Saratoga Investment : 4th Quarter 2026 Earnings Conference Call PRESENTATION

Published: 2026-05-05 16:44:35 ET SAR

Published on 05/05/2026 at 04:44 pm EDT - Modified on 05/05/2026 at 04:45 pm EDT

Saratoga Investment Corp.

May 6, 2026

Continued Solid Performance in Fiscal and Q4 2026

Fiscal Year-End and Fourth Quarter 2026 Highlights:

Continued high quality portfolio and solid portfolio performance

Investment quality remains strong

96.8% of loan investments with highest internal rating and two on non-accrual (0.2% of fair value / 1.2% of cost) v industry average 3.3%

Core non-CLO BDC fair value 1.6% above cost

Return on equity of 9.1% for FY26, more than double industry average of 4.3%

Net realized losses and unrealized depreciation of $9.6 million in Q4, consisting of (i) net unrealized depreciation of $3.1 million in the non-CLO core portfolio, (ii) net unrealized depreciation of $6.3 million in the CLO, JV, and BB portfolio, and (iii) net realized losses of $0.3 million, consisting of the realization of the prior Roscoe equity write-down of $0.5 million, partially offset by receipt of an escrow payment on Hema Terra generating a $0.2 million realized gain.

Remaining total Pepper Palace fair value as of quarter-end is $2.0 million

Average ROE over the past twelve years of 10.1% exceeds industry average of 6.7% and is consistently positive and steady

Gross Unlevered IRR of 10.5% on total unrealized portfolio as of February 28, 2026

Overall fair value of $1.109 billion is 2.4% below total cost of portfolio

Gross Unlevered IRR of 14.9% on $1.37 billion of total realizations. Total investments originated by Saratoga are $2.53 billion in 130 companies.

Net originations this quarter include five new investments, continuing to grow long-term assets under management in strong credits

AUM of $1.109 billion, an increase of 9.2% since last quarter and 13.4% from last year, with $135.1 million in new originations partially offset by $34.0 million repayments. Full year originations of $309.5 million partially offset by $178.9 million of repayments.

Five new investments, 15 follow-ons and multiple BB and BBB CLO debt investments, partially offset by two full and five partial repayments, and one equity realization. For the full year we had nine new investments, 32 follow-ons, and multiple BB and BBB CLO debt investments.

Base of liquidity and capital remains strong, with significant refinancings completed this quarter

Quarter-end liquidity allows growth of AUM by 19%, with $21.8 million in cash.

4.375% $175m bond successfully refinanced through the issuance of 7.25% $50m bond and 7.5% $100m bond issuances during Q4

Declared aggregate dividend of $0.75 per share for the quarter ended May 31, 2026;

Transitioned to monthly dividend payment schedule in March 2025 - increased quarterly dividend by $0.01 per share to $0.75 per share ($0.25 per

share monthly payments). Also paid special dividend of $0.25 per share in December 2025. Total distributions in fiscal year 2026 were $3.74 per share.

Key performance indicators for FY26 and versus FY25

Adjusted NII of $37.5 million (down 29.2%), Adjusted NII per share of $2.37 (down 37.8%), Adjusted NII Yield of 9.3% (down from 14.1%), ROE of 9.1% (up from 7.5%), NAV of $396.2 million (up $3.5 million, or 0.9%) and NAV per share of $24.42 (down $1.44, or 5.6%)

Saratoga Double Digit Long-Term ROE Substantially Ahead of the BDC Industry

25.0%

23.6%

14.8%

13.2%

13.9%

11.5%

9.3%

9.4%

9.0%

10.1%

8.9%

9.1%

10.1%

7.5%

8.5%

8.9%

7.5%

6.7%

6.6%

7.2%

5.0%

4.3%

2.5%

0.9%

0.6%

20.0%

15.0%

10.0%

5.0%

0.0%

FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 Average 12

Years

Positive performance has led to SAR ROE beating the BDC industry nine of the past twelve years,

with a 12-year average that is almost 1.5x the industry and consistently positive every year

Consistent Long-Term Asset Growth and Solid Credit Quality

98.3%

94.2%

96.8% 98.6% 99.0%

98.5%

98.1% 99.7% 96.8%

94.1%

95.9%

93.3%

90.5%

82.4%

$1,200

$1,000

100%

1,139

$1,109

$973

$978

$818

$554

$486

$402

$343

$284 $293

$206 $241

$95 $155

$800

$600

$400

$200

80%

60%

Fair value of AUM increased 9.2% since last quarter and increased 13.4% year-over-year.

