PROSPECT CAPITAL CORP

PSECdata completeness 75%12 fiscal years on file

The thesis, from the filings

PROSPECT CAPITAL CORP earns about -1% on equity, and has bought back 23% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below. Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own

Figure	FY 2024	FY 2024	FY 2025	FY 2025	FY 2026
Revenue	—	—	—	—	—
Net income	$262.8M¹	$234.1M¹	−$469.9M¹	−$490.5M¹	$153.7M¹
Operating cash flow	$280M²	—	$523.2M²	—	$516.3M²
Capital expenditure	—	—	—	—	—
Free cash flow (derived)	—	—	—	—	—
Total debt	$2.43B³	—	$2.09B⁴	—	$1.86B⁴
Cash & equivalents	$85.9M⁵	—	$50.8M⁶	—	$43.6M⁶
Diluted shares	625.3M	429.0M	440.3M	462.3M	479.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom). A derived or summed figure cites every filing line it was built from.

ii. Your slice — ownership made literal

If you owned

Net assets behind them

$61.03

your share of equity

Profit it earned you last year

$3.2

Free cash flow it threw off

—

Debt you’d be carrying

$38.77

10 shares is a claim on $61.03 of net worth that earned you $3.2 last year, against $38.77 of debt.

iii. Is this a good business?

Moat signal · return on equity

-1% avg · 5y

FY24 7%FY24 —FY25 -16%FY25 —FY26 5%

It earned an average -1% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →

Management signal · capital allocation

−23% shares · 5y

Share count is down 23% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 24% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.6.0

DCF · Growth Exit 10Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

DCF · Growth Exit 5Y

not applicable

only 0 years of FCF (need ≥3) — model not applicable

Earnings Power Value

not applicable

business development company / RIC — reported earnings are dominated by unrealised marks on private holdings, and a RIC must distribute ~90% of income so it cannot retain earnings to compound. Capitalising them would be meaningless, not merely imprecise. Price/NAV is the applicable lens.

Graham Number

not applicable

Different models answer different questions — which to trust when →

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Sources — the receipts

10-K filed 2026-08-20 · periods ending 2024-06-30, 2024-08-31, 2025-06-30, 2025-08-31, 2026-06-30 · accession 0001287032-26-000269 (NetIncomeLoss)
10-K filed 2026-08-20 · periods ending 2024-06-30, 2025-06-30, 2026-06-30 · accession 0001287032-26-000269 (NetCashProvidedByUsedInOperatingActivities)
10-K filed 2025-08-26 · period ending 2024-06-30 · accession 0001287032-25-000232 (LongTermDebt)
10-K filed 2026-08-20 · periods ending 2025-06-30, 2026-06-30 · accession 0001287032-26-000269 (LongTermDebt)
10-K filed 2025-08-26 · period ending 2024-06-30 · accession 0001287032-25-000232 (CashAndCashEquivalentsAtCarryingValue)
10-K filed 2026-08-20 · periods ending 2025-06-30, 2026-06-30 · accession 0001287032-26-000269 (CashAndCashEquivalentsAtCarryingValue)