psec-20260930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2026
OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00659

PROSPECT CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)


Maryland			43-2048643
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
10 East 40th Street
New York, New York			10016
(Address of principal executive offices)			(Zip Code)
Registrant’s telephone number, including area code: (212) 448-0702

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbols	Name of each exchange on which registered
Common Stock, $0.001 par value	PSEC	NASDAQ Global Select Market
5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock, par value $0.001	PSEC PRA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No ý

As of November 3, 2026, there were 556,989,222 shares of the registrant’s common stock, $0.001 par value per share, outstanding.

Table of Contents


		Page
	Forward-Looking Statements	3
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of September 30, 2026 (unaudited) and June 30, 2026	5
	Consolidated Statements of Operations for the three months ended September 30, 2026 and September 30, 2025 (unaudited)	6
	Consolidated Statements of Other Comprehensive Income for the three months ended September 30, 2026 and September 30, 2025 (unaudited)	8
	Consolidated Statements of Changes in Net Assets and Temporary Equity for the three months ended September 30, 2026 and September 30, 2025 (unaudited)	9
	Consolidated Statements of Cash Flows for the three months ended September 30, 2026 and September 30, 2025 (unaudited)	10
	Consolidated Schedules of Investments as of September 30, 2026 (unaudited) and June 30, 2026	12
	Notes to Consolidated Financial Statements (unaudited)	65
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	136
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	170
Item 4.	Controls and Procedures	172
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	173
Item 1A.	Risk Factors	173
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	176
Item 3.	Defaults Upon Senior Securities	176
Item 4.	Mine Safety Disclosures	176
Item 5.	Other Information	177
Item 6.	Exhibits	181
	Signatures

FORWARD-LOOKING STATEMENTS

This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “could,” “may,” “plan” and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A. Risk Factors” and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2026, and those described from time to time in reports that we have filed or in the future may file with the Securities and Exchange Commission.

The forward-looking statements contained in this report involve a number of risks and uncertainties, including statements concerning:

•our, or our portfolio companies’, future operating results;

•our business prospects and the prospects of our portfolio companies;

•the return or impact of current or future investments that we expect to make;

•our contractual arrangements and relationships with third parties;

•the dependence of our future success on the general economy and its impact on the industries in which we invest;

•the impact of global events outside of our control, including the consequences of the ongoing conflicts between Russia and Ukraine and in the Middle East and Southwest Asia, United States and Israel’s war with Iran, and continued social and political unrest in various countries, such as Venezuela and Mexico, on our and our portfolio companies’ businesses and the global economy;

•uncertainty surrounding inflation and the financial stability of the United States, Europe, and China;

•potential trade war between the U.S. and China in connection with each country’s recent or proposed tariffs on the other country’s products;

•the financial condition of, and ability of our current and prospective portfolio companies to, achieve their objectives;

•difficulty in obtaining financing or raising capital, especially in the current credit and equity environment, and the impact of a protracted decline in the liquidity of credit markets on our and our portfolio companies’ businesses;

•the level, duration, and volatility of prevailing interest rates and credit spreads, magnified by the current turmoil in the credit markets;

•the impact of alternative reference rates on our business and certain of our investments;

•adverse developments in the availability of desirable loan and investment opportunities whether they are due to competition, regulation or otherwise;

•a compression of the yield on our investments and the cost of our liabilities, as well as the level of leverage available to us;

•the impact of changes in laws or regulations governing our operations or the operations of our portfolio companies;

•our regulatory structure and tax treatment, including our ability to operate as a business development company and a regulated investment company;

•trade negotiations and related government actions may create regulatory uncertainty for the portfolio companies and our investment strategy and adversely affect the profitability of the portfolio companies;

•the adequacy of our cash resources and working capital;

•the timing of cash flows, if any, from the operations of our portfolio companies;

•the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments;

•the timing, form and amount of any dividend distributions;

•authoritative generally accepted accounting principles or policy changes from such standard-setting bodies as the Financial Accounting Standards Board, the Securities and Exchange Commission, Internal Revenue Service, the NASDAQ Global Select Market, the New York Stock Exchange LLC, and other authorities that we are subject to, as well as their counterparts in any foreign jurisdictions where we might do business; and

•any of the other risks, uncertainties and other factors we identify herein or in our Annual Report on Form 10-K for the year ended June 30, 2026.

PART I

See notes to consolidated financial statements.

Item 1. Financial Statements

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share and per share data)


	September 30, 2026		June 30, 2026

	(Unaudited)
Assets
Investments at fair value:
Control investments (amortized cost of $3,323,679 and $3,367,618, respectively)(Note 14)	$	3,360,718	$	3,644,274
Affiliate investments (amortized cost of $12,835 and $12,835, respectively)	22,028		30,447
Non-control/non-affiliate investments (amortized cost of $2,607,805 and $2,934,916, respectively)	2,561,732		2,667,837
Total investments at fair value (amortized cost of $5,944,319 and $6,315,369, respectively)(Note 3)	5,944,478		6,342,558
Cash and cash equivalents (restricted cash of $1,986 and $2,812, respectively)	38,016		43,572
Receivables for:
Interest, net	23,039		17,350
Other	4,694		9,228
Derivative Assets, at fair value (Note 6)	14,373		18,900
Deferred financing costs on Revolving Credit Facility (Note 4)	12,940		14,128
Prepaid expenses	1,103		1,419
Due from Prospect Administration, net (Note 13)	—		1,351
Due from Affiliate (Note 13)	115		61
Due from broker	—		60
Total Assets	6,038,758		6,448,627
Liabilities
Public Notes (less unamortized discount and debt issuance costs of $8,668 and $10,547, respectively) (Notes 5 and 8)	643,110		690,841
Prospect Capital InterNotes® (less unamortized debt issuance costs of $6,965 and $7,399, respectively) (Notes 7 and 8)	591,263		607,480

Revolving Credit Facility (Notes 4 and 8)	287,152		562,328
Due to Prospect Capital Management (Note 13)	38,885		38,946
Dividends payable	26,742		18,252
Interest payable	17,005		13,968
Due to broker	4,509		9,156
Accrued expenses	2,093		3,675
Due to Prospect Administration (Note 13)	1,325		—


Other liabilities	490		685
Total Liabilities	1,612,574		1,945,331
Commitments and Contingencies (Notes 3 and 15)
Preferred Stock, par value $0.001 per share (764,723,593 and 766,678,529 shares of preferred stock authorized; 67,450,547 and 68,468,200 issued and outstanding, respectively) (Note 9)	1,551,095		1,574,450

Net Assets Applicable to Common Shares	$	2,875,089	$	2,928,846
Components of Net Assets Applicable to Common Stock and Net Assets, respectively
Common stock, par value $0.001 per share (3,235,276,407 and 1,233,321,471 common shares authorized; 536,295,785 and 512,746,556 issued and outstanding, respectively) (Note 9)	536		513
Paid-in capital in excess of par (Notes 9 and 12)	4,363,871		4,310,026
Accumulated other comprehensive income (loss)	6,880		5,801
Distributions in excess of earnings (Note 12)	(1,496,198)		(1,387,494)
Net Assets Applicable to Common Shares	$	2,875,089	$	2,928,846
Net Asset Value Per Common Share (Note 16)	$	5.36	$	5.71

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(in thousands, except share and per share data)

(Unaudited)


	Three Months Ended September 30,
		2026		2025
Investment Income
Interest income (excluding payment-in-kind (“PIK”) interest income):
Control investments		$	52,227	$	59,216

Non-control/non-affiliate investments		63,927		77,762

Total interest income (excluding PIK interest income)		116,154		136,978
PIK interest income:
Control investments		13,338		11,794

Non-control/non-affiliate investments		3,116		3,622
Total PIK Interest Income		16,454		15,416
Total interest income (Note 2)		132,608		152,394
Dividend income:
Control investments		2,416		877

Non-control/non-affiliate investments		3,059		2,696
Total dividend income		5,475		3,573
Other income:
Control investments		12,988		354

Non-control/non-affiliate investments		670		1,303
Total other income (Note 10)		13,658		1,657
Total Investment Income		151,741		157,624
Operating Expenses
Base management fee (Note 13)		31,218		33,617
Income incentive fee (Note 13)		7,743		1,234
Interest and credit facility expenses		30,636		33,687
Allocation of overhead from Prospect Administration (Note 13)		5,524		5,524
Audit, compliance and tax related fees		656		899
Directors’ fees		150		150

Other general and administrative expenses		2,705		3,163
Total Operating Expenses		78,632		78,274
Reimbursement of Administration Expenses (Note 13)		(3,250)		—
Total Net Operating Expenses		75,382		78,274
Net Investment Income		76,359		79,350
Net Realized and Net Change in Unrealized Gains (Losses) from Investments
Net realized gains (losses)
Control investments		131,559		847

Non-control/non-affiliate investments		(203,166)		(2,738)
Net realized gains (losses)		(71,607)		(1,891)
Net change in unrealized gains (losses)
Control investments		(239,617)		14,181
Affiliate investments		(8,419)		3,764
Non-control/non-affiliate investments		221,006		(17,346)
Net change in unrealized gains (losses)		(27,030)		599
Net Realized and Net Change in Unrealized Gains (Losses) from Investments		(98,637)		(1,292)
Net realized gains (losses) on extinguishment of debt		1,483		(77)
Net realized gains (losses) from derivative instruments and foreign currency transactions		(572)		—
Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions		(188)		—
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(21,555)	$	77,981

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (Continued)

(in thousands, except share and per share data)

(Unaudited)


	Three Months Ended September 30,
		2026		2025
Preferred Stock dividends		$	(26,120)	$	(26,767)
Net gain (loss) on redemptions of Preferred Stock		(3,730)		(1,362)
Gain (loss) on Accretion to Redemption Value of Preferred Stock		(2,043)		(1,765)
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders		$	(53,448)	$	48,087
Basic and diluted earnings (loss) per common share (Note 11)
Basic		$	(0.10)	$	0.10
Diluted		$	(0.10)	$	0.08
Weighted-average shares of common stock outstanding (Note 11)
Basic		524,466,279		461,356,032
Diluted		524,466,279		876,657,018

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME

(in thousands, except share and per share data)

(Unaudited)



	Three Months Ended September 30,
		2026		2025
Net Increase (Decrease) in Net Assets Resulting from Operations		$	(21,555)	$	77,981

Other comprehensive income (loss):
Gains (losses) on derivative instruments designated as cash flow hedges		(799)		—
Gains (losses) on excluded components relating to forward points		2,226		—
Reclassification adjustments included in interest expense		(189)		—
Gain reclassified from AOCI into income as a result of forecasted transactions no longer probable of occurring		(159)
Total other comprehensive income (loss)		1,079		—

Total comprehensive income (loss)		$	(20,476)	$	77,981

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS AND TEMPORARY EQUITY

(in thousands, except share and per share data)

(Unaudited)


	Preferred Stock Classified as Temporary Equity			Common Stock
Three Months Ended September 30, 2026	Shares	Carrying Value		Shares	Par		Paid-in capital in excess of par(1)		Accumulated Other Comprehensive Income		Distributions in excess of earnings (1)		Total Net Assets
Balance as of June 30, 2026	68,468,200	$	1,574,450	512,746,556	$513		$	4,310,026	$	5,801	$	(1,387,494)	$	2,928,846
Net Increase (Decrease) in Net Assets and Temporary Equity Resulting from Operations:
Net investment income											76,359		76,359
Net realized losses											(76,469)		(76,469)
Net change in unrealized losses											(27,218)		(27,218)
Other Comprehensive Income (Loss):
Gain (loss) on derivatives designated as cash flow hedges									(1,147)				(1,147)
Gains (losses) on excluded components relating to forward points									2,226				2,226
Distributions to Shareholders (Note 12)
Distributions from earnings											(81,376)		(81,376)

Capital Transactions
Issuance of preferred stock	859,689	18,307


Accretion of preferred stock to redemption value		2,043
Repurchase of Preferred Stock
Shares issued through reinvestment of dividends	38,051	912		3,083,229	3		6,438						6,441
Redemption of Preferred Stock	(237,309)	(5,932)
Conversion of preferred stock to common stock	(1,678,084)	(38,695)		20,466,000	20		47,407						47,427
Net increase (decrease) in preferred dividend accrual		10
Tax reclassification of net assets (Note 12)		—

Total increase (decrease) for the three months ended September 30, 2026	(1,017,653)	(23,355)		23,549,229	23		53,845		1,079		(108,704)		(53,757)
Balance as of September 30, 2026	67,450,547	$	1,551,095	536,295,785	$	536	$	4,363,871	$	6,880	$	(1,496,198)	$	2,875,089


	Preferred Stock Classified as Temporary Equity			Common Stock
Three Months Ended September 30, 2025	Shares	Carrying Value		Shares	Par		Paid-in capital in excess of par(1)		Distributions in excess of earnings (1)		Total Net Assets
Balance as of June 30, 2025	70,915,937	$	1,629,900	455,902,826	$	456	$	4,182,453	$	(1,194,137)	$	2,988,772
Net Increase (Decrease) in Net Assets and Temporary Equity Resulting from Operations:
Net investment income									79,350		79,350
Net realized losses									(5,095)		(5,095)
Net change in unrealized gains									599		599
Distributions to Shareholders(Note 12)(1)
Distributions from earnings									(78,990)		(78,990)
Return of capital to common stockholders							(10,170)				(10,170)
Capital Transactions
Issuance of Preferred Stock	710,969	15,342
Accretion of preferred stock to redemption value



Shares issued through reinvestment of dividends	41,656	997		2,362,606	2		6,709				6,711
Redemption of Preferred Stock	(52,082)	(1,302)
Conversion of preferred stock to common stock	(966,718)	(22,183)		7,650,920	8		23,605				23,613

Net increase (decrease) in preferred dividend accrual

Total increase (decrease) for the three months ended September 30, 2025	(266,175)	(5,381)		10,013,526	10		20,144		(4,136)		16,018
Balance as of September 30, 2025	70,649,762	$	1,624,519	465,916,352	$	466	$	4,202,597	$	(1,198,273)	$	3,004,790

(1) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2026. See Note 2 and Note 12 within the accompanying notes to consolidated financial statements for further discussion on tax reclassification of net assets and tax basis components of dividends.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, except share data)

(Unaudited)


	Three Months Ended September 30,
	2026		2025
Operating Activities
Net increase (decrease) in net assets resulting from operations	$	(21,555)	$	77,981
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Net realized (gains) losses on extinguishment of debt	(1,483)		77
Net realized losses on investments	71,607		1,891
Net realized (gains) losses from derivative instruments and foreign currency transactions	246		—
Net change in unrealized losses (gains) on investments	27,030		(599)
Net change in unrealized (gains) losses from derivative instruments and foreign currency transactions	188		—
Accretion of premiums, net	(1,280)		(544)
Amortization of deferred financing costs	1,828		1,977
Accretion of original issue discount	359		361
Payment-In-Kind interest and dividend income	(19,032)		(15,416)
Structuring fees	(298)		(478)
Proceeds from settlement of forward contract	970		—
Change in operating assets and liabilities:
Payments for purchases of investments	(71,147)		(75,673)
Proceeds from sale of investments and collection of investment principal	389,363		236,960
Net Reductions to Subordinated Structured Notes and related investment cost	1,837		13,919
(Increase) decrease in interest receivable, net	(5,689)		6,085
(Increase) decrease in due from broker	60		32,801
(Increase) decrease in other receivables	4,534		(1,425)
(Increase) decrease in due from Affiliate	(54)		96
(Increase) decrease in due from Prospect Administration	1,351		—
(Increase) decrease in prepaid expenses	316		16
Increase (decrease) in due to broker	2		3,532
Increase (decrease) in due to Prospect Administration	1,325		(10)
Increase (decrease) in due to Prospect Capital Management	(61)		(6,906)

Increase (decrease) in accrued expenses	(1,582)		(986)
Increase (decrease) in interest payable	3,037		5,013

Increase (decrease) in other liabilities	(195)		320
Net Cash Provided by (Used in) Operating Activities	381,677		278,992
Financing Activities
Borrowings under Revolving Credit Facility (Note 4)	412,951		215,000
Principal payments under Revolving Credit Facility (Note 4)	(688,127)		(387,743)




Repurchase of Public Notes (Note 5)	(42,507)		—
Issuances of Prospect Capital InterNotes® (Note 7)	805		7,868
Redemptions of Prospect Capital InterNotes®, net (Note 7)	(17,456)		(3,264)
Financing costs paid and deferred	(69)		(207)



Proceeds from issuance of preferred stock, net of underwriting costs	19,391		16,237
Offering costs from issuance of preferred stock	(1,084)		(895)

Redemptions of Preferred Stock	(5,597)		(1,247)
Dividends paid and distributions to common and preferred stockholders	(65,496)		(88,988)
Net Cash Provided by (Used in) Financing Activities	(387,189)		(243,239)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(5,512)		35,753
Effect of foreign currency exchange rates	(44)		—
Cash, Cash Equivalents and Restricted Cash at beginning of period	43,572		50,788
Cash, Cash Equivalents and Restricted Cash at End of Period	$	38,016	$	86,541
Supplemental Disclosures
Cash paid for interest	$	25,412	$	26,336

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(in thousands, except share data)

(Unaudited)


	Three Months Ended September 30,
	2026		2025
Non-Cash Financing Activities
Value of shares issued through reinvestment of dividends	$	7,353	$	7,708
Conversion of preferred stock to common stock	$	38,695	$	22,183

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Belnick, LLC (d/b/a The Ubique Group) (41)	Household Durables	First Lien Term Loan	1/20/2022	12.57%	3M SOFR	8.50%		4.00	5/14/2029			$	98,564	$	98,564	$	98,564	3.4	%	(8)(36)
		Class P Units	5/23/2025						N/A	5,603				3,400		5,651		0.2	%	(14)
		Class A Units	12/31/2025						N/A	50				—		16		—	%	(14)
														101,964		104,231		3.6%
CP Energy Services Inc. (18)	Energy Equipment & Services	First Lien Term Loan	12/24/2024	13.33%	3M SOFR	9.00%		1.00	4/4/2030			16,741		16,741		12,826		0.6%		(8)(36)
		First Lien Term Loan	10/1/2017	13.33%	3M SOFR	9.00%		1.00	4/4/2030			68,361		68,361		52,371		1.8%		(8)(36)
		First Lien Term Loan	4/5/2022	13.33%	3M SOFR	9.00%		1.00	4/4/2030			9,158		9,158		7,016		0.2%		(8)(36)
		First Lien Term Loan	1/6/2023	13.33%	3M SOFR	9.00%		1.00	4/4/2030		16,700	18,472		18,472		14,151		0.5%		(8)(36)
		First Lien Term Loan A to Spartan Energy Services, LLC	10/20/2014	12.34%	3M SOFR	8.00%		1.00	1/26/2030			46,600		46,600		46,470		1.6%		(8)(36)
		First Lien Term Loan A to Spartan Energy Services, LLC	10/20/2014	12.34%	3M SOFR	8.00%		1.00	1/26/2030			15,312		15,312		15,271		0.5%		(8)
		Incremental First Lien Term Loan A to Spartan Energy Services, LLC	3/25/2025	12.34%	3M SOFR	8.00%		1.00	1/26/2030		1,200	—		—		—		—%		(8)(13)(36)
		Series A Preferred Units to Spartan Energy Holdings, Inc.	9/25/2020						N/A	10,000				26,193		—		—%		(14)
		Series B Redeemable Preferred Stock	10/30/2015						N/A	790				63,225		—		—%		(14)
		Common Stock	8/2/2013						N/A	102,924				86,240		—		—%		(14)
														350,302		148,105		5.2%
Credit Central Loan Company, LLC (19)	Consumer Finance	First Lien Term Loan	12/28/2012	5.75%				—	11/30/2029			92,893		92,893		53,086		1.9%		(12)
		First Lien Delayed Draw Term Loan	6/18/2026	5.75%				—	11/30/2029		9,983	1,797		1,797		1,027		—%		(12)(13)
		Class A Units	12/28/2012						N/A	14,867,312				19,331		—		—%		(12)(14)
		Preferred Class P Shares	7/1/2022						N/A	16,369,256				11,520		—		—%		(12)(14)
		Net Revenues Interest ( of Net Revenues)	1/28/2015						N/A					—		—		—%		(12)(14)
														125,541		54,113		1.9%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value	Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Echelon Transportation, LLC	Trading Companies & Distributors	Membership Interest (100%)	3/31/2014						N/A				$	—	$	—	—%		(14)
		Preferred Units	1/31/2022						N/A	53,076,654			—		—		—%		(14)
													—		—		—%
First Tower Finance Company LLC (21)	Consumer Finance	First Lien Term Loan to First Tower, LLC	6/24/2014	16.00%			5.00%	—	11/30/2028			449,336	449,336		449,336		15.6%		(12)(36)
		First Lien Delayed Draw Term Loan to First Tower, LLC	6/30/2026	16.00%			5.00%	—	11/30/2028		42,930	20,294	20,294		20,294		0.7%		(12)(13)
		Excess Distributions Interest	9/23/2026						N/A				—		—		—	%	(12)
		Class A Units	6/14/2012						N/A	95,709,910			31,146		514,270		17.9%		(12)(14)
													500,776		983,900		34.2%
Freedom Marine Solutions, LLC	Marine Transport	Membership Interest (100%)	11/9/2006						N/A				47,967		12,008		0.4%		(14)(22)
													47,967		12,008		0.4%
InterDent, Inc.	Health Care Providers & Services	First Lien Delayed Draw Term Loan B	9/30/2024	12.00%			7.00%	—	9/5/2027		42,000	41,292	41,292		32,327		1.1%		(13)(36)
		First Lien Term Loan A/B	8/1/2018	18.67%	1M SOFR	14.65%		2.00	9/5/2027			14,249	14,249		14,249		0.5%		(3)(8)
		First Lien Term Loan A	8/3/2012	9.52%	1M SOFR	5.50%		1.00	9/5/2027			95,823	95,823		95,823		3.3%		(3)(8)
		First Lien Term Loan B	8/3/2012	12.00%			7.00%	—	9/5/2027			241,873	241,873		189,363		6.6%		(36)
		Common Stock	5/3/2019						N/A	99,900			45,118		—		—%		(14)
													438,355		331,762		11.5%
Kickapoo Ranch Pet Resort	Diversified Consumer Services	First Lien Term Loan	1/11/2024	11.57%	3M SOFR	7.50%		3.00	1/10/2029			700	700		700		0.1%		(8)
		Membership Interest (100%)	8/26/2019						N/A				2,378		3,700		0.1%		(14)
													3,078		4,400		0.2%
MITY, Inc. (23)	Commercial Services & Supplies	First Lien Term Loan A	9/19/2013	12.36%	3M SOFR	8.02%		3.00	11/30/2027			57,188	57,188		57,188		1.9%		(3)(8)
		First Lien Term Loan B	6/23/2014	17.22%	3M SOFR	7.00%	5.89%	3.00	11/30/2027			8,274	8,274		8,274		0.3%		(8)(36)
		Unsecured Note to Broda Enterprises ULC	9/19/2013	10.00%				—	1/1/2028			5,193	7,200		5,213		0.2%		(12)
		Common Stock	9/19/2013						N/A	42,053			27,349		4,590		0.2%		(14)
		Series A Redeemable Preferred Stock	10/29/2025						N/A	3,439			3,439		3,439		0.1%		(14)
													103,450		78,704		2.7%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

National Property REIT Corp. (24)	Residential Real Estate Investment Trusts (REITs) / Consumer Finance / Structured Finance	First Lien Term Loan A	12/31/2018	4.00%	3M SOFR	0.25%		3.50	3/31/2030			$	891,876	$	891,876	$	891,876	31.1%	(8)
		Residual Profit Interest	12/31/2018						N/A					—		—		—%	(14)
		Common Stock	12/31/2013						N/A	3,374,914				20,030		179,231		6.2%	(14)(40)
														911,906		1,071,107		37.3%
Nationwide Loan Company LLC (25)	Consumer Finance	First Lien Delayed Draw Term Loan A	5/15/2024	10.00%			10.00%	—	5/15/2029		7,350	6,645		6,645		6,645		0.1%	(12)(13)(36)
		First Lien Delayed Draw Term Loan B	12/23/2024	10.00%			10.00%	—	5/15/2029		8,000	4,649		4,649		4,649		0.2%	(12)(13)(36)
		Class A Units	1/31/2013						N/A	925,796,475				49,936		18,724		0.7%	(12)(14)
														61,230		30,018		1.0%
NMMB, Inc. (26)	Media	First Lien Term Loan	12/30/2019	12.83%	3M SOFR	8.50%		2.00	3/31/2027			29,723		29,723		29,723		1.0%	(3)(8)
		Common Stock	12/30/2019						N/A	21,418				—		54,484		1.9%
														29,723		84,207		2.9%
Pacific World Corporation (34)	Personal Care Products	First Lien Term Loan A	12/31/2014	8.15%	1M SOFR	4.25%	8.15%	1.00	3/26/2029			124,539		124,539		113,002		3.9%	(8)(36)
		Convertible Preferred Equity	6/15/2018						N/A	909,804				238,494		—		—%	(14)
		Common Units of PWC Investment Group, LLC	9/29/2017						N/A	6,778,414				—		—		—%	(14)
														363,033		113,002		3.9%
QC Holdings TopCo, LLC (17)	Consumer Finance	Second Lien Term Loan	6/30/2025	22.00%	3M SOFR	17.00%		5.00	7/1/2030			59,948		59,948		59,948		2.1%	(3)(8)(12)(36)
		Second Lien Delayed Draw Term Loan	9/30/2025	22.00%	3M SOFR	17.00%		5.00	7/1/2030		11,125	5,284		5,284		5,284		0.2%	(8)(12)(13)(36)
		Class A Units	6/30/2025						N/A	222,886				22,289		31,247		1.1%	(12)(14)
														87,521		96,479		3.4%
R-V Industries, Inc. (50)	Machinery	First Lien Term Loan	12/15/2020	13.33%	3M SOFR	9.00%		1.00	12/15/2028			46,322		46,322		46,322		1.7%	(3)(8)
		First Lien Term Loan	12/20/2024	7.57%	3M SOFR	3.50%		4.00	12/15/2028			10,000		10,000		10,000		0.3%	(3)(8)
		First Lien Term Loan	6/30/2026	10.57%	3M SOFR	6.50%		4.00	12/15/2028			5,000		5,000		5,000		0.2%	(3)(8)
		Common Stock	6/26/2007						N/A	745,107				6,866		38,755		1.3%
														68,188		100,077		3.5%
Strategic Chemical Solutions Corp. (f/k/a USES Corp.) (28)	Commercial Services & Supplies	First Lien Term Loan	12/30/2020	13.16%	1M SOFR	9.00%		1.00	8/15/2030			$	2,000	$	2,000	$	761	—%	(8)
		First Lien Equipment Term Loan	8/3/2022	13.16%	1M SOFR	9.00%		1.00	8/15/2030			20,526		20,526		7,814		0.3%	(8)(36)
		First Lien Term Loan A	3/31/2014	9.00%			9.00%	—	8/15/2030			83,024		—		—		—%	(7)
		First Lien Term Loan B	3/31/2014	15.50%			15.50%	—	8/15/2030			156,602		—		—		—%	(7)
		Common Stock	6/15/2016						N/A	268,962				—		—		—%	(14)
														22,526		8,575		0.3%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment		Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Universal Turbine Parts, LLC (32)	Aerospace & Defense	First Lien Delayed Draw Term Loan	2/28/2019	12.08%	3M SOFR	7.75%		2.50	2/29/2028		$	6,965	$	6,419	$	6,419	$	6,419	0.3%	(8)(13)
		First Lien Term Loan A	7/22/2016	10.08%	3M SOFR	5.75%		1.00	2/29/2028				29,575		29,575		29,575		1.0%	(3)(8)
		First Lien Term Loan A	1/21/2025	12.08%	3M SOFR	7.75%		2.50	2/29/2028				3,960		3,960		3,960		0.1%	(3)(8)
		First Lien Term Loan A	2/28/2025	12.08%	3M SOFR	7.75%		2.50	2/29/2028				14,763		14,763		14,763		0.5%	(3)(8)
		Preferred A Units	3/31/2021	12.75%			12.75%		10/31/2030	47,110,164					36,031		48,629		1.7%	(36)
		Preferred B Units	10/1/2025						N/A	49,553,167					4,796		24,358		0.8%	(14)
		Common Stock	12/10/2018						N/A	10,000					—		—		—%	(14)
															95,544		127,704		4.4%
Victor Technology, LLC (48)	Distributors	First Lien Term Loan	12/3/2021	11.83%	3M SOFR	7.50%		1.00	12/3/2028				10,575		10,575		10,575		0.4%	(8)
		Class P Units	2/10/2026						N/A	1,000					2,000		1,751		0.1%	(14)
		Class A Units	4/20/2026						N/A	1					—		—		—%	(14)
															12,575		12,326		0.5%
										Total Control Investments					$	3,323,679	$	3,360,718	116.9%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value	Amortized Cost		Fair Value(2)		% of Net Assets

Affiliate Investments (5.00% to 25.00% voting control)(38)

Nixon, Inc. (30)	Textiles, Apparel & Luxury Goods	Common Stock	5/12/2017						N/A	857			$	—	$	—	—	%	(14)
													—		—		—	%
RGIS Services, LLC	Commercial Services & Supplies	Membership Interest	6/25/2020						N/A	505,308			12,835		22,028		0.8	%
													12,835		22,028		0.8	%
Total Affiliate Investments													$	12,835	$	22,028	0.8	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment		Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Abacus Dermatology Management, LLC	Professional Services	First Lien Revolving Line of Credit	6/30/2026	12.07%	3M SOFR	8.00%		3.50	6/30/2031		$	500	$	—	$	—	$	—	—	%	(8)(13)
		First Lien Term Loan	6/30/2026	12.07%	3M SOFR	8.00%		3.50	6/30/2031				13,496		13,496		13,496		0.5	%	(8)
															13,496		13,496		0.5	%
Apidos CLO XV	Structured Finance	Subordinated Structured Note	9/13/2013	0.00%	Residual Interest/Current Yield			—	4/21/2031				48,515		—		—		—	%	(5)(12)(15)
															—		—		—	%
Apidos CLO XXII	Structured Finance	Subordinated Structured Note	9/16/2015	0.00%	Residual Interest/Current Yield			—	4/21/2031				35,855		—		—		—	%	(5)(12)(15)
															—		—		—	%
Aventiv Technologies, LLC	Diversified Telecommunication Services	First Lien Term Loan	7/2/2026	10.82%	1M SOFR	7.00%		2.00	7/2/2031				61,785		61,512		61,785		2.1	%	(8)
		Common Stock of SCRS Intermediate Holding Corporation	7/2/2026					—	N/A	2,786			—		29,853		26,010		0.9	%	(14)(43)
		Warrants of SCRS Intermediate Holding Corporation	7/2/2026					—	7/2/2031	2,431			—		—		5,030		0.2	%	(14)(43)
															91,365		92,825		3.2	%
Barings CLO 2018-III	Structured Finance	Subordinated Structured Note	10/9/2014	0.00%	Residual Interest/Current Yield			—	7/20/2029				82,809		—		—		—	%	(5)(12)(15)
															—		—		—	%
Barracuda Parent, LLC	IT Services	Second Lien Term Loan	8/15/2022	10.82%	3M SOFR	7.00%		0.50	8/15/2030				20,000		19,705		7,571		0.3	%	(8)
															19,705		7,571		0.3	%
BCPE North Star US Holdco 2, Inc.	Food Products	Second Lien Term Loan	6/7/2021	11.27%	1M SOFR	7.25%		0.75	6/8/2029				69,388		69,087		69,388		2.4	%	(3)(8)
															69,087		69,388		2.4	%
BCPE Osprey Buyer, Inc.	Health Care Technology	First Lien Term Loan	10/18/2021	9.77%	1M SOFR	5.75%		0.75	8/23/2028				4,562		4,541		4,562		0.2	%	(3)(8)
		First Lien Term Loan	10/18/2021	9.78%	3M SOFR	5.75%		0.75	8/23/2028				61,912		61,912		61,912		2.1	%	(3)(8)
															66,453		66,474		2.3	%
Burgess Point Purchaser Corporation	Automobile Components	Second Lien Term Loan	7/25/2022	12.92%	3M SOFR	9.00%		0.75	7/25/2030				30,000		30,000		27,760		1.0	%	(3)(8)
															30,000		27,760		1.0	%
Capstone Logistics Acquisition, Inc.	Commercial Services & Supplies	Second Lien Term Loan	11/12/2020	12.50%	1M SOFR	8.50%		1.00	11/12/2030				8,500		8,404		8,500		0.3	%	(3)(8)
															8,404		8,500		0.3	%
Collections Acquisition Company, Inc.	Financial Services	First Lien Term Loan	12/3/2019	10.57%	3M SOFR	6.50%		2.50	6/3/2028				53,908		53,908		53,908		1.9	%	(3)(8)
															53,908		53,908		1.9	%
Credit.com Holdings, LLC	Diversified Consumer Services	First Lien Term Loan A	9/28/2023	15.34%	3M SOFR	11.00%		1.50	9/28/2028				47,053		40,513		7,560		0.3	%	(7)(8)
		First Lien Term Loan B	9/28/2023	16.34%	3M SOFR	12.00%		1.50	9/28/2028				82,389		62,114		—		—	%	(7)(8)
		First Lien Term Loan C	6/3/2026	16.10%	3M SOFR	12.00%		1.50	8/27/2028				611		611		1,222		—	%	(8)(36)
		Class B of PGX TopCo II LLC	9/28/2023						N/A	999					—		—		—	%	(14)(43)
															103,238		8,782		0.3	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Discovery Point Retreat, LLC (6)	Health Care Providers & Services	First Lien Term Loan	6/14/2024	12.09%	3M SOFR	7.75%		3.25	6/14/2029			$	20,057	$	20,057	$	20,057	0.8	%	(3)(8)
		First Lien Delayed Draw Term Loan	5/27/2026	12.00%			5.00%	—	6/14/2031		975	987		987		987		—	%	(13)(36)(43)
		Series A Preferred Stock of Discovery MSO HoldCo LLC	6/14/2024						N/A	9,860				8,700		12,383		0.4	%	(14)(43)(22)
														29,744		33,427		1.2	%
DRI Holding Inc.	Commercial Services & Supplies	First Lien Term Loan	12/21/2021	9.22%	3M SOFR	5.25%		0.50	12/21/2028			32,788		32,323		32,788		1.1	%	(3)(8)
		Second Lien Term Loan	12/21/2021	11.97%	3M SOFR	8.00%		0.50	12/21/2029			145,000		145,000		145,000		5.1	%	(3)(8)
														177,323		177,788		6.2	%
Druid City Infusion, LLC	Pharmaceuticals	First Lien Term Loan	9/30/2024	11.57%	3M SOFR	7.50%		3.00	10/4/2029			39,049		39,049		39,049		1.4	%	(3)(8)
		First Lien Convertible Note to Druid City Intermediate, Inc.	9/30/2024	8.00%			2.00%	—	10/4/2033			19,728		19,729		45,824		1.6	%	(3)(36)(43)
														58,778		84,873		3.0	%
Emerge Intermediate, Inc. (45)	Pharmaceuticals	First Lien Term Loan	2/26/2024	10.01%	3M SOFR	6.25%		1.00	8/31/2027			57,482		57,482		56,893		2.0	%	(3)(8)
														57,482		56,893		2.0	%
Enseo Acquisition, Inc.	Media	First Lien Term Loan	6/2/2021	12.83%	3M SOFR	8.50%		2.00	12/31/2027			48,666		48,666		48,666		1.7	%	(3)(8)
														48,666		48,666		1.7	%
Eyefive, LLC (d/b/a Shipoffers)	Distributors	First Lien Term Loan	6/26/2026	11.57%	3M SOFR	7.50%		2.50	6/26/2031			51,870		45,173		45,595		1.6	%	(3)(8)
		Warrants of EF Holdco, LLC	6/26/2026						6/26/2036	113				6,946		6,946		0.2	%	(14)
														52,119		52,541		1.8	%
First Brands Group (33)	Automobile Components	First Lien DIP Term Loan A	10/2/2025	17.75%	PRIME	11.00%	17.75%	1.00	6/29/2026			6,812		1,124		1,124		—	%	(7)(42)
		First Lien DIP Term Loan B	10/2/2025	14.75%	PRIME	8.00%	14.75%	1.00	6/29/2026			19,450		—		—		—	%	(7)
		First Lien Term Loan	9/19/2025	10.80%	1M SOFR	7.00%	10.80%	1.00	3/30/2027			5,622		—		—		—	%	(7)(8)
		First Lien Term Loan	3/24/2021	10.80%	1M SOFR	7.00%	10.80%	1.00	3/30/2027			10,437		2,924		—		—	%	(7)(8)
		Second Lien Term Loan	3/24/2021	14.30%	1M SOFR	10.50%	14.30%	1.00	3/30/2028			43,219		—		—		—	%	(7)(8)
														4,048		1,124		—	%
Global Tel*Link Corporation (d./b/a ViaPath Technologies)	Diversified Telecommunication Services	First Lien Term Loan	8/6/2024	11.40%	1M SOFR	7.50%		3.00	8/6/2029			108,261		105,655		108,261		3.8	%	(3)(8)
														105,655		108,261		3.8	%
Halcyon Loan Advisors Funding 2014-2 Ltd.	Structured Finance	Subordinated Structured Note	4/14/2014	0.00%	Residual Interest/Current Yield			—	4/28/2030			—		—		—		—	%	(5)(12)(15)
														—		—		—	%
Halcyon Loan Advisors Funding 2015-3 Ltd.	Structured Finance	Subordinated Structured Note	7/23/2015	0.00%	Residual Interest/Current Yield			—	10/18/2027			39,598		—		—		—	%	(5)(12)(15)
														—		—		—	%
HarbourView CLO VII-R, Ltd.	Structured Finance	Subordinated Structured Note	6/5/2015	0.00%	Residual Interest/Current Yield			—	7/18/2031			19,025		—		—		—	%	(5)(12)(15)
														—		—		—	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Healthcare Venture Partners, LLC	Health Care Providers & Services	First Lien Term Loan	8/29/2025	12.07%	3M SOFR	8.00%		3.50	8/29/2030			$	11,165	$	11,165	$	11,165	0.4	%	(3)(8)
		First Lien Revolving Line of Credit	8/29/2025	12.07%	3M SOFR	8.00%		3.50	8/29/2030		1,000	—		—		—		—	%	(8)(13)
		Series A Preferred Units of TCSPV Holdings IV, LLC	8/29/2025						N/A	2,150,000				2,150		1,634		—	%	(14)(43)(22)
														13,315		12,799		0.4	%
Help/Systems Holdings, Inc. (d/b/a Forta, LLC)	Software	Second Lien Term Loan	11/14/2019	12.86%	3M SOFR		9.00%	2.00	5/19/2029			57,640		57,630		47,447		1.7	%	(8)(36)
														57,630		47,447		1.7	%
Imperative Worldwide, LLC	Air Freight & Logistics	First Lien Term Loan	3/11/2022	9.72%	3M SOFR	5.50%		0.75	12/30/2028			31,394		31,389		31,394		1.1	%	(3)(8)
		First Lien Term Loan	9/30/2024	9.57%	3M SOFR	5.50%		0.75	12/30/2028			5,880		5,810		5,880		0.2	%	(3)(8)
		Second Lien Term Loan	12/30/2021	12.72%	3M SOFR	8.50%		0.75	12/30/2029			95,000		95,000		95,000		3.3	%	(3)(8)
														132,199		132,274		4.6	%
iQor Holdings, Inc.	Professional Services	First Lien Term Loan	6/11/2024	11.84%	3M SOFR	7.50%		2.50	6/11/2029			43,829		43,829		43,829		1.5	%	(3)(8)
		Common Stock of Bloom Parent, Inc.	6/11/2024						N/A	10,450				10,450		13,977		0.5	%	(14)
														54,279		57,806		2.0	%
Japs-Olson Company, LLC (31)	Commercial Services & Supplies	First Lien Term Loan	5/25/2023	10.82%	3M SOFR	6.75%		2.00	5/25/2028			51,385		51,385		49,641		1.7	%	(3)(8)
														51,385		49,641		1.7	%
Julie Lindsey, Inc.	Textiles, Apparel & Luxury Goods	First Lien Revolving Line of Credit	7/27/2023	10.07%	3M SOFR	6.00%		4.00	7/27/2027		2,000	—		—		—		—	%	(8)(13)
		First Lien Term Loan	7/27/2023	10.07%	3M SOFR	6.00%		4.00	7/27/2028			18,448		18,448		18,448		0.6	%	(3)(8)
														18,448		18,448		0.6	%
K&N HoldCo, LLC	Automobile Components	Class A Common Units	2/14/2023						N/A	137,215				25,802		495		—	%	(14)
														25,802		495		—	%
KM2 Solutions LLC	Professional Services	First Lien Term Loan	12/17/2020	13.82%	3M SOFR	9.60%		3.00	7/16/2027			$	14,434	$	14,434	$	14,434	0.5	%	(3)(8)
														14,434		14,434		0.5	%
LCM XIV Ltd.	Structured Finance	Subordinated Structured Note	6/25/2013	0.00%	Residual Interest/Current Yield			—	7/21/2031			49,934		—		—		—	%	(5)(12)(15)
														—		—		—	%
Lucky US BuyerCo LLC	Financial Services	First Lien Revolving Line of Credit	4/3/2023	11.46%	3M SOFR	7.50%		1.00	4/1/2029		2,775	2,664		2,664		2,664		0.1	%	(8)(13)(36)
		First Lien Revolving Line of Credit Exit Fee	4/3/2023	11.45%	3M SOFR	7.50%		1.00	4/1/2029			—		—		—		—	%	(8)(13)(51)
		First Lien Term Loan	4/3/2023	11.45%	3M SOFR	7.50%		1.00	4/1/2029			21,183		21,183		21,183		0.7	%	(3)(8)(36)
														23,873		23,873		0.8	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value	Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

MAC Discount, LLC	Distributors	Class A Senior Preferred Stock of MAC Discount Investments, LLC	5/11/2023						N/A	1,500,000			$	1,500	$	2,202	0.1	%	(14)
													1,500		2,202		0.1	%
Medical Solutions Holdings, Inc. (4)	Health Care Providers & Services	Second Lien Term Loan	11/1/2021	10.92%	3M SOFR	7.00%		0.50	11/1/2029			54,463	54,445		21,404		0.7	%	(8)
													54,445		21,404		0.7	%
New WPCC Parent, LLC (47)	Health Care Providers & Services	First Lien Term Loan	5/9/2025	13.40%	1M SOFR	9.50%		2.00	5/9/2030			23,204	20,385		23,204		0.8	%	(3)(8)(36)
		Series A Preferred Interests	5/9/2025	13.00%			13.00%		N/A	993,485			11,165		15,438		0.5	%	(36)(43)
		Class A Common Interests	5/9/2025						N/A	1,084,072			91		26,559		0.9	%	(14)(43)
		Liquidating Trust of Wellpath Holdings, Inc.	5/9/2025						N/A				2,011		7,586		0.3	%	(14)
													33,652		72,787		2.5	%
Octagon Investment Partners XV, Ltd.	Structured Finance	Subordinated Structured Note	1/24/2013	0.00%	Residual Interest/Current Yield			—	7/19/2030			42,064	—		—		—	%	(5)(12)(15)
													—		—		—	%
OneTouchPoint Corp	Commercial Services & Supplies	First Lien Term Loan	2/19/2021	12.32%	3M SOFR	8.00%		1.00	6/30/2027			22,044	22,044		22,044		0.8	%	(3)(8)
													22,044		22,044		0.8	%
PeopleConnect Holdings, Inc (9)	Interactive Media & Services	First Lien Term Loan	1/22/2020	12.47%	3M SOFR	8.25%		2.75	1/22/2028			80,700	80,700		80,700		2.8	%	(3)(8)
													80,700		80,700		2.8	%
Precisely Software Incorporated	Software	Second Lien Term Loan	4/23/2021	11.33%	3M SOFR	7.25%		0.75	4/23/2029			80,000	79,698		58,359		2.0	%	(3)(8)
													79,698		58,359		2.0	%
Preventics, Inc. (d/b/a Legere Pharmaceuticals)	Personal Care Products	First Lien Term Loan	11/12/2021	14.84%	3M SOFR	10.50%		1.00	11/12/2026			8,673	8,673		8,673		0.3	%	(3)(8)
		First Lien Term Loan	4/30/2025	11.84%	3M SOFR	7.50%		3.00	11/12/2026			1,876	1,876		1,876		0.1	%	(3)(8)
		Series A Convertible Preferred Stock of Legere Pharmaceutical Holdings, Inc.	11/12/2021						N/A	472			165		37		—	%	(14)(43)
		Series C Convertible Preferred Stock of Legere Pharmaceutical Holdings, Inc.	11/12/2021						N/A	5,677			1,946		443		—	%	(14)(43)
													12,660		11,029		0.4	%
Recovery Solutions Parent, LLC	Health Care Providers & Services	First Lien Term Loan	1/27/2025	11.57%	3M SOFR	7.50%		2.00	1/27/2030			43,154	33,895		43,154		1.5	%	(3)(8)(36)
		Membership Interest	1/27/2025						N/A	1,609,466			21,255		63,452		2.2	%	(14)(43)
													55,150		106,606		3.7	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Redstone Holdco 2 LP (20)	IT Services	First Lien Second Out Term Loan	1/21/2026	9.32%	3M SOFR	5.50%		—	12/31/2030			$	6,000	$	6,000	$	5,854	0.2	%	(8)
		First Lien Third Out Term Loan	1/21/2026	12.00%			4.00%	—	12/31/2030			12,252		12,252		10,397		0.4	%	(36)
		Class A Preferred Units of Redstone Holdco 1 LP	1/21/2026						N/A	624,063				624		448		—	%	(14)
		Class B Preferred Units of Redstone Holdco 1 LP	1/21/2026						N/A	1,872,188				1,872		867		—	%	(14)
		Class B Common Units of Redstone Holdco 1 LP	1/21/2026						N/A	90,837				4		—		—	%	(14)
														20,752		17,566		0.6	%
Research Now Group, LLC and Dynata, LLC	IT Services	First Lien Junior First Out Term Loan	8/24/2026	9.50%	3M SOFR	5.50%		1.00	10/15/2031			6,316		6,316		5,100		0.2	%	(8)(44)
		Common Stock of New Insight Holdings, Inc.	7/15/2024						N/A	210,781				3,329		795		—	%	(14)
		Warrants (to purchase shares of Common Stock of New Insight Holdings, Inc.)	7/15/2024						7/15/2029	285,714				—		—		—	%	(14)
														9,645		5,895		0.2	%
Rising Tide Holdings, Inc.	Specialty Retail	First Lien Term Loan A	8/21/2026	30.00%			30.00%	—	8/21/2031			364		364		364		—	%	(36)
		First Lien Term Loan B	8/21/2026	30.00%			30.00%	—	8/21/2031			1,744		1,744		1,744		0.1	%	(36)(44)
		Class A Common units of West Marine TopCo, LLC	8/21/2026					—	N/A			—		6,141		6,313		0.2	%	(14)
														8,249		8,421		0.3	%
The RK Logistics Group, Inc.	Commercial Services & Supplies	First Lien Term Loan	3/24/2022	14.84%	3M SOFR	10.50%		1.00	12/18/2028			5,556		5,556		5,556		0.2	%	(3)(8)
		First Lien Term Loan	12/19/2023	11.57%	3M SOFR	7.50%		4.00	12/18/2028			32,835		32,835		32,835		1.1	%	(3)(8)
		Class A Common Units of RK Logistics Holdings Inc.	3/24/2022						N/A	263,000				263		2,656		0.1	%	(14)
		Class B Common Units of RK Logistics Holdings Inc.	3/24/2022						N/A	1,435,000				2,487		14,491		0.5	%	(14)(43)
		Class C Common Units of RK Logistics Holdings Inc.	6/28/2024						N/A	450,000				2,250		4,544		0.2	%	(14)
														43,391		60,082		2.1	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

RME Group Holding Company	Media	First Lien Term Loan A	5/4/2017	9.82%	3M SOFR	5.50%		1.00	5/6/2027			$	17,232	$	17,232	$	17,218	0.6	%	(8)
		First Lien Term Loan B	5/4/2017	15.32%	3M SOFR	11.00%		1.00	5/6/2027			19,920		19,920		18,936		0.7	%	(8)
														37,152		36,154		1.3	%
Rosa Mexicano	Hotels, Restaurants & Leisure	First Lien Revolving Line of Credit	3/29/2018	16.25%				—	12/31/2027		7,515	7,515		7,515		7,279		0.3	%	(13)
		First Lien Term Loan	3/29/2018	11.83%	3M SOFR	7.50%		1.25	12/31/2027			23,166		23,166		21,463		0.7	%	(8)
														30,681		28,742		1.0	%
Safety Solutions Financing, LLC	Construction & Engineering	First Lien Term Loan	5/1/2026	10.84%	3M SOFR	6.50%		3.00	5/1/2031			19,204		19,204		19,204		0.7	%	(3)(8)
		Series A Preferred Units of BFC-SDR, LLC	5/1/2026	8.00%			8.00%		N/A	1,885,714				3,300		4,713		0.2	%	(14)(22)
		Series B Preferred Units of BFC-SDR, LLC	5/1/2026	8.00%			8.00%		N/A	110				110		110		(0.1)	%	(36)(22)
														22,614		24,027		0.8	%
ShiftKey, LLC	Health Care Technology	First Lien Term Loan	6/21/2022	10.59%	3M SOFR	5.75%	0.50%	1.00	6/21/2027			59,574		59,492		57,271		2.0	%	(3)(8)(36)
														59,492		57,271		2.0	%
Shoes West, LLC (d/b/a Taos Footwear) (27)	Textiles, Apparel & Luxury Goods	First Lien Term Loan A	1/23/2025	11.34%	3M SOFR	7.00%		3.00	1/23/2030			37,773		37,773		37,773		1.3	%	(3)(8)(43)
		First Lien Convertible Term Loan B	1/23/2025	11.00%			2.00%	—	1/23/2030			9,704		9,704		18,104		0.6	%	(3)(36)(43)
		Class A Preferred Units of Taos Footwear Holdings, LLC	1/23/2025	8.00%			8.00%		2/28/2030	16,753				19,472		50,842		1.8	%	(36)
														66,949		106,719		3.7	%
Silver Hill Mineral Lease	Energy Equipment & Services	Revenue Interest	5/13/2025						N/A					—		—		—	%	(11)(14)
														—		—		—	%
Spectrum Vision Holdings, LLC	Health Care Providers & Services	First Lien Term Loan	5/2/2023	10.58%	3M SOFR	6.50%		1.00	11/17/2026			28,952		28,952		28,952		1.0	%	(3)(8)
														28,952		28,952		1.0	%
STG Topco, LLC	Air Freight & Logistics	First Lien Term Loan	7/8/2026	10.97%	3M SOFR	6.75%	0.00%	1.50	7/8/2031			7,531		7,938		7,531		0.2	%	(8)(36)
		Class A Common of STG Parent Topco, LLC	7/8/2026						N/A					29,381		28,406		1.0	%	(14)
														37,319		35,937		1.2	%
Stryker Energy, LLC	Energy Equipment & Services	Overriding Royalty Interest	12/4/2006						N/A					$	—	$	—	—	%	(11)
														—		—		—	%
Town & Country Holdings, Inc.	Distributors	First Lien Term Loan	11/17/2022	8.00%				—	8/29/2028			28,761		28,390		26,558		0.9	%
		First Lien Term Loan	1/26/2018	8.00%			5.00%	—	8/29/2028			42,136		42,136		43,147		1.5	%	(36)
		First Lien Term Loan	1/26/2018	8.00%				—	8/29/2028			164,931		164,931		168,889		5.9	%
		Class B of Town & Country TopCo LLC (Non-voting units)	11/17/2022						N/A	999				72,882		—		—	%	(14)(43)
														308,339		238,594		8.3	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)


										September 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

TPS, LLC	Machinery	First Lien Term Loan	11/30/2020	14.00%	3M SOFR	9.00%		5.00	5/31/2027			$	13,463	$	13,463	$	13,463	0.5	%	(3)(8)
														13,463		13,463		0.5	%
United Sporting Companies, Inc. (16)	Distributors	Second Lien Term Loan	9/28/2012	13.00%	1M LIBOR	11.00%	2.00%	—	11/16/2019			176,284		670		670		—	%	(7)
														670		670		—	%
Upstream Holdco, Inc.	Health Care Providers & Services	Second Lien Term Loan	11/20/2019	13.58%	3M SOFR	9.50%	13.58%	—	5/20/2030			24,300		24,258		20,272		0.7	%	(8)(36)
		Second Lien Term Loan	12/18/2025	12.98%	3M SOFR	9.00%	12.98%	—	5/20/2030			7,460		7,460		7,460		0.3	%	(8)(36)
														31,718		27,732		1.0	%
USG Intermediate, LLC	Leisure Products	First Lien Term Loan B	4/15/2015	15.75%	1M SOFR	11.75%		1.00	2/9/2029			69,938		69,938		69,938		2.4	%	(3)(8)
		Equity	4/15/2015						N/A					1		—		—	%	(14)
														69,939		69,938		2.4	%
Valley Electric Company, Inc. (29)	Construction & Engineering	Escrow Receivable	7/1/2026					—	N/A			—		—		36,056		1.2	%	(14)
		Earn-Out Receivable	7/1/2026					—	N/A			—		—		16,399		0.6	%	(14)
														—		52,455		1.8	%
Verify Diagnostics LLC	Health Care Providers & Services	First Lien Term Loan	5/15/2025	14.30%	3M SOFR	10.23%		3.50	5/15/2030			36,603		36,603		36,603		1.3	%	(3)(8)(44)
		Class A Preferred Units of Verify Diagnostic Holdings LLC	5/15/2025						N/A	9,250,000				9,250		19,154		0.7	%	(14)
														45,853		55,757		2.0	%
Voya CLO 2012-4, Ltd.	Structured Finance	Subordinated Structured Note	11/5/2012	0.00%	Residual Interest/Current Yield			—	10/15/2030			40,613		—		—		—	%	(5)(12)(15)
														—		—		—	%
WatchGuard Technologies, Inc.	IT Services	First Lien Term Loan	8/17/2022	9.15%	1M SOFR	5.25%		0.75	6/30/2029			33,600		33,600		33,600		1.2	%	(3)(8)
														33,600		33,600		1.2	%
Wellful Inc.	Food Products	Second Out First Lien Term Loan	11/27/2024	10.59%	3M SOFR	6.25%		1.00	10/19/2030			18,342		18,342		15,132		0.5	%	(8)(36)(44)
														18,342		15,132		0.5	%
Total Non-Control/Non-Affiliate Investments														$	2,607,805	$	2,561,732	89.1	%

Total Portfolio Investments														$	5,944,319	$	5,944,478	206.8	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited)

(1)The terms “Prospect,” “the Company,” “we,” “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise. The securities in which Prospect has invested were acquired in transactions that were exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These securities may be resold only in transactions that are exempt from registration under the Securities Act.

(2)Fair value is determined by or under the direction of our Board of Directors. Unless otherwise indicated by endnote 42 below, all of our investments are valued using significant unobservable inputs. In accordance with ASC 820, such investments are classified as Level 3 within the fair value hierarchy. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion.

(3)Security, or a portion thereof, is held by Prospect Capital Funding LLC (“PCF”), our wholly owned subsidiary and a bankruptcy remote special purpose entity, and is pledged as collateral for the Revolving Credit Facility and such security is not available as collateral to our general creditors (see Note 4). The fair value of the investments held by PCF as of September 30, 2026 was $1,984,114, representing 33.4% of our total investments.

(4)Medical Solutions Holdings, Inc. and Medical Solutions, LLC are joint borrowers on the Second Lien Term Loan.

(5)This investment is in the equity class of the collateralized loan obligation (“CLO”) security, which is referred to as “Subordinated Structured Note,” or “SSN”. The SSN investments are entitled to recurring distributions which are generally equal to the excess cash flow generated from the underlying investments after payment of the contractual payments to debt holders and fund expenses. The current estimated yield, calculated using amortized cost, is based on the current projections of this excess cash flow taking into account assumptions which have been made regarding expected prepayments, losses and future reinvestment rates. These assumptions are periodically reviewed and adjusted. Ultimately, the actual yield may be higher or lower than the estimated yield if actual results differ from those used for the assumptions.

(6)Discovery Point Retreat, LLC, Discovery MSO LLC, Eating Disorder Solutions of Texas LLC, Discovery Point Retreat Waxahachie, LLC are joint borrowers on the First Lien Term Loan.

(7)Investment on non-accrual status as of the reporting date (see Note 2).

(8)Certain variable rate securities in our portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. The 1-Month Secured Overnight Financing Rate or “1M SOFR”, was 3.91% as of September 30, 2026. The 3-Month Secured Overnight Financing Rate or “3M SOFR”, was 4.08% as of September 30, 2026. The PRIME Rate or “PRIME” was 6.75% as of September 30, 2026. The impact of a Secured Overnight Financing Rate (“SOFR”) credit spread adjustment, if applicable, is included within the stated all-in interest rate.

(9)PeopleConnect Holdings, Inc. and Pubrec Holdings, Inc. are joint borrowers.

(10)The consolidated revenue interest is equal to the lesser of (i) 2.0% of consolidated revenue for the twelve-month period ending on the last day of the prior fiscal quarter (or portion thereof) and (ii) 25% of the amount of interest accrued on the Notes at the cash interest rate for such fiscal quarter (or portion thereof).

(11)Represents overriding royalty interests or revenue interests held which receive payments at the stated rates based upon the underlying operations.

(12)Investment has been designated as an investment not “qualifying” under Section 55(a) of the Investment Company Act of 1940 (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets as calculated in accordance with regulatory requirements. As of September 30, 2026, our qualifying assets, as a percentage of total assets, stood at 80.52%. We monitor the status of these assets on an ongoing basis.

(13)Undrawn committed revolvers and delayed draw term loans to our portfolio companies incur commitment and unused fees ranging from 0.00% to 3.00%. As of September 30, 2026, $57,612 of undrawn revolver and delayed draw term loan commitments to our portfolio companies, of which $51,717 are considered at the Company’s sole discretion.

(14)Represents non-income producing security that has not paid a dividend or other income in the year preceding the reporting date.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(15)The effective yield has been estimated to be 0% as expected future cash flows are anticipated to not be sufficient to repay the investment at cost. If the expected investment proceeds increase, there is a potential for future investment income from the investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

(16)Ellett Brothers, LLC, Evans Sports, Inc., Jerry’s Sports, Inc., Simmons Gun Specialties, Inc., Bonitz Brothers, Inc., and Outdoor Sports Headquarters, Inc. are joint borrowers on the second lien term loan. United Sporting Companies, Inc. (“USC”) is a parent guarantor of this debt investment, and is 100% owned by SportCo Holdings, Inc. (“SportCo”). In June 2019, USC filed for Chapter 11 bankruptcy and began liquidating its remaining assets.

(17)As of September 30, 2026, Prospect owns a 95.4% equity interest in QC Holdings TopCo, LLC (“QC Holdings”), representing a controlling beneficial interest in QC Holdings per the 1940 Act. QC Holdings specializes in consumer-focused alternative financial services and credit solutions.

(18)CP Holdings of Delaware LLC (“CP Holdings”), a consolidated entity in which we own 100% of the membership interests, owns 99.8% of CP Energy Services Inc. (“CP Energy”) as of September 30, 2026. CP Energy owns directly or indirectly 100% of each of CP Well Testing, LLC; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. We report CP Energy as a separate controlled company. In June 2019, CP Energy purchased a controlling interest in the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $61,912 in first lien term loans (the “Spartan Term Loans”) due to us as of September 30, 2026. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, our Spartan Term Loans are presented as control investments under CP Energy. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loans. In September 2020, we made a new $26,193 Series A preferred stock investment in Spartan Energy Holdings, Inc., which equates to 100% of the Series A non-voting redeemable preferred stock outstanding.

(19)Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”), a consolidated entity in which we own 100% of the membership interests, owns 99.8% of Credit Central Loan Company, LLC (f/k/a Credit Central Holdings, LLC (“Credit Central”)) as of September 30, 2026. Credit Central owns 100% of each of Credit Central, LLC; Credit Central South, LLC; Credit Central of Texas, LLC; and Credit Central of Tennessee, LLC, the operating companies. We report Credit Central as a separate controlled company.

(20)Redstone Holdco 2 LP is the parent borrower on the First Lien Term Loans. Redstone Buyer, LLC, Redstone Intermediate (FRI) HoldCo LLC, Redstone Intermediate (NetWitness) HoldCo, LLC, and Redstone Intermediate (SecurID) HoldCo, LLC are joint borrowers on the First Lien Term Loans.

(21)First Tower Holdings of Delaware LLC (“First Tower Delaware”), a consolidated entity in which we own 100% of the membership interests, owns 80.10% of the voting interest and 78.06% of the fully-diluted economic interest of First Tower Finance Company LLC (“First Tower Finance”). First Tower Finance owns 100% of First Tower, LLC, the operating company. We report First Tower Finance as a separate controlled company. Effective March 17, 2021, the First Tower, LLC lenders were granted a first priority security interest in First Tower Finance’s assets and our investment became classified as a First Lien Term Loan.

(22)Equity is held through Energy Solutions Holdings Inc., a consolidated entity in which we own 100% of the equity.

(23)MITY Holdings of Delaware Inc. (“MITY Delaware”), a consolidated entity in which we own 100% of the common stock, owns 100% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“MITY-Lite”); Broda Enterprises USA, Inc.; and Broda Enterprises ULC (“Broda Canada”). We report MITY as a separate controlled company. Our subordinated unsecured note issued and outstanding to Broda Canada is denominated in Canadian Dollars (“CAD”). As of September 30, 2026, the principal balance of this note was CAD 7,371. In accordance with ASC 830, Foreign Currency Matters (“ASC 830”), this note was remeasured into our functional currency, U.S. Dollars (USD), and is presented on our Consolidated Schedule of Investments in USD. We formed a separate legal entity domiciled in the United States, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 100% of the equity. MITY FSC does not have material operations. This entity earns commission payments from MITY-Lite based on its sales to foreign customers, and distributes it to its shareholder.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

REIT which holds investments in several real estate properties. We report NPRC as a separate controlled company. See Note 3 for further discussion of the investments held by NPRC. The investments in the TLA are subject to a maximum SOFR of 3.75%.

(25)Nationwide Acceptance Holdings LLC (“Nationwide Holdings”), a consolidated entity in which we own 100% of the membership interests, owns 94.22% of Nationwide Loan Company LLC, the operating company, as of September 30, 2026. We report Nationwide Loan Company LLC as a separate controlled company. Prospect has a first priority security interest in the assets of Nationwide.

(26)NMMB Holdings, Inc. (“NMMB Holdings”), a consolidated entity in which we own 100% of the equity, owns 92.77% of the fully diluted equity of NMMB, Inc. (“NMMB”) as of September 30, 2026. NMMB owns 100% of Refuel Agency, Inc., which owns 100% of Armed Forces Communications, Inc. We report NMMB as a separate controlled company.

(27)Shoes West, LLC and Shoes West Distribution, LLC are joint borrowers on the First Lien Term Loan A and First Lien Convertible Term Loan B.

(28)Prospect owns 99.96% of the equity of Strategic Chemical Solutions Corp. (effective October 21, 2025 f/k/a USES Corp.) as of September 30, 2026.

(29)On July 1, 2026, we sold our 94.99% equity interest in Valley Electric Company, Inc. In connection with the sale, we received cash proceeds, our pro rata share of the purchase price held in escrow and the right to a contingent earn-out payment. The investments listed reflect the fair value of the escrow receivable and the earn-out as of September 30, 2026.

(30)As of September 30, 2026, Prospect owns 8.57% of the equity in Encinitas Watches Holdco, LLC, the parent company of Nixon, Inc.

(31)Japs-Olson Company, LLC, Alpha Mail Debt Merger Sub, LLC and J-O Building Company LLC are joint borrowers on the First Lien Term Loan.

(32)UTP Holdings Group, Inc. (“UTP Holdings”) owns all of the voting stock of Universal Turbine Parts, LLC (“UTP”) and has appointed a Board of Directors to UTP Holdings, consisting of three employees of the Investment Adviser. UTP Holdings owns UTP. UTP Holdings is a wholly-owned holding company controlled by Prospect and therefore Prospect’s investment in UTP is classified as a control investment.