Fair value of $1,109.1m at Q4 FY26 is 2.4% below cost, with the core non-CLO BDC portfolio 1.6% above cost.

96.8% of SAR loan investments hold our highest internal rating, down slightly from last quarter; two investments on non-accrual at quarter-end (0.2% of fair value and 1.2% of cost)*

* Internal credit ratings exclude our investments in our Structured Finance Products and our equity positions.

Q4 FY26: Strong Asset Growth and ROE with NII Pressure

For the quarter ended and as of

($ in millions except per share)

February 28, 2025

November 30, 2025

February 28, 2026

Net investment income

$8.0

$9.8

$7.8

Adjusted net investment income1

$8.0

$9.8

$8.5

Net investment income per share

$0.56

$0.61

$0.48

Adjusted net investment income per share1

$0.56

$0.61

$0.53

Net investment income yield

8.4%

9.5%

7.7%

Adjusted net investment income yield1

8.4%

9.5%

8.4%

Return on Equity - Last Twelve Months

7.5%

9.7%

9.1%

Fair value of investment portfolio

$978.1

$1,016.0

$1,109.1

Total net assets

$392.7

$413.2

$396.2

Investments in new/existing portfolio companies

$41.8

$72.1

$135.1

Loan Investments held in "Performing" credit ratings

99.7%

99.8%

96.8%

$10,500

$8,500

$6,500

$10,500

$8,500

$6,500

$0.70

$0.50

$0.30

$0.70

$0.50

$0.30

10%

11%

$1,150

$1,000

$850

$450

$400

$350

$150

$75

100%

98%

96%

FY26: Strong Asset Growth and ROE with NII Pressure

For the year ended and as of

($ in millions except per share)

February 29, 2024

February 28, 2025

February 28, 2026

Net investment income

$56.9

$53.0

$36.8

Adjusted net investment income1

$51.9

$53.0

$37.5

Net investment income per share

$4.49

$3.81

$2.32

Adjusted net investment income per share1

$4.10

$3.81

$2.37

Net investment income yield

16.0%

14.1%

9.2%

Adjusted net investment income yield1

14.6%

14.1%

9.3%

Return on Equity - Last Twelve Months

2.5%

7.5%

9.1%

Fair value of investment portfolio

$1,138.8

$978.1

$1,109.1

Total net assets

$370.2

$392.7

$396.2

Investments in new/existing portfolio companies

$246.1

$168.1

$309.5

Loan Investments held in "Performing" credit ratings

98.1%

99.7%

96.8%

$60,000

$40,000

$20,000

$60,000

$40,000

$20,000

$5.00

$3.00

$1.00

$3.00

$5.00

$1.00 16%

12%

15%

10%

$1,200

$1,000

$800

$400

$375

$350

$250

$150

100%

97%

94%

Long-Term NAV and NAV Per Share Growth With Recent Discrete Decline

Net Asset Value and NAV per Share

(FY11 to FY26)

NAV: 4% decrease this quarter. 361% increase since Saratoga took over management.

NAV/Share: 4.6% decrease this quarter. 11% increase since FY17 with increases 23 of the last 34 quarters.

$410.5

$396.4

$392.7

$396.2

$29.17

$29.33

$355.8

$29.18

$362.1$359.6

$370.2$367.9$372.1$374.9

$28.97 $342.6

$3284.56.29 $347.0$28.48

$337.2 $335.8 $337.5$28.44

$28.70 $324.1 $28.27$28.25

$320.3

$27.13

$304.3

$26.68

$298.2$299.9

$304.2

$27.25

$27.42

$26.95

$281.6

$26.84

$26.85

$26.19

$25.59

$25.86

$25.52$25.61

$25.11

$24.94

$180.9

$24.42

$23.62

$22.72

$143.7

$122.6$125.1$127.3$22.96

$107.0

$113.0

$97.0

$86.0

$21.08$22.70 $22.06$21.97

$27.07

$27.12

$380

$330

$280

$230

(in millions)

$413.2

$30

$29

$28

$27

$26

$25

$180

$130

$80

$24

$23

$22

$21

Quarterly Reconciliation of NII and NAV per Share

(1)(2)

$0.61

$0.53

$(0.09)

$(0.03) $0.02 $(0.01) $0.03

Adjusted NII per

Decrease in

Increase in

Decrease in Operating

Decrease due to

Adjusted NII per

Share for Q3 FY26

non-CLO

Other Income

Base Management Fees

Expenses (excluding

impact of annual

Share for Q4 FY26

Net Interest Income

excise tax expense)

