Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q2 2027 Earnings Presentation
30 slides from Saratoga Investment's earnings presentation, Oct 7, 2026
Slide 1: Saratoga Investment Corp. Second Quarter 2027 Shareholder Presentation
Saratoga Investment Corp. Second Quarter 2027 Shareholder Presentation October 7, 2026
Slide 2: Q2 FY27 Quarter Complicated with Positives and Headwinds
Q2 FY27 Quarter Complicated with Positives and Headwinds Second Quarter 2027 Highlights: Continued high quality portfolio with some write-downs this quarter • Investment quality remains solid o 96.0% of loan investments with highest internal rating and two on non-accrual (0.0% of fair value / 1.3% o
Slide 3: Saratoga Long-Term ROE Substantially Ahead of the BDC Industry
Saratoga 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% 9.0% 10.1% 10.0% 9.3% 9.4% 8.9% 8.9% 9.1% 9.2% 8.5% 8.5% 7.5% 7.5% 7.2% 6.4% 6.6% 5.0% 5.0% 4.3% 2.5% 2.2% 0.9% 0.9% 0.6% 0.0% -1.1% -5.0% FY 2015 FY 2016 FY 2017 FY 2018 F
Slide 4: Consistent Long-Term Asset Growth and Solid Credit Quality
Consistent Long-Term Asset Growth and Solid Credit Quality Asset Base Expansion Trend Overall Credit Quality Remains Solid $1,400 100% $1,200 $1,150 $1,139 $1,109 $1,000 $973 $978 $800 $818 80% 98.3% 96.8%98.6% 99.0% 98.5% 98.1%99.7%96.8% $600 94.2% 95.9% 96.0% 94.1% 93.3% 90.5% $554 82.4% $400 $486
Slide 5: Q2 FY27: Strong Asset Growth with NII Pressure
Q2 FY27: Strong Asset Growth with NII Pressure Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of August 31, 2025 May 31, 2026 August 31, 2026 ($ in millions except per share) $10,000 $8,000 Net investment income $9.1 $7.6 $7.3 $6,000 $10,500 1 $8,500 Adjusted net investm
Slide 6: Long-Term NAV and NAV Per Share Growth With LTM Discrete Decline
Long-Term NAV and NAV Per Share Growth With LTM Discrete Decline Net Asset Value and NAV per Share (FY11 to Q2 FY27) NAV: 7% decrease this quarter, including $8m share repurchases. 310% increase since Saratoga took over management. NAV/Share: 5% decrease this quarter. 1% increase since FY17 with inc
Slide 7: Quarterly Reconciliation of NII and NAV per Share
Quarterly Reconciliation of NII and NAV per Share (1)(2) Reconciliation of Quarterly Adjusted NII per Share $0.01 $0.01 $(0.01) $(0.01) $(0.01) $0.47 $0.46 Adjusted NII per Increase in Increase in Decrease in Increase in Increase in Operating Adjusted NII per Share for Q1 FY27 non-CLO BB Interest Ot
Slide 8: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of August 31, 2026) Outstanding Call Period Capacity Liquidity Maturity Period Floating Rate Valley National Bank Credit Facility $85.0 million $32.5 million $52.5 million 2 Years - Floating Live Oak Credit Facility $75.0 m
Slide 9: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $1,150.2m Portfolio Yield – 9.9% (Based on Fair Values (Weighted Average as of August 31, 2026) Current Yield of Total Existing Portfolio) Other / Structured Other / Structured Second Lien Finance Securities 3.9% Common Second Lien Finance Secu
Slide 10: Yield of BDC Rising Slightly Reflecting Market Changes
Yield of BDC Rising Slightly Reflecting Market Changes 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% 9.6% 9.9% Totals1 10.9% 8.0% $1,000 11.6% 16.4% 7.4% $800 8.9% $ Millions $600 11.6% 12.6% 10.6% 10.4% 11.4% 11.5% $400 14.6%
Slide 11: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically International 1.6% Other 9.2% Southeast West 24.4% 12.4% Southwest 10.2% Midwest Northeast 25.7% 16.5% 11
Slide 12: Diversified Across Industry
Diversified Across Industry Investments across 44 distinct industries Education Software, 2.8% Revenue Cycle Management & Related Services, 2.5% Financial Talent Acquisition Software, 2.3% Employee Collaboration Software, 2.8% Services, Pediatric and Orthodontic Dentistry, 2.2% 2.8% Health/Fitness F
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 $ in thousands (all investments) $60,000 $50,000 $47,569 $42,877 $40,000 $30,000 $20,000 $12,368 $13,398 $8,495 $5,746 $10,000 $4,874 $3,276 $2,207 $562 $1,271 $226 $
Slide 14: Exercising Disciplined Investment Judgment
Exercising Disciplined Investment Judgment SAR Debt Multiples/Deals Closed (2020-2026)(1) Portfolio leverage with non-recurring revenue underwriting is 4.72x(2)(3) Average Middle Market 3/31/2026 6/30/2026 All Senior 3.75x 3.78x 1st Lien/Mezz 5.48x 6.06x 1st Lien/2nd Lien 5.30x (5) Unitranche 5.48x
