Prospect Capital FY2026: NAV Falls to $5.71, Dividend Cut 22%, Valley Electric Sale Closes
PSEC is trading near its 52-week low of $2.11 (8.5% above the low).
Summary
Prospect Capital's FY2026 10-K shows NAV per share fell to $5.71, the dividend was cut 22%, and the Valley Electric sale closed with a $131.8M gain. Authorized shares doubled to 4.0B.
Key Events · Earnings and Guidance · PSEC
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NAV Declines 13%
Net asset value per common share fell to $5.71 as of June 30, 2026, down from $6.56 a year earlier, driven by net realized and unrealized losses of $189.9M.
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Dividend Cut 22.2%
Monthly common stock dividend reduced to $0.035 per share from $0.045, a 22.2% cut, reflecting lower net investment income.
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Valley Electric Sale Closes
On July 1, 2026, the company sold its 94.99% stake in Valley Electric for $280.8M total consideration, recording a realized gain of $131.8M.
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Authorized Shares Doubled
Charter amendment increased authorized shares from 2.0B to 4.0B, providing capacity for future equity issuance and potential dilution.
Analysis · PSEC · Unknown
The annual report paints a deteriorating financial picture: net asset value per share dropped 13% to $5.71, and the monthly dividend was slashed by 22.2% to $0.035. The sale of Valley Electric for $280.8M closed on July 1, 2026, generating a $131.8M realized gain, but that was not enough to offset broader portfolio losses. Authorized shares also doubled to 4.0B, signaling potential future dilution. These results confirm the distress signals from the prior quarter and provide concrete numbers on the extent of the decline.
At the time of this filing, PSEC was trading at $2.29 on NASDAQ in the Unknown sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $2.11 to $3.13. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.