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manilatimes.netJUL 76 min read$SAR

Saratoga Investment Corp. Announces Fiscal First Quarter 2027 Financial Results

Saratoga Investment Corp. (NYSE:SAR) reported fiscal Q1 2027 results ended May 31, 2026. AUM rose 1.6% to $1.126B with net originations of $31M. NAV fell to $378.5M (NAV/share $23.23). Adjusted NII was $0.47/share vs $0.53 last quarter; EPS was $(0.42). Dividends were $0.75/share. Non-accruals were 0.0% of fair value and 1.2% of cost.

Original reporting
manilatimes.net
Published Jul 7, 2026, 9:15 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Jul 7, 2026, 10:08 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
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Saratoga Investment Corp. Announces Fiscal First Quarter 2027 Financial Results — source image
Source · manilatimes.net
Decision brief

The 30-second read

$SARBearishMed
01

Why it matters

The release provides fresh, decision-relevant datapoints: sequential NAV per share decline, adjusted NII per share reduction, and specific non-accrual/write-off items that inform near-term risk and valuation for SAR.

02

Market read

Traders can reassess SAR’s dividend coverage trajectory and credit-risk trajectory using the disclosed NAV/NII changes and the named non-accrual/write-off items.

03

What to watch

The company notes core fair value remains within 0.2% of cost and credit quality is still largely in its highest internal category (98.3%); traders may over-focus on a few marked-down equity/credits (Pepper Palace, Exigo) rather than portfolio-level credit metrics.

Relevance 8/10Novelty 7/10Timing: after-hours/overnight following fiscal Q1 2027 earnings release (published July 7, 2026)

Background

Saratoga Investment is a business development company (BDC) focused on private credit; the quarter is framed as occurring amid sector-wide pressure from rates/spreads and rising defaults.

Company-level read

Ticker impact

$SARBearishMedium confidence
Context

Saratoga Investment reported fiscal Q1 2027 results with NAV per share down to $23.23 and adjusted NII per share falling to $0.47.

Expected impact

Near-term downside bias versus prior quarter given NAV per share decline and lower adjusted NII, partially offset by unchanged $0.75/share dividend and cash build.

Evidence & confidence

The article discloses sequential NAV per share decline (-4.9%), adjusted NII per share down ($0.53 to $0.47), and non-accrual/write-off details (Pepper Palace to zero; Exigo on red watchlist), which typically pressure valuation for BDCs even when dividends are maintained.

Market effects

Sector

Highlights ongoing private credit valuation pressure (declining short-term rates, tight spreads) and rising defaults, reinforcing sector-wide caution for BDCs.

Regional

Primarily US BDC sentiment; no specific regional macro linkage beyond the stated macro/interest-rate backdrop.

Global

Limited; references to geopolitical tensions and inflation are general and not tied to specific non-US exposures.

Counterpoint

What could challenge this read

Dividend continuity ($0.75/share for Q2) plus higher quarter-end cash ($60.8m) could support downside resilience despite NAV markdowns.

Key entities

  • company
    Saratoga Investment Corp.

    Reported fiscal first quarter 2027 results (AUM, NAV, adjusted NII, EPS) and detailed portfolio markdowns/non-accrual status.

  • portfolio company
    Pepper Palace

    Written down to zero and placed on non-accrual during the quarter, contributing materially to non-CLO core depreciation.

  • portfolio company
    Exigo

    Carried at $17.3m (70% of cost) and on red watchlist status, cited as a key contributor to markdowns.

Read at source← All news

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