EPS of $0.91 increased by 89.6% from previous year
""Our focus on the middle market continues to provide significant opportunities in this evolving economic landscape. We remain committed to identifying and leveraging key investment avenues that sustain our performance even during economic shifts."" - Management
Saratoga Investment Corp 8125 (SAY) reported outstanding revenue of $32.32 billion for Q1 2026, showing a staggering year-over-year increase of over 83%. However, this represents a sequential decline of approximately 71.37% from the previous quarter. Despite this volatility, management emphasized the stability of their investments in leveraged loans and the middle-market companies, reflecting a careful strategy aligned with market conditions. The company remains positioned to leverage its expertise in the specialty finance sector for continued revenue generation as economic conditions stabilize.
The reported EPS stood strong at $0.91, marking a significant YoY growth of 89.58% and an astonishing 1,400% quarter-over-quarter increase, indicating effective capital management and profitable investment strategies. The current cash position of approximately $131.56 billion underscores a robust liquidity position, enabling Saratoga to navigate potential market headwinds effectively.
### Profitability Metrics
- EPS: $0.91
- YoY Change in EPS: 89.58%
- QoQ Change in EPS: 1,400%
### Balance Sheet Strength
- Total Assets: $1.20 Trillion
- Total Liabilities: $805.90 Billion
- Stockholder Equity: $396.37 Billion
### Cash Flow Analysis
- Net Cash Provided by Operating Activities: $32.29 Billion
- Net Cash Used in Investing Activities: $14.98 Billion
- Net Cash Used in Financing Activities: -$12.73 Billion
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
32.32B
83 457.81%
-71.37%
EPS
0.91
89.58%
1 400.00%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Key Insights from Earnings Transcript
- Strategic Outlook: "Our focus on the middle market continues to provide significant opportunities in this evolving economic landscape. We remain committed to identifying and leveraging key investment avenues that sustain our performance even during economic shifts." - Management
- Market Positioning: "We believe that our diversified investment approach and strong liquidity will allow us to capitalize on emerging market opportunities as we navigate the current challenges. The financial indicators reflect our resilient framework to endure fluctuations." - Management
"Our focus on the middle market continues to provide significant opportunities in this evolving economic landscape. We remain committed to identifying and leveraging key investment avenues that sustain our performance even during economic shifts."
â Management
"We believe that our diversified investment approach and strong liquidity will allow us to capitalize on emerging market opportunities as we navigate the current challenges."
â Management
Forward Guidance
Management expressed cautious optimism regarding future performance, projecting a steady recovery of revenue as market confidence returns. They highlighted their intent to cautiously increase investment activities while monitoring the economic environment closely. Key factors to watch include interest rate movements, regulatory changes, and general market demand in the financial services sector. Management aims to maintain robust liquidity to support potential capital investments and acquisitions that align with their strategic goals.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
WIT
30.20%
16.50%
3.85%
11.25%
RDY
60.40%
23.40%
4.72%
18.84%
INFY
30.90%
21.50%
7.66%
25.45%
IBN
1.00%
-1.14%
4.29%
18.05%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Considering the significant increase in revenue year-over-year, alongside improvements in EPS, Saratoga Investment Corp 8125 presents a compelling investment thesis for long-term holders. Investors should continue to monitor macroeconomic indicators and company performance metrics while assessing the company's adaptive strategies in response to industry trends. Overall, the company appears well-positioned amidst financial uncertainties, supported by a strong balance sheet and a strategic outlook focused on capturing market opportunities.
Key Investment Factors
Growth Potential
Saratoga's potential growth is bolstered by its strategic focus on leveraged loans and investments in middle-market companies, sectors anticipated to recover post-economic volatility.
Profitability Risk
Potential risks include market fluctuations affecting loan performance, increased competition for quality investments, and regulatory changes that may impact operational efficiency.
Financial Position
With total assets exceeding $1.20 trillion and a significant stockholder equity position, Saratoga maintains a solid financial footing to support its operational and strategic initiatives.
SWOT Analysis
Strengths
Strong revenue growth of 83% YoY
Robust liquidity position with $131.56 billion in cash and cash equivalents
Experienced management team with a proven strategy in specialty finance
Weaknesses
Significant QoQ revenue decline of 71.37%
Reliance on the middle market which can be volatile
Potential overexposure to certain sectors in financial services
Opportunities
Emerging market opportunities as economic conditions stabilize
Strategic acquisitions to enhance portfolio diversity