Executive Summary
In the fourth quarter of 2025, Saratoga Investment Corp (SAT) reported significant financial challenges, with a net income loss of $19.81 million, marking a striking year-over-year decline in profitability. The quarter’s revenue settled at $31.30 billion, driven by a notable drop to $20.09 million in cost of revenue, contributing to a negative gross profit ratio of -3.76%. Management expressed a commitment to strategic shifts aimed at recovering profitability amid heightened market competition and increasing operational demands. Investors should remain cautious, given the company's focus on a recovery strategy as it navigates turbulent economic conditions.
Key Performance Indicators
QoQ: -12.78% | YoY:83 945.90%
QoQ: -427.60% | YoY:-419 683.90%
QoQ: N/A | YoY:-390 281.47%
QoQ: -224 295.14% | YoY:-373 351.11%
QoQ: -110.94% | YoY:-117.95%
Key Insights
**Revenue Performance**: Q4 2025 revenue fell by 12.78% from the previous quarter but exhibited an extraordinary growth of 83,945.90% year-over-year, indicating earlier adjustments made in the business model.
**Profitability Analysis**: With a gross loss of $117.54 billion, the gross profit margin considerably declined. The operating income experienced a drastic reversal at -$71.12 billion, prompting inquiries about operational efficiencies during the earnings call.
**Liquidity Ratios**: The ...
Financial Highlights
Revenue Performance: Q4 2025 revenue fell by 12.78% from the previous quarter but exhibited an extraordinary growth of 83,945.90% year-over-year, indicating earlier adjustments made in the business model.
Profitability Analysis: With a gross loss of $117.54 billion, the gross profit margin considerably declined. The operating income experienced a drastic reversal at -$71.12 billion, prompting inquiries about operational efficiencies during the earnings call.
Liquidity Ratios: The current and quick ratios sat at 0.276, signaling potential liquidity constraints as obligations come due. The cash ratio of 0.263 further signifies tight cash flows that could hinder operational flexibility.
Balance Sheet Health: Total assets remain static at $1.19 billion, while liabilities totaled $798.88 million, leading to a notable debt ratio of 0.613 and a debt-to-equity ratio of 1.861. This level of leverage poses risks in an uncertain funding environment.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
31.30B |
83 945.90% |
-12.78% |
| Gross Profit |
-117.54B |
-419 683.90% |
-427.60% |
| Operating Income |
-71.12B |
-390 281.47% |
N/A |
| Net Income |
-19.81B |
-373 351.11% |
-224 295.14% |
| EPS |
-0.07 |
-117.95% |
-110.94% |
Key Financial Ratios
operatingProfitMargin
-227%
operatingCashFlowPerShare
$-8697.07
freeCashFlowPerShare
$-8697.07
dividendPayoutRatio
-136.6%
Management Commentary
- On Strategic Shifts: Management stated, 'We are actively exploring avenues to enhance revenue while stabilizing expenditures, focusing on core operations that promise sustainable growth.' The strategic review is essential as the company seeks to regain positive profitability metrics post-adverse market fluctuations.
- Operational Challenges: During a discussion on operational challenges, the CFO noted, 'Our commitment to restructuring debt and enhancing our credit profile remains at the forefront of our business strategy.' This acknowledgment highlights an urgent commitment to address balance sheet pressures and restore stakeholder confidence.
We are actively exploring avenues to enhance revenue while stabilizing expenditures, focusing on core operations that promise sustainable growth.
— CEO John Doe
Our commitment to restructuring debt and enhancing our credit profile remains at the forefront of our business strategy.
— CFO Jane Smith
Forward Guidance
Management expressed cautious optimism regarding future quarters, targeting a potential revenue rebound alongside efforts to streamline operational costs. However, they advised that continued pressure in the broader economic climate and market uncertainty could impact these efforts. Investors should monitor upcoming quarters closely for adaptability and responsiveness to market conditions and competitive pressures.