Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q1 2027 Earnings Presentation
30 slides from Saratoga Investment's earnings presentation, Jul 8, 2026
Slide 1: Saratoga Investment Corp. First Quarter 2027 Shareholder Presentation
Saratoga Investment Corp. First Quarter 2027 Shareholder Presentation July 8, 2026
Slide 2: Continued Solid Long-Term Performance in Q1 FY27
Continued Solid Long-Term Performance in Q1 FY27 First Quarter 2027 Highlights: Continued high quality portfolio with some write-downs this quarter • Investment quality remains solid o 98.3% of loan investments with highest internal rating and two on non-accrual (0.0% of fair value / 1.2% of cost) v
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% 9.0% 10.1% 10.1% 10.0% 9.3% 9.4% 8.9% 9.1% 8.5% 8.5% 8.9% 7.5% 7.5% 7.2% 6.7% 6.6% 5.0% 4.0% 5.0% 4.3% 2.5% 2.4% 0.9% 0.9% 0.6% 0.0% FY 2015 FY 2016 FY 2017 FY
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 $1,139 $1,109 $1,126 $1,000 $973 $978 $800 $818 80% 98.3% 98.6% 99.0% 98.5% 98.1% 99.7% 96.8% 98.3% $600 96.8% 95.9% 94.2% 94.1% 93.3% 90.5% $554 82.4% $400 $
Slide 5: Q1 FY27: Strong Asset Growth with NII Pressure
Q1 FY27: Strong Asset Growth with NII Pressure Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of May 31, 2025 February 28, 2026 May 31, 2026 ($ in millions except per share) $10,500 $8,500 Net investment income $10.1 $7.8 $7.6 $6,500 $10,500 $8,500 Adjusted net investmen
Slide 6: Long-Term NAV and NAV Per Share Growth With Recent Discrete Decline
Long-Term NAV and NAV Per Share Growth With Recent Discrete Decline Net Asset Value and NAV per Share (FY11 to Q1 FY27) NAV: 4.5% decrease this quarter. 340% increase since Saratoga took over management. NAV/Share: 5% decrease this quarter. 6% increase since FY17 with increases 23 of the last 35 qua
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 $0.02 $(0.13) $0.08 $(0.01) $(0.02) $0.53 $0.47 Adjusted NII per Increase in Decrease in Decrease in Non-recurrence of Increase in Operating Adjusted NII per Share for Q4 FY26 non-CLO Other In
Slide 8: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of May 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 2.5 Years - Floating Live Oak Credit Facility $75.0 mi
Slide 9: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $1,126.3m Portfolio Yield – 9.8% (Based on Fair Values (Weighted Average as of May 31, 2026) Current Yield of Total Existing Portfolio) Structured Finance Structured Second Lien Securities Finance 3.8% Common Second Lien Common Equity 5.9% Secu
Slide 10: Yield of BDC Grew With Rising Rates – Currently Stable
Yield of BDC Grew With Rising Rates – Currently Stable 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% 9.8% Totals1 8.0% 11.0% $1,000 11.6% 16.4% 7.4% $800 8.9% $ Millions $600 11.6% 12.6% 10.5% 11.4% 10.4% 11.5% $400 12.1%
Slide 11: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically International 1.7% Other 9.1% Southeast 22.2% West 12.3% Southwest 9.5% Midwest 28.3% Northeast 16.9% 11
Slide 12: Diversified Across Industry
Diversified Across Industry Investments across 44 distinct industries Revenue Cycle Management & Related Services, 2.5% Education Software, 2.8% Talent Acquisition Software, 2.4% Financial Services, 2.8% Pediatric and Orthodontic Dentistry Platform, 2.2% Dental Practice Management, 2.9% Health/Fitne
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 $50,000 $45,512 $42,877 $40,000 $30,000 $20,000 $12,368 $13,398 $8,495 $10,000 $4,874 $5,746 $3,276 $562 $1,271 $226 $22 $154 $150 $0
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 4.81x(2)(3) Average Middle Market 12/31/2025 3/31/2026 All Senior 3.85x 3.75x 1st Lien/Mezz 5.37x 5.48x 1st Lien/2nd Lien 5.13x 5.30x Unitranche 5.4
