Saratoga Investment Corp 8.00% Q1 FY2026 earnings call

• Highlights include 17.9% increase in adjusted NII per share, continued NAV growth, strong ROE, 2 new portfolio company investments, solid core BDC portfolio performance. • Announced base dividend of $0.25 per share per month or $0.75 per share for Q2 2026. • Slower deal volume and M&A activity in lower middle market due to tariff developments and slowdown in new debt issuances. • Portfolio had multiple debt repayments, equity realization, healthy new originations generating realized gains and investing in new portfolio companies. • Strong reputation and sponsor relationships create attractive investment opportunities. • $968.3 million portfolio is high-quality and resilient. • Net interest margin expanded meaningfully. • Credit quality remained steady with 99.7% of credits in highest category. • Assets under management have steadily risen despite recent repayments. • Quality of credits remains strong with only 2 recently restructured credits on nonaccrual.

Adjusted NII per share increased 17.9% from previous quarter. NAV continued to grow. Return on equity beat industry average. Core BDC portfolio had solid performance. Q1 adjusted NII was $0.66 per share. Portfolio fair value increased by $3.8 million. Core non-CLO portfolio was 1.7% above cost. Assets under management were $968.3 million. Adjusted NII was $10.1 million this quarter, down 29.3% from last year but up 26.2% from last quarter. Weighted average interest rate on core BDC portfolio was 11.5% this quarter. Total expenses excluding certain items decreased $0.1 million to $2.8 million compared to last year and increased $1.4 million from last quarter.

• Announced base dividend of $0.25 per share per month or $0.75 per share for Q2 2026. • Management believes Saratoga is favorably situated for future economic opportunities and challenges. • Pipeline of deals is growing with new hires and expanded business development efforts. • Confident in ability to achieve healthy portfolio growth in an accretive manner to shareholders.

• Volatile macro environment poses challenges. • Slower deal volume and M&A activity in lower middle market. • Uncertainty regarding prepayments and maturities. • Potential market dislocations in CLO BB investments.

Q: Erik Zwick asked about commitment to AUM expansion, prepayments, spillover level, liability and funding side, and CLO BB investments.

A: Christian Oberbeck and Michael Grisius responded discussing AUM expansion efforts, unpredictability of prepayments, spillover levels, flexibility in funding, and CLO BB investments being in familiar marketplace with potential for growth.

Q: Robert Dodd asked about balance sheet liquidity, bias in using cash for deployments or paying down debt.

A: Christian Oberbeck and Henri Steenkamp responded discussing neutral approach to optimize balance sheet, upsize of credit facility, and focus on flexibility and growth opportunities.