SAR earnings analysis
What we found in SAR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 to $0.74 (Q3 FY2024: $0.64). Investments at fair value increased to $1,015,950,344 (2/28/2025: $978,077,750) and net assets from operations rose to $11,999,984 (Q3 FY2024: $8,834,942). Operating cash flow weakened materially to $4,386,612 (nine months ended) and NAV per share declined to $25.59 (2/28/2025: $25.86).
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS increased year-over-year
- Weighted average earnings per common share were $0.74 for the three months ended November 30, 2025 compared with $0.64 for the three months ended November 30, 2024 (increase of $0.10).
- Net assets from operations improved
- Net increase in net assets resulting from operations was $11,999,984 versus $8,834,942 in the prior-year quarter (increase of $3,165,042).
- Investments at fair value rose
- Total investments at fair value increased to $1,015,950,344 at November 30, 2025 from $978,077,750 at February 28, 2025 (increase of $37,872,594).
- Successful capital raise
- Proceeds from issuance of common stock were $18,752,929 for the nine months ended November 30, 2025 (prior-year nine months: $2,777,426), supporting capital growth.
- Operating expenses declined
- Total operating expenses decreased to $21,859,153 for the quarter from $23,442,980 in the prior-year quarter (decline of $1,583,827).
- Improved realized/unrealized results vs prior year quarter
- Net realized and unrealized gain (loss) on investments was a gain of $2,336,755 versus a loss of $(3,600,713) in the prior-year quarter (improvement of $5,937,468).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Investment income declined
- Total investment income fell to $31,645,539 for the quarter from $35,878,635 in the prior-year quarter (decrease of $4,233,096).
- Net investment income compression
- Net investment income decreased to $9,786,386 for the quarter from $12,435,655 in the prior-year quarter (decrease of $2,649,269), reducing recurring operating earnings.
- Sharp drop in operating cash flow
- Net cash provided by operating activities was $4,386,612 for the nine months ended November 30, 2025 versus $217,455,177 for the nine months ended November 30, 2024 (decrease of $213,068,565).
- Cash moved into reserve accounts; cash on hand fell
- Cash and cash equivalents declined to $52,298,401 from $148,218,491 (decrease of $95,920,090), while cash in reserve accounts rose to $117,259,809 from $56,505,433 (increase of $60,754,376); combined cash and reserves fell to $169,558,210 from $204,723,924 (decrease of $35,165,714).
- Worsening distributable deficit and NAV pressure
- Total distributable deficit increased to $(23,902,089) at November 30, 2025 from $(20,263,312) at February 28, 2025 (worsened by $3,638,777) and NAV per share declined to $25.59 from $25.86 (decline of $0.27).
- Increased short-term leverage usage
- Revolving credit facilities outstanding increased to $70,000,000 at November 30, 2025 from $52,500,000 at February 28, 2025 (increase of $17,500,000), indicating higher short-term borrowings.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.74
- Gross margin
- 30.94%
- Operating margin
- 37.93%
- Segment
- Healthcare Services: $92,915,066 (22.6% of net assets)
- Segment
- Education Software: $55,551,543 (13.5% of net assets)
- Segment
- Custom Millwork Software: $34,078,200 (8.3% of net assets)
- Segment
- HVAC Services and Sales: $52,325,228 (12.7% of net assets)
- Segment
- Real Estate Services: $52,178,752 (12.6% of net assets)
- Segment
- Restaurant: $49,554,307 (12.0% of net assets)
- Segment
- Healthcare Software: $45,783,255 (11.1% of net assets)
What they said about what is next.
The excerpted 10‑Q does not include explicit numeric forward guidance. MD&A/Outlook language not provided in the supplied text; no 'expects to' or quantitative outlook captured in the excerpt — numeric guidance deferred to earnings release / conference call if provided.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-Q · January 8, 2025
- Saratoga reported total investment income of $35,878,635 and net investment income of $12,435,655 for the quarter ended November 30, 2024. GAAP earnings per share were $0.64 (vs. $(0.31) in the year-ago quarter) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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