Saratoga Investment Corp (SAR) Q3 2025 Earnings Report

In QQ3 2025, Saratoga Investment Corp (SAR) reported a robust financial performance characterized by a net income of $8.83 million, translating to an EPS of $0.64. This represents a significant increase in net income of 317.84% year-over-year, despite a sequential decrease from the previous quarter. The company sees sustained support for its dividend due to over-earning amidst valuable investments, with a quarterly dividend yield of 12.2% based on a closing stock price of $24.21. Despite experiencing some challenges including outsized repayments and markdowns in specific assets, the firm continues to exhibit resilience powered by strong cash generated from operations totaling $94.16 million, enabling continued support for existing portfolio companies and new investments. Management remains optimistic, indicating a favorable outlook due to strong relationships with sponsors and indications of potential M&A activity in the lower middle market.