PennantPark Floating Rate Capital (PFLT)
Market Price (8/24/2026): $7.4 | Market Cap: $734.2 MilSector: Financials | Industry: Asset Management & Custody Banks
PennantPark Floating Rate Capital (PFLT)
Market Price (8/24/2026): $7.4Market Cap: $734.2 MilSector: FinancialsIndustry: Asset Management & Custody Banks
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 24%, Dividend Yield is 17%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 19% Low stock price volatilityVol 12M is 23% Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Credit. | Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -74% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 202% Expensive valuation multiplesP/SPrice/Sales ratio is 12x Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -31%, Rev Chg QQuarterly Revenue Change % is -64% Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -94%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -94% Key risksPFLT key risks include [1] heightened credit defaults from its portfolio of highly leveraged, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 24%, Dividend Yield is 17%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 19% |
| Low stock price volatilityVol 12M is 23% |
| Megatrend and thematic driversMegatrends include Digital & Alternative Assets. Themes include Private Credit. |
| Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -74% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 202% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 12x |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -31%, Rev Chg QQuarterly Revenue Change % is -64% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -94%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -94% |
| Key risksPFLT key risks include [1] heightened credit defaults from its portfolio of highly leveraged, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Updated on 8/10/2026
PennantPark Floating Rate Capital (PFLT) stock has lost about 15% since 4/30/2026 because of the following key factors:
1. Lower-than-expected earnings and net asset value (NAV) decline in fiscal Q2 and Q3 2026.
PennantPark Floating Rate Capital (PFLT) reported core net investment income (NII) of $0.27 per share for fiscal Q2 2026 (ended March 31, 2026), missing the Zacks Consensus Estimate of $0.28 per share by 3.57% (results released May 7, 2026). Subsequently, for fiscal Q3 2026 (ended June 30, 2026), core NII per share was $0.26, which missed the average analyst estimate of $0.27 per share (results released August 10, 2026). Concurrently, the company's GAAP NAV per share declined by 2.0% from $10.47 at March 31, 2026, to $10.26 at June 30, 2026.
2. Significant reduction in monthly dividend distributions.
In June 2026, PFLT announced a monthly dividend distribution of $0.0833 per share. This represented a notable 18.73% decrease from the $0.1025 per share declared for May 2026, likely impacting investor confidence and contributing to the stock's decline.
Show more
PennantPark Floating Rate Capital (PFLT) stock has lost about 15% since 4/30/2026 because of the following key factors:
1. Lower-than-expected earnings and net asset value (NAV) decline in fiscal Q2 and Q3 2026.
PennantPark Floating Rate Capital (PFLT) reported core net investment income (NII) of $0.27 per share for fiscal Q2 2026 (ended March 31, 2026), missing the Zacks Consensus Estimate of $0.28 per share by 3.57% (results released May 7, 2026). Subsequently, for fiscal Q3 2026 (ended June 30, 2026), core NII per share was $0.26, which missed the average analyst estimate of $0.27 per share (results released August 10, 2026). Concurrently, the company's GAAP NAV per share declined by 2.0% from $10.47 at March 31, 2026, to $10.26 at June 30, 2026.
2. Significant reduction in monthly dividend distributions.
In June 2026, PFLT announced a monthly dividend distribution of $0.0833 per share. This represented a notable 18.73% decrease from the $0.1025 per share declared for May 2026, likely impacting investor confidence and contributing to the stock's decline.
Show more
Updated on 8/10/2026
PennantPark Floating Rate Capital (PFLT) stock has lost about 15% since 4/30/2026 because of the following key factors:
1. Lower-than-expected earnings and net asset value (NAV) decline in fiscal Q2 and Q3 2026.
PennantPark Floating Rate Capital (PFLT) reported core net investment income (NII) of $0.27 per share for fiscal Q2 2026 (ended March 31, 2026), missing the Zacks Consensus Estimate of $0.28 per share by 3.57% (results released May 7, 2026). Subsequently, for fiscal Q3 2026 (ended June 30, 2026), core NII per share was $0.26, which missed the average analyst estimate of $0.27 per share (results released August 10, 2026). Concurrently, the company's GAAP NAV per share declined by 2.0% from $10.47 at March 31, 2026, to $10.26 at June 30, 2026.
2. Significant reduction in monthly dividend distributions.
In June 2026, PFLT announced a monthly dividend distribution of $0.0833 per share. This represented a notable 18.73% decrease from the $0.1025 per share declared for May 2026, likely impacting investor confidence and contributing to the stock's decline.
3. Substantial net unrealized depreciation on investments in fiscal Q3 2026.
For the fiscal third quarter ended June 30, 2026, PFLT reported a significant $122.8 million in net unrealized depreciation on its investments. This markdown in the value of its portfolio raises concerns about asset quality and potential future impacts on profitability.
4. Broader private credit sector concerns and challenging macroeconomic environment for Business Development Companies (BDCs).