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 Q2 Calendar(1) 2026 • ~48% 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% $561.8m $363.9m $487.1m 16.9% $1,370.6m 12.5% 16% $209.1m 11.9% 14.9% 12% $113.3m $487.3m $1,230.4m 13.4% 13.2% 10.1% 12.9% 12% 8% $379.4m 8% 5.7% 4
Slide 17: SBIC II Debenture Repayments Commenced - SBIC III Availability
SBIC II Debenture Repayments Commenced - SBIC III Availability(1)(2) $350 $300 $46.0m debentures undrawn $250 $200 $ Millions $150 $264.1 $100 $167.4 $50 15% 23% $0 SBIC II SBIC III 1) SBIC III cash available for new originations and follow-ons in existing license, with SBIC II cash only available f
Slide 18: Long-Term Consistent Dividend Growth
Long-Term Consistent Dividend Growth • Q2 FY27 dividend declared at Dividends Per Share* $0.75 per share; to be paid in $0.75 $0.75 $0.75 $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 $0.25 per share monthly $0.73 $0.72 $0.71 $0.70 increments $0.69 $0.68 • Dividend stable at $0.75 per share from prior y
Slide 19: SAR LTM Total Return Beats the BDC Index
SAR LTM Total Return Beats the BDC Index LTM Total Return (%) (June 2025 to June 2026) SAR +6% v BDC Index -13% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 SAR US Equity SPBDCUT Index 19
Slide 20: BDC Total Return Comparison
-50 -40 -30 -20 -10 -60 10 20 30 40 0 -50 -25 100 -60 -35 -10 115 140 25 50 75 15 40 65 90 0 TRIN-US TRIN-US TRIN-US CSWC-US CSWC-US FDUS-US GAIN-US GAIN-US GAIN-US BBDC-US MAIN-US MAIN-US SAR-US BBDC-US CSWC-US FDUS-US HTGC-US HTGC-US GBDC-US FDUS-US ARCC-US OCSL-US BCSF-US SAR-US HTGC-US GBDC-US C
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 11.0% 11% 6% 170% 10.4% 5.3% 161.4% 10.8% 10.2% 10% 155% 4.0% 4% 10.5% 10.5% 9% 8.8% 140% 2.4% 10.3% 2% 123.3% 123.2% 8% 125% 7% 0% 110% 10.0% SAR BDC Mean BDC SAR BDC Mean BDC SAR BDC
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 June 30, 2026, to be paid in monthly installments, unchanged
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 – Q1 FY27
KPIs – Balance Sheet – Q1 FY27 FMV Investment Portfolio FMV Investment Portfolio Period (in millions) (in millions) Q1-25 $ 1,095.6 $1,200.0 Q2-25 $ 1,040.7 Q3-25 $ 960.1 $1,100.0 Q4-25 $ 978.1 $1,000.0 Q1-26 $ 968.3 Q2-26 $ 995.3 $900.0 Q3-26 $ 1,016.0 $800.0 Q4-26 $ 1,109.1 Q1-25 Q2-25 Q3-25 Q4-25
Slide 27: KPIs – Income Statement – Q1 FY27
KPIs – Income Statement – Q1 FY27 Net Interest Margin Net Interest Margin Excluding CLO Period (in millions) (in millions) Q1-25 $ 21.0 Q2-25 $ 25.9 $28.0 Q3-25 $ 17.7 $24.0 Q4-25 $ 13.3 $20.0 Q1-26 $ 15.1 $16.0 Q2-26 $ 13.1 Q3-26 $ 13.5 $12.0 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 Q4
Slide 28: KPIs – Income Statement – Q1 FY27 (continued)
KPIs – Income Statement – Q1 FY27 (continued) EPS Period EPS $1.50 Q1-25 $ 0.48 Q2-25 $ 0.97 $1.00 Q3-25 $ 0.64 $0.50 Q4-25 $ (0.05) Q1-26 $ 0.91 $- Q2-26 $ 0.84 Q3-26 $ 0.74 $(0.50) Q4-26 $ (0.16) Q1-27 $ (0.42) $(1.00) Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Q1-27 LTM ROE Period LTM ROE Q1
Slide 29: KPIs - SAR Net Interest Margin
KPIs - SAR Net Interest Margin SAR LTM Net Interest Margin down 22% year-over-year following repayments, spread compression and base rate reductions, but up over five times since taking over management Net Interest Margin $78,605 $78,963 $58,518 $57,431 $52,456 $38,964 $38,127 $30,236 $33,364 $24,18
Slide 30: SAR Non-Accruals Significantly Lower than BDC Industry
SAR Non-Accruals Significantly Lower than BDC Industry SAR investments on non-accrual status remains low at 1.2% of cost, well below the BDC industry average of 3.7% of cost (more than 3x higher than Saratoga) Non-Accruals at Cost 4.0% 3.7% 3.5% 3.0% 2.6% 2.5% 2.0% 1.5% 1.2% 1.0% 0.5% 0.0% SAR BDC M