Saratoga Investment Corp. (SAR) Earnings Call Transcripts

Saratoga Investment Corp.'s Latest Earnings Call - Q4 FY2026

Saratoga Investment Corp. reported its fiscal year-end and fourth quarter 2026 results, highlighting strong net positive originations and sustained AUM growth. The company achieved a 9.1% return on equity, significantly above the industry average. Adjusted net investment income (NII) was $0.53 per share, impacted by a $1.7 million excise tax, with an adjusted NII of $0.61 per share when excluding this tax. The company announced a monthly base dividend of $0.25 per share, offering a 12.6% yield. Management emphasized strong origination activity despite macroeconomic challenges, with net originations of $101.1 million. Guidance suggests stability in base rates and potential spread widening, with a focus on expanding the asset base prudently.

Reported metrics

Guidance from management

Management indicated a stabilization of base rates and potential spread widening. They emphasized expanding the asset base in a prudent manner to offset yield pressures.

What management said

Generally, that's not something we can control as you guys know. We obviously cover our portfolio companies and our portfolio has been a good source of repayments. But yes, we have a very active and very productive calling effort. And I think as Dave mentioned earlier, we're looking at a few relatively fewer software and relatively more other types of secular growing businesses, education, health care, those type of ...

It's really a function of sort of the remaining assets in the CLO that there is a group of assets that's been underperforming. And that's -- and they just continued to underperform. And as you have seen over the last couple of quarters, the F note had continuously been written down over the past couple of quarters. And it was a big write-down in Q3. There were still about [ $120 million ] on the books, and then we ...

What analysts pressed on

Analysts expressed concerns about the pressure on yields due to lower spreads on new investments compared to repayments. Questions were raised about the CLO's F note being put on nonaccrual and its potential recovery.

Main topics on the call

• Strong Origination Activity — Saratoga reported net originations of $101.1 million for the quarter, with $135.1 million in new originations across 5 new investments and 15 follow-ons. Management noted, 'Our strong origination activity more than offse...
• Dividend Announcement — The company announced a monthly base dividend of $0.25 per share, or $0.75 in aggregate for the first quarter of fiscal 2027, representing a 12.6% yield. This continues their historical strong dividend distribution histo...
• Portfolio Valuation and NAV — The total portfolio was marked down 1% during the quarter, with a NAV per share decrease to $24.42 from $25.59 last quarter. 'Our total portfolio valuation is 2.4% below cost,' stated management.
• CLO and JV Performance — The CLO and JV investments experienced unrealized depreciation of $5.5 million. The CLO's F note was put on nonaccrual for the first time, representing 0.2% of fair value.

Read the full Saratoga Investment Corp. transcript (Q4 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 54 Saratoga Investment Corp. earnings call transcripts on record, spanning January 9, 2020 to July 8, 2026. Based on this history, Saratoga Investment Corp. reports quarterly. The most recent call on file is dated July 8, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SAR

Exchange

NYSE

Country

US

Sector

Financials

Industry

Capital Markets

Calls on record

54

First call

January 9, 2020

Most recent

July 8, 2026

Reporting cadence

quarterly