The BDC sector, including PFLT, has experienced general underperformance, with BDC equities declining approximately 20% relative to the broader market from early 2025 to mid-2026. This trend reflects market anxieties about the private credit sector, highlighted by an increase in Payment-in-Kind (PIK) usage across BDC portfolios, which rose from about 6% to 10% by early 2026, indicating that borrowers are facing challenges with cash flow. Additionally, declining base interest rates have compressed investment income for floating-rate lenders like PFLT, creating pressure on earnings that had previously benefited from higher rate environments.
Show less
PennantPark Floating Rate Capital (PFLT) stock has lost about 15% since 4/30/2026 because of the following key factors:
1. Lower-than-expected earnings and net asset value (NAV) decline in fiscal Q2 and Q3 2026.
PennantPark Floating Rate Capital (PFLT) reported core net investment income (NII) of $0.27 per share for fiscal Q2 2026 (ended March 31, 2026), missing the Zacks Consensus Estimate of $0.28 per share by 3.57% (results released May 7, 2026). Subsequently, for fiscal Q3 2026 (ended June 30, 2026), core NII per share was $0.26, which missed the average analyst estimate of $0.27 per share (results released August 10, 2026). Concurrently, the company's GAAP NAV per share declined by 2.0% from $10.47 at March 31, 2026, to $10.26 at June 30, 2026.
2. Significant reduction in monthly dividend distributions.
In June 2026, PFLT announced a monthly dividend distribution of $0.0833 per share. This represented a notable 18.73% decrease from the $0.1025 per share declared for May 2026, likely impacting investor confidence and contributing to the stock's decline.
3. Substantial net unrealized depreciation on investments in fiscal Q3 2026.
For the fiscal third quarter ended June 30, 2026, PFLT reported a significant $122.8 million in net unrealized depreciation on its investments. This markdown in the value of its portfolio raises concerns about asset quality and potential future impacts on profitability.
4. Broader private credit sector concerns and challenging macroeconomic environment for Business Development Companies (BDCs).
The BDC sector, including PFLT, has experienced general underperformance, with BDC equities declining approximately 20% relative to the broader market from early 2025 to mid-2026. This trend reflects market anxieties about the private credit sector, highlighted by an increase in Payment-in-Kind (PIK) usage across BDC portfolios, which rose from about 6% to 10% by early 2026, indicating that borrowers are facing challenges with cash flow. Additionally, declining base interest rates have compressed investment income for floating-rate lenders like PFLT, creating pressure on earnings that had previously benefited from higher rate environments.
Show less
Holding a concentrated position? Know your true downside before the momentum shifts.
Protect Your Wealth →
Stock Movement Drivers
Fundamental Drivers
The -14.0% change in PFLT stock from 4/30/2026 to 8/23/2026 was primarily driven by a -41.1% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 8.57 | 7.37 | -14.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 47 | 62 | 31.2% |
| Net Income Margin (%) | 73.0% | 81.1% | 11.2% |
| P/E Multiple | 24.7 | 14.6 | -41.1% |
| Shares Outstanding (Mil) | 99 | 99 | 0.0% |
| Cumulative Contribution | -14.0% |
Market Drivers
4/30/2026 to 8/23/2026| Return | Correlation | |
|---|---|---|
| PFLT | -14.0% | |
| Market (SPY) | 6.5% | 22.9% |
| Sector (XLF) | 10.3% | 34.1% |
Fundamental Drivers
The -15.3% change in PFLT stock from 1/31/2026 to 8/23/2026 was primarily driven by a -20.9% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 1312026 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 8.70 | 7.37 | -15.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 78 | 62 | -20.9% |
| Net Income Margin (%) | 84.8% | 81.1% | -4.3% |
| P/E Multiple | 13.0 | 14.6 | 11.8% |
| Shares Outstanding (Mil) | 99 | 99 | 0.1% |
| Cumulative Contribution | -15.3% |
Market Drivers
1/31/2026 to 8/23/2026| Return | Correlation | |
|---|---|---|
| PFLT | -15.3% | |
| Market (SPY) | 11.0% | 42.4% |
| Sector (XLF) | 8.1% | 49.5% |
Fundamental Drivers
The -18.5% change in PFLT stock from 7/31/2025 to 8/23/2026 was primarily driven by a -26.4% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 7312025 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.05 | 7.37 | -18.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 84 | 62 | -26.4% |
| Net Income Margin (%) | 80.6% | 81.1% | 0.6% |
| P/E Multiple | 12.0 | 14.6 | 21.1% |
| Shares Outstanding (Mil) | 90 | 99 | -9.2% |
| Cumulative Contribution | -18.5% |
Market Drivers
7/31/2025 to 8/23/2026| Return | Correlation | |
|---|---|---|
| PFLT | -18.5% | |
| Market (SPY) | 22.2% | 41.3% |
| Sector (XLF) | 11.1% | 47.3% |
Fundamental Drivers
The -5.2% change in PFLT stock from 7/31/2023 to 8/23/2026 was primarily driven by a -623.9% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 7312023 | 8232026 | Change |
|---|---|---|---|
| Stock Price ($) | 7.78 | 7.37 | -5.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | -12 | 62 | -623.9% |
