10-Q · January 7, 2026
Saratoga Investment Corp. reported lower investment income but stronger per-share results this quarter: total investment income fell to $31,645,539 (Q3 FY2024: $35,878,635) while weighted average earnings per share rose…
Earnings analysis · 10-Q
SAR earnings analysis
Filed October 6, 2026 · Our reading of the company's report
The latest report
The provided 10-Q extraction does not contain the quarterly income statement, balance-sheet totals, cash-flow statement, or segment results, so revenue, margins, EPS, free cash flow, and period-over-period trends cannot…
Read full summary
The provided 10-Q extraction does not contain the quarterly income statement, balance-sheet totals, cash-flow statement, or segment results, so revenue, margins, EPS, free cash flow, and period-over-period trends cannot be evaluated. The filing does show $902.4 million of borrowings, continued share repurchases totaling approximately $8.4 million in the quarter, and effective disclosure controls. The key incremental concerns are interest-rate sensitivity and the potential early redemption and cross-default consequences associated with the CFO’s planned October 31, 2026 departure.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Portfolio is 99% fixed-rate
The portfolio remains predominantly fixed-rate: approximately 99.0% of debt investments were fixed-rate and 1.0% floating-rate as of August 31, 2026.
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Broad borrowing base remains in place
The company reported $902.4 million of borrowings outstanding as of August 31, 2026, including $32.5 million under the Valley Credit Facility and $37.5 million under the Live Oak Credit Facility.
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Share repurchases continued
The board extended the share repurchase plan through January 15, 2027. Through August 31, 2026, the company had repurchased 1,481,822 shares at an average price of $21.11, totaling approximately $31.3 million.
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$8.4M of quarterly repurchases
During the three months ended August 31, 2026, the company repurchased 444,124 shares at an average price of $18.91 for approximately $8.4 million.
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Controls assessed as effective
Management concluded that disclosure controls and procedures were effective, and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls during the quarter.
What to watch
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Higher rates may pressure earnings
The Federal Reserve raised its benchmark rate by 0.25% in September 2026 to a 3.75%–4.00% target range. Management estimates that a 1.0% increase in rates would raise annual interest expense by approximately $0.7 million on the floating-rate credit facilities.
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Earnings exposed to rate declines
A hypothetical 1.0% decrease in interest rates would reduce annual investment interest income by approximately $10.7 million, while the corresponding reduction in interest expense would be approximately $0.7 million, creating substantial net investment income sensitivity.
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CFO departure creates redemption risk
The 7.25% 2029 Notes include an early redemption feature tied to management changes. CFO, Chief Compliance Officer, Treasurer and Secretary Henri Steenkamp notified the board on September 16, 2026 that he will step down effective October 31, 2026; failure to repay the notes if triggered could create an event of default and cross-defaults.
Management's outlook
The provided 10-Q text does not include quantitative revenue or EPS guidance; no explicit operating outlook was identified.
Earlier filings 4
10-Q · October 7, 2025
Saratoga Investment Corp. reported total investment income of $30,625,756 for the three months ended August 31, 2025, down from $43,003,375 a year earlier, driving net investment income of $9,080,733 versus $18,197,398…
10-Q · July 8, 2025
Saratoga reported total investment income of $32,318,617 for the quarter ended May 31, 2025, down from $38,678,150 a year earlier, while reported earnings per share rose to $0.91 from $0.48 due to a swing to net…
10-K · May 7, 2025
Saratoga Investment Corp. is a BDC focused on first-lien middle‑market leveraged loans and mezzanine debt, managing $1,191.5 million of total assets across 48 portfolio companies as of February 28, 2025. The portfolio…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.