Prospect Capital (0R25.L) Q2 2025 Earnings Report

Prospect Capital Corporation posts a QQ2 2025 results snapshot that underscores a high-leverage, interest-leaning earnings profile typical of diversified financials and BDCs. Reported revenue of $14.824 million accompanies an explicit interest expense of $33.208 million, yielding an operating loss of $66 thousand and a net loss of $66 thousand for the quarter. The earnings per share stood at a negative $0.07. Notably, the quarter delivered robust operating cash flow of $278.503 million driven by working capital movements and sizable non-cash adjustments, contributing to a net increase in cash of $2.738 million and an ending cash balance of $59.760 million. On the balance sheet, Prospect maintains a sizable asset base (approximately $7.235 billion) and an elevated long-term debt load of about $2.058 billion, with total liabilities around $2.164 billion and stockholders’ equity near $5.071 billion. The company’s liquidity appears adequate in the near term, but the business remains sensitive to financing costs and credit losses given its high debt burden and interest expense structure. The quarter’s year-over-year and quarter-over-quarter metrics show extreme top-line contraction (revenue YoY down ~93%, QoQ down ~90%), while EPS improvement metrics suggest some offsetting factors in the period; nevertheless, net income remained near breakeven and levered by financing costs. Going forward, investors should monitor debt maturities, portfolio yields, credit quality, and the company’s ability to sustain distributions in a higher-for-longer rate environment.