Saratoga Investment (NYSE: SAR) Q2 Earnings Report: Key Financials and Performance Analysis

• Saratoga Investment (NYSE: SAR) reported adjusted net investment income per share of $0.46, missing the $0.49 estimate, with revenue also slightly below expectations at $31.2 million.
• Despite a decline in net asset value (NAV) to $22.15 per share, the company saw its assets under management (AUM) grow by 2.1% to $1.15 billion.

Saratoga Investment (NYSE: SAR), a business development company focused on lending to and investing in smaller businesses, reported its latest earnings report after the market closed on October 6, 2026. For its fiscal second quarter, adjusted net investment income per share was $0.46, below the $0.49 estimate provided by analysts. Quarterly revenuereached $31.2 million, compared with an estimate of $31.5 million.

Adjusted net investment income for Saratoga Investment was $7.4 million, or $0.46 per share. This figure was down from $0.47 per share in the prior quarter and $0.58 a year earlier. This measure reflects income generated from investments after accounting for related expenses. Higher borrowing costs, following recent refinancing efforts, partially offset positive trends such as portfolio growth and a modest rise in base rates, as highlighted by MarketBeat in its financial performance analysis.

Saratoga's assets under management (AUM) demonstrated growth, rising 2.1% during the quarter to reach $1.15 billion. The company deployed $76.1 million in new investments while receiving $39 million in repayments, resulting in $37.1 million in net originations. These new investments included two companies, further expanding Saratoga's diversified portfolio, as highlighted by GlobeNewswire.

The company's net asset value (NAV), a key metric measuring assets minus liabilities, declined to $22.15 per share from $23.23 in the prior quarter and $25.61 a year earlier. Saratoga also reported a net loss of $0.41 per share. In a move to enhance shareholder value, the company repurchased 444,124 shares, which management stated added $0.09 per share to net asset value, as highlighted by GlobeNewswire.

Its debt-to-equity ratio is 2.32, indicating that the company carries $2.32 in debt for each $1 of equity. Furthermore, its current ratio is 0.15, meaning current assets cover $0.15 of each $1 in current liabilities, providing insight into its short-term liquidity.