5 and 8) 156,002 155,519 Due to Prospect Capital Management (Note 13) 50,700 58,624 Interest payable 23,214 21,294 Dividends payable 20,076 25,804 Due to Prospect Administration (Note 13) 5,070 5,433 Accrued expenses 4,028 3,591 Due to broker 2,762 10,272 Other liabilities 199 242 Total Liabilities 2,164,305 2,559,171 Commitments and Contingencies (Note 3 and Note 15) Preferred Stock, par value $ 0.001 per share ( 847,900,000 and 647,900,000 shares of p

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