Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q3 2026 Earnings Presentation
30 slides from Saratoga Investment's earnings presentation, Jan 8, 2026
Slide 1: Fiscal Third Quarter 2026 Shareholder Presentation
Saratoga Investment Corp. Fiscal Third Quarter 2026 Shareholder Presentation January 8, 2026
Slide 2: Continued Solid Performance in Q3 2026
Continued Solid Performance in Q3 2026 Fiscal Third Quarter 2026 Highlights: Continued high quality portfolio and solid portfolio performance • Investment quality remains strong o 99.8% of loan investments with highest internal rating and one residual non-accrual (0.2% of fair value / 0.4% of cost)
Slide 3: Saratoga Double Digit Long-Term ROE Substantially Ahead of the BDC Industry
Saratoga Double Digit Long-Term ROE Substantially Ahead of the BDC Industry Return on Equity 25.0% 23.6% 20.0% 14.8% 15.0% 13.9% 13.2% 11.5% 10.1% 9.7% 10.1% 9.3% 9.4% 9.0% 10.0% 8.9% 8.9% 8.5% 8.5% 7.5% 7.5% 6.9% 7.2% 6.6% 6.6% 5.0% 5.0% 2.5% 0.9% 0.9% 0.6% 0.0% FY 2015 FY 2016 FY 2017 FY 2018 FY 2
Slide 4: Consistent Long-Term Asset Growth and Strong Credit Quality
Consistent Long-Term Asset Growth and Strong Credit Quality Asset Base Expansion Trend Overall Credit Quality Remains Strong $1,200 100% $1,139 $1,000 $1,016 $973 $978 $800 $818 $600 80% 98.3% 96.8% 98.6% 99.0% 98.5% 98.1% 99.7% 99.8% 94.2% 95.9% $554 94.1% 93.3% 90.5% $486 $400 82.4% $402 $343 $284
Slide 5: Q3 FY26: Strong Financial Foundation and Momentum
Q3 FY26: Strong Financial Foundation and Momentum Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of November 30, 2024 August 31, 2025 November 30, 2025 ($ in millions except per share) $14,000 Net investment income $12.4 $9.1 $9.8 $10,500 $7,000 $14,000 Adjusted net inve
Slide 6: Long-Term NAV and NAV Per Share Growth With Recent Stabilization
Long-Term NAV and NAV Per Share Growth With Recent Stabilization Net Asset Value and NAV per Share (FY 11 to Q3 FY26) NAV: 1% increase this quarter. 380% increase since Saratoga took over management. NAV/Share: Decrease of 2c this quarter. 16% increase since FY17 with increases 23 of the last 33 qua
Slide 7: Quarterly Reconciliation of NII and NAV per Share
Quarterly Reconciliation of NII and NAV per Share (1) Reconciliation of Quarterly Adjusted NII per Share $0.02 $0.03 $0.02 $(0.03) $(0.01) $0.58 $0.61 Adjusted NII per Increase in Increase in Increase in Increase in Decrease due to Adjusted NII per Share for Q2 FY26 non-CLO CLO and BB Investments Ot
Slide 8: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of November 30, 2025) Outstanding Call Period Capacity Liquidity Maturity Period Floating Rate Valley National Bank Credit Facility $85.0 million $32.5 million $52.5 million 3 Year - Floating Live Oak Credit Facility $75.0
Slide 9: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $1,016.0m Portfolio Yield – 9.7% (Based on Fair Values (Weighted Average as of November 30, 2025) Current Yield of Total Existing Portfolio) Structured Finance Structured Second Lien Securities Finance Common Second Lien Common Equity 0.8% 5.4%
Slide 10: Yield of BDC Grew With Rising Rates – Currently Declining