Slide 15: Pipeline Remains Healthy and Growing Reflecting Business Development Initiatives
Pipeline Remains Healthy and Growing Reflecting Business Development Initiatives New business opportunities remain healthy and robust reflecting the result of recent business development initiatives LTM 2021 ∆ 2022 ∆ 2023 ∆ 2024 2025 Q3 Calendar(1) 2026 • ~49% of deal flow from private equity sponso
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% $363.9m $561.8m 16.9% $1,412.6m 12.3% $492.1m $155.3m 11.5% 16% $209.1m 14.9% 12% 13.9% $486.3m $1,249.1m 13.4% 9.7% 12.9% 12% 8% $393.0m 8% 5.2% 4%
Slide 17: SBIC II Debenture Repayments Commenced - SBIC III Availability
SBIC II Debenture Repayments Commenced - SBIC III Availability(1)(2) $450 $400 $350 $121.0m debentures undrawn $300 $ Millions $250 $200 $150 $276.9 $100 $167.1 $50 15% 24% $0 SBIC II SBIC III 1) SBIC III cash available for new originations and follow-ons in existing license, with SBIC II cash only
Slide 18: Long-Term Consistent Dividend Growth
Long-Term Consistent Dividend Growth • Q3 FY27 dividend declared at Dividends Per Share* $0.75 per share; to be paid in $0.25 per share monthly $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 $0.73 $0.72 increments $0.71 $0.70 $0.69 $0.68 • Dividend stable at $0.75 per share from p
Slide 19: SAR LTM Total Return Reflects Recent Weakness
SAR LTM Total Return Reflects Recent Weakness LTM Total Return (%) (September 2025 to September 2026) SAR -15.9% v BDC Index -5.8% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Sep-26 SAR US Equity SPBDCUT Index 19
Slide 20: Solid Long-Term Performance
-60 -50 -40 -30 -20 -10 10 20 30 40 0 -50 -25 0 25 50 75 100 -60 -35 -10 15 40 65 90 115 140 TRIN-US TRIN-US TRIN-US GAIN-US GAIN-US MAIN-US CSWC-US MAIN-US FDUS-US BBDC-US CSWC-US GAIN-US FDUS-US FDUS-US HTGC-US OCSL-US HTGC-US CSWC-US HTGC-US BBDC-US ARCC-US BXSL-US ARCC-US CGBD-US GSBD-US PFX-US
Slide 21: Performance as Compared to the Industry
Performance as Compared to the Industry Interest % on Portfolio LTM NII Yield LTM ROE Regulatory Debt/Equity 11.0% 11% 5% 4.1% 200% 10.7% 10.1% 10.6% 10.0% 10.5% 10.5% 10% 173.1% 9% 8.5% 3% 2.2% 170% 10.0% 8% 9.5% 7% 1% 140% 9.0% 122.4% 121.7% 6% 8.5% 5% -2% -1.1% 110% SAR BDC Mean BDC Median SAR BD
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 per share for the quarter ended November 30, 2026, to be paid in monthly installments, unchanged ► Strong long-term divi
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 – Q2 FY27
KPIs – Balance Sheet – Q2 FY27 FMV Investment Portfolio FMV Investment Portfolio Period (in millions) (in millions) Q2-25 $ 1,040.7 $1,200.0 Q3-25 $ 960.1 $1,150.0 Q4-25 $ 978.1 Q1-26 $ 968.3 $1,100.0 Q2-26 $ 995.3 $1,050.0 Q3-26 $ 1,016.0 $1,000.0 Q4-26 $ 1,109.1 $950.0 Q1-27 $ 1,126.3 Q2-25 Q3-25
Slide 27: KPIs – Income Statement – Q2 FY27
KPIs – Income Statement – Q2 FY27 Net Interest Margin Net Interest Margin Excluding CLO Period (in millions) (in millions) Q2-25 $ 25.9 $30.0 Q3-25 $ 17.7 $25.0 Q4-25 $ 13.3 Q1-26 $ 15.1 $20.0 Q2-26 $ 13.1 $15.0 Q3-26 $ 13.5 $10.0 Q4-26 $ 13.0 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q2-27 Q1
Slide 28: KPIs – Income Statement – Q2 FY27 (continued)
KPIs – Income Statement – Q2 FY27 (continued) EPS Period EPS $1.25 Q2-25 $ 0.97 Q3-25 $ 0.64 $0.75 Q4-25 $ (0.05) Q1-26 $ 0.91 $0.25 Q2-26 $ 0.84 Q3-26 $ 0.74 $(0.25) Q4-26 $ (0.16) Q1-27 $ (0.42) $(0.75) Q2-27 $ (0.41) Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q2-27 LTM ROE Period LTM ROE Q2-
Slide 29: KPIs - SAR Net Interest Margin
KPIs - SAR Net Interest Margin SAR LTM Net Interest Margin down 4% year-over-year following spread compression, base rate reductions and capital structure refinancings, but up almost five times since taking over management Net Interest Margin $78,605 $78,963 $58,518 $58,286 $52,456 $38,964 $38,127 $
Slide 30: SAR Non-Accruals Significantly Lower than BDC Industry
SAR Non-Accruals Significantly Lower than BDC Industry SAR investments on non-accrual status remain low at 1.3% of cost, well below the BDC industry average of 3.4% of cost (more than 2.5x higher than Saratoga) Non-Accruals at Cost 4.0% 3.4% 3.5% 3.1% 3.0% 2.5% 2.0% 1.5% 1.3% 1.0% 0.5% 0.0% SAR BDC