PROSPECT CAPITAL CORP

PSECdata completeness 75%10 fiscal years on file

Data notes: no data for concept 'revenue'; no data for concept 'capex'; no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

PROSPECT CAPITAL CORP earns about -4% on equity, but has diluted owners by 10% over 5 years — worth asking whether the growth reaches owners. 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 2023	FY 2023	FY 2024	FY 2024	FY 2025
Revenue	—	—	—	—	—
Net income	−$101.6M¹	−$88M¹	$262.8M¹	$234.1M¹	−$469.9M¹
Operating cash flow	−$220.8M²	—	$280M²	—	$523.2M²
Capital expenditure	—	—	—	—	—
Free cash flow (derived)	—	—	—	—	—
Total debt	$2.58B³	—	$2.43B⁴	—	$2.09B⁴
Cash & equivalents	$95.6M⁵	—	$85.9M⁶	—	$50.8M⁶
Diluted shares	398.5M	407.6M	625.3M	429.0M	440.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal

If you owned

Net assets behind them

$67.88

your share of equity

Profit it earned you last year

−$10.67

Free cash flow it threw off

—

Debt you’d be carrying

$47.43

10 shares is a claim on $67.88 of net worth that earned you −$10.67 last year, against $47.43 of debt.

iii. Is this a good business?

Moat signal · return on equity

-4% avg · 5y

FY23 -3%FY23 —FY24 7%FY24 —FY25 -16%

It earned an average -4% 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

+10% shares · 5y

Share count is up 10% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 19% — 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 v0.1.0

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

normalized (5y-median) earnings non-positive — EPV undefined

Graham Number

not applicable

diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts

10-K · period ending 2023-06-30 · accession 0001287032-25-000232 (NetIncomeLoss)
10-K · period ending 2023-06-30 · accession 0001287032-25-000232 (NetCashProvidedByUsedInOperatingActivities)
10-K · period ending 2023-06-30 · accession 0001287032-24-000280 (LongTermDebt)
10-K · period ending 2024-06-30 · accession 0001287032-25-000232 (LongTermDebt)
10-K · period ending 2023-06-30 · accession 0001287032-24-000280 (CashAndCashEquivalentsAtCarryingValue)
10-K · period ending 2024-06-30 · accession 0001287032-25-000232 (CashAndCashEquivalentsAtCarryingValue)