Yield of BDC Grew With Rising Rates – Currently Declining Weighted Average Current Yields Annual 13.4% 14.0% 11.8% 11.8% 11.1% 10.8% 11.1% 10.7% 9.3% 9.1% 7.7% 10.7% 11.4% 10.8% 9.7% Totals1 $ Millions 1) Annual total yields on fair value of full portfolio. Excludes dividend income on preferred equi
Slide 11: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically International 1.9% Other 9.1% Southeast 20.8% West 12.6% Southwest 7.5% Midwest Northeast 32.6% 15.5% 11
Slide 12: Diversified Across Industry
Diversified Across Industry Investments across 41 distinct industries Revenue Cycle Management & Talent Acquisition Software, 2.7% Employee Collaboration Software, Related Services, 2.8% Municipal Government Software, 2.8% 3.0% Financial Services, 2.6% Education Software, 3.1% Health/Fitness Franchi
Slide 13: Net Realized Gains Help Protect Shareholder Capital
Net Realized Gains Help Protect Shareholder Capital Cumulative net realized gains reflect portfolio credit quality Net Realized Gains (all investments) $ in thousands $60,000 $50,000 $45,640 $42,877 $40,000 $30,000 $20,000 $12,368 $13,398 $8,495 $10,000 $4,874 $6,025 $1,271 $3,276 $562 $226 $22 $154
Slide 14: Exercising Disciplined Investment Judgment
Exercising Disciplined Investment Judgment SAR Debt Multiples/Deals Closed (2019-2025)(1) Portfolio leverage with non-recurring revenue underwriting is 5.05x(2)(3) Average Middle Market 6/30/2025 9/30/2025 All Senior 3.89x 3.73x 1st Lien/Mezz 5.06x 3.76x 1st Lien/2nd Lien 6.21x > 6.0x Unitranche 5.5
Slide 15: Pipeline Remains Healthy But Reflects Market Slowdown
Pipeline Remains Healthy But Reflects Market Slowdown New business opportunities impacted by market opportunities last twelve months and decreases largely offset by follow-on investments. Current pipeline strengthening as a result of recent business development initiatives 2020 ∆ 2021 ∆ 2022 ∆ 2023
Slide 16: Demonstrated Strong Track Record
Demonstrated Strong Track Record Realized Investments(1)(2)(3) Unrealized Investments(1)(2)(3)(4) (Gross Unlevered IRR%) (Gross Unlevered IRR%) 16% 20% $338.8m $561.1m $336.1m 13.0% 16.8% $1,336.3m 12.4% $1,062.4m 16% $209.1m $90.9m 14.9% 12% $475.2m 10.7% 13.4% 13.3% 12.9% 12% $387.5m 8% 6.8% 8% 4%
Slide 17: SBIC II Debenture Repayments Commenced - SBIC III Availability
SBIC II Debenture Repayments Commenced - SBIC III Availability(1)(2) $400 $350 $300 $136.0m debentures undrawn $250 $ Millions $200 $73.5m Cash $29.4m Cash $150 $100 $183.1m AUM $162.1m AUM $50 16% 18% $0 SBIC II SBIC III 1) SBIC III cash available for new originations and follow-ons in existing lic
Slide 18: Long-Term Consistent Dividend Growth
Long-Term Consistent Dividend Growth Dividends Per Share* 4% Dividend • Announced shift to monthly Increase Over Past dividend payment structure Two Years starting March 2025 $0.75 $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 • Q4 FY26 dividend declared at $0.73 $0.72 $0.71 $0.70 $0.75 per share; to be
Slide 19: SAR LTM Total Return Beats the BDC Index
SAR LTM Total Return Beats the BDC Index – Top 6 BDC LTM Total Return (%) (December 2024 to December 2025) SAR +11% v BDC Index -4% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 SAR US Equ
Slide 20: Strong Long-Term and LTM Performance