(33)First Brands is progressing towards an exit from bankruptcy via a Chapter 7 plan. Given case complexities, the lenders have executed a forbearance into a Forbearance Agreement (approved by the Bankruptcy Court via Stipulation and Agreed Order originally entered July 29, 2026 and extended on October 18, 2026) instead of a maturity extension.

(34)Prospect owns 100% of the preferred equity of Pacific World Corporation (“Pacific World”), which represents a 99.99% ownership interest of Pacific World as of September 30, 2026. As a result, Prospect’s investment in Pacific World is classified as a control investment.

(35)The following shows the composition of our investment portfolio at amortized cost by control designation, investment type and by industry as of September 30, 2026:

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)


Industry	1st Lien		2nd Lien		Subordinated Structured Notes		Unsecured Debt		Equity (B)		Cost Total
Control Investments
Aerospace & Defense	$	54,717	$	—	$	—	$	—	$	40,827	$	95,544
Commercial Services & Supplies	87,988		—		—		7,200		30,788		125,976

Consumer Finance	575,614		65,232		—		—		134,222		775,068
Distributors	10,575		—		—		—		2,000		12,575
Diversified Consumer Services	700		—		—		—		2,378		3,078
Energy Equipment & Services	174,644		—		—		—		175,658		350,302
Residential Real Estate Investment Trusts (REITs)	891,876		—		—		—		20,030		911,906
Health Care Providers & Services	393,237		—		—		—		45,118		438,355
Household Durables	98,564		—		—		—		3,400		101,964
Machinery	61,322		—		—		—		6,866		68,188
Marine Transport	—		—		—		—		47,967		47,967
Media	29,723		—		—		—		—		29,723

Personal Care Products	124,539		—		—		—		238,494		363,033
Trading Companies & Distributors	—		—		—		—		—		—
Structured Finance(A)	—		—		—		—		—		—
Total Control Investments	$	2,503,499	$	65,232	$	—	$	7,200	$	747,748	$	3,323,679
Affiliate Investments
Commercial Services & Supplies	$	—	$	—	$	—	$	—	$	12,835	$	12,835

Textiles, Apparel & Luxury Goods	—		—		—		—		—		—
Total Affiliate Investments	$	—	$	—	$	—	$	—	$	12,835	$	12,835
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	45,137	$	95,000	$	—	$	—	$	29,381	$	169,518
Automobile Components	4,048		30,000		—		—		25,802		59,850


Commercial Services & Supplies	144,143		153,404		—		—		5,000		302,547

Construction & Engineering	19,204		—		—		—		3,410		22,614

Distributors	280,630		670		—		—		81,328		362,628
Diversified Consumer Services	103,238		—		—		—		—		103,238

Diversified Telecommunication Services	167,167		—		—		—		29,853		197,020



Financial Services	77,781		—		—		—		—		77,781

Food Products	18,342		69,087		—		—		—		87,429

Health Care Providers & Services	152,044		86,163		—		—		54,622		292,829
Health Care Technology	125,945		—		—		—		—		125,945
Hotels, Restaurants & Leisure	30,681		—		—		—		—		30,681



Interactive Media & Services	80,700		—		—		—		—		80,700

IT Services	51,852		19,705		—		—		2,500		74,057
Leisure Products	69,938		—		—		—		1		69,939
Machinery	13,463		—		—		—		—		13,463
Media	85,818		—		—		—		—		85,818


Personal Care Products	10,549		—		—		—		2,111		12,660
Pharmaceuticals	116,260		—		—		—		—		116,260
Professional Services	78,075		—		—		—		13,779		91,854

Software	—		137,328		—		—		—		137,328
Specialty Retail	2,108		—		—		—		6,141		8,249

Textiles, Apparel & Luxury Goods	65,925		—		—		—		19,472		85,397


Structured Finance(A)	—		—		—		—		—		—
Total Non-Control/Non-Affiliate	$	1,743,048	$	591,357	$	—	$	—	$	273,400	$	2,607,805
Total Portfolio Investment Cost	$	4,246,547	$	656,589	$	—	$	7,200	$	1,033,983	$	5,944,319

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

The following table shows the composition of our investment portfolio at fair value by control designation, investment type and by industry as of September 30, 2026:


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Control Investments
Aerospace & Defense	$	54,717		$	—		$	—		$	—		$	72,987		$	127,704		4.4	%
Commercial Services & Supplies	74,037			—			—			5,213			8,029			87,279			3.0	%
Construction & Engineering	—			—			—			—			—			—			—	%
Consumer Finance	535,037			65,232			—			—			564,241			1,164,510			40.5	%
Distributors	10,575			—			—			—			1,751			12,326			0.5	%
Diversified Consumer Services	700			—			—			—			3,700			4,400			0.2	%
Energy Equipment & Services	148,105			—			—			—			—			148,105			5.2	%
Residential Real Estate Investment Trusts (REITs)	891,876			—			—			—			179,231			1,071,107			37.3	%
Health Care Providers & Services	331,762			—			—			—			—			331,762			11.5	%
Household Durables	98,564			—			—			—			5,667			104,231			3.6	%
Machinery	61,322			—			—			—			38,755			100,077			3.5	%
Marine Transport	—			—			—			—			12,008			12,008			0.4	%
Media	29,723			—			—			—			54,484			84,207			2.9	%

Personal Care Products	113,002			—			—			—			—			113,002			3.9	%
Trading Companies & Distributors	—			—			—			—			—			—			—	%
Structured Finance(A)	—			—			—			—			—			—			—	%
Total Control Investments	$	2,349,420		$	65,232		$	—		$	5,213		$	940,853		$	3,360,718		116.9	%
Fair Value % of Net Assets	81.7		%	2.3		%	—		%	0.2		%	32.7		%	116.9		%
Affiliate Investments
Commercial Services & Supplies	$	—		$	—		$	—		$	—		$	22,028		$	22,028		0.8	%

Textiles, Apparel & Luxury Goods	—			—			—			—			—			—			—	%
Total Affiliate Investments	$	—		$	—		$	—		$	—		$	22,028		$	22,028		0.8	%
Fair Value % of Net Assets	—		%	—		%	—		%	—		%	0.8		%	0.8		%
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	44,805		$	95,000		$	—		$	—		$	28,406		$	168,211		5.8	%
Automobile Components	1,124			27,760			—			—			495			29,379			1.0	%


Commercial Services & Supplies	142,864			153,500			—			—			21,691			318,055			11.1	%
Construction & Engineering	19,204			—			—			—			57,278			76,482			2.6	%

Distributors	284,189			670			—			—			9,148			294,007			10.2	%
Diversified Consumer Services	8,782			—			—			—			—			8,782			0.3	%

Diversified Telecommunication Services	170,046			—			—			—			31,040			201,086			7.0	%



Financial Services	77,781			—			—			—			—			77,781			2.7	%

Food Products	15,132			69,388			—			—			—			84,520			2.9	%

Health Care Providers & Services	164,122			49,136			—			—			146,206			359,464			12.5	%
Health Care Technology	123,745			—			—			—			—			123,745			4.3	%
Hotels, Restaurants & Leisure	28,742			—			—			—			—			28,742			1.0	%



Interactive Media & Services	80,700			—			—			—			—			80,700			2.8	%

IT Services	49,851			7,571			—			—			1,315			58,737			2.1	%
Leisure Products	69,938			—			—			—			—			69,938			2.4	%
Machinery	13,463			—			—			—			—			13,463			0.5	%
Media	84,820			—			—			—			—			84,820			3.0	%


Personal Care Products	10,549			—			—			—			480			11,029			0.4	%
Pharmaceuticals	141,766			—			—			—			—			141,766			5.0	%
Professional Services	76,859			—			—			—			14,772			91,631			3.2	%

Software	—			105,806			—			—			—			105,806			3.7	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Specialty Retail	2,108			—			—			—			6,313			8,421			0.3	%

Textiles, Apparel & Luxury Goods	74,325			—			—			—			50,842			125,167			4.3	%


Structured Finance (A)	—			—			—			—			—			—			—	%
Total Non-Control/Non-Affiliate	$	1,684,915		$	508,831		$	—		$	—		$	367,986		$	2,561,732		89.1	%
Fair Value % of Net Assets	58.6		%	17.7		%	—		%	—		%	12.8		%	89.1		%
Total Portfolio	$	4,034,335		$	574,063		$	—		$	5,213		$	1,330,867		$	5,944,478		206.8	%
Fair Value % of Net Assets	140.3		%	20.0		%	—		%	0.2		%	46.3		%	206.8		%

(A) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.

(B) Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(36)The interest rate on the below list of investments, which excludes those on non-accrual, contains a paid in kind (“PIK”) provision, whereby the issuer has either the option or the obligation to make interest payments with the issuance of additional securities. The interest rate in the schedule represents the current interest rate in effect for these investments.

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of September 30, 2026:


Security Name	PIK Rate - Capitalized	PIK Rate - Paid as cash	Maximum Current PIK Rate
Belnick, LLC (d/b/a The Ubique Group) - First Lien Term Loan	9.02%	3.55%	12.57%	(B)
CP Energy Services Inc. - First Lien Term Loan	11.52%	1.82%	13.34%
CP Energy Services Inc. - First Lien Term Loan	13.33%	—%	13.33%
CP Energy Services Inc. - First Lien Term Loan	—%	13.33%	13.33%
CP Energy Services Inc. - First Lien Term Loan	—%	13.33%	13.33%
CP Energy Services Inc. - First Lien Term Loan A to Spartan Energy Services, LLC	3.16%	9.18%	12.34%	(B)
CP Energy Services Inc. - Incremental First Lien Term Loan A to Spartan Energy Services, LLC	—%	12.34%	12.34%	(B)

Credit.com Holdings, LLC - First Lien Term Loan C	16.10%	—%	16.10%
Discovery Point Retreat, LLC - First Lien Delayed Draw Term Loan	5.00%	—%	5.00%
Druid City Infusion, LLC - First Lien Convertible Note to Druid City Intermediate, Inc.	2.00%	—%	2.00%

First Tower Finance Company LLC - First Lien Term Loan	—%	16.00%	16.00%	(C)
First Tower Finance Company LLC - First Lien Delayed Draw Term Loan	—%	16.00%	16.00%	(C)
Help/Systems Holdings, Inc. (d/b/a Forta, LLC) - Second Lien Term Loan	9.00%	—%	9.00%
InterDent, Inc. - First Lien Term Loan B	7.00%	—%	7.00%
InterDent, Inc. - First Lien Delayed Draw Term Loan B	7.00%	—%	7.00%
Lucky US BuyerCo LLC - First Lien Revolving Line of Credit	—%	2.00%	2.00%
Lucky US BuyerCo LLC - First Lien Term Loan	—%	2.00%	2.00%
MITY, Inc. - First Lien Term Loan B	—%	10.00%	10.00%

Nationwide Loan Company LLC - First Lien Delayed Draw Term Loan A	10.00%	—%	10.00%	(D)
Nationwide Loan Company LLC - First Lien Delayed Draw Term Loan B	10.00%	—%	10.00%	(D)
New WPCC Parent, LLC - First Lien Term Loan	—%	8.00%	8.00%
New WPCC Parent, LLC - Series A Preferred Interests	13.00%	—%	13.00%
Pacific World Corporation - First Lien Term Loan A	6.83%	1.32%	8.15%
QC Holdings TopCo, LLC - Second Lien Term Loan	—%	14.00%	14.00%	(E)
QC Holdings TopCo, LLC - Second Lien Delayed Draw Term Loan	—%	14.00%	14.00%	(E)


Recovery Solutions Parent, LLC - First Lien Term Loan	—%	5.00%	5.00%
Redstone Holdco 2 LP - First Lien Third Out Term Loan	12.00%	—%	12.00%
Rising Tide Holdings, Inc. - First Lien Term Loan A	30.00%	—%	30.00%	(F)
Rising Tide Holdings, Inc. - First Lien Term Loan B	30.00%	—%	30.00%	(F)
Safety Solutions Financing, LLC - Series B Preferred Units of BFC-SDR, LLC	8.00%	—%	8.00%
ShiftKey, LLC - First Lien Term Loan	0.50%	—%	0.50%
Shoes West, LLC (d/b/a Taos Footwear) - First Lien Convertible Term Loan B	2.00%	—%	2.00%



Shoes West, LLC (d/b/a Taos Footwear) - Class A Preferred Units of Taos Footwear Holdings, LLC	8.00%	—%	8.00%
STG Distribution, LLC - First Lien Term Loan	10.97%	—%	10.97%

Strategic Chemical Solutions Corp. (f/k/a USES Corp.) - First Lien Equipment Term Loan	11.14%	2.02%	13.16%	(G)
Town & Country Holdings, Inc. - First Lien Term Loan	—%	5.00%	5.00%	(H)
Universal Turbine Parts, LLC - Preferred A Units	12.75%	—%	12.75%
Upstream Holdco, Inc. - Second Lien Term Loan	13.58%	—%	13.58%
Upstream Holdco, Inc. - Second Lien Term Loan	12.98%	—%	12.98%
Victor Technology, LLC - First Lien Term Loan	—%	11.83%	11.83%	(I)
Wellful Inc. - Second Out First Lien Term Loan	—%	10.59%	10.59%

(A) On May 13, 2025, the Belnick, LLC First Lien Term Loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 12.57%.

(B) On August 22, 2022, the Spartan Energy Services, LLC Twenty-Fifth Amendment to Amended and Restated Senior Secured Loan Agreement was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 12.34%.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(C) On December 30, 2025, the First Tower Finance Company LLC Amendment No. 16 was amended to reduce the PIK rate to 5.00% and allow the interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 16.00%.

(D) The Nationwide Loan Company LLC Delayed Draw Term Loan agreement allows for a portion of interest accruing in cash to be payable in kind.

(E) The Amended QC Holdings TopCo, LLC Senior Secured Term Loan Agreement dated September 30, 2025, allows for a portion of interest accruing in cash to be payable in kind.

(F) The Rising Tide Holdings, Inc. Amended and Restated ABL Credit Agreement allows for all or a portion of interest to be payable in kind.

(G) On March 28, 2023, the Strategic Chemical Solutions Corp. (f/k/a USES Corp.) First Lien Equipment Term loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 13.16%.

(H) Town & Country Holdings, Inc. - First Lien Term Loan pays interest semi-annually. At September 30, 2026 no payment was due.

(I) On May 1, 2026, the Victor Technology, LLC First Lien Term Loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 11.83%.

(37)As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the three months ended September 30, 2026 with these controlled investments were as follows:


Controlled Companies	Fair Value at June 30, 2026		Gross Additions (Cost)(A)		Gross Reductions (Cost) (B)		Net unrealized gains (losses)		Fair Value at September 30, 2026			Interest income		Dividend income		Other income		Net realized gains (losses)
Belnick, LLC	$	108,565	$	2,207	$	—	$	(6,541)	$	104,231		$	3,079	$	—	$	13	$	—
CP Energy Services Inc.	82,823		4,693		—		(1,152)		86,364			3,596		—		—		—
CP Energy - Spartan Energy Services, LLC	58,456		483		—		2,802		61,741			1,884		—		—		—
Credit Central Loan Company, LLC	56,537		1,398		—		(3,822)		54,113			1,371		—		—		—
Echelon Transportation, LLC	—		—		—		—		—			—		—		—		—
First Tower Finance Company LLC	960,778		9,366		—		13,756		983,900			18,824		—		3,079		—
Freedom Marine Solutions, LLC	12,077		—		—		(69)		12,008			—		—		—		—
InterDent, Inc.	340,451		8,414		—		(17,103)		331,762			11,379		—		—		—
Kickapoo Ranch Pet Resort	3,828		—		—		572		4,400			20		—		—		—
MITY, Inc.	82,436		2,015		—		(5,747)		78,704			2,321		—		50		6
National Property REIT Corp.	1,081,596		15,017		—		(25,506)		1,071,107			8,998		—		—		—
Nationwide Loan Company LLC	31,732		282		—		(1,996)		30,018			281		—		—		—
NMMB, Inc.	79,804		—		—		4,403		84,207			949		1,351		—		(1,351)
Pacific World Corporation	112,412		2,094		—		(1,504)		113,002			2,499		—		—		—
QC Holdings TopCo, LLC	100,106		3,430		—		(7,057)		96,479			3,482		—		—		—
R-V Industries, Inc.	98,475		—		—		1,602		100,077			1,828		—		—		—
Strategic Chemical Solutions Corp.	9,375		564		—		(1,364)		8,575			733		—		—		—
Universal Turbine Parts, LLC	124,259		2,148		(63)		1,360		127,704			1,493		2,148		—		—
Valley Electric Company, Inc.	293,854		—		(95,912)		(197,942)		—			2,515		(1,083)		9,840		132,904
Victor Technology, LLC (C)	6,710		—		(75)		5,691		12,326		(C)	313		—		6		—
Total	$	3,644,274	$	52,111	$	(96,050)	$	(239,617)	$	3,360,718		$	65,565	$	2,416	$	12,988	$	131,559

(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, OID accretion and PIK interest, and any transfer of investments.

(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.

(C) Victor Technology LLC, was transferred to a control investment during the quarter-ended March 31, 2026 (see Note 14). Income recognized prior to the reclassification date is reflected as income from non-control/non-affiliate investments on our Consolidated Statement of Operations.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(38)As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the three months ended September 30, 2026 with these affiliated investments were as follows:


Affiliated Companies	Fair Value at June 30, 2026		Gross Additions (Cost)(A)		Gross Reductions (Cost)(B)		Net unrealized gains (losses)		Fair Value at September 30, 2026		Interest income		Dividend income		Other income		Net realized gains (losses)

Nixon, Inc.	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
RGIS Services, LLC	30,447		—		—		(8,419)		22,028		—		—		—		—
Total	$	30,447	$	—	$	—	$	(8,419)	$	22,028	$	—	$	—	$	—	$	—

(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, PIK interest, and any transfer of investments.

(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(39)Acquisition date represents the date of PSEC’s initial investment. Follow-on acquisitions have occurred on the following dates to arrive at PSEC’s current investment as of September 30, 2026 (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments) (see endnote 40 for NPRC equity follow-on acquisitions):


Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Apidos CLO XV	Subordinated Structured Note	3/29/2018	$	6,480
Apidos CLO XXII	Subordinated Structured Note	2/24/2020	1,912
Barings CLO 2018-III	Subordinated Structured Note	5/18/2018	9,255
BCPE North Star US Holdco 2, Inc.	Second Lien Term Loan	12/30/2021, 10/28/2022	70,133
BCPE Osprey Buyer, Inc.	First Lien Delayed Draw Term Loan	9/26/2023	4,639
Belnick, LLC	First Lien Term Loan	6/27/2022, 12/1/2023	18,000
Collections Acquisition Company, Inc.	First Lien Term Loan	1/13/2022, 3/14/2024, 10/30/2025	25,850
CP Energy Services Inc.	First Lien Term Loan	8/31/2023	2,900
CP Energy Services Inc.	First Lien Delayed Draw Term Loan	3/25/2025, 6/24/2025, 9/25/2025, 3/30/2026, 6/24/2026, 9/21/2026	12,500
CP Energy Services Inc.	First Lien Term Loan A to Spartan Energy Services, LLC	4/9/2021, 1/10/2022, 2/10/2023, 6/7/2024, 11/13/2024, 1/9/2025, 3/25/2025, 6/24/2025, 9/25/2025, 12/17/2025, 2/25/2026, 6/24/2026	32,181
CP Energy Services Inc.	Common Stock	10/11/2013, 12/26/2013, 4/6/2018, 12/31/2019	69,586
Credit Central Loan Company, LLC	Class A Units	12/28/2012, 3/28/2014, 6/26/2014, 9/28/2016, 8/21/2019	11,975
Credit Central Loan Company, LLC	First Lien Term Loan	6/26/2014, 9/28/2016, 12/16/2022, 1/27/2023, 9/30/2025	48,310
Credit Central Loan Company, LLC	First Lien Delayed Draw Term Loan	9/28/2026	1,398
Credit Central Loan Company, LLC	Preferred Class P Shares	1/27/2023	1,540
Discovery Point Retreat, LLC	First Lien Term Loan	5/9/2025	3,700
Discovery Point Retreat, LLC	First Lien Delayed Draw Term Loan	7/6/2026	683
Discovery Point Retreat, LLC	Series A Preferred Stock	2/18/2026	750
DRI Holding, Inc.	First Lien Term Loan	4/26/2022, 7/21/2022	12,999
DRI Holding, Inc.	Second Lien Term Loan	5/18/2022	10,000
Druid City Infusion, LLC	First Lien Term Loan	3/6/2026	6,364
Echelon Transportation, LLC	Membership Interest	3/31/2014, 9/30/2014, 12/9/2016	22,488
Emerge Intermediate, Inc.	First Lien Term Loan	6/14/2024	1,467
First Tower Finance Company LLC	First Lien Delayed Draw Term Loan to First Tower, LLC	9/29/2026	9,367
First Tower Finance Company LLC	Class A Units	12/30/2013, 6/24/2014, 12/15/2015, 11/21/2016, 3/9/2018	39,885
First Tower Finance Company LLC	First Lien Term Loan to First Tower, LLC	12/15/2015, 3/9/2018, 3/24/2022, 5/30/2025, 6/27/2025	60,548
Freedom Marine Solutions, LLC	Membership Interest	10/1/2009, 12/22/2009, 1/13/2010, 3/30/2010, 5/13/2010, 2/14/2011, 4/28/2011, 7/7/2011, 10/20/2011, 10/30/2015, 1/7/2016, 4/11/2016, 8/11/2016, 1/30/2017, 4/20/2017, 6/13/2017, 8/30/2017, 1/17/2018, 2/15/2018, 5/8/2018, 10/31/2018, 5/14/2021, 4/18/2022, 2/15/2023, 7/2/2024, 8/12/2025, 2/18/2026	43,943
Help/Systems Holdings, Inc.	Second Lien Term Loan	5/11/2021, 10/14/2021	54,649
Imperative Worldwide, LLC (f/k/a MAGNATE WORLDWIDE, LLC)	First Lien Term Loan	10/26/2022, 6/1/2023, 9/30/2024	8,190
Interdent, Inc.	First Lien Term Loan A	2/11/2014, 4/21/2014, 11/25/2014, 12/23/2014, 7/14/2021, 3/28/2022	93,903
Interdent, Inc.	First Lien Term Loan B	2/11/2014, 4/21/2014, 11/25/2014, 12/23/2014	76,125
Interdent, Inc.	First Lien Delayed Draw Term Loan B	12/20/2024, 3/24/2025, 5/27/2025, 6/23/2025, 9/25/2025, 12/23/2025, 3/26/2026, 6/25/2026, 9/25/2026	35,500
K&N HoldCo, LLC	Class A Common Units	7/31/2024	105
Kickapoo Ranch Pet Resort	Membership Interest	10/21/2019, 12/4/2019	28
LCM XIV Ltd.	Subordinated Structured Note	9/25/2015, 5/18/2018	9,422
Lucky US BuyerCo LLC	First Lien Revolving Line of Credit	3/21/2024, 6/24/2024, 3/31/2025, 7/15/2025, 12/11/2025, 9/28/2026	2,638
MITY, Inc.	Common Stock	6/23/2014	7,200
MITY, Inc.	First Lien Term Loan A	1/17/2017, 3/23/2021, 2/14/2024, 3/15/2024, 5/15/2024, 9/16/2024, 12/3/2024, 4/4/2025, 10/29/2025, 1/26/2026, 3/20/2026	25,764

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)


Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
MITY, Inc.	First Lien Term Loan B	1/17/2017, 6/3/2019	11,000
MITY, Inc.	Series A Redeemable Preferred Stock	1/26/2026, 3/20/2026, 7/30/2026	2,735
Nationwide Loan Company LLC	Class A Units	3/28/2014, 6/18/2014, 9/30/2014, 6/29/2015, 3/31/2016, 8/31/2016, 5/31/2017, 10/31/2017	20,469
Nationwide Loan Company LLC	First Lien Delayed Draw Term Loan A	6/26/2024	2,250
Nationwide Loan Company LLC	First Lien Delayed Draw Term Loan B	3/6/2025	3,000
National Property REIT Corp.	First Lien Term Loan A	4/3/2020, 5/15/2020, 6/10/2020, 7/29/2020, 8/14/2020, 9/15/2020,10/15/2020, 10/30/2020, 11/10/2020, 11/13/2020, 11/19/2020, 12/11/2020, 1/27/2021, 2/25/2021, 3/11/2021, 5/14/2021, 6/14/2021, 6/25/2021, 8/16/2021, 11/15/2021, 11/26/2021, 12/1/2021, 12/28/2021, 1/14/2022, 2/15/2022, 3/17/2022, 3/28/2022, 4/1/2022, 4/7/2022, 5/24/2022, 6/6/2022, 7/5/2022, 8/31/2022, 10/6/2022, 1/10/2023, 2/28/2023, 4/4/2023, 4/6/2023, 4/28/2023, 6/9/2023, 6/14/2023, 7/5/2023, 7/14/2023, 8/31/2023, 9/29/2023, 10/4/2023, 10/20/2023, 11/30/2023, 1/3/2024, 1/18/2024, 2/29/2024, 3/8/2024, 4/2/2024, 5/31/2024, 7/8/2024, 8/30/2024, 10/10/2024, 12/02/2024, 1/6/2025, 1/8/2025, 3/20/2025, 4/3/2025, 5/15/2025, 7/3/2025, 8/18/2025, 3/11/2026, 5/7/2026, 5/18/2026, 7/6/2026, 8/17/2026	996,049
New WPCC Parent, LLC	First Lien Term Loan	7/8/2025, 7/9/2025, 9/26/2025, 1/15/2026, 5/29/2026	12,158
New WPCC Parent, LLC	Series A Preferred Interests	9/4/2025, 9/11/2025, 9/12/2025, 11/14/2025, 12/17/2025, 2/6/2026, 2/11/2026	1,123
NEW WPCC PARENT, LLC.	Class A Common Interests	11/14/2025, 12/17/2025, 2/6/2026, 2/11/2026, 2/20/2026, 8/11/2026	68
NMMB, Inc.	First Lien Term Loan	12/30/2019, 3/28/2022	40,100
Octagon Investment Partners XV, Ltd.	Subordinated Structured Note	4/27/2015, 8/3/2015, 6/27/2017	10,516
Pacific World Corporation	Convertible Preferred Equity	4/3/2019, 4/29/2019, 6/3/2019, 10/4/2019, 11/12/2019, 12/20/2019, 1/7/2020, 3/5/2020, 12/30/2021, 1/26/2024, 7/31/2025, 8/15/2025, 9/12/2025, 12/19/2025, 3/26/2026, 4/10/2026	71,800
Pacific World Corporation	First Lien Term Loan A	12/22/2022, 11/25/2024, 3/7/2025	19,900
PeopleConnect Holdings, LLC	First Lien Term Loan	10/21/2021, 2/9/2026	116,229
(Precisely) Vision Solutions, Inc.	Second Lien Term Loan	5/28/2021, 6/24/2021, 6/3/2022	59,333
Preventics, Inc.	First Lien Term Loan 2	4/30/2025	1,900
Preventics, Inc.	Preferred Units	4/30/2025	38
Preventics, Inc.	Preferred Units	4/30/2025	527
QC Holdings TopCo, LLC	Second Lien Delayed Draw Term Loan	1/5/2026, 4/1/2026, 6/26/2026, 9/25/2026	8,529
Recovery Solutions Parent, LLC	First Lien Term Loan	6/27/2025, 7/8/2025, 1/15/2026, 1/21/2026	12,554
Recovery Solutions Parent, LLC	Common Stock	5/30/2025, 9/4/2025, 9/5/2025, 9/11/2025, 9/15/2025, 9/25/2025, 11/21/2025, 2/18/2026	3,473
RGIS Services, LLC	Membership Interest	5/28/2024, 12/12/2025	2,532
RME Group Holdings Company	First Lien Term Loan B	12/29/2025	2,000
Rosa Mexicano	First Lien Revolving Line of Credit	3/27/2020, 10/13/2023, 2/7/2024, 5/17/2024, 8/12/2025, 11/3/2025, 4/1/2026	7,750
R-V Industries, Inc.	First Lien Term Loan	3/4/2022, 9/25/2023, 11/24/2025	17,700
R-V Industries, Inc.	Common Stock	12/27/2016	1,854
Shiftkey, LLC	First Lien Term Loan	8/26/2022, 9/14/2022, 9/23/2022	39,450
The RK Logistics Group, Inc.	Class B Common Units	12/19/2023	1,250
The RK Logistics Group, Inc.	First Lien Term Loan	6/28/2024	13,000
Town & Country Holdings, Inc.	First Lien Term Loan	7/13/2018, 7/16/2018, 2/27/2024, 3/28/2024, 4/23/2024	115,000
Town & Country Holdings, Inc.	Class B of Town & Country TopCo LLC	10/18/2024, 12/27/2024, 1/10/2025, 5/7/2025, 7/11/2025, 10/1/2025, 1/7/2026, 3/20/2026, 4/1/2026, 7/1/2026, 8/4/2026, 9/11/2026	72,882
United Sporting Companies, Inc.	Second Lien Term Loan	3/7/2013, 3/14/2024	59,325
Universal Turbine Parts, LLC	First Lien Delayed Draw Term Loan	10/24/2019, 2/7/2020, 2/26/2020, 4/5/2021, 11/24/2023, 6/27/2025	6,716
USES Corp.	First Lien Term Loan A	6/15/2016, 6/29/2016, 2/22/2017, 4/27/2017, 5/4/2017, 8/30/2017, 10/11/2017, 12/11/2018, 8/30/2019	14,100
USES Corp.	First Lien Equipment Term Loan	6/23/2023, 7/3/2024, 11/6/2024, 1/9/2025	9,900
USG Intermediate, LLC	First Lien Term Loan B	8/24/2017, 7/30/2021, 2/9/2022, 8/17/2022, 5/12/2023, 12/20/2023, 2/21/2025	129,475

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2026 (Unaudited) (Continued)

(in thousands, except share data)

Endnote Explanations as of September 30, 2026 (Unaudited) (Continued)

(40)Since Prospect’s initial common equity investment in NPRC on December 31, 2013, we have made numerous additional follow-on investments that have been used to invest in new and existing properties as well as online consumer loans and rated secured structured notes. These follow-on acquisitions are summarized by fiscal year below (excluding effects of return of capital distributions). Details of specific transactions are included in the respective fiscal year Form 10-K filing (refer to endnote 39 for NPRC term loan follow-on investments):


Fiscal Year	Follow-On Investments (NPRC Common Stock, excluding cost of initial investment)
2014	$	4,555
2015	68,693
2016	93,857
2017	116,830
2018	137,024
2019	11,582
2020	19,800
2022	15,620
2023	3,600
2024	4,600
2025	—
2026	—

(41)On March 31, 2025, Prospect exercised certain rights and remedies under its loan documents to exercise voting rights in respect of the equity of Belnick, LLC and certain of its subsidiaries (“Belnick”), enabling Prospect to control 100% of the voting power of Belnick, and to, among other things, appoint new officers, all of whom are our Investment Adviser’s professionals. As a result, Prospect’s investment in Belnick became classified as a control investment. Effective May 22, 2025, Prospect established 100% ownership of Belnick Holdings of Delaware, LLC (“Belnick Delaware”), a wholly owned consolidated holdings company. On May 23, 2025, Belnick Delaware acquired a 100% voting interest in Belnick’s Class P Preferred units, which, together with the voting rights obtained through the proxy over the remaining Class A units, provides Prospect with 100% of the voting interest in Belnick. Belnick Delaware executed a share transfer agreement for the remaining Class A units and effective December 31, 2025, owns 100% of the membership units in Belnick. Belnick is a provider of high-volume, value-oriented furniture and furnishings to a broad range of residential and commercial end markets.

(42)This investment represents a Level 2 security in the ASC 820 table as of September 30, 2026. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion.

(43)Investment provides future right to acquire voting securities not beneficially owned, subject to certain terms and conditions, including prior notice, which if exercised, could result in such investment becoming an affiliate or control investment.

(44)The investment represents a unitranche loan with characteristics of a traditional first lien senior secured loan, but which pursuant to an agreement among lenders is divided among unaffiliated lenders into “first out” and “last out” tranches yielding different interest rates, where our investment is the “last out” tranche(s) of such unitranche loan, subject to payment priority in favor of a first out tranche held by an unaffiliated lender; or, the Company has entered into an intercreditor agreement that entitles the Company to the “last out” tranche of the first lien secured loans, whereby the “first out” tranche will receive priority as to the “last out” tranche(s) with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company may receive a higher interest rate than the “first out” lenders and the Consolidated Schedule of Investments above reflects such higher rate, as applicable.

(45)Emerge Intermediate, Inc., HD Research, LLC, ERG Buyer, LLC, and ERG Blocker, Inc. are joint borrowers on the First Lien Term Loan.

(46)The stated interest rate on the drawn revolver and delayed drawn term loan commitments represents a weighted average interest rate for the funded amounts of the investment.

(47)Wellpath Holdings, Inc. (“Wellpath”) filed for Chapter 11 bankruptcy on November 11, 2024. On May 9, 2025 Wellpath Holdings, Inc. consummated a court-approved restructuring pursuant to its Chapter 11 Plan of Reorganization. As part of this transaction, our existing First Lien Term Loan was restructured into new debt and equity positions in New WPCC Parent, LLC and our residual Second Lien Senior Secured Term Loan deficiency claims were exchanged for beneficial interests in the Wellpath Holdings, Inc. Liquidation Trust. Our recovery in the Trust is subject to a claim’s reconciliation process and the value of our interest is based on management’s current estimate of expected recovery, using Level 3 unobservable inputs.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026

(in thousands, except share data)

(48)Prospect owns 100% of the equity of Victor Holdings of Delaware, LLC (“Victor Holdings”), a Consolidated Holding Company. During the year ended June 30, 2026, Victor Holdings acquired 100% of the equity interest in VTI Acquisition, Inc. (“VTI”) and 99.90% of the equity interest in Victor Technology, LLC (“Victor Technology”), with VTI owning the remaining 0.1%. As a result, Prospect’s investment in Victor Technology is classified as a control investment as of September 30, 2026. Victor Technology is a manufacturer and distributor of office supplies, including calculators, standing desks, organizers and paperclips.

(49)Investments may have a portion, or all, of their income received from Paid-in-Kind (“PIK”) interest or dividends. PIK interest income and cumulative dividend income represent income not paid currently in cash. The difference between the All-in Rate and PIK Rate represents the cash rate as of September 30, 2026.

(50)The Prospect owns 100% of the equity of R-V Holdings of Delaware, LLC (“R-V Holdings”), a Consolidated Holding Company. R-V Holdings owns 90.01% of the fully-diluted equity of R-V Industries, Inc.

(51)Pursuant to the Second Amendment to the Credit Agreement, 2.00% of the applicable margin for the interest periods from March 1, 2026 to June 1, 2026 was capitalized as an exit fee and paid in kind. No fair value appears due to rounding.

Additional Information - Derivative instrument held at fair value:


Counterparty	Contract	Currency Purchased (1)	Currency Sold		Settlement Date	Maturity Date Range	Derivative Asset Fair Value		% of Net Assets		Derivative Liability Fair Value		% of Net Assets (2)
Mizuho Capital Markets LLC	Foreign Currency Forward Contracts	ILS 636,257	$	206,960	10/28/2025	12/24/2026 - 12/23/2030	$	14,373	0.5	%	$	—	—	%

(1) Currency purchased is Israeli Shekel (“ILS”).

(2) Percentage is less than 0.01% of Net Assets.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


													June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate		Ref. Rate	Spread		PIK (49)		Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Belnick, LLC (d/b/a The Ubique Group) (41)	Household Durables	First Lien Term Loan	1/20/2022	12.50	%	3M SOFR	8.50	%			4.00	5/14/2029			$	96,357	$	96,357	$	96,357	3.3%		(8)(36)
		Class P Units	5/23/2025	8.50	%				8.50	%		N/A	5,491		—		3,400		12,098		0.4%		(14)
		Class A Units	12/31/2025									N/A	50		—		—		110		—%		(14)
																	99,757		108,565		3.7%
CP Energy Services Inc. (18)	Energy Equipment & Services	First Lien Term Loan	12/24/2024	12.99	%	3M SOFR	9.00	%			1.00	4/4/2030			14,841		14,841		11,379		0.4	%	(8)(36)
		First Lien Term Loan	10/1/2017	12.99	%	3M SOFR	9.00	%			1.00	4/4/2030			66,455		66,455		50,951		1.7	%	(8)(36)
		First Lien Term Loan	4/5/2022	12.99	%	3M SOFR	9.00	%			1.00	4/4/2030			8,864		8,864		6,786		0.2	%	(8)(36)
		First Lien Term Loan	1/6/2023	12.99	%	3M SOFR	9.00	%			1.00	4/4/2030		16,700	17,879		17,879		13,707		0.5	%	(8)(36)
		First Lien Term Loan A to Spartan Energy Services, LLC	10/20/2014	11.99	%	3M SOFR	8.00	%			1.00	1/26/2030			46,117		46,117		43,885		1.5	%	(8)(36)
		First Lien Term Loan A to Spartan Energy Services, LLC	10/20/2014	11.99	%	3M SOFR	8.00	%			1.00	1/26/2030			15,312		15,312		14,571		0.5	%	(8)
		Incremental First Lien Term Loan A to Spartan Energy Services, LLC	3/25/2025	11.99	%	3M SOFR	8.00	%			1.00	1/26/2030		1,200	—		—		—		—	%	(8)(13)(36)
		Series A Preferred Units to Spartan Energy Holdings, Inc.	9/25/2020	15.00	%							N/A	10,000		—		26,193		—		—	%	(14)
		Series B Redeemable Preferred Stock	10/30/2015	16.00	%							N/A	790		—		63,225		—		—	%	(14)
		Common Stock	8/2/2013									N/A	102,924		—		86,240		—		—	%	(14)
																	345,126		141,279		4.8%
Credit Central Loan Company, LLC (19)	Consumer Finance	First Lien Term Loan	12/28/2012	5.75	%						—	11/30/2029			92,893		92,893		56,292		1.9	%	(12)
		First Lien Delayed Draw Term Loan	6/18/2026	5.75	%						—	11/30/2029		9,983	399		399		245		—	%	(12)(13)
		Class A Units	12/28/2012								—	N/A	14,867,312		—		19,331		—		—	%	(12)(14)
		Preferred Class P Shares	7/1/2022	12.75	%				12.75	%	—	N/A	16,369,256		—		11,520		—		—	%	(12)(14)
		Net Revenues Interest	1/28/2015								—	N/A			—		—		—		—	%	(12)(14)
																	124,143		56,537		1.9	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


													June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate		Ref. Rate	Spread		PIK (49)		Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Echelon Transportation, LLC	Trading Companies & Distributors	Membership Interest	3/31/2014								—	N/A			$	—	$	—	$	—	—	%	(14)
		Preferred Units	1/31/2022	12.75	%						—	N/A	53,076,654		—		—		—		—	%	(14)
																	—		—		—	%
First Tower Finance Company LLC (21)	Consumer Finance	First Lien Term Loan to First Tower, LLC	6/24/2014	16.00	%				5.00	%	—	12/18/2027			449,336		449,336		449,336		15.3	%	(12)(36)
		First Lien Delayed Draw Term Loan to First Tower, LLC	6/30/2026	16.00	%				5.00	%	—	12/18/2027		27,319	10,928		10,928		10,928		0.4	%	(12)(13)(36)
		Class A Units	6/14/2012						—	%	—	N/A	95,709,910		—		31,146		500,514		17.1	%	(12)(14)
																	491,410		960,778		32.8	%
Freedom Marine Solutions, LLC	Marine Transport	Membership Interest	11/9/2006								—	N/A			—		47,967		12,077		0.4	%	(14)(22)
																	47,967		12,077		0.4	%
InterDent, Inc.	Health Care Providers & Services	First Lien Delayed Draw Term Loan B	9/30/2024	12.00	%				7.00	%	—	9/5/2027		42,000	37,128		37,128		31,132		1.1	%	(13)(36)
		First Lien Term Loan A/B	8/1/2018	18.41	%	1M SOFR	14.65	%			2.00	9/5/2027			14,249		14,249		14,249		0.5	%	(3)(8)
		First Lien Term Loan A	8/3/2012	9.26	%	1M SOFR	5.50	%			1.00	9/5/2027			95,823		95,823		95,823		3.3	%	(3)(8)
		First Lien Term Loan B	8/3/2012	12.00	%				7.00	%	—	9/5/2027			237,623		237,623		199,247		6.8	%	(36)
		Common Stock	5/3/2019								—	N/A	99,900		—		45,118		—		—	%	(14)
																	429,941		340,451		11.7	%
Kickapoo Ranch Pet Resort	Diversified Consumer Services	First Lien Term Loan	1/11/2024	11.23	%	3M SOFR	7.50	%			3.00	1/10/2029			700		700		700		—	%	(8)
		Membership Interest	8/26/2019								—	N/A			—		2,378		3,128		0.1	%	(14)
																	3,078		3,828		0.1	%
MITY, Inc. (23)	Commercial Services & Supplies	First Lien Term Loan A	9/19/2013	13.01	%	3M SOFR	9.02	%			3.00	11/30/2027			57,188		57,188		57,188		2.0	%	(3)(8)
		First Lien Term Loan B	6/23/2014	20.99	%	3M SOFR	7.00	%	10.00	%	3.00	11/30/2027			8,274		8,274		8,274		0.3	%	(8)(36)
		Unsecured Note to Broda Enterprises ULC	9/19/2013	10.00	%						—	1/1/2028			5,195		7,200		5,195		0.2	%	(12)
		Common Stock	9/19/2013								—	N/A	42,053		—		27,349		10,218		0.3	%	(14)
		Series A Redeemable Preferred Stock	10/29/2025	8.00	%				8.00	%	—	N/A	1,424		—		1,424		1,561		0.1	%	(14)
																	101,435		82,436		2.9	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


													June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate		Ref. Rate	Spread		PIK (49)		Floor	Legal Maturity	Shares/Units	Commitment		Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

National Property REIT Corp. (24)	Residential Real Estate Investment Trusts (REITs) / Consumer Finance / Structured Finance	First Lien Term Loan A	12/31/2018	6.00	%	3M SOFR	0.25	%	2.00	%	3.75	3/31/2027				$	645,782	$	645,782	$	645,782	22.0	%	(8)(36)(33)
		First Lien Term Loan D	6/19/2020	6.00	%	3M SOFR	0.25	%	2.00	%	3.75	3/31/2027				178,425		178,425		178,425		6.1	%	(8)(36)(33)
		First Lien Term Loan E	11/14/2022	14.00	%	3M SOFR	1.50	%	7.00	%	5.50	3/31/2027				52,652		52,652		52,652		1.8	%	(8)(36)(33)
		Residual Profit Interest	12/31/2018								—	N/A				—		—		16,966		0.6	%	(14)(33)
		Common Stock	12/31/2013								—	N/A	3,374,914			—		20,030		187,771		6.4	%	(14)(40)
																		896,889		1,081,596		36.9	%
Nationwide Loan Company LLC (25)	Consumer Finance	First Lien Delayed Draw Term Loan A	5/15/2024	10.00	%						—	5/15/2029		$	7,350	6,479		6,479		6,479		0.2	%	(12)(13)(36)
		First Lien Delayed Draw Term Loan B	12/23/2024	10.00	%						—	5/15/2029		8,000		4,533		4,533		4,533		0.2	%	(12)(13)(36)
		Class A Units	1/31/2013								—	N/A	925,796,475			—		49,936		20,720		0.7	%	(12)(14)
																		60,948		31,732		1.1	%
NMMB, Inc. (26)	Media	First Lien Term Loan	12/30/2019	12.49	%	3M SOFR	8.50	%			2.00	3/31/2027				29,723		29,723		29,723		1.0	%	(3)(8)
		Common Stock	12/30/2019								—	N/A	21,418			—		—		50,081		1.7	%
																		29,723		79,804		2.7	%
Pacific World Corporation (34)	Personal Care Products	First Lien Term Loan A	12/31/2014	7.89	%	1M SOFR	4.25	%	7.89	%	1.00	3/26/2029				122,445		122,445		112,412		3.8	%	(8)(36)
		Convertible Preferred Equity	6/15/2018	12.00	%				12.00	%	—	N/A	882,961			—		238,494		—		—	%	(14)
		Common Units of PWC Investment Group, LLC	9/29/2017								—	N/A	6,778,414			—		—		—		—	%	(14)
																		360,939		112,412		3.8	%
QC Holdings TopCo, LLC (17)	Consumer Finance	Second Lien Term Loan	6/30/2025	23.50	%	3M SOFR	18.50	%			5.00	7/1/2030				59,948		59,948		59,948		2.0	%	(3)(8)(12)(36)
		Second Lien Delayed Draw Term Loan	9/30/2025	23.50	%	3M SOFR	18.50	%			5.00	7/1/2030		11,125		1,854		1,854		1,854		0.1	%	(8)(12)(13)(36)
		Class A Units	6/30/2025								—	N/A	222,886			—		22,289		38,304		1.3	%	(12)(14)
																		84,091		100,106		3.4	%
R-V Industries, Inc. (50)	Machinery	First Lien Term Loan	12/15/2020	12.99	%	3M SOFR	9.00	%			1.00	12/15/2028				46,322		46,322		46,322		1.6	%	(3)(8)
		First Lien Term Loan	12/20/2024	7.50	%	3M SOFR	3.50	%			4.00	12/15/2028				10,000		10,000		10,000		0.3	%	(3)(8)
		First Lien Term Loan	6/30/2026	10.50	%	3M SOFR	6.50	%			4.00	12/15/2028				5,000		5,000		5,000		0.2	%	(8)
		Common Stock	6/26/2007								—	N/A	745,107			—		6,866		37,153		1.3	%
																		68,188		98,475		3.4	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


													June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate		Ref. Rate	Spread		PIK (49)		Floor	Legal Maturity	Shares/Units	Commitment	Principal Value		Amortized Cost		Fair Value(2)		% of Net Assets

Control Investments (greater than 25.00% voting control)(37)

Strategic Chemical Solutions Corp. (f/k/a USES Corp.) (28)	Commercial Services & Supplies	First Lien Term Loan	12/30/2020	12.90	%	1M SOFR	9.00	%			1.00	8/15/2030			$	2,000	$	2,000	$	854	—	%	(8)
		First Lien Equipment Term Loan	8/3/2022	12.90	%	1M SOFR	9.00	%			1.00	8/15/2030			19,962		19,962		8,521		0.3	%	(8)(36)
		First Lien Term Loan A	3/31/2014	9.00	%				9.00	%	—	8/15/2030			83,024		—		—		—	%	(7)
		First Lien Term Loan B	3/31/2014	15.50	%				15.50	%	—	8/15/2030			156,602		—		—		—	%	(7)
		Common Stock	6/15/2016								—	N/A	268,962		—		—		—		—	%	(14)
																	21,962		9,375		0.3	%
Universal Turbine Parts, LLC (32)	Aerospace & Defense	First Lien Delayed Draw Term Loan	2/28/2019	11.74	%	3M SOFR	7.75	%			2.50	2/29/2028		6,965	6,435		6,435		6,435		0.2%		(8)(13)
		First Lien Term Loan A	7/22/2016	9.74	%	3M SOFR	5.75	%			1.00	2/29/2028			29,575		29,575		29,575		1.0%		(3)(8)
		First Lien Term Loan A	1/21/2025	11.74	%	3M SOFR	7.75	%			2.50	2/29/2028			3,970		3,970		3,970		0.1%		(3)(8)
		First Lien Term Loan A	2/28/2025	11.74	%	3M SOFR	7.75	%			2.50	2/29/2028			14,800		14,800		14,800		0.5%		(3)(8)
		Preferred A Units	3/31/2021	12.75	%				12.75	%	—	10/1/2030	45,654,914		—		33,883		46,750		1.6%		(36)
		Preferred B Units	10/1/2025	18.00	%				18.00	%	—	N/A	47,419,298		—		4,796		22,729		0.8%		(14)
		Common Stock	12/10/2018								—	N/A	10,000		—		—		—		—%		(14)
																	93,459		124,259		4.2%
Valley Electric Company, Inc. (29)	Construction & Engineering	First Lien Term Loan to Valley Electric Co. of Mt. Vernon, Inc.	12/31/2012	11.49	%	3M SOFR	5.00	%	2.50	%	3.00	7/1/2026			10,452		10,452		10,452		0.4	%	(3)(8)(36)
		First Lien Term Loan	6/24/2014	18.00	%				10.00	%	—	4/30/2028			38,630		38,630		38,630		1.3	%	(3)(36)
		First Lien Term Loan B	3/28/2022	12.50	%				5.50	%	—	4/30/2028			34,777		34,777		34,777		1.2	%	(3)(36)
		Consolidated Revenue Interest	6/22/2018								—	N/A			—		—		2		—	%	(10)
		Common Stock	12/31/2012								—	N/A	50,000		—		12,053		209,993		7.2	%
																	95,912		293,854		10.1	%
Victor Technology, LLC (48)	Distributors	First Lien Term Loan	12/3/2021	11.49	%	3M SOFR	7.50	%			1.00	12/3/2028			10,650		10,650		6,710		0.2	%	(8)
		Class P Units	2/10/2026	12.00	%				12.00	%	—	N/A	1,000		—		2,000		—		—	%	(14)
		Class A Units	4/20/2026								—	N/A	1		—		—		—		—	%	(14)
																	12,650		6,710		0.2	%
Total Control Investments																	3,367,618		3,644,274		124.4	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date(39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Units	Commitment	Principal Value	Amortized Cost		Fair Value(2)		% of Net Assets

Affiliate Investments (5.00% to 25.00% voting control)(38)

Nixon, Inc. (30)	Textiles, Apparel & Luxury Goods	Common Stock	5/12/2017						N/A	857			$	—	$	—	—	%	(14)
													—		—		—	%
RGIS Services, LLC	Commercial Services & Supplies	Membership Interest	6/25/2020						N/A	505,308			12,835		30,447		1.0	%
													12,835		30,447		1.0	%
Total Affiliate Investments													$	12,835	$	30,447	1.0	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment		Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Abacus Dermatology Management, LLC	Professional Services	First Lien Revolving Line of Credit	6/30/2026	11.73%	3M SOFR	8.00%		3.50	6/30/2031		$	500	$	—	$	—	$	—	—	%	(8)(13)
		First Lien Term Loan	6/30/2026	11.73%	3M SOFR	8.00%		3.50	6/30/2031				13,530		13,530		13,530		0.5	%	(8)
															13,530		13,530		0.5	%
Apidos CLO XV	Structured Finance	Subordinated Structured Note	9/13/2013	0.00%	Yield	0.00%		—	4/21/2031				48,515		—		697		—	%	(5)(12)(15)
															—		697		—	%
Apidos CLO XXII	Structured Finance	Subordinated Structured Note	9/16/2015	0.00%	Yield	0.00%		—	4/21/2031				35,855		2,108		2,097		0.1	%	(5)(12)(15)
															2,108		2,097		0.1	%
Atlantis Health Care Group (Puerto Rico), Inc.	Health Care Providers & Services	First Lien Term Loan	2/21/2013	12.73%	3M SOFR	8.75%		2.00	5/28/2027				52,992		52,992		52,992		1.8	%	(3)(8)
															52,992		52,992		1.8	%
Aventiv Technologies, LLC	Diversified Telecommunication Services	Super Priority Bridge First Lien Term Loan	5/20/2026	10.91%	3M SOFR	7.00%		1.00	9/30/2026				3,539		3,453		3,539		0.1	%	(8)(44)
		Super Priority Bridge First Lien Term Loan	4/24/2025	13.94%	3M SOFR	10.00%		1.00	9/30/2026				43,664		43,564		43,664		1.5	%	(8)(44)
		Super Priority Bridge First Lien Term Loan	12/23/2024	13.94%	3M SOFR	10.00%		1.00	9/30/2026				3,053		3,052		3,053		0.1	%	(8)(44)
		Second Out Super Priority First Lien Term Loan	4/2/2024	11.49%	3M SOFR	7.50%		1.00	9/30/2026				804		804		804		—	%	(8)(36)(44)
		Third Out Super Priority First Lien Term Loan	3/28/2024	9.08%	3M SOFR	5.09%		1.00	9/30/2026				29,779		29,779		22,126		0.8	%	(8)(36)(44)
		Super Priority Second Lien Term Loan	3/28/2024	13.04%	3M SOFR	9.05%		1.00	9/30/2026				168,579		59,071		8,429		0.3	%	(7)(8)
															139,723		81,615		2.8	%
Barings CLO 2018-III	Structured Finance	Subordinated Structured Note	10/9/2014	0.00%	Yield	0.00%		—	7/20/2029				82,809		—		—		—	%	(5)(12)(15)
															—		—		—	%
Barracuda Parent, LLC	IT Services	Second Lien Term Loan	8/15/2022	10.66%	3M SOFR	7.00%		0.50	8/15/2030				20,000		19,690		7,126		0.2	%	(8)
															19,690		7,126		0.2	%
BCPE North Star US Holdco 2, Inc.	Food Products	Second Lien Term Loan	6/7/2021	11.01%	1M SOFR	7.25%		0.75	6/8/2029				69,388		69,063		69,380		2.4	%	(3)(8)
															69,063		69,380		2.4	%
BCPE Osprey Buyer, Inc.	Health Care Technology	First Lien Term Loan	10/18/2021	9.51%	1M SOFR	5.75%		0.75	8/23/2028				4,574		4,550		4,574		0.2	%	(3)(8)
		First Lien Term Loan	10/18/2021	9.68%	3M SOFR	5.75%		0.75	8/23/2028				62,075		62,075		62,075		2.1	%	(3)(8)
															66,625		66,649		2.3	%
Burgess Point Purchaser Corporation	Automobile Components	Second Lien Term Loan	7/25/2022	12.76%	3M SOFR	9.00%		0.75	7/25/2030				30,000		30,000		28,537		1.0	%	(3)(8)
															30,000		28,537		1.0	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Capstone Logistics Acquisition, Inc.	Commercial Services & Supplies	Second Lien Term Loan	11/12/2020	12.24%	1M SOFR	8.50%		1.00	11/12/2030			$	8,500	$	8,400	$	8,500	0.3	%	(3)(8)
														8,400		8,500		0.3	%
Cent CLO 21 Limited	Structured Finance	Subordinated Structured Note	5/15/2014	0.00%	Yield				7/29/2030			49,552		—		—		—	%	(5)(12)(15)
														—		—		—	%
Collections Acquisition Company, Inc.	Financial Services	First Lien Term Loan	12/3/2019	10.23%	3M SOFR	6.50%		2.50	6/3/2028			54,049		54,049		54,049		1.8	%	(3)(8)
														54,049		54,049		1.8	%
Credit.com Holdings, LLC	Diversified Consumer Services	First Lien Term Loan A	9/28/2023	14.99%	3M SOFR	11.00%		1.50	9/28/2028			45,316		40,513		8,436		0.3	%	(7)(8)
		First Lien Term Loan B	9/28/2023	15.99%	3M SOFR	12.00%		1.50	9/28/2028			79,154		62,114		—		—	%	(7)(8)
		First Lien Term Loan C	6/3/2026	15.92%	3M SOFR	12.00%		1.50	8/27/2028			587		587		1,175		—	%	(8)
		Class B of PGX TopCo II LLC	9/28/2023	0.00%		0.00%			N/A	999				—		—		—	%	(14)(43)
														103,214		9,611		0.3	%
Discovery Point Retreat, LLC (6)	Health Care Providers & Services	First Lien Term Loan	6/14/2024	11.74%	3M SOFR	7.75%		3.25	6/14/2029			20,135		20,135		20,135		0.7	%	(3)(8)
		First Lien Delayed Draw Term Loan	5/27/2026	12.00%			5.00%		6/14/2031		975	293		293		293		—	%	(13)(36)(43)
		Series A Preferred Stock of Discovery MSO HoldCo LLC	6/14/2024	12.00%			12.00%		N/A	9,573				8,700		13,446		0.5	%	(14)(43)(22)
														29,128		33,874		1.2	%
DRI Holding Inc.	Commercial Services & Supplies	First Lien Term Loan	12/21/2021	9.06%	3M SOFR	5.25%		0.50	12/21/2028			32,874		32,362		32,874		1.1	%	(3)(8)
		Second Lien Term Loan	12/21/2021	11.74%	1M SOFR	8.00%		0.50	12/21/2029			145,000		145,000		145,000		5.0	%	(3)(8)
														177,362		177,874		6.1	%
Druid City Infusion, LLC	Pharmaceuticals	First Lien Term Loan	9/30/2024	11.23%	3M SOFR	7.50%		3.00	10/4/2029			45,537		45,537		45,537		1.6	%	(3)(8)
		First Lien Convertible Note to Druid City Intermediate, Inc.	9/30/2024	8.00%		0.00%	2.00%		10/4/2033			19,629		19,629		38,732		1.3	%	(3)(36)(43)
														65,166		84,269		2.9	%
Emerge Intermediate, Inc. (45)	Pharmaceuticals	First Lien Term Loan	2/26/2024	9.92%	3M SOFR	6.25%		1.00	8/31/2027			57,623		57,623		57,047		1.9	%	(3)(8)
														57,623		57,047		1.9	%
Enseo Acquisition, Inc.	Media	First Lien Term Loan	6/2/2021	12.49%	3M SOFR	8.50%		2.00	12/31/2027			48,803		48,803		48,803		1.7	%	(3)(8)
														48,803		48,803		1.7	%
Eyefive, LLC (d/b/a Shipoffers)	Distributors	First Lien Term Loan	6/26/2026	11.23%	3M SOFR	7.50%		2.50	6/26/2031			52,000		45,054		45,054		1.5	%	(8)
		Warrants of EF Holdco, LLC	6/26/2026			0.00%			6/26/2036	113				6,946		6,946		0.3	%	(14)
														52,000		52,000		1.8	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment		Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Eze Castle Integration, Inc.	Software	First Lien Delayed Draw Term Loan	7/15/2020	10.56%	3M SOFR	6.75%		3.00	1/15/2027		$	8,036	$	2,539	$	2,539	$	2,539	—	%	(8)(13)(46)
		First Lien Term Loan	7/15/2020	10.57%	3M SOFR	6.75%		3.00	1/15/2027				45,443		45,443		45,443		1.6	%	(3)(8)
															47,982		47,982		1.6	%
First Brands Group (51)	Automobile Components	First Lien DIP Term Loan A	10/2/2025	13.61%	1M SOFR	10.00%		1.00	6/29/2026				6,465		5,808		1,108		—	%	(7)(8)(42)
		First Lien DIP Term Loan B	10/2/2025	10.61%	1M SOFR	7.00%	10.61%	1.00	6/29/2026				18,629		17,470		58		—	%	(7)(8)(42)
		First Lien Term Loan	9/19/2025	10.73%	1M SOFR	7.00%	10.73%	1.00	3/30/2027				5,470		2,938		9		—	%	(7)(8)(42)
		First Lien Term Loan	3/24/2021	10.73%	1M SOFR	7.00%	10.73%	1.00	3/30/2027				10,290		7,296		17		—	%	(7)(8)(42)
		Second Lien Term Loan	3/24/2021	14.23%	1M SOFR	10.50%	14.23%	1.00	3/30/2028				41,681		37,000		41		—	%	(7)(8)(42)
															70,512		1,233		—	%
Galaxy XV CLO, Ltd.	Structured Finance	Subordinated Structured Note	2/13/2013	0.00%	Yield	0.00%	0.00%	—	10/15/2030				50,525		—		—		—	%	(5)(12)(15)
															—		—		—	%
Galaxy XXVII CLO, Ltd.	Structured Finance	Subordinated Structured Note	9/30/2013	0.00%	Yield	0.00%	0.00%	—	5/16/2031				24,575		—		—		—	%	(5)(12)(15)
															—		—		—	%
Galaxy XXVIII CLO, Ltd.	Structured Finance	Subordinated Structured Note	5/30/2014	0.00%	Yield	0.00%	0.00%	—	7/15/2031				39,905		—		—		—	%	(5)(12)(15)
															—		—		—	%
Global Tel*Link Corporation (d./b/a ViaPath Technologies)	Diversified Telecommunication Services	First Lien Term Loan	8/6/2024	11.14%	1M SOFR	7.50%	0.00%	3.00	8/6/2029				108,820		106,035		108,820		3.7	%	(3)(8)
															106,035		108,820		3.7	%
Halcyon Loan Advisors Funding 2014-2 Ltd.	Structured Finance	Subordinated Structured Note	4/14/2014	0.00%	Yield	0.00%	0.00%	—	4/28/2030				41,164		—		—		—	%	(5)(12)(15)
															—		—		—	%
Halcyon Loan Advisors Funding 2015-3 Ltd.	Structured Finance	Subordinated Structured Note	7/23/2015	0.00%	Yield	0.00%	0.00%	—	10/18/2027				39,598		—		—		—	%	(5)(12)(15)
															—		—		—	%
HarbourView CLO VII-R, Ltd.	Structured Finance	Subordinated Structured Note	6/5/2015	0.00%	Yield	0.00%	0.00%	—	7/18/2031				19,025		—		—		—	%	(5)(12)(15)
															—		—		—	%
Healthcare Venture Partners, LLC	Health Care Providers & Services	First Lien Term Loan	8/29/2025	11.73%	3M SOFR	8.00%	0.00%	3.50	8/29/2030				11,570		11,570		11,570		0.4	%	(3)(8)
		First Lien Revolving Line of Credit	8/29/2025	11.73%	3M SOFR	8.00%	0.00%	3.50	8/29/2030		1,000		—		—		—		—	%	(8)(13)
		Series A Preferred Units of TCSPV Holdings IV, LLC	8/29/2025	0.00%					N/A	2,150,000					2,150		2,699		0.1	%	(14)(43)(22)
															13,720		14,269		0.5	%
Help/Systems Holdings, Inc. (d/b/a Forta, LLC)	Software	Second Lien Term Loan	11/14/2019	12.74%	3M SOFR	0.00%	9.00%	2.00	5/19/2029				56,344		56,333		46,550		1.6	%	(8)(36)
															56,333		46,550		1.6	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment		Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Imperative Worldwide, LLC	Air Freight & Logistics	First Lien Term Loan	3/11/2022	9.38%	3M SOFR	5.50%	0.00%	0.75	12/30/2028				$	31,394	$	31,389	$	31,394	1.1	%	(3)(8)
		First Lien Term Loan	9/30/2024	9.23%	3M SOFR	5.50%	0.00%	0.75	12/30/2028				5,895		5,819		5,895		0.2	%	(3)(8)
		Second Lien Term Loan	12/30/2021	12.38%	3M SOFR	8.50%	0.00%	0.75	12/30/2029				95,000		95,000		95,000		3.2	%	(3)(8)
															132,208		132,289		4.5	%
iQor Holdings, Inc.	Professional Services	First Lien Term Loan	6/11/2024	11.49%	3M SOFR	7.50%	0.00%	2.50	6/11/2029				44,454		44,454		44,454		1.5	%	(3)(8)
		Common Stock of Bloom Parent, Inc.	6/11/2024		0.00%	0.00%	0.00%		N/A	10,450					10,450		12,591		0.4	%	(14)
															54,904		57,045		1.9	%
Japs-Olson Company, LLC (31)	Commercial Services & Supplies	First Lien Term Loan	5/25/2023	10.48%	3M SOFR	6.75%	0.00%	2.00	5/25/2028				54,268		54,268		54,268		1.9	%	(3)(8)
															54,268		54,268		1.9	%
Julie Lindsey, Inc.	Textiles, Apparel & Luxury Goods	First Lien Revolving Line of Credit	7/27/2023	10.00%	3M SOFR	6.00%	0.00%	4.00	7/27/2027		$	2,000	—		—		—		—	%	(8)(13)
		First Lien Term Loan	7/27/2023	10.00%	3M SOFR	6.00%	0.00%	4.00	7/27/2028				18,548		18,548		18,548		0.6	%	(3)(8)
															18,548		18,548		0.6	%
K&N HoldCo, LLC	Automobile Components	Class A Common Units	2/14/2023		0.00%	0.00%	0.00%		N/A	137,215					25,802		439		—	%	(14)
															25,802		439		—	%
KM2 Solutions LLC	Professional Services	First Lien Term Loan	12/17/2020	13.48%	3M SOFR	9.60%	0.00%	3.00	7/16/2027				14,479		14,479		14,479		0.5	%	(3)(8)
															14,479		14,479		0.5	%
LCM XIV Ltd.	Structured Finance	Subordinated Structured Note	6/25/2013	0.00%	Yield	0.00%	0.00%	—	7/21/2031				49,934		—		—		—	%	(5)(12)(15)
															—		—		—	%
Lucky US BuyerCo LLC	Financial Services	First Lien Revolving Line of Credit	4/3/2023	11.92%	3M SOFR	6.25%	2.00%	1.00	4/1/2029		2,775		2,546		2,546		2,546		0.1	%	(8)(13)(36)
		First Lien Term Loan	4/3/2023	11.92%	3M SOFR	6.25%	2.00%	1.00	4/1/2029				21,237		21,237		21,237		0.7	%	(3)(8)(36)
															23,783		23,783		0.8	%
MAC Discount, LLC	Distributors	First Lien Term Loan	5/11/2023	12.48%	3M SOFR	8.50%		1.50	5/11/2028				30,166		30,034		30,166		1.0	%	(3)(8)
		Class A Senior Preferred Stock of MAC Discount Investments, LLC	5/11/2023	12.00%	FIXED				N/A	1,500,000					1,500		2,140		0.1	%	(14)
															31,534		32,306		1.1	%
Medical Solutions Holdings, Inc. (4)	Health Care Providers & Services	Second Lien Term Loan	11/1/2021	10.76%	3M SOFR	7.00%	0.00%	0.50	11/1/2029				54,463		54,444		21,402		0.7	%	(8)
															54,444		21,402		0.7	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

