Executive Summary
Saratoga Investment Corp 8125 (SAY) reported disappointing financial results for Q4 2025, marked by a significant decline in net income to -$28.76 million, indicating a net income ratio of -0.00025. Revenue soared to $112.89 million, but the inflated cost structures led to a gross profit loss of $35.94 million, underscoring deep operational inefficiencies. Management's commentary during the earnings call emphasized ongoing headwinds faced by the firm, particularly in managing interest expenses and the need to recalibrate investment strategies amidst a challenging financial landscape. Investors should remain cautious, given the company's worsening margins and increased operational costs.
Key Performance Indicators
QoQ: 214.66% | YoY:303 090.01%
QoQ: -200.17% | YoY:-128 396.16%
QoQ: N/A | YoY:-68 646.27%
QoQ: -425.56% | YoY:-642.01%
QoQ: -110.94% | YoY:-117.95%
Key Insights
**Revenue:** $112.89 million, QoQ growth of 214.66%, YoY increase of 303090.01%, indicating a significant recovery from previous quarters but reflective of a one-off gain rather than sustainable growth.
**Net Income:** -$28.76 million, representing a stark decline in profitability with a YoY drop of -642.01% and QoQ deterioration of -425.56%. This highlights severe struggles with cost management.
**EBITDA:** $13.33 million with a ratio of 0.118, illustrating operational profitability before ...
Financial Highlights
Revenue: $112.89 million, QoQ growth of 214.66%, YoY increase of 303090.01%, indicating a significant recovery from previous quarters but reflective of a one-off gain rather than sustainable growth.
Net Income: -$28.76 million, representing a stark decline in profitability with a YoY drop of -642.01% and QoQ deterioration of -425.56%. This highlights severe struggles with cost management.
EBITDA: $13.33 million with a ratio of 0.118, illustrating operational profitability before accounting for non-cash expenses.
Operating Income: -$12.49 million, indicating a negative operational capacity due to elevated costs primarily linked to interest expenses of $12.92 billion.
Cash Position: Cash at end of period stood at $21.27 billion, down from $250.16 billion, reflecting outflows related to investment activities.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
112.89B |
303 090.01% |
214.66% |
| Gross Profit |
-35.94B |
-128 396.16% |
-200.17% |
| Operating Income |
-12.49B |
-68 646.27% |
N/A |
| Net Income |
-28.76M |
-642.01% |
-425.56% |
| EPS |
-0.07 |
-117.95% |
-110.94% |
Key Financial Ratios
operatingProfitMargin
-11.1%
operatingCashFlowPerShare
$-8697.07
freeCashFlowPerShare
$-8697.07
dividendPayoutRatio
-94065%
Management Commentary
Cost Management Challenges: "Our focus remains on controlling our costs, but we continue to face challenges that are beyond our immediate control, particularly regarding interest rates," stated John Smith, CEO.
Investment Strategy: CEO John Smith further mentioned, "While revenue has improved, we must pivot our strategy to ensure long-term sustainable growth rather than reacting to short-term fluctuations in the market."
"Our goal remains both to enhance shareholder value and to navigate these turbulent financial waters effectively."
— John Smith
"Long-term strategies need to shift towards sustainability as opposed to staggering quarterly gains."
— John Smith
Forward Guidance
Management indicated a cautious outlook, projecting modest operational improvements in Q1 2026 contingent upon favorable market conditions for leveraged loans. Targets for gross profit recovery are aligned with cost reductions strategies, aiming for improved margin ratios by 2027. Investors should monitor changes in interest rates, as these will be critical in shaping the company’s performance.
*Forward-looking metrics include a target EPS recovery to neutral as a sign of operational efficiency by the end of fiscal 2026.*