Saratoga NAV Falls to $22.15 as Unrealized Losses Hit $31.6M
SAR is trading near its 52-week low of $15.69 (0.7% above the low) on elevated volume (2.4× avg).
Summary
Saratoga Investment Corp. reported a $13.6M net decrease in net assets from operations for the six months ended Aug 31, 2026, with NAV per share falling to $22.15. Unrealized depreciation of $31.6M drove the decline, and the company continued active debt refinancing and share repurchases. Adjusted NII per share declined slightly from the prior quarter on higher interest expense, while AUM grew 2.1% sequentially to $1.15B. Q2 non-GAAP EPS was $0.46, missing by $0.03, and revenue was $31.1M, missing by $0.37M.
Updated with a Seeking Alpha report · What changed
Updates
· Seeking Alpha — Q2 non-GAAP EPS was $0.46, missing by $0.03, and revenue was $31.1M, missing by $0.37M.
· Reuters — Adjusted NII per share decline was mainly attributed to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth.
- NAV Decline Drivers — NAV per share fell mainly due to unrealized depreciation on investments, particularly in Madison Logic, Exigo and Chronus, and reversals of prior appreciation in Gen4 and Modis, as well as dividend distributions exceeding earnings.
- Adjusted NII Decline — Adjusted NII per share decline was mainly attributed to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth.
- Investment Income — Higher investment income was driven by the full-quarter impact of Q1 originations and partial-quarter impact of Q2 originations, more than offsetting repayments.
- Q2 Loss Per Share — Q2 Loss Per Share was $0.41.
All 5 details
- Net asset value per share fell mainly due to investment markdowns and dividend distributions exceeding earnings.
- NAV per share decline was mainly due to unrealized depreciation on investments, particularly in Madison Logic, Exigo and Chronus, and reversals of prior appreciation in Gen4 and Modis.
- Adjusted NII per share decline was mainly attributed to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth.
- Higher investment income was driven by the full-quarter impact of Q1 originations and partial-quarter impact of Q2 originations, more than offsetting repayments.
- Q2 Loss Per Share was $0.41.
Key Events · Earnings and Guidance · SAR
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New · · Seeking Alpha
Q2 Non-GAAP EPS and Revenue Miss
Q2 non-GAAP EPS was $0.46, missing by $0.03, and revenue was $31.1M, missing by $0.37M.
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New · · Reuters
Adjusted NII Declines Slightly
Adjusted NII per share declined slightly from the prior quarter, mainly due to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth. AUM grew 2.1% sequentially to $1.15B.
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New · · Reuters
Investment Income Rises
Higher investment income was driven by the full-quarter impact of Q1 originations and partial-quarter impact of Q2 originations, more than offsetting repayments.
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New · · Reuters
Q2 Loss Per Share
Q2 Loss Per Share was $0.41.
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Updated · · Reuters
NAV Declines to $22.15
Net asset value per share fell to $22.15 at Aug 31, 2026, down from $24.42 at Feb 28, 2026, driven by $31.6M of net unrealized depreciation on investments for the six-month period. The decline was mainly due to investment markdowns and dividend distributions exceeding earnings, with unrealized depreciation particularly in Madison Logic, Exigo and Chronus, and reversals of prior appreciation in Gen4 and Modis.
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Net Loss from Operations
Net decrease in net assets resulting from operations was $13.6M for the six months ended Aug 31, 2026, compared to a $27.2M increase in the prior-year period.
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Share Repurchases Continue
The company repurchased 444,124 shares at an average price of $18.91 (~$8.4M) during the quarter, with total repurchases under the plan reaching 1,481,822 shares at $21.11 average.
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Debt Refinancing Activity
Subsequent to quarter-end, the company redeemed $105.5M of 6.00% 2027 notes in full and issued an additional $23.1M of 8.00% 2031 notes, bringing total 8.00% 2031 notes outstanding to $120.8M.
Analysis · SAR · Unknown
Saratoga Investment Corp. reported a net decrease in net assets from operations of $13.6 million for the six months ended August 31, 2026, driven by $31.6 million of net unrealized depreciation across its portfolio. NAV per share fell to $22.15 from $24.42 at fiscal year-end, mainly due to investment markdowns and dividend distributions exceeding earnings, with unrealized depreciation particularly in Madison Logic, Exigo and Chronus, and reversals of prior appreciation in Gen4 and Modis. The stock trades near its 52-week low at $15.80. The company also repurchased 444,124 shares at an average price of $18.91 during the quarter, and subsequent events show aggressive balance-sheet management: full redemption of $105.5 million of 6.00% 2027 notes, issuance of an additional $23.1 million of 8.00% 2031 notes, and a sixth refinancing of the Saratoga CLO. Adjusted NII per share declined slightly from the prior quarter, mainly due to increased interest expense from recent capital structure changes, as well as lower other income and higher management fees from AUM growth; higher investment income was driven by the full-quarter impact of Q1 originations and partial-quarter impact of Q2 originations, more than offsetting repayments. Q2 loss per share was $0.41, while non-GAAP EPS was $0.46, missing by $0.03, and revenue was $31.1 million, missing by $0.37 million. The combination of declining asset values, elevated leverage, and refinancing activity at higher coupons is the key takeaway for investors.
How filings like this one have moved
In the 30 days to Oct 12, 2026, 28.9% of the 1436 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.52%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, SAR was trading at $15.80 on NYSE in the Unknown sector, with a market capitalization of approximately $254.2M. The 52-week trading range was $15.69 to $24.63. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.