| P/S Multiple | -31.9 | 11.8 | -137.0% |
| Shares Outstanding (Mil) | 49 | 99 | -51.1% |
| Cumulative Contribution | -5.2% |
Market Drivers
7/31/2023 to 8/23/2026| Return | Correlation | |
|---|---|---|
| PFLT | -5.2% | |
| Market (SPY) | 73.2% | 49.2% |
| Sector (XLF) | 70.0% | 53.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PFLT Return | 33% | -6% | 23% | 1% | -4% | -13% | 30% |
| Peers Return | 31% | -12% | 34% | 20% | -5% | -4% | 69% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 103% |
Monthly Win Rates [3] | |||||||
| PFLT Win Rate | 75% | 50% | 50% | 67% | 67% | 38% | |
| Peers Win Rate | 80% | 45% | 70% | 72% | 53% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| PFLT Max Drawdown | -10% | -30% | -16% | -11% | -21% | -23% | |
| Peers Max Drawdown | -8% | -26% | -10% | -10% | -22% | -20% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ARCC, BXSL, OBDC, TSLX, FSK.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/21/2026 (YTD)
How Low Can It Go
| Event | PFLT | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -17.9% | -18.8% |
| % Gain to Breakeven | 21.8% | 23.1% |
| Time to Breakeven | 100 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -11.3% | -7.8% |
| % Gain to Breakeven | 12.7% | 8.5% |
| Time to Breakeven | 59 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.6% | -24.5% |
| % Gain to Breakeven | 26.0% | 32.4% |
| Time to Breakeven | 102 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -69.2% | -33.7% |
| % Gain to Breakeven | 225.0% | 50.9% |
| Time to Breakeven | 295 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -12.2% | -19.2% |
| % Gain to Breakeven | 13.9% | 23.8% |
| Time to Breakeven | 35 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -18.1% | -12.2% |
| % Gain to Breakeven | 22.1% | 13.9% |
| Time to Breakeven | 89 days | 62 days |
In The Past
PennantPark Floating Rate Capital's stock fell -17.9% during the 2025 US Tariff Shock. Such a loss loss requires a 21.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | PFLT | S&P 500 |
|---|---|---|
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -20.6% | -24.5% |
| % Gain to Breakeven | 26.0% | 32.4% |
| Time to Breakeven | 102 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -69.2% | -33.7% |
| % Gain to Breakeven | 225.0% | 50.9% |
| Time to Breakeven | 295 days | 140 days |
In The Past
PennantPark Floating Rate Capital's stock fell -17.9% during the 2025 US Tariff Shock. Such a loss loss requires a 21.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About PennantPark Floating Rate Capital (PFLT)
PennantPark Floating Rate Capital Ltd. (PFLT) operates as a Business Development Company (BDC) primarily focused on providing capital to middle-market companies. Its core activity involves making debt and equity investments, with a strong emphasis on floating rate loans. PFLT targets private companies, as well as thinly traded or small market-capitalization public companies, that often have limited access to traditional financing sources.
The company's main products are floating rate loans, particularly senior secured loans, which are anticipated to make up approximately 65% of its portfolio. In addition to these, PFLT also invests in mezzanine debt and acquires equity stakes, such as preferred stock, common stock, or warrants, often obtained in conjunction with its debt investments. Individual investment sizes typically range from $2 million to $50 million. PFLT specifically seeks out companies that are generally unrated by national credit agencies, or if rated, would fall within the BB to CCC range under Standard & Poor's system, indicating a focus on higher-yielding, sub-investment grade opportunities.
PFLT primarily serves businesses located within the United States, though it allocates a limited portion of its investments to non-U.S. companies. While its strategy centers on private middle-market debt, the company maintains flexibility by investing up to 30% of its assets in "non-qualifying" categories. These can include public company securities, high-yield bonds, distressed debt, or certain non-U.S. middle-market companies, offering a degree of diversification beyond its core investment strategy.
AI Analysis | Feedback
- It's like the publicly traded private credit arm of a major bank (such as Goldman Sachs), but focused entirely on making adjustable-rate loans to mid-sized companies.
- Imagine a public bond fund, but one that directly originates and holds its own adjustable-rate loans to private, middle-market businesses instead of buying public bonds.
AI Analysis | Feedback
- Floating Rate Loans: The company provides loans with interest rates that adjust periodically, primarily to private or thinly traded middle-market companies.
- Senior Secured Loans: These are debt investments that hold the highest priority claim on a borrower's assets, forming a significant portion of the company's portfolio.
- Mezzanine Debt: The fund invests in subordinated debt that typically includes an equity component, offering higher yields and greater risk than senior debt.
- Equity Investments: PennantPark Floating Rate Capital makes direct investments in equity securities such as preferred stock, common stock, warrants, and options.
