Saratoga Investment Corp. · NYSE:SAR
Saratoga Investment — Q4 2026 Earnings Presentation
32 slides from Saratoga Investment's earnings presentation, May 6, 2026
Slide 1: Fiscal Year-End and Fourth Quarter 2026 Shareholder Presentation
Saratoga Investment Corp. Fiscal Year-End and Fourth Quarter 2026 Shareholder Presentation May 6, 2026
Slide 2: Continued Solid Performance in Fiscal and Q4 2026
Continued Solid Performance in Fiscal and Q4 2026 Fiscal Year-End and Fourth Quarter 2026 Highlights: Continued high quality portfolio and solid portfolio performance • Investment quality remains strong o 96.8% of loan investments with highest internal rating and two on non-accrual (0.2% of fair val
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% 9.1% 10.1% 10.0% 9.3% 9.4% 8.9% 8.5% 8.5% 8.9% 7.5% 7.5% 7.2% 6.7% 6.6% 5.0% 5.0% 4.3% 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 Solid Credit Quality
Consistent Long-Term Asset Growth and Solid Credit Quality Asset Base Expansion Trend Overall Credit Quality Remains Strong $1,200 100% $1,139 $1,109 $1,000 $973 $978 $800 $818 $600 80% 99.7% 98.3% 98.6% 99.0% 98.5% 98.1% 96.8% 95.9% 96.8% 94.2% 94.1% $554 93.3% $486 90.5% $400 82.4% $402 $343 $284
Slide 5: Q4 FY26: Strong Asset Growth and ROE with NII Pressure
Q4 FY26: Strong Asset Growth and ROE with NII Pressure Key Performance Metrics for the Fiscal Quarter For the quarter ended and as of February 28, 2025 November 30, 2025 February 28, 2026 ($ in millions except per share) $10,500 Net investment income $8.0 $9.8 $7.8 $8,500 $6,500 $10,500 Adjusted net
Slide 6: FY26: Strong Asset Growth and ROE with NII Pressure
FY26: Strong Asset Growth and ROE with NII Pressure Key Performance Metrics for the Fiscal Year For the year ended and as of February 29, 2024 February 28, 2025 February 28, 2026 ($ in millions except per share) $60,000 Net investment income $56.9 $53.0 $36.8 $40,000 $20,000 $60,000 Adjusted net inv
Slide 7: 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 FY26) NAV: 4% decrease this quarter. 361% increase since Saratoga took over management. NAV/Share: 4.6% decrease this quarter. 11% increase since FY17 with increases 23 of the last 34 quart
Slide 8: 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 $(0.01) $0.03 $(0.09) $(0.03) $0.61 $0.53 Adjusted NII per Decrease in Increase in Increase in Decrease in Operating Decrease due to Adjusted NII per Share for Q3 FY26 non-CLO Other Inco
Slide 9: Annual Reconciliation of NII and NAV per Share
Annual Reconciliation of NII and NAV per Share (1) Reconciliation of Annual Adjusted NII per Share $(1.15) $0.12 $0.05 $0.03 ($ $0.03 $(0.06) $(0.46) $3.81 $2.37 Adjusted NII per Decrease in non-CLOIncrease in CLO and Increase in Decrease in Increase due to Increase in operating Decrease due to Adju
Slide 10: Dry Powder Remains Available
Dry Powder Remains Available Total Borrowing Available Remaining Fixed / (As of February 28, 2026) 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 11: Portfolio Composition and Yield
Portfolio Composition and Yield Portfolio Composition – $1,109.1m Portfolio Yield – 9.6% (Based on Fair Values (Weighted Average as of February 28, 2026) Current Yield of Total Existing Portfolio) Structured Finance Structured Second Lien Finance Securities Second Lien Common Equity 3.9% Common Secu
Slide 12: 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% 9.6% Totals1 8.0% $1,000 11.6% 16.4% 7.4% $800 8.9% $ Millions $600 11.6% 12.6% 11.4% 10.4% 11.5% $400 12.1% 14.6% 5.9% 5.
Slide 13: Diversified Across Geography
Diversified Across Geography Investments Diversified Geographically International 1.7% Other 8.0% Southeast 20.2% West 12.7% Southwest 9.8% Midwest 30.7% Northeast 16.9% 13
Slide 14: Diversified Across Industry
Diversified Across Industry Investments across 43 distinct industries Financial Services, 2.9% Education Software, 2.9% Revenue Cycle Management & Related Services, 2.5% Dental Practice Management, Municipal Government 2.9% Talent Acquisition Software, 2.5% Software, 3.0% Health/Fitness Franchisor,
Slide 15: 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 $45,362 $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 $0 FY13
Slide 16: Exercising Disciplined Investment Judgment
Exercising Disciplined Investment Judgment SAR Debt Multiples/Deals Closed (2020-2026)(1) Portfolio leverage with non-recurring revenue underwriting is 5.30x(2)(3) Average Middle Market 9/30/2025 12/31/2025 All Senior 3.73x 3.85x 1st Lien/Mezz 5.09x 5.37x 1st Lien/2nd Lien >6.00x 5.13x Unitranche 5.