Excise Tax expense

$25.59

$24.42

$0.48 $(0.60) $(0.01) $(0.04) $(1.00)

NAV per

GAAP NII

Net Realized Losses and

Net Change in Deferred

Realized Loss on

Monthly Q3 & Q4 FY26

NAV per

Share as of

for Q4 FY26

Unrealized Depreciation

Taxes on Unrealized

Extinguishment of Debt

and Special Dividends

Share as of

Q3 FY26

on Investments

Appreciation on

with Record Dates in Q4

Q4 FY26

Investments

Impacts are shown net of incentive fees

Zero impact due to increased net share count from DRIP, ATM, and share repurchases

Annual Reconciliation of NII and NAV per Share

(1)

$3.81

$2.37

$(1.15)

$0.12 $0.05 $0.03 $0.03 $(0.06) $(0.46)

Adjusted NII per

Decrease in non-CLOIncrease in CLO and

Increase in

Decrease in

Increase due to

Increase in operating

Decrease due to

Adjusted NII per

Share for FY25

net interest incomeBB/BBB Investments

other income

base management feerseduction of annualexpenses (excludingincreased net share

Share for FY26

Interest Income

(2)

excise tax

excise tax expense)count from DRIP and

ATM and repurchases

$25.86

$24.42

$(3.74)

$2.32

$0.03 $0.01

$(0.05) $(0.01)

NAV per Share as of FY25

GAAP NII

for FY26

Net Realized Gains and Unrealized Depreciation on Investments

Net Change in Deferred Taxes on Unrealized Depreciation on

FY26 and Special Dividends Declared

Realized Loss on Extinguishment of Debt

Net Dilution from ATM and DRIP and repurchases

NAV per Share as of FY26

Impacts are shown net of incentive fees

Investments

Includes the impact of the different share amounts used for different items (weighted average basic common shares outstanding for the full year earnings

numbers and actual common shares outstanding at the end of the year) in the per common share data calculation and rounding impacts.

Dry Powder Remains Available

(As of February 28, 2026)

Total Borrowing Capacity

Outstanding

Available Liquidity

Remaining Maturity Period

Call Period

Fixed / Floating Rate

Valley National Bank Credit Facility

$85.0 million

$32.5 million

$52.5 million

3 Year

Floating

Live Oak Credit Facility

$75.0 million

$37.5 million

1 Year

Floating

SBA Debentures1

SBIC II

$84.0 million

4-6 years

Now

Fixed

SBIC III

$175.0 million

$76.0 million

$99.0 million

7-8 years

Now

Fixed

SAT

$105.5 million

1 Year

Now

Fixed

SAJ

$46.0 million

1.5 Years

Now

Fixed

Publicly-Traded Notes

(at par value)

SAY

SAZ

$60.4 million

$57.5 million

$60.4 million

$57.5 million

2 Years

Now

Fixed

SAV

$100.0 million

5 Years

2 Years

Fixed

Unsecured Notes

$75.0 million

1 Year

Fixed

Private Notes

(at par value)

$65.0 million

2-5 Years

Now - 2 Years

Fixed

Cash and Cash Equivalents

$21.8 million

Total Available Liquidity (at quarter-end): $210.8 million

Ability to grow AUM by 19% without any new external financing as of February 28, 2026

SBIC III debentures are generally not available to support existing BDC or SBIC II investments

Total availability for all combined SBIC licenses currently limited to $259.0 million outstanding debentures.

Portfolio Composition and Yield

(Based on Fair Values as of February 28, 2026)

(Weighted Average

Current Yield of Total Existing Portfolio)

Second Lien 3.9%

Structured Finance Securities 4.9%

Common Equity 7.6%

Unsecured Loan 1.5%

Second Lien 11.9%

Structured Finance Securities 11.6%

Common Equity

0.0%

Unsecured Loan 10.9%

First Lien 82.1%

First Lien 10.2%

Yield of BDC Grew With Rising Rates - Currently Declining

13.4%

Annual Totals1

11.8%

11.1%

10.8%

11.1%

10.7%

9.3%

9.1%

7.7%

10.7%

11.4%

10.8%

9.6%

14.0%

$1,000

8.0%

11.6%

$800

7.4%

16.4%

8.9%

$ Millions

$600

$400

7.6%

5.9%

5.3% 21.2%

14.6%

11.4%

11.6%

9.5%

12.1%

12.6%

11.5%

10.4%

$200

6.2%

18.6%

6.2%

25.2%

14.0% 16.4%

10.9%

9.8%

9.6%

20.2%

27.1%

11.1%

11.9%

11.3% 10.6%

11.0%

11.2%

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26

1) Annual total yields on fair value of full portfolio. Excludes dividend income on preferred equity investments and other income. BDC, CLO related and Syndicated yields are annualized and calculated on fair value of interest earning assets.