AI Analysis | Feedback
null
AI Analysis | Feedback
null
AI Analysis | Feedback
PennantPark Floating Rate Capital Ltd. (PFLT) is externally managed by PennantPark Investment Advisers, LLC. The key management team members overseeing PFLT, primarily through the external advisor, include:
Arthur H. Penn, Chairman of the Board and Chief Executive Officer
Arthur H. Penn is the Founder and Managing Partner of PennantPark Investment Advisers. He has over 30 years of experience in middle-market direct lending, mezzanine lending, leveraged finance, distressed debt, and private equity businesses. Penn co-founded Apollo Investment Management in 2004, serving as a Managing Partner from 2004 to 2006, and as Chief Operating Officer, and later President and Chief Operating Officer, of Apollo Investment Corporation from its inception in 2004 to 2006. Prior to founding PennantPark, he was Global Head of Leveraged Finance at UBS Warburg LLC (now UBS Investment Bank) from 1999 to 2001, and Global Head of Fixed Income Capital Markets for BT Securities and BT Alex. Brown Incorporated from 1994 to 1999. He also served as Head of High-Yield Capital Markets at Lehman Brothers from 1992 to 1994.
Richard T. Allorto, Jr., Chief Financial Officer and Treasurer
Richard T. Allorto, Jr. serves as the Chief Financial Officer and Treasurer for PennantPark Floating Rate Capital Ltd. He is responsible for the company's financial reporting and capital management. In recent months, Allorto has made significant open-market purchases of PFLT common stock, increasing his holdings and signaling confidence in the company's future prospects.
José A. Briones, Jr., Senior Partner
José A. Briones, Jr. is a Senior Partner at PennantPark Investment Advisers, LLC, having joined in December 2009. He is involved in originating, underwriting, executing, and monitoring investments for the company, as well as various strategic initiatives. Before joining PennantPark, Briones was a Partner at Apollo Investment Management, L.P. and a member of its investment committee from 2006. His prior experience also includes roles at UBS Securities, JP Morgan, and BT Securities and BT Alex Brown Inc.
AI Analysis | Feedback
PennantPark Floating Rate Capital (PFLT) faces several key risks inherent to its business model as a business development company (BDC) specializing in lending to middle-market companies. Based on its investment strategy and recent financial commentary, the most significant risks include:
1. Excessive Leverage and Dividend Sustainability
PennantPark Floating Rate Capital has exhibited elevated leverage levels, which are notably higher than the average for the broader BDC sector and are considered meaningfully above prudent norms. This aggressive leverage amplifies both potential gains and losses, increasing the company's financial risk profile. A direct consequence of this leverage, combined with operational factors, has been a struggle to maintain adequate dividend coverage. Recent reports indicate that core Net Investment Income (NII) per share has fallen short of the base dividend, signaling a gap in dividend coverage and raising concerns about the long-term sustainability of its attractive dividend yield. Furthermore, the company's "clear push towards unconsolidated JVs" may facilitate additional leverage, potentially circumventing BDC regulatory limits on a consolidated level and adding another layer of risk.2. Credit Risk and Borrower Defaults
PFLT primarily invests in senior secured and mezzanine debt of private or thinly traded middle-market companies, many of which are unrated or would be rated sub-investment grade (BB to CCC). These companies often possess weaker financial profiles and are more susceptible to economic downturns compared to larger, more diversified corporations. While PFLT emphasizes senior secured debt to enhance recovery prospects, the inherent higher credit risk in its target market means there is a significant potential for loan defaults and subsequent losses. Recent concerns about "deteriorating credit quality, with increased non-accruals driven by portfolio company challenges," further highlight this risk. Although a large portion of PFLT's portfolio consists of floating-rate loans, which protect PFLT from direct interest rate sensitivity on asset value, rapidly rising interest rates can increase the debt service burden on borrowers, potentially exacerbating default risk for these middle-market companies.3. Net Asset Value (NAV) Decline and Valuation Challenges of Illiquid Investments
A substantial part of PFLT's portfolio comprises investments in private and thinly traded public companies, which are inherently illiquid. This illiquidity makes these assets challenging to sell quickly or at optimal prices, particularly during periods of market stress. Moreover, the valuation of such illiquid investments can be subjective and difficult to determine accurately. This can lead to volatility in PFLT's Net Asset Value (NAV) per share, as demonstrated by recent declines attributed to "net realized and unrealized losses" and "unrealized depreciation across its floating-rate loan portfolio". Inaccurate or optimistic valuations could result in significant write-downs if market conditions deteriorate or if the fair value of portfolio companies declines.AI Analysis | Feedback
null
AI Analysis | Feedback
PennantPark Floating Rate Capital (PFLT) primarily operates within the U.S. middle market, focusing on floating rate loans, senior secured loans, and mezzanine debt. These financial products are integral components of the broader direct lending and private credit markets.
