Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q2 2026 Earnings Presentation
30 slides from Saratoga Investment's earnings presentation, Oct 8, 2025
Slide 1: Fiscal Second Quarter 2026 Shareholder Presentation
Saratoga Investment Corp. Fiscal Second Quarter 2026 Shareholder Presentation October 8, 2025
Slide 2: Continued Solid Performance in Q2 2026
Continued Solid Performance in Q2 2026 Fiscal Second Quarter 2026 Highlights: Continued high quality portfolio and solid portfolio performance • Investment quality remains strong o 99.7% of loan investments with highest internal rating and one residual non-accrual (0.2% of fair value / 0.3% 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% 9.1% 10.1% 9.3% 9.4% 9.0% 10.0% 8.9% 8.9% 8.5% 8.5% 7.5% 7.5% 7.0% 7.2% 7.3% 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 $973 $978 $995 $800 $818 $600 80% 98.3% 98.6% 99.0% 98.5% 98.1% 99.7% 99.7% 96.8% 95.9% 94.2% 94.1% $554 93.3% 90.5% $400 $486 82.4% $402 $343 $200 $
Slide 5: Q2 FY26: Strong Financial Foundation and Momentum
Q2 FY26: Strong Financial Foundation and Momentum Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of August 31, 2024 May 31, 2025 August 31, 2025 ($ in millions except per share) $20,000 Net investment income $18.2 $10.1 $9.1 $12,500 $5,000 $20,000 Adjusted net investment
Slide 6: Long-Term NAV and NAV Per Share Growth Despite Recent Discrete Weakness
Long-Term NAV and NAV Per Share Growth Despite Recent Discrete Weakness Net Asset Value and NAV per Share (FY 11 to Q2 FY26) NAV: 4% increase this quarter. 377% increase since Saratoga took over management. NAV/Share: Increase of 9c this quarter. 17% increase since FY17 with increases 23 of the last
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 ( $0.10 ) $0.02 ( $0.02 ) $0.02 $0.66 $0.58 Adjusted NII per Decrease in Increase in Decrease in Decrease due to Adjusted NII per Share for Q1 FY26 non-CLO Net Interest Income CLO and BB Investme
Slide 8: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of August 31, 2025) Outstanding Call Period Capacity Liquidity Maturity Period Floating Rate Encina Credit Facility $65.0 million $32.5 million $32.5 million < 1 Year - Floating Live Oak Credit Facility $75.0 million $37.5
Slide 9: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $995.3m Portfolio Yield – 10.4% (Based on Fair Values (Weighted Average as of August 31, 2025) Current Yield of Total Existing Portfolio) Structured Finance Structured Second Lien Finance Common Securities Second Lien 0.7% Common Securities Equ
Slide 10: Yield of BDC Grew With Rising Rates – Rates Now Decreasing
Yield of BDC Grew With Rising Rates – Rates Now Decreasing 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% 10.4% Totals1 12.6% $1,000 16.4% 11.8% 7.4% $800 8.9% $ Millions $600 11.6% 12.6% 11.4% 11.5% 11.3% $400 12.1% 14.6% 5.9%
Slide 11: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically International 1.9% Other 8.7% Southeast West 20.7% 11.7% Southwest 8.0% Northeast Midwest 12.8% 36.2% 11
Slide 12: Diversified Across Industry
Diversified Across Industry Investments across 39 distinct industries Custom Millwork Software, 3.2% Restaurant, 3.2% Dental Practice Management, 3.1% Education Software, 3.2% Municipal Government Software, 3.0% Education Services, 3.2% Employee Collaboration Software, 2.8% Mental Healthcare Service
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 $42,877 $42,569 $40,000 $30,000 $20,000 $12,368 $13,398 $8,495 $10,000 $4,874 $3,276 $2,954 $562 $1,271 $226 $22 $154 $0 FY13
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 5.34x(2)(3) Average Middle Market 3/31/2025 6/30/2025 All Senior 3.84x 3.89x 1st Lien/Mezz 5.06x 5.06x 1st Lien/2nd Lien 5.37x 6.21x Unitranche 5.54
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 LTM 2020 ∆ 2021 ∆ 2022 ∆ 2
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% $42.8m $328.9m 20% $560.9m 17.9% $368.3m 13.1% 16.8% $1,287.6m 12.4% $1,055.8m 16% $474.8m 12% $209.1m 14.9% 10.5% 12.8% 12.9% 12% $358.6m 8% 6.6% 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 $70.8m cash $21.8m cash $150 $100 $186.5m AUM $161.8m AUM $50 16% 19% $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 • Announced shift to monthly Dividends Per Share* 4% Dividend dividend payment structure Increase Over Past starting March 2025 Two Years • Q3 FY26 dividend declared at $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 $0.73 $0.75 per share; to be paid in $0.72 $0.71 $0.
