In the third quarter of fiscal 2026, Saratoga Investment Corp. grew its assets under management to $1.016 billion, up 2.1% from $995.3 million in the prior quarter and 5.8% from $960.1 million a year earlier. Net asset value increased by $2.7 million to $413.2 million, reflecting disciplined valuation practices and mark–to–market gains. NAV per share held steady at $25.59, virtually unchanged from $25.61 at the end of Q2, underscoring stable capital base amid active portfolio turnover.

Saratoga delivered a quarterly return on equity of 13.5%, driving last-twelve-month ROE to 9.7% and comfortably surpassing the BDC industry average of 6.6%. This performance was fueled by effective leverage management—regulatory leverage rose modestly to 168.4% but remained within target—and robust net interest margin growth, which increased from $13.1 million to $13.5 million as interest expense declined following $17 million of baby bond repayments.

During Q3, the company originated $72.1 million across three new platform investments and nine follow-on financings while absorbing $54.9 million of repayments, resulting in net originations of $17.2 million. Portfolio fair value rose by $2.5 million driven by non-CLO valuations, offsetting minor markdowns in CLO and joint-venture holdings. Credit quality remains high: 99.8% of investments are in top internal ratings, 83.9% are first-lien senior secured, and only one restructuring remains on non-accrual, representing 0.2% of fair value.

Saratoga declared a base dividend of $0.75 per share for the quarter and paid a special $0.25 distribution, bringing total dividends for fiscal 2026 to $3.25 per share. The company ended Q3 with $169.6 million in cash, supporting a pro forma leverage ratio of 183.7% when netting cash against debt. This liquidity position provides capacity for further accretive investments or debt reduction while sustaining the quarterly payout.