Diversified Across Geography

International

1.7% Other

8.0%

West 12.7%

Southeast

20.2%

Southwest 9.8%

Northeast 16.9%

Midwest 30.7%

Diversified Across Industry

Financial Services, 2.9% Education Software, 2.9% Revenue Cycle Management &

Dental Practice Management,

Related Services, 2.5%

Municipal Government Software, 3.0%

Surgical Benefits Management, 3.1%

Employee Collaboration Software, 3.1%

2.9%

Talent Acquisition Software, 2.5% Health/Fitness Franchisor, 2.2%

Architecture & Engineering

Software, 2.1%

Insurance Software, 2.1%

Property Operations Management Software, 2.1%

Education Services, 3.2%

Research Software, 3.3% Custom Millwork Software,

3.6%

Healthcare Software, 4.1%

HVAC Services and Sales, 4.7%

Real Estate Services, 4.7%

Restaurant, 5.0%

Consumer Services, 6.0%

Structured Finance Securities,

6.5% Healthcare Services, 8.4%

Staffing Services, 0.2%

Mentoring Software, 1.9% Corporate Education Software,

1.8%

Direct Selling Software, 1.8%

Fire Inspection Business Software, 1.8%

IT Services, 1.7%

Marketing Orchestration Software, 1.5%

Veterinary Services, 1.2% Alternative Investment Management

Software, 1.2%

Volunteer Program Management Software, 1.2%

Supply Chain Planning Software, 1.1% Industrial Products, 0.8%

HVAC Monitoring Devices, 0.7%

Product Compliance Software, 0.5% Office Supplies, 0.5%

Cyber Security, 0.4%

Association Management Software, 0.2%

Net Realized Gains Help Protect Shareholder Capital

Cumulative net realized gains reflect portfolio credit quality

$ in thousands

FY18

$42,877

$45,362

$12,368

$13,398

$8,495

$562

$1,271

$3,276

$4,874

$5,746

$226

FY13

FY14

FY15

FY16

FY17

FY19

FY20

$22

FY21 FY22** FY23

$154

FY24 FY25*** FY26

-$5,878*

Total Since FY13

$(42,029)

$50,000

$40,000

$30,000

$20,000

$10,000

-$10,000

-$20,000

-$30,000

-$40,000

-$50,000

Table above reflects investments originated by Saratoga management (excludes Elyria legacy investment)

*Reflects realized loss on My Alarm Center investment of $7.7m less $1.8m in other realized gains in FY18.

**Reflects realized gains of $18.3m on various equity investments in FY22, offset by full $4.9m write-down of remaining My Alarm Center investment.

*** Reflects realized loss of $15.1M on Zollege, $5.5M on Netreo, and $34.0M on Pepper Palace investment, offset by realized gains of $4.8M on Invita,

$1.3m on Nauticon, and $.5.5m on Modern Campus investments in FY25.

Exercising Disciplined Investment Judgment

SAR Debt Multiples/Deals Closed (2020-2026)(1)

New Portfolio Companies

37(4)

Multiples for

SAR's non-recurring revenue deals increased slightly this quarter remaining below the industry levels

Number of executed investments

Portfolio leverage with non-recurring revenue underwriting is 5.30x(2)(3)

Average Middle Market

9/30/2025 12/31/2025

All Senior

3.73x

3.85x

1st Lien/Mezz

1st Lien/2nd Lien

5.09x

>6.00x

5.37x

5.13x

Unitranche

5.46x

5.40x

Calendar quarters, not fiscal, excludes investments in CLO BB and BBB securities

Excludes 23 loans underwritten using recurring revenue metrics. These recurring revenue loans would have significantly different portfolio leverage statistics.

Pepper Palace leverage is excluded due to negative EBITDA.