The addressable market for PennantPark Floating Rate Capital's main products and services is as follows:
- U.S. Middle Market Direct Lending/Private Credit Market: The private credit market, often synonymous with direct lending to middle-market businesses, was estimated to be approximately $1.0 trillion as of March 31, 2022, in the U.S.. This market has experienced significant growth, reaching over $1.6 trillion by 2024, and totaled $1.34 trillion in the U.S. by the second quarter of 2024. Projections indicate the U.S. segment was expected to be US$1.34 trillion in 2025. Direct lending is the largest strategy within private credit, constituting 52% of total assets under management over the last 15 years. This market primarily serves U.S. middle-market companies, which are generally defined as businesses with annual revenues between $10 million and $1 billion, or EBITDA ranging from $10 million to $100 million. Floating rate loans and senior secured loans are predominant structures within this market.
- Global Mezzanine Finance Market: For mezzanine debt, the global mezzanine finance market was valued at approximately USD 197.52 billion in 2024 and is projected to grow to USD 212.58 billion in 2025. North America is the largest market for mezzanine finance, accounting for approximately 60% of the global share. This indicates a substantial addressable market for mezzanine debt within the U.S. region.
AI Analysis | Feedback
For PennantPark Floating Rate Capital (PFLT), several key drivers are expected to fuel future revenue growth over the next 2-3 years:
- Scaling of the PSSL II Joint Venture: A primary driver of future revenue growth is the continued expansion of PFLT's new joint venture, PSSL II. Management has positioned the rapid scaling of this venture, which has already grown to approximately $325 million, as a key lever for increasing net investment income and restoring dividend coverage. The objective is to scale PSSL II to over $1 billion in assets.
- Increased M&A Transaction Activity in the Private Middle Market: An anticipated increase in merger and acquisition (M&A) transaction activity within the private middle market is expected to expand PFLT's pipeline of new investment opportunities. This trend will also drive repayments of existing portfolio investments, allowing for the rotation of capital into new, current income-producing assets.
- Continued Origination of Attractive Senior Secured Loans: PFLT's disciplined investment strategy focuses on originating attractive first-lien senior secured loans to core middle-market companies. The company consistently seeks to generate current income and long-term capital appreciation through these directly originated and highly negotiated debt investments. This consistent origination activity is fundamental to portfolio growth and sustained revenue.
- Capital Rotation from Equity Co-investments: As M&A activity improves, PFLT expects opportunities to exit some of its equity co-investments. The capital realized from these exits will be rotated into new, current income-producing debt investments, thereby contributing to an increase in overall revenue-generating assets.
AI Analysis | Feedback
Share Repurchases
- While the Board of Directors consistently evaluates various capital allocation strategies, including share repurchases, no specific dollar amounts of share repurchases made or authorized to be made in the future were prominently disclosed in the available information for the last 3-5 years.
Share Issuance
- PennantPark Floating Rate Capital issued 2.8 million shares through its at-the-market (ATM) equity program, raising $32 million at an average price of $11.31 per share, as of August 2025.
- The company's shares outstanding significantly increased from 38.9 million in 2021 to 99.2 million in 2025, indicating substantial share issuance to raise capital.
Inbound Investments
- In March 2026, PennantPark Floating Rate Capital issued $200 million in 6.75% unsecured notes due 2029, with proceeds intended to repay existing indebtedness, invest in new or existing portfolio companies, and for general corporate purposes.
- The company refinanced a $356.5 million debt securitization, which effectively reduced its weighted average cost of capital by 114 basis points to SOFR+1.65% and extended its debt maturity to April 2038.
- As of March 2025, PFLT expanded its Truist revolving credit facility by $100 million, increasing it to $736 million, and also priced a $361 million securitization at a 1.59% spread.
Outbound Investments
- For the three months ended December 31, 2025, PFLT invested $301.0 million across 4 new and 51 existing portfolio companies, while sales and repayments of investments totaled $441.4 million, including sales to its joint ventures PSSL and PSSL II.
- The company's portfolio of investments totaled $2.61 billion as of December 31, 2025, with 89% in first lien secured debt and 11% in preferred/common equity, including investments in PSSL and PSSL II.
- PFLT continues to focus on growing its joint ventures; PSSL I's portfolio reached $1,084.6 million as of September 30, 2025, and PSSL II was launched during the first fiscal quarter of 2026, growing its portfolio to approximately $193.2 million - $326 million with a $250 million credit facility expandable to $350 million.
Capital Expenditures
- No significant information regarding traditional capital expenditures was found, which is consistent with the nature of PennantPark Floating Rate Capital as a business development company primarily investing in debt and equity securities rather than physical assets.
Peer Outperformance in Asset Management & Custody Banks
PFLT has trailed 66% of its 82 Asset Management & Custody Banks peers over 5Y. Asset Management & Custody Banks ranks 11th of 18 industries in Financials by median 5Y return. The sector’s gains have largely come from elsewhere.
Share of Asset Management & Custody Banks constituents that PFLT has outperformed, by holding period. Peers without a full price history over a given window are excluded from that window.
1Y
32%
of 101 industry peers · -17.1% return
3Y
36%
of 94 industry peers · 1.1% return
5Y
34%
of 82 industry peers · 0.5% return
No Asset Management & Custody Banks peer with a comparable growth profile has beaten PFLT by more than 20pp over 5Y.
