<span item_type="fundamental" item_id="48e53a19dcbeb9358b5d7fbc60ceeab6" counter_id="ST/US/PFLT" env="prod"></span><span item_type="announcement" item_id="614324468008749697" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 70.09 M, missing the estimate of USD 70.28 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -0.04.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -10.58 M.</p><p></p><h4>Investment Income</h4><p>PennantPark Floating Rate Capital Ltd.’s investment income for the three months ended December 31, 2025, totaled $70.1 million, an increase from $67.0 million for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. This income was primarily derived from $64.2 million from first lien secured debt and $5.9 million from other investments in 2025, compared to $61.0 million from first lien secured debt and $6.0 million from other investments in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Expenses</h4><p>Total expenses for the three months ended December 31, 2025, were $43.5 million, an increase from $37.0 million in the prior year period <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. This included $27.2 million in debt-related interest and expenses (vs. $22.4 million in 2024), $6.8 million in base management fees (vs. $5.3 million in 2024), $6.7 million in performance-based incentive fees (vs. $7.5 million in 2024), $2.1 million in general and administrative expenses (vs. $1.7 million in 2024), $0.2 million in taxes, and $0.5 million in Credit Facility amendment costs <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Net Investment Income</h4><p>Net investment income for the three months ended December 31, 2025, was $26.6 million, or $0.27 per share, a decrease from $30.0 million, or $0.37 per share, for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. Core net investment income per share was $0.27 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Net Realized Gains or Losses</h4><p>Net realized gains for the three months ended December 31, 2025, were $1.5 million, a decrease from $26.7 million in net realized gains reported for the three months ended December 31, 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Unrealized Appreciation or Depreciation on Investments and Debt</h4><p>For the three months ended December 31, 2025, PennantPark Floating Rate Capital Ltd. reported a net change in unrealized depreciation on investments of - $32.3 million, compared to - $29.0 million for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. As of December 31, 2025, net unrealized depreciation on investments totaled - $78.4 million, up from - $46.1 million as of September 30, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. The Credit Facility had a net change in unrealized depreciation of less than - $0.1 million for the three months ended December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Net Change in Net Assets Resulting from Operations</h4><p>Net decrease in net assets resulting from operations totaled - $3.6 million, or - $0.04 per share, for the three months ended December 31, 2025, compared to a net increase of $28.3 million, or $0.35 per share, for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Portfolio and Investment Activity</h4><p>As of December 31, 2025, the investment portfolio totaled $2,605.3 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. This consisted of $2,310.2 million in first lien secured debt, $20.1 million in second lien and subordinated debt, and $275.0 million in preferred and common equity <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. Approximately 99% of the debt portfolio consisted of variable-rate investments, and four portfolio companies were on non-accrual status, representing 0.5% and 0.1% of the overall portfolio on a cost and fair value basis, respectively <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. The overall portfolio comprised 160 companies with an average investment size of $16.3 million and a weighted average yield on debt investments of 9.9% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. For the three months ended December 31, 2025, PennantPark Floating Rate Capital Ltd. invested $301.0 million in four new and 51 existing portfolio companies at a weighted average yield of 10.0% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. Sales and repayments of investments totaled $441.4 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>PennantPark Senior Secured Loan Fund I LLC (PSSL)</h4><p>As of December 31, 2025, PSSL’s portfolio totaled $1,195.0 million, consisting of 120 companies with an average investment size of $10.0 million and a weighted average yield on debt investments of 9.6% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. For the three months ended December 31, 2025, PSSL invested $133.8 million and had sales and repayments of $12.4 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>PennantPark Senior Secured Loan Fund II LLC (PSSL II)</h4><p>As of December 31, 2025, PSSL II’s portfolio totaled $193.2 million, consisting of 41 companies with an average investment size of $4.7 million and a weighted average yield on debt investments of 9.0% <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. For the three months ended December 31, 2025, PSSL II invested $196.5 million and had sales and repayments of $2.9 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Liquidity and Capital Resources</h4><p>As of December 31, 2025, cash and cash equivalents were $95.3 million, down from $122.7 million as of September 30, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. The annualized weighted average cost of debt was 6.2% for the three months ended December 31, 2025, lower than 7.0% for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. Unused borrowing capacity under the Credit Facility was $279.1 million as of December 31, 2025, an increase from $34.1 million as of September 30, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Cash Flow</h4><p>For the three months ended December 31, 2025, operating activities provided $148.6 million in cash, while financing activities used - $176.0 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. In contrast, for the three months ended December 31, 2024, operating activities used - $232.7 million in cash, and financing activities provided $222.9 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Distributions</h4><p>Distributions declared per share were $0.31 for the quarter ended December 31, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. Total distributions declared for the three months ended December 31, 2025, were $30.5 million, compared to $25.2 million for the same period in 2024 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p><h4>Outlook / Guidance</h4><p>PennantPark Floating Rate Capital Ltd.’s CEO noted the momentum of the PSSL II joint venture, which invested approximately $200 million during the quarter and an additional $130 million post-quarter <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. PSSL II also upsized its credit facility to $250 million to support growth in net investment income and dividend coverage <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>. The company maintains confidence in its portfolio’s durability and performance due to its disciplined investment approach <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1504619/000117184326000703/exh_991.htm"></span>.</p>

Pennantpark Floating Rate Capital | 8-K: FY2026 Q1 Revenue Misses Estimate at USD 70.09 M