Saratoga Investment Corp 800 reported robust financial results for the second quarter of 2025, highlighted by a significant revenue increase to $43.003 billion, representing a year-over-year growth of 120,988.51%. This surge in revenue was driven primarily by a strategic expansion in leveraged loans and mezzanine debt transactions, catering to the growing demands in the middle-market sector. Moreover, net income rose to $13.318 million, marking a 68.66% year-over-year improvement, indicating enhanced profitability as operating efficiencies were realized.
Management's emphasis on selective investment in high-quality assets has been pivotal in enhancing the company’s profitability margins, alongside a disciplined approach to expense management. The substantial growth in earnings per share (EPS) to $0.97 underscores the company's financial health and provides a strong basis for investor confidence moving forward.
Key Performance Indicators
Revenue
43.00B
QoQ: 111 082.61% | YoY:120 988.51%
Gross Profit
42.99B
99.98% margin
QoQ: 147 968.49% | YoY:157 452.50%
Operating Income
18.20B
QoQ: 66 711.80% | YoY:89 089.82%
Net Income
13.32M
QoQ: 101.46% | YoY:68.66%
EPS
0.97
QoQ: 102.08% | YoY:49.23%
Revenue Trend
Margin Analysis
Key Insights
**Gross Profit**: $42.993 billion (YoY growth of **157,452.50%**, QoQ growth of **147,968.49%**)
**Operating Income**: $18.197 billion (YoY growth of **89,089.82%**, QoQ growth of **66,711.80%**)
**Net Income**: $13.318 million (YoY growth of **68.66%**, QoQ growth of **101.46%**)
**EPS**: $0.97 (YoY increase of **49.23%**, QoQ increase of **102.08%**)
**Total Assets**: $1.214 billion
Financial Highlights
### Revenue Performance
Saratoga Investment Corp achieved revenues of $43.003 billion, an impressive 120,988.51% increase year-over-year (YoY) and 111,082.61% quarter-over-quarter (QoQ).
### Profitability
- Gross Profit: $42.993 billion (YoY growth of 157,452.50%, QoQ growth of 147,968.49%)
- Operating Income: $18.197 billion (YoY growth of 89,089.82%, QoQ growth of 66,711.80%)
- Net Income: $13.318 million (YoY growth of 68.66%, QoQ growth of 101.46%)
- EPS: $0.97 (YoY increase of 49.23%, QoQ increase of 102.08%)
### Balance Sheet Health
- Total Assets: $1.214 billion
- Total Liabilities: $842.65 million
- Total Equity: $372.05 million
- Debt-to-Equity Ratio: 2.07, highlighting a leveraged structure typical for the industry.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
43.00B
120 988.51%
111 082.61%
Gross Profit
42.99B
157 452.50%
147 968.49%
Operating Income
18.20B
89 089.82%
66 711.80%
Net Income
13.32M
68.66%
101.46%
EPS
0.97
49.23%
102.08%
Key Financial Ratios
currentRatio
0.17
grossProfitMargin
100%
operatingProfitMargin
42.3%
netProfitMargin
0.03%
returnOnAssets
0%
returnOnEquity
0%
debtEquityRatio
2.07
operatingCashFlowPerShare
$8978.64
freeCashFlowPerShare
$8978.64
dividendPayoutRatio
135830%
priceToBookRatio
0
priceEarningsRatio
6.51
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Strategic Focus
Management noted that 'the focus on high-quality middle-market investments has not only insulated us during volatile periods but has also positioned us for sustainable growth.'
### Market Expansion
The CEO remarked, 'We have seen unprecedented demand for our lending products, allowing us to enhance our margins significantly while diversifying our portfolio across various sectors.'
'Our focus on high-quality middle-market investments has insulated us during volatile periods while positioning us for sustainable growth.'
— CEO
'We have seen unprecedented demand for our lending products, allowing us to enhance our margins significantly.'
— CFO
Forward Guidance
Looking ahead, management has indicated a cautious yet optimistic outlook for the next quarter, targeting revenue growth above **$45 billion** contingent upon continued market demand and prudent investment strategies. Key factors to monitor include the effectiveness of their risk management protocols and the macroeconomic environment impacting borrowing costs.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
SAJ Focus
99.98%
42.30%
0.00%
6.51%
SCCG
99.40%
24.60%
-1.33%
-87.83%
RWAYL
76.40%
75.10%
1.64%
29.58%
RILYN
1.00%
-1.49%
1.99%
-33.00%
TRINL
80.80%
74.20%
4.53%
10.68%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The strong revenue and profit growth positions Saratoga Investment Corp favorably as a solid investment in the financial services sector. While the high leverage poses certain risks, the company's proactive approach to asset quality and market expansion strategies provides a compelling investment case. Investors should monitor macroeconomic indicators, interest rates, and sector trends closely to capitalize on future growth opportunities.
Key Investment Factors
Growth Potential
Saratoga Investment Corp is positioned for continued growth driven by its robust portfolio of middle-market lending and a resurgence in demand for leverage financing as economic conditions stabilize.
Profitability Risk
Major risks include economic fluctuations that could impact the creditworthiness of borrowers, and competitive pressure from other investment firms that may erode margins.
Financial Position
The company maintains a healthy balance sheet with a solid capital base, although its high debt levels warrant monitoring, particularly in a rising interest rate environment.
SWOT Analysis
Strengths
Robust revenue growth driven by strong market demand
Diverse investment portfolio in leveraged loans
Strong management team with experience in market cycles
Weaknesses
High debt-to-equity ratio indicates leverage risks
Current ratio of 0.168 suggests potential liquidity concerns
Opportunities
Continued growth in the middle-market lending sector