-40 -30 -20 -10 0 10 20 30 -60 -20 -50 -40 20 40 60 80 120 50 100 150 200 100 0 0 TRIN-US TRIN-US MAIN-US GAIN-US MAIN-US FDUS-US MAIN-US HTGC-US PNNT-US CSWC-US CSWC-US GAIN-US TSLX-US TSLX-US HTGC-US SAR-US BXSL-US CSWC-US HTGC-US CCAP-US CGBD-US ICMB-US GAIN-US SCM-US SCM-US BCSF-US ARCC-US BBDC-
Slide 21: Solid Performance as Compared to the Industry
Solid Performance as Compared to the Industry Interest % on Portfolio LTM NII Yield LTM ROE Regulatory Debt/Equity 13.0% 10% 9.7% 12% 160% 12.0% 9% 149.4% 11% 10.7% 11.3% 10.4% 8.2% 145% 11.0% 10.6% 10.6% 10% 8% 130% 9.3% 122.0% 116.7% 10.0% 9% 7% 6.6% 115% 9.0% 8% 6% 100% SAR BDC Mean BDC Median SA
Slide 22: Establishing Competitive Edge vs. Other BDCs
Establishing Competitive Edge vs. Other BDCs Outstanding performance characteristics Increased quarterly dividend by 241% since program launched; Latest dividend declared of $0.75 ► Strong long-term dividend per share for the quarter ended February 28, 2025, to be paid in monthly installments, up 1%
Slide 23: Objectives for the Future
Objectives for the Future • Expand our asset base without sacrificing credit quality while benefitting from scale • Increase our capacity to source, analyze, close and manage our investments by adding to our management team and processes • Utilize benefits of fully deploying diverse and available fi
Slide 24: Questions?
Questions? & K' SARATOGA Pi INVESTMENT CORP.
Slide 25: Appendix
Appendix & K' SARATOGA Pi INVESTMENT CORP.
Slide 26: KPIs – Balance Sheet – Q3 FY26
KPIs – Balance Sheet – Q3 FY26 FMV Investment Portfolio FMV Investment Portfolio Period (in millions) (in millions) Q3-24 $ 1,114.0 Q4-24 $ 1,138.8 $1,100.0 Q1-25 $ 1,095.6 Q2-25 $ 1,040.7 Q3-25 $ 960.1 $1,000.0 Q4-25 $ 978.1 Q1-26 $ 968.3 Q2-26 $ 995.3 $900.0 Q3-26 $ 1,016.0 Q3-24 Q4-24 Q1-25 Q2-25
Slide 27: KPIs – Income Statement – Q3 FY26
KPIs – Income Statement – Q3 FY26 Net Interest Margin Net Interest Margin Excluding CLO Period (in millions) (in millions) Q3-24 $ 19.8 $28.0 Q4-24 $ 20.3 $25.0 Q1-25 $ 21.0 Q2-25 $ 25.9 $22.0 Q3-25 $ 17.7 $19.0 Q4-25 $ 13.3 $16.0 Q1-26 $ 15.1 $13.0 Q2-26 $ 13.1 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q
Slide 28: KPIs – Income Statement – Q3 FY26 (continued)
KPIs – Income Statement – Q3 FY26 (continued) EPS Period EPS $1.50 Q3-24 $ (0.31) Q4-24 $ 0.39 $1.00 Q1-25 $ 0.48 Q2-25 $ 0.97 $0.50 Q3-25 $ 0.64 Q4-25 $ (0.05) Q1-26 $ 0.91 $- Q2-26 $ 0.84 Q3-26 $ 0.74 $(0.50) Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 LTM ROE Period LTM ROE 10.0% Q3-24
Slide 29: KPIs - SAR Net Interest Margin Grew Significantly
KPIs - SAR Net Interest Margin Grew Significantly SAR LTM Net Interest Margin down 33% year-over-year following repayments and base rate reductions, but up over five times since taking over management Net Interest Margin $78,605 $78,963 $58,033 $52,456 $38,964 $38,127 $33,364 $30,236 $24,185 $19,460
Slide 30: SAR Non-Accruals vs. BDC Industry
SAR Non-Accruals vs. BDC Industry SAR investments on non-accrual status have decreased to 0.4% of cost, while the BDC industry average remained at 3.2% of cost (8x higher than Saratoga) Non-Accruals at Cost 3.5% 3.2% 3.0% 2.5% 2.5% 2.0% 1.5% 1.0% 0.5% 0.4% 0.0% SAR BDC Mean BDC Median 30