Saratoga Investment Corp 600 (SAT) reported a solid QQ2 2026 performance with notable NAV growth and a resilient core BDC portfolio amid a volatile macro backdrop. Quarter-end NAV reached $410.5 million ($25.61 per share), up 3.6% versus the prior quarter, supported by net gains and realized appreciation that contributed to NAV accretion despite ongoing rate and volume headwinds. Adjusted net investment income (NII) stood at $9.1 million ($0.58 per share), reflecting a compression from prior periods driven by lower AUM, lower base rates, and ongoing portfolio repayments; management highlighted that deploying cash accretively remains feasible with approximately $201 million in quarter-end cash and $406.8 million of dry powder available to fund growth without external financing. SAT reaffirmed its strategy of disciplined underwriting, strong liquidity, and an elevated emphasis on high-quality first-lien assets, with credit quality remaining exceptionally robust (0.3% nonaccrual rate of cost, 0.2% of fair value). The company also underscored a solid dividend framework, declaring a quarterly base dividend of $0.25 per share (annual $0.75), equating to a ~12.3% yield at the then-current price. Looking ahead, SAT emphasized the potential for increased deal flow as rate environments stabilize and M&A activity reverts toward historical norms, supported by a diversified pipeline, ongoing CLO activity, and the opportunity to leverage new SBIC capacity. The earnings narrative indicates a balance between earnings power driven by a high-quality, defensible portfolio and the near-term cash deployment imperative to sustain dividend coverage and NAV growth.