Saratoga (SAR) Q3 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 11:21 AM CDT 40 min read

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Date

Thursday, Jan. 8, 2026, astatine 10 a.m. ET

Call participants

• Chairman, President, and Chief Executive Officer — Christian Oberbeck

• Chief Financial Officer and Chief Compliance Officer — Henri Steenkamp

• Chief Investment Officer — Michael Grisius

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Full Conference Call Transcript

Christian Oberbeck: Thank you, Henri, and welcome, everyone. Saratoga Investment Corp highlights this 4th see continued NAV maturation from the erstwhile 4th and twelvemonth with unchangeable NAV per share, an summation successful NII of $0.03 per stock from the erstwhile quarter, a beardown 13.5% instrumentality connected equity, beating the industry, nett originations of $17.2 million, including 3 caller portfolio companies, and importantly, continued coagulated show from the halfway BDC portfolio successful a volatile macro environment.

Continuing our humanities beardown dividend organisation history, we announced a monthly basal dividend of $0.25 per stock oregon $0.75 per stock successful aggregate for the 4th fourth of fiscal 2026, which erstwhile annualized, represents a 12.9% output based connected the banal terms of $23.19 arsenic of January 6, 2026, offering beardown existent income from an concern worth standpoint. Though we did spot an summation successful adjusted NII of $0.03 per stock from the erstwhile quarter, our 3rd 4th NII of $0.61 per stock continues to bespeak the interaction of the past 12 months inclination successful decreasing levels of short-term involvement rates and spreads connected Saratoga investments mostly floating complaint assets arsenic good arsenic continued precocious levels of repayments.

Strong originations outpaced repayments during the 3rd quarter, which erstwhile coupled with the repayment of a $12 cardinal babe enslaved resulted successful our currency presumption astatine 4th extremity decreasing to $169.6 million, though we inactive person important currency disposable to beryllium deployed accretively successful investments oregon to repay existing debt. During the quarter, we began to spot an summation successful M&A enactment contempt continued competitory marketplace dynamics. While our portfolio again saw aggregate indebtedness repayments successful Q3, we had beardown caller originations, resulting successful nett originations of $17.2 cardinal for the quarter. Specifically, we originated $72.1 cardinal successful 3 caller investments and 9 follow-ons arsenic good arsenic closing connected caller investments successful aggregate BB and BBB structured recognition securities.

Our beardown estimation and differentiated marketplace positioning, combined with our ongoing improvement of sponsor relationships, continues to make an charismatic concern opportunities from high-quality sponsors, which is continuing station 4th extremity with 4 caller portfolio institution investments, either closed oregon closing successful Q4 truthful far, which further improves our tally complaint earnings. We proceed to stay prudent and discerning successful presumption of caller commitments successful the existent volatile environment. We judge Saratoga continues to beryllium favorably situated for imaginable aboriginal economical opportunities arsenic good arsenic challenges. At the instauration of our beardown operating show is the high-quality quality and resilience of our 1.016 cardinal portfolio with each 4 historically challenged portfolio institution situations resolved.