New WPCC Parent, LLC (47)	Health Care Providers & Services	First Lien Term Loan	5/9/2025	13.14%	1M SOFR	9.50%		2.00	5/9/2030			$	25,856	$	22,915	$	25,856	0.9	%	(3)(8)
		Series A Preferred Interests	5/9/2025	13.00%			13.00%		N/A	993,485				11,165		14,960		0.5	%	(43)
		Class A Common Interests	5/9/2025						N/A	1,084,072				90		21,339		0.7	%	(14)(43)
		Liquidating Trust of Wellpath Holdings, Inc.	5/9/2025						N/A					2,011		12,264		0.4	%	(14)
														36,181		74,419		2.5	%
Octagon Investment Partners XV, Ltd.	Structured Finance	Subordinated Structured Note	1/24/2013	0.00%	Yield	0.00%	0.00%	—	7/19/2030			42,064		—		—		—	%	(5)(12)(15)
														—		—		—	%
OneTouchPoint Corp	Commercial Services & Supplies	First Lien Term Loan	2/19/2021	11.98%	3M SOFR	8.00%	0.00%	1.00	6/30/2027			22,246		22,246		22,246		0.8	%	(3)(8)
														22,246		22,246		0.8	%
PeopleConnect Holdings, Inc (9)	Interactive Media & Services	First Lien Term Loan	1/22/2020	12.13%	3M SOFR	8.25%	0.00%	2.75	1/22/2028			87,850		87,850		87,850		3.0	%	(3)(8)
														87,850		87,850		3.0	%
Precisely Software Incorporated	Software	Second Lien Term Loan	4/23/2021	11.18%	3M SOFR	7.25%	0.00%	0.75	4/23/2029			80,000		79,673		53,940		1.8	%	(3)(8)
														79,673		53,940		1.8	%
Preventics, Inc. (d/b/a Legere Pharmaceuticals)	Personal Care Products	First Lien Term Loan	11/12/2021	14.49%	3M SOFR	10.50%		1.00	11/12/2026			8,696		8,696		8,696		0.3	%	(3)(8)
		First Lien Term Loan	4/30/2025	11.49%	3M SOFR	7.50%		3.00	11/12/2026			1,881		1,881		1,881		0.1	%	(3)(8)
		Series A Convertible Preferred Stock of Legere Pharmaceutical Holdings, Inc.	11/12/2021	8.00%					N/A	472				165		120		—	%	(14)(43)
		Series C Convertible Preferred Stock of Legere Pharmaceutical Holdings, Inc.	11/12/2021	8.00%					N/A	5,677				1,946		908		—	%	(14)(43)
														12,688		11,605		0.4	%
Recovery Solutions Parent, LLC	Health Care Providers & Services	First Lien Term Loan	1/27/2025	11.23%	3M SOFR	7.50%		2.00	1/27/2030			43,261		33,546		43,261		1.5	%	(3)(8)
		Membership Interest	1/27/2025						N/A	1,609,466				21,255		64,110		2.2	%	(14)(43)
														54,801		107,371		3.7	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

Redstone Holdco 2 LP (20)	IT Services	First Lien Second Out Term Loan	1/21/2026	9.16%	3M SOFR	5.50%			12/31/2030			$	6,000	$	6,000	$	5,750	0.3	%	(8)
		First Lien Third Out Term Loan	1/21/2026	12.00%			4.00%		12/31/2030			12,130		12,130		10,240		0.3	%
		Class A Preferred Units of Redstone Holdco 1 LP	1/21/2026						N/A	624,063				624		374		—	%	(14)
		Class B Preferred Units of Redstone Holdco 1 LP	1/21/2026						N/A	1,872,188				1,872		395		—	%	(14)
		Class B Common Units of Redstone Holdco 1 LP	1/21/2026						N/A	90,837				4		—		—	%	(14)
														20,630		16,759		0.6	%
Research Now Group, LLC and Dynata, LLC	IT Services	First Lien Second Out Term Loan	7/15/2024	9.40%	3M SOFR	5.50%		1.00	10/15/2028			7,914		7,914		7,118		0.2	%	(8)(44)
		Common Stock of New Insight Holdings, Inc.	7/15/2024						N/A	210,781				3,329		—		—	%	(14)
		Warrants of New Insight Holdings, Inc.	7/15/2024						7/15/2029	285,714				—		—		—	%	(14)
														11,243		7,118		0.2	%
Rising Tide Holdings, Inc.	Specialty Retail	First In Last Out Term Loan	9/19/2025	30.00%			30.00%	—	5/1/2027			651		651		651		0.1	%	(36)(44)
		First In Last Out Term Loan	9/19/2025	32.48%	1M SOFR	8.75%	20.00%	2.00	5/1/2027			810		810		810		—	%	(8)(36)(44)
		First Lien First Out Term Loan	9/25/2024	15.00%			15.00%	—	6/13/2028			2,737		2,737		2,601		0.1	%	(36)
		First Lien Second Out Term Loan	9/25/2024	12.00%			12.00%	—	6/13/2028			6,976		6,593		3,767		0.1	%	(36)(44)
		Class A Common Units of Marine One Holdco, LLC	9/12/2023						N/A	345,600				23,898		—		—	%	(14)
		Warrants of Marine One Holdco, LLC	9/25/2024						9/25/2044	3,456,000				—		—		—	%	(14)
		Warrants of Marine One Holdco, LLC	9/12/2023						9/12/2028	50,456				—		—		—	%	(14)
														34,689		7,829		0.3	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

The RK Logistics Group, Inc.	Commercial Services & Supplies	First Lien Term Loan	3/24/2022	14.49%	3M SOFR	10.50%		1.00	12/18/2028			$	5,570	$	5,570	$	5,570	0.2	%	(3)(8)
		First Lien Term Loan	12/19/2023	11.50%	3M SOFR	7.50%		4.00	12/18/2028			32,919		32,919		32,919		1.1	%	(3)(8)
		Class A Common Units of RK Logistics Holdings Inc.	3/24/2022						N/A	263,000				263		2,725		0.1	%
		Class B Common Units of RK Logistics Holdings Inc.	3/24/2022						N/A	1,435,000				2,487		14,869		0.5	%	(43)
		Class C Common Units of RK Logistics Holdings Inc.	6/28/2024						N/A	450,000				2,250		4,663		0.2	%
														43,489		60,746		2.1	%
RME Group Holding Company	Media	First Lien Term Loan A	5/4/2017	9.48%	3M SOFR	5.50%	0.00%	1.00	5/6/2027			17,419		17,419		17,253		0.6	%	(8)
		First Lien Term Loan B	5/4/2017	14.98%	3M SOFR	11.00%	0.00%	1.00	5/6/2027			19,983		19,983		18,852		0.6	%	(8)
														37,402		36,105		1.2	%
Rosa Mexicano	Hotels, Restaurants & Leisure	First Lien Revolving Line of Credit	3/29/2018	16.25%					12/31/2027		7,515	7,515		7,515		7,248		0.2	%	(13)
		First Lien Term Loan	3/29/2018	11.49%	3M SOFR	7.50%		1.25	12/31/2027			23,166		23,166		20,849		0.7	%	(8)
														30,681		28,097		0.9	%
Safety Solutions Financing, LLC	Construction & Engineering	First Lien Term Loan	5/1/2026	10.49%	3M SOFR	6.50%		3.00	5/1/2031			19,252		19,252		19,252		0.7	%	(3)(8)
		Series A Preferred Units of BFC-SDR, LLC	5/1/2026	8.00%		8.00%	8.00%		N/A	1,885,714		—		3,300		3,300		0.1	%	(14)(22)
		Series B Preferred Units of BFC-SDR, LLC	5/1/2026	8.00%		8.00%	8.00%		N/A	43				43		43		—	%	(22)
														22,595		22,595		0.8	%
ShiftKey, LLC	Health Care Technology	First Lien Term Loan	6/21/2022	10.24%	3M SOFR	5.75%	0.50%	1.00	6/21/2027			59,660		59,551		57,249		2.0	%	(3)(8)(36)
														59,551		57,249		2.0	%
Shoes West, LLC (d/b/a Taos Footwear) (27)	Textiles, Apparel & Luxury Goods	First Lien Term Loan A	1/23/2025	10.99%	3M SOFR	7.00%		3.00	1/23/2030			37,869		37,869		37,869		1.3	%	(3)(8)(43)
		First Lien Convertible Term Loan B	1/23/2025	11.00%			2.00%		1/23/2030			9,654		9,654		18,034		0.6	%	(3)(36)(43)
		Class A Preferred Units of Taos Footwear Holdings, LLC	1/23/2025	8.00%			8.00%		2/28/2030	16,753				19,109		50,714		1.7	%	(36)
														66,632		106,617		3.6	%
Silver Hill Mineral Lease	Energy Equipment & Services	Revenue Interest	5/13/2025		0.00%	0.00%	0.00%		N/A					—		—		—	%	(11)(14)
														—		—		—	%
Spectrum Vision Holdings, LLC	Health Care Providers & Services	First Lien Term Loan	5/2/2023	10.43%	3M SOFR	6.50%	0.00%	1.00	11/17/2026			29,026		29,026		29,026		1.0	%	(3)(8)
														29,026		29,026		1.0	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

STG Distribution, LLC	Air Freight & Logistics	First Out Term Loan	10/3/2024	12.08%	3M SOFR	8.25%	0.00%	1.50	10/3/2029			$	6,076	$	5,909	$	6,076	0.1	%	(8)(36)
		Second Out Term Loan	10/3/2024	11.33%	3M SOFR	1.00%	6.50%	1.50	10/3/2029			39,514		38,194		17,017		0.6	%	(7)(8)(44)
		Third Out Term Loan	10/3/2024	10.83%	3M SOFR	1.00%	6.00%	1.50	10/3/2029			20,063		18,604		—		—	%	(7)(8)(44)
		First Lien First Out DIP Roll Up	1/14/2026	8.00%			8.00%		7/13/2026			10,090		10,090		1,542		0.1	%	(44)
		First Lien Second Out DIP Roll Up	1/14/2026	8.00%			8.00%		7/13/2026			899		868		—		—	%	(7)(44)
		First Lien DIP Term Loan	1/14/2026	8.00%			8.00%		7/13/2026			10,709		10,574		10,709		0.4	%
														84,239		35,344		1.2	%
Stryker Energy, LLC	Energy Equipment & Services	Overriding Royalty Interest	12/4/2006		0.00%	0.00%	0.00%		N/A					—		—		—	%	(11)
														—		—		—	%
Town & Country Holdings, Inc.	Distributors	First Lien Term Loan	11/17/2022	8.00%				—	8/29/2028			28,761		28,346		29,451		0.9	%
		First Lien Term Loan	1/26/2018	8.00%			5.00%	—	8/29/2028			42,136		42,136		43,147		1.5	%
		First Lien Term Loan	1/26/2018	8.00%					8/29/2028			164,931		164,931		168,889		5.8	%
		Class B of Town & Country TopCo LLC	11/17/2022						N/A	999				50,882		14,710		0.5	%	(14)(43)
														286,295		256,197		8.7	%
TPS, LLC	Machinery	First Lien Term Loan	11/30/2020	14.00%	3M SOFR	9.00%	0.00%	5.00	5/31/2027			13,608		13,608		13,608		0.5	%	(3)(8)
														13,608		13,608		0.5	%
United Sporting Companies, Inc. (16)	Distributors	Second Lien Term Loan	9/28/2012	13.00%	1M LIBOR	11.00%	2.00%	—	11/16/2019			182,784		8,351		7,416		0.3	%	(7)
														8,351		7,416		0.3	%
Upstream Holdco, Inc.	Health Care Providers & Services	Second Lien Term Loan	11/20/2019	13.27%	3M SOFR	9.50%	13.27%	—	5/20/2030			23,503		23,459		18,859		0.7	%	(8)(36)
		Second Lien Term Loan	12/18/2025	12.67%	3M SOFR	9.00%	12.67%	—	5/20/2030			7,226		7,226		7,226		0.2	%	(8)(36)
														30,685		26,085		0.9	%
USG Intermediate, LLC	Leisure Products	First Lien Term Loan B	4/15/2015	15.49%	1M SOFR	11.75%		1.00	2/9/2029			70,188		70,188		70,188		2.4	%	(3)(8)
		Equity	4/15/2015						N/A					1		—		—	%	(14)
														70,189		70,188		2.4	%
Verify Diagnostics LLC	Health Care Providers & Services	First Lien Term Loan	5/15/2025	13.96%	3M SOFR	10.23%		3.50	5/15/2030			36,749		36,749		36,749		1.2	%	(3)(8)(44)
		Class A Preferred Units of Verify Diagnostic Holdings LLC	5/15/2025	12.00%			12.00%		N/A	9,250,000				9,250		22,050		0.8	%	(14)
														45,999		58,799		2.0	%
Voya CLO 2012-4, Ltd.	Structured Finance	Subordinated Structured Note	11/5/2012	0.00%	Yield	0.00%	0.00%	—	10/15/2030			40,613		—		—		—	%	(5)(12)(15)
														—		—		—	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026


										June 30, 2026
Portfolio Company	Industry	Investments(1)(35)	Acquisition Date (39)	All-in Rate	Ref. Rate	Spread	PIK (49)	Floor	Legal Maturity	Shares/Unites	Commitment	Principal Value		Amortized Cost		Fair Value (2)		% of Net Assets

Non-Control/Non-Affiliate Investments (less than 5.00% voting control)

WatchGuard Technologies, Inc.	IT Services	First Lien Term Loan	8/17/2022	8.89%	1M SOFR	5.25%	0.00%	0.75	6/30/2029			$	33,688	$	33,688	$	33,688	1.2	%	(3)(8)
														33,688		33,688		1.2	%
Wellful Inc.	Food Products	Second Out First Lien Term Loan	11/27/2024	10.24%	3M SOFR	6.25%	0.00%	1.00	10/19/2030			18,457		18,457		14,877		0.5	%	(8)(36)(44)
														18,457		14,877		0.5	%
Total Non-Control/Non-Affiliate Investments														$	2,934,916	$	2,667,837	91.1	%

Total Portfolio Investments (Level 3)														$	6,315,369	$	6,342,558	216.5	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

(3)Security, or a portion thereof, is held by Prospect Capital Funding LLC (“PCF”), our wholly owned subsidiary and a bankruptcy remote special purpose entity, and is pledged as collateral for the Revolving Credit Facility and such security is not available as collateral to our general creditors (see Note 4). The fair value of the investments held by PCF at June 30, 2026 was $2,155,016, representing 34.0% of our total investments.

(4)Medical Solutions Holdings, Inc. and Medical Solutions, LLC are joint borrowers on the Second Lien Term Loan.

(6)Discovery Point Retreat, LLC, Discovery MSO LLC, Eating Disorder Solutions of Texas LLC, Discovery Point Retreat Waxahachie, LLC are joint borrowers on the First Lien Term Loan.

(7)Investment on non-accrual status as of the reporting date (see Note 2).

(8)Certain variable rate securities in our portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. The 1-Month Secured Overnight Financing Rate or “1M SOFR”, was 3.65% as of June 30, 2026. The 3-Month Secured Overnight Financing Rate or “3M SOFR”, was 3.73% as of June 30, 2026. The impact of a Secured Overnight Financing Rate (“SOFR”) credit spread adjustment, if applicable, is included within the stated all-in interest rate.

(9)PeopleConnect Holdings, Inc. and Pubrec Holdings, Inc. are joint borrowers.

(11)Represents overriding royalty interests or revenue interests held which receive payments at the stated rates based upon the underlying operations.

(12)Investment has been designated as an investment not “qualifying” under Section 55(a) of the Investment Company Act of 1940 (the “1940 Act”). Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets as calculated in accordance with regulatory requirements. As of June 30, 2026, our qualifying assets, as a percentage of total assets, stood at 81.94%. We monitor the status of these assets on an ongoing basis.

(13)Undrawn committed revolvers and delayed draw term loans to our portfolio companies incur commitment and unused fees ranging from 0.00% to 3.00%. As of June 30, 2026, $64,611 of undrawn revolver and delayed draw term loan commitments to our portfolio companies, of which $52,446 are considered at the Company’s sole discretion.

(14)Represents non-income producing security that has not paid a dividend or other income in the year preceding the reporting date.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

investment. Distributions, once received, will be recognized as return of capital, and when called, any remaining unamortized investment costs will be written off if the actual distributions are less than the amortized investment cost. To the extent that the cost basis of the SSN is fully recovered, any future distributions will be recorded as realized gains.

(17)As of June 30, 2026, Prospect owns a 95.4% equity interest in QC Holdings TopCo, LLC (“QC Holdings”), representing a controlling beneficial interest in QC Holdings per the 1940 Act. QC Holdings specializes in consumer-focused alternative financial services and credit solutions.

(18)CP Holdings of Delaware LLC (“CP Holdings”), a consolidated entity in which we own 100% of the membership interests, owns 99.8% of CP Energy Services Inc. (“CP Energy”) as of June 30, 2026. CP Energy owns directly or indirectly 100% of each of CP Well Testing, LLC; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. We report CP Energy as a separate controlled company. In June 2019, CP Energy purchased a controlling interest in the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $61,429 in first lien term loans (the “Spartan Term Loans”) due to us as of June 30, 2026. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, our Spartan Term Loans are presented as control investments under CP Energy. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loans. In September 2020, we made a new $26,193 Series A preferred stock investment in Spartan Energy Holdings, Inc., which equates to 100% of the Series A non-voting redeemable preferred stock outstanding.

(19)Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”), a consolidated entity in which we own 100% of the membership interests, owns 99.8% of Credit Central Loan Company, LLC (f/k/a Credit Central Holdings, LLC (“Credit Central”)) as of June 30, 2026. Credit Central owns 100% of each of Credit Central, LLC; Credit Central South, LLC; Credit Central of Texas, LLC; and Credit Central of Tennessee, LLC, the operating companies. We report Credit Central as a separate controlled company.

(22)Equity is held through Energy Solutions Holdings Inc., a consolidated entity in which we own 100% of the equity.

(23)MITY Holdings of Delaware Inc. (“MITY Delaware”), a consolidated entity in which we own 100% of the common stock, owns 100% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“MITY-Lite”); Broda Enterprises USA, Inc.; and Broda Enterprises ULC (“Broda Canada”). We report MITY as a separate controlled company. Our subordinated unsecured note issued and outstanding to Broda Canada is denominated in Canadian Dollars (“CAD”). As of June 30, 2026, the principal balance of this note was CAD 7,371. In accordance with ASC 830, Foreign Currency Matters (“ASC 830”), this note was remeasured into our functional currency, US Dollars (USD), and is presented on our Consolidated Schedule of Investments in USD. We formed a separate legal entity domiciled in the United States, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 100% of the equity. MITY FSC does not have material operations. This entity earns commission payments from MITY-Lite based on its sales to foreign customers, and distributes it to its shareholder.

(24)NPH Property Holdings, LLC (“NPH”), a consolidated entity in which we own 100% of the membership interests, owns 100% of the common equity of National Property REIT Corp. (“NPRC”) (f/k/a National Property Holdings Corp.), a property REIT which holds investments in several real estate properties. We report NPRC as a separate controlled company. See Note 3 for further discussion of the investments held by NPRC. On June 29, 2026, the National Property REIT Corp. loan

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

agreement was amended, effective July 1, 2026, to (i) extend the maturity date of the First Lien Term Loan facility to March 31, 2030, (ii) combine the First Lien Term Loan D and First Lien Term Loan E into the First Lien Term Loan A, and (iii) amend the interest rate on the combined First Lien Term Loan A to 3M SOFR plus 0.25%, subject to a 3.50% floor and a maximum SOFR of 3.75%, with no PIK interest.

(25)Nationwide Acceptance Holdings LLC (“Nationwide Holdings”), a consolidated entity in which we own 100% of the membership interests, owns 94.22% of Nationwide Loan Company LLC, the operating company, as of June 30, 2026. We report Nationwide Loan Company LLC as a separate controlled company. Prospect has a first priority security interest in the assets of Nationwide.

(26)NMMB Holdings, Inc. (“NMMB Holdings”), a consolidated entity in which we own 100% of the equity, owns 92.77% of the fully diluted equity of NMMB, Inc. (“NMMB”) as of June 30, 2026. NMMB owns 100% of Refuel Agency, Inc., which owns 100% of Armed Forces Communications, Inc. We report NMMB as a separate controlled company.

(27)Shoes West, LLC and Shoes West Distribution, LLC are joint borrowers on the First Lien Term Loan A and First Lien Convertible Term Loan B.

(28)Prospect owns 99.96% of the equity of Strategic Chemical Solutions Corp. (effective October 21, 2025 f/k/a USES Corp.) as of June 30, 2026.

(29)Valley Electric Holdings I, Inc., a consolidated entity in which we own 100% of the common stock, owns 100% of Valley Electric Holdings II, Inc. (“Valley Holdings II”), another consolidated entity. Valley Holdings II owns 94.99% of Valley Electric Company, Inc. (“Valley Electric”). Valley Electric owns 100% of the equity of VE Company, Inc., which owns 100% of the equity of Valley Electric Co. of Mt. Vernon, Inc. We report Valley Electric as a separate controlled company. On July 1, 2026, subsequent to this Consolidated Scheduled of Investments dated June 30, 2026, we closed on the sale of our equity interest in Valley Electric and concurrently received full repayment on our debt investments.

(30)As of June 30, 2026, Prospect owns 8.57% of the equity in Encinitas Watches Holdco, LLC, the parent company of Nixon, Inc.

(31)Japs-Olson Company, LLC, Alpha Mail Debt Merger Sub, LLC and J-O Building Company LLC are joint borrowers on the First Lien Term Loan.

(33)As of June 30, 2026, the residual profit interest includes 8.33% of TLA, TLD and TLE residual profit calculated quarterly in arrears. The investments in TLA and TLD are subject to a maximum SOFR of 4.00%.

(34)Prospect owns 100% of the preferred equity of Pacific World Corporation (“Pacific World”), which represents a 99.99% ownership interest of Pacific World as of June 30, 2026. As a result, Prospect’s investment in Pacific World is classified as a control investment.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

(35)The following shows the composition of our investment portfolio at amortized cost by control designation, investment type and by industry as of June 30, 2026:


Industry	1st Lien		2nd Lien		Subordinated Structured Notes		Unsecured Debt		Equity (B)		Cost Total
Control Investments
Aerospace & Defense	$	54,780	$	—	$	—	$	—	$	38,679	$	93,459
Commercial Services & Supplies	87,424		—		—		7,200		28,773		123,397
Construction & Engineering	83,859		—		—		—		12,053		95,912
Consumer Finance	564,568		61,802		—		—		134,222		760,592
Distributors	10,650		—		—		—		2,000		12,650
Diversified Consumer Services	700		—		—		—		2,378		3,078
Energy Equipment & Services	169,468		—		—		—		175,658		345,126
Residential Real Estate Investment Trusts (REITs)	876,859		—		—		—		20,030		896,889
Health Care Providers & Services	384,823		—		—		—		45,118		429,941
Household Durables	96,357		—		—		—		3,400		99,757
Machinery	61,322		—		—		—		6,866		68,188
Marine Transport	—		—		—		—		47,967		47,967
Media	29,723		—		—		—		—		29,723

Personal Care Products	122,445		—		—		—		238,494		360,939
Trading Companies & Distributors	—		—		—		—		—		—

Total Control Investments	$	2,542,978	$	61,802	$	—	$	7,200	$	755,638	$	3,367,618
Affiliate Investments
Commercial Services & Supplies	$	—	$	—	$	—	$	—	$	12,835	$	12,835

Textiles, Apparel & Luxury Goods	—		—		—		—		—		—
Total Affiliate Investments	$	—	$	—	$	—	$	—	$	12,835	$	12,835
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	121,447	$	95,000	$	—	$	—	$	—	$	216,447
Automobile Components	33,512		67,000		—		—		25,802		126,314


Commercial Services & Supplies	147,365		153,400		—		—		5,000		305,765

Construction & Engineering	19,252		—		—		—		3,343		22,595

Distributors	310,501		8,351		—		—		59,328		378,180
Diversified Consumer Services	103,214		—		—		—		—		103,214

Diversified Telecommunication Services	186,687		59,071		—		—		—		245,758



Financial Services	77,832		—		—		—		—		77,832

Food Products	18,457		69,063		—		—		—		87,520

Health Care Providers & Services	207,226		85,129		—		—		54,621		346,976
Health Care Technology	126,176		—		—		—		—		126,176
Hotels, Restaurants & Leisure	30,681		—		—		—		—		30,681



Interactive Media & Services	87,850		—		—		—		—		87,850

IT Services	51,818		19,690		—		—		2,500		74,008
Leisure Products	70,188		—		—		—		1		70,189
Machinery	13,608		—		—		—		—		13,608
Media	86,205		—		—		—		—		86,205


Personal Care Products	10,577		—		—		—		2,111		12,688
Pharmaceuticals	122,789		—		—		—		—		122,789
Professional Services	80,377		—		—		—		13,779		94,156

Software	47,982		136,006		—		—		—		183,988
Specialty Retail	10,791		—		—		—		23,898		34,689

Textiles, Apparel & Luxury Goods	66,071		—		—		—		19,109		85,180


Structured Finance(A)	—		—		2,108		—		—		2,108
Total Non-Control/Non-Affiliate	$	2,030,606	$	692,710	$	2,108	$	—	$	209,492	$	2,934,916
Total Portfolio Investment Cost	$	4,573,584	$	754,512	$	2,108	$	7,200	$	977,965	$	6,315,369

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

The following table shows the composition of our investment portfolio at fair value by control designation, investment type and by industry as of June 30, 2026:


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Control Investments
Aerospace & Defense	$	54,780		$	—		$	—		$	—		$	69,479		$	124,259		4.2	%
Commercial Services & Supplies	74,837			—			—			5,195			11,779			91,811			3.2	%
Construction & Engineering	83,859			—			—			—			209,995			293,854			10.1	%
Consumer Finance	527,813			61,802			—			—			559,538			1,149,153			39.2	%
Distributors	6,710			—			—			—			—			6,710			0.2	%
Diversified Consumer Services	700			—			—			—			3,128			3,828			0.1	%
Energy Equipment & Services	141,279			—			—			—			—			141,279			4.8	%
Residential Real Estate Investment Trusts (REITs)	876,859			—			—			—			204,737			1,081,596			36.9	%
Health Care Providers & Services	340,451			—			—			—			—			340,451			11.7	%
Household Durables	96,357			—			—			—			12,208			108,565			3.7	%
Machinery	61,322			—			—			—			37,153			98,475			3.4	%
Marine Transport	—			—			—			—			12,077			12,077			0.4	%
Media	29,723			—			—			—			50,081			79,804			2.7	%
Personal Care Products	112,412			—			—			—			—			112,412			3.8	%
Trading Companies & Distributors	—			—			—			—			—			—			—	%
Structured Finance(A)	—			—			—			—			—			—			—	%
Total Control Investments	$	2,407,102		$	61,802		$	—		$	5,195		$	1,170,175		$	3,644,274		124.4	%
Fair Value % of Net Assets	82.1		%	2.1		%	—		%	0.2		%	40.0		%	124.4		%	—
Affiliate Investments
Commercial Services & Supplies	$	—		$	—		$	—		$	—		$	30,447		$	30,447		1.0	%

Textiles, Apparel & Luxury Goods	—			—			—			—			—			—			—	%
Total Affiliate Investments	$	—		$	—		$	—		$	—		$	30,447		$	30,447		1.0	%
Fair Value % of Net Assets	—		%	—		%	—		%	—		%	1.0		%	1.0		%
Non-Control/Non-Affiliate Investments
Air Freight & Logistics	$	72,633		$	95,000		$	—		$	—		$	—		$	167,633		5.7	%
Automobile Components	1,192			28,578			—			—			439			30,209			1.0	%
Building Products	—			—			—			—			—			—			(0.1)	%

Commercial Services & Supplies	147,877			153,500			—			—			22,257			323,634			11.2	%

Construction & Engineering	19,252			—			—			—			3,343			22,595			0.8	%

Distributors	316,707			7,416			—			—			23,796			347,919			11.9	%
Diversified Consumer Services	9,611			—			—			—			—			9,611			0.3	%

Diversified Telecommunication Services	182,006			8,429			—			—			—			190,435			6.5	%



Financial Services	77,832			—			—			—			—			77,832			2.6	%

Food Products	14,877			69,380			—			—			—			84,257			2.9	%

Health Care Providers & Services	219,882			47,487			—			—			150,868			418,237			14.3	%
Health Care Technology	123,898			—			—			—			—			123,898			4.3	%
Hotels, Restaurants & Leisure	28,097			—			—			—			—			28,097			1.0	%



Interactive Media & Services	87,850			—			—			—			—			87,850			3.0	%
IT Services	49,678			7,126			—			—			769			57,573			2.0	%
Leisure Products	70,188			—			—			—			—			70,188			2.4	%
Machinery	13,608			—			—			—			—			13,608			0.5	%
Media	84,908			—			—			—			—			84,908			2.9	%
Personal Care Products	10,577			—			—			—			1,028			11,605			0.4	%
Pharmaceuticals	141,316			—			—			—			—			141,316			4.8	%
Professional Services	79,581			—			—			—			12,591			92,172			3.1	%
Software	47,982			100,490			—			—			—			148,472			5.0	%
Specialty Retail	7,829			—			—			—			—			7,829			0.3	%

Textiles, Apparel & Luxury Goods	74,451			—			—			—			50,714			125,165			4.2	%
Structured Finance (A)	—			—			2,794			—			—			2,794			0.1	%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)


Industry	1st Lien Term Loan			2nd Lien Term Loan			Subordinated Structured Notes			Unsecured Debt			Equity (B)			Fair Value Total			Fair Value % of Net Assets Applicable to Common Stock
Total Non-Control/Non-Affiliate	$	1,881,832		$	517,406		$	2,794		$	—		$	265,805		$	2,667,837		91.1	%
Fair Value % of Net Assets	64.3%			17.7%			0.1%			—%			9.1%			91.1%
Total Portfolio	$	4,288,934		$	579,208		$	2,794		$	5,195		$	1,466,427		$	6,342,558		216.5%
Fair Value % of Net Assets	146.4		%	19.8		%	0.1		%	0.2		%	50.1		%	216.5		%

(A) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

The following table provides additional details on these PIK investments, including the maximum annual PIK interest rate allowed under the existing credit agreements, as of June 30, 2026:


Security Name	PIK Rate - Capitalized	PIK Rate - Paid as cash	Maximum Current PIK Rate
Aventiv Technologies, LLC - Third Out Super Priority First Lien Term Loan	9.08%	—%	9.08%	(A)
Aventiv Technologies, LLC - Second Out Super Priority First Lien Term Loan	11.49%	—%	11.49%	(A)
Belnick, LLC (d/b/a The Ubique Group) - First Lien Term Loan	12.50%	—%	12.50%	(B)
CP Energy Services Inc. - First Lien Term Loan	12.99%	—%	12.99%
CP Energy Services Inc. - First Lien Term Loan	5.54%	7.45%	12.99%
CP Energy Services Inc. - First Lien Term Loan	—%	12.99%	12.99%
CP Energy Services Inc. - First Lien Term Loan	12.99%	—%	12.99%
CP Energy Services Inc. - First Lien Term Loan A to Spartan Energy Services, LLC	—%	11.99%	11.99%	(C)
CP Energy Services Inc. - Incremental First Lien Term Loan A to Spartan Energy Services, LLC	—%	11.99%	11.99%	(C)
Discovery Point Retreat, LLC - First Lien Delayed Draw Term Loan	—%	—%	5.00%
Druid City Infusion, LLC - First Lien Convertible Note to Druid City Intermediate, Inc.	2.00%	—%	2.00%
First Tower Finance Company LLC - First Lien Term Loan	—%	16.00%	16.00%	(D)
Help/Systems Holdings, Inc. (d/b/a Forta, LLC) - Second Lien Term Loan	9.00%	—%	9.00%
InterDent, Inc. - First Lien Term Loan B	7.00%	—%	7.00%
InterDent, Inc. - First Lien Delayed Draw Term Loan B	7.00%	—%	7.00%
Lucky US BuyerCo LLC - First Lien Revolving Line of Credit	2.00%	—%	2.00%
Lucky US BuyerCo LLC - First Lien Term Loan	2.00%	—%	2.00%
MITY, Inc. - First Lien Term Loan B	—%	10.00%	10.00%
National Property REIT Corp. - First Lien Term Loan A	—%	2.00%	2.00%
National Property REIT Corp. - First Lien Term Loan D	—%	2.00%	2.00%
National Property REIT Corp. - First Lien Term Loan E	—%	7.00%	7.00%
Nationwide Loan Company LLC - First Lien Delayed Draw Term Loan A	10.00%	—%	10.00%	(E)
Nationwide Loan Company LLC - First Lien Delayed Draw Term Loan B	10.00%	—%	10.00%	(E)
New WPCC Parent, LLC - First Lien Term Loan	—%	8.00%	8.00%
New WPCC Parent, LLC - Series A Preferred Interests	13.00%	—%	13.00%
Pacific World Corporation - First Lien Term Loan A	6.60%	1.30%	7.90%
QC Holdings TopCo, LLC - Second Lien Term Loan	—%	14.00%	14.00%	(F)
QC Holdings TopCo, LLC - Second Lien Delayed Draw Term Loan	—%	14.00%	14.00%	(F)
Recovery Solutions Parent, LLC - First Lien Term Loan	—%	5.00%	5.00%
Redstone Holdco 2 LP - First Lien Third Out Term Loan	12.00%	—%	12.00%
Rising Tide Holdings, Inc. - First In Last Out Term Loan	30.00%	—%	30.00%	(G)
Rising Tide Holdings, Inc. - First In Last Out Term Loan	20.00%	—%	20.00%	(G)
Rising Tide Holdings, Inc. - First Lien First Out Term Loan	15.00%	—%	15.00%
Rising Tide Holdings, Inc. - First Lien Second Out Term Loan	12.00%	—%	12.00%
Safety Solutions Financing, LLC - Series B Preferred Units of BFC-SDR, LLC	8.00%	—%	8.00%
ShiftKey, LLC - First Lien Term Loan	0.50%	—%	0.50%
Shoes West, LLC (d/b/a Taos Footwear) - First Lien Convertible Term Loan B	2.00%	—%	2.00%
Shoes West, LLC (d/b/a Taos Footwear) - Class A Preferred Units of Taos Footwear Holdings, LLC	8.00%	—%	8.00%
STG Distribution, LLC - First Lien First Out DIP Roll Up	8.00%	—%	8.00%
STG Distribution, LLC - First Lien DIP Term Loan	8.00%	—%	8.00%
STG Distribution, LLC - First Out Term Loan	—%	—%	7.25%
Strategic Chemical Solutions Corp. (f/k/a USES Corp.) - First Lien Equipment Term Loan	9.43%	3.47%	12.90%	(H)


Town & Country Holdings, Inc. - First Lien Term Loan	—%	5.00%	5.00%
Universal Turbine Parts, LLC - Preferred A Units	12.75%	—%	12.75%

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)


Upstream Holdco, Inc. - Second Lien Term Loan	13.27%	—%	13.27%
Upstream Holdco, Inc. - Second Lien Term Loan	12.67%	—%	12.67%
Valley Electric Company, Inc. - First Lien Term Loan to Valley Electric Co. of Mt. Vernon, Inc.	—%	2.50%	2.50%
Valley Electric Company, Inc. - First Lien Term Loan	—%	10.00%	10.00%
Valley Electric Company, Inc. - First Lien Term Loan B	—%	5.50%	5.50%
Victor Technology, LLC - First Lien Term Loan	—%	11.49%	11.49%	(I)
Wellful Inc. - Second Out First Lien Term Loan	—%	10.24%	10.24%

(A) On December 29, 2023, the Aventiv Technologies, LLC Second Out Super Priority First Lien Term Loan was amended to allow a portion of interest accruing in cash to be payable in kind. On March 28, 2025, the Aventiv Technologies, LLC Third Out Super Priority First Lien Term Loan was amended to allow a portion of interest accruing in cash to be payable in kind.

(B) On May 13, 2025, the Belnick, LLC First Lien Term Loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 12.50%.

(C) On August 22, 2022, the Spartan Energy Services, LLC Twenty-Fifth Amendment to Amended and Restated Senior Secured Loan Agreement was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 11.99%.

(D) On December 30, 2025, the First Tower Finance Company LLC Amendment No. 16 was amended to reduce the PIK rate to 5.00% and allow the interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 16.00%.

(E) The Nationwide Loan Company LLC Delayed Draw Term Loan agreement allows for a portion of interest accruing in cash to be payable in kind.

(F) The Amended QC Holdings TopCo, LLC Senior Secured Term Loan Agreement dated September 30, 2025, allows for a portion of interest accruing in cash to be payable in kind.

(G) The Rising Tide Holdings, Inc. Amended and Restated ABL Credit Agreement allows for all or a portion of interest to be payable in kind.

(H) On March 28, 2023, the Strategic Chemical Solutions Corp. (f/k/a USES Corp.) First Lien Equipment Term loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 12.90%.

(I) On May 1, 2026, the Victor Technology, LLC First Lien Term Loan was amended to allow interest accruing in cash to be payable in kind resulting in a maximum current PIK rate of 11.49%.

(37)As defined in the 1940 Act, we are deemed to “Control” these portfolio companies because we own more than 25% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2026, with these controlled investments were as follows:


Controlled Companies	Fair Value at June 30, 2025		Gross Additions (Cost)(A)		Gross Reductions (Cost)(B)		Net unrealized gains (losses)		Fair Value at June 30, 2026			Interest income		Dividend income		Other income		Net realized gains (losses)
Belnick, LLC (d/b/a The Ubique Group)	$	51,166	$	11,505	$	—	$	45,894	$	108,565		$	11,508	$	—	$	50	$	—
CP Energy Services Inc.	85,359		10,853		—		(13,389)		82,823			13,355		—		—		—
CP Energy - Spartan Energy Services, LLC	36,830		9,952		—		11,674		58,456			6,898		—		—		—
Credit Central Loan Company, LLC	78,736		2,714		—		(24,913)		56,537			6,355		—		—		—
Echelon Transportation, LLC	65,653		—		(110,320)		44,667		—			1,297		—		—		(52,334)
First Tower Finance Company LLC	760,518		10,959		(2,867)		192,168		960,778			71,975		—		328		—
Freedom Marine Solutions, LLC	11,660		850		—		(433)		12,077			—		—		—		—
InterDent, Inc.	338,781		35,916		—		(34,246)		340,451			42,685		—		—		—
Kickapoo Ranch Pet Resort	3,917		—		—		(89)		3,828			81		—		—		—
MITY, Inc.	94,418		7,123		—		(19,105)		82,436			9,590		—		178		19
National Property REIT Corp.	1,300,972		47,564		(73,323)		(193,617)		1,081,596			60,395		—		—		—
Nationwide Loan Company LLC	36,780		1,049		—		(6,097)		31,732			1,049		—		—		—
NMMB, Inc.	72,207		—		—		7,597		79,804			3,820		2,112		—		2,108
Pacific World Corporation	107,970		24,826		—		(20,384)		112,412			9,775		—		418		—
QC Holdings TopCo, LLC	77,286		6,805		—		16,015		100,106			13,767		—		—		—
R-V Industries, Inc.	105,577		14,000		—		(21,102)		98,475			6,333		13,288		—		—
Strategic Chemical Solutions Corp. (f/k/a USES Corp.)	14,518		1,405		(66,219)		59,671		9,375			2,826		—		6		(66,219)
Universal Turbine Parts, LLC	102,728		6,179		(248)		15,600		124,259			6,043		6,179		—		—
Valley Electric Company, Inc.	351,291		—		—		(57,437)		293,854			12,538		10,924		666		—
Victor Technology, LLC (C)	—		12,950		(300)		(5,940)		6,710		(C)	619		—		13		—
Total	$	3,696,367	$	204,650	$	(253,277)	$	(3,466)	$	3,644,274		$	280,909	$	32,503	$	1,659	$	(116,426)

(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, OID accretion and PIK interest, and any transfer of investments.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.

(38)As defined in the 1940 Act, we are deemed to be an “Affiliated company” of these portfolio companies because we own more than 5% of the portfolio company’s outstanding voting securities. Transactions during the year ended June 30, 2026 with these affiliated investments were as follows:


Affiliated Companies	Fair Value at June 30, 2025		Gross Additions (Cost)(A)		Gross Reductions (Cost)(B)		Net unrealized gains (losses)		Fair Value at June 30, 2026		Interest income		Dividend income		Other income		Net realized gains (losses)

Nixon, Inc.	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
RGIS Services, LLC	27,057		1,099		—		2,291		30,447		—		1,612		—		—
Total	$	27,057	$	1,099	$	—	$	2,291	$	30,447	$	—	$	1,612	$	—	$	—

(A) Gross additions include increases in the cost basis of the investments resulting from new portfolio investments, PIK interest, and any transfer of investments.

(B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investments repayments or sales, impairments, and any transfer of investments.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

(39)Acquisition date represents the date of PSEC’s initial investment. Follow-on acquisitions have occurred on the following dates to arrive at PSEC’s current investment as of June 30, 2026 (excluding effects of capitalized PIK interest, premium/original issue discount amortization/accretion, and partial repayments) (see endnote 40 for NPRC equity follow-on acquisitions):


Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Apidos CLO XV	Subordinated Structured Note	3/29/2018	$	6,480
Apidos CLO XXII	Subordinated Structured Note	2/24/2020	1,912
Atlantis Health Care Group (Puerto Rico), Inc.	First Lien Term Loan	12/9/2016	42,000
Aventiv Technologies, LLC	Second Out Super Priority First Lien Term Loan	6/28/2024	834
Aventiv Technologies, LLC	Super Priority Second Lien Term Loan	3/4/2025	595
Aventiv Technologies, LLC	Second Out Super Priority First Lien Term Loan	1/2/2025	105
Barings CLO 2018-III	Subordinated Structured Note	5/18/2018	9,255
BCPE North Star US Holdco 2, Inc.	Second Lien Term Loan	12/30/2021, 10/28/2022	70,133
BCPE Osprey Buyer, Inc.	First Lien Delayed Draw Term Loan	9/26/2023	4,639
Belnick, LLC	First Lien Term Loan	6/27/2022, 12/1/2023	18,000
Cent CLO 21 Limited	Subordinated Structured Note	7/12/2018	1,024
Collections Acquisition Company, Inc.	First Lien Term Loan	1/13/2022, 3/14/2024, 10/30/2025	25,850
CP Energy Services Inc.	First Lien Term Loan	8/31/2023	2,900
CP Energy Services Inc.	First Lien Delayed Draw Term Loan	3/25/2025, 6/24/2025, 9/25/2025, 3/30/2026, 6/24/2026	10,600
CP Energy Services Inc.	First Lien Term Loan A to Spartan Energy Services, LLC	4/9/2021, 1/10/2022, 2/10/2023, 6/7/2024, 11/13/2024, 1/9/2025, 3/25/2025, 6/24/2025, 9/25/2025, 12/17/2025, 2/25/2026, 6/24/2026	32,181
CP Energy Services Inc.	Common Stock	10/11/2013, 12/26/2013, 4/6/2018, 12/31/2019	69,586
Credit Central Loan Company, LLC	Class A Units	12/28/2012, 3/28/2014, 6/26/2014, 9/28/2016, 8/21/2019	11,975
Credit Central Loan Company, LLC	First Lien Term Loan	6/26/2014, 9/28/2016, 12/16/2022, 1/27/2023, 9/30/2025	48,310
Credit Central Loan Company, LLC	Preferred Class P Shares	1/27/2023	1,540
Discovery Point Retreat, LLC	First Lien Term Loan	5/9/2025	3,700
Discovery Point Retreat, LLC	Series A Preferred Stock	2/18/2026	750
DRI Holding, Inc.	First Lien Term Loan	4/26/2022, 7/21/2022	12,999
DRI Holding, Inc.	Second Lien Term Loan	5/18/2022	10,000
Druid City Infusion, LLC	First Lien Term Loan	3/6/2026	6,364
Echelon Transportation, LLC	Membership Interest	3/31/2014, 9/30/2014, 12/9/2016	22,488
Emerge Intermediate, Inc.	First Lien Term Loan	6/14/2024	1,467
Eze Castle Integration, Inc. (f/k/a/ H.I.G. ECI Merger Sub, Inc.)	First Lien Delayed Draw Term Loan	10/7/2022, 9/5/2023, 1/10/2025	2,576
First Brands Group	First Lien Term Loan	4/27/2022, 9/19/2025	8,880
First Brands Group	Second Lien Term Loan	5/12/2022	4,938
First Tower Finance Company LLC	Class A Units	12/30/2013, 6/24/2014, 12/15/2015, 11/21/2016, 3/9/2018	39,885
First Tower Finance Company LLC	First Lien Term Loan to First Tower, LLC	12/15/2015, 3/9/2018, 3/24/2022, 5/30/2025, 6/27/2025	60,548
Freedom Marine Solutions, LLC	Membership Interest	10/1/2009, 12/22/2009, 1/13/2010, 3/30/2010, 5/13/2010, 2/14/2011, 4/28/2011, 7/7/2011, 10/20/2011, 10/30/2015, 1/7/2016, 4/11/2016, 8/11/2016, 1/30/2017, 4/20/2017, 6/13/2017, 8/30/2017, 1/17/2018, 2/15/2018, 5/8/2018, 10/31/2018, 5/14/2021, 4/18/2022, 2/15/2023, 7/2/2024, 8/12/2025, 2/18/2026	43,943
Galaxy XV CLO, Ltd.	Subordinated Structured Note	8/21/2015, 3/10/2017	9,161
Galaxy XXVII CLO, Ltd.	Subordinated Structured Note	6/11/2015	1,460

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)


Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Help/Systems Holdings, Inc.	Second Lien Term Loan	5/11/2021, 10/14/2021	54,649
Imperative Worldwide, LLC (f/k/a MAGNATE WORLDWIDE, LLC)	First Lien Term Loan	10/26/2022, 6/1/2023, 9/30/2024	8,190
Interdent, Inc.	First Lien Term Loan A	2/11/2014, 4/21/2014, 11/25/2014, 12/23/2014, 7/14/2021, 3/28/2022	93,903
Interdent, Inc.	First Lien Term Loan B	2/11/2014, 4/21/2014, 11/25/2014, 12/23/2014	76,125
Interdent, Inc.	First Lien Delayed Draw Term Loan B	12/20/2024, 3/24/2025, 5/27/2025, 6/23/2025, 9/25/2025, 12/23/2025, 3/26/2026, 6/25/2026	32,000
K&N HoldCo, LLC	Class A Common Units	7/31/2024	105
Kickapoo Ranch Pet Resort	Membership Interest	10/21/2019, 12/4/2019	28
LCM XIV Ltd.	Subordinated Structured Note	9/25/2015, 5/18/2018	9,422
Lucky US BuyerCo LLC	First Lien Revolving Line of Credit	3/21/2024, 6/24/2024, 3/31/2025, 7/15/2025, 12/11/2025	2,520
MITY, Inc.	Common Stock	6/23/2014	7,200
MITY, Inc.	First Lien Term Loan A	1/17/2017, 3/23/2021, 2/14/2024, 3/15/2024, 5/15/2024, 9/16/2024, 12/3/2024, 4/4/2025, 10/29/2025, 1/26/2026, 3/20/2026	25,764
MITY, Inc.	First Lien Term Loan B	1/17/2017, 6/3/2019	11,000
MITY, Inc.	Series A Redeemable Preferred Stock	1/26/2026, 3/20/2026	720
Nationwide Loan Company LLC	Class A Units	3/28/2014, 6/18/2014, 9/30/2014, 6/29/2015, 3/31/2016, 8/31/2016, 5/31/2017, 10/31/2017	20,469
Nationwide Loan Company LLC	First Lien Delayed Draw Term Loan A	6/26/2024	2,250
Nationwide Loan Company LLC	First Lien Delayed Draw Term Loan B	3/6/2025	3,000
National Property REIT Corp.	First Lien Term Loan A	4/3/2020, 5/15/2020, 6/10/2020, 7/29/2020, 8/14/2020, 9/15/2020,10/15/2020, 10/30/2020, 11/10/2020, 11/13/2020, 11/19/2020, 12/11/2020, 1/27/2021, 2/25/2021, 3/11/2021, 5/14/2021, 6/14/2021, 6/25/2021, 8/16/2021, 11/15/2021, 11/26/2021, 12/1/2021, 12/28/2021, 1/14/2022, 2/15/2022, 3/17/2022, 3/28/2022, 4/1/2022, 4/7/2022, 5/24/2022, 6/6/2022, 7/5/2022, 8/31/2022, 10/6/2022, 1/10/2023, 2/28/2023, 4/4/2023, 4/6/2023, 4/28/2023, 6/9/2023, 6/14/2023, 7/5/2023, 7/14/2023, 8/31/2023, 9/29/2023, 10/4/2023, 10/20/2023, 11/30/2023, 1/3/2024, 1/18/2024, 2/29/2024, 3/8/2024, 4/2/2024, 5/31/2024, 7/8/2024, 8/30/2024, 10/10/2024, 12/02/2024, 1/6/2025, 1/8/2025, 3/20/2025, 4/3/2025, 5/15/2025, 7/3/2025, 8/18/2025, 3/11/2026, 5/7/2026, 5/18/2026	981,032
National Property REIT Corp.	First Lien Term Loan E	6/26/2024	35,300
New WPCC Parent, LLC	First Lien Term Loan	7/8/2025, 7/9/2025, 9/26/2025, 1/15/2026, 5/29/2026	12,158
New WPCC Parent, LLC	Series A Preferred Interests	9/4/2025, 9/11/2025, 9/12/2025, 11/14/2025, 12/17/2025, 2/6/2026, 2/11/2026	1,123
NEW WPCC PARENT, LLC.	Class A Common Interests	11/14/2025, 12/17/2025, 2/6/2026, 2/11/2026, 2/20/2026	67
NMMB, Inc.	First Lien Term Loan	12/30/2019, 3/28/2022	40,100
Octagon Investment Partners XV, Ltd.	Subordinated Structured Note	4/27/2015, 8/3/2015, 6/27/2017	10,516
Pacific World Corporation	Convertible Preferred Equity	4/3/2019, 4/29/2019, 6/3/2019, 10/4/2019, 11/12/2019, 12/20/2019, 1/7/2020, 3/5/2020, 12/30/2021, 1/26/2024, 7/31/2025, 8/15/2025, 9/12/2025, 12/19/2025, 3/26/2026, 4/10/2026	71,800
Pacific World Corporation	First Lien Term Loan A	12/22/2022, 11/25/2024, 3/7/2025	19,900
PeopleConnect Holdings, LLC	First Lien Term Loan	10/21/2021, 2/9/2026	116,229
(Precisely) Vision Solutions, Inc.	Second Lien Term Loan	5/28/2021, 6/24/2021, 6/3/2022	59,333
Preventics, Inc.	First Lien Term Loan 2	4/30/2025	1,900
Preventics, Inc.	Preferred Units	4/30/2025	38
Preventics, Inc.	Preferred Units	4/30/2025	527
QC Holdings TopCo, LLC	Second Lien Delayed Draw Term Loan	1/5/2026, 4/1/2026, 6/26/2026	5,099
Recovery Solutions Parent, LLC	First Lien Term Loan	6/27/2025, 7/8/2025, 1/15/2026, 1/21/2026	12,554

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)


Portfolio Company	Investment	Follow-On Acquisition Dates	Follow-On Acquisitions (Excluding initial investment cost)
Recovery Solutions Parent, LLC	Common Stock	5/30/2025, 9/4/2025, 9/5/2025, 9/11/2025, 9/15/2025, 9/25/2025, 11/21/2025, 2/18/2026	3,473
RGIS Services, LLC	Membership Interest	5/28/2024, 12/12/2025	2,532
RME Group Holdings Company	First Lien Term Loan B	12/29/2025	2,000
Rosa Mexicano	First Lien Revolving Line of Credit	3/27/2020, 10/13/2023, 2/7/2024, 5/17/2024, 8/12/2025, 11/3/2025, 4/1/2026	7,750
R-V Industries, Inc.	First Lien Term Loan	3/4/2022, 9/25/2023, 11/24/2025	17,700
R-V Industries, Inc.	Common Stock	12/27/2016	1,854
Shiftkey, LLC	First Lien Term Loan	8/26/2022, 9/14/2022, 9/23/2022	39,450
STG Distribution, LLC	First Lien DIP Term Loan	1/29/2026, 2/13/2026	2,925
The RK Logistics Group, Inc.	Class B Common Units	12/19/2023	1,250
The RK Logistics Group, Inc.	First Lien Term Loan	6/28/2024	13,000
Town & Country Holdings, Inc.	First Lien Term Loan	7/13/2018, 7/16/2018, 2/27/2024, 3/28/2024, 4/23/2024	115,000
Town & Country Holdings, Inc.	Class B of Town & Country TopCo LLC	10/18/2024, 12/27/2024, 1/10/2025, 5/7/2025, 7/11/2025, 10/1/2025, 1/7/2026, 3/20/2026, 4/1/2026	50,882
United Sporting Companies, Inc.	Second Lien Term Loan	3/7/2013, 3/14/2024	59,325
Universal Turbine Parts, LLC	First Lien Delayed Draw Term Loan	10/24/2019, 2/7/2020, 2/26/2020, 4/5/2021, 11/24/2023, 6/27/2025	6,716
USES Corp.	First Lien Term Loan A	6/15/2016, 6/29/2016, 2/22/2017, 4/27/2017, 5/4/2017, 8/30/2017, 10/11/2017, 12/11/2018, 8/30/2019	14,100
USES Corp.	First Lien Equipment Term Loan	6/23/2023, 7/3/2024, 11/6/2024, 1/9/2025	9,900
USG Intermediate, LLC	First Lien Term Loan B	8/24/2017, 7/30/2021, 2/9/2022, 8/17/2022, 5/12/2023, 12/20/2023, 2/21/2025	129,475

Valley Electric Company, Inc.	Common Stock	12/31/2012, 6/24/2014	18,502
Valley Electric Company, Inc.	First Lien Term Loan	6/30/2014, 8/31/2018, 3/28/2022	18,129
Valley Electric Company, Inc.	First Lien Term Loan B	5/1/2023	19,000


Fiscal Year	Follow-On Investments (NPRC Common Stock, excluding cost of initial investment)
2014	$	4,555
2015	68,693
2016	93,857
2017	116,830
2018	137,024
2019	11,582
2020	19,800
2022	15,620
2023	3,600
2024	4,600
2025	—
2026	—

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS AS OF JUNE 30, 2026 (Continued)

(in thousands, except share data)

Endnote Explanations as of June 30, 2026 (Continued)

(42)This investment represents a Level 2 security in the ASC 820 table as of June 30, 2026. See Notes 2 and 3 within the accompanying notes to consolidated financial statements for further discussion.

(45)Emerge Intermediate, Inc., HD Research, LLC, ERG Buyer, LLC, and ERG Blocker, Inc. are joint borrowers on the First Lien Term Loan.

(46)The stated interest rate on the drawn revolver and delayed drawn term loan commitments represents a weighted average interest rate for the funded amounts of the investment.

(48)Prospect owns 100% of the equity of Victor Holdings of Delaware, LLC (“Victor Holdings”), a Consolidated Holding Company. During the year ended June 30, 2026, Victor Holdings acquired 100% of the equity interest in VTI Acquisition, Inc. (“VTI”) and 99.90% of the equity interest in Victor Technology, LLC (“Victor Technology”), with VTI owning the remaining 0.1%. As a result, Prospect’s investment in Victor Technology is classified as a control investment as of June 30, 2026. Victor Technology is a manufacturer and distributor of office supplies, including calculators, standing desks, organizers and paperclips.

(50)The Prospect owns 100% of the equity of R-V Holdings of Delaware, LLC (“R-V Holdings”), a Consolidated Holding Company. R-V Holdings owns 90.28% of the fully-diluted equity of R-V Industries, Inc.

(51)First Brands is progressing towards an exit from bankruptcy via a liquidating Chapter 11 plan. Given case complexities, the lenders have executed a forbearance into a Forbearance Agreement (approved by the Bankruptcy Court via Stipulation and Agreed Order entered July 29, 2026) instead of a maturity extension. Additionally, the disclosed interest for First Lien Term Loan A and First Lien Term Loan B represents the default rate, which became effective June 29, 2026 per the Forbearance Agreement.

See notes to consolidated financial statements.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(in thousands, except share and per share data)

Additional Information - Derivative instrument held at fair value:


Counterparty	Contract	Currency Purchased (1)	Currency Sold		Settlement Date	Maturity Date Range	Derivative Asset Fair Value		% of Net Assets		Derivative Liability Fair Value		% of Net Assets (2)
Mizuho Capital Markets LLC	Foreign Currency Forward Contracts	ILS 680,773	$	221,317	10/28/2025	9/23/2026 - 12/23/2030	$	18,900	0.6	%	$	—	—	%

(1) Currency purchased is Israeli Shekel (“ILS”).

(2) Percentage is less than 0.01% of Net Assets.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 1. Organization

In this report, the terms “Prospect”, “the Company”, “we”, “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise.

Prospect is a financial services company that primarily lends to and invests in middle market privately-held companies. We are a closed-end investment company incorporated in Maryland. We have elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). As a BDC, we have elected to be treated as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). We were organized on April 13, 2004, and were funded in an initial public offering completed on July 27, 2004.

On May 15, 2007, we formed a wholly owned subsidiary Prospect Capital Funding LLC (“PCF”), a Delaware limited liability company and a bankruptcy remote special purpose entity, which holds certain of our portfolio loan investments that are used as collateral for the revolving credit facility at PCF. On September 30, 2014, we formed a wholly-owned subsidiary Prospect Yield Corporation, LLC (“PYC”) and effective October 23, 2014, PYC holds a portion of our collateralized loan obligations (“CLOs”), which we also refer to as subordinated structured notes (“SSNs”). Each of these subsidiaries have been consolidated since operations commenced.

We consolidate certain of our wholly owned and substantially wholly owned holding companies formed by us in order to facilitate our investment strategy. The following companies are included in our consolidated financial statements and are collectively referred to as the “Consolidated Holding Companies”: Belnick Holdings of Delaware, LLC (“Belnick Delaware”); CP Holdings of Delaware LLC (“CP Holdings”); Credit Central Holdings of Delaware, LLC; Energy Solutions Holdings Inc.; First Tower Holdings of Delaware LLC (“First Tower Delaware”); MITY Holdings of Delaware Inc.; Nationwide Acceptance Holdings LLC; NMMB Holdings, Inc. (“NMMB Holdings”); NPH Property Holdings, LLC (“NPH”); NPH Holdco LLC (“NPH Holdco”); Prospect Opportunity Holdings I, Inc. (“POHI”); R-V Holdings of Delaware, LLC (“R-V Holdings”); SB Forging Company, Inc. (“SB Forging”); STI Holding, Inc.; UTP Holdings Group Inc. (“UTP Holdings”); Valley Electric Holdings I, Inc. (“Valley Holdings I”); Valley Electric Holdings II, Inc. (“Valley Holdings II”); and Victor Holdings of Delaware, LLC (“Victor Holdings”).

We are externally managed by our investment adviser, Prospect Capital Management L.P. (“Prospect Capital Management” or the “Investment Adviser”). Prospect Administration LLC (“Prospect Administration” or the “Administrator”), a wholly-owned subsidiary of the Investment Adviser, provides administrative services and facilities necessary for us to operate.

Our investment objective is to generate both current income and long-term capital appreciation. We intend to invest primarily in privately owned United States (“U.S.”) middle market companies, in senior and secured first lien loans and, to a lesser extent, second lien loans, as well as equity and equity-linked investments with capital-appreciation potential (such as senior and secured convertible debt, preferred equity, common equity and warrants). Most of our investments will be in private U.S. companies; however, we may also invest to some extent in broadly-traded public companies and non-U.S. companies (subject to compliance with BDC requirements to invest at least 70% of assets in “eligible portfolio companies,” which are generally privately offered securities issued by U.S. private or thinly-traded companies). We are a non-diversified company within the meaning of the 1940 Act.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 2. Significant Accounting Policies

Basis of Presentation and Consolidation

The accompanying interim consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the requirements for reporting on Form 10-Q, ASC 946, Financial Services—Investment Companies (“ASC 946”), and Articles 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial statements prepared in accordance with GAAP are omitted. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending June 30, 2027.

Under the 1940 Act, ASC 946, and the regulations pursuant to Article 6 of Regulation S-X, we are precluded from consolidating any entity other than another investment company or an operating company which provides substantially all of its services to benefit us. Our consolidated financial statements include the accounts of Prospect, PCF, PYC, and the Consolidated Holding Companies. The consolidated financial statements reflect all adjustments and reclassifications that, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition as of and for the periods presented. All intercompany balances and transactions have been eliminated in consolidation. The financial results of our non-substantially wholly-owned holding companies and operating portfolio company investments are not consolidated in the financial statements. Any operating companies owned by the Consolidated Holding Companies are not consolidated.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Cash, cash equivalents, and restricted cash are carried at cost, which approximates fair value.

All cash and restricted cash balances are maintained with high credit quality financial institutions. Cash and restricted cash held at financial institutions, at times, has exceeded the Federal Deposit Insurance Corporation (“FDIC”) insured limit. The Company has not incurred any losses on these accounts, and the credit risk exposure is mitigated by the financial strength of the banking institutions where the amounts are held.

Restricted cash relates to a contractual requirement for our Revolving Credit Facility to maintain a minimum cash balance in a reserve account. The contractual requirement is based upon our outstanding borrowing on our Revolving Credit Facility. Additionally, as of September 30, 2026, restricted cash may also include collateral posted to cover variation margin that may be restricted until the position is closed out. This balance is required by our custody control agreement to be held in a custody account. Restricted cash may also include cash collateral posted to our derivative counterparty to cover variation margin under our ISDA Master Agreement and related Credit Support Annex. Any such collateral is held in a custody account in the Company’s name that is pledged to the counterparty under a custody control agreement, and is restricted until returned to the Company in accordance with the terms of those agreements. As of September 30, 2026 and June 30, 2026, the Company had not posted any collateral. Refer to Note 6. Derivative Instruments for additional information.

