Saratoga Investment Corp (SAR) Q1 2025 Earnings Report

Saratoga Investment Corp reported a robust financial performance for Q1 2025, revealing a significant increase in net investment income (NII) per share of $1.05, a 12% improvement quarter-over-quarter (QoQ). This strong performance was underpinned by stable interest rates contributing to elevated recurring net interest margins, which increased by 19% due to a 9% rise in average assets under management. Notably, the dividend of $0.74 was comfortably covered, with NII exceeding dividend commitments by 42%. Management expressed a cautious but optimistic outlook, focusing on future economic challenges and opportunities, particularly in the context of a competitive market for private equity investments, where they continue to seek high-quality credit opportunities despite currently low deal volumes.