Prospect Capital Corporation's Strong Performance in Recent Earnings

Font: Financial Modeling Prep  • Aug 27, 2025

• Prospect Capital Corporation (NASDAQ:PSEC) reported an EPS of $0.17, surpassing the estimated EPS of $0.13.
• The company's revenue was approximately $166.9 million, exceeding the estimated revenue of $164.9 million.
• PSEC's current ratio is approximately 1.72, indicating a good level of liquidity to cover its short-term liabilities.

Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that provides capital to middle-market companies. It operates in various industries, offering debt and equity financing. PSEC competes with other business development companies like Ares Capital Corporation and Main Street Capital Corporation. On August 26, 2025, PSEC reported its earnings, showcasing a strong performance.

PSEC reported an earnings per share (EPS) of $0.17, surpassing the estimated EPS of $0.13. This indicates that the company performed better than analysts expected. PSEC's ability to exceed EPS estimates suggests potential for future profitability.

The company's actual revenue was approximately $166.9 million, exceeding the estimated revenue of $164.9 million. This revenue growth is significant, especially with a price-to-sales ratio of 2.15, indicating that investors are willing to pay $2.15 for every dollar of sales. This reflects investor confidence in PSEC's revenue-generating capabilities.

PSEC's enterprise value to sales ratio is approximately 5.47, and its enterprise value to operating cash flow ratio is around 3.14. These metrics reflect the company's valuation in relation to its sales and cash flow, suggesting a balanced approach to managing its financial resources. The debt-to-equity ratio of 0.62 indicates a moderate level of debt, which is manageable given the company's current financial standing.

The current ratio of approximately 1.72 suggests that PSEC has a good level of liquidity to cover its short-term liabilities. This is a positive sign for investors, as it indicates that the company can meet its financial obligations without difficulty. PSEC's strong liquidity position provides a cushion against potential financial challenges.