Reclassifications

Certain reclassifications have been made in the presentation of prior consolidated financial statements and accompanying notes to conform to the presentation as of and for the three months ended September 30, 2026. See Note 12. Income Taxes and Note 16. Financial Highlights.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of income, expenses, and gains and losses during the reported period. Changes in the economic environment, financial markets, creditworthiness of the issuers of our investment portfolio and any other parameters used in determining these estimates could cause actual results to differ, and these differences could be material.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Investment Classification

We are a non-diversified company within the meaning of the 1940 Act. As required by the 1940 Act, we classify our investments by level of control. As defined in the 1940 Act, “Control Investments” are those where there is the ability or power to exercise a controlling influence over the management or policies of a company. Control is generally deemed to exist when a company or individual possesses a beneficial ownership of more than 25% of the voting securities of an investee company. Under the 1940 Act, “Affiliate Investments” are defined by a lesser degree of influence and are deemed to exist through owning, controlling, or holding with power to vote, 5% or more of the outstanding voting securities of another person. “Non-Control/Non-Affiliate Investments” are those that are neither Control Investments nor Affiliate Investments.

As a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). As of September 30, 2026 and June 30, 2026, our qualifying assets as a percentage of total assets, stood at 80.52% and 81.94%, respectively.

Investment Transactions

Investments are recognized when we assume an obligation to acquire a financial instrument and assume the risks for gains or losses related to that instrument. Specifically, we record all security transactions on a trade date basis. We determine the fair value of our investments on a quarterly basis (as discussed in Investment Valuation below), with changes in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statement of Operations.

Investments are derecognized when we assume an obligation to sell a financial instrument and forego the risks for gains or losses related to that instrument. Realized gains or losses on the sale of investments are calculated using the specific identification method. Amounts for investments traded but not yet settled are reported in Due to Broker or Due from Broker, in the Consolidated Statements of Assets and Liabilities. Due to Broker may also include amounts payable for repurchases of the Company’s Unsecured Notes that have traded but not yet settled and the Settlement Amount (as defined below) of any Holder Optional Conversion where the shares of Preferred Stock have been surrendered and cancelled and the common stock has not yet been issued. As of September 30, 2026 and June 30, 2026, we have no assets going through foreclosure.

Foreign Currency

Foreign currency amounts are translated into U.S. Dollars (USD) on the following basis:

i.fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and

ii.purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses.

We do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in fair values of investments held or disposed of during the period. Such fluctuations are included within the net realized and net change in unrealized gains or losses from investments in the Consolidated Statements of Operations.

Foreign-denominated monetary assets and liabilities, including our 5.50% 2030 Notes, are remeasured at the spot exchange rate as of the last business day of the period, with the resulting gains and losses recognized in net change in unrealized gains (losses) from derivative instruments and foreign currency transactions. Foreign-currency-denominated cash proceeds and payments, including interest payments on the 5.50% 2030 Notes, are translated at the exchange rates in effect on the settlement dates and recognized in net realized gains (losses) from derivative instruments and foreign currency transactions and for interest payment in interest expense.

We use foreign currency forward contracts to manage a portion of our exposure to changes in the Israeli Shekel/U.S. Dollar exchange rate associated with principal and interest on the 5.50% 2030 Notes. Certain forward contracts are designated as cash flow hedges of forecasted interest payments and certain forward contracts are designated as fair value hedges of the foreign currency risk in the 5.50% 2030 Notes’ principal. Refer to Note 6. Derivative Instruments for additional information, including the accounting for amounts recognized in earnings and other comprehensive income.

Investment Risks

Our investments are subject to a variety of risks. Those risks include the following:

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Market Risk

Market risk represents the potential loss that can be caused by a change in the fair value of the financial instrument.

Credit Risk

Credit risk represents the risk that we would incur if the counterparties failed to perform pursuant to the terms of their agreements with us.

Liquidity Risk

Liquidity risk represents the possibility that we may not be able to rapidly adjust the size of our investment positions in times of high volatility and financial stress at a reasonable price.

Interest Rate Risk

Interest rate risk represents a change in interest rates, which could result in an adverse change in the fair value of an interest-bearing financial instrument.

Prepayment Risk

Many of our debt investments allow for prepayment of principal without penalty. Downward changes in interest rates may cause prepayments to occur at a faster than expected rate, thereby effectively shortening the maturity of the security and making us less likely to fully earn all of the expected income of that security and reinvesting in a lower yielding instrument.

Structured Credit Related Risk

CLO investments may be riskier and less transparent to us than direct investments in underlying companies. CLOs typically will have no significant assets other than their underlying senior secured loans. Therefore, payments on CLO investments are and will be payable solely from the cash flows from such senior secured loans.

Foreign Currency

Investments and debt denominated in foreign currencies and foreign currency transactions may involve certain considerations and risks not typically associated with those of domestic origin. These risks include, but are not limited to, currency fluctuations and revaluations and future adverse political, social and economic developments, which could cause investments in foreign markets to be less liquid and prices more volatile than those of comparable U.S. companies or U.S. government securities.

Other Risks

Political developments, including civil conflicts and war, sanctions or other measures by the United States or other governments, natural disasters, public health crises and other events outside the Company’s control can directly or indirectly have a material adverse impact on the Company and our portfolio companies.

Investment Valuation

As a BDC, and in accordance with the 1940 Act, we fair value our investment portfolio on a quarterly basis, with any unrealized gains and losses reflected in net increase (decrease) in net assets resulting from operations on our Consolidated Statement of Operations. To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices, including valuations derived from observable market data such as interest rate curves, forward curves, foreign exchange rates, and credit spreads.

Level 3: Unobservable inputs for the asset or liability.

Our Board of Directors has established procedures for the valuation of our investment portfolio. These procedures are detailed below.

Investments for which market quotations are readily available are valued at such market quotations, subject to the quotations meeting sufficient volume and liquidity metrics.

For most of our investments, market quotations are not available. With respect to investments for which market quotations are not readily available or when such market quotations are deemed not to represent fair value, due to factors such as volume and frequency of price quotes, our Board of Directors has approved a multi-step valuation process each quarter, as described below.

1.Each portfolio company or investment is reviewed by our investment professionals with independent valuation firms engaged by our Board of Directors.

2.The independent valuation firms prepare independent valuations for each investment based on their own independent assessments and issue their report.

3.The Audit Committee of our Board of Directors reviews and discusses with the independent valuation firms the valuation reports, and then makes a recommendation to the Board of Directors of the value for each investment.

4.The Board of Directors discusses valuations and determines the fair value of each investment in our portfolio in good faith based on the input of the Investment Adviser, the respective independent valuation firm and the Audit Committee.

Our non-CLO investments that are classified as Level 3 are primarily valued utilizing a discounted cash flow, enterprise value (“EV”) waterfall, asset recovery analysis, deficiency claims analysis, or an option pricing model. The discounted cash flow converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts. Under the EV waterfall, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow. The asset recovery analysis is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets. The deficiency claim analysis approximates the potential recoveries from claims after liquidation. The option pricing model considers the optionality of certain equity positions when there is a limitation to exit or effectuate a sale. The model utilizes the underlying price, the strike or exercise price, interest rate, volatility, and time to expiration date.

In applying these methodologies, additional factors that we consider in valuing our investments may include, as we deem relevant: security covenants, call protection provisions, and information rights; the nature and realizable value of any collateral; the portfolio company’s ability to make payments; the principal markets in which the portfolio company does business; publicly available financial ratios of peer companies; the principal market; and enterprise values, among other factors.

Our investments in CLOs are classified as Level 3 fair value measured securities under ASC 820 and are valued using a discounted multi-path cash flow model. The CLO structures are analyzed to identify the risk exposures and to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which is a simulation used to model the probability of different outcomes, to generate probability-weighted

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(i.e., multi-path) cash flows from the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market as well as certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the multi-path cash flows. We are not responsible for and have no influence over the asset management of the portfolios underlying the CLO investments we hold, as those portfolios are managed by non-affiliated third-party CLO collateral managers. The main risk factors are default risk, prepayment risk, interest rate risk, downgrade risk, and credit spread risk.

Revenue Recognition

Interest income, adjusted for amortization of premium and accretion of discount, is recorded on an accrual basis. Original issue discounts and market discounts are capitalized and accreted into interest income over the respective terms of the applicable loans using the effective interest method or straight-line, as applicable, and adjusted only for material amendments or prepayments. Upon a prepayment of a loan, prepayment premiums, original issue discount, or market discounts are recorded as interest income.

Loans are placed on non-accrual status when there is reasonable doubt that principal or interest will be collected. Unpaid accrued interest is generally reversed when a loan is placed on non-accrual status. Interest payments received on non-accrual loans are either applied to the cost basis or interest income, depending upon management’s judgment of the collectability of the loan receivable. Non-accrual loans are restored to accrual status when past due principal and interest is paid and in management’s judgment, is likely to remain current and future principal and interest collections when due are probable. Interest received and applied against cost while a loan is on non-accrual, and payment-in-kind (“PIK”) interest capitalized but not recognized while on non-accrual, is recognized prospectively on the effective yield basis through maturity of the loan when placed back on accrual status, to the extent deemed collectible by management. As of September 30, 2026 and June 30, 2026, approximately 0.2% and 0.7%, respectively, of our total assets at fair value are in non-accrual status.

Some of our loans and other investments may have contractual PIK interest or dividends. PIK income computed at the contractual rate is accrued into income and reflected as receivable up to the capitalization date. PIK investments offer issuers the option at each payment date of making payments in cash or in additional securities. When additional securities are received, they typically have the same terms, including maturity dates and interest rates as the original securities issued. On these payment dates, we capitalize the accrued interest (reflecting such amounts in the basis as additional securities received). PIK generally becomes due at maturity of the investment or upon the investment being called by the issuer. At the point that we believe PIK is not fully expected to be realized, the PIK investment will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest or dividends are reversed from the related receivable through interest or dividend income, respectively. We do not reverse previously capitalized PIK interest or dividends. Upon capitalization, PIK is subject to the fair value estimates associated with their related investments. PIK investments on non-accrual status are restored to accrual status if we believe that PIK is expected to be realized.

Interest income from investments in Subordinated Structured Notes (typically preferred shares, income notes or subordinated notes of CLO funds) and “equity” class of security of securitized trust is recorded based upon an estimation of an effective yield to expected maturity utilizing assumed cash flows in accordance with ASC 325-40, Beneficial Interests in Securitized Financial Assets. We monitor the expected cash inflows from our CLO and securitized trust equity investments, including the expected residual payments, and the effective yield is determined and updated periodically.

We recognize realized losses for certain CLO equity investments when we determine that a CLO’s expected remaining cash flows do not exceed amortized cost basis. In such situations, the amortized cost basis of the CLO is written down and recognized as a realized loss.

Dividend income is recorded on the ex-dividend date. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient current or accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.

Other income consists of structuring fees, amendment fees, overriding royalty interests, receipts related to net profit and revenue interests, deal deposits, administrative agent fees, and other miscellaneous receipts, which are recognized as revenue when received.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Structuring fees and certain other amendment or advisory fees are considered fees in exchange for the provision of certain services and are subject to the provisions of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). All other types of income are derived from lending or equity investments, which is recognized in accordance with ASC 310-20, Nonrefundable Fees and Other Costs. See Note 10. Other Income.

Realized gains or losses on the sale of investments are calculated using the specific identification method. Refer to Investment Transactions above.

Federal and State Income Taxes

We have elected to be treated as a RIC and intend to continue to comply with the requirements of the Code applicable to RICs. We are required to distribute at least 90% of our investment company taxable income and intend to distribute (or retain through a deemed distribution) all of our investment company taxable income and net capital gain to stockholders; therefore, we have made no provision for income taxes. The character of income and gains that we will distribute is determined in accordance with income tax regulations that may differ from GAAP. Book and tax basis differences relating to stockholder dividends and distributions and other permanent book and tax differences are reclassified to paid-in capital.

If we do not distribute (or are not deemed to have distributed) at least 98% of our annual ordinary income and 98.2% of our capital gains in the calendar year earned, we will generally be required to pay an excise tax equal to 4% of the amount by which 98% of our annual ordinary income and 98.2% of our capital gains exceed the distributions from such taxable income for the year. To the extent that we determine that our estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, we accrue excise taxes, if any, on estimated excess taxable income. As of September 30, 2026, we do not expect to have any excise tax due for the 2026 calendar year. Thus, we have not accrued any excise tax for this period.

If we fail to satisfy the annual distribution requirement or otherwise fail to qualify as a RIC in any taxable year, we would be subject to tax on all of our taxable income at regular corporate income tax rates. We would not be able to deduct distributions to stockholders, nor would we be required to make distributions. Distributions would generally be taxable to our individual and other non-corporate taxable stockholders as ordinary dividend income eligible for the reduced maximum rate applicable to qualified dividend income to the extent of our current and accumulated earnings and profits, provided certain holding period and other requirements are met. Subject to certain limitations under the Code, corporate distributions would be eligible for the dividends-received deduction. To qualify again to be taxed as a RIC in a subsequent year, we would be required to distribute to our stockholders our accumulated earnings and profits attributable to non-RIC years. In addition, if we failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, we would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

We follow ASC 740, Income Taxes (“ASC 740”). ASC 740 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the consolidated financial statements. ASC 740 requires the evaluation of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. As of September 30, 2026, we did not record any unrecognized tax benefits or liabilities. Management’s determinations regarding ASC 740 may be subject to review and adjustment at a later date based upon factors including, but not limited to, an on-going analysis of tax laws, regulations, and interpretations thereof. Although we file both federal and state income tax returns, our major tax jurisdiction is federal. Our federal tax returns for the tax years ended August 31, 2023 and thereafter remain subject to examination by the Internal Revenue Service.

Taxable Subsidiaries

Certain of our consolidated subsidiaries are subject to U.S. federal and state corporate-level income taxes. As of September 30, 2026, and June 30, 2026, no net tax benefit or expense was recorded since they did not result in a material provision for income taxes. As of September 30, 2026, and June 30, 2026, the net deferred tax asset or liability was not material to the financial statements after taking into account valuation allowances.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Dividends and Distributions to Common Shareholders

Dividends and distributions to common stockholders are recorded on the ex-dividend date. The amount, if any, to be paid as a monthly dividend or distribution is approved by our Board of Directors quarterly and is generally based upon our management’s estimate of our future taxable earnings. Net realized capital gains, if any, are distributed at least annually.

Our distributions may exceed our earnings, and therefore, portions of the distributions that we make may be a return of the money originally invested and represent a return of capital distribution to shareholders for tax purposes.

Financing Costs

We record origination expenses related to our Revolving Credit Facility as deferred financing costs. These expenses are deferred and amortized as part of interest expense using the straight-line method over the stated life of the obligation for our Revolving Credit Facility. Debt issuance costs and origination discounts related to our 3.364% 2026 Notes, and 3.437% 2028 Notes are presented net against the outstanding principal of the respective note and amortized as part of interest expense using the effective interest method over the stated life of the respective instrument. Debt issuance costs and origination discounts related to our 5.50% 2030 Notes (collectively, with our 3.364% 2026 Notes and 3.437% 2028 Notes, our “Public Notes”) and Prospect Capital InterNotes® (collectively, with our Public Notes, our “Unsecured Notes”) are net against the outstanding principal amount of our 5.50% 2030 Notes and Prospect Capital InterNotes®, respectively, and are amortized as part of interest expense using the straight-line method over the stated maturity of the respective note. In the event that we modify or extinguish our debt before maturity, we follow the guidance in ASC 470-50, Modification and Extinguishments (“ASC 470-50”). For modifications to or exchanges of our Revolving Credit Facility, any unamortized deferred costs relating to lenders who are not part of the new lending group are expensed. For extinguishments of our Unsecured Notes, any unamortized deferred costs are deducted from the carrying amount of the debt in determining the gain or loss from the extinguishment.

We may record registration expenses related to shelf filings as prepaid expenses. These expenses consist principally of the Securities and Exchange Commission (“SEC”) or Israeli Securities Authority (“ISA”) registration fees, legal fees and accounting fees incurred. These prepaid expenses are charged to capital upon the receipt of proceeds from an equity offering or reclassified to deferred debt issuance costs upon the receipt of proceeds from a debt offering and are presented and amortized in accordance with the above policy. The prepaid expenses are charged to expense if no offering is completed. As of September 30, 2026 and June 30, 2026, there are no prepaid expenses related to registration expenses and all amounts incurred have been expensed.

Per Share Information

In accordance with ASC 946, senior equity securities, such as preferred stock, are not considered in the calculation of net asset value per common share. Net asset value per common share also excludes the effects of assumed conversion of outstanding convertible securities, regardless of whether their conversion would have a diluting effect. Therefore, our net asset value is presented on the basis of per common share outstanding as of the applicable period end.

We compute earnings per common share in accordance with ASC 260, Earnings Per Share (“ASC 260”). Basic earnings per common share is calculated by dividing the net increase (decrease) in net assets resulting from operations applicable to common stockholders by the weighted average number of shares of common stock outstanding. Diluted earnings per share gives effect to all dilutive potential common shares outstanding using the if-converted method for our Convertible Preferred Stock. Diluted earnings per share excludes all dilutive potential common shares if their effect is anti-dilutive.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Preferred Stock

In accordance with ASC 480-10-S99-3A, the Company’s Preferred Stock (as defined in “Note 9. Equity Offerings, Offering Expenses, and Distributions”) has been classified in temporary equity on the Consolidated Statement of Assets and Liabilities. Beginning with the period ended September 30, 2021, limitations on our ability to exercise our Issuer Optional Conversion on the 5.50% Preferred Stock and 6.50% Preferred Stock (each, as defined below) created the possibility of redemption outside of the Company’s control if dividends on the Preferred Stock have accumulated and been unpaid for a period of two years. The 5.50% Preferred Stock, 6.50% Preferred Stock and 5.35% Series A Preferred Stock issued as temporary equity is recorded net of offering costs and issuance costs due to this possibility. The 5.50% Preferred Stock issued prior to the issuance of our 5.35% Series A Preferred Stock has a carrying value on our Consolidated Statement of Assets and Liabilities equal to liquidation value per share.

The Floating Rate Preferred Stock and 7.50% Preferred Stock (each, as defined below) are redeemable at the election of the holder at any time and is probable of redemption outside of the Company’s control. In accordance with ASC 480-10-S99-3A, the Floating Rate Preferred Stock and 7.50% Preferred Stock are accreted to redemption value within temporary equity upon issuance. Accretion to redemption value is treated as an adjustment to net increase (decrease) in net assets resulting from operations applicable to common stockholders on our Consolidated Statement of Operations.

Accrued and unpaid dividends relating to the Preferred Stock are included in the preferred stock carrying value on the Consolidated Statement of Assets and Liabilities. Dividends declared on the Preferred Stock are included in preferred stock dividends on the Consolidated Statement of Operations.

Segment Reporting

In accordance with ASC Topic 280 - Segment Reporting (“ASC 280”), the Company has determined that it has a single operating and reporting segment. As a result, the Company’s segment accounting policies are the same as described herein and the Company does not have any intra-segment sales and transfers of assets.

Derivative Instruments

The Company follows the guidance in ASC Topic 815 - Derivatives and Hedging (“ASC Topic 815”) when accounting for derivative instruments.

The Company may enter into derivative instruments, primarily foreign currency forward contracts, to manage its exposure to foreign currency exchange rate risk associated with certain financing arrangements, including the 5.50% 2030 Notes. Derivative instruments are recognized as assets or liabilities at fair value in the Consolidated Statement of Assets and Liabilities.

The Company designates certain foreign currency forward contracts as cash flow hedges, which hedge the foreign currency exchange rate risk associated with forecasted interest payments on the 5.50% 2030 Notes, which are payable in Israeli Shekel. For qualifying cash flow hedges, the change in fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss) (“OCI”) and is reclassified into earnings in the same Consolidated Statement of Operations line item as the hedged item, when the hedged cash flows affect earnings. This will occur when interest payments are made and when the principal of the loan is fully repaid. If it becomes probable that a hedged forecasted transaction will not occur, the related gains or losses in accumulated other comprehensive income (loss) are immediately reclassified into interest expense.

The Company designates a certain foreign currency forward contract as fair value hedge of the foreign currency exchange rate risk associated with the principal of the 5.50% 2030 Notes. For this hedge, the Company has elected to apply the spot method (as defined within ASC Topic 815), whereby changes in the fair value of the forward contracts attributable to spot rate changes are included in the assessment of hedge effectiveness. The related gains and losses are recognized in earnings in the same Consolidated Statement of Operations line item as the earnings effect of the hedged item, which is net change in unrealized gains (losses) from derivative instruments and foreign currency transactions. The Company excludes forward points, the spot-forward difference, from the hedge effectiveness assessment. Forward points are recognized in earnings on a systematic basis over the term of the hedge, with any remaining change in the fair value of forward points recorded in OCI. Amounts recognized in earnings are presented in the same Consolidated Statement of Operations line item as the hedged item, which is net realized gains (losses) from derivative instruments and foreign currency transactions.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Although the Company has the ability to offset derivative assets and liabilities that may be received or paid as part of collateral arrangements in the Consolidated Statement of Assets and Liabilities in accordance with the applicable offsetting guidance, the Company has elected not to offset and therefore presents derivative assets and derivative liabilities on a gross basis. The Company also does not offset the fair value of derivative instruments against cash collateral posted or received.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standard updates (“ASU”) issued by the Financial Accounting Standards Board (the “FASB”). ASUs not listed were assessed by the Company and either determined to be not applicable or expected to have minimal impact on its consolidated financial statements.

In September 2026, the FASB issued ASU No. 2026-03, “Fair Value Measurement (Topic 820): Investment Companies With Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2026-03”), which requires investment companies to reflect contractual sale restrictions in the fair value of equity securities. ASU 2026-03 is effective for public business entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, and is to be applied on a prospective basis. The Company is currently evaluating the impact of ASU 2026-03 on its consolidated financial statements.

In November 2025, the FASB issued ASU No. 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting Improvements” (“ASU 2025-09”), which clarifies certain aspects of the hedge accounting guidance and addresses incremental hedge accounting issues arising from the global reference rate reform initiative, with the objective of more closely aligning hedge accounting with the economics of an entity’s risk management activities. ASU 2025-09 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, and is to be applied on a prospective basis. The Company will adopt ASU 2025-09 as of September 30, 2027, and the application of this guidance is not expected to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), which requires disclosure of specified expense categories within relevant income statement captions. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027, and is to be applied on a prospective basis with the option to apply retrospectively. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements.

Note 3. Portfolio Investments

As of September 30, 2026, we had investments in 85 portfolio companies and other portfolio investments, which had an amortized cost of $5,944,319 and a fair value of $5,944,478. As of June 30, 2026, we had investments in 91 portfolio companies, which had an amortized cost of $6,315,369 and a fair value of $6,342,558.

The original cost basis of debt and equity securities acquired, including follow-on investments for existing portfolio companies, payment-in-kind interest, and structuring fees, totaled $90,477 and $91,567 during the three months ended September 30, 2026 and September 30, 2025, respectively. Debt repayments and considerations from sales of equity securities of approximately $257,372 and $234,660 were received during the three months ended September 30, 2026 and September 30, 2025, respectively.

Throughout the remainder of this footnote, we aggregate our portfolio investments by type of investment, which may differ slightly from the nomenclature used by the constituent instruments defining the rights of holders of the investment, as disclosed on our Consolidated Schedules of Investments (“SOI”). The following investments are included in each category:

•First Lien Revolving Line of Credit includes our debt investments in first lien revolvers as well as our debt investments in delayed draw term loans.

•First Lien Debt includes our debt investments listed on the SOI such as first lien term loans (including “unitranche” loans, which are loans that combine both senior and subordinated debt and “last out” loans which are loans that have a secondary payment priority behind “first out” first-lien loans).

•Second Lien Revolving Line of Credit includes our debt investments in second lien revolvers as well as our debt investments in delayed draw term loans.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

•Second Lien Debt includes our debt investments listed on the SOI as second lien term loans.

•Unsecured Debt includes our debt investments listed on the SOI as unsecured.

•Subordinated Structured Notes includes our investments in the “equity” security class of CLO funds such as income notes, preference shares, and subordinated notes.

•Equity, unless specifically stated otherwise, includes our investments in preferred stock, common stock, membership interests, net profits interests, net operating income interests, net revenue interests, overriding royalty interests, escrows receivable, and warrants.

The following table shows the composition of our investment portfolio as of September 30, 2026 and June 30, 2026:


	September 30, 2026				June 30, 2026
	Cost		Fair Value		Cost		Fair Value
First Lien Revolving Line of Credit	$	92,288	$	82,317	$	78,795	$	72,378
First Lien Debt(1)	4,154,259		3,952,018		4,494,789		4,216,556
Second Lien Revolving Line of Credit	5,284		5,284		1,854		1,854
Second Lien Debt	651,305		568,779		752,658		577,354
Unsecured Debt	7,200		5,213		7,200		5,195
Subordinated Structured Notes	—		—		2,108		2,794
Equity	1,033,983		1,330,867		977,965		1,466,427
Total Investments	$	5,944,319	$	5,944,478	$	6,315,369	$	6,342,558

(1) First lien debt includes loans that the Company classifies as “unitranche” and loans classified as “first lien last out”. The total amortized cost and fair value of the unitranche and/or last out loans were $63,005 and $58,579, respectively, as of September 30, 2026. The total amortized cost and fair value of the unitranche and/or last out loans were $219,582 and $155,717, respectively, as of June 30, 2026.

The following table shows the fair value of our investments and derivative instruments disaggregated into the three levels of the ASC 820 valuation hierarchy as of September 30, 2026:


	Level 1		Level 2		Level 3		Total
First Lien Revolving Line of Credit	$	—	$	—	$	82,317	$	82,317
First Lien Debt(1)	—		1,124		3,950,894		3,952,018
Second Lien Revolving Line of Credit	—		—		5,284		5,284
Second Lien Debt	—		—		568,779		568,779
Unsecured Debt	—		—		5,213		5,213
Subordinated Structured Notes	—		—		—		—
Equity	—		—		1,330,867		1,330,867
Total Investments	$	—	$	1,124	$	5,943,354	$	5,944,478
Derivative Instruments(2)
Foreign currency forward contracts - Assets	$	—	$	14,373	$	—	$	14,373
Total Foreign currency forward contracts - Assets	$	—	$	14,373	$	—	$	14,373
Foreign currency forward contracts - Liabilities	$	—	$	—	$	—	$	—
Total Foreign currency forward contracts - Liabilities	$	—	$	—	$	—	$	—

(1) First lien debt includes loans that the Company classifies as “unitranche”. The total amortized cost and fair value of the unitranche loan was $63,005 and $58,579, respectively, as of September 30, 2026.

(2) All foreign currency forward contracts are designated in hedge relationships.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The following table shows the fair value of our investments and derivative instruments disaggregated into the three levels of the ASC 820 valuation hierarchy as of June 30, 2026.


	Level 1		Level 2		Level 3		Total
First Lien Revolving Line of Credit	$	—	$	—	$	72,378	$	72,378
First Lien Debt(1)	—		1,192		4,215,364		4,216,556
Second Lien Revolving Line of Credit	—		—		1,854		1,854
Second Lien Debt	—		41		577,313		577,354
Unsecured Debt	—		—		5,195		5,195
Subordinated Structured Notes	—		—		2,794		2,794
Equity	—		—		1,466,427		1,466,427
Total Investments	$	—	$	1,233	$	6,341,325	$	6,342,558
Derivative Instruments(2)
Foreign currency forward contracts - Assets	$	—	$	18,900	$	—	$	18,900
Total Foreign currency forward contracts - Assets	$	—	$	18,900	$	—	$	18,900
Foreign currency forward contracts - Liabilities	$	—	$	—	$	—	$	—
Total Foreign currency forward contracts - Liabilities	$	—	$	—	$	—	$	—

(1) First lien debt includes loans that the Company classifies as “unitranche”. The total amortized cost and fair value of the unitranche loan were $219,582 and $155,717, respectively, as of June 30, 2026.

(2) All foreign currency forward contracts are designated in hedge relationships.

The following tables show the aggregate changes in the fair value of our Level 3 investments during the three months ended September 30, 2026:


	First Lien Revolving Line of Credit		First Lien Debt(2)		Second Lien Revolving Line of Credit		Second Lien Debt		Unsecured Debt		Subordinated Structured Notes		Equity		Total
Fair value as of June 30, 2026	$	72,378	$	4,215,364	$	1,854	$	577,313	$	5,195	$	2,794	$	1,466,427	$	6,341,325
Net realized (losses) gains on investments	—		(85,924)		—		(88,823)		6		163		107,655		(66,923)
Net change in unrealized (losses) gains	(3,554)		71,292		—		92,778		18		(686)		(191,578)		(31,730)
Net realized and unrealized (losses) gains	(3,554)		(14,632)		—		3,955		24		(523)		(83,923)		(98,653)
Purchases of portfolio investments	15,091		24,123		3,430		—		—		—		28,801		71,445
Payment-in-kind interest	958		13,170		—		2,327		—		—		2,577		19,032
Accretion of discounts and premiums, net	—		1,208		—		72		—		—		—		1,280
Decrease to Subordinated Structured Notes cost, net(4)	—		—		—		—		—		(1,837)		—		(1,837)
Repayments and sales of portfolio investments	(2,556)		(236,262)		—		(6,500)		(6)		(434)		(143,605)		(389,363)
Transfers within Level 3(1)(3)	—		(52,161)		—		(8,429)		—		—		60,590		—
Transfers out of Level 3(1)	—		—		—		—		—		—		—		—
Transfers into Level 3(1)	—		84		—		41		—		—		—		125
Fair value as of September 30, 2026	$	82,317	$	3,950,894	$	5,284	$	568,779	$	5,213	$	—	$	1,330,867	$	5,943,354

(1)Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the three months ended September 30, 2026, three of our first lien notes and one of our second lien notes transferred out of Level 2 into Level 3 because inputs to the valuation became unobservable. During the three months ended September 30, 2026, one of our second lien notes and six first lien loans transferred to two first lien loans and two equity positions.

(2) First lien debt includes loans that the Company classifies as “unitranche” and a loan classified as “first lien last out”. The total amortized cost and fair value of the unitranche and/or last out loans were $63,005 and $58,579, respectively, as of September 30, 2026. The total amortized cost and fair value of the unitranche and/or last out loans were $219,582 and $155,717, respectively, as of June 30, 2026.

(3) Includes reorganizations and restructuring of investments.
(4) Reduction to cost value of our Subordinated Structured Notes investments represents the difference between distributions received, or entitled to be received, for the three months ended September 30, 2026, of $1,837 and no effective yield interest income was recognized on our Subordinated Structured Notes.

The following tables show the aggregate changes in the fair value of our Level 3 investments during the three months ended September 30, 2025:

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	First Lien Revolving Line of Credit		First Lien Debt(2)		Second Lien Revolving Line of Credit		Second Lien Debt		Unsecured Debt		Subordinated Structured Notes		Equity		Total
Fair value as of June 30, 2025	$	68,350	$	4,351,777	$	—	$	726,372	$	5,403	$	35,002	$	1,404,527	$	6,591,431
Net realized (losses) gains on investments	—		4		—		—		5		(2,740)		842		(1,889)
Net change in unrealized (losses) gains	341		26,161		—		(8,839)		(112)		4,415		24,845		46,811
Net realized and unrealized (losses) gains	341		26,165		—		(8,839)		(107)		1,675		25,687		44,922
Purchases of portfolio investments(3)	5,257		47,426		1,706		—		—		—		15,624		70,013
Payment-in-kind interest	565		15,126		—		—		—		—		—		15,691
Accretion of discounts and premiums, net	(23)		472		—		183		—		—		—		632
Decrease to Subordinated Structured Notes cost, net(4)	—		—		—		—		—		(15,371)		—		(15,371)
Repayments and sales of portfolio investments(3)	(4,623)		(145,154)		—		(84,245)		(5)		(639)		(842)		(235,508)

Transfers out of Level 3(1)	—		—		—		(34,450)		—		—		—		(34,450)
Transfers into Level 3(1)	—		21,956		—		21,500		—		—		—		43,456
Fair value as of September 30, 2025	$	69,867	$	4,317,768	$	1,706	$	620,521	$	5,291	$	20,667	$	1,444,996	$	6,480,816

(1) Transfers are assumed to have occurred at the beginning of the quarter during which the asset was transferred. During the three months ended September 30, 2025, one of our first lien notes and one of our second lien notes transferred out of Level 3 to Level 2 because inputs to the valuation became observable. During the three months ended September 30, 2025, two of our first lien notes and one of our second lien notes transferred out of Level 2 to Level 3 because inputs to the valuation became unobservable.
(2) First lien debt includes a loan that the Company classifies as “unitranche” and a loan classified as “first lien last out.” The total amortized cost and fair value of the unitranche and/or last out loans were $202,687 and $146,873, respectively, as of September 30, 2025. The total amortized cost and fair value of the unitranche and/or last out loans were $201,585 and $166,464, respectively, as of June 30, 2025.

(3) Includes reorganizations and restructuring of investments.

(4) Reduction to cost value of our Subordinated Structured Notes investments represents the difference between distributions received, or entitled to be received, for the three months ended September 30, 2025, of $15,371 and the effective yield interest income recognized on our Subordinated Structured Notes of $0.

For the three months ended September 30, 2026 and September 30, 2025, respectively the net change in unrealized (losses) gains on the investments that use Level 3 inputs was $31,685 and $45,245 for investments still held as of September 30, 2026 and September 30, 2025, respectively.

The following table shows industries that comprise of greater than 10% of our portfolio at fair value as of September 30, 2026 and June 30, 2026:


	September 30, 2026						June 30, 2026
	Cost		Fair Value		% of Portfolio		Cost		Fair Value		% of Portfolio
Consumer Finance	$	775,068	$	1,164,510	19.6	%	$	760,592	$	1,149,153	18.1	%
Equity Real Estate Investment Trusts (REITs)	911,906		1,071,107		18.0	%	896,889		1,081,596		17.1	%
Health Care Providers & Services	731,184		691,226		11.6	%	776,917		758,688		12.0	%
All Other Industries	3,526,161		3,017,635		50.8	%	3,880,971		3,353,121		55.2	%
Total	$	5,944,319	$	5,944,478	100.0	%	$	6,315,369	$	6,342,558	100.0	%

As of September 30, 2026, portfolio investments located in Mississippi comprised 16.6% of our portfolio at fair value, with a cost of $500,776 and a fair value of $983,900 while portfolio investments located in California comprised 13.4% of our portfolio at fair value, with a cost of $1,134,558 and a fair value of $797,419.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The ranges of unobservable inputs used in the fair value measurement of our Level 3 investments as of September 30, 2026 were as follows:

Unobservable Input

Asset Category

Fair Value

Primary Valuation Approach or Technique

Input

Range

Weighted
Average (3)

First Lien Debt

1,295,503

Discounted cash flow (Yield analysis)

Market yield

8.6%

24.7%

12.7%

First Lien Debt

891,876

Discounted cash flow

Discount rate

6.5%

10.5%

7.2%

Terminal Cap Rate

5.5%

8.3%

6.0%

First Lien Debt

570,356

Enterprise value waterfall (Market approach)

EBITDA multiple

6.3x

12.5x

10.3x

Enterprise value waterfall (Discounted cash flow)

Discount rate

13.0%

16.5%

14.0%

First Lien Debt

469,630

Enterprise value waterfall (Market approach)

Tangible book value multiple

3.5x

4.0x

Earnings multiple

8.8x

13.3x

First Lien Debt

434,653

Enterprise value waterfall (Market approach)

EBITDA multiple

4.8x

10.0x

8.3x

First Lien Debt

278,120

Enterprise value waterfall (Market approach)

Revenue multiple

0.3x

3.5x

1.9x

First Lien Debt

54,113

Enterprise value waterfall (Market approach)

Tangible book value multiple

0.9x

1.6x

First Lien Debt

18,104

Discounted cash flow (Yield analysis)

Market yield

12.9%

Option Pricing Model

Expected volatility

50.0%

60.0%

First Lien Debt

11,294

Enterprise value waterfall (Discounted cash flow)

Discount rate

10.0%

20.0%

15.0%

First Lien Debt

8,575

Enterprise value waterfall (Market approach)

Revenue multiple

1.1x

1.5x

Enterprise value waterfall (Discounted cash flow)

Discount rate

18.8%

20.8%

18.8%

First Lien Debt

987

Option Pricing Model

Expected volatility

60.0%

70.0%

65.0%

Enterprise value waterfall (Market approach)

EBITDA multiple

6.5x

7.5x

7.0x

Second Lien Debt

417,369

Discounted cash flow (Yield analysis)

Market yield

12.5%

58.6%

18.8%

Second Lien Debt

69,388

Takeout Scenario

Takeout Fair Value

100%

Second Lien Debt

65,232

Enterprise value waterfall (Market approach)

EBITDA multiple

5.3x

6.3x

Second Lien Debt

21,404

Enterprise value waterfall (Market approach)

EBITDA multiple

9.5x

10.0x

9.5x

Discounted cash flow (Yield analysis)

Equity rates of return

25.0%

30.0%

27.5%

Second Lien Debt

670

Asset recovery analysis

Recoverable amount

n/a

Unsecured Debt

5,213

Enterprise value waterfall (Market approach)

EBITDA multiple

5.3x

6.8x

Preferred Equity

160,562

Enterprise value waterfall (Market approach)

EBITDA multiple

3.3x

10.5x

8.7x

Preferred Equity

31,537

Option Pricing Model

Expected volatility

55.0%

70.0%

67.0%

Enterprise value waterfall (Market approach)

EBITDA multiple

6.5x

7.8x

7.7x

Liquidation Trust

7,586

Deficiency claim analysis

Recoverable amount

n/a

Common Equity/Interests/Warrants

514,270

Enterprise value waterfall (Market approach)

Tangible book value multiple

3.5x

4.0x

Earnings multiple

8.8x

13.3x

Common Equity/Interests/Warrants

291,348

Enterprise value waterfall (Market approach)

EBITDA multiple

4.5x

11.0x

7.4x

Common Equity/Interests/Warrants

179,231

Discounted cash flow

Discount rate

6.5%

10.5%

7.2%

Terminal Cap Rate

5.5%

8.3%

6.0%

Common Equity/Interests/Warrants (2)

52,455

Discounted cash flow

Discount rate

7.8%

8.8%

Recovery rate

25.0%

125.0%

109.4%

Common Equity/Interests/Warrants

32,106

Enterprise value waterfall (Market approach)

Revenue multiple

0.3x

3.5x

0.7x

Common Equity/Interests/Warrants

26,010

Enterprise value waterfall (Market Approach)

EBITDA multiple

6.3x

12.5x

7.1x

Enterprise value waterfall (Discounted cash flow)

Discount rate

13.0%

16.5%

14.3%

Common Equity/Interests/Warrants

18,724

Enterprise value waterfall (Discounted cash flow)

Discount rate

10.0%

20.0%

15.0%

Common Equity/Interests/Warrants

12,008

Asset recovery analysis

Recoverable amount

n/a

Common Equity/Interests/Warrants

5,030

Option Pricing Model

Expected volatility

40.0%

Total Level 3 Investments

5,943,354

(1)Represents the implied discount rate based on our internally generated single-cash flow model that is derived from the fair value estimated by the corresponding multi-path cash flow model utilized by the independent valuation firm.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(2)Represents PSEC’s 94.99% share of the escrow and earnout receivables from the sale of Valley Electric Company, Inc.

(3)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

The ranges of unobservable inputs used in the fair value measurement of our Level 3 investments as of June 30, 2026 were as follows:

Unobservable Input

Asset Category

Fair Value

Primary Valuation Approach or Technique

Input

Range

Weighted
Average (3)

First Lien Debt

1,387,300

Discounted cash flow (Yield analysis)

Market yield

8.0%

24.0%

12.0%

First Lien Debt

876,859

Discounted cash flow

Discount Rate

6.5%

10.5%

7.3%

Terminal Cap Rate

5.5%

8.3%

6.1%

First Lien Debt

655,124

Enterprise value waterfall (Market approach)

EBITDA multiple

5.3x

12.5x

9.7x

Enterprise value waterfall (Discounted cash flow)

Discount rate

11.3%

16.0%

13.3%

First Lien Debt

506,062

Enterprise value waterfall (Market approach)

EBITDA multiple

4.8x

10.0x

8.4x

First Lien Debt

460,264

Enterprise value waterfall (Market approach)

Tangible book value multiple

3.5x

4.0x

Earnings multiple

8.8x

13.3x

First Lien Debt

307,175

Enterprise value waterfall (Market approach)

Revenue multiple

0.3x

3.0x

1.5x

First Lien Debt

56,537

Enterprise value waterfall (Market approach)

Tangible book value multiple

0.9x

1.6x

1.3x

First Lien Debt

18,034

Discounted cash flow (Yield analysis)

Market yield

13.1%

Option Pricing Model

Expected volatility

50.0%

60.0%

First Lien Debt

11,012

Enterprise value waterfall (Discounted cash flow)

Discount rate

10.0%

20.0%

15.0%

First Lien Debt

9,375

Enterprise value waterfall (Market approach)

Revenue multiple

1.1x

1.5x

Enterprise value waterfall (Discounted cash flow)

Discount rate

18.3%

20.3%

18.3%

Second Lien Debt

480,118

Discounted cash flow (Yield analysis)

Market yield

11.4%

57.7%

17.0%

Second Lien Debt

61,802

Enterprise value waterfall (Market approach)

EBITDA multiple

6.3x

7.3x

Second Lien Debt

21,402

Enterprise value waterfall (Market approach)

EBITDA multiple

9.3x

9.8x

9.5x

Discounted cash flow (Yield analysis)

Equity rates of return

25.0%

30.0%

25.0%

Second Lien Debt

8,429

Enterprise value waterfall (Market approach)

EBITDA multiple

5.3x

8.0x

6.6x

Enterprise value waterfall (Discounted cash flow)

Discount rate

11.3%

13.3%

12.3%

Second Lien Debt

7,416

Asset recovery analysis

Recoverable amount

n/a

Subordinated Structured Notes

2,794

Discounted cash flow

Discount rate (1)

13.8%

13.9%

Unsecured Debt

5,195

Enterprise value waterfall (Market approach)

EBITDA multiple

5.3x

6.8x

Preferred Equity

158,791

Enterprise value waterfall (Market approach)

EBITDA multiple

3.5x

10.0x

8.7x

Preferred Equity

35,496

Option Pricing Model

Expected volatility

55.0%

70.0%

66.9%

Enterprise value waterfall (Market approach)

EBITDA multiple

6.0x

7.5x

7.2x

Liquidation Trust

12,264

Deficiency claim analysis

Recoverable amount

n/a

Common Equity/Interests/Warrants

503,988

Enterprise value waterfall (Market approach)

EBITDA multiple

4.5x

11.3x

8.1x

Common Equity/Interests/Warrants

500,514

Enterprise value waterfall (Market approach)

Tangible book value multiple

3.5x

4.0x

Earnings multiple

8.8x

13.3x

Common Equity/Interests/Warrants

187,771

Discounted cash flow

Discount rate

6.5%

10.5%

7.3%

Terminal Cap Rate

5.5%

8.3%

6.1%

Common Equity/Interests/Warrants

20,720

Enterprise value waterfall (Discounted cash flow)

Discount rate

10.0%

20.0%

15.0%

Common Equity/Interests/Warrants (2)

16,966

Discounted cash flow

Discount rate

6.5%

10.5%

7.3%

Terminal Cap Rate

0.055

8.3%

6.1%

Common Equity/Interests/Warrants

14,710

Enterprise value waterfall (Market Approach)

EBITDA multiple

5.8x

12.5x

6.8x

Enterprise value waterfall (Discounted cash flow)

Discount rate

0.123

16.0%

15.0%

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Common Equity/Interests/Warrants

12,077

Asset recovery analysis

Recoverable amount

n/a

Common Equity/Interests/Warrants

3,128

Enterprise value waterfall (Market approach)

Revenue multiple

0.4x

3.0x

Common Equity/Interests/Warrants

Discounted cash flow

Discount rate

21.5%

22.5%

21.5%

Total Level 3 Investments

6,341,325

(2)Represents Residual Profit Interests in Real Estate Investments.

(3)The weighted average information is generally derived by assigning each disclosed unobservable input a proportionate weight based on the fair value of the related investment.

Investments for which market quotations are readily available are valued at such market quotations. In order to validate market quotations, management and the independent valuation firm look at a number of factors to determine if the quotations are representative of fair value, including the source and nature of the quotations. These investments are classified as Level 1 or Level 2 in the fair value hierarchy.

The fair value of debt investments specifically classified as Level 2 in the fair value hierarchy are generally valued by an independent pricing agent or more than one principal market maker, if available, otherwise a principal market maker or a primary market dealer. We generally value over-the-counter securities by using the prevailing bid and ask prices from dealers during the relevant period end, which were provided by an independent pricing agent and screened for validity by such service.

Certain derivative instruments are valued as Level 2 assets or liabilities using pricing information obtained from third-party pricing services, including IHS Markit. These valuations are based on prevailing market data as of the measurement date and are derived using models that apply well-recognized financial principles. Significant inputs to the valuation models include observable market data such as interest rate curves, forward curves, credit spreads, foreign exchange rates, volatilities, and other market-corroborated inputs. Management and the independent valuation firm evaluate the methodologies and inputs to assess whether the resulting values are representative of fair value.

In determining the range of values for debt instruments where market quotations are not readily available, and are therefore classified as Level 3 in the fair value hierarchy, except CLOs and debt investments in controlling portfolio companies, management and the independent valuation firm estimated corporate and security credit ratings and identified corresponding yields to maturity for each loan from relevant market data. A discounted cash flow technique was then applied using the appropriate yield to maturity as the discount rate, to determine a range of values. In determining the range of values for debt investments of controlled companies and equity investments, the enterprise value was determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. The enterprise value technique may also be used to value debt investments which are credit impaired. For stressed debt and equity investments, asset recovery analysis was used.

In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model. These investments are classified as Level 3 in the fair value hierarchy.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The significant unobservable input used to value our investments based on the yield technique and discounted cash flow technique is the market yield (or applicable discount rate) used to discount the estimated future cash flows expected to be received from the underlying investment, which includes both future principal and interest/dividend payments. Increases or decreases in the market yield (or applicable discount rate) would result in a decrease or increase, respectively, in the fair value measurement. Management and the independent valuation firms consider the following factors when selecting market yields or discount rates: risk of default, rating of the investment and comparable company investments, and call provisions.

The significant unobservable inputs used to value our investments based on the EV analysis may include market multiples of specified financial measures such as EBITDA, revenue, net income, or book value of identified guideline public companies, implied valuation multiples from precedent M&A transactions, and/or discount rates applied in a discounted cash flow technique. The independent valuation firm identifies a population of publicly traded companies with similar operations and key attributes to that of the portfolio company. Using valuation and operating metrics of these guideline public companies and/or as implied by relevant precedent transactions, a range of multiples of the latest twelve months EBITDA, or other measure such as net income or book value, is typically calculated. The independent valuation firm utilizes the determined multiples to estimate the portfolio company’s EV generally based on the latest twelve months EBITDA of the portfolio company (or other meaningful measure). Increases or decreases in the multiple would result in an increase or decrease, respectively, in EV which would result in an increase or decrease in the fair value measurement of the debt of controlled companies and/or equity investment, as applicable. In certain instances, a discounted cash flow analysis may be considered in estimating EV, in which case, discount rates based on a weighted average cost of capital and application of the capital asset pricing model may be utilized.

The significant unobservable inputs used to value our private REIT investments based on the discounted cash flow analysis is the discount rate and terminal capitalization rate applied to projected cash flows of the underlying properties. Increases or decreases in the discount rate and terminal capitalization rate would result in a decrease or increase, respectively, in the fair value measurement.

Changes in market yields, discount rates, capitalization rates or EBITDA (or other) multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates or capitalization rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it.

In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the currently assigned valuations.

Changes in Valuation Techniques

During the three months ended September 30, 2026, the valuation methodology for First Brands Group (“First Brands”) for the First Lien Term Loan, First Lien Term Loan 2, Second Lien Term Loan, and First Lien DIP Term Loan B changed from relying on market quotes to relying solely on a liquidation analysis, following the conversion of First Brand’s Chapter 11 bankruptcy proceedings to Chapter 7 on August 24, 2026, as these tranches are junior to the First Lien DIP Term Loan A and are not expected to receive recovery outside litigation. As a result, the fair value of our investments in the First Lien Term Loan, First Lien Term Loan 2, Second Lien Term Loan, and First Lien DIP Term Loan B decreased to $— as of September 30, 2026. On September 30, 2026, we wrote down the cost basis of the First Lien Term Loan, First Lien Term Loan 2, Second Lien Term Loan, First Lien DIP Term Loan A, and First Lien DIP Term Loan B to fair value and recognized realized losses of $4,371, $2,938, $37,000, $4,684 and $17,470, respectively.

During the three months ended September 30, 2026, the valuation methodology for BCPE North Star US Holdco 2, Inc. (“Dessert Holdings”) for the Second Lien Term Loan changed from the yield analysis to a take-out scenario, given Dessert Holdings’ near-term refinancing of its credit facilities. As a result, the fair value of our investment in the Second Lien Term Loan increased to $69,388 as of September 30, 2026, a premium of $301 from its amortized cost, compared to the $317 unrealized premium recorded at June 30, 2026.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

During the three months ended September 30, 2026, the valuation methodology for Discovery Point Retreat, LLC for the First Lien Delayed Draw Term Loan changed from the yield analysis to a combination of the enterprise value waterfall and Black-Scholes Option Pricing Method, consistent with the Series A Preferred Stock, given the loan’s convertibility into Series A Preferred Stock, and being in the money based on enterprise value. The fair value of our investment in the First Lien Delayed Draw Term Loan was $987, as of September 30, 2026, which is equal to its amortized cost, consistent with the fair value having equaled its amortized cost at June 30, 2026.

During the three months ended September 30, 2026, the valuation methodology for Wellful, Inc. (“Nutrisystem”) for the Second Out First Lien Term Loan changed from relying solely on the yield analysis to a combination of the yield analysis and market quotes, since market quotes were more active in the current period. The fair value of our investment in the Second Out First Lien Term Loan increased to $15,132 as of September 30, 2026, a discount of $3,210 from its amortized cost, compared to the $3,580 unrealized discount recorded at June 30, 2026.

Credit Quality Indicators and Undrawn Commitments

As of September 30, 2026, $3,528,378 of our loans to portfolio companies, at fair value, bear interest at floating rates and, if applicable, have LIBOR or SOFR floors ranging from 0.5% to 5.0%. As of September 30, 2026, $1,085,233 of our loans to portfolio companies, at fair value, bear interest at fixed rates ranging from 5.75% to 30.0%. As of June 30, 2026, $3,701,239 of our loans to portfolio companies, at fair value, bore interest at floating rates and, if applicable, have LIBOR or SOFR floors ranging from 0.5% to 5.5%. As of June 30, 2026, $1,172,098 of our loans to portfolio companies, at fair value, bore interest at fixed rates ranging from 5.75% to 30.0%.

As of September 30, 2026 and June 30, 2026, the cost basis of our loans on non-accrual status amounted to $107,345 and $298,227 respectively, with fair value of $9,354 and $42,531, respectively. The fair values of these investments represent approximately 0.2% and 0.7% of our total assets at fair value as of September 30, 2026 and June 30, 2026, respectively.

National Property REIT Corp.

Prospect owns 100% of the equity of NPH Property Holdings, LLC (“NPH”), a consolidated holding company which owns 100% of the common equity of NPRC.

NPRC is a Maryland corporation and a qualified REIT for federal income tax purposes. NPRC was formed to hold for investment, operate, finance, lease, manage, and sell a portfolio of real estate assets and engage in any and all other activities as may be necessary, incidental or convenient to carry out the foregoing. NPRC acquires real estate assets, including, but not limited to, industrial, commercial, multi-family, self-storage, and student housing properties. NPRC may acquire real estate assets directly or through joint ventures by making a majority equity investment in a property-owning entity. Additionally, through its wholly-owned subsidiaries, NPRC invests in online consumer loans and rated secured structured notes (“RSSN”).

During the three months ended September 30, 2026, we provided $15,017 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.

During the three months ended September 30, 2026, we received partial repayments of $0 of our loans previously outstanding with NPRC and its wholly owned subsidiary.

During the three months ended September 30, 2025, we provided $25,568 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.

During the three months ended September 30, 2025, we received partial repayments of $22,604 of our loans previously outstanding with NPRC and its wholly owned subsidiary.

As of September 30, 2026, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $911,906 and a fair value of $1,071,107, primarily related to NPRC’s real estate portfolio. The real estate portfolio was comprised of forty-four multi-family properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of September 30, 2026:

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
1	Taco Bell, OK	Yukon, OK	6/4/2014	$	1,719	$	—
2	Taco Bell, MO	Marshall, MO	6/4/2014	1,405		—
3	Abbie Lakes OH Partners, LLC	Canal Winchester, OH	9/30/2014	12,600		21,569
4	Kengary Way OH Partners, LLC	Reynoldsburg, OH	9/30/2014	11,500		22,945
5	Lakeview Trail OH Partners, LLC	Canal Winchester, OH	9/30/2014	26,500		43,656
6	Lakepoint OH Partners, LLC	Pickerington, OH	9/30/2014	11,000		25,935
7	Sunbury OH Partners, LLC	Columbus, OH	9/30/2014	13,000		21,372
8	Heatherbridge OH Partners, LLC	Blacklick, OH	9/30/2014	18,416		31,810
9	Jefferson Chase OH Partners, LLC	Blacklick, OH	9/30/2014	13,551		27,625
10	Goldenstrand OH Partners, LLC	Hilliard, OH	10/29/2014	7,810		17,195
11	9220 Old Lantern Way, LLC	Laurel, MD	1/30/2017	187,250		147,308
12	7915 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	95,700		85,070
13	8025 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	15,300		14,826
14	23275 Riverside Drive Owner, LLC	Southfield, MI	11/8/2017	52,000		51,997
15	23741 Pond Road Owner, LLC	Southfield, MI	11/8/2017	16,500		17,986
16	150 Steeplechase Way Owner, LLC	Largo, MD	1/10/2018	44,500		34,334
17	Olentangy Commons Owner LLC	Columbus, OH	6/1/2018	113,000		91,050
18	Villages of Wildwood Holdings LLC	Fairfield, OH	7/20/2018	46,500		57,531
19	Falling Creek Holdings LLC	Richmond, VA	8/8/2018	25,000		29,537
20	Lorring Owner LLC	Forestville, MD	10/30/2018	58,521		46,382
21	Hamptons Apartments Owner, LLC	Beachwood, OH	1/9/2019	96,500		78,813
22	5224 Long Road Holdings, LLC	Orlando, FL	6/28/2019	26,500		21,200
23	Druid Hills Holdings LLC	Atlanta, GA	7/30/2019	96,000		74,372
24	Sterling Place Holdings LLC	Columbus, OH	10/28/2019	41,500		34,196
25	SPCP Hampton LLC	Dallas, TX	11/2/2020	36,000		38,335
26	Palmetto Creek Holdings LLC	North Charleston, SC	11/10/2020	33,182		25,600
27	Valora at Homewood Holdings LLC	Homewood, AL	11/19/2020	81,250		62,379
28	NPRC Fairburn LLC	Fairburn, GA	12/14/2020	52,140		43,900
29	NPRC Taylors LLC	Taylors, SC	1/27/2021	18,762		13,910
30	Parkside at Laurel West Owner LLC	Spartanburg, SC	2/26/2021	57,005		41,608
31	Willows at North End Owner LLC	Spartanburg, SC	2/26/2021	23,255		18,421
32	SPCP Edge CL Owner LLC	Webster, TX	3/12/2021	34,000		25,496
33	Jackson Pear Orchard LLC	Ridgeland, MS	6/28/2021	50,900		42,836
34	Jackson Lakeshore Landing LLC	Ridgeland, MS	6/28/2021	22,600		17,896
35	Jackson Reflection Pointe LLC	Flowood, MS	6/28/2021	45,100		33,094
36	Jackson Crosswinds LLC	Pearl, MS	6/28/2021	41,400		38,476
37	Elliot Apartments Norcross, LLC	Norcross, GA	11/30/2021	128,000		106,850
38	Orlando 442 Owner, LLC (West Vue Apartments)	Orlando, FL	12/30/2021	97,500		62,223
39	NPRC Wolfchase LLC	Memphis, TN	3/18/2022	82,100		60,000
40	NPRC Twin Oaks LLC	Hattiesburg. MS	3/18/2022	44,850		37,145
41	NPRC Lancaster LLC	Birmingham, AL	3/18/2022	37,550		30,005
42	NPRC Rutland LLC	Macon, GA	3/18/2022	29,750		24,746
43	Southport Owner LLC (Southport Crossing)	Indianapolis, IN	3/29/2022	48,100		36,075
44	TP Cheyenne, LLC	Cheyenne, WY	5/26/2022	27,500		17,656
45	TP Pueblo, LLC	Pueblo, CO	5/26/2022	31,500		20,166
46	TP Stillwater, LLC	Stillwater, OK	5/26/2022	26,100		15,328
47	TP Kokomo, LLC	Kokomo, IN	5/26/2022	20,500		12,753
48	Terraces at Perkins Rowe JV LLC	Baton Rouge, LA	11/14/2022	41,400		29,322
49	NPRC Apex Holdings LLC	Cincinnati, OH	1/19/2024	34,225		27,712
50	NPRC Parkton Holdings LLC	Cincinnati, OH	1/19/2024	45,775		37,090
				$	2,222,716	$	1,915,734

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

As of June 30, 2026, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $896,889 and a fair value of $1,081,596. The real estate portfolio was comprised of forty-four multi-family properties, two student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of June 30, 2026:


No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
1	Taco Bell, OK	Yukon, OK	6/4/2014	$	1,719	$	—
2	Taco Bell, MO	Marshall, MO	6/4/2014	1,405		—
3	Abbie Lakes OH Partners, LLC	Canal Winchester, OH	9/30/2014	12,600		21,569
4	Kengary Way OH Partners, LLC	Reynoldsburg, OH	9/30/2014	11,500		22,945
5	Lakeview Trail OH Partners, LLC	Canal Winchester, OH	9/30/2014	26,500		43,656
6	Lakepoint OH Partners, LLC	Pickerington, OH	9/30/2014	11,000		25,935
7	Sunbury OH Partners, LLC	Columbus, OH	9/30/2014	13,000		21,372
8	Heatherbridge OH Partners, LLC	Blacklick, OH	9/30/2014	18,416		31,810
9	Jefferson Chase OH Partners, LLC	Blacklick, OH	9/30/2014	13,551		27,625
10	Goldenstrand OH Partners, LLC	Hilliard, OH	10/29/2014	7,810		17,195
11	Vesper Corpus Christi, LLC	Corpus Christi, TX	9/28/2016	14,250		9,905
12	Vesper Campus Quarters, LLC	Corpus Christi, TX	9/28/2016	18,350		13,000
13	9220 Old Lantern Way, LLC	Laurel, MD	1/30/2017	187,250		147,934
14	7915 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	95,700		85,465
15	8025 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	15,300		14,892
16	23275 Riverside Drive Owner, LLC	Southfield, MI	11/8/2017	52,000		52,245
17	23741 Pond Road Owner, LLC	Southfield, MI	11/8/2017	16,500		18,073
18	150 Steeplechase Way Owner, LLC	Largo, MD	1/10/2018	44,500		34,505
19	Olentangy Commons Owner LLC	Columbus, OH	6/1/2018	113,000		91,417
20	Villages of Wildwood Holdings LLC	Fairfield, OH	7/20/2018	46,500		57,729
21	Falling Creek Holdings LLC	Richmond, VA	8/8/2018	25,000		29,652
22	Lorring Owner LLC	Forestville, MD	10/30/2018	58,521		46,561
23	Hamptons Apartments Owner, LLC	Beachwood, OH	1/9/2019	96,500		79,107
24	5224 Long Road Holdings, LLC	Orlando, FL	6/28/2019	26,500		21,200
25	Druid Hills Holdings LLC	Atlanta, GA	7/30/2019	96,000		74,962
26	Sterling Place Holdings LLC	Columbus, OH	10/28/2019	41,500		34,196
27	SPCP Hampton LLC	Dallas, TX	11/2/2020	36,000		38,503
28	Palmetto Creek Holdings LLC	North Charleston, SC	11/10/2020	33,182		25,668
29	Valora at Homewood Holdings LLC	Homewood, AL	11/19/2020	81,250		62,718
30	NPRC Fairburn LLC	Fairburn, GA	12/14/2020	52,140		43,900
31	NPRC Taylors LLC	Taylors, SC	1/27/2021	18,762		13,980
32	Parkside at Laurel West Owner LLC	Spartanburg, SC	2/26/2021	57,005		41,817
33	Willows at North End Owner LLC	Spartanburg, SC	2/26/2021	23,255		18,519
34	SPCP Edge CL Owner LLC	Webster, TX	3/12/2021	34,000		25,496
35	Jackson Pear Orchard LLC	Ridgeland, MS	6/28/2021	50,900		42,975
36	Jackson Lakeshore Landing LLC	Ridgeland, MS	6/28/2021	22,600		17,955
37	Jackson Reflection Pointe LLC	Flowood, MS	6/28/2021	45,100		33,203
38	Jackson Crosswinds LLC	Pearl, MS	6/28/2021	41,400		38,601
39	Elliot Apartments Norcross, LLC	Norcross, GA	11/30/2021	128,000		106,850
40	Orlando 442 Owner, LLC (West Vue Apartments)	Orlando, FL	12/30/2021	97,500		62,223
41	NPRC Wolfchase LLC	Memphis, TN	3/18/2022	82,100		60,000
42	NPRC Twin Oaks LLC	Hattiesburg, MS	3/18/2022	44,850		37,105
43	NPRC Lancaster LLC	Birmingham, AL	3/18/2022	37,550		29,961
44	NPRC Rutland LLC	Macon, GA	3/18/2022	29,750		24,700
45	Southport Owner LLC (Southport Crossing)	Indianapolis, IN	3/29/2022	48,100		36,075
46	TP Cheyenne, LLC	Cheyenne, WY	5/26/2022	27,500		17,656
47	TP Pueblo, LLC	Pueblo, CO	5/26/2022	31,500		20,166
48	TP Stillwater, LLC	Stillwater, OK	5/26/2022	26,100		15,328
49	TP Kokomo, LLC	Kokomo, IN	5/26/2022	20,500		12,753
50	Terraces at Perkins Rowe JV LLC	Baton Rouge, LA	11/14/2022	41,400		29,403
51	NPRC Apex Holdings LLC	Cincinnati, OH	1/19/2024	34,225		27,712

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
52	NPRC Parkton Holdings LLC	Cincinnati, OH	1/19/2024	45,775		37,090
				$	2,255,316	$	1,943,307

Unconsolidated Significant Subsidiaries

Our investments are generally in small and mid-sized companies in a variety of industries. In accordance with Regulation S-X 3-09 and Regulation S-X 4-08(g), we must determine which of our unconsolidated controlled portfolio companies are considered “significant subsidiaries,” if any, as defined in Rule 1-02(w)(2) for BDC’s and closed end investment companies. Regulation S-X 3-09 requires separate audited financial statements of an unconsolidated subsidiary in an annual report. Regulation S-X 4-08(g) requires summarized financial information in an annual report.

Pursuant to Regulation S-X 10-01(b), Interim Financial Statements, summarized interim income statement information is required for an unconsolidated subsidiary within a quarterly report if the unconsolidated subsidiary would otherwise require separate audited financial statements within an annual report pursuant to Regulation S-X 3-09.

For the three months ended September 30, 2026 and September 30, 2025, NPRC was deemed to be a significant subsidiary due to income. The following table shows summarized income statement information for NPRC for the periods included in this quarterly report:


	Three Months Ended September 30,
Summary Statement of Operations	2026		2025
Total income	$	83,309	$	140,894
Operating expenses	(48,841)		(55,098)
Operating income	34,468		85,796
Interest expense	(30,679)		(43,785)
Depreciation and amortization	(24,299)		(26,547)
Fair value adjustment	(1,503)		(2,642)
Net Income (loss)	$	(22,013)	$	12,822

During the three months ended September 30, 2026 and September 30, 2025, First Tower Finance Company LLC (“First Tower Finance”) was deemed a significant subsidiary due to income. The following table shows First Tower Finance summarized income statement information for the periods included within this quarterly report:


	Three Months Ended September 30,
Summary Statement of Operations	2026		2025
Total income	$	101,060	$	88,288
Gross profit	$	30,569	$	26,018
Net Profit (loss)	$	4,852	$	3,056

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 4. Revolving Credit Facility

On May 15, 2007, we formed our wholly owned subsidiary, PCF, a Delaware limited liability company and a bankruptcy remote special purpose entity, which holds certain of our portfolio loan investments that are used as collateral for the revolving credit facility at PCF. Since origination of the revolving credit facility, we have renegotiated the terms and extended the commitments of the revolving credit facility several times. Most recently, effective June 28, 2024, we completed an extension and upsizing of the revolving credit facility (the “Revolving Credit Facility”). The lenders have extended commitments of $2,121,500 as of September 30, 2026. The Revolving Credit Facility includes an accordion feature which allows commitments to be increased up to $2,250,000 in the aggregate. The extension and upsizing of the Revolving Credit Facility extended the maturity date to June 28, 2029 and the revolving period through June 28, 2028, followed by an additional one-year amortization period, with distributions allowed to Prospect after the completion of the revolving period. During such one-year amortization period, all principal payments on the pledged assets will be applied to reduce the balance. At the end of the one-year amortization period, the remaining balance will become due.

