Saratoga Investment Corporation (SAR), a business development company focused on middle market investment opportunities, reported a challenging Q4 2025 marked by declining revenues and net income. The company's total revenue for the quarter stood at $17.5 million, a significant decrease of 20.3% year-over-year and 29.8% quarter-over-quarter. This decline was influenced by lower interest rates impacting revenue generated from floating rate assets, coupled with substantial repayments. The firm's net income registered at -$677,000, reflecting a marked erosion compared to previous periods. Despite these challenges, management affirmed the resilience of the portfolio and highlighted a transition to a monthly dividend structure, increasing the yield potential amid ongoing macroeconomic uncertainties. Management expressed confidence in their strategic positioning, indicating an optimistic outlook for capital deployment as M&A activity in the lower middle market appears to be gaining momentum, with the firm maintaining a robust investment pipeline.