Prospect Capital Corporation reported QQ1 2025 revenue of USD 151.5 million with an operating income of USD 45.0 million, signaling a solid operating core despite modest top-line movement. The quarter delivered a net loss of USD -134.0 million, driven almost entirely by a substantial non-operating expense line of USD -179.1 million, which more than offset the positive operating results. Cash flow from operations was strong at USD 173.7 million, underpinning the company’s ability to generate cash despite the reported net loss. Free cash flow matched operating cash flow at USD 173.7 million, continuing to reflect the company’s working-capital efficiency and non-cash adjustments that can influence reported earnings. On the balance sheet, Prospect maintains a sizable asset base (USD 7.59 billion) and a leverage footprint that remains high, with long-term debt of USD 2.27 billion and net debt of USD 2.22 billion, while equity stands at USD 3.51 billion. The stock trades with a price-to-book around 0.45, suggesting substantial valuation discount versus book value, though the negative near-term earnings may weigh on investor sentiment. Absent a formal quarterly earnings call transcript in the provided data, management commentary is not captured in quotes; investors should monitor liquidity, debt management, and portfolio performance going forward. Overall, the quarter underscores the importance of separating operating performance from non-operating items and evaluating cash generation and leverage in assessing forward-on distributions and capital deployment capability.