The Revolving Credit Facility contains restrictions pertaining to the geographic and industry concentrations of funded loans, maximum size of funded loans, interest rate payment frequency of funded loans, maturity dates of funded loans and minimum equity requirements, among other items. The Revolving Credit Facility also contains certain requirements relating to portfolio performance, including required minimum portfolio yield and limitations on delinquencies and charge-offs, violation of which could result in the early termination of the Revolving Credit Facility. As of September 30, 2026, we were in compliance with the applicable covenants of the Revolving Credit Facility.

The interest rate on borrowings under the Revolving Credit Facility is one-month SOFR plus 205 basis points. Additionally, the lenders charge a fee on the unused portion of the revolving credit facility amount equal to either 40 basis points if more than 60% of the revolving credit facility amount is drawn, 70 basis points if more than 35% and an amount less than or equal to 60% of the revolving credit facility amount is drawn, or 150 basis points if an amount less than or equal to 35% of the revolving credit facility amount is drawn. The Revolving Credit Facility requires us to pledge assets as collateral in order to borrow under the Revolving Credit Facility. As of September 30, 2026, the investments, including cash and cash equivalents, used as collateral for the Revolving Credit Facility, had an aggregate fair value of $2,003,998, which represents 33.5% of our total investments, including cash and cash equivalents. These assets are held and owned by PCF, a bankruptcy remote special purpose entity, and, as such, these investments are not available to our general creditors. As additional eligible investments are transferred to PCF and pledged under the Revolving Credit Facility, PCF will generate additional availability up to the current commitment amount of $2,121,500.

For the three months ended September 30, 2026 and September 30, 2025, the average stated interest rate (i.e., rate in effect plus the spread) and average outstanding borrowings for the Revolving Credit Facility were as follows:


	Three Months Ended September 30,
		2026		2025
Average stated interest rate		5.73%		6.36%
Average outstanding balance		$	737,631	$	925,397

In connection with the origination and amendments of the Revolving Credit Facility, we incurred $38,278 of fees, all of which are being amortized over the term of the facility. As of September 30, 2026 and June 30, 2026, $12,940 and $14,128, respectively, of the fees remain to be amortized and is reflected as deferred financing costs on the Consolidated Statements of Assets and Liabilities.

During the three months ended September 30, 2026 and September 30, 2025, we recorded $14,507 and 18,411, respectively, of interest costs, unused fees and amortization of financing costs on the Revolving Credit Facility as interest expense.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 5. Public Notes

3.364% 2026 Notes

On May 27, 2021, we issued $300,000 aggregate principal amount of unsecured notes that mature on November 15, 2026 (the “3.364% 2026 Notes”). The 3.364% 2026 Notes bear interest at a rate of 3.364% per year, payable semi-annually on November 15, and May 15 of each year, beginning on November 15, 2021. Total proceeds from the issuance of the 3.364% 2026 Notes, net of underwriting discounts and offering costs, were $293,283.

During the three months ended September 30, 2026, we repurchased $1,266 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 99.24%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $73 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 3.364% 2026 Notes were $263,220 and $264,486, respectively.

3.437% 2028 Notes

On September 30, 2021, we issued $300,000 aggregate principal amount of unsecured notes that mature on October 15, 2028 (the “3.437% 2028 Notes”). The 3.437% 2028 Notes bear interest at a rate of 3.437% per year, payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2022. Total proceeds from the issuance of the 3.437% 2028 Notes, net of underwriting discounts and offering costs, were $291,798.

During the three months ended September 30, 2026, we repurchased $33,946 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 93.92%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,388 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 3.437% 2028 Notes were $220,803 and $254,749, respectively.

5.50% 2030 Notes

On October 30, 2025, we issued approximately $167,637 in aggregate principal amount of 5.50% Series A Notes due 2030 (the “5.50% 2030 Notes”) pursuant to a deed of trust, dated as of October 28, 2025, between the Company and Mishmeret Trust Company Ltd., as trustee (the “Deed of Trust”). The 5.50% 2030 Notes offering in Israel closed on October 30, 2025 and the 5.50% 2030 Notes are listed and commenced trading on the Tel Aviv Stock Exchange Ltd. (the “TASE”) on November 2, 2025. The 5.50% 2030 Notes are denominated in Israeli Shekels. After the deduction of offering discounts, fees and other offering expenses, we received net proceeds of approximately $159,531, which we used for the refinancing of existing indebtedness including, but not limited to, the repayment of borrowings under the Revolving Credit Facility.

The 5.50% 2030 Notes mature on December 31, 2030 and bear interest at a rate of 5.50% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2026.

After 60 days from the date on which the 5.50% 2030 Notes were listed for trading on the TASE, we may redeem the 5.50% 2030 Notes, at our option, in whole or in part, at any time or from time to time, at a redemption price equal to the greater of (i) par plus accrued and unpaid interest on the 5.50% 2030 Notes, if any, to, but excluding, the date of redemption, (ii) the average closing price of the 5.50% 2030 Notes over the 30 trading days preceding our Board of Directors’ resolution approving the redemption and (iii) the discounted value of the remaining payments under the 5.50% 2030 Notes, as set forth in the Deed of Trust.

The Deed of Trust contains other terms and conditions, including, without limitation, affirmative and negative covenants, such as minimum total equity (common equity plus preferred equity), a maximum ratio of net debt to total assets, a minimum ratio of total equity (common equity plus preferred equity) to total assets, and a negative pledge. These and other covenants are subject to important limitations and exceptions that are described in the Deed of Trust. In addition, the Deed of Trust contains customary events of default, with customary cure and notice periods, for a notes offering in Israel. Based on our Consolidated Statement of Assets and Liabilities as of September 30, 2026, we are in compliance with the financial covenants of the Deed of Trust. In connection with the issuance of the 5.50% 2030 Notes, the Company entered into foreign exchange forward contracts in an aggregate notional amount equal to the expected interest and principal payments under the 5.50% 2030 Notes.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

During the three months ended September 30, 2026, we repurchased $9,922 aggregate principal amount of the 5.50% 2030 Notes at a weighted average price of 93.96%, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $218 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 5.50% 2030 Notes.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 5.50% 2030 Notes were $167,755 and $182,153 respectively.

The 6.375% 2024 Notes, 2026 Notes, the 3.364% 2026 Notes, the 3.437% 2028 Notes, and the 5.50% 2030 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding.

In connection with the issuance of the Public Notes we recorded a discount of $11,522 and debt issuance costs of $11,718, which are being amortized over the term of the notes. As of September 30, 2026 and June 30, 2026, $3,887 and $5,099 of the original issue discount and $4,781 and $5,448, respectively, of the debt issuance costs remain to be amortized and are included as a reduction within Public Notes on the Consolidated Statement of Assets and Liabilities.

During the three months ended September 30, 2026 and September 30, 2025, we recorded $6,916 and $5,784, respectively, of interest costs and amortization of financing costs on the Public Notes as interest expense.

Note 6. Derivative Instruments

In connection with the issuance of the 5.50% 2030 Notes, the Company entered into a series of forward currency contracts designated as hedging instruments under ASC 815. The Company uses derivative instruments in connection with its risk management activities to reduce exposure to foreign currency exchange rate risk arising from foreign-denominated interest payments and foreign-denominated principal on the 5.50% 2030 Notes. Derivative instruments are carried at fair value on the Consolidated Statements of Assets and Liabilities.

The following table provides the terms and the estimated fair values of the Company’s derivative instruments, which are presented as separate asset and liability values, if applicable, on a gross basis within the corresponding line items in the Consolidated Statements of Assets and Liabilities as of September 30, 2026:


Derivative Instruments	Notional Amount to be Purchased	Notional Amount to be Sold		Maturity Date Range	Gross Fair Value of Recognized Assets		Consolidated Statement of Assets and Liabilities Location	Gross Fair Value Amount of Recognized Liabilities		Consolidated Statement of Assets and Liabilities Location
Forward Contracts designated as cash flow hedging instruments	ILS 120,547	$	38,250	December 24, 2026 - December 23, 2030	$	2,526	Derivative Assets	$	—	Derivative Liabilities
Forward Contracts designated as fair value hedging instruments	ILS 515,710	$	168,710	December 23, 2030	$	11,847	Derivative Assets	$	—	Derivative Liabilities
					$	14,373		$	—

The following table summarizes the impact that changes in the fair values of derivatives designated as fair value hedges on earnings and reclassification of derivatives designated as cash flow hedges into earnings:


			Three Months Ended September 30,
Derivative Instruments	Consolidated Statement of Operations Location	Effect of Derivative Instruments		2026		2025
Forward Contracts designated as cash flow hedging instruments	Interest Expense	Total gain (loss) reclassified from accumulated other comprehensive income (loss)		$	348	$	—
Forward Contracts designated as fair value hedging instruments (1)	Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions	Gain (loss) recognized in Income		$	4,384	$	—

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(1) As of September 30, 2026, the net carrying value of the 5.50% 2030 Notes designated as the hedged item in the fair value hedge of the principal was $161,354. Because the hedge is designated for foreign currency exchange risk, the related changes in the 5.50% 2030 Notes’ net carrying value arose from foreign currency remeasurement, with offsetting changes in the related forward contract recognized in Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions.

During the three months ended September 30, 2026, the Company repurchased ILS 30,000 of the 5.50% 2030 Notes and amended its forward contracts to reduce their notional amounts proportionally. The Company received $810 for the terminated portions, of which $159 related to the cash flow hedges and $651 to the fair value hedge. Because the forecasted interest payments on the repurchased notes will not occur, the $159 was reclassified from accumulated other comprehensive income (loss) into interest expense. Hedge accounting continues for the remaining forward contracts.

During the three months ended September 30, 2026, we reclassified net gains of $348 from accumulated other comprehensive income (loss) into earnings as a decrease to interest expense. This consisted of $189 related to hedged interest payments that affected earnings during the period, into earnings as a decrease to interest expense. As of September 30, 2026, the estimated amount of net gains recognized in accumulated other comprehensive income (loss) that are expected to be reclassified into earnings as a decrease to interest expense, net within the next 12 months is approximately $509.

The Company's foreign currency forward contracts are transacted with a single counterparty under an International Swaps and Derivatives Association ("ISDA") Master Agreement providing for netting upon default or early termination. The Company has elected not to offset assets and liabilities in the Consolidated Statements of Assets and Liabilities that may be received or paid as part of collateral arrangements. The following table presents the offsetting of the Company's derivative instruments as of September 30, 2026.


	Gross Amounts of Recognized Assets (Liabilities)		Gross Amounts Offset in the Consolidated Statement of Assets and Liabilities		Net Amounts Presented in the Consolidated Statement of Assets and Liabilities		Gross Amounts of Financial Instruments Not Offset in Consolidated Statements of Assets and Liabilities		Gross Amounts of Cash Collateral Received (Pledged) from Counterparty Not Offset in Consolidated Statements of Assets and Liabilities		Net Amount
Derivative assets:
Foreign currency forward contracts	$	14,373	$	—	$	14,373	$	—	$	—	$	14,373
Total derivative assets	$	14,373	$	—	$	14,373	$	—	$	—	$	14,373

Derivative liabilities:
Foreign currency forward contracts	$	—	$	—	$	—	$	—	$	—	$	—
Total derivative liabilities	$	—	$	—	$	—	$	—	$	—	$	—

The Company is required to post collateral if the Company is in a net liability position with its counterparty in excess of $250. As of September 30, 2026, the Company posted collateral of $0, which is included in restricted cash, within cash and cash equivalents on the Consolidated Statements of Assets and Liabilities. The Company also does not offset the fair value of derivative instruments against cash collateral posted or received.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 7. Prospect Capital InterNotes®

On February 13, 2020, we entered into a selling agent agreement with InspereX LLC (formerly known as “Incapital LLC”) (as amended, the “Selling Agent Agreement”), authorizing the issuance and sale from time to time of up to $1,000,000 of Prospect Capital InterNotes® (collectively with previously authorized selling agent agreements, the “InterNotes® Offerings”). On February 6, 2026, our Board of Directors reauthorized $1,000,000 of Prospect Capital InterNotes® for sale under the Selling Agent Agreement. Additional agents may be appointed by us from time to time in connection with the InterNotes® Offering and become parties to the Selling Agent Agreement. Certain notes issued through the InterNotes® Offerings have been repaid and we have, from time to time, repurchased or redeemed such other notes and, therefore, as of September 30, 2026 $598,228 aggregate principal amount of Prospect Capital InterNotes® were outstanding.

These notes are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. These notes bear interest at fixed interest rates and offer a variety of maturities no less than twelve months from the original date of issuance.

During the three months ended September 30, 2026, we issued $805 aggregate principal amount of Prospect Capital InterNotes® for net proceeds of $793. These notes were issued with stated interest rates ranging from 6.00% to 6.75% with a weighted average interest rate of 6.30%. These notes will mature between July 15, 2029 and August 15, 2033. The following table summarizes the Prospect Capital InterNotes® issued during the three months ended September 30, 2026:


Tenor at Origination (in years)	Principal Amount		Interest Rate Range	Weighted Average Interest Rate	Maturity Date Range
3	$	426	6.00% – 6.25%	6.05%	July 15, 2029 – September 15, 2029
5	121		6.25% – 6.50%	6.34%	July 15, 2031 – September 15, 2031
7	258		6.50% – 6.75%	6.69%	July 15, 2033 – August 15, 2033
	$	805

During the three months ended September 30, 2025, we issued $7,868 aggregate principal amount of our Prospect Capital InterNotes® for net proceeds of $7,752. These notes were issued with stated interest rates ranging from 6.25% to 8.00% with a weighted average interest rate of 7.42%. These notes will mature between July 15, 2028 and October 15, 2032. The following table summarizes the Prospect Capital InterNotes® issued during the three months ended September 30, 2025:


Tenor at Origination (in years)	Principal Amount		Interest Rate	Weighted Average Interest Rate		Maturity Date Range
3	$	4,213	6.25% - 7.50%	7.18%		July 15, 2028 – October 15, 2028
5	1,076		6.50% - 7.75%	7.61%		July 15, 2030 – October 15, 2030

7	2,579		6.75% - 8.00%	7.72	%	July 15, 2032 – October 15, 2032


	$	7,868

During the three months ended September 30, 2026, we repaid $2,174 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option of the InterNotes®. During the three months ended September 30, 2026, $15,282 aggregate principal amount of Prospect Capital InterNotes® with a weighted average interest rate of 2.42% matured and were repaid at par. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended September 30, 2026 was $50.

The following table summarizes the Prospect Capital InterNotes® outstanding as of September 30, 2026:

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


Tenor at Origination (in years)	Principal Amount		Interest Rate Range	Weighted Average Interest Rate	Maturity Date Range
3	$	122,164	6.00% – 7.50%	6.81%	January 15, 2027 – September 15, 2029
5	150,214		2.25% – 7.75%	6.03%	October 15, 2026 – September 15, 2031
6	18,232		3.00% – 6.25%	3.56%	June 15, 2027 – November 15, 2029
7	41,454		2.75% – 8.00%	4.66%	January 15, 2028 – August 15, 2033
8	3,090		3.40% – 3.50%	3.45%	June 15, 2029 – July 15, 2029
10	160,358		3.15% – 8.00%	5.91%	August 15, 2029 – December 15, 2034
12	11,899		3.70% – 4.00%	3.94%	June 15, 2033 – July 15, 2033
15	11,845		3.50% – 4.50%	3.85%	July 15, 2036 – February 15, 2037
18	2,839		4.50% – 5.50%	4.82%	January 15, 2031 – April 15, 2031
20	3,864		5.75% – 7.50%	6.23%	November 15, 2032 – November 15, 2043
25	7,168		6.25% – 6.50%	6.37%	November 15, 2038 – May 15, 2039
30	65,101		4.00% – 6.63%	5.44%	November 15, 2042 – March 15, 2052
Principal Outstanding	$	598,228

Unamortized Debt Issuance	(6,965)
Carrying Amount	$	591,263

During the three months ended September 30, 2025, we repaid $3,264 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined in the InterNotes® Offering prospectus. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended September 30, 2025 was $77.

The following table summarizes the Prospect Capital InterNotes® outstanding as of June 30, 2026:


Tenor at Origination (in years)	Principal Amount		Interest Rate Range	Weighted Average Interest Rate	Maturity Date Range
3	$	121,738	6.00% - 7.50%	6.81%	January 15, 2027 – July 15, 2029
5	165,432		2.25% - 7.75%	5.70%	July 15, 2026 – June 15, 2031
6	18,232		3.00% - 6.25%	3.56%	June 15, 2027 – November 15, 2029
7	41,353		2.75% - 8.00%	4.65%	January 15, 2028 – June 15, 2033
8	3,090		3.40% - 3.50%	3.45%	June 15, 2029 – July 15, 2029
10	160,770		3.15% - 8.00%	5.89%	August 15, 2029 – December 15, 2034
12	12,101		3.70% - 4.00%	3.94%	June 15, 2033 – July 15, 2033
15	12,340		3.50% - 4.50%	3.84%	July 15, 2036 – February 15, 2037
18	2,839		4.50% - 5.50%	4.82%	January 15, 2031 – April 15, 2031
20	3,864		5.75% - 7.50%	6.23%	November 15, 2032 – November 15, 2043
25	7,168		6.25% - 6.50%	6.37%	November 15, 2038 – May 15, 2039
30	65,952		4.00% - 6.63%	5.42%	November 15, 2042 – March 15, 2052
Principal Outstanding	$	614,879

Unamortized debt issuance	(7,399)
Carrying Amount	$	607,480

During the three months ended September 30, 2026 and 2025, we recorded $9,213 and $9,492, respectively, of interest costs and amortization of financing costs on the Prospect Capital InterNotes® as interest expense.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 8. Fair Value and Maturity of Debt Outstanding

As of September 30, 2026, our asset coverage ratio stood at 387.7% based on the outstanding principal amount of our senior securities representing indebtedness of $1,537,158 and our asset coverage ratio on our senior securities that are stock was 184.9%. As of June 30, 2026, our asset coverage ratio stood at 339.4% based on the outstanding principal amount of our senior securities representing indebtedness of $1,878,595 and our asset coverage ratio on our senior securities that are stock was 177.6%. See Note 9. Equity Offerings, Offering Expenses and Distributions for additional discussion on our senior securities that are stock.

Information about our senior securities is shown in the following table as of the end of each of the last ten fiscal years and as of September 30, 2026:


	Total Amount Outstanding(1)		Asset Coverage per Unit(2)		Involuntary Liquidating Preference per Unit	Average Market Value per Unit(3)
Credit Facility
Fiscal 2027 (as of September 30, 2026)	$	287,152	$	20,754	—	—
Fiscal 2026 (as of June 30, 2026)	562,328		11,340		—	—
Fiscal 2025 (as of June 30, 2025)	856,322		7,846		—	—
Fiscal 2024 (as of June 30, 2024)	794,796		9,746		—	—
Fiscal 2023 (as of June 30, 2023)	1,014,703		7,639		—	—
Fiscal 2022 (as of June 30, 2022)	839,464		9,015		—	—
Fiscal 2021 (as of June 30, 2021)	356,937		17,408		—	—
Fiscal 2020 (as of June 30, 2020)	237,536		22,000		—	—
Fiscal 2019 (as of June 30, 2019)	167,000		34,298		—	—
Fiscal 2018 (as of June 30, 2018)	37,000		155,503		—	—
Fiscal 2017 (as of June 30, 2017)	—		—		—	—




2017 Notes(4)
Fiscal 2017 (as of June 30, 2017)	$	50,734	$	2,251	—	—


2018 Notes(5)
Fiscal 2017 (as of June 30, 2017)	$	85,419	$	2,251	—	—


2019 Notes(6)
Fiscal 2018 (as of June 30, 2018)	$	101,647	$	2,452	—	—
Fiscal 2017 (as of June 30, 2017)	200,000		2,251		—	—


5.00% 2019 Notes(7)
Fiscal 2018 (as of June 30, 2018)	$	153,536	$	2,452	—	—
Fiscal 2017 (as of June 30, 2017)	300,000		2,251		—	—


2020 Notes(10)
Fiscal 2019 (as of June 30, 2019)	$	224,114	$	2,365	—	—
Fiscal 2018 (as of June 30, 2018)	392,000		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	392,000		2,251		—	—

2022 Notes(14)
Fiscal 2022 (as of June 30, 2022)	$	60,501	$	2,733	—	—
Fiscal 2021 (as of June 30, 2021)	111,055		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	258,240		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	328,500		2,365		—	—
Fiscal 2018 (as of June 30, 2018)	328,500		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	225,000		2,251		—	—

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Total Amount Outstanding(1)		Asset Coverage per Unit(2)		Involuntary Liquidating Preference per Unit	Average Market Value per Unit(3)
2023 Notes(8)(15)
Fiscal 2022 (as of June 30, 2022)	$	284,219	$	2,733	—	—
Fiscal 2021 (as of June 30, 2021)	284,219		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	319,145		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	318,863		2,365		—	—
Fiscal 2018 (as of June 30, 2018)	318,675		2,452		—	—
Fiscal 2017 (as of June 30, 2017)	248,507		2,251		—	—

2024 Notes(11)
Fiscal 2020 (as of June 30, 2020)	$	233,788	$	2,408	—	$	959
Fiscal 2019 (as of June 30, 2019)	234,443		2,365		—	1,002
Fiscal 2018 (as of June 30, 2018)	199,281		2,452		—	1,029
Fiscal 2017 (as of June 30, 2017)	199,281		2,251		—	1,027

6.375% 2024 Notes(8)(16)
Fiscal 2023 (as of June 30, 2023)	$	81,240	$	2,970	—	—
Fiscal 2022 (as of June 30, 2022)	81,240		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	81,389		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	99,780		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	99,726		2,365		—	—

2025 Notes(17)
Fiscal 2024 (as of June 30, 2024)	$	156,168	$	3,155	—	—
Fiscal 2023 (as of June 30, 2023)	156,168		2,970		—	—
Fiscal 2022 (as of June 30, 2022)	156,168		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	156,168		2,740		—	—
Fiscal 2020 (as of June 30, 2020)	201,250		2,408		—	—
Fiscal 2019 (as of June 30, 2019)	201,250		2,365		—	—

2026 Notes(18)
Fiscal 2024 (as of June 30, 2024)	$	400,000	$	3,155	—	—
Fiscal 2023 (as of June 30, 2023)	400,000		2,970		—	—
Fiscal 2022 (as of June 30, 2022)	400,000		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	400,000		2,740		—	—

3.364% 2026 Notes
Fiscal 2027 (as of September 30, 2026)	$	263,220	$	3,877	—	—
Fiscal 2026 (as of June 30, 2026)	264,486		3,394		—	—
Fiscal 2025 (as of June 30, 2025)	300,000		3,194		—	—
Fiscal 2024 (as of June 30, 2024)	300,000		3,155		—	—
Fiscal 2023 (as of June 30, 2023)	300,000		2,970		—	—
Fiscal 2022 (as of June 30, 2022)	300,000		2,733		—	—
Fiscal 2021 (as of June 30, 2021)	300,000		2,740		—	—

3.437% 2028 Notes
Fiscal 2027 (as of September 30, 2026)	$	220,803	$	3,877	—	—
Fiscal 2026 (as of June 30, 2026)	254,749		3,394		—	—
Fiscal 2025 (as of June 30, 2025)	300,000		3,194		—	—
Fiscal 2024 (as of June 30, 2024)	300,000		3,155		—	—
Fiscal 2023 (as of June 30, 2023)	300,000		2,970		—	—
Fiscal 2022 (as of June 30, 2022)	300,000		2,733		—	—

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Total Amount Outstanding(1)		Asset Coverage per Unit(2)		Involuntary Liquidating Preference per Unit		Average Market Value per Unit(3)
2028 Notes(12)
Fiscal 2020 (as of June 30, 2020)	$	70,761	$	2,408	—		$	950
Fiscal 2019 (as of June 30, 2019)	70,761		2,365		—		984
Fiscal 2018 (as of June 30, 2018)	55,000		2,452		—		1,004

2029 Notes(13)
Fiscal 2021 (as of June 30, 2021)	$	69,170	$	2,740	—		$	1,028
Fiscal 2020 (as of June 30, 2020)	69,170		2,408		—		970
Fiscal 2019 (as of June 30, 2019)	69,170		2,365		—		983

5.50% 2030 Notes(19)
Fiscal 2027 (as of September 30, 2026)	$	167,755	$	3,877	—		$	93.60
Fiscal 2026 (as of June 30, 2026)	182,153		3,394		—		$	91.65

Prospect Capital InterNotes®
Fiscal 2027 (as of September 30, 2026)	$	598,228	$	3,877	—		—
Fiscal 2026 (as of June 30, 2026)	614,879		3,394		—		—
Fiscal 2025 (as of June 30, 2025)	647,232		3,194		—		—
Fiscal 2024 (as of June 30, 2024)	504,028		3,155		—		—
Fiscal 2023 (as of June 30, 2023)	358,105		2,970		—		—
Fiscal 2022 (as of June 30, 2022)	347,564		2,733		—		—
Fiscal 2021 (as of June 30, 2021)	508,711		2,740		—		—
Fiscal 2020 (as of June 30, 2020)	680,229		2,408		—		—
Fiscal 2019 (as of June 30, 2019)	707,699		2,365		—		—
Fiscal 2018 (as of June 30, 2018)	760,924		2,452		—		—
Fiscal 2017 (as of June 30, 2017)	980,494		2,251		—		—

Floating Rate Preferred Stock
Fiscal 2027 (as of September 30, 2026)	$	214,249	$	46	$	25	$	—
Fiscal 2026 (as of June 30, 2026)	219,601		44		25		—
Fiscal 2025 (as of June 30, 2025)	229,771		43		25		—
Fiscal 2024 (as of June 30, 2024)	129,198		46		25		—

7.50% Preferred Stock
Fiscal 2027 (as of September 30, 2026)	$	150,403	$	46	$	25	$	—
Fiscal 2026 (as of June 30, 2026)	129,630		44		25		—
Fiscal 2025 (as of June 30, 2025)	51,575		43		25		—

6.50% Preferred Stock
Fiscal 2027 (as of September 30, 2026)	$	600,081	$	46	$	25	$	—
Fiscal 2026 (as of June 30, 2026)	611,574		44		25		—
Fiscal 2025 (as of June 30, 2025)	659,069		43		25		—
Fiscal 2024 (as of June 30, 2024)	704,044		46		25		—
Fiscal 2023 (as of June 30, 2023)	533,216		47		25		—

5.50% Preferred Stock
Fiscal 2027 (as of September 30, 2026)	$	587,549	$	46	$	25	—
Fiscal 2026 (as of June 30, 2026)	617,980		44		25		—
Fiscal 2025 (as of June 30, 2025)	701,205		43		25		—
Fiscal 2024 (as of June 30, 2024)	772,133		46		25		—
Fiscal 2023 (as of June 30, 2023)	870,268		47		25		—
Fiscal 2022 (as of June 30, 2022)	590,197		54		25		—

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Total Amount Outstanding(1)		Asset Coverage per Unit(2)		Involuntary Liquidating Preference per Unit		Average Market Value per Unit(3)
Fiscal 2021 (as of June 30, 2021)	137,040		65		25		—

5.35% Preferred Stock
Fiscal 2027 (as of September 30, 2026)	$	133,982	$	46	$	25	$	15.13
Fiscal 2026 (as of June 30, 2026)	132,920		44		25		16.35
Fiscal 2025 (as of June 30, 2025)	131,279		43		25		17.12
Fiscal 2024 (as of June 30, 2024)	131,279		46		25		17.25
Fiscal 2023 (as of June 30, 2023)	149,066		47		25		15.98
Fiscal 2022 (as of June 30, 2022)	150,000		54		25		21.08

All Senior Securities(8)(9)
Fiscal 2027 (as of September 30, 2026)	$	3,223,422	$	1,849	—		—
Fiscal 2026 (as of June 30, 2026)	3,590,300		1,776		—		—
Fiscal 2025 (as of June 30, 2025)	3,876,453		1,733		—		—
Fiscal 2024 (as of June 30, 2024)	4,191,646		1,848		—		—
Fiscal 2023 (as of June 30, 2023)	4,162,766		1,862		—		—
Fiscal 2022 (as of June 30, 2022)	3,509,353		2,156		—		—
Fiscal 2021 (as of June 30, 2021)	2,404,689		2,584		—		—
Fiscal 2020 (as of June 30, 2020)	2,169,899		2,408		—		—
Fiscal 2019 (as of June 30, 2019)	2,421,526		2,365		—		—
Fiscal 2018 (as of June 30, 2018)	2,346,563		2,452		—		—
Fiscal 2017 (as of June 30, 2017)	2,681,435		2,251		—		—

(1) Except for the per unit data noted in footnote 2 and 3 below, the total amount of each class of senior securities outstanding at the end of the year/period presented (in 000’s).

(2)The asset coverage ratio for a class of secured senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by secured senior securities representing indebtedness. The asset coverage ratio for a class of unsecured senior securities representing indebtedness is inclusive of all senior securities representing indebtedness. With respect to the senior securities represented by indebtedness, this asset coverage ratio is multiplied by $1,000 to determine the Asset Coverage Per Unit. The asset coverage ratio for a class of senior securities representing preferred stock is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the sum of all senior securities representing indebtedness and the involuntary liquidation preference of senior securities representing preferred stock (the “Total Asset Coverage Ratio”). With respect to the Preferred Stock, the Asset Coverage Per Unit figure is expressed in terms of a dollar amount per share of outstanding Preferred Stock (based on a per share liquidation preference of $25). The rows reflecting “All Senior Securities” reflect the Total Asset Coverage Ratio as the asset coverage ratio, and express Asset Coverage Per Unit as per $1,000 of indebtedness or per $1,000 of Preferred Stock liquidation preference.

(3)This column is inapplicable, except for the 2024 Notes, the 2028 Notes, the 2029 Notes, and the 5.35% Preferred Stock. Our 5.50% 2030 Notes are registered for public trading in Israel on the TASE under the ticker symbol “PSEC.B1”, but are not registered for public trading in the U.S. The average market value per unit of the U.S. traded securities is calculated as an average of quarter-end prices. With respect to the senior securities represented by indebtedness, the market value is shown per $1,000 of indebtedness.

(4)We repaid the outstanding principal amount of the 2017 Notes on October 15, 2017.

(5)We repaid the outstanding principal amount of the 2018 Notes on March 15, 2018.

(6)We repaid the outstanding principal amount of the 2019 Notes on January 15, 2019.

(7)We redeemed the 5.00% 2019 Notes on September 26, 2018.

(8)For the fiscal years ended June 30, 2020 or prior, the 2023 Notes and 6.375% 2024 Notes are presented net of unamortized discount.

(9)While we do not consider undrawn commitments to fund under revolving or delayed draw arrangements or our guarantees of portfolio company obligations to be Senior Securities, if we were to elect to treat such unfunded commitments, which were $118,033 as of September 30, 2026 as Senior Securities for purposes of Section 18 of the 1940 Act, our asset coverage per unit would be $1,783. None of the portfolio company obligation guarantees are recorded as a liability on the Company’s Consolidated Statement of Assets and Liabilities, as such portfolio company liabilities are considered in the valuation of the investments in such portfolio companies.

(10)We repaid the outstanding principal amount of the 2020 Notes on April 15, 2020.

(11)We redeemed the 2024 Notes on February 16, 2021.

(12)We redeemed the 2028 Notes on June 15, 2021.

(13)We redeemed the 2029 Notes on December 30, 2021.

(14)We redeemed the 2022 Notes on July 15, 2022.

(15)We redeemed the 2023 Notes on March 15, 2023.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(16)We redeemed the 6.375% 2024 Notes on January 16, 2024.

(17)We repaid the outstanding principal amount of the 2025 Notes on March 3, 2025.

(18)We redeemed the 2026 Notes on June 18, 2025.

(19)The 5.50% 2030 Notes are denominated in Israeli Shekels and remeasured to the Company’s functional and reporting currency, U.S. Dollars, each reporting period date in accordance with ASC 830.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The following table shows our outstanding debt as of September 30, 2026:


		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value			Fair Value			Effective Interest Rate
Revolving Credit Facility		$	287,152	$	12,940	$	287,152	(1)	$	287,152	(2)	1M SOFR +	2.05%		(5)





3.364%	2026 Notes	263,220		164		263,056			261,704		(3)	3.86		%	(6)
3.437%	2028 Notes	220,803		2,103		218,700			205,367		(3)	3.92		%	(6)
5.50%	2030 Notes	167,755		6,401		161,354			157,019		(3)	6.76		%	(6)
Public Notes		651,778				643,110			624,090

Prospect Capital InterNotes®		598,228		6,965		591,263			552,434		(4)	6.14		%	(7)
Total		$	1,537,158			$	1,521,525		$	1,463,676

(1)Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details.

(2)The fair value of the Revolving Credit Facility is equal to its carrying value because the revolver is a floating rate facility that reprices to a market rate frequently. The fair value is categorized as Level 2 under ASC 820.

(3)We use available market quotes or readily observable transparent prices to estimate the fair value of the Public Notes. The fair value of these debt obligations are categorized as Level 1 under ASC 820.

(4)The fair value of Prospect Capital InterNotes® is estimated by discounting remaining payments using current Treasury rates plus spread based on observable market inputs. The fair value of these debt obligations are categorized as Level 3 under ASC 820.

(5)Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation.

(6)The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs.

(7)For the Prospect Capital InterNotes®, the rate presented is the weighted average effective interest rate. Interest expense and deferred debt issuance costs, which are amortized on a straight-line method over the stated life of the obligation which approximates level yield, are weighted against the outstanding principal balance.

The following table shows our outstanding debt as of June 30, 2026:


		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value			Fair Value			Effective Interest Rate
Revolving Credit Facility		$	562,328	$	14,128	$	562,328	(1)	$	562,328	(2)	1M SOFR +	2.05	%	(5)

3.364%	2026 Notes	264,486		435		264,051			261,169		(3)	3.89		%	(6)
3.437%	2028 Notes	254,749		2,743		252,006			239,729		(3)	3.97		%	(6)
5.500%	2030 Notes	182,153		7,369		174,784			165,650			6.76		%	(6)
Public Notes		701,388				690,841			666,548

Prospect Capital InterNotes®		614,879		7,399		607,480			588,081		(4)	6.04		%	(7)
Total		$	1,878,595			$	1,860,649		$	1,816,957

(1)Net Carrying Value excludes deferred financing costs associated with the Revolving Credit Facility. See Note 2 for accounting policy details.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(3)We use available market quotes to estimate the fair value of the Public Notes. The fair value of these debt obligations are categorized as Level 1 under ASC 820.

(5)Represents the rate on drawn down and outstanding balances. Deferred debt issuance costs are amortized on a straight-line method over the stated life of the obligation.

(6)The effective interest rate is equal to the effect of the stated interest, the accretion of original issue discount and amortization of debt issuance costs.

The following table shows the contractual maturities by fiscal year of our Revolving Credit Facility, Public Notes and Prospect Capital InterNotes® as of September 30, 2026:


	Payments Due by Fiscal Year ending June 30,
	Total		2027		2028		2029		2030		2031		After 5 Years
Revolving Credit Facility	$	287,152	$	—	$	—	$	287,152	$	—	$	—	$	—

Public Notes	651,778		263,220		—		220,803		—		167,755		—
Prospect Capital InterNotes®	598,228		143,389		50,575		116,473		27,865		57,105		202,821
Total Contractual Obligations	$	1,537,158	$	406,609	$	50,575	$	624,428	$	27,865	$	224,860	$	202,821

We may from time to time seek to cancel or purchase our outstanding debt through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. The amounts involved may be material. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including secured debt, unsecured debt and/or debt securities convertible into common stock. Any such purchases or exchanges of outstanding debt would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 9. Equity Offerings, Offering Expenses, and Distributions

On February 10, 2026, we filed a registration statement on Form N-2 (File No. 333-293349) that became effective upon filing pursuant to Rule 462(e) under the Securities Act, and which replaced our previously effective registration statement on Form N-2 that had been filed on February 10, 2023 and which also became effective upon filing pursuant to Rule 462(e) under the Securities Act. The registration statement permits us to issue, through one or more transactions, an indeterminate amount of securities, consisting of common stock, preferred stock, debt securities, subscription rights to purchase our securities, warrants representing rights to purchase our securities or separately tradable units combining two or more of our securities.

Preferred Stock

On August 3, 2020, we entered into a Dealer Manager Agreement with Preferred Capital Securities, LLC (“PCS”), as amended on June 9, 2022, October 7, 2022, February 10, 2023, December 29, 2023, October 17, 2024, December 27, 2024, and February 10, 2026, pursuant to which PCS has agreed to serve as the Company’s agent, principal distributor and dealer manager for the Company’s offering of up to 105,858,302 shares, par value $0.001 per share, of preferred stock, with a liquidation preference of $25.00 per share. Such preferred stock may be issued in multiple series, including the 5.50% Series A1 Preferred Stock (“Series A1 Preferred Stock”), the 5.50% Series M1 Preferred Stock (“Series M1 Preferred Stock”), the 5.50% Series M2 Preferred Stock (“Series M2 Preferred Stock”), the 6.50% Series A3 Preferred Stock (“Series A3 Preferred Stock”), the 6.50% Series M3 Preferred Stock (“Series M3 Preferred Stock” and, together with the Series M1 Preferred Stock and the Series M2 Preferred Stock, the “Series M Preferred Stock”, and the Series M3 Preferred Stock, together with the Series A3 Preferred Stock, the “6.50% Preferred Stock”), the Floating Rate Series A4 Preferred Stock (“Series A4 Preferred Stock”), the Floating Rate Series M4 Preferred Stock (“Series M4 Preferred Stock,” and together with the Series A4 Preferred Stock, the “Floating Rate Preferred Stock”), the 7.50% Series A5 Preferred Stock (“Series A5 Preferred Stock”), and the 7.50% Series M5 Preferred Stock (“Series M5 Preferred Stock,” and together with the Series A5 Preferred Stock, the “7.50% Preferred Stock”). However, as disclosed in the Supplement No. 1 dated September 6, 2024 and Supplement No. 3 dated December 27, 2024 to the Prospectus Supplement dated December 29, 2023, the Company is no longer offering the Series A1 Preferred Stock, the Series M1 Preferred Stock, the Series M2 Preferred Stock, the Series A3 Preferred Stock, the Series M3 Preferred Stock, and the Floating Rate Preferred Stock and, as a result, any additional preferred stock offered under this offering will be only in any combination of our 7.50% Preferred Stock, which are not convertible. In connection with such offering, on August 3, 2020, June 9, 2022, October 11, 2022, February 10, 2023, December 28, 2023 (two filings), October 17, 2024, and December 27, 2024 we filed Articles Supplementary with the State Department of Assessments and Taxation of Maryland (“SDAT”), reclassifying and designating 120,000,000, 60,000,000, 120,000,000, 60,000,000, 160,000,000, 40,000,000, 20,000,000, and 180,000,000 shares, respectively, of the Company’s authorized and unissued shares of common stock into shares of preferred stock.

On May 19, 2021, we entered into an Underwriting Agreement with UBS Securities LLC, relating to the offer and sale of 187,000 shares, par value $0.001 per share, of 5.50% Series A2 Preferred Stock, with a liquidation preference of $25.00 per share (the “Series A2 Preferred Stock”, and together with the Series A1 Preferred Stock, Series M1 Preferred Stock and Series M2 Preferred Stock, the “5.50% Preferred Stock”). The issuance of the Series A2 Preferred Stock settled on May 26, 2021. In connection with such offering, on May 19, 2021, we filed Articles Supplementary with the SDAT, reclassifying and designating an additional 1,000,000 shares of the Company’s authorized and unissued shares of common stock into shares of preferred stock as Convertible Preferred Stock.

In connection with the offerings of the 5.50% Preferred Stock, the 6.50% Preferred Stock, the Floating Rate Preferred Stock, and the 7.50% Preferred Stock, we adopted and amended, respectively, a preferred stock dividend reinvestment plan (the “Preferred Stock Plan” or the “Preferred Stock DRIP”), pursuant to which (i) holders of the Floating Rate Preferred Stock and the 7.50% Preferred Stock will have dividends on their Floating Rate Preferred Stock and 7.50% Preferred Stock reinvested in additional shares of such Floating Rate Preferred Stock and 7.50% Preferred Stock at a price per share of $25.00 and (ii) holders of the 5.50% Preferred Stock and the 6.50% Preferred Stock will have dividends on their 5.50% Preferred Stock and 6.50% Preferred Stock automatically reinvested in additional shares of such 5.50% Preferred Stock and 6.50% Preferred Stock at a price per share of $23.75 (95% of the stated value of $25.00 per share), if they elect.

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Series A3 Preferred Stock and the Series A2 Preferred Stock, “Settlement Amount” means (A) $25.00 per share (the “Stated Value”), plus (B) unpaid dividends accrued to, but not including, the Holder Conversion Exercise Date, minus (C) the applicable Holder Optional Conversion Fee for the respective Holder Conversion Deadline. For the Series M Preferred Stock, “Settlement Amount” means (A) the Stated Value, plus (B) unpaid dividends accrued to, but not including, the Holder Conversion Exercise Date, minus (C) the applicable Series M Clawback, if any. “Series M Clawback”, if applicable, means an amount equal to the aggregate amount of all dividends, whether paid or accrued, on such share of Series M stock in the three full months prior to the Holder Conversion Exercise Date. Subject to certain limited exceptions, we will not pay any portion of the Settlement Amount in cash (other than cash in lieu of fractional shares of our common stock) until the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock has been issued. Beginning on the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock is issued, we may elect to settle all or a portion of any Holder Optional Conversion in cash without limitation or restriction. The right of holders to convert a share of 5.50% Preferred Stock or 6.50% Preferred Stock will terminate upon the listing of such share on a national securities exchange. Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock do not have a Holder Optional Conversion feature.

Subject to certain limited exceptions allowing earlier redemption, beginning on the earlier of the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock has been issued, or the two year anniversary of the date on which a share of Floating Rate Preferred Stock or 7.50% Preferred Stock has been issued or, for listed shares of 5.50% Preferred Stock or 6.50% Preferred Stock, five years from the earliest date on which any series that has been listed was first issued and for listed shares of Floating Rate Preferred Stock or 7.50% Preferred Stock, two years from the earliest date on which any series that has been listed was first issued (the earlier of such dates as applicable to a series of Preferred Stock, the “Redemption Eligibility Date”), such share of Preferred Stock may be redeemed at any time or from time to time at our option (the “Issuer Optional Redemption”), at a redemption price of 100% of the Stated Value of the shares to be redeemed plus unpaid dividends accrued to, but not including, the date fixed for redemption.

Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock are redeemable, at the option of the holder of such Floating Rate Preferred Stock and 7.50% Preferred Stock, on a monthly basis (the “Holder Optional Redemption”). For all shares of Floating Rate Preferred Stock and 7.50% Preferred Stock duly submitted for redemption on or before a monthly Holder Redemption Deadline (defined in the prospectus supplement dated December 29, 2023), the HOR Settlement Amount (as defined below) is determined on any business day after such Holder Redemption Deadline but before the Holder Redemption Deadline occurring two months thereafter (such date, the “Holder Redemption Exercise Date”). Within such period, we may select the Holder Redemption Exercise Date in our sole discretion. We will settle any Holder Optional Redemption by paying the HOR Settlement Amount in cash.

The aggregate amount of Holder Optional Redemptions by the holder of Floating Rate Preferred Stock is subject to the following redemption limits: (i) no more than 2% of the outstanding Floating Rate Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per calendar month; (ii) no more than 5% of the outstanding Floating Rate Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per fiscal quarter and (iii) no more than 20% of the outstanding Floating Rate Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per Annual Redemption Period. Redemption capacity of the Floating Rate Preferred Stock will be allocated on a pro rata basis based on the number of shares of Floating Rate Preferred Stock, as applicable, submitted in the event that a monthly redemption is oversubscribed, based on any of the foregoing redemption limits.

The aggregate amount of Holder Optional Redemptions by the holders of 7.50% Preferred Stock is subject to the following redemption limits: (i) no more than 2% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per calendar month; (ii) no more than 5% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per fiscal quarter; and (iii) no more than 20% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per Annual Redemption Period; plus, for each redemption limit set forth above in clauses (i) through (iii) of this paragraph, an amount of such 7.50% Preferred Stock equal to the lowest excess, if any, between the corresponding applicable 2% / 5% / 20% redemption limits for Floating Rate Preferred Stock as set forth above and the respective amounts requested for the Floating Rate Preferred Stock on a Holder Redemption Deadline for the Floating Rate Preferred Stock.

Additionally, we have covenanted to waive the applicable 2% / 5% / 20% redemption limits for the Floating Rate Preferred Stock as set forth in the terms of the Floating Rate Preferred Stock such that holders of the Floating Rate Preferred Stock may, in addition to the amount of Floating Rate Preferred Stock such holders are entitled to redeem pursuant to the terms of the Floating Rate Preferred Stock, also redeem an amount of such Floating Rate Preferred Stock equal to the lowest excess, if any, between the corresponding applicable 2% / 5% / 20% redemption limits for the 7.50% Preferred Stock as set forth in the terms of the 7.50% Preferred Stock and the respective amounts requested for the 7.50% Preferred Stock on a Holder Redemption Deadline for the 7.50% Preferred Stock.

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Redemption capacity of the 7.50% Preferred Stock will be allocated on a pro rata basis based on the number of 7.50% Preferred Stock, as applicable, submitted in the event that a monthly redemption is oversubscribed based on any of the foregoing redemption limits.

An “Annual Redemption Period” means our then current fiscal quarter and the three fiscal quarters immediately preceding our then current fiscal quarter. Shares of Series A4 Preferred Stock and Series A5 Preferred Stock are subject to an early redemption fee if it is redeemed by its holder within five years of issuance. We may waive the foregoing redemption limits in our sole discretion at any time.

For the Series A4 Preferred Stock and Series A5 Preferred Stock, “HOR Settlement Amount” means (A) the stated value, plus (B) unpaid dividends accrued to, but not including, the Holder Redemption Exercise Date, minus (C) the Series A4 Preferred Stock or Series A5 Preferred Stock Holder Optional Redemption fee, as applicable on the respective Holder Redemption Deadline.

For the Series M4 Preferred Stock and Series M5 Preferred Stock, “HOR Settlement Amount” means (A) the stated value, plus (B) unpaid dividends accrued to, but not including, the Holder Redemption Exercise Date, but if a holder of Series M4 Preferred Stock or Series M5 Preferred Stock exercises a Holder Optional Redemption within the first twenty-four months of issuance of such Series M4 Preferred Stock or Series M5 Preferred Stock, the HOR Settlement Amount payable to such holder will be reduced by (i) during the first twelve months of issuance of such Series M4 Preferred Stock or Series M5 Preferred Stock, the aggregate amount of all dividends, whether paid or accrued, on such Series M4 Preferred Stock or Series M5 Preferred Stock, respectively, in the six-month period prior to the Holder Redemption Exercise Date, and (ii) during the second twelve months of issuance of such Series M4 Preferred Stock or Series M5 Preferred Stock, the aggregate amount of all dividends, whether paid or accrued, on such Series M4 Preferred Stock or Series M5 Preferred Stock in the three-month period prior to the Holder Redemption Exercise Date (such amount, the “Series M4 Shares Clawback” and “Series M5 Shares Clawback,” respectively). We are permitted to waive the Series M4 Shares Clawback and Series M5 Shares Clawback through public announcement of the terms and duration of such waiver. Any such waiver would apply to any holder of Preferred Stock qualifying for the waiver and exercising a Holder Optional Redemption during the pendency of the term of such waiver. Although we have retained the right to waive the Series M4 Shares Clawback and Series M5 Shares Clawback in the manner described above, we are not required to establish any such waivers and we may never establish any such waivers.

Subject to certain limitations, each share of 5.50% Preferred Stock or 6.50% Preferred Stock may be converted at our option (the “Issuer Optional Conversion”). We will settle any Issuer Optional Conversion by paying or delivering, as the case may be, (A) any portion of the IOC Settlement Amount (as defined below) that we elect to pay in cash and (B) a number of shares of our common stock at a conversion rate equal to (1) (a) the IOC Settlement Amount, minus (b) any portion of the IOC Settlement Amount that we elect to pay in cash, divided by (2) the 5-day VWAP, subject to our ability to obtain or maintain any stockholder approval that may be required under the 1940 Act to permit us to sell our common stock below net asset value if the 5-day VWAP represents a discount to our net asset value per share of common stock. For the 5.50% Preferred Stock and 6.50% Preferred Stock, “IOC Settlement Amount” means (A) the Stated Value, plus (B) unpaid dividends accrued to, but not including, the date fixed for conversion. In connection with an Issuer Optional Conversion, we will use commercially reasonable efforts to obtain or maintain any stockholder approval that may be required under the 1940 Act to permit us to sell our common stock below net asset value. If we do not have or obtain any required stockholder approval under the 1940 Act to sell our common stock below net asset value and the 5-day VWAP is at a discount to our net asset value per share of common stock, we will settle any conversions in connection with an Issuer Optional Conversion by paying or delivering, as the case may be, (A) any portion of the IOC Settlement Amount that we elect to pay in cash and (B) a number of shares of our common stock at a conversion rate equal to (1) (a) the IOC Settlement Amount, minus (b) any portion of the IOC Settlement Amount that we elect to pay in cash, divided by (2) the NAV per share of common stock at the close of business on the business day immediately preceding the date of conversion. We will not pay any portion of the IOC Settlement Amount from an Issuer Optional Conversion in cash (other than cash in lieu of fractional shares of our common stock) until the Redemption Eligibility Date. Beginning on the Redemption Eligibility Date, we may elect to settle any Issuer Optional Conversion in cash without limitation or restriction. In the event that we exercise an Issuer Optional Conversion with respect to any shares of 5.50% Preferred Stock or 6.50% Preferred Stock, the holder of such 5.50% Preferred Stock or 6.50% Preferred Stock may instead elect a Holder Optional Conversion with respect to such 5.50% Preferred Stock or 6.50% Preferred Stock provided that the date of conversion for such Holder Optional Conversion would occur prior to the date of conversion for an Issuer Optional Conversion. Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock do not have an Issuer Optional Conversion feature. The Company actively manages its offerings of preferred stock and, although it may or may not be presently offering a particular series of its preferred stock, the Company may determine to issue any of its authorized series of preferred stock (and, in connection therewith, to relaunch the offering of any particular series, if previously terminated) based on its assessment of market conditions, demand, and appropriate cost of capital in light of the foregoing and the overall construction of its portfolio and capital structure.

102

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

On July 12, 2021, we entered into an underwriting agreement by and among us, Prospect Capital Management L.P., Prospect Administration LLC, and Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC, as representatives of the underwriters, relating to the offer and sale of 6,000,000 shares, or $150,000 in aggregate liquidation preference, of our 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock” or “5.35% Preferred Stock”), at a public offering price of $25.00 per share. Pursuant to the Underwriting Agreement, we also granted the underwriters a 30-day option to purchase up to an additional 900,000 shares of Series A Preferred Stock solely to cover over-allotments. The offer settled on July 19, 2021, and no additional shares of the Series A Preferred Stock were issued pursuant to the option. In connection with such offering, on July 15, 2021, we filed Articles Supplementary with SDAT, reclassifying and designating 6,900,000 shares of the Company’s authorized and unissued shares of common stock into shares of Series A Preferred Stock.

On May 8, 2026, we entered into an equity distribution agreement by and among us, Prospect Capital Management L.P., Prospect Administration LLC, and A.G.P. / Alliance Global Partners (“AGP”), with AGP as sales agent, relating to the offer and sale, by means of an at-the-market (“ATM”) offering, of up to 16,000,000 shares, or $400,000 in aggregate liquidation preference, of our Series A Preferred Stock (the “Series A Preferred Stock ATM Program”). In connection with such offering, on May 8, 2026, we filed Articles Supplementary with SDAT, reclassifying and designating 16,000,000 shares of the Company’s authorized and unissued shares of common stock into additional shares of Series A Preferred Stock. During the three months ended September 30, 2026, we issued and sold $1,061 aggregate liquidation preference of the Series A Preferred Stock under the Series A Preferred Stock ATM Program, for net proceeds of $701, after commissions, discounts, and offering costs. As of September 30, 2026, there were 5,359,287 shares, or $133,982 aggregate liquidation preference, of the Series A Preferred Stock outstanding.

Each series of 5.50% Preferred Stock, 6.50% Preferred Stock, Floating Rate Preferred Stock, 7.50% Preferred Stock and Series A Preferred Stock ranks (with respect to the payment of dividends and rights upon liquidation, dissolution or winding up) (a) senior to our common stock, (b) on parity with each other series of our preferred stock, and (c) junior to our existing and future secured and unsecured indebtedness. See Note 8. Fair Value and Maturity of Debt Outstanding for further discussion on our senior securities.

We may from time to time seek to purchase and cancel our outstanding preferred stock through cash purchases and/or exchanges, in open market purchases, privately negotiated transactions or otherwise. The amounts involved may be material. Any such purchases or exchanges of preferred stock would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 16, 2022, our Board of Directors authorized the repurchase of up to 1.5 million shares our Series A Preferred Stock and further on October 11, 2023, authorized any and all outstanding Series A Preferred Stock to be repurchased.

Each share of preferred stock converted into shares of common stock, redeemed, exchanged or acquired by the Company is canceled and retired and is not reissued, and is returned to the status of authorized but unissued common stock.

During the three months ended September 30, 2026 and September 30, 2025, we did not repurchase shares of Series A Preferred Stock.

On October 30, 2023, we commenced a tender offer (the “Series A Preferred Stock Tender Offer”) to purchase for cash any and all of 5,882,351 shares of outstanding Series A Preferred Stock at a price of $15.88, plus accrued and unpaid dividends for a total consideration of $16.00 per share. The Series A Preferred Stock Tender Offer expired at 5:00 p.m., New York City time, on November 29, 2023 and as a result, $15,780 aggregate liquidation amount of the Series A Preferred Stock were validly tendered and accepted, and we recognized a realized gain of $5,197 during the year ended June 30, 2024 from the purchase of 631,194 shares of Series A Preferred Stock in the amount of the difference between the consideration transferred and the net carrying amount of the Series A Preferred Stock.

During the three months ended September 30, 2026, we exchanged an aggregate of 10,143 Series M1 Preferred Stock for an aggregate of 10,143 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. During the three months ended September 30, 2026, we exchanged an aggregate of 20,400 Series M3 Preferred Stock for an aggregate of 20,400 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. During the three months ended September 30, 2026, we exchanged an aggregate of 9,000 Series M4 Preferred Stock for an aggregate of 9,000 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

aggregate of 0 and 12,182 newly-issued Series M4 Preferred Stock and newly-issued Series M5 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act.

The Series M3 Preferred Stock, Series M4 Preferred Stock, and Series M5 Preferred Stock issued in the exchanges were issued in each case to an existing security holder of the Company exclusively in exchange for such holder’s securities. No commission or other remuneration was paid or given for soliciting the exchange. Stockholders who exchange Series M1 Preferred Stock for Series M3 Preferred Stock, Series M4 Preferred Stock or Series M5 Preferred Stock, Series M3 Preferred Stock for Series M4 Preferred Stock or Series M5 Preferred Stock, or Series M4 Preferred Stock for Series M5 Preferred Stock will receive unpaid dividends on their Series M1 Preferred Stock, Series M3 Preferred Stock or Series M4 Preferred Stock accrued to, but not including, the Exchange Exercise Date, plus any fractional amount of a Series M1 Preferred Stock, Series M3 Preferred Stock or Series M4 Preferred Stock exchanged multiplied by $25.00 in cash. Upon settlement, the carrying amount (including any premiums or discounts and a proportional amount of any issuance costs) of the Series M1 Preferred Stock, Series M3 Preferred Stock or Series M4 Preferred Stock are reclassified to Series M3 Preferred Stock, Series M4 Preferred Stock, or Series M5 Preferred Stock, respectively, with no gain or loss recognized.

Subject to certain limited exceptions allowing earlier redemption, at any time after the close of business on July 19, 2026 (any such date, an “Optional Redemption Date”), at our sole option, we may redeem the Series A Preferred Stock in whole or, from time to time, in part, out of funds legally available for such redemption, at a price per share equal to the liquidation preference of $25.00 per share, plus an amount equal to all unpaid dividends on such shares (whether or not earned or declared, but excluding interest thereon) accumulated up to, but excluding, the date fixed for redemption. We may also redeem the Series A Preferred Stock at any time, in whole or, from time to time, in part, including prior to the Optional Redemption Date, pro rata, based on liquidation preference, with all other series of our then outstanding preferred stock, in the event that our Board of Directors determines to redeem any series of our preferred stock, in whole or, from time to time, in part, because such redemption is deemed necessary by our Board of Directors to comply with the asset coverage requirements of the 1940 Act or for us to maintain RIC status.

In the event of a Change of Control Triggering Event (as defined below), we may, at our option, exercise our special optional redemption right to redeem the Series A Preferred Stock, in whole or in part, within 120 days after the first date on which such Change of Control Triggering Event has occurred by paying the liquidation preference, plus an amount equal to all unpaid dividends on such shares (whether or not earned or declared, but excluding interest thereon) accumulated up to, but excluding, the date fixed for such redemption. To the extent that we exercise our optional redemption right or our special optional redemption right relating to the Series A Preferred Stock, the holders of Series A Preferred Stock will not be permitted to exercise the conversion right described below in respect of their shares called for redemption.

Except to the extent that we have elected to exercise our optional redemption right or our special optional redemption right by providing notice of redemption prior to the Change of Control Conversion Date (as defined below), upon the occurrence of a Change of Control Triggering Event, each holder of Series A Preferred Stock will have the right to convert some or all of the Series A Preferred Stock held by such holder on the Change of Control Conversion Date into a number of our shares of common stock per Series A Preferred Stock to be converted equal to the lesser of:

•the quotient obtained by dividing (i) the sum of the Liquidation Preference per share plus an amount equal to all unpaid dividends thereon (whether or not earned or declared, but excluding interest thereon) accumulated up to, but excluding, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a Record Date for a Series A Preferred Stock dividend payment and prior to the corresponding Series A Preferred Stock dividend payment date, in which case no additional amount for such accrued and unpaid dividends will be included in this sum) by (ii) the Common Stock Price (as defined below); and

•6.03865, subject to certain adjustments, subject, in each case, to provisions for the receipt of alternative consideration upon conversion as described in the applicable prospectus supplement.

If we have provided or provide a redemption notice with respect to some or all of the Series A Preferred Stock, holders of any Series A Preferred Stock that we have called for redemption will not be permitted to exercise their Change of Control Conversion Right in respect of any of their Series A Preferred Stock that have been called for redemption, and any Series A Preferred Stock subsequently called for redemption that have been tendered for conversion will be redeemed on the applicable date of redemption instead of converted on the Change of Control Conversion Date.

For purposes of the foregoing discussion of a redemption upon the occurrence of a Change of Control Triggering Event, the following definitions are applicable:

“Change of Control Triggering Event” means the occurrence of any of the following:

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(in thousands, except share and per share data)

•the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation and other than an Excluded Transaction) in one or a series of related transactions, of all or substantially all of the assets of the Company and its Controlled Subsidiaries taken as a whole to any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) (other than to any Permitted Holders); provided that, for the avoidance of doubt, a pledge of assets pursuant to any of our secured debt instruments or the secured debt instruments of our Controlled Subsidiaries shall not be deemed to be any such sale, lease, transfer, conveyance or disposition; or

•the consummation of any transaction (including, without limitation, any merger or consolidation and other than an Excluded Transaction) the result of which is that any “person” or “group” (as those terms are used in Section 13(d)(3) of the Exchange Act) (other than any Permitted Holders) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of our outstanding Voting Stock, measured by voting power rather than number of shares.

Notwithstanding the foregoing, the consummation of any of the transactions referred to in the bullet points above will not be deemed a Change of Control Triggering Event if we or the acquiring or surviving consolidated entity has or continues to have a class of common securities (or ADRs representing such securities) listed on the NYSE, the NYSE American or NASDAQ, or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American or NASDAQ, or is otherwise listed or quoted on a national securities exchange.

The “Change of Control Conversion Date” is the date the shares of Series A Preferred Stock are to be converted, which will be a business day selected by us that is no fewer than 20 days nor more than 35 days after the date on which we provide the notice described above to the holders of Series A Preferred Stock.

The “Common Stock Price” will be (i) if the consideration to be received in the Change of Control Triggering Event by the holders of our common stock is solely cash, the amount of cash consideration per share of our common stock or (ii) if the consideration to be received in the Change of Control Triggering Event by holders of our common stock is other than solely cash (x) the average of the closing sale prices per share of our common stock (or, if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) for the ten consecutive trading days immediately preceding, but not including, the effective date of the Change of Control Triggering Event as reported on the principal U.S. securities exchange on which our common stock is then traded, or (y) the average of the last quoted bid prices for our common stock in the over-the-counter market as reported by OTC Markets Group Inc. or similar organization for the ten consecutive trading days immediately preceding, but not including, the effective date of the Change of Control Triggering Event, if our common stock is not then listed for trading on a U.S. securities exchange.

“Controlled Subsidiary” means any of our subsidiaries, 50% or more of the outstanding equity interests of which are owned by us and our direct or indirect subsidiaries and of which we possess, directly or indirectly, the power to direct or cause the direction of the management or policies, whether through the ownership of voting equity interests, by agreement or otherwise.

“Excluded Transaction” means (i) any transaction that does not result in any reclassification, conversion, exchange or cancellation of all or substantially all of the outstanding shares of our Voting Stock; (ii) any changes resulting from a subdivision or combination or a change solely in par value; (iii) any transaction where the shares of our Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving “person” (as that term is used in Section 13(d)(3) of the Exchange Act) or any direct or indirect parent company of the surviving “person” (as that term is used in Section 13(d)(3) of the Exchange Act) immediately after giving effect to such transaction; (iv) any transaction if (A) we become a direct or indirect wholly-owned subsidiary of a holding company and (B)(1) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of our Voting Stock immediately prior to that transaction or (2) immediately following that transaction no “person” (as that term is used in Section 13(d)(3) of the Exchange Act) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company; or (v) any transaction primarily for the purpose of changing our jurisdiction of incorporation or form of organization.

“Permitted Holders” means (i) us, (ii) one or more of our Controlled Subsidiaries and (iii) Prospect Capital Management or any affiliate of Prospect Capital Management that is organized under the laws of a jurisdiction located in the United States of America and in the business of managing or advising clients.

“Voting Stocks” as applied to stock of any person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such person having ordinary voting power for the election of the directors (or the equivalent) of such person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

105

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Except as provided above in connection with a Change of Control Triggering Event, the Series A Preferred Stock is not convertible into or exchangeable for any other securities or property.

For so long as the Series A Preferred Stock, the Floating Rate Preferred Stock, or 7.50% Preferred Stock are outstanding, we will not exercise any option we have to convert any other series of our outstanding preferred stock to common stock, including the Issuer Optional Conversion, or any other security ranking junior to such preferred stock. As a result, if dividends on the Preferred Stock have accumulated and been unpaid for a period of two years, a possibility of redemption outside of the Company’s control exists and, in accordance with ASC 480, we have presented our 5.50% Preferred Stock, 6.50% Preferred Stock, and Series A Preferred Stock within temporary equity on our Consolidated Statement of Assets and Liabilities as of September 30, 2026 and June 30, 2026.

