Prospect Capital Corporation (PSEC) Stock Score, Valuation & Financial Research

Prospect Capital Corporation is in the Financial Services sector and Asset Management industry. It is reviewed using Wall Street Score's company-strength, valuation, growth and financial-health framework. The current Wall Street Score is 43/100.

Quick answer for PSEC

Prospect Capital Corporation currently has a Wall Street Score of 43/100. The stored market price is USD 1.60. Its financial score is 12/100. Its valuation score is 62/100. The latest WSS change is +8.4 points. These figures are a research snapshot, not a buy or sell recommendation.

What Prospect Capital Corporation does

Prospect Capital Corporation operates as a Business Development Company (BDC), providing diverse financing solutions predominantly to the middle market. The firm engages in a broad spectrum of investment activities, including growth capital, leveraged buyouts, acquisitions, recapitalizations, refinancing, and turnaround situations for mature, emerging, and later-stage companies. Its specialized offerings encompass mezzanine financing, subordinated debt tranches of collateralized loan obligations (CLOs), cash flow term loans, marketplace lending, and bridge transactions. Beyond corporate finance, Prospect Capital also allocates capital to real estate, with a specific focus on multi-family residential assets. The company deploys a variety of investment instruments, such as secured debt (including senior, unitranche, first-lien, and second-lien), private debt, mezzanine debt, and direct equity, primarily targeting private and microcap public businesses. Its investment strategy involves both primary originations and the acquisition of secondary loan portfolios, supporting situations like private equity-backed financings, corporate expansion, dividend recapitalizations, and real estate ventures. The firm intentionally concentrates on small and medium-sized private companies, rather than large public corporations. Prospect Capital maintains a diversified investment portfolio spanning numerous industries, with notable expertise in the energy and industrial sectors. Its extensive reach covers areas from aerospace and financial services to healthcare, technology, and consumer goods. Geographically, its operations are concentrated within the United States and Canada. Typically, PSEC commits between $10 million and $500 million per transaction. It seeks out companies with an EBITDA between $5 million and $150 million, sales figures ranging from $25 million to $500 million, and an enterprise value between $5 million and $1000 million. The BDC is also open to co-investing in larger opportunities. Prospect Capital often aims for control acquisitions by participating across various levels of a company's capital structure and engages in sole, agented, club, or syndicated deal arrangements.

Company business and revenue

Research reporting period: 2026-06-30. A research update is not a new financial filing.

How the company makes money

Prospect Capital is a business development company that earns investment income from lending to and investing in portfolio businesses, rather than collecting ordinary product-sales revenue. Its June 2026 disclosure describes a stronger emphasis on first-lien senior secured middle-market loans and reductions in second-lien exposure. The subordinated structured-notes portfolio had been exited on a cost basis, so older descriptions presenting that portfolio as a continuing core allocation are outdated. Real-estate exposure includes multifamily investments through National Property REIT Corp. Research should distinguish cash interest from payment-in-kind interest, net investment income from realized and unrealized portfolio gains or losses, and distributions from investment returns. Funding maturities, non-accrual loans and changes in net asset value remain relevant even when the stated distribution rate is high.

Products and services

Middle-market corporate lending
Selected equity-linked investments
Multifamily real-estate investments through NPRC

Business risks and research considerations

Borrower non-accruals and investment valuation losses Source
Funding maturities and distribution coverage Source

Sources: Prospect Capital fiscal 2026 results and portfolio disclosure

Company research refreshed 2026-10-12. This is saved research, not a live check of company relationships. Check the reporting period and source disclosures. Financial figures and scores follow their separate update schedules.

Financial risk observations and what to check

These are saved observations about business performance, not predictions. Review the company filings alongside the interpretation below. Latest stored financial period end: 2026-06-30.

Quarterly revenue fell 361.0% versus the same quarter last year. Check comparable business scope and currency, then separate volume, pricing and divestitures. One weaker quarter does not establish that the same decline will continue.

PSEC financial snapshot

Statement amounts: USD. Quote amounts: USD. No exchange-rate conversion is performed in this snapshot. Market-capitalization currency is not supplied by this projection.

Wall Street Score:: 43/100
Stored price:: USD 1.60
Market capitalization:: 854.11M (currency not supplied)
Revenue:: USD 639.45M
Net income:: USD 153.66M
Free cash flow:: USD 516.31M
Cash:: USD 43.57M
Total debt:: USD 1.86B
EPS:: USD 0.06
P/E ratio:: 28.5x
Financial score:: 12/100
Valuation score:: 62/100
Revenue score:: 46/100

What stands out

Reported year-over-year revenue growth is +0.0%.
Free cash flow is USD 516.31M, positive for the stored period.
The balance sheet shows USD 43.57M of cash versus USD 1.86B of total debt, with debt exceeding cash on these two reported measures.
The latest Wall Street Score change is +8.4 points: PSEC increased 8.4 points because Valuation improved by 42.2 points, Buffett improved by 4.5 points.
The current research record carries a fundamental change risk warning, which should be reviewed alongside the score.

Company-specific financial comparisons

The following are calculated from saved company data, not forecasts or statements about future performance. Differences in reporting dates or units can make a ratio misleading; verify the original filings.

Free cash flow is 80.7% of stored revenue. This is a simple cross-field ratio, not a verified same-period cash conversion margin; confirm reporting periods before comparison.
Net income equals 24.0% of stored revenue. This is an indicative ratio only; accounting periods and units should be verified in filings.
Debt exceeds cash by USD 1.82B using the stored balance-sheet values. This does not include other obligations or restricted cash.

Questions worth answering for PSEC

Use these questions to check the stored figures against the latest company filings. They identify issues to investigate; they are not findings about management's plans or future results.

Can PSEC maintain its current revenue growth rate and improve the amount of that revenue that turns into earnings and cash?
Is PSEC's positive free cash flow repeatable, or is the current level being helped by temporary working-capital or spending changes?
Is PSEC's debt load manageable relative to cash generation, interest costs and upcoming maturities?
What does the current fundamental change risk warning mean for the reliability or interpretation of PSEC's score?

What the numbers mean

Its current valuation score is 62/100, which Wall Street Score classifies as mixed within the model's valuation framework.

The financial score is 12/100. This is a starting point for reviewing liquidity, leverage and cash-flow strength rather than a stand-alone recommendation.

A strong company and an attractive stock price are not always the same thing. Revenue, earnings, free cash flow, debt, management quality, competitive advantage and valuation should be considered together. Wall Street Score organizes these inputs into a consistent research framework so investors can identify what deserves deeper review.

Data freshness: Financial data last refreshed 2026-10-15.

Research-input completeness: 100% of the scoring inputs required for this public page are currently available.

How to research PSEC

Start by understanding how the company makes money. Then compare revenue and earnings trends, cash generation, debt, liquidity and valuation. Review the company's latest filings and earnings reports before acting on any score or model estimate.

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Data may change as company filings and market prices update. Educational research only; not a buy or sell recommendation.