PennantPark Floating Rate Capital Ltd. Reports Financial Earnings Results For The Fourth Quarter And Fiscal Year Ended September 30, 2025

PennantPark Floating Rate Capital Ltd. (PFLT) today announced its earnings results for the most recent quarter, reporting earnings per share that met analysts’ expectations at $0.285. This performance reflects the company’s steady financial management and commitment to delivering consistent results in a challenging market environment. Investors will be keen to analyze the details of the report as PFLT continues to navigate the complexities of the floating rate capital landscape.

Key Highlights:

• Investment portfolio totaled $2,773.3 million as of September 30, 2025.
• Net investment income for the quarter was $27.5 million, or $0.28 per share.
• Core net investment income per share for the year was $1.18.
• Distributions declared per share were $0.31 for the quarter and $1.23 for the year.
• The company invested $633.0 million in the quarter and $1,741.3 million for the year.
• Weighted average yield on debt investments was 10.2% at quarter-end.
• The company formed a new joint venture, PennantPark Senior Secured Loan Fund II, LLC, with a commitment of $200 million.

PennantPark Floating Rate Capital Ltd. reported its financial results for the fourth quarter and fiscal year ended September 30, 2025, highlighting a robust investment portfolio of $2,773.3 million. The company achieved a net investment income of $27.5 million for the quarter, translating to $0.28 per share, while the core net investment income for the year was reported at $1.18 per share. The company declared distributions of $0.31 per share for the quarter and $1.23 for the year, reflecting a stable dividend policy supported by a growing net investment income.

Art Penn, Chairman and CEO, expressed confidence in the portfolio’s resilience, stating, “Our investment portfolio continues to perform well… Investments in the core middle market typically feature attractive credit spreads, lower leverage, and enhanced lender protections.” The company also announced the formation of a new joint venture, PSSL II, aimed at investing in middle-market loans, with a combined commitment of $200 million from PennantPark and Hamilton Lane. This strategic move is expected to enhance the company’s growth trajectory and investment capabilities.

PennantPark Floating Rate Capital Ltd. (PFLT) has experienced a mixed bag of price changes recently, with a slight decline of 0.52% over the past week, but a more encouraging uptick of 3.41% in the last month. However, looking at the broader picture, the stock has faced challenges, down 7.56% over the past three months and 7.43% year-over-year. This volatility comes despite a robust revenue growth rate of 237.71% over the past two years, indicating that while the top line is expanding, investor sentiment may be cautious. The company’s price-to-earnings ratio stands at a relatively low 10.14, suggesting that it may be undervalued compared to its earnings potential. However, the negative two-year compound annual growth rate (CAGR) of earnings per share at -4.73% raises concerns about profitability trends. With a net profit margin of 33.15% and a return on invested capital of 3.97%, PFLT demonstrates solid operational efficiency, yet the market seems to be weighing these metrics against the backdrop of its recent price performance. Investors will be keen to see if the company can leverage its revenue growth to turn around its earnings trajectory and restore confidence in its stock.

PennantPark Floating Rate Capital Ltd. is a business development company. It seeks to make secondary direct, debt, equity, and loan investments. The fund seeks to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies. It primarily invests in the United States and to a limited extent non-U.S. companies. The fund typically invests between $2 million and $20 million. The fund also invests in equity securities, such as preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments. It primarily invests between $10 million and $50 million in investments in senior secured loans and mezzanine debt. It seeks to invest in companies not rated by national rating agencies. The companies if rated would be between BB and CCC under the Standard & Poor’s system. The fund invests 30% is invested in non-qualifying assets like investments in public companies whose securities are not thinly traded or do not have a market capitalization of less than $250 million, securities of middle-market companies located outside of the United States, high-yield bonds, distressed debt, private equity, securities of public companies that are not thinly traded, and investment companies as defined in the 1940 Act. Under normal conditions, the fund expects atleast 80 percent of its net assets plus any borrowings for investment purposes to be invested in Floating Rate Loans and investments with similar economic characteristics, including cash equivalents invested in money market funds. It expects to represent 65 percent of its portfolio through senior secured loans. In case of floating rate loans, it holds investments for a period of three to ten years.