Slide 17: 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 Q1 Calendar(1) 2026 • ~46% of deal flow from private equity sponso
Slide 18: 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% $561.1m $363.9m $420.8m 16.8% $1,370.6m 12.9% 12.2% $1,162.2m 16% $113.3m 12% $209.1m $487.1m 14.9% 10.5% 13.4% 13.4% 12.9% 12% $377.5m 8% 6.5% 8% 4
Slide 19: SBIC II Debenture Repayments Commenced - SBIC III Availability
SBIC II Debenture Repayments Commenced - SBIC III Availability(1)(2) $400 $350 $99.0m debentures $300 undrawn $250 $ Millions $200 $150 $233.7 $100 $167.6 $50 15% 21% $0 SBIC II SBIC III 1) SBIC III cash available for new originations and follow-ons in existing license, with SBIC II cash only availa
Slide 20: Long-Term Consistent Dividend Growth
Long-Term Consistent Dividend Growth Dividends Per Share* 7% Dividend • Announced shift to monthly Increase Over Past dividend payment structure Three Years starting March 2025 $0.75 $0.75 $0.75 $0.75 $0.75 $0.74 $0.74 $0.74 $0.74 $0.73 • Q1 FY27 dividend declared at $0.72 $0.71 $0.70 $0.69 $0.75 pe
Slide 21: SAR LTM Total Return Beats the BDC Index
SAR LTM Total Return Beats the BDC Index LTM Total Return (%) (April 2025 to April 2026) SAR +14% v BDC Index -1% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 SAR US Equity SPBDCUT Index
Slide 22: BDC Total Return Comparison
-30 -10 -50 10 30 50 -50 -25 100 0 50 75 25 -50 -25 25 50 100 75 0 GAIN-US TRIN-US TRIN-US CSWC-US CSWC-US GAIN-US TRIN-US MAIN-US MAIN-US MFIC-US HTGC-US FDUS-US BBDC-US GAIN-US CSWC-US MAIN-US BBDC-US HTGC-US SAR-US BCSF-US ARCC-US FDUS-US MFIC-US SAR-US SLRC-US SAR-US MFIC-US GSBD-US FDUS-US CGBD
Slide 23: 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 12.0% 12% 10% 9.1% 11% 8% 160% 7.0% 10.5% 10.4% 148.2% 11.0% 10.8% 6% 145% 10.4% 10% 4.3% 10.2% 9.3% 4% 130% 123.9% 10.0% 120.9% 9% 2% 115% 9.0% 8% 0% 100% SAR BDC Mean BDC SAR BDC Mean
Slide 24: 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 May 31, 2026, to be paid in monthly installments, unchanged
Slide 25: 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 26: Questions?
Questions? & K' SARATOGA Pi INVESTMENT CORP.
Slide 27: Appendix
Appendix & K' SARATOGA Pi INVESTMENT CORP.
Slide 28: KPIs – Balance Sheet – Q4 FY26
KPIs – Balance Sheet – Q4 FY26 FMV Investment Portfolio FMV Investment Portfolio Period (in millions) (in millions) Q4-24 $ 1,138.8 $1,200.0 Q1-25 $ 1,095.6 Q2-25 $ 1,040.7 $1,100.0 Q3-25 $ 960.1 $1,000.0 Q4-25 $ 978.1 Q1-26 $ 968.3 $900.0 Q2-26 $ 995.3 Q3-26 $ 1,016.0 $800.0 Q4-26 $ 1,109.1 Q4-24 Q
Slide 29: KPIs – Income Statement – Q4 FY26
KPIs – Income Statement – Q4 FY26 Net Interest Margin Net Interest Margin Excluding CLO Period (in millions) (in millions) Q4-24 $ 20.3 $28.0 Q1-25 $ 21.0 Q2-25 $ 25.9 $24.0 Q3-25 $ 17.7 $20.0 Q4-25 $ 13.3 Q1-26 $ 15.1 $16.0 Q2-26 $ 13.1 $12.0 Q3-26 $ 13.5 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q
Slide 30: KPIs – Income Statement – Q4 FY26 (continued)
KPIs – Income Statement – Q4 FY26 (continued) EPS Period EPS $1.50 Q4-24 $ 0.39 Q1-25 $ 0.48 $1.00 Q2-25 $ 0.97 Q3-25 $ 0.64 $0.50 Q4-25 $ (0.05) Q1-26 $ 0.91 Q2-26 $ 0.84 $- Q3-26 $ 0.74 Q4-26 $ (0.16) $(0.50) Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 LTM ROE Period LTM ROE 10.0% Q4-24
Slide 31: KPIs - SAR Net Interest Margin Grew Significantly
KPIs - SAR Net Interest Margin Grew Significantly SAR LTM Net Interest Margin down 26% 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 $52,456 $38,964 $38,127 $33,364 $30
Slide 32: 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 3.3% of cost (almost 3x higher than Saratoga) Non-Accruals at Cost 3.5% 3.3% 3.0% 2.5% 2.5% 2.0% 1.5% 1.2% 1.0% 0.5% 0.0% SAR BDC Mean BDC