Slide 19: SAR LTM Total Return Beats the BDC Index
SAR LTM Total Return Beats the BDC Index LTM Total Return (%) (September 2024 to September 2025) SAR +22% 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% Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 SAR US Equity SPBDCU
Slide 20: BDC Total Return (%)
-40 -30 -20 -10 -50 0 10 20 40 50 30 -60 -40 100 120 100 200 -20 300 0 20 40 60 80 0 MAIN-US MAIN-US FDUS-US TRIN-US HTGC-US PNNT-US GECC-US CSWC-US OFS-US GAIN-US TSLX-US MAIN-US TSLX-US TRIN-US PFX-US SAR-US FDUS-US HTGC-US OFS-US PNNT-US CSWC-US FDUS-US GLAD-US SCM-US SLRC-US GECC-US GAIN-US RWAY
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% 12% 10% 11.2% 9.1% 9.1% 160% 11.0% 153.3% 12.0% 11% 9% 11.3% 11.4% 145% 10.2% 11.0% 10.8% 10% 8% 130% 7.3% 117.2% 10.0% 9% 7% 114.6% 115% 9.0% 8% 6% 100% 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 November 30, 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 – Q2 FY26
KPIs – Balance Sheet – Q2 FY26 FMV Investment Portfolio FMV Investment Portfolio Period (in millions) (in millions) Q2-24 $ 1,098.9 $1,200.0 Q3-24 $ 1,114.0 $1,100.0 Q4-24 $ 1,138.8 Q1-25 $ 1,095.6 $1,000.0 Q2-25 $ 1,040.7 Q3-25 $ 960.1 $900.0 Q4-25 $ 978.1 Q1-26 $ 968.3 $800.0 Q2-26 $ 995.3 Q2-24 Q
Slide 27: KPIs – Income Statement – Q2 FY26
KPIs – Income Statement – Q2 FY26 Net Interest Net Interest Margin Excluding CLO Margin (in millions) Period (in millions) $28.0 Q2-24 $ 19.6 Q3-24 $ 19.8 $25.0 Q4-24 $ 20.3 $22.0 Q1-25 $ 21.0 $19.0 Q2-25 $ 25.9 Q3-25 $ 17.4 $16.0 Q4-25 $ 13.3 $13.0 Q1-26 $ 15.6 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q
Slide 28: KPIs – Income Statement – Q2 FY26 (continued)
KPIs – Income Statement – Q2 FY26 (continued) EPS $1.50 Period EPS Q2-24 $ 0.65 Q3-24 $ (0.31) $1.00 Q4-24 $ 0.39 Q1-25 $ 0.48 $0.50 Q2-25 $ 0.97 Q3-25 $ 0.64 Q4-25 $ (0.05) $- Q1-26 $ 0.91 Q2-26 $ 0.84 $(0.50) Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 LTM ROE Period LTM ROE Q2-24 9.6% 1
Slide 29: KPIs - SAR Net Interest Margin Grew Significantly
KPIs - SAR Net Interest Margin Grew Significantly SAR LTM Net Interest Margin down 31% 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 $60,940 $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 0.3% of cost, while the BDC industry average remained at a 3.4% of cost (11x more than Saratoga) Non-Accruals at Cost 4.0% 3.5% 3.4% 3.0% 2.6% 2.5% 2.0% 1.5% 1.0% 0.5% 0.3% 0.0% SAR BDC Mean BDC Median 30