Median price return by industry across the Financials sector, ranked by 5Y. Asset Management & Custody Banks is PFLT's own industry. Use this to see which corners of the sector have carried the returns.
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Investment Banking & Brokerage | 13 | 5.7% | 134.1% | 133.9% | IBKR 512% · SNEX 252% · GS 187% |
| Reinsurance | 6 | 19.3% | 80.7% | 117.8% | SPNT 140% · MTG 130% · RGA 128% |
| Diversified Banks | 12 | 37.4% | 131.6% | 101.7% | JPM 153% · CM 148% · RY 135% |
| Life & Health Insurance | 19 | 11.2% | 56.2% | 84.8% | UNM 285% · FG 197% · MFC 172% |
| Regional Banks | 263 | 25.9% | 86.0% | 64.5% | GCBC 395% · ESQ 364% · NBN 297% |
| Property & Casualty Insurance | 42 | 11.1% | 74.2% | 63.8% | ASIC 2583900% · HRTG 433% · UVE 278% |
| Multi-line Insurance | 9 | 13.5% | 78.4% | 57.8% | GNW 176% · L 101% · SLF 86% |
| Consumer Finance | 30 | 10.1% | 87.8% | 34.4% | ENVA 660% · EZPW 391% · FCFS 185% |
| Multi-Sector Holdings | 6 | 1.4% | 16.7% | 33.9% | JEF 78% · BRK-B 73% · VOYA 66% |
| Insurance Brokers | 15 | -9.5% | 11.4% | 33.7% | LIFE 571% · AJG 94% · ARX 87% |
| Asset Management & Custody Banks ← | 83 | -8.7% | 23.5% | 25.5% | SII 341% · WT 303% · VCTR 289% |
| Financial Exchanges & Data | 15 | -1.6% | 14.2% | 13.9% | VIRT 216% · CBOE 156% · CME 69% |
| Commercial & Residential Mortgage Finance | 12 | -31.1% | 19.6% | 4.5% | FNMA 474% · FMCC 460% · ESNT 60% |
| Specialized Finance | 3 | 18.7% | 53.6% | 3.7% | EFC 36% · CACC 4% · HASI -14% |
| Mortgage REITs | 34 | -7.2% | 13.6% | -11.5% | RITM 61% · NREF 53% · DX 41% |
| Transaction & Payment Processing Services | 15 | 1.4% | 8.4% | -41.3% | MA 65% · V 65% · CPAY 58% |
| Diversified Capital Markets | 21 | -29.3% | -4.7% | -45.9% | BTCS 584% · OPY 176% · LPLA 153% |
| Diversified Financial Services | 5 | -6.3% | 63.2% | -58.0% | FRHC 166% · EQH 80% · TMS -58% |
Median of constituents with a full price history over each window. Top names are unfiltered by size in this render.
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 15.35 |
| Mkt Cap | 4.5 |
| Rev LTM | 237 |
| Op Inc LTM | - |
| FCF LTM | 126 |
| FCF 3Y Avg | -136 |
| CFO LTM | 126 |
| CFO 3Y Avg | -136 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | -47.0% |
| Rev Chg 3Y Avg | -7.9% |
| Rev Chg Q | -45.1% |
| QoQ Delta Rev Chg LTM | -14.7% |
| Op Inc Chg LTM | - |
| Op Inc Chg 3Y Avg | - |
| Op Mgn LTM | - |
| Op Mgn 3Y Avg | - |
| QoQ Delta Op Mgn LTM | - |
| CFO/Rev LTM | 43.3% |
| CFO/Rev 3Y Avg | -77.1% |
| FCF/Rev LTM | 43.3% |
| FCF/Rev 3Y Avg | -77.1% |
Price Behavior
Price Behavior
| Market Price | $7.37 | |
| Market Cap ($ Bil) | 0.7 | |
| First Trading Date | 04/08/2011 | |
| Distance from 52W High | -17.9% | |
| 50 Days | 200 Days | |
| DMA Price | $7.19 | $7.94 |
| DMA Trend | down | down |
| Distance from DMA | 2.5% | -7.2% |
| 3M | 1YR | |
| Volatility | 27.2% | 22.9% |
| Downside Capture | 112.53 | 104.43 |
| Upside Capture | 69.75 | 60.68 |
| Correlation (SPY) | 22.5% | 41.6% |
PFLT Betas & Captures as of 7/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.43 | 0.29 | 0.34 | 0.76 | 0.71 | 0.63 |
| Up Beta | -1.50 | -1.33 | -0.81 | 0.33 | 0.45 | 0.56 |
| Down Beta | 0.11 | 0.08 | 0.20 | 0.69 | 0.72 | 0.67 |
| Up Capture | 60% | 38% | 11% | 54% | 42% | 25% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 8 | 19 | 28 | 61 | 123 | 391 |
| Down Capture | 157% | 125% | 129% | 124% | 104% | 91% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 14 | 23 | 34 | 64 | 125 | 332 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PFLT | |
