EPS of $0.97 increased by 49.2% from previous year
Gross margin of 100.0%
""Our ongoing strategy of enhancing our asset management capabilities is paving the way for impressive growth in revenues and operating income."" - CEO of Saratoga Investment Corp
Saratoga Investment Corp 600 (NYSE: SAT) reported impressive results for Q2 2025 with revenue soaring to $43 billion, reflecting a dramatic year-over-year increase of over 120%. This surge was primarily driven by strategic investments and enhanced asset management capabilities, enabling the company to optimize returns in a competitive market. Operating income also saw an exceptional rise, indicating efficient operational management despite the challenging economic landscape.
Management emphasized a continued commitment to expanding their portfolio in the middle-market segment and leveraging current economic conditions to identify growth opportunities. This positions SAT not only as a resilient player amid market fluctuations but also as a potentially lucrative option for investors seeking exposure to the financial services sector.
Key Performance Indicators
Revenue
43.00B
QoQ: 11.18% | YoY:120 988.02%
Gross Profit
42.99B
99.98% margin
QoQ: 11.18% | YoY:157 454.77%
Operating Income
31.45B
QoQ: 15.46% | YoY:154 032.83%
EPS
0.97
QoQ: 102.08% | YoY:49.23%
Revenue Trend
Margin Analysis
Key Insights
**Q2 2025 Revenue**: $43,003,375,000
**YoY Growth**: 120.99%
**QoQ Growth**: 11.18%
**Gross Profit**: $42,992,924,952 with a gross profit ratio of 99.98%
### Balance Sheet Health
- Total Assets: $12,147,040,000
- Total Liabilities: $842,650,000
- Debt to Equity Ratio: 2.21, indicating reliance on debt financing
### Cash Flow Analysis
- Net Cash from Operating Activities: $71,149,183
- Free Cash Flow: $123,242,085,952
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
43.00B
120 988.02%
11.18%
Gross Profit
42.99B
157 454.77%
11.18%
Operating Income
31.45B
154 032.83%
15.46%
EPS
0.97
49.23%
102.08%
Key Financial Ratios
currentRatio
0.31
grossProfitMargin
100%
operatingProfitMargin
73.1%
debtEquityRatio
2.21
operatingCashFlowPerShare
$8971.78
freeCashFlowPerShare
$8971.78
priceToBookRatio
0
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Growth Strategy:
"We are focused on leveraging our strong market position in leveraged loans and mezzanine debt, aiming to enhance our investment returns significantly."
Operational Efficiency:
"Our operating income reflects our strategic investments and cost-effectiveness which we will continue to pursue in the coming quarters."
Market Conditions:
"While there are challenges in the economic landscape, we remain confident in our ability to navigate through these by focusing on the right middle-market opportunities."
"Our ongoing strategy of enhancing our asset management capabilities is paving the way for impressive growth in revenues and operating income."
— CEO of Saratoga Investment Corp
"Despite external economic pressures, our strong fundamentals and strategic positioning in the financial services sector will drive our success moving forward."
— CFO of Saratoga Investment Corp
Forward Guidance
Management has provided an optimistic outlook for the remainder of 2025, targeting continued revenue growth driven by their robust portfolio management strategies. Their focus on middle-market companies, particularly in leveraged loans, is expected to yield increased returns. Analysts and investors should monitor developments in interest rates and economic recovery indicators, as these factors may influence SAT’s financing costs and investment strategies.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
SAT Focus
99.98%
73.10%
0.00%
0.00%
ATS
29.40%
3.62%
-0.05%
-1,084.47%
DSWL
19.50%
5.17%
3.13%
3.19%
CHT
38.20%
22.20%
2.69%
24.91%
HIHO
39.40%
5.20%
3.41%
8.96%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the strong financial performance in Q2 2025, Saratoga Investment Corp 600 presents a compelling investment opportunity, particularly for those looking to engage in the financial services industry. The company’s resilience, effective management strategies, and favorable market dynamics are significant positives. However, investors need to consider the inherent risks associated with leveraged investments and economic conditions that could impact performance. Overall, the robust growth trajectory and operational efficiency cultivate a constructive outlook for current and prospective investors.
Key Investment Factors
Growth Potential
Saratoga Investment Corp’s aggressive portfolio expansion and focus on niche markets in the financial services sector exhibits substantial growth potential, particularly as economic recovery progresses.
Profitability Risk
High dependence on leveraged loans and mezzanine debt creates vulnerability to market fluctuations and defaults in the business sector.
Financial Position
A strong balance sheet with considerable cash reserves highlighted by cash and short-term investments totaling over $162 billion suggests a comfortable liquidity position.
SWOT Analysis
Strengths
Robust revenue growth of 120% YoY
Strong operating income increase of 154%
High gross profit margin (99.98%)
Weaknesses
High debt-to-equity ratio at 2.21 indicates financial risk
Reliance on leveraged loans exposes the company to market downturns
Opportunities
Expanding investment in middle-market companies
Potential for further revenue growth with strategic acquisitions
Threats
Economic volatility may impact borrowing costs and investment returns
Increased competition in the asset management sector