Saratoga Investment Corp delivered solid NAV progression in QQ2 2026, supported by a resilient core portfolio, improved accrual status for previously nonaccrual assets, and a robust liquidity position. As of quarter-end, NAV stood at $410.5 million with NAV per share of $25.61, and trailing twelve-month ROE of 9.1% exceeding the BDC industry average of 7.3%. The company maintained a disciplined underwriting stance in a challenging rate and market environment, originations totaling $52.2 million in QQ2 with three follow-ons, and an ongoing pipeline that includes three new portfolio investments in closing or closing imminently in Q3. Importantly, Xalage returned to accrual status while Pepper Palace remains the sole nonaccrual, representing 0.2% of portfolio fair value, underscoring the portfolio’s credit quality. The balance sheet remains highly liquid with approximately $407 million of investment capacity and $201 million in cash at quarter-end, facilitating accretive deployment while preserving NAV. The quarterly dividend framework remains intact at $0.25 per share per month ($0.75 per share for 2026), reflecting a priority on current income delivery amidst a volatile macro backdrop. Management highlighted a favorable positioning to capitalize on industry underpenetration in the lower middle market, with a proven track record of NAV accretion and strong long-term ROE relative to peers.