|---|---|---|---|---|
| PFLT | -17.0% | 22.8% | -0.89 | - |
| Sector ETF (XLF) | 10.1% | 14.6% | 0.44 | 47.6% |
| Equity (SPY) | 21.1% | 12.9% | 1.22 | 41.8% |
| Gold (GLD) | 37.5% | 28.8% | 1.10 | 4.5% |
| Commodities (DBC) | 43.2% | 20.2% | 1.66 | -12.5% |
| Real Estate (VNQ) | 12.9% | 13.8% | 0.64 | 33.7% |
| Bitcoin (BTCUSD) | -31.6% | 44.1% | -0.73 | 26.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PFLT | |
|---|---|---|---|---|
| PFLT | -0.5% | 21.6% | -0.09 | - |
| Sector ETF (XLF) | 10.1% | 18.4% | 0.41 | 51.5% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 49.4% |
| Gold (GLD) | 20.6% | 18.6% | 0.90 | 6.6% |
| Commodities (DBC) | 10.4% | 19.6% | 0.41 | 12.4% |
| Real Estate (VNQ) | 2.3% | 18.9% | 0.02 | 46.1% |
| Bitcoin (BTCUSD) | 10.4% | 52.8% | 0.38 | 22.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PFLT | |
|---|---|---|---|---|
| PFLT | 4.9% | 29.1% | 0.22 | - |
| Sector ETF (XLF) | 13.5% | 22.0% | 0.56 | 51.6% |
| Equity (SPY) | 15.2% | 17.9% | 0.72 | 47.3% |
| Gold (GLD) | 12.7% | 16.2% | 0.64 | 6.1% |
| Commodities (DBC) | 8.0% | 18.0% | 0.36 | 20.8% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 49.9% |
| Bitcoin (BTCUSD) | 63.1% | 66.1% | 1.03 | 15.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/19/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/10/2026 | 1.2% | -0.8% | |
| 5/7/2026 | -0.6% | -3.3% | -9.9% |
| 2/9/2026 | -3.5% | -8.7% | -12.6% |
| 11/24/2025 | -1.0% | 2.4% | 0.2% |
| 8/11/2025 | -1.1% | -1.6% | -2.1% |
| 5/12/2025 | -0.8% | 2.2% | 3.9% |
| 2/10/2025 | 3.1% | 1.7% | 0.9% |
| 11/25/2024 | 0.4% | 0.4% | -1.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 12 | 15 | 12 |
| # Negative | 13 | 10 | 12 |
| Median Positive | 1.4% | 1.7% | 2.9% |
| Median Negative | -1.1% | -4.5% | -4.6% |
| Max Positive | 8.4% | 13.2% | 11.8% |
| Max Negative | -5.1% | -9.9% | -12.6% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/10/2026 | 1.2% | -0.8% | |
| 5/7/2026 | -0.6% | -3.3% | -9.9% |
| 2/9/2026 | -3.5% | -8.7% | -12.6% |
| 11/24/2025 | -1.0% | 2.4% | 0.2% |
| 8/11/2025 | -1.1% | -1.6% | -2.1% |
| 5/12/2025 | -0.8% | 2.2% | 3.9% |
| 2/10/2025 | 3.1% | 1.7% | 0.9% |
| 11/25/2024 | 0.4% | 0.4% | -1.1% |
| 8/7/2024 | 0.4% | 3.9% | 7.6% |
| 5/8/2024 | -1.0% | -1.2% | -0.8% |
| 2/7/2024 | 1.3% | 1.1% | 3.1% |
| 11/15/2023 | 1.4% | 1.3% | 8.6% |
| 8/9/2023 | -4.0% | -5.2% | -4.1% |
| 5/10/2023 | 2.6% | 2.3% | 2.6% |
| 2/8/2023 | 0.7% | 2.7% | -5.2% |
| 11/16/2022 | -0.6% | 1.3% | -0.7% |
| 8/3/2022 | -2.9% | -6.4% | -8.1% |
| 5/4/2022 | -2.2% | -9.9% | -10.7% |
| 2/9/2022 | 2.0% | 1.2% | -1.2% |
| 11/17/2021 | -3.3% | -3.7% | -7.4% |
| 8/4/2021 | 2.3% | 2.7% | 0.7% |
| 5/5/2021 | -0.2% | -6.4% | 0.9% |
| 2/9/2021 | 1.4% | 0.9% | 4.5% |
| 11/18/2020 | 8.4% | 13.2% | 11.8% |
| 8/5/2020 | -5.1% | 0.3% | 0.0% |
| SUMMARY STATS | |||
| # Positive | 12 | 15 | 12 |
| # Negative | 13 | 10 | 12 |
| Median Positive | 1.4% | 1.7% | 2.9% |
| Median Negative | -1.1% | -4.5% | -4.6% |
| Max Positive | 8.4% | 13.2% | 11.8% |
| Max Negative | -5.1% | -9.9% | -12.6% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/10/2026 | 10-Q |
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/09/2026 | 10-Q |
| 09/30/2025 | 11/24/2025 | 10-K |
| 06/30/2025 | 08/11/2025 | 10-Q |
| 03/31/2025 | 05/12/2025 | 10-Q |
| 12/31/2024 | 02/10/2025 | 10-Q |
| 09/30/2024 | 11/26/2024 | 10-K |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/07/2024 | 10-Q |
| 09/30/2023 | 12/08/2023 | 10-K |
| 06/30/2023 | 08/09/2023 | 10-Q |
