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.

[2]

[3]

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.

[4]

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

[5]

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

[6]

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:


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

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	%


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.

[7]

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.