The Floating Rate Preferred Stock and 7.50% Preferred Stock are redeemable at the election of the holder at any time; therefore, is probable of redemption outside of the Company’s control. As a result, the Floating Rate Preferred Stock and 7.50% Preferred Stock are classified within temporary equity on our Consolidated Statement of Assets and Liabilities as of September 30, 2026 and are accreted to redemption value upon issuance. Accretion to redemption value is treated as an adjustment to net increase (decrease) in net assets resulting from operations applicable to common stockholders on our Consolidated Statement of Operations.

Shares of the 5.50% Preferred Stock, 6.50% Preferred Stock, and 7.50% Preferred Stock will pay a monthly dividend, when and if declared by our Board of Directors, at a fixed annual dividend rate of 5.50%, 6.50%, and 7.50%, respectively, per annum of the Stated Value of $25.00 per share (computed on the basis of a 360-day year consisting of twelve 30-day months), payable in cash or through the issuance of additional 5.50% Preferred Stock, 6.50% Preferred Stock, and 7.50% Preferred Stock through the 5.50% Preferred Stock DRIP, 6.50% Preferred Stock DRIP, and 7.50% Preferred Stock DRIP, respectively.

Shares of the Floating Rate Preferred Stock will pay a monthly dividend, when, and if authorized by, or under authority granted by, our Board of Directors, and declared by us out of funds legally available therefor, at an annualized floating rate equal to one-month Term SOFR (as defined in the Prospectus Supplement dated December 29, 2023) plus 2.00%, subject to a minimum annualized dividend rate of 6.50% (the “Cap Rate”) and a maximum annualized dividend rate of 8.00%, each with respect to the stated value of $25.00 per share of the Floating Rate Preferred Stock (computed on the basis of a 360-day year consisting of twelve 30-day months), payable in cash or through the issuance of additional Floating Rate Preferred Stock through the Floating Rate Preferred Stock DRIP. The floating dividend rate on the Floating Rate Preferred Stock will reset upon each dividend authorization by our Board of Directors, and will reset to the applicable rate as determined two U.S. Government Securities Business Days (as defined in the Prospectus Supplement dated December 29, 2023) prior to such authorization, as adjusted for the terms herein. The applicable floating dividend rate on the Floating Rate Preferred Stock is presently expected to reset approximately once every three months.

Shares of the Series A Preferred Stock will pay a quarterly dividend, when and if declared by our Board of Directors, at a fixed annual dividend rate of 5.35% per annum of the Stated Value of $25.00 per share (computed on the bases of a 360-day year consisting of twelve 30-day months), payable in cash.

The below distributions to our Preferred Stockholders are net of any Series M Clawback applied to Series M stock through either the Holder Optional Conversion or Holder Optional Redemption of such Series M shares.

Our distributions to our 5.50% Preferred Stock holders, 6.50% Preferred Stock holders, 7.50% Preferred Stock holders, Floating Rate Preferred Stock holders and 5.35% Series A Preferred Stock holders for the three months ended September 30, 2026 and September 30, 2025, are summarized in the following table:


Declaration Date	Record Date	Payment Date	Amount ($ per share), before pro ration for partial periods		Amount Distributed
5.50% Preferred Stockholders
5/7/2026	7/22/2026	8/3/2026	$	0.114583	$	2,821
5/7/2026	8/19/2026	9/1/2026	0.114583		2,779
8/20/2026	9/21/2026	10/1/2026	0.114583		2,728









Distributions for the three months ended September 30, 2026					$	8,328

5/8/2025	7/23/2025	8/1/2025	$	0.114583	$	3,196
5/8/2025	8/20/2025	9/2/2025	0.114583		3,175

106

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


8/26/2025	9/18/2025	10/1/2025	0.114583		3,148









Distributions for the three months ended September 30, 2025					$	9,519

6.50% Preferred Stockholders
5/7/2026	7/22/2026	8/3/2026	$	0.135417	$	3,306
5/7/2026	8/19/2026	9/1/2026	0.135417		3,282
8/20/2026	9/21/2026	10/1/2026	0.135417		3,261









Distributions for the three months ended September 30, 2026					$	9,849

5/8/2025	7/23/2025	8/1/2025	0.135417		$	3,567
5/8/2025	8/20/2025	9/2/2025	0.135417		3,543
8/26/2025	9/18/2025	10/1/2025	0.135417		3,524









Distributions for the three months ended September 30, 2025					$	10,634

Floating Rate Preferred Stockholders
5/7/2026	7/22/2026	8/3/2026	$	0.135417	$	1,180
5/7/2026	8/19/2026	9/1/2026	0.135417		1,179
8/20/2026	9/21/2026	10/1/2026	0.135417		1,163









Distributions for the three months ended September 30, 2026					$	3,522


5/8/2025	7/23/2025	8/1/2025	$	0.135417	$	1,244
5/8/2025	8/20/2025	9/2/2025	0.135417		1,244
8/26/2025	9/18/2025	10/1/2025	0.135417		1,235









Distributions for the three months ended September 30, 2025					$	3,723

5.35% Preferred Stockholders
5/7/2026	7/22/2026	8/3/2026	$	0.334375	$	1,791





Distributions for the three months ended September 30, 2026					$	1,791

5/8/2025	7/23/2025	8/1/2025	$	0.334375	$	1,756



Distributions for the three months ended September 30, 2025					$	1,756

7.50% Preferred Stockholders
5/7/2026	7/22/2026	8/3/2026	$	0.156250	$	826
5/7/2026	8/19/2026	9/1/2026	0.156250		876
8/20/2026	9/21/2026	10/1/2026	0.156250		919









Distributions for the three months ended September 30, 2026					$	2,621

5/8/2025	7/23/2025	8/1/2025	$	0.156250	$	331
5/8/2025	8/20/2025	9/2/2025	0.156250		384
8/26/2025	9/18/2025	10/1/2025	0.156250		419



Distributions for the three months ended September 30, 2025					$	1,134

107

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The above table includes dividends paid during the three months ended September 30, 2026. It does not include distributions previously declared to the 5.50% Preferred Stock holders, 6.50% Preferred Stock holders, 7.50% Preferred Stock holders, Floating Rate Preferred Stock holders and 5.35% Series A Preferred Stock holders of record for any future dates, as those amounts are not yet determinable. The following dividends were previously declared and will be recorded and paid subsequent to September 30, 2026:

•$0.114583 per share (before pro ration for partial period holders of record) for 5.50% Preferred Stock holders of record on October 21, 2026 with a payment date of November 2, 2026.

•$0.114583 per share (before pro ration for partial period holders of record) for 5.50% Preferred Stock holders of record on November 18, 2026 with a payment date of December 1, 2026.

•$0.135417 per share (before pro ration for partial period holders of record) for 6.50% Preferred Stock holders of record on October 21, 2026 with a payment date of November 2, 2026.

•$0.135417 per share (before pro ration for partial period holders of record) for 6.50% Preferred Stock holders of record on November 18, 2026 with a payment date of December 1, 2026.

•$0.135417 per share (before pro ration for partial period holders of record) for Floating Rate Preferred Stock holders of record on October 21, 2026 with a payment date of November 2, 2026.

•$0.135417 per share (before pro ration for partial period holders of record) for Floating Rate Preferred Stock holders of record on November 18, 2026 with a payment date of December 1, 2026.

•$0.334375 per share (before pro ration for partial period holders of record) for 5.35% Series A Preferred Stock holders of record on October 21, 2026 with a payment date of November 2, 2026.

•$0.156250 per share (before pro ration for partial period holders of record) for 7.50% Preferred Stock holders of record on October 21, 2026 with a payment date of November 2, 2026.

•$0.156250 per share (before pro ration for partial period holders of record) for 7.50% Preferred Stock holders of record on November 18, 2026 with a payment date of December 1, 2026.

As of September 30, 2026, we have accrued approximately $4 and $1,195 in dividends that have not yet been paid for our 7.50% Preferred Stock holders and 5.35% Series A Preferred Stock holders, respectively.

The following table shows our outstanding Preferred Stock as of September 30, 2026:


Series	Shares Authorized(8)	Maximum Offering Size (Shares)		Maximum Aggregate Liquidation Preference of Offering			Inception to Date Preferred Shares Sold via Offering	Inception to Date Liquidation Preference Issued via Offering			Preferred Stock Issued and Outstanding		Liquidation Preference Outstanding
Series A1	70,924,090	105,858,302	(1)	$	2,646,458	(1)	31,448,021	$	786,201		22,643,551	(4)	$	566,089
Series M1	76,697,272	105,858,302	(1)	2,646,458		(1)	4,110,318	102,758			813,400	(4)	20,335
Series M2	80,000,000	105,858,302	(1)	2,646,458		(1)	—	—			—		—
Series A3	77,143,429	105,858,302	(1)	2,646,458		(1)	25,020,192	625,505			22,407,112	(4)	560,178
Series M3	77,734,864	105,858,302	(1)	2,646,458		(1)	3,490,259	87,256			1,596,116	(4)	39,903
Series A4	89,670,463	105,858,302	(1)	2,646,458		(1)	7,025,668	175,642			6,727,570	(5)	168,189
Series M4	89,595,317	105,858,302	(1)	2,646,458		(1)	938,860	23,472			1,842,372	(5)	46,059
Series A5	89,967,301	105,858,302	(1)	2,646,458		(1)	4,760,357	119,009			4,737,743	(5)	118,444
Series M5	89,981,700	105,858,302	(1)	2,646,458		(1)	1,082,322	27,058			1,278,396	(5)	31,960
Series A2	858,000	187,000		4,675			187,000	4,675			45,000	(4)	1,125
Series A	22,151,157	22,000,000	(2)	550,000			6,108,130	152,703			5,359,287	(6)	133,982
Total	764,723,593	128,045,302	(3)	$	3,201,133	(3)	84,171,127	$	2,104,278	(7)	67,450,547		$	1,686,263	(7)

(1) The maximum offering of 105,858,302 shares and $2,646,458 aggregate liquidation preference is for any combination of Series A1, Series M1, Series M2, Series A3, Series M3, Series A4, Series M4, Series A5, and Series M5 shares.
(2) The maximum offering of 22,000,000 shares and $550,000 aggregate liquidation preference is related to (i) the public offering of 6,000,000 shares, or $150,000 in aggregate liquidation preference, of our Series A Preferred Stock in July 2021 and (ii) the Series A Preferred Stock ATM Program of up to 16,000,000 shares, or $400,000 in aggregate liquidation preference, of our Series A Preferred Stock.

108

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(3) The authorized maximum offering size of Preferred Stock as of September 30, 2026 was 128,045,302 shares, par value $0.001 per share, with an aggregate liquidation preference of $3,201,133, a liquidation preference of $25.00 per share. The totals referenced in the above table are in light of the combined maximum offering amounts for the various series of shares identified in footnote 1 and the table columns are not intended to foot.
(4) Preferred Stock shares issued and outstanding is calculated as shares issued under the respective offering program, including additional shares issued through the Preferred Stock DRIP and net of Preferred Stock conversions to common stock through the Holder Optional Conversion and Optional Redemption Upon Death of Holder. Refer to subsequent tables for respective fiscal year activity.

(5) Preferred Stock shares outstanding is calculated as shares issued under the respective offering program, including additional shares issued through the Preferred Stock DRIP and net of Preferred Stock redemptions through the Holder Optional Redemption and Optional Redemption Upon Death of Holder. Refer to subsequent tables for respective fiscal year activity.
(6) Preferred Stock shares outstanding is calculated as shares issued under the respective offering or Series A Preferred Stock ATM Program, net of shares repurchased via open market purchases and shares retired via the Tender Offer. Refer to subsequent tables for respective fiscal year activity.
(7) Does not foot due to rounding.
(8) Each share of preferred stock converted into shares of common stock, redeemed, exchanged or acquired by the Company is canceled and retired and is not reissued, and is returned to the status of authorized but unissued common stock.

The following table shows our outstanding Preferred Stock as of June 30, 2026:


Series	Shares Authorized	Maximum Offering Size (Shares)		Maximum Aggregate Liquidation Preference of Offering			Inception to Date Preferred Shares Sold via Offering	Inception to Date Liquidation Preference Issued via Offering			Preferred Stock Shares Issued and Outstanding(5)		Liquidation Preference Outstanding
Series A1	72,069,234	105,858,302	(1)	$	2,646,458	(1)	31,448,021	$	786,201		23,775,096	(4)	$	594,377
Series M1	76,769,095	105,858,302	(1)	2,646,458		(1)	4,110,318	102,758			885,095	(4)	22,127
Series M2	80,000,000	105,858,302	(1)	2,646,458		(1)	—	—			—		—
Series A3	77,558,483	105,858,302	(1)	2,646,458		(1)	25,020,192	625,505			22,804,790	(4)	570,120
Series M3	77,797,471	105,858,302	(1)	2,646,458		(1)	3,490,259	87,256			1,658,155	(4)	41,454
Series A4	89,819,436	105,858,302	(1)	2,646,458		(1)	7,025,668	175,642			6,873,274	(5)	171,832
Series M4	89,664,559	105,858,302	(1)	2,646,458		(1)	938,860	23,472			1,910,755	(5)	47,769
Series A5	89,980,894	105,858,302	(1)	2,646,458		(1)	4,115,892	102,897			4,104,726	(5)	102,618
Series M5	89,996,200	105,858,302	(1)	2,646,458		(1)	909,536	22,738			1,080,460	(5)	27,012
Series A2	872,000	187,000		4,675			187,000	4,675			59,000	(4)	1,475
Series A	22,151,157	22,000,000	(2)	550,000			6,065,692	151,642			5,316,849	(6)	132,921
Total	766,678,529	128,045,302	(3)	$	3,201,133	(3)	83,311,438	$	2,082,785	(7)	68,468,200		$	1,711,704	(7)

(1) The maximum offering of 105,858,302 shares and $2,646,458 aggregate liquidation preference was for any combinations of Series A1, Series M1, Series M2, Series A3, Series M3, Series A4, Series M4, Series A5, and Series M5 shares.
(2) The maximum offering of 22,000,000 shares and $550,000 aggregate liquidation preference is related to (i) the public offering of 6,000,000 shares, or 150,000 in aggregate liquidation preference, of our Series A Preferred Stock in July 2021 and (ii) the Series A Preferred Stock ATM Program of up to 16,000,000 shares, or 400,000 in aggregate liquidation preference, of our Series A Preferred Stock.

(3) The authorized maximum offering size of Preferred Stock as of June 30, 2026 was 128,045,302 shares, par value $0.001 per share, with an aggregate liquidation preference of $3,201,133, a liquidation preference of $25.00 per share. The totals referenced in the above table are in light of the combined maximum offering amounts for the various series of shares identified in footnote 1 and the table columns are not intended to foot.
(4) Preferred Stock shares issued and outstanding is calculated as shares issued under the respective offering program, including additional shares issued through the Preferred Stock DRIP and net of Preferred Stock conversions to common stock through the Holder Optional Conversion and Optional Redemption Upon Death of Holder. Refer to subsequent tables for respective fiscal year activity.

Preferred Stock issued prior to the issuance of our 5.35% Series A Preferred Stock has a carrying value equal to liquidation value per share on our Consolidated Statements of Assets and Liabilities. Subsequent issuances of our Preferred Stock classified as temporary equity are recorded net of issuance costs, with the Floating Rate Preferred Stock and 7.50% Preferred Stock immediately accreted to redemption value as discussed above. The carrying value of all Preferred Stock is inclusive of cumulative accrued and unpaid dividends as of September 30, 2026 and June 30, 2026.

109

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Series A1, Series A2, Series M1, Series A3, and Series M3 shares outstanding are net of dividend reinvestments paid and conversions to common stock in accordance with their liquidation features. Series A4, Series M4, Series A5, and Series M5 shares outstanding are net of dividend reinvestments paid and redemptions in accordance with their liquidation features. Series A shares outstanding are net of shares repurchased via the authorized repurchase of Series A Preferred Stock. Series M shares outstanding are net of shares exchanged for shares of alternative Series M stock. The following tables show such activity during the three months ended September 30, 2026:


Series	June 30, 2026 Shares Outstanding	Shares Issued		Shares issued through Preferred Stock DRIP		Exchanges	Redemptions/Repurchases(1)	September 30, 2026 Shares Outstanding
Series A1	23,775,096	—		13,598		—	(1,145,143)	22,643,551
Series M1	885,095	—		128		(10,143)	(61,680)	813,400
Series A3	22,804,790	—		17,376		—	(415,054)	22,407,112
Series M3	1,658,155	—		568		(20,400)	(42,207)	1,596,116
Series A4	6,873,274	—		3,269		—	(148,974)	6,727,570	(2)
Series M4	1,910,755	—		859		(9,000)	(60,242)	1,842,372
Series A5	4,104,726	644,465		2,145		—	(13,593)	4,737,743
Series M5	1,080,460	172,786		107		39,543	(14,500)	1,278,396
Series A2	59,000	—		—		—	(14,000)	45,000
Series A	5,316,849	42,438		—		—	—	5,359,287
Total	68,468,200	859,689	(3)	38,051	(2)	—	(1,915,393)	67,450,547

(1)During the three months ended September 30, 2026, 1,678,084 shares of the 5.50% Preferred Stock and 6.50% Preferred Stock, were converted to common shares via Holder Optional Redemptions and Optional Redemptions Upon Death of Holder and 237,309 shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock were redeemed for cash via Holder Optional Redemptions.

(2)Does not foot or crossfoot due to fractional share rounding.

(3)During the three months ended September 30, 2026, we issued 859,689 shares of Preferred Stock for net proceeds of $19,392 with a liquidation value of $21,492.

The following tables show such activity during the three months ended September 30, 2025:


Series	June 30, 2025 Shares Outstanding	Shares Issued		Shares issued through Preferred Stock DRIP	Exchanges	Redemptions/Repurchases(1)	September 30, 2025 Shares Outstanding
Series A1	26,763,091	—		15,691	—	(548,527)	26,230,257	(2)
Series M1	1,122,110	—		123	—	(59,740)	1,062,493
Series A3	24,081,697	—		18,765	—	(243,132)	23,857,330
Series M3	2,281,053	—		604	(12,182)	(115,320)	2,154,155
Series A4	6,981,297	—		4,044	—	(30,112)	6,955,229
Series M4	2,209,528	—		979	—	(21,690)	2,188,817	(2)
Series A5	1,647,217	577,233		1,371	—	(280)	2,225,541
Series M5	415,787	133,736		79	12,182	—	561,783	(2)
Series A2	163,000	—		—	—	—	163,000
Series A	5,251,157	—		—	—	—	5,251,157
Total	70,915,937	710,969	(3)	41,656	—	(1,018,801)	70,649,762	(2)

(1)During the three months ended September 30, 2025, 966,719 shares of the 5.50% Preferred Stock and 6.50% Preferred Stock were converted to common shares via Holder Optional Redemptions and Optional Redemptions Upon Death of Holder and 52,082 shares of the Floating Rate Preferred Stock were redeemed for cash via Holder Optional Redemptions.

(2)Does not foot or crossfoot due to fractional share rounding.

(3)During the three months ended September 30, 2025, we issued 710,969 shares of Preferred Stock for net proceeds of $16,237 with a liquidation value of $17,774.

110

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Common Stock

Our common stockholders’ equity accounts as of September 30, 2026 and June 30, 2026 reflect cumulative shares issued, net of shares previously repurchased, as of those respective dates. Our common stock has been issued through public offerings, a registered direct offering, the exercise of over-allotment options on the part of the underwriters, our common stock dividend reinvestment plan in connection with the acquisition of certain controlled portfolio companies and in connection with our 5.50% and 6.50% Preferred Stock Holder Optional Conversion and Optional Redemptions Following Death of a Holder. When our common stock is issued, the related offering expenses have been charged against paid-in capital in excess of par. All underwriting fees and offering expenses were borne by us.

On August 24, 2011, our Board of Directors approved a share repurchase plan (the “Repurchase Program”), pursuant to which we may repurchase up to $100,000 of our common stock at prices below our net asset value per share.

We did not repurchase any shares of our common stock under the Repurchase Program for the three months ended September 30, 2026 and September 30, 2025. As of September 30, 2026, the approximate dollar value of shares that may yet be purchased under the Repurchase Program is $65,860.

Excluding common stock dividend reinvestments and shares issued in connection with the 5.50% and 6.50% Preferred Stock Holder Optional Conversion and Optional Redemption Upon Death of Holder, during the three months ended September 30, 2026 and September 30, 2025, we did not issue any shares of our common stock.

On February 9, 2016, we amended our common stock dividend reinvestment plan that provided for reinvestment of our dividends or distributions on behalf of our stockholders, unless a stockholder elects to receive cash, to add the ability of stockholders to purchase additional common shares by making optional cash investments. Under the revised dividend reinvestment and direct common stock repurchase plan, stockholders may elect to purchase additional common shares through our transfer agent in the open market or in negotiated transactions.

On April 17, 2020, our Board of Directors approved further amendments to our common stock dividend reinvestment plan, effective May 21, 2020, that principally provide for the number of newly-issued shares of our common stock to be credited to a stockholder’s account shall be determined by dividing the total dollar amount of the distribution payable to such common stockholder by 95% of the market price per share of our common stock at the close of regular trading on the Nasdaq Global Select Market on the date fixed by our Board of Directors for such distribution.

On May 6, 2026, we filed Articles Supplementary with the SDAT, reclassifying and designating 80,000,000 authorized but unissued shares of preferred stock previously designated for the Company’s offering through InspereX LLC, as dealer manager, as additional shares of common stock.

On August 19, 2026, we filed an amendment to our charter with the SDAT to increase our authorized shares of stock from 2,000,000,000 shares of stock to 4,000,000,000 shares of stock.

On July 7, 2026, at a special meeting of stockholders, our stockholders authorized us to sell shares of our common stock (during the next 12 months) at a price or prices below our net asset value per share at the time of sale in one or more offerings, subject to certain conditions as set forth in the proxy statement relating to the special meeting (including that the number of shares sold on any given date does not exceed 25% of its outstanding common stock immediately prior to such sale).

During the three months ended September 30, 2026 and September 30, 2025, we distributed approximately $55,256 and $62,393, respectively, to our common stockholders. The following table summarizes our distributions to common stockholders declared and payable for the three months ended September 30, 2026 and September 30, 2025:

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(in thousands, except share and per share data)


Declaration Date	Record Date	Payment Date	Amount Per Share		Amount Distributed (in thousands)
5/7/2026	7/29/2026	8/20/2026	$	0.035	$	18,168
5/7/2026	8/27/2026	9/17/2026	0.035		18,404
8/20/2026	9/28/2026	10/21/2026	0.035		18,684









Total declared and payable for the three months ended September 30, 2026					$	55,256

5/8/2025	7/29/2025	8/20/2025	$	0.05	$	20,623
5/8/2025	8/27/2025	9/18/2025	0.05		20,805
8/28/2025	9/26/2025	10/22/2025	0.05		20,965









Total declared and payable for the three months ended September 30, 2025					$	62,393

Dividends and distributions to common stockholders are recorded on the ex-dividend date. As such, the table above includes distributions with record dates during the three months ended September 30, 2026 and September 30, 2025. It does not include distributions previously declared to common stockholders of record on any future dates, as those amounts are not yet determinable. The following dividends were previously declared and will be recorded and payable subsequent to September 30, 2026:

•$0.035 per share for October 2026 holders of record on October 28, 2026 with a payment date of November 18, 2026.

During the three months ended September 30, 2026 and September 30, 2025, we issued 3,083,229 and 2,362,606 shares of our common stock, respectively, in connection with the common stock dividend reinvestment plan.

As of September 30, 2026, we have reserved 987,634,200 shares of our common stock for issuance upon conversion of the 5.50% Preferred Stock and the 6.50% Preferred Stock and 86,081,949 shares of our common stock for issuance to common stock holders pursuant to our common stock dividend reinvestment and direct stock purchase plan.

Note 10. Other Income

Other income consists of structuring fees, amendment fees, overriding royalty interests, receipts related to net profit and revenue interests, deal deposits, administrative agent fees, and other miscellaneous and sundry cash receipts. The following table shows income from such sources during the three months ended September 30, 2026 and 2025:


	Three Months Ended September 30,
		2026		2025
Structuring, amendment and advisory fees		$	10,605	$	1,299
Royalty, net profit and revenue interests		2,798		167
Administrative agent fees		255		191
Total other income		$	13,658	$	1,657

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 11. Net Increase (Decrease) in Net Assets per Common Share

Basic earnings (loss) per share is calculated by dividing the net increase (decrease) in net assets resulting from operations, less preferred stock dividends plus net gain (loss) on repurchase and accretion to redemption value of redeemable preferred stock, by the weighted average number of common shares outstanding for that period. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding using the if-converted method for the 5.50% Preferred Stock, the 6.50% Preferred Stock (see Note 9).

Diluted earnings per share excludes all dilutive potential common shares if their effect is anti-dilutive.

During the three months ended September 30, 2026, all 47,505,179 shares of our issued and outstanding Convertible Preferred Stock had an anti-dilutive effect and therefore, conversion is not assumed.

During the three months ended September 30, 2025, conversion of all our Convertible Preferred Stock had a dilutive effect and their conversion is assumed.

The following information sets forth the computation of basic and diluted earnings per common share during the three months ended September 30, 2026 and September 30, 2025:


	For the Three Months Ended September 30,
		2026			2025
Net increase (decrease) in net assets resulting from operations - basic		$	(53,448)		$	48,087
Adjustment for dividends on Convertible Preferred Stock		—			20,134

Adjustment for Incentive Fee on Convertible Instruments		—			(461)
Net increase (decrease) in net assets resulting from operations - diluted		$	(53,448)		$	67,760

Weighted average common shares outstanding - basic		524,466,279			461,356,032
Weighted average common shares from assumed conversion of Convertible Preferred Stock		—			415,300,986

Weighted average shares of common stock outstanding - diluted		524,466,279			876,657,018

Earnings (loss) per share - basic		$	(0.10)		$	0.10
Earnings (loss) per share - diluted		$	(0.10)	(1)	$	0.08

Note 12. Income Taxes

While our fiscal year end for financial reporting purposes is June 30 of each year, our tax year end is August 31 of each year. The information presented in this footnote is based on our tax year end for each period presented, unless otherwise specified.

The determination of tax character of distributions was not determinable at the end of the fiscal year end. Final determination of tax character of distributions will not be final until we file our return for the tax year. For income tax purposes, dividends paid and distributions made to stockholders are reported as ordinary income, capital gains, non-taxable return of capital, or a combination thereof. The tax character of dividends paid to common stockholders during the tax years ended August 31, 2026, 2025, and 2024 were as follows:


	Tax Year Ended August 31,
	2026		2025		2024
Ordinary income	$	141,699	$	189,162	$	227,508
Capital gain	—		—		—
Return of capital	105,541		69,913		71,414
Total distributions paid to common stockholders	$	247,240	$	259,075	$	298,922

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The tax character of dividends paid to preferred stockholders during the tax years ended August 31, 2026, 2025, and 2024 were as follows:


	Tax Year Ended August 31,
	2026		2025		2024
Ordinary income	$	106,458	$	106,977	$	99,253
Capital gain	—		—		—
Return of capital	—		—		—
Total distributions paid to preferred stockholders	$	106,458	$	106,977	$	99,253

For the tax year ending August 31, 2026, the tax character of distributions paid to stockholders through August 31, 2026 is expected to be ordinary income and return of capital. However, due to the difference between our fiscal and tax year ends, the final determination of the tax character of distributions between ordinary income and return of capital will not be made until we file our tax return for the tax year ending August 31, 2026.

As of August 26, 2025 when our prior Form 10-K was filed for the year ended June 30, 2025, we estimated our distributions for the fiscal year then ended to be $360,488 of distributions of ordinary income and $10,394 to be return of capital. Subsequent to our filing date, we obtained more information from our underlying investments as to the character of the distributions for the tax year ended August 31, 2025, which resulted in changes to distributions previously disclosed in our Form 10-K filing. As a result of the change, our total distributable loss on our Consolidated Statements of Assets and Liabilities for the year ended June 30, 2025 changed from $1,253,880 to $1,194,137, with $59,743 being reclassified to return of capital from ordinary income. The remaining reclassification of tax distributions classified as return of capital for the tax year ended August 31, 2025 has been adjusted in the fiscal year ended June 30, 2026. This adjustment results in an increase to distributable earnings of $10,170 for the three months ended September 30, 2025 compared to amounts previously disclosed in our Form 10-Q filed on November 6, 2025 for the quarterly period then ended.

Taxable income generally differs from net increase in net assets resulting from operations for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized gains or losses, as unrealized gains or losses are generally not included in taxable income until they are realized. The following table reconciles the net increase in net assets resulting from operations to taxable income for the tax years ended August 31, 2026, 2025, and 2024:


	Tax Year Ended August 31,
	2026		2025		2024
Net increase (decrease) in net assets resulting from operations	$	131,871	$	(490,501)	$	234,119
Net realized (gains) losses on investments	241,579		539,089		434,238
Net unrealized (gains) losses on investments	(46,063)		289,399		(259,971)
Other temporary book-to-tax differences(1)	(79,647)		(42,450)		(81,794)
Permanent differences	55		96		62
Taxable income before deductions for distributions	$	247,795	$	295,633	$	326,654

(1) Temporary book-to-tax differences include timing recognition of CLO income, flow-through investment income/loss, and dividend income from portfolio companies.

As of our most recent tax year ended August 31, 2026, we had no undistributed ordinary income in excess of cumulative distributions and no capital gain in excess of cumulative distributions.

Capital losses in excess of capital gains earned in a tax year may generally be carried forward and used to offset capital gains, subject to certain limitations. As of our most recent tax year ended August 31, 2026, we had a capital loss carryforward of $784,995 available for use in later tax years.

As of September 30, 2026, the cost basis of investments for tax purposes was $6,025,665 resulting in an estimated net unrealized loss of $81,188. As of June 30, 2026, the cost basis of investments for tax purposes was $6,367,797 resulting in an estimated net unrealized loss of $25,239. As of September 30, 2026, the gross unrealized gains and losses were $1,193,882 and $1,275,070, respectively. As of June 30, 2026, the gross unrealized gains and losses were $1,263,482 and $1,288,721, respectively. Due to the difference between our fiscal year end and tax year end, the cost basis of our investments for tax purposes as of September 30, 2026 and June 30, 2026 was calculated based on the book cost of investments as of September 30,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

2026 and June 30, 2026, respectively, with cumulative book-to-tax adjustments for investments through August 31, 2026 and 2025, respectively.

In general, we may make certain adjustments to the classification of net assets as a result of permanent book-to-tax differences, which may include merger-related items, differences in the book and tax basis of certain assets and liabilities, and nondeductible federal excise taxes, among other items. During the tax year ended August 31, 2026, we increased total distributable earnings by $55, decreased accumulated realized losses by $17,799, and decreased capital in excess of par value by $17,854. During the tax year ended August 31, 2025, we increased total distributable earnings by $97 and decreased accumulated realized losses by $16,243, and decreased capital in excess of par value by $16,339. Due to the difference between our fiscal and tax year end, the reclassifications for the taxable year ended August 31, 2025, once finalized, were recorded in the fiscal year ending June 30, 2026 and the reclassifications for the taxable year ended August 31, 2025 were recorded in the fiscal year ended June 30, 2026.

Note 13. Related Party Agreements and Transactions

Investment Advisory Agreement

We have entered into an investment advisory and management agreement with the Investment Adviser (the “Investment Advisory Agreement”) under which the Investment Adviser, subject to the overall supervision of our Board of Directors, manages the day-to-day operations of, and provides investment advisory services to, us. Under the terms of the Investment Advisory Agreement, the Investment Adviser: (i) determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes, (ii) identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies), and (iii) closes and monitors investments we make.

The Investment Adviser’s services under the Investment Advisory Agreement are not exclusive, and it is free to furnish similar services to other entities so long as its services to us are not impaired. For providing these services the Investment Adviser receives a fee from us, consisting of two components: a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 2.00% on our total assets. For services currently rendered under the Investment Advisory Agreement, the base management fee is payable quarterly in arrears. The base management fee is calculated based on the average value of our gross assets at the end of the two most recently completed calendar quarters and appropriately adjusted for any share issuances or repurchases during the current calendar quarter. The total gross base management fee incurred to the favor of the Investment Adviser was $31,218 and $33,617 during the three months ended September 30, 2026 and 2025, respectively.

The incentive fee has two parts. The first part, the income incentive fee, is calculated and payable quarterly in arrears based on our pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees and other fees that we receive from portfolio companies) accrued during the calendar quarter, minus our operating expenses for the quarter (including the base management fee, expenses payable under the Administration Agreement described below, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with payment-in-kind interest and zero coupon securities), accrued income that we have not yet received in cash. Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital gains or losses. Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets at the end of the immediately preceding calendar quarter, is compared to a “hurdle rate” of 1.75% per quarter (7.00% annualized).

The net investment income used to calculate this part of the incentive fee is also included in the amount of the gross assets used to calculate the 2.00% base management fee. We pay the Investment Adviser an income incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows:

•No incentive fee in any calendar quarter in which our pre-incentive fee net investment income does not exceed the hurdle rate;

•100.00% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate); and

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

•20.00% of the amount of our pre-incentive fee net investment income, if any, that exceeds 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized assuming a 7.00% annualized hurdle rate).

These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.

The second part of the incentive fee, the capital gains incentive fee, is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 20.00% of our realized capital gains for the calendar year, if any, computed net of all realized capital losses and unrealized capital depreciation at the end of such year. In determining the capital gains incentive fee payable to the Investment Adviser, we calculate the aggregate realized capital gains, aggregate realized capital losses and aggregate unrealized capital depreciation, as applicable, with respect to each investment that has been in our portfolio. For the purpose of this calculation, an “investment” is defined as the total of all rights and claims which may be asserted against a portfolio company arising from our participation in the debt, equity, and other financial instruments issued by that company. Aggregate realized capital gains, if any, equal the sum of the differences between the aggregate net sales price of each investment and the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate realized capital losses equal the sum of the amounts by which the aggregate net sales price of each investment is less than the aggregate amortized cost basis of such investment when sold or otherwise disposed. Aggregate unrealized capital depreciation equals the sum of the differences, if negative, between the aggregate valuation of each investment and the aggregate amortized cost basis of such investment as of the applicable calendar year-end. At the end of the applicable calendar year, the amount of capital gains that serves as the basis for our calculation of the capital gains incentive fee involves netting aggregate realized capital gains against aggregate realized capital losses on a since-inception basis and then reducing this amount by the aggregate unrealized capital depreciation. If this number is positive, then the capital gains incentive fee payable is equal to 20.00% of such amount, less the aggregate amount of any capital gains incentive fees paid since inception.

The total income incentive fee incurred was $7,743 and $1,234 during the three months ended September 30, 2026 and 2025, respectively. No capital gains incentive fee was incurred during the three months ended September 30, 2026 and 2025.

Administration Agreement

We have also entered into an administration agreement (the “Administration Agreement”) with Prospect Administration under which Prospect Administration, among other things, provides (or arranges for the provision of) administrative services and facilities for us. For providing these services, we reimburse Prospect Administration for our allocable portion of overhead incurred by Prospect Administration in performing its obligations under the Administration Agreement, including rent and our allocable portion of the costs of our Chief Financial Officer and Chief Compliance Officer and her staff. Under this agreement, Prospect Administration furnishes us with office facilities, equipment and clerical, bookkeeping and record keeping services at such facilities. Prospect Administration also performs, or oversees the performance of, our required administrative services, which include, among other things, being responsible for the financial records that we are required to maintain and preparing reports to our stockholders and reports filed with the SEC. In addition, Prospect Administration assists us in determining and publishing our net asset value, overseeing the preparation and filing of our tax returns and the printing and dissemination of reports to our stockholders, and generally oversees the payment of our expenses and the performance of administrative and professional services rendered to us by others. Under the Administration Agreement, Prospect Administration also provides on our behalf managerial assistance to certain portfolio companies (see Managerial Assistance to Portfolio Companies section below). The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. Prospect Administration is a wholly-owned subsidiary of the Investment Adviser.

The Administration Agreement provides that, absent willful misfeasance, bad faith or negligence in the performance of its duties or by reason of the reckless disregard of its duties and obligations, Prospect Administration and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with it are entitled to indemnification from us for any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) arising from the rendering of Prospect Administration’s services under the Administration Agreement or otherwise as administrator for us. Our payments to Prospect Administration are reviewed quarterly by our Board of Directors.

In July 2026, Prospect Administration finalized a litigation settlement related to a portfolio company that provided $3,250 in proceeds to Prospect Administration. The proceeds were used to offset the below allocations of overhead expense from Prospect Administration to the Company during the three months ended September 30, 2026.

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

The gross allocation of overhead expense from Prospect Administration to the Company was $5,524 and 5,524 for the three months ended September 30, 2026 and 2025, respectively. The $3,250 in settlement proceeds discussed above was recorded in the three months ended September 30, 2026 to offset this allocation of overhead expense and is presented as a reimbursement of administrative expenses to arrive at the total net operating expenses reported in the Consolidated Statement of Operations for the three months ended September 30, 2026.

Prospect Administration received estimated payments of $252 and $645 directly from our portfolio companies for legal, tax, and other administrative services during the three months ended September 30, 2026 and 2025, respectively. We were given a credit for these payments as a reduction of the administrative services cost payable by us to Prospect Administration. Had Prospect Administration not received these payments during the three months ended September 30, 2026 and 2025, Prospect Administration’s charges for its administrative services during the respective periods would have increased by this amount.

Managerial Assistance

As a BDC, we are obligated under the 1940 Act to make available to certain of our portfolio companies significant managerial assistance. “Making available significant managerial assistance” refers to any arrangement whereby we provide significant guidance and counsel concerning the management, operations, or business objectives and policies of a portfolio company. We are also deemed to be providing managerial assistance to all portfolio companies that we control, either by ourselves or in conjunction with others. The nature and extent of significant managerial assistance provided by us to controlled and non-controlled portfolio companies will vary according to the particular needs of each portfolio company. Examples of such activities include (i) advice on recruiting, hiring, management and termination of employees, officers and directors, succession planning and other human resource matters; (ii) advice on capital raising, capital budgeting, and capital expenditures; (iii) advice on advertising, marketing, and sales; (iv) advice on fulfillment, operations, and execution; (v) advice on managing relationships with unions and other personnel organizations, financing sources, vendors, customers, lessors, lessees, lawyers, accountants, regulators and other important counterparties; (vi) evaluating acquisition and divestiture opportunities, plant expansions and closings, and market expansions; (vii) participating in audit committee, nominating committee, board and management meetings; (viii) consulting with and advising board members and officers of portfolio companies (on overall strategy and other matters); and (ix) providing other organizational, operational, managerial and financial guidance.

Prospect Administration arranges for the provision of such managerial assistance arrangement on our behalf. When doing so, Prospect Administration utilizes its own personnel and primarily personnel of our Investment Adviser. We may bear the administrative expense of managerial assistance or, on behalf of Prospect Administration, may invoice portfolio companies receiving and paying for contractual managerial assistance, and we remit to Prospect Administration its cost of providing such services, including the charges deemed appropriate by our Investment Adviser for providing such managerial assistance. No income is recognized by Prospect.

During the three months ended September 30, 2026 and September 30, 2025, we received payments of $3,191 and $2,810, respectively, from our portfolio companies for contractual managerial assistance and subsequently remitted these amounts to Prospect Administration.

Co-Investments

On January 6, 2026, we, our Investment Adviser and certain affiliates received an exemptive order from the SEC (the “Order”), which superseded a prior co-investment exemptive order granted on January 13, 2020 (and amended on August 2, 2022), that permits us, among other things, to participate with other funds managed by the Investment Adviser or certain affiliates, including Priority Income Fund, Inc., Prospect Floating Rate and Alternative Income Fund, Inc. and Prospect Enhanced Yield Fund, in certain co-investment transactions, where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions included therein.

Under the terms of the Order, we generally are permitted to co-invest with certain of our affiliates if such co-investments are done on the same terms and at the same time, as further detailed in the Order. The Order requires that a “required majority” (as defined in Section 57(o) of the 1940 Act) of our Board of Directors make certain findings (1) in most instances when we co-invest with our affiliate in an issuer where our affiliate has an existing investment in the issuer, and either (i) we do not have an existing investment in the issuer or (ii) we do have an existing investment in the issuer, but we are not co-investing on a pro-rata basis with our affiliate, and (2) if we dispose of an asset acquired in a transaction under the Order unless the disposition is done on a pro rata basis.

Pursuant to the Order, our Board of Directors oversees our participation in the co-investment program. As required by the Order, we have adopted, and our Board of Directors has approved, policies and procedures reasonably designed to ensure

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

compliance with the terms of the Order, and the Investment Adviser and our Chief Compliance Officer will provide reporting to the Board of Directors.

In certain situations where a co-investment with one or more funds managed by the Investment Adviser or its affiliates is not covered by the Order, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Investment Adviser or its affiliates will need to decide which fund will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations.

We reimburse CLO investment valuation services fees initially incurred by Priority Income Fund, Inc. During the three months ended September 30, 2026 and September 30, 2025, we recognized expenses related to valuation services of $1 and $14, respectively. Additionally, we both incur and reimburse for expenses related to marketing, insurance, legal fees, offering costs and general and administrative expenses that are allocated between Prospect, Priority Income Fund, Inc., Prospect Floating Rate and Alternative Income Fund, Inc., Prospect Enhanced Yield Fund and Prospect Credit REIT, LLC. During the three months ended September 30, 2026 and September 30, 2025, the net amount reimbursed to us for these expenses was $81 and $87, respectively.

Note 14. Transactions with Controlled Companies

The descriptions below detail the transactions which Prospect Capital Corporation (“Prospect”) has entered into with each of our controlled companies. Certain of the controlled entities discussed below were consolidated effective July 1, 2014 (see Note 1). As such, transactions with these Consolidated Holding Companies are presented on a consolidated basis.

Belnick, LLC (d/b/a The Ubique Group)

On March 31, 2025, Prospect exercised certain rights and remedies under its loan documents to exercise voting rights in respect of the equity of Belnick, LLC and certain of its subsidiaries (“Belnick”), enabling Prospect to control 100% of the voting power of Belnick and to, among other things, appoint new officers, all of whom are our Investment Adviser’s professionals. As a result, Prospect’s investment in Belnick became classified as a control investment.

Effective May 22, 2025, Prospect established 100% ownership of Belnick Holdings of Delaware, LLC (“Belnick Delaware”), a Consolidated Holding Company. On May 23, 2025, Belnick Delaware acquired a 100% voting interest in Belnick’s Class P Preferred units, which together with the voting rights obtained through proxy over the remaining Class A units, provides Prospect with 100% of the voting interest in Belnick. Belnick Delaware executed a share transfer agreement for the remaining Class A units and effective December 31, 2025, owns 100% of the membership units in Belnick. Belnick is a provider of high-volume, value-oriented furniture and furnishings to a broad range of residential and commercial end markets.


	Three Months Ended
	September 30, 2026		September 30, 2025
Interest Income	$	3,079	$	2,863
Other Income
Structuring Fee	$	—	$	13
Administrative Agent	13		—
Total Other Income	$	13	$	13
Reimbursement of Legal, Tax, etc. (1)	$	8	$	84

(1) Paid from Belnick to Prospect Administration LLC (“PA”) as reimbursement for legal, tax, and portfolio level accounting services provided directly to Belnick (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
	September 30, 2026	September 30, 2025

Interest Income Capitalized as PIK	2,207	$	2,863

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	34	$	33

Other Receivables (4)	4		3

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from/to Belnick to/from Prospect for reimbursement of future expenses paid by Prospect on behalf of Belnick.

CP Energy Services Inc.

Prospect owns 100% of the equity of CP Holdings of Delaware LLC (“CP Holdings”), a Consolidated Holding Company. CP Holdings owns 99.8% of the equity of CP Energy Services, Inc. (“CP Energy”), and the remaining equity is owned by CP Energy management. CP Energy owns directly or indirectly 100% of each of CP Well; Wright Foster Disposals, LLC; Foster Testing Co., Inc.; ProHaul Transports, LLC; and Wright Trucking, Inc. CP Energy provides oilfield flowback services and fluid hauling and disposal services through its subsidiaries. In June 2019, CP Energy purchased a controlling interest in the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”) a portfolio company of Prospect with $61,912 and $61,429 in first lien term loans (the “Spartan Term Loans”) due to us as of September 30, 2026 and June 30, 2026, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, our Spartan Term Loans are presented as control investments under CP Energy beginning June 30, 2019. Spartan remains the direct borrow and guarantor to Prospect for the Spartan Term Loans.

In December 2019, Wolf Energy Holdings, Inc. (“Wolf Energy Holdings”), our Consolidated Holding Company that previously owned 100% of Appalachian Energy LLC (“AEH”); Wolf Energy Services Company, LLC (“Wolf Energy Services”); and Wolf Energy, LLC (collectively our previously controlled membership interest and net profit interest investments in “Wolf Energy”), merged with and into CP Energy, with CP Energy continuing as the surviving entity. CP Energy acquired 100% of our equity investment in Wolf Energy, which is reflected in our valuation of the CP Energy common stock beginning December 31, 2019.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income
Interest Income from CP Energy		$	3,596	$	3,367
Interest Income from Spartan		1,884		1,655
Total Interest Income		$	5,480	$	5,022

(1) Paid from CP Energy to Prospect Administration LLC as reimbursement for legal, tax, and portfolio level accounting services provided directly to CP Energy (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions
CP Energy		$	1,900	$	400
Spartan		—		1,400
Total Additions		$	1,900	$	1,800
Interest Income Capitalized as PIK
CP Energy		$	2,793	$	867
Spartan		483		979
Total Interest Income Capitalized as PIK		$	3,276	$	1,846

120

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (2)	$	463	$	59

Other Receivables (3)	1,110		1,107

(2) Interest income recognized but not yet paid.

(3) Represents amounts due from CP Energy and Spartan to Prospect for reimbursement of expenses paid by Prospect on behalf of CP Energy and Spartan.

Credit Central Loan Company, LLC

Prospect owns 100% of the equity of Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”), a Consolidated Holding Company. Credit Central Delaware owns 99.8% of the equity of Credit Central Loan Company, LLC (f/k/a Credit Central Holdings, LLC) (“Credit Central”), with entities owned by Credit Central management owning the remaining equity. Credit Central owns 100% of each of Credit Central, LLC; Credit Central South, LLC; Credit Central of Texas, LLC; and Credit Central of Tennessee, LLC. Credit Central is a branch-based provider of installment loans.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	1,371	$	2,304








Managerial Assistance (1)		175		175
Reimbursement of Legal, Tax, etc. (2)		12		—

(1) No income recognized by Prospect. Managerial Assistance (“MA”) payments were paid from Credit Central to Prospect and subsequently remitted to PA.

(2) Paid from Credit Central to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to Credit Central (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	1,398	$	2,315


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	(11)	$	15

Other Receivables (4)	83		79

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from Credit Central to Prospect for reimbursement of expenses paid by Prospect on behalf of Credit Central.

Echelon Transportation LLC (f/k/a Echelon Aviation LLC)

121

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Prospect owns 100% of the membership interests of Echelon Transportation LLC (“Echelon”). Echelon owns 60.7% of the equity of AerLift Leasing Limited (“AerLift”). Following Echelon’s receipt of the final plane proceeds in the year ended June 30, 2026, we wrote off the remaining cost basis of our common and preferred equity and recognized realized losses of $22,738 and $29,596 respectively.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	—	$	757








Managerial Assistance (1)		—		63
Reimbursement of Legal, Tax, etc. (2)		12		13

(1) No income recognized by Prospect. MA payments were paid from Echelon to Prospect and subsequently remitted to PA.
(2) Paid from Echelon to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to Echelon (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025


Repayment of Loan Receivable		$	—	$	30,800


	As of
	September 30, 2026		June 30, 2026


Other Receivables (4)	$	9	$	9

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from Echelon to Prospect for reimbursement of expenses paid by Prospect on behalf of Echelon.

Energy Solutions Holdings Inc.

Prospect owns 100% of the equity of Energy Solutions Holdings Inc. (“Energy Solutions”), a Consolidated Holding Company.

Energy Solutions owns 100% of each of Freedom Marine Solutions, LLC (“Freedom Marine”) (see discussion below for transactions with our controlled portfolio company “Freedom Marine Solutions, LLC”) and Yatesville Coal Company, LLC (“Yatesville”).

Energy Solutions also serves as the holding company for our 4.9% voting interest of Discovery MSO Holdco, LLC. Discovery MSO Holdco, LLC owns 100% of Discovery Point Retreat, LLC, a non-control portfolio company of Prospect with outstanding principal of $20,057 in first lien term loans and $987 in first lien delay draw term loans due to us as of September 30, 2026.

Energy Solutions also serves as the holding company for our 4.7% voting interest of TCSPV Holdings IV, LLC. TCSPV Holdings IV, LLC owns 100% of Healthcare Venture Partners, LLC, a non-control portfolio company of Prospect with outstanding principal of $11,165 in first lien term loans due to us as of September 30, 2026.

Energy Solutions also serves as the holding company for our 4.8% voting interest of BFC-SDR, LLC. BFC-SDR, LLC owns 100% of Safety Solutions Financing, LLC, a non-control portfolio company of Prospect with outstanding principal of $19,204 in first lien term loans due to us as of September 30, 2026.

First Tower Finance Company LLC

Prospect owns 100% of the equity of First Tower Holdings of Delaware LLC (“First Tower Delaware”), a Consolidated Holding Company. First Tower Delaware holds 80.10% of the voting interest of First Tower Finance Company LLC (“First Tower Finance”), resulting in a 78.06% ownership of First Tower Finance. First Tower Finance owns 100% of First Tower, LLC (“First Tower”), a multiline specialty finance company.

122

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	18,824	$	17,333

Other Income
Structuring Fee		$	281	$	—


Royalty/Net Interest		2,798

Total Other Income		$	3,079	$	—
Managerial Assistance (1)		$	1,000	$	600
Reimbursement of Legal, Tax, etc. (2)		—		6

(1) No income recognized by Prospect. MA payments were paid from First Tower to Prospect and subsequently remitted to PA.

(2) Paid from First Tower to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to First Tower (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	9,366	$	—
Interest Income Capitalized as PIK		—		31


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	209	$	205

Other Receivables (4)	4		4

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from First Tower to Prospect for reimbursement of expenses paid by Prospect on behalf of First Tower.

Freedom Marine Solutions, LLC

As discussed above, Prospect owns 100% of the equity of Energy Solutions, a Consolidated Holding Company. Energy Solutions owns 100% of Freedom Marine. Freedom Marine owns 100% of each of Vessel Company, LLC (“Vessel”); Vessel Company II, LLC (“Vessel II”); and Vessel Company III, LLC (“Vessel III”). Vessel II owns MV JF Jett LLC; MV Clint Jett, LLC; and MV Gulf Endeavor, LLC. Vessel III owns MV FMS Courage, LLC; and MV FMS Endurance, LLC.


	Three Months Ended
	September 30, 2026		September 30, 2025
Additions	$	—	$	350


	As of
	September 30, 2026		June 30, 2026


Other Receivables (1)	$	5	$	5

(1) Represents amounts due from Freedom Marine to Prospect for reimbursement of expenses paid by Prospect on behalf of Freedom Marine.

123

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

InterDent, Inc.

Prospect owns 100% of the equity of InterDent, Inc. (“InterDent”).


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	11,379	$	10,455








Managerial Assistance (1)		366		366
Reimbursement of Legal, Tax, etc. (2)		—		21

(1) No income recognized by Prospect. MA payments were paid from InterDent to Prospect and subsequently remitted to PA.
(2) Paid from InterDent to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to InterDent (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	3,500	$	3,000
Interest Income Capitalized as PIK		4,914		4,272


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	127	$	124

Other Receivables (4)	20		11

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from InterDent to Prospect for reimbursement of expenses paid by Prospect on behalf of InterDent.

Kickapoo Ranch Pet Resort

Prospect owns 100% of the membership interest of Kickapoo Ranch Pet Resort (“Kickapoo”). Kickapoo is a luxury pet boarding facility.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	20	$	22


	As of
	September 30, 2026		June 30, 2026


Other Receivables (1)	$	11	$	11

(1) Represents amounts due from Kickapoo to Prospect for reimbursement of expenses paid by Prospect on behalf of Kickapoo.

124

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

MITY, Inc.

Prospect owns 100% of the equity of MITY Holdings of Delaware Inc. (“MITY Delaware”), a Consolidated Holding Company.

MITY Delaware owns 100% of the equity of MITY, Inc. (f/k/a MITY Enterprises, Inc.) (“MITY”). MITY owns 100% of each of MITY-Lite, Inc. (“MITY-Lite”); Broda USA, Inc. (f/k/a Broda Enterprises USA, Inc.) (“Broda USA”); and Broda Enterprises ULC (“Broda Canada”). MITY is a designer, manufacturer and seller of multipurpose room furniture and specialty healthcare seating products.

During the three months ended December 31, 2016, Prospect formed a separate legal entity, MITY FSC, Inc., (“MITY FSC”) in which Prospect owns 100% of the equity. MITY FSC does not have material operations. This entity earns commission payments from MITY-Lite based on its sales to foreign customers, and distributes it to its shareholder. We recognize such commission, if any, as other income.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	2,192	$	2,380
Interest Income from Broda Canada		129		—
Total Interest Income		$	2,321	$	2,380

Other Income
Structuring Fee		$	50	$	—




Total Other Income		$	50	$	—
Managerial Assistance (1)		$	113	$	113

Realized (Loss) Gain		6		5

(1) No income recognized by Prospect. MA payments were paid from MITY to Prospect and subsequently remitted to PA.


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	2,015	$	—


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (2)	$	25	$	27

Other Receivables (3)	17		2

(2) Interest income recognized but not yet paid.

(3) Represents amounts due from MITY to Prospect for reimbursement of expenses paid by Prospect on behalf of MITY.

National Property REIT Corp.

Prospect owns 100% of the equity of NPH Property Holdings, LLC (“NPH”), a Consolidated Holding Company. NPH owns 100% of the common equity of National Property REIT Corp. (“NPRC”).

NPRC is a Maryland corporation and a qualified REIT for federal income tax purposes. In order to qualify as a REIT, NPRC issued 125 shares of Series A Cumulative Non-Voting Preferred Stock to 125 accredited investors. The preferred stockholders are entitled to receive cumulative dividends semi-annually at an annual rate of 12.5% and do not have the ability to participate in the management or operation of NPRC.

NPRC was formed to hold for investment, operate, finance, lease, manage, and sell a portfolio of real estate assets and engage in any and all other activities as may be necessary, incidental or convenient to carry out the foregoing. NPRC acquires real estate assets, including, but not limited to, industrial, commercial, and multi-family properties. NPRC may acquire real estate

125

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

assets directly or through joint ventures by making a majority equity investment in a property-owning entity (the “JV”). Additionally, through its wholly owned subsidiaries, NPRC invests in online consumer loans and rated secured structured notes (“RSSN”).

During the three months ended September 30, 2026, we provided $15,017 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	8,998	$	15,829










Managerial Assistance (1)		575		575
Reimbursement of Legal, Tax, etc. (2)		241		756

(1) No income recognized by Prospect. MA payments were paid from NPRC to Prospect and subsequently remitted to PA.

(2) Paid from NPRC to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to NPRC (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	15,017	$	25,568

Repayment of Loan Receivable		—		22,604


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	99	$	158

Other Receivables (4)	—		1

(3) Interest income recognized but not yet paid.

(4) Represents amounts due to NPRC from Prospect for a credit of reimbursements of expenses paid by Prospect on behalf of NPRC.

Nationwide Loan Company LLC

Prospect owns 100% of the membership interests of Nationwide Acceptance Holdings LLC (“Nationwide Holdings”), a Consolidated Holding Company. Nationwide Holdings owns 94.22% of the equity of Nationwide Loan Company LLC (“Nationwide”), with members of Nationwide management owning the remaining 5.78% of the equity.

On June 20, 2025, the First Lien Term Loan debt of $29,091 converted to equity.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	282	$	255








Managerial Assistance (1)		100		100
Reimbursement of Legal, Tax, etc. (2)		—		3

(1) No income recognized by Prospect. MA payments were paid from Nationwide to Prospect and subsequently remitted to PA.
(2) Paid from Nationwide to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to Nationwide (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025

Interest Income Capitalized as PIK		$	282	$	254

126

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	3	$	3

Other Receivables (4)	55		55

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from Nationwide to Prospect for reimbursement of expenses paid by Prospect on behalf of Nationwide.

NMMB, Inc.

Prospect owns 100% of the equity of NMMB Holdings, Inc. (“NMMB Holdings”), a Consolidated Holding Company. NMMB Holdings owns 92.77% of the fully-diluted equity of NMMB, Inc. (f/k/a NMMB Acquisition, Inc.) (“NMMB”) as of September 30, 2026 and June 30, 2026, with NMMB management owning the remaining equity. NMMB owns 100% of Refuel Agency, Inc. (“Refuel Agency”). Refuel Agency owns 100% of Armed Forces Communications, Inc. (“Armed Forces”). NMMB is an advertising media buying business.


	Three Months Ended
		September 30, 2026		September 30, 2025


Interest Income		$	949	$	991

Dividend Income (1)		1,351		—







Managerial Assistance (2)		100		100
Realized (Loss) Gain		(1,351)		842

(1) All dividends were paid from earnings and profits of NMMB.

(2) No income recognized by Prospect. MA payments were paid from NMMB to Prospect and subsequently remitted to PA.


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	11	$	10

Other Receivables (4)	1		1

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from NMMB to Prospect for reimbursement of expenses paid by Prospect on behalf of NMMB.

Pacific World Corporation

Prospect owns 100% of the preferred equity of Pacific World Corporation (“Pacific World”), which represents a 99.99% and 99.99% fully-diluted ownership interest of Pacific World as of September 30, 2026 and June 30, 2026, respectively. As a result, Prospect’s investment in Pacific World is classified as a control investment.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	2,499	$	2,522

Other Income
Structuring Fee		$	—	$	175




Total Other Income		$	—	$	175

127

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Three Months Ended
		September 30, 2026		September 30, 2025
Additions		$	—	$	7,000
Interest Income Capitalized as PIK		2,094		2,086


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (1)	$	28	$	27

Other Receivables (2)	217		197

(1) Interest income recognized but not yet paid.

(2) Represents amounts due from Pacific World to Prospect for reimbursement of expenses paid by Prospect on behalf of Pacific World.

QC Holdings TopCo, LLC

As of September 30, 2026 and June 30, 2026, Prospect holds a 95.4% and 95.4% equity interest in QC Holdings TopCo, LLC (“QC Holdings”), representing a controlling beneficial interest in QC Holdings per the 1940 Act. QC Holdings specializes in consumer-focused alternative financial services and credit solutions.


	Three Months Ended
	September 30, 2026		September 30, 2025
Interest Income	$	3,482	$	3,374








Managerial Assistance (1)	163		163
Reimbursement of Legal, Tax, etc. (2)	20		269

(1) No income recognized by Prospect. MA payments were paid from QC Holdings to Prospect and subsequently remitted to PA.

(2) Paid from QC Holdings to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to QC Holdings (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
	September 30, 2026		September 30, 2025
Additions	$	3,430	$	1,706


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (2)	$	40	$	40
Other Receivables (3)	(119)		(122)

(2) Interest income recognized but not yet paid.

(3) Represents amounts due to QC Holdings from Prospect for a credit of reimbursements of expenses paid by Prospect on behalf of QC Holdings.

R-V Industries, Inc.

Prospect owns 100% of the equity of R-V Holdings of Delaware, LLC (“R-V Holdings”), a Consolidated Holding Company. R-V Holdings owns 90.01% of the fully-diluted equity of R-V Industries, Inc. (“R-V”), with R-V management owning the remaining 9.99% of the equity. On December 15, 2020 we restructured our $28,622 Senior Subordinated Note with R-V into a $28,622 First Lien Note. No realized gain or loss was recorded as a result of the transaction.

128

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	1,828	$	1,456
Dividend Income (1)		—		877







Managerial Assistance (2)		45		45

(1) All dividends were paid from earnings and profits of R-V.

(2) No income recognized by Prospect. MA payments were paid from R-V to Prospect and subsequently remitted to PA.


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	—	$	—

Other Receivables (4)	10		10

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from R-V to Prospect for reimbursement of expenses paid by Prospect on behalf of R-V.

Strategic Chemical Solutions Corp. (effective October 21, 2025 f/k/a USES Corp.)

Prospect owns 99.96% of the equity of Strategic Chemical Solutions Corp. as of September 30, 2026. Strategic Chemical Solutions Corp. provides industrial, environmental, and maritime services in the Gulf States region.

On December 31, 2025, we wrote down the cost basis of the Term Loan A and the Term Loan B loans to zero and realized a loss of $35,568 and $30,651 respectively.


	Three Months Ended
	September 30, 2026		September 30, 2025
Interest Income	$	733	$	721


	Three Months Ended
	September 30, 2026		September 30, 2025

Interest Income Capitalized as PIK	$	564	$	451


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (1)	$	8	$	8

Other Receivables (2)	197		197

(1) Interest income recognized but not yet paid.

(2) Represents amounts due from Strategic Chemical Solutions Corp. to Prospect for reimbursement of expenses paid by Prospect on behalf of Strategic Chemical Solutions Corp.

Universal Turbine Parts, LLC

On December 10, 2018, UTP Holdings Group, Inc. (“UTP Holdings”) purchased all of the voting stock of Universal Turbine Parts, LLC (“UTP”) and appointed a new board of directors to UTP Holdings, consisting of three employees of the Investment

129

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Adviser. At the time UTP Holdings acquired UTP, UTP Holdings (f/k/a Harbortouch Holdings of Delaware) was a wholly-owned holding company controlled by Prospect and therefore Prospect’s investment in UTP is classified as a control investment.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	1,493	$	1,579









Managerial Assistance (1)		149		3

Reimbursement of Legal, Tax, etc. (2)		—		1

(1) No income recognized by Prospect. MA payments were paid from UTP to Prospect and subsequently remitted to PA.

(2) Paid from UTP to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to UTP (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
		September 30, 2026		September 30, 2025

Dividend Income Capitalized as PIK		$	2,148	$	—
Repayment of Loan Receivable		63		54


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (3)	$	17	$	16

Other Receivables (4)	7		4

(3) Interest income recognized but not yet paid.

(4) Represents amounts due from UTP to Prospect for reimbursement of expenses paid by Prospect on behalf of UTP.

Valley Electric Company, Inc.

On July 1, 2026, we sold our 94.99% equity interests in Valley Electric for total consideration of $280,779, including fees and escrowed amounts. The consideration includes repayment in full of the $10,452 First Lien Term Loan, $34,777 First Lien Term B, and $38,630 First Lien Term Loan receivable to us, together with $35 of accrued interest and a $2,516 prepayment premium for early repayment, as well as a $9,840 advisory fee for the transaction. We received $143,874 of cash at closing and recorded a realized gain of $131,821 on the sale of our equity position in Valley Electric. In addition, there is $40,655 being held in escrow and additional future earn-out potential that will be recognized as additional realized gain if and when it is received.

130

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income
Interest Income from Valley		$	313	$	322
Interest Income from Valley Electric		2,202		2,825
Total Interest Income		$	2,515	$	3,147
Dividend Income (1)		$	(1,083)	$	—
Other Income

Advisory Fee		$	9,840	$	—

Royalty, net profit and revenue interests		—		167

Total Other Income		$	9,840	$	167
Managerial Assistance (2)		—		150
Reimbursement of Legal, Tax, etc. (3)		78		—
Realized Gain		131,821

(1) All dividends were paid from earnings and profits of Valley.

(2) No income recognized by Prospect. MA payments were paid from Valley Electric to Prospect and subsequently remitted to PA.

(3) Paid from Valley to PA as reimbursement for legal, tax, and portfolio level accounting services provided directly to Valley (No direct income recognized by Prospect, but we were given a credit for these payments as a reduction to the administrative services payable by Prospect to PA).


	Three Months Ended
	September 30, 2026		September 30, 2025

Repayment of loan receivable	$	95,912	$	—


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (4)	$	—	$	35

Other Receivables (5)	(1)		9

(4) Interest income recognized but not yet paid.

(5) Represents amounts due to Valley Electric from Prospect for a credit of reimbursements of expenses paid by Prospect on behalf of Valley Electric.

