Prospect Capital Corporation reported QQ4 2024 results showing strong net income driven by a positive bottom-line despite a large mix of unusual items in the period. Revenue of USD 398.039 million was accompanied by a substantial gross profit figure reported at USD 668.315 million, while operating income reached USD 69.364 million and EBITDA USD 29.556 million. Net income stood at USD 29.556 million with an earnings per share (EPS) of USD -0.0213 on a diluted basis. Management commentary is not included in the provided dataset, but the period features a very high reported other expenses (USD 431.254 million) and a negative tax expense (-USD 293.837 million), which yields a positive net income despite a sizable quarterly operating loss signal in some line items. The operating margin is shown at 17.4%, with EBITDAR at 7.4%, indicating a mixed mix of earnings from core activities and non-operating or unusual accounting effects.
From a balance sheet perspective, the company carries meaningful leverage with total debt (long-term and short-term) of USD 2.433 billion and net debt of USD 2.348 billion. Cash and cash equivalents totaling USD 85.872 million and total cash-related assets of approximately USD 81.898 million suggest relatively modest liquidity against a sizable liability base. The current ratio is reported at 0.55x, underscoring liquidity considerations in a capital-intensive, credit-oriented business model. The equity position is robust on a book basis (total stockholders’ equity USD 5.298 billion), but the market-facing metrics (e.g., price-to-book around 0.44) imply a valuation that may reflect risk, industry positioning, or data anomalies in margins.
Overall, the QQ4 2024 results present a picture of a debt-focused financial services company delivering net income in a volatile items environment, with a need for management commentary to clarify the drivers behind the anomalous gross profit and tax treatment. Investors should monitor NII dynamics, credit quality, portfolio mix, leverage, and dividend sustainability as key drivers of value going forward.