8 of the 37 deals closed in calendar year 2020 were liquidity draws related to COVID. 16

Pipeline Remains Healthy and Growing Reflecting Business Development Initiatives

New business opportunities remain healthy and robust reflecting the result of recent business

development initiatives

Calendar(1)

2021 ∆ 2022 ∆ 2023 ∆ 2024 2025

LTM Q1 2026

~46% of deal flow from private equity sponsors

~54% of deals from private companies without institutional

Deals

Sourced(2)

Term

Sheets

572 -18% 469 8% 506 -4% 484 61% 777 - 776

ownership

Saratoga maintains investment discipline which is demonstrated by passing on many deals that other firms close

~80% of term sheets are currently issued for transactions involving a

(excludes follow-ons)

67 -30% 47 --17% 39

-46% 21 276% 79 37% 108

private equity sponsor

Selective in issuing term sheets based on credit quality

Deals Executed (new and follow-on)

47 32% 62 26% 78 -46% 42 -24% 32 41% 45

Includes follow-on investments which reliably augment portfolio growth

2021 deals executed exclude COVID related liquidity draws

New portfolio

companies 12 9 9 2 7 10

10 new portfolio companies during Calendar LTM Q1 2026

Saratoga new portfolio company investments generally average ~1-2% of deals reviewed

Calendar quarters, not fiscal quarters.

Excludes BB and BBB CLO investments

Demonstrated Strong Track Record

(Gross Unlevered IRR%)

20%

16%

12%

$561.1m

16.8%

$209.1m

$113.3m

$487.1m

13.4% 13.4% 12.9%

14.9%

16%

12.9%

12.2%

10.5%

6.5%

0.0%

$377.5m

$1,162.2m

$420.8m

$363.9m

$1,370.6m

12%

SBIC I

Investments(a)

SBIC II

Investments(a)

SBIC III

Investments(a)

BDC

Investments(a)

Combined Weighted SBIC and BDC Investments(a)

SBIC I

Investments

SBIC II

Investments

SBIC III

Investments

BDC

Investments(a)

Combined Weighted SBIC and BDC Investments(a)

Track Record as of 2/28/2026

Graphs show invested dollars, partially realized investments still reflected fully in unrealized

Track record reflects the Zollege and Pepper Palace investments as fully unrealized as we still own the Companies

IRRs for unrealized investments include fair value and accrued interest as of 2/28/2026

SBIC I, SBIC II and SBIC III investments represent all investments in the specific funds, including later follow-ons that might be invested in the BDC due to SBIC fund size limitations. BDC investments exclude investments existing when Saratoga management took over, corporate financing investments, investments in CLO BB and BBB debt securities and our investments in our CLO and JV.

SBIC II Debenture Repayments Commenced - SBIC III Availability(1)(2)

$99.0m

debentures undrawn

$233.7

$167.6

15%

21%

$400

$350

$300

$250

$200

$150

$100

$50

SBIC II SBIC III

SBIC III cash available for new originations and follow-ons in existing license, with SBIC II cash only available for follow-ons

SBIC III has $99 million of available debentures based on the SBA family of funds limit

Long-Term Consistent Dividend Growth

$0.25 per share monthly

increments

Established dividend policy to pay regular quarterly cash dividends to stockholders pursuant to dividend reinvestment plan ("DRIP") in 2014

Dividends Per Share*

$0.75

$0.74

$0.73

$0.72

$0.71

$0.70

$0.69

$0.68

$0.54

$0.53

$0.52

$0.44

$0.43

$0.42

$0.41

$0.40

$0.56

$0.55

$0.54

$0.53

$0.52

$0.51

$0.50

$0.49

$0.48

$0.47

$0.46

$0.45

$0.44

$0.43

$0.41

$0.40

$0.36

$0.33

$0.27

$0.22

7% Dividend Increase Over Past Three Years

Q1 2027** Q4 2026** Q3 2026** Q2 2026** Q1 2026** Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

Q2 2024

Q1 2024

Q4 2023

Q3 2023

Q2 2023

Q1 2023

Q4 2022

Q3 2022

Q2 2022

Q1 2022

Q4 2021

Q3 2021

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Q2 2020

Q1 2020

Q4 2019

Q3 2019

Q2 2019

Q1 2019

Q4 2018

Q3 2018

Q2 2018

Q1 2018

Q4 2017

Q3 2017

Q2 2017

Q1 2017

Q4 2016

Q3 2016

Q2 2016

Q1 2016

Q4 2015

Q3 2015

$0.00

* Excludes special dividend of $0.20 per share paid on September 5, 2016, special dividend of $0.35 per share paid on December 19, 2024, and special dividend of $0.25 per share paid on December 18, 2025

** Q1 2026 dividend commenced monthly dividends of $0.25 per share from March 2025 onwards

Disclaimer

Saratoga Investment Corporation published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 20:41 UTC.