Victor Technology, LLC

Prospect owns 100% of the equity of Victor Holdings of Delaware, LLC (“Victor Holdings”), a Consolidated Holding Company. During the year ended June 30, 2026, Victor Holdings acquired 100% of the equity interest in VTI Acquisition, Inc. (“VTI”) and 100% of the equity interest in Victor Technology, LLC (“Victor Technology”). As a result, Prospect’s investment in Victor Technology is classified as a control investment as of September 30, 2026. Victor Technology is a manufacturer and distributor of office supplies, including calculators, standing desks, organizers and paperclips.


	Three Months Ended
		September 30, 2026		September 30, 2025
Interest Income		$	313	$	—

Other Income




Administrative Agent		$	6	$	—
Total Other Income		$	6	$	—

131

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)


	Three Months Ended
		September 30, 2026		September 30, 2025


Repayment of Loan Receivable		$	75	$	—


	As of
	September 30, 2026		June 30, 2026
Interest Receivable (1)	$	3	$	3

Other Receivables (2)	23		17

(1) Interest income recognized but not yet paid.

(2) Represents amounts due from Victor Technology to Prospect for reimbursement of expenses paid by Prospect on behalf of Victor Technology.

Note 15. Litigation

From time to time, we may become involved in various investigations, claims and legal proceedings that arise in the ordinary course of our business. These matters may relate to intellectual property, employment, tax, regulation, contract or other matters. The resolution of such matters as may arise will be subject to various uncertainties and, even if such claims are without merit, could result in the expenditure of significant financial and managerial resources.

We are not aware of any material legal proceedings as of September 30, 2026.

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PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 16. Financial Highlights

The following is a schedule of financial highlights for the three and three months ended September 30, 2026 and September 30, 2025:


	Three Months Ended September 30,
	2026				2025
Per Share Data (10)
Net asset value per common share at beginning of period	$	5.71			$	6.56
Net investment income	0.15				0.17
Net realized and change in unrealized gains (losses) (1)	(0.20)				(0.01)
Net increase (decrease) from operations(10)	(0.05)				0.16

Distributions of net investment income to preferred stockholders	(0.05)			(5)	(0.06)

Total distributions to preferred stockholders(10)	(0.05)				(0.06)
Net increase (decrease) from operations applicable to common stockholders	(0.10)				0.10
Distributions of net investment income to common stockholders	(0.11)			(5)	(0.12)			(7)

Return of Capital to common stockholders	—			(5)	(0.02)			(7)
Total distributions to common stockholders	(0.11)				(0.14)
Effect of other comprehensive income (9)	—			(11)	—
Common stock transactions(2)	(0.15)				(0.08)


Net asset value per common share at end of period	$	5.36		(8)	$	6.45		(8)

Per common share market value at end of period	$	2.08			$	2.75
Total return based on market value(3)	(5.36		%)		(9.34		%)
Total return based on net asset value(3)	(1.33		%)		3.08		%
Shares of common stock outstanding at end of period	536,295,785				465,916,352
Weighted average shares of common stock outstanding	524,466,279				461,356,032

Ratios/Supplemental Data
Net assets at end of period	$	2,875,089			$	3,004,790
Portfolio turnover rate	1.47		%		1.39		%
Annualized ratio of operating expenses to average net assets applicable to common shares(6) (4)	10.39		%		10.45		%
Annualized ratio of net investment income to average net assets applicable to common shares(6)	10.53		%		10.59		%

(1)Realized gains (losses) is inclusive of net realized losses (gains) on investments, net realized losses (gains) from extinguishment of debt, net realized gains (losses) on derivative instruments and foreign currency transactions, and net realized gains (losses) from the repurchases and redemptions of preferred stock.

(2)Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.

(3)Total return based on market value is based on the change in market price per common share between the opening and ending market prices per share in each period and assumes that common stock dividends are reinvested in accordance with our common stock dividend reinvestment plan. Total return based on net asset value is based upon the change in net asset value per common share between the opening and ending net asset values per common share in each period and assumes that dividends are reinvested in accordance with our common stock dividend reinvestment plan. For periods less than a year, total return is not annualized.

(4)Absent the reimbursement of administrative expenses described in Note 13, the ratio of operating expenses to average net assets applicable to common shares would have been 10.84% for the quarter ended September 30, 2026.

(5)Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2026. See Note 12.

(6)Operating expenses for the respective fiscal periods do not reflect the effect of dividend payments to preferred shareholders.

133

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

(7)The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-Q filing for September 30, 2025. Certain reclassifications have been made in the presentation of prior period amounts. See Note 2 and Note 12 within the accompanying notes to the consolidated financial statements for further discussion.

(8)Does not foot due to rounding.

(9)Effect of other comprehensive income relates to changes in the fair value of foreign currency forward contracts designated as cash flow hedges of forecasted interest payments on the 5.50% 2030 Notes, including excluded components, net of amounts reclassified into earnings.

(10)Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share).

(11)Effect is less than $0.01 per share.

134

PROSPECT CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Continued)

(in thousands, except share and per share data)

Note 17. Segment Reporting

The Company operates through a single operating and reporting segment with an investment objective to generate both current income and capital appreciation. The chief operating decision maker (“CODM”) is comprised of the Company’s chief executive officer and chief operating officer and the CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase (decrease) in net assets resulting from operations applicable to common stockholders (“net income”). In addition to numerous other factors and metrics, the CODM utilizes net income as a key metric in determining the amount of dividends to be distributed to the Company’s common stockholders. As the Company’s operations comprise of a single reporting segment, the segment assets are reflected on the accompanying consolidated statements of assets and liabilities as “total assets” and the significant segment expenses are listed on the accompanying consolidated statement of operations.

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Note 18. Subsequent Events

Management has evaluated subsequent events through the date of issuance of these consolidated financial statements and has determined that there are no subsequent events outside the ordinary scope of business that require adjustment to, or disclosure in, the consolidated financial statements other than those disclosed below.

On October 14, 2026, we gave notice of our election to redeem all $263,220 aggregate principal amount of the outstanding 3.364% 2026 Notes. We expect the redemption to be completed on or about November 13, 2026, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. Following the redemption, none of the 3.364% 2026 Notes will remain outstanding.

On October 6, 2026, our $69,388 second lien term loan to BCPE North Star US Holdco 2, Inc. was fully repaid at par.

On October 29, 2026, we priced an institutional offering of $300,000 in aggregate principal amount of 8.95% Notes due 2031 (the “8.95% 2031 Notes”). We expect net proceeds of approximately $283,400 after deducting estimated offering expenses. The offering is expected to close on November 5, 2026, subject to customary closing conditions. The 8.95% 2031 Notes will mature on October 31, 2031, and bear interest at 8.95% per annum, payable semi-annually on April 30 and October 31, beginning April 30, 2027. We intend to use the net proceeds primarily to refinance existing indebtedness, including the 3.364% 2026 Notes and/or borrowings under the Revolving Credit Facility.

On November 3, 2026, our Board of Directors increased the amount of shares of our common stock that may be repurchased under the Repurchase Program by $100,000 to up to an aggregate of $200,000. As of November 3, 2026, the approximate dollar value of shares that may yet be purchased under the upsized Repurchase Program is $165,860.

On November 4, 2026, we announced the declaration of monthly dividends for our 7.50% Preferred Stock holders of record on the following dates based on an annual dividend rate equal to 7.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), as follows:


Monthly Cash 7.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.156250
January 2027	1/20/2027	2/1/2027	$0.156250
February 2027	2/17/2027	3/1/2027	$0.156250

On November 4, 2026, we announced the declaration of monthly dividends for our Floating Rate Preferred Stock for holders of record on the following dates based on an annualized dividend rate equal to 6.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), authorized on November 3, 2026, as follows:


Monthly Cash Floating Rate Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.135417
January 2027	1/20/2027	2/1/2027	$0.135417
February 2027	2/17/2027	3/1/2027	$0.135417

On November 4, 2026, we announced the declaration of monthly dividends for our 5.50% Preferred Stock for holders of record on the following dates based on an annual dividend rate equal to 5.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), as follows:

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Monthly Cash 5.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.114583
January 2027	1/20/2027	2/1/2027	$0.114583
February 2027	2/17/2027	3/1/2027	$0.114583

On November 4, 2026, we announced the declaration of monthly dividends for our 6.50% Preferred Stock for holders of record on the following dates based on an annual dividend rate equal to 6.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), as follows:


Monthly Cash 6.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.135417
January 2027	1/20/2027	2/1/2027	$0.135417
February 2027	2/17/2027	3/1/2027	$0.135417

On November 4, 2026, we announced the declaration of quarterly dividends for our 5.35% Preferred Stock for holders of record on the following dates based on an annual dividend rate equal to 5.35% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the 5.35% Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month), as follows:


Quarterly Cash 5.35% Preferred Shareholder Distribution	Record Date	Payment Date	Amount ($ per share)
November 2026 - January 2027	1/20/2027	2/1/2027	$0.334375

On November 4, 2026, we announced the declaration of monthly dividends on our common stock as follows:


Monthly Cash Common Stockholder Distribution	Record Date	Payment Date	Amount ($ per share)
November 2026	11/25/2026	12/21/2026	$0.0350
December 2026	12/29/2026	1/20/2027	$0.0350
January 2027	1/27/2027	2/17/2027	$0.0350

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(All figures in this item are in thousands except share, per share and other data.)

The following discussion should be read in conjunction with our consolidated financial statements and related notes and other financial information appearing elsewhere in this Quarterly Report. In addition to historical information, the following discussion and other parts of this Quarterly Report contain forward-looking information that involves risks and uncertainties. Our actual results may differ significantly from any results expressed or implied by these forward-looking statements due to the factors discussed in Part II, “Item 1A. Risk Factors” and “Forward-Looking Statements” appearing elsewhere herein.

Overview

The terms “Prospect”, “the Company”, “we”, “us” and “our” mean Prospect Capital Corporation and its subsidiaries unless the context specifically requires otherwise.

We consolidate certain of our wholly owned and substantially wholly owned holding companies formed by us in order to facilitate our investment strategy. The following companies are included in our consolidated financial statements and are collectively referred to as the “Consolidated Holding Companies”: Belnick Holdings of Delaware, LLC (“Belnick Delaware”); CP Holdings of Delaware LLC (“CP Holdings”); Credit Central Holdings of Delaware, LLC (“Credit Central Delaware”); Energy Solutions Holdings Inc.; First Tower Holdings of Delaware LLC (“First Tower Delaware”); MITY Holdings of Delaware Inc. (“MITY Delaware”); Nationwide Acceptance Holdings LLC; NMMB Holdings, Inc. (“NMMB Holdings”); NPH Property Holdings, LLC (“NPH”); NPH Holdco LLC (“NPH Holdco”); Prospect Opportunity Holdings I, Inc. (“POHI”); R-V Holdings of Delaware, LLC (“R-V Holdings”); SB Forging Company, Inc. (“SB Forging”); STI Holding, Inc.; UTP Holdings Group Inc. (“UTP Holdings”); Valley Electric Holdings I, Inc. (“Valley Holdings I”); Valley Electric Holdings II, Inc. (“Valley Holdings II”); and Victor Holdings of Delaware, LLC (“Victor Holdings”).

We are externally managed by our investment adviser, Prospect Capital Management L.P. (“Prospect Capital Management” or the “Investment Adviser”). Prospect Administration LLC (“Prospect Administration”), a wholly-owned subsidiary of the Investment Adviser, provides administrative services and facilities necessary for us to operate.

Our primary investment strategy is investing in private, middle-market companies in the U.S. in need of capital for refinancings, acquisitions, capital expenditures, growth initiatives, recapitalizations and other purposes. Typically, we focus on making investments in middle-market companies with annual revenues of less than $750 million and enterprise values of less than $1 billion. These private, middle-market companies are primarily owned by private equity funded and independent sponsors or us, as well as by a portfolio company’s management team, founder(s), or other investors. Our typical investment involves a senior and secured loan of less than $250 million.

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Our investments in senior and secured loans are generally senior debt instruments that rank ahead of unsecured debt and equity of a given portfolio company. These loans also have the benefit of security interests on assets of the applicable portfolio company, which often rank ahead of any other security interests. We also make equity and equity-linked investments with capital-appreciation potential (such as senior and secured convertible debt, preferred equity, common equity and warrants).

We also invest a lesser amount of our assets in senior and secured debt and controlling equity positions in real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties and other tenant-diversified properties; historically, NPRC made investments in structured credit (primarily debt tranches). We historically invested in structured credit (primarily equity tranches).

We may also invest in other strategies and opportunities from time to time that the Investment Adviser views as attractive. The Investment Adviser may continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy.

We directly originate the significant majority of our investments through our long-term relationships with private equity funded and independent sponsors, financial intermediaries, and management teams, as well as other sources. We seek to maximize returns, including both current yield and capital-appreciation potential, and minimize risk for our investors by applying rigorous credit and other analyses and cash-flow and asset-based lending techniques to originate, close, and monitor our investments.

We are consistently pursuing multiple investment opportunities. There can be no assurance that we will successfully consummate any investment opportunity we pursue. If any of these opportunities are consummated, there can be no assurance that investors will share our view of valuation or that any assets acquired will not be subject to future write downs, each of which could have an adverse effect on our stock price.

We hold many of our control investments in a two-tier structure consisting of a holding company and one or more related operating companies for tax purposes. These holding companies serve various business purposes including concentration of management teams, optimization of third-party borrowing costs, improvement of supplier, customer, and insurance terms, and enhancement of co-investments by the management teams. In these cases, our investment, which is generally equity in the holding company, the holding company’s equity investment in the operating company and any debt from us directly to the operating company structure represents our total exposure for the investment. As of September 30, 2026, as shown in our Consolidated Schedule of Investments, the cost basis and fair value of our investments in controlled companies was $3,323,679 and $3,360,718, respectively. This structure gives rise to several of the risks described in our public documents and highlighted elsewhere in this Quarterly Report. We consolidate all wholly owned and substantially wholly owned holding companies formed by us for the purpose of holding our controlled investments in operating companies. There is no significant effect of consolidating these holding companies as they hold minimal assets other than their investments in the controlled operating companies. Investment company accounting prohibits the consolidation of any operating companies.

Our previously outstanding 3.706% unsecured notes due 2026, which were redeemed during the fiscal year ended June 30, 2025, are referred to as the “2026 Notes”. Our $263,220 of 3.364% unsecured notes due November 15, 2026 are referred to as the “3.364% 2026 Notes”. Our $220,803 of 3.437% unsecured notes due October 15, 2028 are referred to as the “3.437% 2028 Notes”. Our $167,755 of 5.50% unsecured notes due December 31, 2030 are referred to as the “5.50% 2030 Notes”, and collectively with the 2026 Notes, the 3.364% 2026 Notes, and the 3.437% 2028 Notes, as the “Public Notes”. Any corporate notes issued pursuant to our medium term notes program with InspereX LLC are referred to as “Prospect Capital InterNotes®”. The Public Notes and Prospect Capital InterNotes® are collectively referred to as the “Unsecured Notes”.

First Quarter Highlights

Investment Transactions

We seek to be a long-term investor with our portfolio companies. During the three months ended September 30, 2026 we acquired $11,990 of new investments, completed follow-on investments in existing portfolio companies totaling approximately $39,033, funded $20,422 of revolver advances, and recorded PIK interest of $19,032, resulting in gross investment originations of $90,477. During the three months ended September 30, 2026 we received full repayments totaling $214,999, received $29 of

139

revolver paydowns, received $12,053 in sales, and received $30,291 in partial prepayments, scheduled principal amortization payments, and return of capital distributions, resulting in repayments of approximately $257,372.

Debt Issuances and Redemptions

During the three months ended September 30, 2026 we repaid $2,174 aggregate principal amount of Prospect Capital InterNotes® at par in accordance with the Survivor’s Option, as defined in the InterNotes® Offering prospectus. As a result of these transactions, we recorded a loss in the amount of the unamortized debt issuance costs. The net loss on the extinguishment of Prospect Capital InterNotes® in the three months ended September 30, 2026 was $50.

During the three months ended September 30, 2026 we issued $805 aggregate principal amount of Prospect Capital InterNotes® with a weighted average stated interest rate of 6.30%, to extend our borrowing base. The newly issued notes mature between July 15, 2029 and August 15, 2033 and generated net proceeds of $793.

During the three months ended September 30, 2026 we repurchased $1,266 aggregate principal amount of the 3.364% 2026 Notes at a weighted average price of 99.24%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized loss of $73 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.364% 2026 Notes

Equity Issuances and Redemptions

On July 22, 2026, August 20, 2026 and September 17, 2026 we issued 1,049,699, 1,005,099, and 1,028,431 shares of our common stock in connection with the dividend reinvestment plan, respectively.

During the three months ended September 30, 2026, 1,145,143 shares of our Series A1 Preferred Stock, 415,054 shares of our Series A3 Preferred Stock, 61,680 shares of our Series M1 Preferred Stock, and 42,207 shares of our Series M3 Preferred Stock were converted to 20,466,000 shares of our common stock, in connection with Holder Optional Conversions and Optional Redemptions Following Death of a Holder, resulting in a loss from redemption of preferred stock of $4,047.

During the three months ended September 30, 2026 we issued 644,465 shares of Series A5 Preferred Stock for net proceeds of $13,915, 172,786 shares of Series M5 Preferred Stock for net proceeds of $4,776, and 42,438 shares of Series A Preferred Stock for net proceeds of $700,992 each excluding offering costs and preferred stock dividend reinvestment.

In connection with our Preferred Stock Dividend Reinvestment Plan, we issued additional Series A1 Preferred Stock, Series A3 Preferred Stock, Series A4 Preferred Stock, Series A5 Preferred Stock, Series M1 Preferred Stock, Series M3 Preferred Stock, Series M4 Preferred Stock, and Series M5 Preferred Stock of 13,809, 13,774, and 14,073 throughout July, August, and September, respectively.

On July 7, 2026, at a special meeting of our stockholders, our stockholders authorized us sell shares of our common stock (during the next 12 months) at a price or prices below our then current net asset value per share in one or more offerings subject to certain conditions as set forth in the proxy statement relating to the special meeting (including that the number of shares sold on any given date does not exceed 25% of our outstanding common stock immediately prior to such sale).

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Investment Holdings

As of September 30, 2026, we have $5,944,478, or 206.8%, of our net assets applicable to common shares, invested in 85 portfolio companies and other portfolio investments.

Our annualized current yield was 11.3% and 11.8% as of September 30, 2026 and June 30, 2026, respectively, across all performing interest bearing investments, excluding equity investments and non-accrual loans. Our annualized current yield was 8.8% and 9.0% as of September 30, 2026 and June 30, 2026, respectively, across all investments. In many of our portfolio companies we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns. Some of these equity positions include features such as contractual minimum internal rates of returns, preferred distributions, flip structures and other features expected to generate additional investment returns, as well as contractual protections and preferences over junior equity, in addition to the yield and security offered by our cash flow and collateral debt protections.

As of September 30, 2026, we own controlling interests in the following portfolio companies: Belnick, LLC (“Belnick”); CP Energy Services Inc. (“CP Energy”); Credit Central Loan Company, LLC (“Credit Central”); Echelon Transportation, LLC (“Echelon”); First Tower Finance Company LLC (“First Tower Finance”); Freedom Marine Solutions, LLC (“Freedom Marine”); InterDent, Inc. (“InterDent”); Kickapoo Ranch Pet Resort (“Kickapoo”); MITY, Inc. (“MITY”); NPRC; Nationwide Loan Company LLC (“Nationwide”); NMMB, Inc. (“NMMB”); Pacific World Corporation (“Pacific World”); QC Holdings TopCo, LLC (“QC Holdings”); R-V Industries, Inc. (“R-V”); Universal Turbine Parts, LLC (“UTP”); Strategic Chemical Solutions Corp. (f/k/a USES Corp.); and Victor Technology, LLC (“Victor”). In June 2019, CP Energy purchased a controlling interest of the common equity of Spartan Energy Holdings, Inc. (“Spartan Holdings”), which owns 100% of Spartan Energy Services, LLC (“Spartan”), a portfolio company of Prospect with $61,912 and $61,429 in first lien term loans (the “Spartan Term Loan A”) due to us as of September 30, 2026 and June 30, 2026, respectively. As a result of CP Energy’s purchase, and given Prospect’s controlling interest in CP Energy, we report our investments in Spartan as a control investment. Spartan remains the direct borrower and guarantor to Prospect for the Spartan Term Loan A.

As of September 30, 2026, we also own affiliated interests in Nixon, Inc. (“Nixon”) and RGIS Services, LLC, (“RGIS”).

The following shows the composition of our investment portfolio by level of control as of September 30, 2026 and June 30, 2026:


	September 30, 2026								June 30, 2026
Level of Control	Cost		% of Portfolio		Fair Value		% of Portfolio		Cost		% of Portfolio		Fair Value		% of Portfolio
Control Investments	$	3,323,679	55.9	%	$	3,360,718	56.5	%	$	3,367,618	53.3	%	$	3,644,274	57.5	%
Affiliate Investments	12,835		0.2	%	22,028		0.4	%	12,835		0.2	%	30,447		0.5	%
Non-Control/Non-Affiliate Investments	2,607,805		43.9	%	2,561,732		43.1	%	2,934,916		46.5	%	2,667,837		42.1	%
Total Investments	$	5,944,319	100.0	%	$	5,944,478	100.0	%	$	6,315,369	100.0	%	$	6,342,558	100.0	%	(1)

(1) Does not foot due to rounding

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The following shows the composition of our investment portfolio by type of investment as of September 30, 2026 and June 30, 2026:


	September 30, 2026								June 30, 2026
Type of Investment	Cost		% of Portfolio		Fair Value		% of Portfolio		Cost		% of Portfolio		Fair Value		% of Portfolio
First Lien Revolving Line of Credit	$	92,288	1.6	%	$	82,317	1.4	%	$	78,795	1.2	%	$	72,378	1.1	%
First Lien Debt	4,154,259		69.9	%	3,952,018		66.5	%	4,494,789		71.3	%	4,216,556		66.5	%
Second Lien Revolving Line of Credit	5,284		0.1	%	5,284		0.1	%	1,854		—	%	1,854		—	%
Second Lien Debt	651,305		11.0	%	568,779		9.5	%	752,658		11.9	%	577,354		9.1	%
Unsecured Debt	7,200		0.1	%	5,213		0.1	%	7,200		0.1	%	5,195		0.1	%
Subordinated Structured Notes	—		—	%	—		—	%	2,108		—	%	2,794		—	%
Preferred Stock	434,777		7.3	%	171,838		2.9	%	430,251		6.8	%	175,984		2.8	%
Common Stock	364,933		6.1	%	405,515		6.8	%	313,509		5.0	%	583,188		9.2	%
Membership Interest	227,327		3.8	%	689,083		11.6	%	227,259		3.6	%	683,341		10.8	%
Participating Interest (1)	—		—	%	52,455		0.9	%	—		—	%	16,968		0.3	%
Warrants	6,946		0.1	%	11,976		0.2	%	6,946		0.1	%	6,946		0.1	%
Total Investments	$	5,944,319	100.0	%	$	5,944,478	100.0	%	$	6,315,369	100.0	%	$	6,342,558	100.0	%

(1)Participating Interest includes our participating equity investments, such as net profits interests, net operating income interests, net revenue interests, revenue interests, liquidating trusts and overriding royalty interests.

The following shows our investments in interest bearing securities, including non-accrual investments, by type of investment as of September 30, 2026 and June 30, 2026:


	September 30, 2026								June 30, 2026
Type of Investment	Cost		% of Portfolio		Fair Value		% of Portfolio		Cost		% of Portfolio		Fair Value		% of Portfolio
First Lien Debt and First Lien Revolving Line of Credit	$	4,246,547	86.5	%	$	4,034,335	87.5	%	$	4,573,584	85.8	%	$	4,288,934	88.0	%
Second Lien Debt and Second Lien Revolving Line of Credit	656,589		13.4	%	574,063		12.4	%	754,512		14.1	%	579,208		11.8	%
Unsecured	7,200		0.1	%	5,213		0.1	%	7,200		0.1	%	5,195		0.1	%
Subordinated Structured Notes	—		—	%	—		—	%	2,108		—	%	2,794		0.1	%
Total Interest Bearing Investments	$	4,910,336	100.0	%	$	4,613,611	100.0	%	$	5,337,404	100.0	%	$	4,876,131	100.0	%

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The following shows the composition of our investment portfolio by industry as of September 30, 2026 and June 30, 2026:


	September 30, 2026								June 30, 2026
Industry	Cost		% of Portfolio		Fair Value		% of Portfolio		Cost		% of Portfolio		Fair Value		% of Portfolio
Aerospace & Defense	$	95,544	1.6	%	$	127,704	2.1	%	$	93,459	1.5	%	$	124,259	2.0	%
Air Freight & Logistics	169,518		2.9	%	168,211		2.8	%	216,447		3.4	%	167,633		2.6	%
Automobile Components	59,850		1.0	%	29,379		0.5	%	126,314		2.0	%	30,209		0.5	%



Commercial Services & Supplies	441,358		7.4	%	427,362		7.2	%	441,997		7.0	%	445,892		7.0	%

Construction & Engineering	22,614		0.4	%	76,482		1.3	%	118,507		2.0	%	316,449		5.0	%
Consumer Finance	775,068		13.0	%	1,164,510		19.6	%	760,592		12.0	%	1,149,153		18.1	%
Distributors	375,203		6.3	%	306,333		5.2	%	390,830		6.2	%	354,629		5.6	%
Diversified Consumer Services	106,316		1.8	%	13,182		0.2	%	106,292		1.7	%	13,439		0.2	%

Diversified Telecommunication Services	197,020		3.3	%	201,086		3.4	%	245,758		3.9	%	190,435		3.0	%
Electrical Equipment	—		—	%	—		—	%	—		—	%	—		—	%
Energy Equipment & Services	350,302		5.9	%	148,105		2.5	%	345,126		5.5	%	141,279		2.2	%

Residential Real Estate Investment Trusts (REITs)	911,906		15.3	%	1,071,107		18.0	%	896,889		14.2	%	1,081,596		17.1	%
Financial Services	77,781		1.3	%	77,781		1.3	%	77,832		1.2	%	77,832		1.2	%

Food Products	87,429		1.5	%	84,520		1.4	%	87,520		1.4	%	84,257		1.3	%

Health Care Providers & Services	731,184		12.3	%	691,226		11.6	%	776,917		12.3	%	758,688		12.0	%
Health Care Technology	125,945		2.1	%	123,745		2.1	%	126,176		2.0	%	123,898		2.0	%
Hotels, Restaurants & Leisure	30,681		0.5	%	28,742		0.5	%	30,681		0.5	%	28,097		0.4	%
Household Durables	101,964		1.7	%	104,231		1.8	%	99,757		1.6	%	108,565		1.7	%


Interactive Media & Services	80,700		1.4	%	80,700		1.4	%	87,850		1.4	%	87,850		1.4	%

IT Services	74,057		1.2	%	58,737		1.0	%	74,008		1.2	%	57,573		0.9	%
Leisure Products	69,939		1.2	%	69,938		1.2	%	70,189		1.1	%	70,188		1.1	%
Machinery	81,651		1.5	%	113,540		1.9	%	81,796		1.3	%	112,083		1.8	%
Marine Transport	47,967		0.8	%	12,008		0.2	%	47,967		0.8	%	12,077		0.2	%
Media	115,541		1.9	%	169,027		2.8	%	115,928		1.8	%	164,712		2.6	%


Personal Care Products	375,693		6.3	%	124,031		2.1	%	373,627		5.9	%	124,017		2.0	%

Pharmaceuticals	116,260		2.1	%	141,766		2.4	%	122,789		1.9	%	141,316		2.2	%
Professional Services	91,854		1.5	%	91,631		1.5	%	94,156		1.5	%	92,172		1.5	%

Software	137,328		2.3	%	105,806		1.8	%	183,988		2.9	%	148,472		2.3	%
Specialty Retail	8,249		0.1	%	8,421		0.1	%	34,689		0.5	%	7,829		0.1	%

Textiles, Apparel & Luxury Goods	85,397		1.4	%	125,167		2.1	%	85,180		1.3	%	125,165		2.0	%
Trading Companies & Distributors	—		—	%	—		—	%	—		—	%	—		—	%

Subtotal	5,944,319		100.0	%	5,944,478		100.0	%	6,313,261		100.0	%	6,339,764		100.0	%
Structured Finance(1)			—	%			—	%	2,108		—	%	2,794		—	%
Total Investments	$	5,944,319	100.0	%	$	5,944,478	100.0	%	$	6,315,369	100.0	%	$	6,342,558	100.0	%

(1) Our SSN investments do not have industry concentrations and as such have been separated in the tables above.

Portfolio Investment Activity

Our current origination efforts are focused primarily on secured lending to middle market investments to mitigate downside risk in the portfolio by investing primarily in first lien loans and second lien loans, though we also continue to invest in select equity investments.

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Our gross investment activity for the three months ended September 30, 2026 and September 30, 2025 are presented below:


	Three Months Ended September 30,
	2026			2025
Investments in portfolio companies
Investments in new portfolio companies	$	11,990		$	20,048
Follow-on investments in existing portfolio companies (1)	39,033			50,170
Revolver advances	20,422			5,658
PIK interest and dividends	19,032			15,691
Total investments in portfolio companies	$	90,477		$	91,567

Investments by portfolio composition
First Lien Debt	$	58,126		$	74,237
Second Lien Debt	5,757			1,706


Equity	26,594			15,624
Total investments by portfolio composition	$	90,477		$	91,567

Investments repaid or sold
Partial repayments (2)	$	30,291		$	111,133
Full repayments	214,998			82,219
Investments sold	12,054			41,285
Revolver paydowns	29			23
Total investments repaid or sold	$	257,372		$	234,660

Investments repaid or sold by portfolio composition
First Lien Debt	$	238,819		$	149,776
Second Lien Debt	6,500			84,245

Subordinated Structured Notes	—			639
Equity	12,053			—			(4)
Total investments repaid or sold by portfolio composition	$	257,372		$	234,660

Weighted average interest rates for new investments by portfolio composition (3)
First Lien Debt	11.41		%	11.89		%
Second Lien Debt	—		%	N/A

(1) Includes follow-on investments in existing portfolio companies and refinancings, if any.

(2) Includes partial prepayments of principal, scheduled amortization payments, and refinancings, if any.

(3) The annual weighted average interest rates for new investments by portfolio composition is calculated with the interest rate as of the respective quarter end date when the investment activity occurred. In addition, Revolving Line of Credit and Delayed Draw Term Loans are excluded from the calculation.

(4) Negative denotes reversal of receipts previously recorded as return of capital.

Key developments in the Company’s portfolio during the three months ended September 30, 2026 are as follows:

On June 29, 2026, the National Property REIT Corp. loan agreement was amended, extending the maturity date of the First Lien Term Loan facility to March 31, 2030. The amendment was made effective as of July 1, 2026.

Investment Valuation

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In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date (i.e., expected maturity). These risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations, which are simulations used to model the probability of different outcomes, to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment. In addition, we generate a single-path cash flow utilizing our best estimate of expected cash receipts, and assess the reasonableness of the implied discount rate that would be effective for the value derived from the corresponding multi-path cash flow model. These investments are classified as Level 3 in the fair value hierarchy.

The Board of Directors looked at several factors in determining where within the range to value the asset including: recent operating and financial trends for the asset, independent ratings obtained from third parties, comparable multiples for recent sales of companies within the industry and discounted cash flow models for our investments in CLOs. The composite of all these various valuation techniques, applied to each investment, was a total valuation of $5,944,478.

Our portfolio companies are generally lower middle-market companies, outside of the financial sector, with less than $100,000 of annual EBITDA. We believe our investment portfolio has experienced less volatility than others because we believe there are more buy and hold investors who own these less liquid investments.

Control Company Investments

Control investments offer increased risk and reward over straight debt investments. Operating results and changes in market multiples can result in dramatic changes in values from quarter to quarter. Significant downturns in operations can further result in our looking to recoveries on sales of assets rather than the enterprise value of the investment. Equity positions in our portfolio are susceptible to potentially significant changes in value, both increases as well as decreases, due to changes in operating results and market multiples. Our controlled companies discussed below experienced such changes and we recorded corresponding fluctuations in valuations during the three months ended September 30, 2026.

First Tower Finance Company LLC

Prospect owns 100% of the equity of First Tower Delaware, a Consolidated Holding Company. First Tower Delaware owns 80.10% of the voting interest of First Tower Finance, resulting in 78.06% ownership. First Tower Finance owns 100% of First Tower, LLC, a multiline specialty finance company.

The fair value of our investment in First Tower was $983,900 as of September 30, 2026, a premium of $483,124 to its amortized cost basis, compared to a fair value of $960,778 as of June 30, 2026, a premium of $469,368 to its amortized cost basis. The increase in premium to amortized cost resulted from an improvement in financial performance.

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InterDent, Inc.

Prospect owns 100% of the equity of InterDent. InterDent is a dental support organization (“DSO”). InterDent provides business and administrative support services to a regionally-diversified set of dental practices so that dentists can focus on delivering high-quality clinical care and patient satisfaction.

The fair value of our investment in InterDent was $331,762 as of September 30, 2026, a discount of $106,593 to its amortized cost basis, compared to a fair value of $340,451 as of June 30, 2026, a discount of $89,490 to its amortized cost basis. The increase in discount to amortized cost resulted from increased debt in the capital structure and a decline in financial performance.

National Property REIT Corp.

NPRC is a Maryland corporation and a qualified REIT for federal income tax purposes. NPRC was formed to hold for investment, operate, finance, lease, manage, and sell a portfolio of real estate assets and engage in any and all other activities as may be necessary, incidental or convenient to carry out the foregoing. NPRC acquires real estate assets, including, but not limited to, industrial, commercial, multi-family, self-storage, and student housing properties. NPRC may acquire real estate assets directly or through joint ventures by making a majority equity investment in a property-owning entity. Additionally, through its wholly owned subsidiaries, NPRC invests in online consumer loans and RSSNs. As of September 30, 2026 and June 30, 2026, we own 100% of the fully-diluted common equity of NPRC.

During the three months ended September 30, 2026, we provided $15,017 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.

During the three months ended September 30, 2026, we received partial repayments of $0 of our loans previously outstanding with NPRC and its wholly owned subsidiary.

During the three months ended September 30, 2025, we provided $25,568 of debt financing to NPRC to fund real estate capital expenditures and provide working capital.

During the three months ended September 30, 2025, we received partial repayments of $22,604 of our loans previously outstanding with NPRC and its wholly owned subsidiary.


No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
1	Taco Bell, OK	Yukon, OK	6/4/2014	$	1,719	$	—
2	Taco Bell, MO	Marshall, MO	6/4/2014	1,405		—
3	Abbie Lakes OH Partners, LLC	Canal Winchester, OH	9/30/2014	12,600		21,569
4	Kengary Way OH Partners, LLC	Reynoldsburg, OH	9/30/2014	11,500		22,945
5	Lakeview Trail OH Partners, LLC	Canal Winchester, OH	9/30/2014	26,500		43,656
6	Lakepoint OH Partners, LLC	Pickerington, OH	9/30/2014	11,000		25,935
7	Sunbury OH Partners, LLC	Columbus, OH	9/30/2014	13,000		21,372
8	Heatherbridge OH Partners, LLC	Blacklick, OH	9/30/2014	18,416		31,810
9	Jefferson Chase OH Partners, LLC	Blacklick, OH	9/30/2014	13,551		27,625
10	Goldenstrand OH Partners, LLC	Hilliard, OH	10/29/2014	7,810		17,195
11	9220 Old Lantern Way, LLC	Laurel, MD	1/30/2017	187,250		147,308
12	7915 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	95,700		85,070
13	8025 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	15,300		14,826
14	23275 Riverside Drive Owner, LLC	Southfield, MI	11/8/2017	52,000		51,997
15	23741 Pond Road Owner, LLC	Southfield, MI	11/8/2017	16,500		17,986
16	150 Steeplechase Way Owner, LLC	Largo, MD	1/10/2018	44,500		34,334
17	Olentangy Commons Owner LLC	Columbus, OH	6/1/2018	113,000		91,050
18	Villages of Wildwood Holdings LLC	Fairfield, OH	7/20/2018	46,500		57,531
19	Falling Creek Holdings LLC	Richmond, VA	8/8/2018	25,000		29,537

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No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
20	Lorring Owner LLC	Forestville, MD	10/30/2018	58,521		46,382
21	Hamptons Apartments Owner, LLC	Beachwood, OH	1/9/2019	96,500		78,813
22	5224 Long Road Holdings, LLC	Orlando, FL	6/28/2019	26,500		21,200
23	Druid Hills Holdings LLC	Atlanta, GA	7/30/2019	96,000		74,372
24	Sterling Place Holdings LLC	Columbus, OH	10/28/2019	41,500		34,196
25	SPCP Hampton LLC	Dallas, TX	11/2/2020	36,000		38,335
26	Palmetto Creek Holdings LLC	North Charleston, SC	11/10/2020	33,182		25,600
27	Valora at Homewood Holdings LLC	Homewood, AL	11/19/2020	81,250		62,379
28	NPRC Fairburn LLC	Fairburn, GA	12/14/2020	52,140		43,900
29	NPRC Taylors LLC	Taylors, SC	1/27/2021	18,762		13,910
30	Parkside at Laurel West Owner LLC	Spartanburg, SC	2/26/2021	57,005		41,608
31	Willows at North End Owner LLC	Spartanburg, SC	2/26/2021	23,255		18,421
32	SPCP Edge CL Owner LLC	Webster, TX	3/12/2021	34,000		25,496
33	Jackson Pear Orchard LLC	Ridgeland, MS	6/28/2021	50,900		42,836
34	Jackson Lakeshore Landing LLC	Ridgeland, MS	6/28/2021	22,600		17,896
35	Jackson Reflection Pointe LLC	Flowood, MS	6/28/2021	45,100		33,094
36	Jackson Crosswinds LLC	Pearl, MS	6/28/2021	41,400		38,476
37	Elliot Apartments Norcross, LLC	Norcross, GA	11/30/2021	128,000		106,850
38	Orlando 442 Owner, LLC (West Vue Apartments)	Orlando, FL	12/30/2021	97,500		62,223
39	NPRC Wolfchase LLC	Memphis, TN	3/18/2022	82,100		60,000
40	NPRC Twin Oaks LLC	Hattiesburg. MS	3/18/2022	44,850		37,145
41	NPRC Lancaster LLC	Birmingham, AL	3/18/2022	37,550		30,005
42	NPRC Rutland LLC	Macon, GA	3/18/2022	29,750		24,746
43	Southport Owner LLC (Southport Crossing)	Indianapolis, IN	3/29/2022	48,100		36,075
44	TP Cheyenne, LLC	Cheyenne, WY	5/26/2022	27,500		17,656
45	TP Pueblo, LLC	Pueblo, CO	5/26/2022	31,500		20,166
46	TP Stillwater, LLC	Stillwater, OK	5/26/2022	26,100		15,328
47	TP Kokomo, LLC	Kokomo, IN	5/26/2022	20,500		12,753
48	Terraces at Perkins Rowe JV LLC	Baton Rouge, LA	11/14/2022	41,400		29,322
49	NPRC Apex Holdings LLC	Cincinnati, OH	1/19/2024	34,225		27,712
50	NPRC Parkton Holdings LLC	Cincinnati, OH	1/19/2024	45,775		37,090
				$	2,222,716	$	1,915,734

As of June 30, 2026, our investment in NPRC and its wholly owned subsidiaries had an amortized cost of $896,889 and a fair value of $1,081,596, The real estate portfolio was comprised of forty-four multi-family properties, two student housing properties, four senior living properties, and two commercial properties. The following table shows the location, acquisition date, purchase price, and mortgage outstanding due to other parties for each of the properties held by NPRC as of June 30, 2026:

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No.	Property Name	City	Acquisition Date	Purchase Price		Mortgage Outstanding
1	Taco Bell, OK	Yukon, OK	6/4/2014	$	1,719	$	—
2	Taco Bell, MO	Marshall, MO	6/4/2014	1,405		—
3	Abbie Lakes OH Partners, LLC	Canal Winchester, OH	9/30/2014	12,600		21,569
4	Kengary Way OH Partners, LLC	Reynoldsburg, OH	9/30/2014	11,500		22,945
5	Lakeview Trail OH Partners, LLC	Canal Winchester, OH	9/30/2014	26,500		43,656
6	Lakepoint OH Partners, LLC	Pickerington, OH	9/30/2014	11,000		25,935
7	Sunbury OH Partners, LLC	Columbus, OH	9/30/2014	13,000		21,372
8	Heatherbridge OH Partners, LLC	Blacklick, OH	9/30/2014	18,416		31,810
9	Jefferson Chase OH Partners, LLC	Blacklick, OH	9/30/2014	13,551		27,625
10	Goldenstrand OH Partners, LLC	Hilliard, OH	10/29/2014	7,810		17,195
11	Vesper Corpus Christi, LLC	Corpus Christi, TX	9/28/2016	14,250		9,905
12	Vesper Campus Quarters, LLC	Corpus Christi, TX	9/28/2016	18,350		13,000
13	9220 Old Lantern Way, LLC	Laurel, MD	1/30/2017	187,250		147,934
14	7915 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	95,700		85,465
15	8025 Baymeadows Circle Owner, LLC	Jacksonville, FL	10/31/2017	15,300		14,892
16	23275 Riverside Drive Owner, LLC	Southfield, MI	11/8/2017	52,000		52,245
17	23741 Pond Road Owner, LLC	Southfield, MI	11/8/2017	16,500		18,073
18	150 Steeplechase Way Owner, LLC	Largo, MD	1/10/2018	44,500		34,505
19	Olentangy Commons Owner LLC	Columbus, OH	6/1/2018	113,000		91,417
20	Villages of Wildwood Holdings LLC	Fairfield, OH	7/20/2018	46,500		57,729
21	Falling Creek Holdings LLC	Richmond, VA	8/8/2018	25,000		29,652
22	Lorring Owner LLC	Forestville, MD	10/30/2018	58,521		46,561
23	Hamptons Apartments Owner, LLC	Beachwood, OH	1/9/2019	96,500		79,107
24	5224 Long Road Holdings, LLC	Orlando, FL	6/28/2019	26,500		21,200
25	Druid Hills Holdings LLC	Atlanta, GA	7/30/2019	96,000		74,962
26	Sterling Place Holdings LLC	Columbus, OH	10/28/2019	41,500		34,196
27	SPCP Hampton LLC	Dallas, TX	11/2/2020	36,000		38,503
28	Palmetto Creek Holdings LLC	North Charleston, SC	11/10/2020	33,182		25,668
29	Valora at Homewood Holdings LLC	Homewood, AL	11/19/2020	81,250		62,718
30	NPRC Fairburn LLC	Fairburn, GA	12/14/2020	52,140		43,900
31	NPRC Taylors LLC	Taylors, SC	1/27/2021	18,762		13,980
32	Parkside at Laurel West Owner LLC	Spartanburg, SC	2/26/2021	57,005		41,817
33	Willows at North End Owner LLC	Spartanburg, SC	2/26/2021	23,255		18,519
34	SPCP Edge CL Owner LLC	Webster, TX	3/12/2021	34,000		25,496
35	Jackson Pear Orchard LLC	Ridgeland, MS	6/28/2021	50,900		42,975
36	Jackson Lakeshore Landing LLC	Ridgeland, MS	6/28/2021	22,600		17,955
37	Jackson Reflection Pointe LLC	Flowood, MS	6/28/2021	45,100		33,203
38	Jackson Crosswinds LLC	Pearl, MS	6/28/2021	41,400		38,601
39	Elliot Apartments Norcross, LLC	Norcross, GA	11/30/2021	128,000		106,850
40	Orlando 442 Owner, LLC (West Vue Apartments)	Orlando, FL	12/30/2021	97,500		62,223
41	NPRC Wolfchase LLC	Memphis, TN	3/18/2022	82,100		60,000
42	NPRC Twin Oaks LLC	Hattiesburg, MS	3/18/2022	44,850		37,105
43	NPRC Lancaster LLC	Birmingham, AL	3/18/2022	37,550		29,961
44	NPRC Rutland LLC	Macon, GA	3/18/2022	29,750		24,700
45	Southport Owner LLC (Southport Crossing)	Indianapolis, IN	3/29/2022	48,100		36,075
46	TP Cheyenne, LLC	Cheyenne, WY	5/26/2022	27,500		17,656
47	TP Pueblo, LLC	Pueblo, CO	5/26/2022	31,500		20,166
48	TP Stillwater, LLC	Stillwater, OK	5/26/2022	26,100		15,328
49	TP Kokomo, LLC	Kokomo, IN	5/26/2022	20,500		12,753
50	Terraces at Perkins Rowe JV LLC	Baton Rouge, LA	11/14/2022	41,400		29,403
51	NPRC Apex Holdings LLC	Cincinnati, OH	1/19/2024	34,225		27,712
52	NPRC Parkton Holdings LLC	Cincinnati, OH	1/19/2024	45,775		37,090
				$	2,255,316	$	1,943,307

The fair value of our investment in NPRC was $1,071,107 as of September 30, 2026, a premium of $159,201 from its amortized cost basis, compared to a fair value of $1,081,596 as of June 30, 2026, a premium of $184,707 to its amortized cost basis. The

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decrease in premium to amortized cost was primarily driven by a softening in cash flow projections across NPRC’s real estate portfolio, an increase in discount and terminal capitalization rates, and higher leverage within the capital structure.

Our controlled investments, including those discussed above, are valued at $37,039 above their amortized cost as of September 30, 2026.

Affiliate and Non-Control Company Investments

We hold two affiliate investments as of September 30, 2026 (Nixon, Inc. and RGIS Services, LLC, (“RGIS”)) with a total fair value of $22,028, a premium of $9,193 from their combined amortized cost, compared to a fair value of $30,447 as of June 30, 2026, representing a $17,612 premium to its amortized cost. The decrease in premium to amortized cost was driven by a decline in RGIS’ financial performance.

With the non-control/non-affiliate investments, generally, there is less volatility related to our total investments because our equity positions tend to be smaller than with our control/affiliate investments, and debt investments are generally not as susceptible to large swings in value as equity investments. For debt investments, the fair value is generally limited on the high side to each loan’s par value, plus any prepayment premium that could be imposed. Note that six of our non-control/non-affiliate investments, Credit.com Holdings, LLC, Discovery Point Retreat, LLC, Druid City Infusion, LLC, Shoes West, LLC (d/b/a Taos Footwear), Town & Country Holdings, Inc., and Verify Diagnostics LLC, have larger equity or convertible debt option positions and are therefore more susceptible to changes in value than the rest of our non-control/non-affiliate investments. As of September 30, 2026, our non-control/non-affiliate portfolio is valued at a discount to amortized cost primarily due to two of our non-control/non-affiliate investments, Credit.com Holdings, LLC (“Credit.com”) and Town & Country Holdings, Inc., which are valued at discounts to amortized cost of $94,456 and $69,745, respectively.

Excluding those non-control/non-affiliate investments discussed above, our remaining non-control/non-affiliate portfolio is valued at a premium of $118,128 to amortized cost as of September 30, 2026.

Capitalization

Our investment activities are capital intensive and the availability and cost of capital is a critical component of our business. We capitalize our business with a combination of debt and equity. Our debt as of September 30, 2026 consists of: a Revolving Credit Facility availing us of the ability to borrow debt subject to borrowing base determinations; Public Notes which we issued in May 2021, September 2021, and October 2025; and Prospect Capital InterNotes® which we issue from time to time. As of September 30, 2026, our equity capital is comprised of common and preferred equity.

The following table shows our outstanding debt as of September 30, 2026:


		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value		Fair Value		Effective Interest Rate
Revolving Credit Facility		$	287,152	$	12,940	$	287,152	$	287,152	1M SOFR +	2.05	%





3.364%	2026 Notes	263,220		164		263,056		261,704		3.86		%
3.437%	2028 Notes	220,803		2,103		218,700		205,367		3.92		%
5.50%	2030 Notes	167,755		6,401		161,354		157,019		6.76		%
Public Notes		651,778				643,110		624,090

Prospect Capital InterNotes®		598,228		6,965		591,263		552,434		6.14		%
Total		$	1,537,158			$	1,521,525	$	1,463,676

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The following table shows our outstanding debt as of June 30, 2026:


		Principal Outstanding		Unamortized Discount & Debt Issuance Costs		Net Carrying Value		Fair Value		Effective Interest Rate
Revolving Credit Facility		$	562,328	$	14,128	$	562,328	$	562,328	1M SOFR +	2.05	%

3.364%	2026 Notes	264,486		435		264,051		261,169		3.89		%
3.437%	2028 Notes	254,749		2,743		252,006		239,729		3.97		%
5.50%	2030 Notes	182,153		7,369		174,784		165,650		6.76%
Public Notes		701,388				690,841		666,548

Prospect Capital InterNotes®		614,879		7,399		607,480		588,081		6.04		%
Total		$	1,878,595			$	1,860,649	$	1,816,957

The following table shows the contractual maturities by fiscal year of our Revolving Credit Facility, Public Notes and Prospect Capital InterNotes® as of September 30, 2026:


	Payments Due by Fiscal Year ending June 30,
	Total		2027		2028		2029		2030		2031		After 5 Years
Revolving Credit Facility	$	287,152	$	—	$	—	$	287,152	$	—	$	—	$	—

Public Notes	651,778		263,220		—		220,803		—		167,755		—
Prospect Capital InterNotes®	598,228		143,389		50,575		116,473		27,865		57,105		202,821
Total Contractual Obligations	$	1,537,158	$	406,609	$	50,575	$	624,428	$	27,865	$	224,860	$	202,821

Historically, we have funded a portion of our cash needs through borrowings from banks, issuances of senior securities, including secured, unsecured and convertible debt securities, or issuances of common equity. For flexibility, we maintain a universal shelf registration statement that allows for the public offering and sale of our debt securities, common stock, preferred stock, subscription rights, and warrants and units to purchase such securities up to an indeterminate amount. We may from time to time issue securities pursuant to the shelf registration statement or otherwise pursuant to private offerings. The issuance of debt or equity securities will depend on future market conditions, funding needs and other factors and there can be no assurance that any such issuance will occur or be successful.

Each of our Public Notes and Prospect Capital InterNotes® (collectively, our “Unsecured Notes”) are our general, unsecured obligations and rank equal in right of payment with all of our existing and future unsecured indebtedness and will be senior in right of payment to any of our subordinated indebtedness that may be issued in the future. The Unsecured Notes are effectively subordinated to our existing secured indebtedness, such as our credit facility, and future secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally subordinated to any existing and future liabilities and other indebtedness of any of our subsidiaries.

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Revolving Credit Facility

As of September 30, 2026 and June 30, 2026, we had $777,956 and $623,891, respectively, available to us for borrowing under the Revolving Credit Facility, net of $287,152 and $562,328 outstanding borrowings as of the respective balance sheet dates. See Note 4. Revolving Credit Facility within our consolidated financial statements for additional details.

Public Notes

On January 22, 2021, we issued $325,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Original 2026 Notes”). The Original 2026 Notes bore interest at a rate of 3.706% per year, payable semi-annually on July 22, and January 22 of each year, beginning on July 22, 2021. Total proceeds from the issuance of the 2026 Notes, net of underwriting discounts and offering costs, were $317,720. On February 19, 2021, we issued an additional $75,000 aggregate principal amount of unsecured notes that mature on January 22, 2026 (the “Additional 2026 Notes”, and together with the Original 2026 Notes, the “2026 Notes”). The Additional 2026 Notes were a further issuance of, and are fully fungible and rank equally in right of payment with, the Original 2026 Notes and bore interest at a rate of 3.706% per year, payable semi-annually on July 22 and January 22 of each year, beginning July 22, 2021. Total proceeds from the issuance of the Additional 2026 Notes, net of underwriting discounts and offering costs, were $74,061.

During the year ended June 30, 2025, we repurchased $57,053 aggregate principal amount of the 2026 Notes at a weighted average price of 97.44%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $1,264 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 2026 Notes.

During the year ended June 30, 2025, we commenced a tender offer to purchase for cash any and all of the aggregate principal amount of our outstanding 2026 Notes at a purchase price of 99.00%, plus accrued and unpaid interest. As a result, $135,731 aggregate principal amount of the 2026 Notes were validly tendered and accepted, and we recognized a net realized gain of $874 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the tendered 2026 Notes.

On June 18, 2025, we redeemed the remaining outstanding principal amount of $207,216 of the 2026 Notes, at a price of 100.00%, plus accrued and unpaid interest. The transaction resulted in our recognizing a loss of $998 during the year ended June 30, 2025. Following the redemption, none of the 2026 Notes remained outstanding.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 3.364% 2026 Notes were $263,220 and $264,486, respectively.

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During the year ended June 30, 2026, we repurchased $45,251 aggregate principal amount of the 3.437% 2028 Notes at a weighted average price of 91.66%, including commissions, plus accrued and unpaid interest. As a result, we recognized a net realized gain of $3,526 from the extinguishment of debt in the amount of the difference between the reacquisition price and the net carrying amount of the repurchased 3.437% 2028 Notes.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 3.437% 2028 Notes was $220,803 and $254,749, respectively.

On October 30, 2025, we issued approximately $167,637 in aggregate principal amount of 5.50% Series A Notes due 2030 (the “5.50% 2030 Notes”) that mature on December 31, 2030 and bear interest at a rate of 5.50% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, commencing on March 31, 2026. The 5.50% 2030 Notes are denominated in Israeli Shekels. After the deduction of offering discounts, fees and other offering expenses, we received net proceeds of approximately $159,531.

As of September 30, 2026 and June 30, 2026, the outstanding aggregate principal amount of the 5.50% 2030 Notes were $167,755 and $182,153, respectively.

The 2026 Notes, the 3.364% 2026 Notes, the 3.437% 2028 Notes, and the 5.50% 2030 Notes (collectively, the “Public Notes”) are direct unsecured obligations and rank equally with all of our unsecured indebtedness from time to time outstanding. See Note 5. Public Notes within our consolidated financial statements for additional details.

As of September 30, 2026 and June 30, 2026, the fair value of the derivative assets and derivative liabilities were $14,373 and 18,900, and $0 and $0, respectively.

Prospect Capital InterNotes®

On February 13, 2020, we entered into a new selling agent agreement with InspereX LLC (formerly known as “Incapital LLC”) (as amended, the “Selling Agent Agreement”), authorizing the issuance and sale from time to time of up to $1,000,000 of Prospect Capital InterNotes® (collectively with previously authorized selling agent agreements, the “InterNotes® Offerings”). Additional agents may be appointed by us from time to time in connection with the InterNotes® Offering and become parties to the Selling Agent Agreement.

Certain notes issued through the InterNotes® Offerings have been repaid and we have, from time to time, repurchased or redeemed such other notes and, therefore, as of September 30, 2026 and June 30, 2026, the aggregate principal amount of Prospect Capital InterNotes® outstanding were $598,228 and $614,879, respectively. See Note 7. Prospect Capital InterNotes® within our consolidated financial statements for additional details.

Net Asset Value Applicable to Common Stockholders

During the three months ended September 30, 2026, our net asset value applicable to common shares decreased by $53,757, or $0.35 per basic weighted average common share. The decrease was primarily driven by net realized and net change in unrealized losses of $103,687, or $0.20 per basic weighted average common share. While our net asset value applicable to common shareholders increased $6,441 and $47,427 due to shares issued at the then-current market prices through reinvestment of dividends and conversions of preferred stock to common stock, respectively, these combined increases in total net asset value resulted in dilution of $0.15 per basic weighted average common share. Additionally, distributions to common and preferred stockholders of $81,376, or $0.16 per basic weighted average common share, exceeded net investment income of $76,359, or $0.15 per basic weighted average common share, resulting in a net decrease of $0.01 per basic weighted average common share. The following table shows the calculation of net asset value per common share as of September 30, 2026 and June 30, 2026:

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	September 30, 2026		June 30, 2026
Net assets applicable to common stockholders	$	2,875,089	$	2,928,846
Shares of common stock issued and outstanding	536,295,785		512,746,556
Net asset value per common share	$	5.36	$	5.71

Results of Operations

Operating results for the three months ended September 30, 2026 and September 30, 2025 were as follows:


	Three Months Ended September 30,
		2026		2025
Investment income		$	151,741	$	157,624
Total operating expenses		78,632		78,274
Reimbursement of administration expenses		(3,250)		—
Total net operating expenses		75,382		78,274
Net investment income		76,359		79,350
Net realized gains (losses) from investments		(71,607)		(1,891)
Net change in unrealized gains (losses) from investments		(27,030)		599
Net realized gains (losses) on extinguishment of debt		1,483		(77)
Net realized gains (losses) from derivative instruments and foreign currency transactions		(572)		—
Net change in unrealized gains (losses) from derivative instruments and foreign currency transactions		(188)		—
Net increase (decrease) in net assets resulting from operations		(21,555)		77,981
Preferred stock dividend		(26,120)		(26,767)
Net gain (loss) on redemptions of preferred stock		(3,730)		(1,362)
Gain (loss) on Accretion to Redemption Value of Preferred Stock		(2,043)		(1,765)
Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders		$	(53,448)	$	48,087

While we seek to maximize gains and minimize losses, our investments in portfolio companies can expose our capital to risks greater than those we may anticipate. These companies typically do not issue securities rated investment grade, and have limited resources, limited operating history, and concentrated product lines or customers. These are generally private companies with limited operating information available and are likely to depend on a small core of management talents. Changes in any of these factors can have a significant impact on the value of the portfolio company. These changes, along with those discussed in Investment Valuation above, can cause significant fluctuations in our net change in unrealized gains (losses) from investments, and therefore our net increase (decrease) in net assets resulting from operations applicable to common stockholders, quarter over quarter.

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Investment Income

We generate revenue in the form of interest income on the debt securities that we own, dividend income on any common or preferred stock that we own, and fees generated from the structuring of new deals. Our investments, if in the form of debt securities, will typically have a term of one to ten years and bear interest at a fixed or floating rate. To the extent achievable, we will seek to collateralize our investments by obtaining security interests in our portfolio companies’ assets. We also may acquire minority or majority equity interests in our portfolio companies, which may pay cash or in-kind dividends on a recurring or otherwise negotiated basis. In addition, we may generate revenue in other forms including prepayment penalties and possibly consulting fees. Any such fees generated in connection with our investments are recognized as earned.

Investment income consists of interest income, including accretion of loan origination fees and prepayment penalty fees, dividend income and other income, including settlement of net profits interests, overriding royalty interests and structuring fees.

The following table describes the various components of investment income:


	Three Months Ended September 30,
	2026			2025
Interest income	$	132,608		$	152,394
Dividend income	5,475			3,573
Other income	13,658			1,657
Total investment income	$	151,741		$	157,624

Average debt principal of performing interest bearing investments(1)	$	4,437,133		$	5,266,662
Weighted average interest rate earned on performing interest bearing investments(1)	11.69		%	11.32		%
Average debt principal of all interest bearing investments(2)	$	5,085,241		$	5,993,933
Weighted average interest rate earned on all interest bearing investments(2)	10.20		%	9.95		%

(1) Excludes equity investments, Subordinated Structured Notes and non-accrual loans.

(2) Excludes equity investments and Subordinated Structured Notes.

The weighted average interest rate earned on performing interest bearing assets increased to 11.69% for the three months ended September 30, 2026 from 11.32% for the three months ended September 30, 2025. The weighted average interest rate earned on all interest bearing investments increased to 10.20% for the three months ended September 30, 2026 from 9.95% for the three months ended September 30, 2025. The increase is a combination of a decrease in income from repayments of lower yielding assets during the current period, in addition to an increase in SOFR rates.

Investment income is also generated from dividends and other income which is less predictable than interest income. The following table describes dividend income earned for the three months ended September 30, 2026 and September 30, 2025, respectively:


	Three Months Ended September 30,
		2026		2025
Dividend income
Universal Turbine Parts, LLC		$	2,148	$	—
NMMB, Inc.		1,351		—
Shoes West, LLC (d/b/a Taos Footwear)		363		—
Valley Electric Company, Inc.		(1,083)		—
The RK Logistics Group, Inc.		—		1,267
R-V Industries, Inc.		—		877
Other transactions		2,696		1,429
Total dividend income		$	5,475	$	3,573

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Other income is comprised of structuring fees, advisory fees, amendment fees, royalty interests, receipts for residual net profit and revenue interests, administrative agent fees and other miscellaneous and sundry cash receipts. The following table describes other income earned for the three months ended September 30, 2026 and September 30, 2025, respectively:


	For the Three Months Ended September 30,
	2026		2025
Structuring, amendment and advisory fees

Valley Electric Company, Inc.	$	9,840	$	—
First Tower Finance Company LLC	281		—
Japs-Olson Company, LLC	271		—
Other transactions	213		1,299
Total structuring, amendment and advisory fees	$	10,605	$	1,299
Royalty, net profit and revenue interests
First Tower Finance Company LLC	$	2,798	$	—
Other transactions	—		167
Total royalty and net revenue interests	$	2,798	$	167
Administrative agent fees
Other transactions	$	255	$	191
Total administrative agent fees	$	255	$	191
Total other income	$	13,658	$	1,657

Other income for the three months ended September 30, 2026 increased by $12,001 compared to the three months ended September 30, 2025 primarily due to a $9,306 increase in structuring, amendment and advisory fees mainly from the sale of our investment in Valley Electric Company, Inc. as well as an increase of $2,631 in royalty and net revenue interests mainly from our investment in First Tower Finance Company, LLC.

Income recognized from dividend income, prepayment premium from early repayments, structuring fees and amendment fees related to specific loan positions and royalty, net profit and revenue interests are considered to be non-recurring income. For the three months ended September 30, 2026 and September 30, 2025, we recognized $21,401 and $5,125 of non-recurring income, respectively. The $16,276 increase in nonrecurring income during the three months ended September 30, 2026 is primarily due to a $9,306 increase in structuring, amendment and advisory fee income, a $2,631 increase in royalty and net revenue interests, a $2,437 increase in prepayment premium and a $1,902 increase in dividend income.

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Operating Expenses

Our primary operating expenses consist of investment advisory fees (base management and income incentive fees), borrowing costs, legal and professional fees, overhead-related expenses and other operating expenses. These expenses include our allocable portion of overhead under the Administration Agreement with Prospect Administration under which Prospect Administration provides administrative services and facilities for us. Our investment advisory fees compensate the Investment Adviser for its work in identifying, evaluating, negotiating, closing and monitoring our investments. We bear all other costs and expenses of our operations and transactions.

The following table describes the various components of our operating expenses:


	Three Months Ended September 30,
	2026		2025
Base management fee	$	31,218	$	33,617
Income incentive fee	7,743		1,234
Interest and credit facility expenses	30,636		33,687
Allocation of overhead from Prospect Administration	5,524		5,524
Audit, compliance and tax related fees	656		899
Directors’ fees	150		150
Other general and administrative expenses	2,705		3,163
Total operating expenses	$	78,632	$	78,274
Reimbursement of administration expenses	$	(3,250)	$	—
Total net operating expenses	$	75,382	$	78,274

Total gross and net base management fee was $31,218 and $33,617 for the three months ended September 30, 2026 and 2025, respectively. The decrease in total gross base management fee is directly related to a decrease in average total assets.

For the three months ended September 30, 2026 and 2025, we incurred $7,743 and $1,234 of income incentive fees, respectively. This increase was driven by a corresponding increase in pre-incentive fee net investment income (net of preferred stock dividends) to $57,982 from $53,817 due to an increase in the pre-incentive fee NII that exceeds the quarterly hurdle rate for the three months ended September 30, 2026 and 2025, respectively. No capital gains incentive fee has yet been incurred pursuant to the Investment Advisory Agreement.

During the three months ended September 30, 2026 and 2025, we incurred $30,636 and $33,687, respectively, of interest and credit facility expenses related to our Revolving Credit Facility, Public Notes and Prospect Capital InterNotes® (collectively, our “Notes”). These expenses are related directly to the leveraging capacity put into place for each of those periods and the levels of indebtedness actually undertaken in those periods.

