SAYHIGH SIGNALFINANCIAL10-K

Saratoga Investment experienced a dramatic financial turnaround with operating cash flow swinging from -$157.2M to +$197.5M and cash position surging over 1,600% to $148.2M.

This represents a fundamental shift in the company's cash generation capabilities and liquidity position, suggesting either a major operational improvement or significant portfolio realizations. The massive cash buildup combined with increased share buybacks ($2K to $2.2M) indicates management is actively returning capital to shareholders while maintaining substantial dry powder for future investments.

Comparing 2025-05-07 vs 2024-05-06View on EDGAR →
FINANCIAL ANALYSIS

Saratoga delivered exceptional financial performance with net income tripling to $28.1M and a remarkable $354.7M positive swing in operating cash flow from deeply negative to strongly positive territory. The company's cash position exploded from $8.7M to $148.2M while simultaneously increasing dividends by 27% and ramping up share repurchases by over 120,000%. This combination of dramatically improved profitability, massive cash generation, and increased capital returns signals either successful portfolio monetization or a fundamental improvement in the business model that should be highly attractive to investors.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+121661%
$2K$2.2M

Share repurchases increased 121661% — management returning capital, signals confidence in intrinsic value.

Cash & Equivalents
Balance Sheet
+1605.1%
$8.7M$148.2M

Cash position surged 1605.1% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
+225.7%
-$157.2M$197.5M

Operating cash flow surged 225.7% — exceptional cash generation, highest quality earnings signal.

Net Income
P&L
+214.4%
$8.9M$28.1M

Net income grew 214.4% — bottom-line growth signals improving overall business health.

Dividends Paid
Cash Flow
+27.1%
$32.1M$40.7M

Dividend payments increased 27.1% — management confidence in sustained cash generation.

LANGUAGE CHANGES
NEW — 2025-05-07
PRIOR — 2024-05-06
ADDED
The number of outstanding common shares of the registrant as of May 6, 2025 was 15,364,864 .
As of February 28, 2025, we had total assets of $1,191.5 million and investments in 48 portfolio companies, excluding an investment in the subordinated notes of one collateralized loan obligation fund, Saratoga Investment Corp.
( Saratoga CLO ), which had a fair value of $0.2 million as of February 28, 2025, investment in the Class F-2-R-3 Note of Saratoga CLO which as of February 28, 2025 had a fair value of $2.3 million, investment in the Class E Note of Saratoga Investment Corp.
Senior Loan Fund 2022-1, Ltd which as of February 28, 2025 has affair value of $12.3 million and investments in the Saratoga Senior Loan Fund I JV LLC ( SLF JV ) and its subsidiaries, a joint venture which as of February 28, 2025 had a fair value of $19.6 million.
The overall portfolio composition as of February 28, 2025 consisted of 88.7% of first lien term loans, 0.7% of second lien term loans, 1.7% of unsecured loans, 1.5% of structured finance securities and 7.4% of equity interests.
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REMOVED
The number of outstanding com mon shares of the registrant as of May 3, 2024 was 13,698,966 .
As of February 29, 2024, we had total assets of $1,191.2 million and investments in 55 portfolio companies, excluding an investment in the subordinated notes of one collateralized loan obligation fund, Saratoga Investment Corp.
( Saratoga CLO ), which had a fair value of $9.5 million as of February 29, 2024, investments in the Class F-2-R-3 Note of the Saratoga CLO which as of February 29, 2024 had a fair value of $8.9 million, and investments in the Saratoga Senior Loan Fund I JV LLC ( SLF JV ) and its subsidiaries, a joint venture which as of February 29, 2024 had a fair value of $25.2 million.
The overall portfolio composition as of February 29, 2024 consisted of 85.7% of first lien term loans, 1.6% of second lien term loans, 1.4% of unsecured loans, 2.7% of structured finance securities and 8.6% of equity interests.
As of February 29, 2024, the weighted average yield on all of our investments, including our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3 Note was approximately 11.4%.
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