PSEC

Company Overview — What Does PROSPECT CAPITAL CORP Do?

Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, market place lending and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. It also focuses on investing in small-sized and medium-sized private companies rather than large public companies. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $150 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals. PROSPECT CAPITAL CORP (PSEC) is classified as a small-cap stock in the Financials sector, specifically within the Financial Services industry. The company is led by CEO John F. Barry, headquartered in New York, New York. With a market capitalization of $1.3B, PSEC is one of the notable companies in the Financials sector.

PROSPECT CAPITAL CORP (PSEC) Stock Rating — Reduce (April 2026)

As of April 2026, PROSPECT CAPITAL CORP receives a Reduce rating with a composite score of 42.1/100 and 2 out of 5 stars from the Blank Capital Research quantitative model.PSEC ranks #2,038 out of 4,446 stocks in our coverage universe. Within the Financials sector, PROSPECT CAPITAL CORP ranks #577 of 891 stocks, placing it in the lower half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).

PSEC Stock Price and 52-Week Range

PROSPECT CAPITAL CORP (PSEC) currently trades at $2.64. The stock gained $0.02 (0.8%) in the most recent trading session. The 52-week high for PSEC is $4.28, which means the stock is currently trading -38.3% from its annual peak. The 52-week low is $2.45, putting the stock 7.8% above its annual trough. Recent trading volume was 2.5M shares, reflecting moderate market activity.

Is PSEC Overvalued or Undervalued? — Valuation Analysis

PROSPECT CAPITAL CORP (PSEC) carries a value factor score of 30/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The trailing price-to-earnings ratio is 4.01x, compared to the Financials sector average of 14.88x — a discount of 73%. The price-to-book ratio stands at 0.42x, versus the sector average of 1.22x. The price-to-sales ratio is 3.69x, compared to 0.90x for the average Financials stock. On an enterprise value basis, PSEC trades at 3.91x EV/EBITDA, versus 3.26x for the sector.

At current multiples, PROSPECT CAPITAL CORP trades at a premium to most Financials peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.

PROSPECT CAPITAL CORP Profitability — ROE, Margins, and Quality Score

PROSPECT CAPITAL CORP (PSEC) earns a quality factor score of 47/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -1.3%, compared to the Financials sector average of 8.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -0.6% versus the sector average of 1.2%.

The operating margin is 51.1% (sector: 21.8%). Net profit margin stands at -10.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 21.0% on a trailing basis, compared to 9.4% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.

PSEC Debt, Balance Sheet, and Financial Health

PROSPECT CAPITAL CORP has a debt-to-equity ratio of 62.0%, compared to the Financials sector average of 121.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 3.35x, indicating strong short-term liquidity. Total debt on the balance sheet is $1.85B.

PSEC has a beta of 0.79, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PROSPECT CAPITAL CORP is 67/100, reflecting average volatility within the normal range for its sector.

PROSPECT CAPITAL CORP Revenue and Earnings History — Quarterly Trend

In TTM 2026, PROSPECT CAPITAL CORP reported revenue of $340M and earnings per share (EPS) of $-0.01. Net income for the quarter was $-38M.

In Q2 2026, PROSPECT CAPITAL CORP reported revenue of $91M and earnings per share (EPS) of $-0.01. Net income for the quarter was $24M. Revenue grew 5.2% year-over-year compared to Q2 2025.

In Q1 2026, PROSPECT CAPITAL CORP reported revenue of $79M and earnings per share (EPS) of $0.10. Net income for the quarter was $78M. Revenue grew -11.7% year-over-year compared to Q1 2025.

In FY 2025, PROSPECT CAPITAL CORP reported revenue of $339M and earnings per share (EPS) of $-1.35. Net income for the quarter was $-470M.

Over the past 8 quarters, PROSPECT CAPITAL CORP has demonstrated a growth trajectory, with revenue expanding from $90M to $340M. Investors analyzing PSEC stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.

PSEC Dividend Yield and Income Analysis

PROSPECT CAPITAL CORP (PSEC) currently pays a dividend yield of 20.5%. At this yield, a $10,000 investment in PSEC stock would generate approximately $$2051.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning PSEC offers above-average income for its sector.

PSEC Momentum and Technical Analysis Profile

PROSPECT CAPITAL CORP (PSEC) has a momentum factor score of 32/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 26/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 64/100 reflects moderate short selling activity.

PSEC vs Competitors — Financials Sector Ranking and Peer Comparison

Within the Financials sector, PROSPECT CAPITAL CORP (PSEC) ranks #577 out of 891 stocks based on the Blank Capital composite score. This places PSEC in the lower half of all Financials stocks in our coverage universe. Key competitors and sector peers include WHITE MOUNTAINS INSURANCE GROUP LTD (WTM) with a score of 62.9/100, OPPENHEIMER HOLDINGS INC (OPY) with a score of 62.6/100, Enact Holdings, Inc. (ACT) with a score of 61.6/100, International General Insurance Holdings Ltd. (IGIC) with a score of 61.3/100, and PARKE BANCORP, INC. (PKBK) with a score of 60.4/100.

Comparing PSEC against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PSEC vs S&P 500 (SPY) comparison to assess how PROSPECT CAPITAL CORP stacks up against the broader market across all factor dimensions.

PSEC Next Earnings Date

No upcoming earnings date has been announced for PROSPECT CAPITAL CORP (PSEC) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.

Should You Buy PSEC? — Investment Thesis Summary

The quantitative profile for PROSPECT CAPITAL CORP suggests caution. The value score of 30/100 indicates premium valuation. Momentum is weak at 32/100, a headwind for near-term performance. Low volatility (stability score 67/100) reduces downside risk.

In summary, PROSPECT CAPITAL CORP (PSEC) earns a Reduce rating with a composite score of 42.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PSEC stock.

Related Resources for PSEC Investors

Explore more research and tools: PSEC vs S&P 500 comparison, top Financials stocks, stock screener, our methodology, quality factor explained, value factor explained, momentum factor explained. Compare PSEC head-to-head with peers: PSEC vs WTM, PSEC vs OPY, PSEC vs ACT.