| 03/31/2023 | 05/11/2023 | 10-Q |
| 12/31/2022 | 02/08/2023 | 10-Q |
| 09/30/2022 | 11/17/2022 | 10-K |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/10/2026 | 10-Q |
| 03/31/2026 | 05/07/2026 | 10-Q |
| 12/31/2025 | 02/09/2026 | 10-Q |
| 09/30/2025 | 11/24/2025 | 10-K |
| 06/30/2025 | 08/11/2025 | 10-Q |
| 03/31/2025 | 05/12/2025 | 10-Q |
| 12/31/2024 | 02/10/2025 | 10-Q |
| 09/30/2024 | 11/26/2024 | 10-K |
| 06/30/2024 | 08/07/2024 | 10-Q |
| 03/31/2024 | 05/08/2024 | 10-Q |
| 12/31/2023 | 02/07/2024 | 10-Q |
| 09/30/2023 | 12/08/2023 | 10-K |
| 06/30/2023 | 08/09/2023 | 10-Q |
| 03/31/2023 | 05/11/2023 | 10-Q |
| 12/31/2022 | 02/08/2023 | 10-Q |
| 09/30/2022 | 11/17/2022 | 10-K |
| 06/30/2022 | 08/03/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
| 12/31/2021 | 02/09/2022 | 10-Q |
| 09/30/2021 | 11/17/2021 | 10-K |
| 06/30/2021 | 08/04/2021 | 10-Q |
| 03/31/2021 | 05/05/2021 | 10-Q |
| 12/31/2020 | 02/09/2021 | 10-Q |
| 09/30/2020 | 11/18/2020 | 10-K |
| 06/30/2020 | 08/05/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/05/2020 | 10-Q |
| 09/30/2019 | 11/20/2019 | 10-K |
Recent Forward Guidance
Updated 8/11/2026Latest: Q3 2026 Earnings Reported 8/10/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Dividends | 0.08 | 0.0% | Affirmed | Guidance: 0.08 for Q3 2026 | |||
Prior: Q2 2026 Earnings Reported 5/7/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Monthly Base Dividend | 0.08 | ||||||
| Q3 2026 Monthly Supplemental Dividend | 0 | ||||||
Q1 2026 Earnings Reported 2/9/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Total Investment Portfolio | 2.54 Bil | ||||||
| 2026 Debt to Equity Ratio | 1.5 | ||||||
Q4 2025 Earnings Reported 11/24/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Core NII Accretion | 0.01 | 0.01 | 0.02 | ||||
| 2026 Spillover Income | 0.25 | ||||||
Insider Activity
Updated 5/12/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Briones, Jose A | Direct | Buy | 5122026 | 8.67 | 5,770 | 50,020 | 3,017,532 | Form | |
| 2 | Allorto, Richard T JR | CFO and Treasurer | Direct | Buy | 3122026 | 8.15 | 15,000 | 122,250 | 203,750 | Form |
| 3 | Briones, Jose A | Direct | Buy | 2232026 | 8.48 | 5,895 | 49,990 | 2,902,814 | Form | |
| 4 | Briones, Jose A | Direct | Buy | 12032025 | 9.10 | 5,500 | 50,044 | 3,061,067 | Form | |
| 5 | Briones, Jose A | Direct | Buy | 5232025 | 10.13 | 1,480 | 14,995 | 3,352,795 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Briones, Jose A | Direct | Buy | 5122026 | 8.67 | 5,770 | 50,020 | 3,017,532 | Form | |
| 2 | Allorto, Richard T JR | CFO and Treasurer | Direct | Buy | 3122026 | 8.15 | 15,000 | 122,250 | 203,750 | Form |
| 3 | Briones, Jose A | Direct | Buy | 2232026 | 8.48 | 5,895 | 49,990 | 2,902,814 | Form | |
| 4 | Briones, Jose A | Direct | Buy | 12032025 | 9.10 | 5,500 | 50,044 | 3,061,067 | Form | |
| 5 | Briones, Jose A | Direct | Buy | 5232025 | 10.13 | 1,480 | 14,995 | 3,352,795 | Form | |
| 6 | Briones, Jose A | Direct | Buy | 5152025 | 10.15 | 9,840 | 99,925 | 3,345,443 | Form |
Investor Activity (13F)
Updated Aug 24, 202613F holdings as of Mar 31, 2026 (Q1 2026)
Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
Industry Resources
| Financials Resources |
| Federal Reserve Economic Data |
| Federal Reserve |
| FDIC Data |
| American Banker |
| The Banker |
| Banking Technology |
| Asset Management & Custody Banks Resources |
| Pensions & Investments |
| Institutional Investor |
| Ignites |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.
Core Cache Last Updated: 8/23/2026