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The table below describes the various expenses of our Notes and the related indicators of leveraging capacity and indebtedness during these periods:


	Three Months Ended September 30,
		2026			2025
Interest on borrowings(1)		$	25,933		$	29,177
Amortization of deferred financing costs		1,828			1,977
Accretion of discount on unsecured debt		359			361
Facility commitment fees		2,516			2,172
Total interest and credit facility expenses		$	30,636		$	33,687

Average principal debt outstanding		$2,028,211			$2,174,118
Annualized weighted average stated interest rate on borrowings(2)		5.18		%	5.37		%
Annualized weighted average interest rate on borrowings(3)		6.11		%	6.20		%

(1)Net of $348 of net gains reclassified from accumulated other comprehensive income (loss) into earnings as a decrease to interest expense for the three months ended September 30, 2026. There was no such reclassification during the three months ended September 30, 2025.

(2)Includes only the stated interest expense.

(3)Includes the stated interest expense, amortization of deferred financing costs, accretion of discount on Public Notes and commitment fees on the undrawn portion of our Revolving Credit Facility.

Interest expense was $25,933 and $29,177 for the three months ended September 30, 2026 and 2025, respectively. The weighted average stated interest rate on borrowings (excluding amortization, accretion and undrawn facility fees) was 5.18% and 5.37% for the three months ended September 30, 2026 and 2025, respectively. The decrease was primarily due to a decrease in the weighted average stated interest rate on the Revolving Credit Facility, driven by lower SOFR rates, and a lower proportion of borrowings under the Revolving Credit Facility. These decreases were partially offset by an increase in the stated interest rate on the Prospect Capital InterNotes® and a lower proportion of borrowings under the 3.364% 2026 Notes and 3.437% 2028 Notes, which carry below average stated rates, as a result of repurchases.

The weighted average interest rate on borrowings was 6.11% and 6.20% for the three months ended September 30, 2026 and 2025, respectively. The decrease was primarily due to a lower proportion of borrowings under the Revolving Credit Facility and a decrease in the all-in rate on the 3.364% 2026 Notes and 3.437% 2028 Notes, which reflects a reversal of previously recognized accretion of discount and amortization of deferred financing costs in connection with prior-period repurchases. These decreases were partially offset by an increase in the all-in rate on the Prospect Capital InterNotes® and a lower proportion of borrowings under the 3.364% 2026 Notes and 3.437% 2028 Notes, which carry below average stated rates as a result of repurchases.

The gross allocation of overhead expense from Prospect Administration was $5,524 and $5,524 for the three months ended September 30, 2026 and September 30, 2025, respectively. The $3,250 in litigation settlement proceeds discussed above was recorded in the three months ended September 30, 2026 to offset this allocation of overhead expense and is presented as a reimbursement of administration expenses to arrive at the total net operating expenses reported in the Consolidated Statement of Operations for the three months ended September 30, 2026..

Prospect Administration received estimated payments of $252 and $645 directly from our portfolio companies for legal, tax, and other administrative services during the three months ended September 30, 2026 and 2025, respectively. We were given a credit for these payments as a reduction of the administrative services cost payable by us to Prospect Administration. Had Prospect Administration not received these payments during the three months ended September 30, 2026 and September 30, 2025, Prospect Administration’s charges for its administrative services during the respective periods would have increased by this amount.

Total operating expenses, excluding investment advisory fees, interest and credit facility expenses, and allocation of overhead from Prospect Administration, net of any expense reimbursements, were $3,511 and $4,212 for the three months ended

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September 30, 2026 and September 30, 2025, respectively. The decrease was primarily attributable to the decrease in legal, audit, compliance, tax, and other general and administrative expenses.

Net Realized Gains (Losses)

The following table details net realized gains (losses) from investments for the three months ended September 30, 2026 and September 30, 2025:


	Three Months Ended September 30,
Portfolio Company	2026		2025
Valley Electric Company, Inc.(1)	$	132,904	$	—
Other transactions, net	(3,947)		(1,891)
Rising Tide Holdings, Inc.(1)	(27,100)		—
STG Distribution, LLC (f/k/a Reception Purchaser, LLC)(1)	(48,893)		—
Aventiv Technologies, LLC(1)	(58,108)		—
First Brands Group(1)	(66,463)		—
Net realized gains (losses) from investments	$	(71,607)	$	(1,891)

(1)See endnotes of Change in Unrealized Gains (Losses) for the three months ended September 30, 2026 below for the respective investment.

Net Realized Gain/Loss from Extinguishment of Debt

During the three months ended September 30, 2026 and September 30, 2025, we recorded a net realized gain from extinguishment of debt of $1,483 and net realized loss from extinguishment of debt of $77, respectively. Refer to Capitalization for additional discussion.

Net Realized Gain/Loss from Redemptions of Preferred Stock

During the three months ended September 30, 2026, we recorded a net realized loss of $2,043 from the accretion to redemption value of redeemable securities. During the three months ended September 30, 2025, we recorded a net realized loss of $1,765 from the accretion to redemption value of redeemable securities.

During the three months ended September 30, 2026, we recorded a net realized loss of $4,047 from the conversions of preferred stock to common, and a gain of $318 from the redemptions of preferred stock to cash, resulting in a net realized loss of $3,730. During the three months ended September 30, 2025 we recorded a net realized loss of $1,410 from the conversions of preferred stock to common, and a gain of $48 from the redemptions of preferred stock to cash, resulting in a net realized loss of $1,362. Refer to Financial Condition, Liquidity, and Capital Resources for additional discussion.

Net Realized Gain/Loss from Derivative Instruments and Foreign Currency Transactions

During the three months ended September 30, 2026, we recorded a net realized loss of $572 from derivative instruments and foreign currency transactions. During the three months ended September 30, 2025, there were no realized gains or losses from derivative instruments and foreign currency transactions.

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Change in Unrealized Gains (Losses)

The following table details net change in unrealized gains (losses) for our portfolio for the three months ended September 30, 2026 and September 30, 2025, respectively:


	Three Months Ended September 30,
		2026		2025
Control investments		$	(239,617)	$	14,181
Affiliate investments		(8,419)		3,764
Non-control/non-affiliate investments		221,006		(17,346)
Net change in unrealized gains (losses)		$	(27,030)	$	599

The following table reflects net change in unrealized gains (losses) on investments for the three months ended September 30, 2026:


	Net Change in Unrealized Gains (Losses)
First Brands Group(1)	$	66,355
Aventiv Technologies, LLC(2)	59,568
STG Distribution, LLC(2)	48,895
Rising Tide Holdings, Inc.(2)	27,032
First Tower Finance Company LLC	13,756
Druid City Infusion, LLC	6,992
Other investments, net	132
Belnick, LLC (d/b/a The Ubique Group)	(6,541)
QC Holdings TopCo, LLC	(7,057)
RGIS Services, LLC	(8,419)
InterDent, Inc.	(17,103)
National Property REIT Corp.	(25,506)
Town & Country Holdings, Inc.	(39,647)
Valley Electric Company, Inc.(3)	(145,487)
Net change in unrealized gains (losses)	$	(27,030)

(1) Due to the expected recoveries under First Brands Groups’ Chapter 7 plan, we wrote down the cost basis of our First Lien Term Loans, First Lien DIP Term Loan A, First Lien DIP Term Loan B and Second Lien Term Loan and recorded a realized loss of $66,463 while reversing previously recorded unrealized losses in a similar amount.

(2) Upon restructuring, our prior investments were exchanged for new debt and equity investments, and a portion of our cost basis was written-off for tax purposes. We recorded a realized loss while reversing our previously recorded unrealized losses related to our investment in the same amount.

(3) Represents the reversal of previously recorded unrealized appreciation for our investment in Valley Electric Company, Inc. following the sale.

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The following table reflects net change in unrealized gains (losses) on investments for the three months ended September 30, 2025:


	Net Change in Unrealized Gains (Losses)
First Tower Finance Company LLC	$	75,383
QC Holdings TopCo, LLC	20,239
Belnick, LLC (d/b/a The Ubique Group)	20,178
Shoes West, LLC (d/b/a Taos Footwear)	16,498
Town & Country Holdings, Inc.	15,511
NMMB, Inc.	7,269
Verify Diagnostics LLC	6,689
Druid City Infusion, LLC	6,195
Other investments, net	2,713
R-V Industries, Inc.	(11,514)
STG Distribution, LLC	(24,184)
Valley Electric Company, Inc.	(29,221)
First Brands Group(1)	(46,484)
National Property REIT Corp.	(58,673)
Net change in unrealized gains (losses)	$	599

(1)On September 29, 2025, First Brands Group, LLC and certain of its affiliates (“First Brands”) filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.

Net Change in Unrealized Gain/Loss from Derivative Instruments and Foreign Currency Transactions

During the three months ended September 30, 2026, we recorded a net change in unrealized loss of $188 from derivative instruments and foreign currency transactions. During the three months ended September 30, 2025, there were no net changes in unrealized gains or losses from derivative instruments and foreign currency transactions.

Financial Condition, Liquidity and Capital Resources

For the three months ended September 30, 2026 and September 30, 2025, our operating activities provided $381,677 and provided $278,992 of cash, respectively. The $102,685 increase is primarily driven by a $152,403 increase in repayments and sales of investments, offset partially by a $12,082 decrease in net reductions to Subordinated Structured Notes and related investment costs and a $32,741 decrease in due from broker for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. There were no investing activities for the three months ended September 30, 2026 and September 30, 2025. Financing activities used $387,189 and used $243,239 of cash during the three months ended September 30, 2026 and September 30, 2025, respectively, which included dividend payments and distributions to common and preferred stockholders of $65,496 and $88,988, respectively. The $143,950 increase in cash used by financing activities is primarily driven by a $102,443 decrease in net borrowings under the Revolving Credit Facility, $56,699 increase in redemptions and repurchases of Unsecured Notes, and a $7,063 decrease in issuances of Unsecured Notes. These increases were partially offset by a $23,492 decrease in dividend payments and distributions to common and preferred shareholders, for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.

Our primary uses of funds have been to continue to invest in portfolio companies, through both debt and equity investments, to repay outstanding borrowings and to make cash distributions to our stockholders.

Our primary sources of funds have historically been issuances of debt and common equity, and beginning with our year ended June 30, 2021, issuances of preferred equity. We have and may continue to fund a portion of our cash needs through repayments and opportunistic sales of our existing investment portfolio. We may also securitize a portion of our investments in unsecured or senior secured loans or other assets. Our objective is to put in place such borrowings in order to enable us to expand our portfolio. During the three months ended September 30, 2026, we borrowed $412,951 and we made repayments totaling $688,127 under the Revolving Credit Facility. As of September 30, 2026, our outstanding balance on the Revolving Credit Facility was $287,152. As of September 30, 2026, we had, net of unamortized discount and debt issuance costs,

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$643,110 outstanding on the Public Notes and $591,263 outstanding on the Prospect Capital InterNotes® (See “Capitalization” above).

Undrawn committed revolvers and delayed draw term loans to our portfolio companies incur commitment and unused fees ranging from 0.00% to 3.00%. As of September 30, 2026 and June 30, 2026, we had $57,612 and $64,611, respectively, of undrawn revolver and delayed draw term loan commitments to our portfolio companies, of which $51,717 and $15,900 are considered at the Company’s sole discretion. The fair value of our undrawn committed revolvers and delayed draw term loans was zero as of September 30, 2026 and June 30, 2026, as they were all floating rate instruments that repriced frequently. In addition, the Company or certain of its Consolidated Holding Companies guarantee certain obligations in connection with portfolio companies where payments may be required to be made to third parties if such guarantees are called upon or if the portfolio companies were to default on their related obligations, as applicable. The fair value of these guarantees was $60,421 and $62,567 as of September 30, 2026 and June 30, 2026, respectively.

On February 10, 2026, we filed a registration statement on Form N-2 (File No. 333-293349) that was effective upon filing pursuant to Rule 462(e) under the Securities Act of 1933, as amended (the “Securities Act”), and which replaced our previously effective registration statement on Form N-2 that had been filed on February 10, 2023 and which was also effective upon filing pursuant to Rule 462(e) under the Securities Act. The registration statement permits us to issue, through one or more transactions, an indeterminate amount of securities, consisting of common stock, preferred stock, debt securities, subscription rights to purchase our securities, warrants representing rights to purchase our securities or separately tradable units combining two or more of our securities.

Preferred Stock

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additional shares of such Floating Rate Preferred Stock and 7.50% Preferred Stock at a price per share of $25.00, and (ii) holders of the 5.50% Preferred Stock and the 6.50% Preferred Stock will have dividends on their 5.50% Preferred Stock and 6.50% Preferred Stock automatically reinvested in additional shares of such 5.50% Preferred Stock and 6.50% Preferred Stock, at a price per share of $23.75 (95% of the stated value of $25.00 per share), if they elect.

At any time prior to the listing of the 5.50% Preferred Stock and the 6.50% Preferred Stock on a national securities exchange, shares of the 5.50% Preferred Stock and the 6.50% Preferred Stock are convertible, at the option of the holder of the 5.50% Preferred Stock and the 6.50% Preferred Stock (the “Holder Optional Conversion”). We will settle any Holder Optional Conversion by paying or delivering, as the case may be, (A) any portion of the Settlement Amount (as defined below) that we elect to pay in cash and (B) a number of shares of our common stock at a conversion rate equal to (1) (a) the Settlement Amount, minus (b) any portion of the Settlement Amount that we elect to pay in cash, divided by (2) the arithmetic average of the daily volume weighted average price of shares of our common stock over each of the five consecutive trading days ending on the Holder Conversion Exercise Date (such arithmetic average, the “5-day VWAP”). For the Series A1 Preferred Stock, the Series A3 Preferred Stock and the Series A2 Preferred Stock, “Settlement Amount” means (A) $25.00 per share (the “Stated Value”), plus (B) unpaid dividends accrued to, but not including, the Holder Conversion Exercise Date, minus (C) the applicable Holder Optional Conversion Fee for the respective Holder Conversion Deadline. For the Series M Preferred Stock, “Settlement Amount” means (A) the Stated Value, plus (B) unpaid dividends accrued to, but not including, the Holder Conversion Exercise Date, minus (C) the applicable Series M Clawback, if any. “Series M Clawback”, if applicable, means an amount equal to the aggregate amount of all dividends, whether paid or accrued, on such share of Series M stock in the three full months prior to the Holder Conversion Exercise Date. Subject to certain limited exceptions, we will not pay any portion of the Settlement Amount in cash (other than cash in lieu of fractional shares of our common stock) until the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock has been issued. Beginning on the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock is issued, we may elect to settle all or a portion of any Holder Optional Conversion in cash without limitation or restriction. The right of holders to convert a share of 5.50% Preferred Stock or 6.50% Preferred Stock will terminate upon the listing of such share on a national securities exchange. Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock do not have a Holder Optional Conversion feature.

Subject to certain limited exceptions allowing earlier redemption, beginning on the earlier of the five year anniversary of the date on which a share of 5.50% Preferred Stock or 6.50% Preferred Stock has been issued, or the two year anniversary of the date on which a share of Floating Rate Preferred Stock or 7.50% Preferred Stock has been issued or, for listed shares of 5.50% Preferred Stock or 6.50% Preferred Stock, five years from the earliest date on which any series that has been listed was first issued and, for listed shares of Floating Rate Preferred Stock or 7.50% Preferred Stock, two years from the earliest date on which any series that has been listed was first issued (the earlier of such dates as applicable to a series of Preferred Stock, the “Redemption Eligibility Date”), such share of Preferred Stock may be redeemed at any time or from time to time at our option (the “Issuer Optional Redemption”), at a redemption price of 100% of the Stated Value of the shares to be redeemed plus unpaid dividends accrued to, but not including, the date fixed for redemption.

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aggregate, as of the end of the most recent fiscal quarter will be redeemed per fiscal quarter; and (iii) no more than 20% of the outstanding 7.50% Preferred Stock, in aggregate, as of the end of the most recent fiscal quarter will be redeemed per Annual Redemption Period; plus, for each redemption limit set forth above in clauses (i) through (iii) of this paragraph, an amount of such 7.50% Preferred Stock equal to the lowest excess, if any, between the corresponding applicable 2% / 5% / 20% redemption limits for Floating Rate Preferred Stock as set forth above and the respective amounts requested for the Floating Rate Preferred Stock on a Holder Redemption Deadline for the Floating Rate Preferred Stock.

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elect to pay in cash, divided by (2) the NAV per share of common stock at the close of business on the business day immediately preceding the date of conversion. We will not pay any portion of the IOC Settlement Amount from an Issuer Optional Conversion in cash (other than cash in lieu of fractional shares of our common stock) until the Redemption Eligibility Date. Beginning on the Redemption Eligibility Date, we may elect to settle any Issuer Optional Conversion in cash without limitation or restriction. In the event that we exercise an Issuer Optional Conversion with respect to any shares of 5.50% Preferred Stock or 6.50% Preferred Stock, the holder of such 5.50% Preferred Stock or 6.50% Preferred Stock may instead elect a Holder Optional Conversion with respect to such 5.50% Preferred Stock or 6.50% Preferred Stock provided that the date of conversion for such Holder Optional Conversion would occur prior to the date of conversion for an Issuer Optional Conversion. Shares of the Floating Rate Preferred Stock and 7.50% Preferred Stock do not have an Issuer Optional Conversion feature. The Company actively manages its offerings of preferred stock and, although it may or may not be presently offering a particular series of its preferred stock, the Company may determine to issue any of its authorized series of preferred stock (and, in connection therewith, to relaunch the offering of any particular series, if previously terminated) based on its assessment of market conditions, demand, and appropriate cost of capital in light of the foregoing and the overall construction of its portfolio and capital structure.

During the three months ended September 30, 2026 and September 30, 2025, we did not repurchase shares of Series A Preferred Stock.

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September 30, 2026, we exchanged an aggregate of 9,000 Series M4 Preferred Stock for an aggregate of 9,000 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act.

During the three months ended September 30, 2025, we exchanged an aggregate of 0 Series M1 Preferred Stock. Additionally, during the three months ended September 30, 2025, we exchanged an aggregate of 12,182 Series M3 Preferred Stock for an aggregate of 0 and 12,182 newly-issued Series M4 Preferred Stock and newly-issued Series M5 Preferred Stock, respectively, pursuant to Section 3(a)(9) of the Securities Act.

•6.03865, subject to certain adjustments,

subject, in each case, to provisions for the receipt of alternative consideration upon conversion as described in the applicable prospectus supplement.

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For purposes of the foregoing discussion of a redemption upon the occurrence of a Change of Control Triggering Event, the following definitions are applicable:

“Change of Control Triggering Event” means the occurrence of any of the following:

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Except as provided above in connection with a Change of Control Triggering Event, the Series A Preferred Stock is not convertible into or exchangeable for any other securities or property.

We determined the estimated value as of September 30, 2026 of our 5.50% Preferred Stock, 6.50% Preferred Stock, Floating Rate Preferred Stock, and 7.50% Preferred Stock was a $25.00 stated value per share. We engaged a third-party valuation service to assist in our determination based on the calculation resulting from the total equity on our Consolidated Statements of Assets and Liabilities in our Quarterly Report on Form 10-Q for the three months ended September 30, 2026 (the “Form 10-Q”), which was prepared in accordance with U.S. generally accepted accounting principles in the United States of America, adjusted for the fair value of our investments (i.e. from our Consolidated Schedule of Investments) and total liabilities, divided by the number of shares of our Preferred Stock outstanding. Based on this methodology and because the result from the calculation above is greater than the $25.00 per share stated value of our 5.50% Preferred Stock, 6.50% Preferred Stock, Floating Rate Preferred Stock, and 7.50% Preferred Stock, the estimated value of our 5.50% Preferred Stock, 6.50% Preferred Stock, Floating Rate Preferred Stock, and 7.50% Preferred Stock as of September 30, 2026 is $25.00 per share.

Common Stock

On August 19, 2026, we filed an amendment to our charter with the SDAT to increase our authorized shares of stock from 2,000,000,000 shares of stock to 4,000,000,000 shares of stock.

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Recent Developments

On October 6, 2026, our $69,388 second lien term loan to BCPE North Star US Holdco 2, Inc. was fully repaid at par.


Monthly Cash 7.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.156250
January 2027	1/20/2027	2/1/2027	$0.156250
February 2027	2/17/2027	3/1/2027	$0.156250

On November 4, 2026, we announced the declaration of monthly dividends for our Floating Rate Preferred Stock for holders of record on the following dates based on an annualized rate equal to 6.50% of the stated value of $25.00 per share as set forth in the Articles Supplementary for the Preferred Stock, from the date of issuance or, if later from the most recent dividend payment date (the first business day of the month, with no additional dividend accruing in January as a result), authorized on November 3, 2026, as follows:


Monthly Cash Floating Rate Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.135417
January 2027	1/20/2027	2/1/2027	$0.135417
February 2027	2/17/2027	3/1/2027	$0.135417


Monthly Cash 5.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.114583
January 2027	1/20/2027	2/1/2027	$0.114583
February 2027	2/17/2027	3/1/2027	$0.114583

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Monthly Cash 6.50% Preferred Shareholder Distribution	Record Date	Payment Date	Monthly Amount ($ per share), before pro ration for partial periods
December 2026	12/22/2026	1/4/2027	$0.135417
January 2027	1/20/2027	2/1/2027	$0.135417
February 2027	2/17/2027	3/1/2027	$0.135417


Quarterly Cash 5.35% Preferred Shareholder Distribution	Record Date	Payment Date	Amount ($ per share)
November 2026 - January 2027	1/20/2027	2/1/2027	$0.334375

On November 4, 2026, we announced the declaration of monthly dividends on our common stock as follows:


Monthly Cash Common Stockholder Distribution	Record Date	Payment Date	Amount ($ per share)
November 2026	11/25/2026	12/21/2026	$0.0350
December 2026	12/29/2026	1/20/2027	$0.0350
January 2027	1/27/2027	2/17/2027	$0.0350

Critical Accounting Estimates

We prepare our Financial Statements in accordance with U.S. GAAP. In applying many of these accounting principles, we make estimates that affect the reported amounts of assets, liabilities, revenues and expenses in our consolidated financial statements. We base our estimates on historical experience and other factors that we believe are reasonable under the circumstances. Changes in the economic environment, financial markets and any other parameters used in determining such estimates could cause actual results to differ materially. These estimates, however, are subjective and subject to change, and actual results may differ materially from our current estimates due to the inherent nature of these estimates.

Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in “Item 1A. Risk Factors.” See Note 2 to our consolidated financial statements for more information on how fair value of our investment portfolio is determined, and Note 3 to our consolidated financial statements for information about the inputs and assumptions used to measure fair value of our investment portfolio.

Fair Value of Financial Instruments

To value our investments, we follow the guidance of ASC 820, Fair Value Measurement (“ASC 820”), that defines fair value, establishes a framework for measuring fair value in conformity with GAAP, and requires disclosures about fair value measurements. In accordance with ASC 820, the fair value of our investments is defined as the price that we would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market in which that investment is transacted.

ASC 820 classifies the inputs used to measure these fair values into the following hierarchy:

•Level 1: Quoted prices in active markets for identical assets or liabilities, accessible by us at the measurement date.

•Level 2: Quoted prices for similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active, or other observable inputs other than quoted prices, including valuations

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derived from observable market data such as interest rate curves, forward curves, foreign exchange rates, and credit spreads.

•Level 3: Unobservable inputs for the asset or liability.

In all cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to each investment. All of our investments carried at fair value are classified as Level 2 or Level 3 as of September 30, 2026 and June 30, 2026, with a significant portion of our investments classified as Level 3.

Investments

We determine the fair value of our investments on a quarterly basis, with changes in fair value reflected as a net change in unrealized gains (losses) from investments in the Consolidated Statement of Operations.

The Company applies the SEC’s Rule 2a-5 in determining fair value of its investments. Rule 2a-5 establishes a consistent, principles-based framework for boards of directors to use in creating their own specific processes in order to determine fair values in good faith.

Certain derivative instruments are valued using pricing information obtained from third-party pricing services, including IHS Markit. These valuations are based on prevailing market data as of the measurement date and are derived using models that apply well-recognized financial principles. Significant inputs to the valuation models include observable market data such as interest rate curves, forward curves, credit spreads, foreign exchange rates, volatilities, and other market-corroborated inputs. Management and the independent valuation firm evaluate the methodologies and inputs to assess whether the resulting values are representative of fair value.

In determining the range of values for debt and equity instruments where market quotations are not readily available, we perform a multiple step valuation process with our investment professionals alongside our independent valuation firms. The independent valuation firms prepare valuations for each investment which are presented by the independent valuation firms to the Audit Committee of our Board of Directors. The Audit Committee makes a recommendation to the Board of Directors of the value for each investment and the Board of Directors approves the values with the input of the Investment Adviser.

Management and the independent valuation firms may consider various factors in determining the fair value of our investments. One prominent factor is the enterprise value of a portfolio company determined by applying a market approach such as using earnings before interest, taxes, depreciation and amortization (“EBITDA”) multiples, net income and/or book value multiples for similar guideline public companies and/or similar recent investment transactions and/or an income approach, such as the discounted cash flow technique. If relevant, management and the independent valuation firms will consider the pricing indicated by external events such as a purchase or sale transaction to corroborate the valuation.

Changes in market yields, discount rates, capitalization rates or EBITDA multiples, each in isolation, may change the fair value measurement of certain of our investments. Generally, an increase in market yields, discount rates or capitalization rates, or a decrease in EBITDA (or other) multiples may result in a decrease in the fair value measurement of certain of our investments.

Our investments that are classified as Level 3 are primarily valued utilizing a discounted cash flow, enterprise value (“EV”) waterfall, takeout scenario, asset recovery analysis, deficiency claims analysis, or an option pricing model. The discounted cash flow converts future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate discount rate. The fair value measurement is based on the net present value indicated by current market expectations about those future amounts. Under the EV waterfall, the EV of a portfolio company is first determined and allocated over the portfolio company’s securities in order of their preference relative to one another (i.e., “waterfall” allocation). To determine the EV, we typically use a market (multiples) valuation approach that considers relevant and applicable market trading data of guideline public companies, transaction metrics from precedent merger and acquisitions transactions, and/or a discounted cash flow. The takeout scenario is utilized when there is a pending or highly probable transaction under which an investment is expected to repaid in the near term. Under this approach, fair value is generally based on the expected repayment amount, with consideration given to the expected timing and certainty of the transaction. The asset recovery analysis is intended to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds based on a hypothetical liquidation of a portfolio company’s assets. The deficiency claim analysis approximates the potential recoveries from claims after liquidation. The option pricing model considers the optionality of certain equity positions when there is a limitation to exit or effectuate a sale. The model utilizes the underlying price, the strike or exercise price, interest rate, volatility, and time to expiration date.

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In determining the range of values for our investments in CLOs, the independent valuation firm uses a discounted multi-path cash flow model. Various risk factors are sensitized in the multi-path cash flow model using Monte Carlo simulations to generate probability-weighted (i.e., multi-path) cash flows for the underlying assets and liabilities. These cash flows are discounted using appropriate market discount rates, and relevant data in the CLO market and certain benchmark credit indices are considered, to determine the value of each CLO investment.

As of September 30, 2026, $2,854,538, $2,961,610, $69,388, $37,554, $12,678, and $7,586 of our total investments were valued using the discounted cash flow, enterprise value waterfall, takeout scenario, option pricing model, asset recovery analysis, and deficiency claims analysis, respectively, compared to $2,969,844, $3,304,228, $0, $35,496, $19,493, and $12,264, respectively, as of June 30, 2026.

Recent Accounting Pronouncements

For discussion of recent accounting pronouncements, see Note 2 within the accompanying notes to the consolidated financial statements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are subject to financial market risks, including changes in interest rates and equity price risk. Uncertainty with respect to the economic effects of heightened interest rates in response to inflation, ongoing conflict between Russia and Ukraine and the Middle East and the ongoing geopolitical uncertainty has introduced significant volatility in the financial markets, and the effects of this volatility could materially impact our market risks, including those listed below. Concerning these risks and their potential impact on our business and our operating results, see Part I, Item 1A. Risk Factors, “Risks Relating to Our Business” in our Annual Report on Form 10-K.

Interest Rate Risk

Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates impacting some of the loans in our portfolio which have floating interest rates. Additionally, because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. See Part I, Item 1A. Risk Factors, “Risks Relating to our Business - Changes in interest rates may affect our cost of capital and net investment income” in our Annual Report on Form 10-K.

Our debt investments may be based on floating rates or fixed rates. For our floating rate loans the rates are determined from the SOFR, EURO Interbank Offer Rate, the Federal Funds Rate or the Prime Rate. The floating interest rate loans may be subject to a SOFR floor. Our loans typically have durations of one, three or six months after which they reset to current market interest rates. As of September 30, 2026, 76.48% of the interest earning investments in our portfolio, at fair value, bore interest at floating rates.

We also have a revolving credit facility and Floating Rate Preferred Stock that pay interest and monthly dividends, respectively, that is based on floating SOFR rates. Interest on borrowings under the revolving credit facility is one-month SOFR plus 205 basis points with no minimum SOFR floor and there is $287,152 of outstanding borrowings as of September 30, 2026. Dividends for the Floating Rate Preferred Stock are equal to one-month Term SOFR (which will reset upon each dividend declaration by the Board of Directors) plus 2.00%, subject to a minimum and maximum annualized dividend rate of 6.50% and 8.00%, respectively. There are 8,569,942 shares of the Floating Rate Preferred Stock outstanding as of September 30, 2026. See Note 9. Equity Offerings, Offering Expenses, and Distributions for further discussion on our Floating Rate Preferred Stock. The Public Notes, Prospect Capital InterNotes® and remaining Preferred Stock bear interest at fixed rates.

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The following table shows the approximate annual impact on net investment income of base rate changes in interest rates (considering interest rate flows for floating rate instruments, excluding our investments in Subordinated Structured Notes) to our loan portfolio and outstanding debt as of September 30, 2026, assuming no changes in our investment and borrowing structure:


Basis Point Change	Increase (Decrease) in Interest Income		Increase (Decrease) in Interest Expense		Net Increase (Decrease) in Net Income(1)
Up 300 basis points	$	82,689	$	8,615	$	74,074
Up 200 basis points	$	54,885	$	5,743	$	49,142
Up 100 basis points	$	27,082	$	2,872	$	24,210
Down 100 basis points	$	(29,615)	$	(2,872)	$	(26,743)
Down 200 basis points	$	(50,830)	$	(5,743)	$	(45,087)
Down 300 basis points	$	(66,951)	$	(8,615)	$	(58,336)

(1)Excludes the impact of income incentive fee and does not reflect dividends paid on preferred stock, including the preferred stock that pay dividends based on a floating rate, since those dividends do not reduce net investment income on our Consolidated Statement of Operations. See Note 13 in the accompanying Consolidated Financial Statements for more information on income incentive fees.

As of September 30, 2026 the one and three month SOFR were 3.91% and 4.08%, respectively.

We may hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of higher interest rates with respect to our portfolio of investments. During the period ended September 30, 2026, we did not engage in hedging activities in relation to interest rate risks.

Foreign Currency Risk

We are exposed to foreign currency risk primarily as a result of our 5.50% 2030 Notes, which are non-U.S. Dollar denominated and for which principal at maturity and interest are payable in Israeli Shekel. Changes in the Israeli Shekels/U.S. Dollar exchange rate may increase or decrease the U.S. Dollar amount of our contractual cash outflows and the reported U.S. Dollar carrying amount of the 5.50% 2030 Notes.

To manage this exposure, we entered into foreign currency forward exchange contracts. We have designated a series of the forward contracts as cash flow hedges of our forecasted interest payments and one forward contract as a fair value hedge of the foreign currency risk associated with the aggregate principal due on the 5.50% 2030 Notes. These derivatives are entered into for risk management purposes and not for trading. As of September 30, 2026, the potential loss in fair value of foreign currency forward contracts resulting from a 3% weakening of the Israeli Shekel relative to the U.S. Dollar would be approximately $5,878. This change would be substantially offset by a corresponding change in the U.S. Dollar value of the principal and interest obligations under the 5.50% 2030 Notes upon remeasurement at the spot rate in effect at the balance sheet date.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of September 30, 2026, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the 1934 Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

There have been no changes in our internal control over financial reporting during the three months ended September 30, 2026, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II

Item 1. Legal Proceedings

(All figures in this item are in thousands except share, per share and other data.)

We are not aware of any material legal proceedings as of September 30, 2026.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed below and the risk factors in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended June 30, 2026, which could materially affect our business, financial condition or future results. The risks described in this report and in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results. (All figures in this item are in thousands except share, per share and other data.)

Risks Relating to Our Business

Macroeconomic uncertainty could have a significant adverse effect on our business, financial condition and results of operations

The three months ended September 30, 2026 have been characterized by volatility and uncertainty in global markets, driven by investor concerns over inflation, elevated interest rates, ongoing political and regulatory uncertainty, including shifts in U.S. trade policy and the imposition of new tariffs, as well as geopolitical instability stemming from the conflicts in Ukraine and the Middle East.

Tariff announcements in the U.S. and ongoing global trade negotiations have contributed to significant uncertainty and volatility of debt and equity markets. Although inflation generally decelerated throughout 2024 and during the first three quarters of 2025 due to central bank monetary tightening, including maintaining elevated interest rates, it remains above target levels set by central banks, including the Federal Reserve. Until September 2025, the Federal Reserve had held interest rates steady in 2025. Despite the interest rate reductions in September 2025, October 2025 and December 2025, rates remain elevated relative to the interest rate environment prior to the inflationary spike in 2022-2023. The Federal Reserve increased interest rates by 25 basis points in September 2026. Heightened interest rates can dampen consumer spending and slow corporate profit growth, negatively impacting our portfolio companies, particularly those vulnerable to economic downturns or recessions. While further interest rate hikes are not expected at this time, any renewed increases could lead to a rise in non-performing assets and decline in portfolio value if investment write-downs become necessary. It remains difficult to predict the full impact of recent and any future changes with respect to interest rates or inflation.

Further contributing to economic uncertainty, the current U.S. presidential administration has signaled its intention to implement or has implemented significant changes to U.S. trade policy, the size of the federal government and the enforcement of various regulations. These policy shifts have introduced additional market instability and reduce investor confidence. For example, changes in trade policy and the imposition of new tariffs could disrupt supply chains and potentially reverse the recent downward trend in inflation. The uncertainty as to how or what tariffs will be enforced or will be imposed in the future or what retaliatory measures other countries may take in response to tariffs proposed or imposed by the U.S. could further increase costs, decrease margins, reduce the competitiveness of products and services offered by our portfolio companies and adversely affect the revenues and profitability of our portfolio companies whose business rely on imported goods. Meanwhile, substantial reductions in government spending could negatively affect certain of our portfolio companies that rely on government contracts, destabilize the U.S. government contracting market and harm our ability to generate expected returns. Additionally, changes in the regulation or enforcement of bank lending and capital requirements could have material and adverse effects on the private credit market. In light of these developments, there can be no assurances that political and regulatory conditions will not worsen and adversely affect the Company, its portfolio companies or their respective financial performance.

Risks Relating to Our Securities

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Senior securities, including debt and preferred equity, expose us to additional risks, including the typical risks associated with leverage and could adversely affect our business, financial condition and results of operations.

We use our revolving credit facility to leverage our portfolio and we expect in the future to borrow from and issue senior debt securities to banks and other lenders and may securitize certain of our portfolio investments. We also have the Unsecured Notes outstanding and have outstanding preferred stock and ongoing share offering program, which are forms of leverage and are senior in payment rights to our common stock.

Business development companies are generally able to issue senior securities such that their asset coverage, as defined in the 1940 Act, equals at least 200% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. In March 2018, the Small Business Credit Availability Act added Section 61(a)(2) to the 1940 Act, a successor provision to Section 61(a)(1) referenced therein, which reduces the asset coverage requirement applicable to business development companies from 200% to 150% so long as the business development company meets certain disclosure requirements and obtains certain approvals. On May 5, 2020, the Company’s stockholders voted to approve the application of the reduced asset coverage requirements in Section 61(a)(2) to the Company effective as of May 6, 2020. As a result of the stockholder approval, effective May 6, 2020, the asset coverage ratio under the 1940 Act applicable to the Company decreased to 150% from 200%. In other words, under the 1940 Act, the Company is now able to borrow $2 for investment purposes for every $1 of investor equity, as opposed to borrowing $1 for investment purposes for every $1 of investor equity. As a result, the Company is able to incur additional indebtedness, and investors in the Company may face increased investment risk. In addition, the Company’s management fee payable to the Investment Adviser is based on the Company’s average adjusted gross assets, which includes leverage and, as a result, if the Company incurs additional leverage, management fees paid to the Investment Adviser would increase.

With certain limited exceptions, as a BDC, we are only allowed to borrow amounts or otherwise issue senior securities such that our asset coverage, as defined in the 1940 Act, is at least 150% after such borrowing or other issuance. The amount of leverage that we employ will depend on the Investment Adviser’s and our Board of Directors’ assessment of market conditions and other factors at the time of any proposed borrowing. There is no assurance that a leveraging strategy will be successful. Leverage involves risks and special considerations for stockholders, any of which could adversely affect our business, financial condition and results of operations, including the following:

•A likelihood of greater volatility in the net asset value and market price of our common stock;

•Diminished operating flexibility as a result of asset coverage or investment portfolio composition requirements required by lenders or investors that are more stringent than those imposed by the 1940 Act;

•The possibility that investments will have to be liquidated at less than full value or at inopportune times to comply with debt covenants or to pay interest or dividends on the leverage;

•Increased operating expenses due to the cost of leverage, including issuance and servicing costs;

•Convertible or exchangeable securities that may be issued in the future (including certain of the Preferred Stock (as defined herein)), may have rights, preferences and privileges more favorable than those of our common stock including, in the case of the Preferred Stock, the statutory right under the 1940 Act to vote, as a separate class, on the election of two of our directors and approval of certain fundamental transactions in certain circumstances;

•Subordination to lenders’ superior claims on our assets as a result of which lenders will be able to receive proceeds available in the case of our liquidation before any proceeds will be distributed to our stockholders;

•Difficulty meeting our payment and other obligations under the Unsecured Notes and our other outstanding debt or preferred equity;

•The occurrence of an event of default if we fail to comply with the financial and/or other restrictive covenants contained in our debt agreements, including the credit agreement and each indenture governing the Unsecured Notes, which event of default could result in all or some of our debt becoming immediately due and payable;

•Reduced availability of our cash flow to fund investments, acquisitions and other general corporate purposes, and limiting our ability to obtain additional financing for these purposes;

•The risk of increased sensitivity to interest rate increases on our indebtedness with variable interest rates, including borrowings under our amended senior credit facility; and

•Reduced flexibility in planning for, or reacting to, and increasing our vulnerability to, changes in our business, the industry in which we operate and the general economy.

For example, the amount we may borrow under our revolving credit facility is determined, in part, by the fair value of our investments. If the fair value of our investments declines, we may be forced to sell investments at a loss to maintain compliance with our borrowing limits. Other debt facilities we may enter into in the future may contain similar provisions. Any such forced

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sales would reduce our net asset value and also make it difficult for the net asset value to recover. The Investment Adviser and our Board of Directors in their best judgment nevertheless may determine to use leverage if they expect that the benefits to our stockholders of maintaining the leveraged position will outweigh the risks.

•In addition, our ability to meet our payment and other obligations of the Preferred Stock, the Unsecured Notes and our credit facility depends on our ability to generate significant cash flow in the future. This, to some extent, is subject to general economic, financial, competitive, legislative and regulatory factors as well as other factors that are beyond our control. We cannot provide assurance that our business will generate cash flow from operations, or that future borrowings will be available to us under our existing credit facility or otherwise, in an amount sufficient to enable us to meet our payment obligations under the Preferred Stock, the Unsecured Notes and our other debt and to fund other liquidity needs. If we are not able to generate sufficient cash flow to service our debt and preferred equity obligations, we may need to refinance or restructure our debt or preferred equity, including the Unsecured Notes, sell assets, reduce or delay capital investments, or seek to raise additional capital. If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under the Preferred Stock, the Unsecured Notes and our other debt.

Illustration. The following tables illustrate the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of interest expense. The calculations in the tables below are hypothetical and actual returns may be higher or lower than those appearing below.

The below calculation assumes (i) $6.9 billion in total assets, (ii) an average cost of funds of 5.90% (including preferred dividend payments), (iii) $1.4 billion in debt outstanding, (iv) $0.6 billion in liquidation preference of preferred stock paying a 5.50% annual dividend outstanding, (v) $0.6 billion in liquidation preference of preferred stock paying a 6.50% annual dividend outstanding, (vi) $0.5 billion in liquidation preference of preferred stock paying a 5.35% annual dividend outstanding, (vii) $0.2 billion in liquidation preference of the Floating Rate Preferred Stock paying a 6.50% annual dividend (based on the floating rate as of October 30, 2026) outstanding, (viii) $0.8 billion in liquidation preference of preferred stock paying a 7.50% annual dividend outstanding and (ix) $2.8 billion of common stockholders’ equity.


Assumed Return on Our Portfolio (net of expenses)	(10)%	(5)%	0%	5%	10%
Corresponding Return to Common Stockholder(1)	(34.8)%	(22.0)%	(9.2)%	3.6%	16.5%

The below calculation assumes (i) $6.9 billion in total assets, (ii) an average cost of funds of 5.86% (including preferred dividend payments), (iii) $1.4 billion in debt outstanding, (iv) $0.5 billion in liquidation preference of preferred stock paying a 5.35% annual dividend outstanding, (v) $0.2 billion in liquidation preference of the Floating Rate Preferred Stock paying a 6.50% annual dividend (based on the floating rate as of October 30, 2026) outstanding, (vi) $0.8 billion in liquidation preference of preferred stock paying a 7.50% annual dividend outstanding and (vii) $3.9 billion of common stockholders’ equity.


Assumed Return on Our Portfolio (net of expenses)	(10)%	(5)%	0%	5%	10%
Corresponding Return to Common Stockholder(2)	(21.7)%	(13.0)%	(4.3)%	4.4%	13.1%

(1) Assumes no conversion of preferred stock to common stock.

(2) Assumes the conversion of $1.2 billion in preferred stock at a conversion rate based on a Holder Optional Conversion Fee (as defined in the Prospectus Supplement relating to the applicable offering) of 6.00% of the maximum public offering price disclosed within the applicable prospectus supplements for shares of preferred stock which are subject to such Holder Optional Conversion Fee.

The assumed portfolio return is required by regulation of the SEC and is not a prediction of, and does not represent, our projected or actual performance. Actual returns may be greater or less than those appearing in the table.

Pursuant to SEC regulations, this table is calculated as of September 30, 2026. As a result, it has not been updated to take into account any changes in assets or leverage since September 30, 2026.

General Risk Factors

We may experience fluctuations in our quarterly results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including the level of structuring fees received, the interest or dividend rates payable on the debt or equity securities we hold, the default rate on debt securities, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to

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which we encounter competition in our markets, and general economic conditions. As a result of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

We did not repurchase any shares of our common stock under the Repurchase Program for the three months ended September 30, 2026.

As of September 30, 2026, the approximate dollar value of shares that may yet be purchased under the plan is $65,860.

On June 16, 2022, our Board of Directors authorized the repurchase of up to 1.5 million shares our Series A Preferred Stock and further on October 11, 2023, authorized any and all outstanding Series A Preferred Stock to be repurchased. There were no repurchases during the three months ended September 30, 2026.

During the three months ended September 30, 2026, we exchanged an aggregate of 10,143 Series M1 Preferred Stock, 20,400 Series M3 Preferred Stock, and 9,000 Series M4 Preferred Stock for an aggregate of 39,543 newly-issued Series M5 Preferred Stock pursuant to Section 3(a)(9) of the Securities Act. Section 3(a)(9) of the Securities Act provides that the registration requirements of the Securities Act will not apply to “any security exchanged by the issuer with its existing security holders exclusively where no commission or other remuneration is paid or given directly or indirectly for soliciting such exchange.” We have no contract, arrangement or understanding relating to, and will not, directly or indirectly, pay any commission or other remuneration to any broker, dealer, salesperson, agent or any other person for soliciting exchanges in the exchange offer.

The shares of Series M5 Preferred Stock issued in the exchange were issued in each case to an existing security holder of the Company, along with cash in respect of accrued but unpaid dividends on the exchanged securities, plus any fractional amount of a Series M1 Preferred Stock, Series M3 Preferred Stock or Series M4 Preferred Stock exchanged multiplied by $25.00 in cash, exclusively in exchange for such holder’s securities and no commission or other remuneration was paid or given for soliciting the exchange. The Series M1 Preferred Stock and Series M3 Preferred Stock are convertible at the option of the holder. See Note 9 for further discussion of the features of the Series M1 Preferred Stock, Series M3 Preferred Stock, Series M4 Preferred Stock and Series M5 Preferred Stock. Other exceptions may apply.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

During the three months ended September 30, 2026, no director or Section 16 officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

Our common stock is traded on the NASDAQ Global Select Market and the Tel Aviv Stock Exchange Ltd. under the symbol “PSEC.”

The following table sets forth, for the quarterly reporting periods indicated, the net asset value per common share of our common stock and the high and low sales prices for our common stock, as reported on the NASDAQ Global Select Market. Our common stock historically has traded at prices both above and below its net asset value. There can be no assurance, however, that such premium or discount, as applicable, to net asset value will be maintained. See also “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended June 30, 2026 for additional information about the risks and uncertainties we face.


			Stock Price				Premium (Discount) of High to NAV		Premium (Discount) of Low to NAV
	NAV(1)		High(2)		Low(2)





Year Ended June 30, 2025
First quarter	$	8.10	$	5.60	$	4.75	(30.9)	%	(41.4)	%
Second quarter		7.84		5.34		4.16	(31.9)	%	(46.9)	%
Third quarter		7.25		4.45		4.10	(38.6)	%	(43.4)	%
Fourth quarter		6.56		4.06		3.14	(38.1)	%	(52.1)	%
Year Ended June 30, 2026
First quarter	$	6.45	$	3.47	$	2.59	(46.2)	%	(59.8)	%
Second quarter		6.21		2.88		2.45	(53.6)	%	(60.5)	%
Third quarter		6.05		3.05		2.49	(49.6)	%	(58.8)	%
Fourth quarter		5.71		2.82		2.15	(50.6)	%	(62.3)	%
Year Ended June 30, 2027
First quarter	$	5.36	$	2.35	$	2.08	(56.2)	%	(61.2)	%

(1) Net asset value per common share is determined as of the last day in the relevant quarter and therefore may not reflect the net asset value per common share on the date of the high or low sales price. The NAVs shown are based on outstanding shares of our common stock at the end of each period.

(2) The High/Low Stock Price is calculated as of the closing price on a given day in the applicable quarter.

As of November 3, 2026, we had approximately 289 stockholders of record.

The below table sets forth each class of our outstanding securities as of November 3, 2026:


Title of Class of Securities	Amount Authorized		Amount Held by Registrant or for its Account	Amount Outstanding Exclusive of Amount held by Registrant or for its Account
Common Stock	3,236,996,787		—	556,989,222		shares
Preferred Stock	763,003,213		—	66,410,432		shares
3.364% 2026 Notes	$	300,000	—	$	263,220	(1)
3.437% 2028 Notes	$	300,000	—	$	219,803
5.50% 2030 Notes	$	173,612	—	$	164,068	(2)
8.95% 2031 Notes	$	300,000	—	$	300,000
Prospect Capital InterNotes®	$	1,000,000	—	$	594,554	(3)

(1) On October 14, 2026, we gave notice of our election to redeem all $263,220 aggregate principal amount of the outstanding 3.364% 2026 Notes. We expect the redemption to be completed on or about November 13, 2026.

(2) The 5.50% 2030 Notes are a foreign-denominate bond, issued in Israeli Shekels. The amount outstanding has been remeasured into U.S. Dollars as of November 3, 2026.

(3) Prospect Capital InterNotes® amount outstanding includes settlements occurring on or before the filing date of the 10-Q for the quarterly period ended September 30, 2026.

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Recent Sales of Common Stock Below Net Asset Value

At our 2009, 2010, 2011, 2012 and 2013 annual meeting of stockholders, and at special meetings of stockholders held on June 12, 2020, June 11, 2021, June 10, 2022, June 9, 2023, June 10, 2024, June 17, 2025 and July 7, 2026 our stockholders approved our ability to sell shares of our common stock at a price or prices below our NAV per common share at the time of sale in one or more offerings. The current approval to sell shares of our common stock below our NAV per common share is valid until July 7, 2027 and subject to certain conditions as set forth in the proxy statement relating to the special meeting (including that the number of shares sold on any given date does not exceed 25% of our outstanding common stock immediately prior to such sale). Accordingly, we may make offerings of our common stock without any limitation on the total amount of dilution to stockholders. Our prospectus supplement and accompanying prospectus relating to this offering contains additional information about these offerings. Pursuant to the authority granted by our stockholders and the approval of our Board of Directors, we have made the following offerings below NAV per common share:


Date of Offering	Price Per Share to Investors	Shares Issued	Estimated Net Asset Value per Common Share(1)	Percentage Dilution
June 15, 2020 to June 22, 2020(2)	$5.29 - $5.40	1,158,222	$7.93 - 7.94	0.10%

(1) The data for sales of common shares below NAV pursuant to our equity distribution agreements are estimates based on our last reported NAV prior to the respective period adjusted for capital events occurring during the period since the last calculated NAV. All amounts presented are approximations based on the best available data at the time of issuance.

(2) At the market offering. Dates of offering represent the sales dates of the stock. The settlement dates are two business days later than the sale dates.

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FEES AND EXPENSES

The following tables are intended to assist you in understanding the costs and expenses that an investor in shares of common stock will bear directly or indirectly. The sales load and offering expenses shown in the table below will be paid for by the Company and will be indirectly borne by holders of our common stock and not by the holders of Preferred Stock prior to any conversion of such Preferred Stock to common stock. We caution you that some of the percentages indicated in the table below are estimates and may vary. These tables are based on our assets and common stock outstanding as of September 30, 2026, except that we assume that we have issued all shares of preferred stock the Company is authorized to issue, and that we have borrowed $2.1 billion under our credit facility, which is the maximum amount available under the credit facility with the current levels of other debt, in addition to our other indebtedness of $1.3 billion.

Except where the context suggests otherwise, any reference to fees or expenses paid by “us” or that “we” will pay fees or expenses, the Company will pay such fees and expenses out of our net assets and, consequently, common stockholders will indirectly bear such fees or expenses. However, common stockholders will not be required to deliver any money or otherwise bear personal liability or responsibility for such fees or expenses.


Stockholder transaction expenses:
Sales Load (as a percentage of offering price) (1)			—
Offering expenses borne by the Company (as a percentage of offering price) (2)			—
Preferred Stock Dividend reinvestment plan expenses (3)			$15.00
Total stockholder transaction expenses (as a percentage of offering price):			—
Annual expenses (as a percentage of net assets attributable to common stock):
Management fees (4)			6.25%
Incentive fees payable under Investment Advisory Agreement (20% of realized capital gains and 20% of pre-incentive fee net investment income) (5)			1.11%
Total advisory fees			7.36%
Total interest expenses (6)			6.80%
Other expenses (7)			0.77%
Total annual expenses (5)(7)(8)			14.93%
Dividends on Preferred Stock (9)			6.36%
Total annual expenses after dividends on Preferred Stock			21.29%

Example

The following table demonstrates the projected dollar amount of cumulative expenses we would pay out of net assets and that common stockholders would indirectly bear over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we assume that we have issued all shares of preferred stock the Company is authorized to issue, and that we have borrowed $2.1 billion under our credit facility, which is the maximum amount available under the credit facility with the current levels of other debt, in addition to our other indebtedness of $1.3 billion, and that our annual operating expenses would remain at the levels set forth in the table above and that we would pay the costs shown in the table above.


	1 Year		3 Years		5 Years		10 Years


Common stockholders would pay the following expenses on a $1,000 investment, assuming a 5% annual return*	$	276	$	563	$	769	$	1,066

Common stockholders would pay the following expenses on a $1,000 investment, assuming a 5% annual return**	$	285	$	581	$	789	$	1,077

* Assumes that we will not realize any capital gains computed net of all realized capital losses and unrealized capital depreciation on our portfolio.

** Assumes no unrealized capital depreciation or realized capital losses and 5% annual return on our portfolio resulting entirely from net realized capital gains (and therefore subject to the capital gains incentive fee).

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While the example assumes, as required by the SEC, a 5% annual return on our portfolio, our performance will vary and may result in a return greater or less than 5%. The income incentive fee under our Investment Advisory Agreement with Prospect Capital Management is unlikely to be material assuming a 5% annual return on our portfolio and is not included in the example. If we achieve sufficient returns on our portfolio, including through the realization of capital gains, to trigger an incentive fee of a material amount, our distributions to our common stockholders and our expenses would likely be higher. In addition, while the example assumes reinvestment of all dividends and other distributions at NAV, common stockholders that participate in our common stock dividend reinvestment plan will receive a number of shares of our common stock determined by dividing the total dollar amount of the distribution payable to a participant by 95% of the market price per share of our common stock at the close of trading on the valuation date for the distribution.

This example and the expenses in the table above should not be considered a representation of our future expenses. Actual expenses (including the cost of debt, if any, and other expenses) may be greater or less than those shown.

(1) In the event that securities are sold to or through underwriters, a corresponding prospectus supplement will disclose the estimated applicable sales load.

(2) The related prospectus supplement will disclose the estimated amount of offering expenses, the offering price and the estimated offering expenses borne by us as a percentage of the offering price.

(3) The expenses of the dividend reinvestment plan are included in “other expenses.” The plan administrator’s fees under the plan are paid by us. There are no brokerage charges or other charges to stockholders who participate in reinvestment of dividends or other distributions under the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15 transaction fee plus a $0.10 per share brokerage commissions from the proceeds. See “Capitalization” in the applicable prospectus supplement pursuant to which an offer is made and “Dividend Reinvestment and Direct Stock Repurchase Plan” in this prospectus and the applicable prospectus supplement.

(4) Our base management fee is 2% of our gross assets (which include any amount borrowed, i.e., total assets without deduction for any liabilities, including any borrowed amounts for non-investment purposes, for which purpose we have not and have no intention of borrowing). Although no plans are in place to borrow the full amount under our line of credit, assuming that we borrowed $2.1 billion, the 2% management fee of gross assets equals approximately 6.25% of net assets.

(5) Based on our net investment income and realized capital gains, less realized and unrealized capital losses, earned on our portfolio for the nine months ended September 30, 2026, all of which consisted of an income incentive fee. This historical amount has been adjusted to reflect the issuance of 128,045,302 shares of preferred stock. The capital gain incentive fee is paid without regard to pre-incentive fee income. For a more detailed discussion of the calculation of the two-part incentive fee, see “Management Services-Investment Advisory Agreement” in the prospectus.

(6) As of September 30, 2026, we had $1.3 billion outstanding of Unsecured Notes (as defined below) in various maturities, ranging from October 15, 2026 to March 15, 2052, and interest rates, ranging from 2.25% to 8.00%.

(7) “Other expenses” are based on estimated amounts for the current fiscal year. The expenses of the Preferred Dividend Reinvestment Plan are included in “other expenses”. See “Capitalization” in the applicable prospectus supplement. The amount shown above represents annualized expenses during our nine months ended September 30, 2026 representing all of our estimated recurring operating expenses (except fees and expenses reported in other items of this table) that are deducted from our operating income and reflected as expenses in our Consolidated Statement of Operations. The estimate of our overhead expenses, including payments under an administration agreement with Prospect Administration, or the Administration Agreement is based on our projected allocable portion of overhead and other expenses incurred by Prospect Administration in performing its obligations under the Administration Agreement. See “Business-Management Services-Administration Agreement” in the applicable prospectus.

(8) If all 47,505,179 outstanding 5.50% Preferred Stock and 6.50% Preferred Stock were converted into common stock and assuming all the Series A1 and Series A3 pay a Holder Optional Conversion Fee of 6.00% and all the Series A2 Preferred Stock pay a Holder Optional Conversion Fee of 0.00% of the maximum public offering price disclosed within the applicable prospectus supplement, then management fees would be 4.47%, incentive fees payable under our Investment Advisory Agreement would be 0.79%, total advisory fees would be 5.26%, total interest expenses would be 4.86%, other expenses would be 0.56%, and total annual expenses would be 10.68% of net assets attributable to our common stock.

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(9) Based on the 5.50% per annum dividend rate applicable to the Series A1 Shares, M1 Shares, M2 Shares and A2 Shares. Also based on the 5.35% per annum dividend rate applicable to the A Shares. Also based on the 6.50% per annum dividend rate applicable to the Series A3 Shares and M3 Shares, the 6.50% annualized dividend rate applicable to Floating Rate Preferred Stock based on the floating rate as of October 30, 2026 and the 7.50% per annum dividend rate applicable to the Series A5 Shares and M5 Shares. Other series of preferred stock, including other series of preferred stock being sold in different offerings, may bear different annual dividend rates. No dividend will be paid on shares of Preferred Stock after they have been converted to shares of common stock.

Item 6. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the SEC (according to the number assigned to them in Item 601 of Regulation S-K):


Exhibit No.
3.1			Articles of Amendment and Restatement(1)
3.2			Amended and Restated Bylaws(2)
3.3			Articles of Amendment(3)
3.4			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation (4)
3.5			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation (5)
3.6			Certificate of Correction to the Articles Supplementary of Prospect Capital Corporation(6)
3.7			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(7)
3.8			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(8)
3.9			Certificate of Correction to Articles Supplementary of Prospect Capital Corporation(9)
3.10			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(10)
3.11			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(11)
3.12			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(12)
3.13			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(13)
3.14			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(14)
3.15			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation (15)
3.16			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(16)
3.17			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(17)
3.18			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(18)
3.19			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(19)
3.20			Articles Supplementary to the Articles of Amendment and Restatement of Prospect Capital Corporation(20)
3.21			Articles of Amendment(21)
4.1			One Thousand Six Hundred Seventy-Ninth Supplemental Indenture dated as of July 2, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2029(22)
4.2			One Thousand Six Hundred Eightieth Supplemental Indenture dated as of July 2, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2031(22)
4.3			One Thousand Six Hundred Eighty-First Supplemental Indenture dated as of July 2, 2026, to the U.S. Bank Indenture, and Form of 6.750% Prospect Capital InterNote® due 2033(22)
4.4			One Thousand Six Hundred Eighty-Second Supplemental Indenture dated as of July 9, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2029(23)
4.5			One Thousand Six Hundred Eighty-Third Supplemental Indenture dated as of July 9, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2031(23)
4.6			One Thousand Six Hundred Eighty-Fourth Supplemental Indenture dated as of July 9, 2026, to the U.S. Bank Indenture, and Form of 6.750% Prospect Capital InterNote® due 2033(23)
4.7			One Thousand Six Hundred Eighty-Eighth Supplemental Indenture dated as of July 23, 2026, to the U.S. Bank Indenture, and Form of 6.000% Prospect Capital InterNote® due 2029(24)
4.8			One Thousand Six Hundred Eighty-Ninth Supplemental Indenture dated as of July 23, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2031(24)
4.9			One Thousand Six Hundred Ninetieth Supplemental Indenture dated as of July 23, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2033(24)
4.10			One Thousand Six Hundred Ninety-First Supplemental Indenture dated as of July 30, 2026, to the U.S. Bank Indenture, and Form of 6.000% Prospect Capital InterNote® due 2029(25)

183


Exhibit No.
4.11			One Thousand Six Hundred Ninety-Second Supplemental Indenture dated as of July 30, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2031(25)
4.12			One Thousand Six Hundred Ninety-Third Supplemental Indenture dated as of July 30, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2033(25)
4.13			One Thousand Six Hundred Ninety-Fourth Supplemental Indenture dated as of August 6, 2026, to the U.S. Bank Indenture, and Form of 6.000% Prospect Capital InterNote® due 2029(26)
4.14			One Thousand Six Hundred Ninety-Fifth Supplemental Indenture dated as of August 6, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2031(26)
4.15			One Thousand Six Hundred Ninety-Sixth Supplemental Indenture dated as of August 6, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2033(26)
4.16			One Thousand Six Hundred Ninety-Seventh Supplemental Indenture dated as of August 13, 2026, to the U.S. Bank Indenture, and Form of 6.000% Prospect Capital InterNote® due 2029(27)
4.17			One Thousand Six Hundred Ninety-Eighth Supplemental Indenture dated as of August 13, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2031(27)
4.18			One Thousand Six Hundred Ninety-Ninth Supplemental Indenture dated as of August 13, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2033(27)
4.19			One Thousand Seven Hundredth Supplemental Indenture dated as of August 20, 2026, to the U.S. Bank Indenture, and Form of 6.000% Prospect Capital InterNote® due 2029(28)
4.20			One Thousand Seven Hundred First Supplemental Indenture dated as of August 20, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2031(28)
4.21			One Thousand Seven Hundred Second Supplemental Indenture dated as of August 20, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2033(28)
4.22			One Thousand Seven Hundred Sixth Supplemental Indenture dated as of September 11, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2029(29)
4.23			One Thousand Seven Hundred Seventh Supplemental Indenture dated as of September 11, 2026, to the U.S. Bank Indenture, and Form of 6.500% Prospect Capital InterNote® due 2031(29)
4.24			One Thousand Seven Hundred Eighth Supplemental Indenture dated as of September 11, 2026, to the U.S. Bank Indenture, and Form of 6.750% Prospect Capital InterNote® due 2033(29)
4.25			One Thousand Seven Hundred Ninth Supplemental Indenture dated as of September 17, 2026, to the U.S. Bank Indenture, and Form of 6.250% Prospect Capital InterNote® due 2029(30)
11			Computation of Per Share Earnings (included in the notes to the financial statements contained in this report)
12			Computation of Ratios (included in the notes to the financial statements contained in this report)
31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
32.1			Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)(furnished herewith)
32.2			Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)(furnished herewith)
101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH			Inline XBRL Taxonomy Extension Schema Document.
101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104			Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

________________________


*			Filed herewith.
(1)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on May 9, 2014.
(2)			Incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K, filed on August 20, 2026 .
(3)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on August 4, 2020.
(4)			Incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K, filed on August 4, 2020.
(5)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on November 4, 2020.
(6)			Incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K, filed on November 4, 2020.
(7)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 57 to the Registration Statement on Form N-2, filed on May 20, 2021.


(8)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 65 to the Registration Statement on Form N-2, filed on July 15, 2021.
(9)			Incorporated by reference to Exhibit 3.1 of the Registrant's Form 8-K, filed on July 19, 2021.
(10)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on February 23, 2022.
(11)			Incorporated by reference to Exhibit 1.1 of the Registrant’s Form 8-K, filed on June 9, 2022.
(12)			Incorporated by reference to Exhibit 1.1 of the Registrant’s Form 8-K, filed on October 12, 2022.
(13)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on October 12, 2022.
(14)			Incorporated by reference to Exhibit 1.1 of the Registrant’s Form 8-K, filed on February 13, 2023.
(15)			Incorporated by reference to Exhibit 3.2 of the Registrant’s Form 8-K, filed on December 29, 2023.
(16)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on January 25, 2024.
(17)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on October 17, 2024.
(18)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on December 30, 2024.
(19)			Incorporated by reference to Exhibit 3.20 of the Registrant’s Form 10-Q, filed on May 7, 2026.
(20)			Incorporated by reference to Exhibit 3.1 of the Registrant’s Form 8-K, filed on May 8, 2026.
(21)			Incorporated by reference to Exhibit 3.21 of the Registrant’s Form 10-K, filed on August 20, 2026.
(22)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 17 to the Registration Statement on Form N-2, filed on July 2, 2026.
(23)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 18 to the Registration Statement on Form N-2, filed on July 9, 2026.
(24)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 19 to the Registration Statement on Form N-2, filed on July 23, 2026.
(25)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 20 to the Registration Statement on Form N-2, filed on July 30, 2026.
(26)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 21 to the Registration Statement on Form N-2, filed on August 6, 2026.
(27)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 22 to the Registration Statement on Form N-2, filed on August 13, 2026.
(28)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 23 to the Registration Statement on Form N-2, filed on August 20, 2026.
(29)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 24 to the Registration Statement on Form N-2, filed on September 11, 2026.
(30)			Incorporated by reference from the Registrant's Post-Effective Amendment No. 25 to the Registration Statement on Form N-2, filed on September 17, 2026.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		PROSPECT CAPITAL CORPORATION

November 4, 2026	By:	/s/ JOHN F. BARRY III
Date		John F. Barry III
		Chairman of the Board and Chief Executive Officer

November 4, 2026	By:	/s/ KRISTIN L. VAN DASK
Date		Kristin L. Van Dask
		Chief Financial Officer