PennantPark Floating Rate Capital Ltd.
- Open
- 7.38
- Day high
- 7.53
- Day low
- 7.33
- Prev close
- 7.39
- Volume
- 870K
- Mkt cap
- $743M
- P/E (TTM)
- 14.7
- EPS (TTM)
- $0.51
- P/B
- 0.7
- P/S
- 3.2
- Yield
- 15.66%
- Per share
- $1.17
PennantPark Floating Rate Capital Ltd. (PFLT) is a Financial Services company listed on NYSE. The stock is down 26% over the past year. Drillr has 1 published research article covering PFLT.
PennantPark Floating Rate Capital Ltd. (PFLT) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PFLT earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 11, 2026 | $0.27 | $0.26 | -2.7% | $66M | -1.4% |
| May 8, 2026 | $0.28 | $0.27 | -3.6% | $66M | -4.1% |
| Nov 24, 2025 | $0.29 | $0.28 | -1.9% | $47M | -30.8% |
| Nov 25, 2024 | $0.32 | $0.32 | +0.7% | $110M | +111.9% |
| Feb 7, 2024 | $0.31 | $0.33 | +6.5% | $24M | -30.8% |
| Nov 15, 2023 | $0.30 | $0.32 | +6.7% | $29M | -14.9% |
| Feb 8, 2023 | $0.30 | $0.30 | -0.3% | — | — |
| Nov 16, 2022 | $0.30 | $0.29 | -3.3% | $10M | -65.9% |
| Aug 3, 2022 | $0.29 | $0.29 | +0.0% | $14M | -44.0% |
| May 4, 2022 | $0.28 | $0.29 | +3.6% | $12M | -50.1% |
| Feb 9, 2022 | $0.28 | $0.33 | +17.9% | $17M | -22.1% |
| Nov 17, 2021 | $0.28 | $0.28 | +0.0% | $7M | -66.0% |
PFLT insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 12, 2026 | Briones Jose Adirector | Buy | 5,770 | $8.67 |
| Mar 12, 2026 | Allorto Richard T JRofficer: CFO and Treasurer | Buy | 15,000 | $8.15 |
| Feb 23, 2026 | Briones Jose Adirector | Buy | 5,895 | $8.48 |
| Dec 3, 2025 | Briones Jose Adirector | Buy | 5,500 | $9.10 |
| May 23, 2025 | Briones Jose Adirector | Buy | 1,480 | $10.13 |
| May 16, 2025 | Briones Jose Adirector | Buy | 9,840 | $10.15 |
| Jun 11, 2024 | Briones Jose Adirector | Buy | 1,745 | $11.40 |
| Jun 3, 2024 | Allorto Richard T JRofficer: CFO and Treasurer | Buy | 10,000 | $11.30 |
| Jun 3, 2024 | Briones Jose Adirector | Buy | 885 | $11.33 |
| May 17, 2024 | Briones Jose Adirector | Buy | 1,740 | $11.48 |
| Dec 21, 2020 | KATZ SAMUEL Ldirector | Sell | 8,929 | $10.54 |
| Dec 21, 2020 | KATZ SAMUEL Ldirector | Sell | 8,618 | $10.41 |
| Dec 17, 2020 | KATZ SAMUEL Ldirector | Sell | 17,700 | $10.87 |
| Dec 17, 2020 | KATZ SAMUEL Ldirector | Sell | 7,453 | $10.65 |
| Dec 15, 2020 | KATZ SAMUEL Ldirector | Sell | 6,563 | $10.84 |
Source: PFLT SEC Form 4 filings, latest May 12, 2026. For informational purposes only — not investment advice.
See the full PFLT insider & 13F page →PennantPark Floating Rate Capital Ltd. company profile
Overview
PennantPark Floating Rate Capital Ltd. (NASDAQ:PFLT) is a business development company that was founded in 2011 and went public on April 8, 2011. The company operates as a specialty finance firm focused on providing debt and equity capital to middle-market companies in the United States. PFLT is structured as a closed-end investment company that elects to be treated as a business development company under the Investment Company Act of 1940, which allows it to invest in private companies and provide shareholders with access to middle-market lending opportunities that are typically unavailable to individual investors.
Business
PennantPark Floating Rate Capital operates in the business development company (BDC) sector, which is a specialized segment of the asset management industry. BDCs are publicly traded investment vehicles that provide capital to small and mid-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves making floating rate loans to middle-market companies, which are businesses with annual earnings before interest, taxes, depreciation, and amortization (EBITDA) typically ranging from $10 million to $50 million. These loans have interest rates that adjust with market conditions, primarily tied to the Secured Overnight Financing Rate (SOFR), which helps protect against interest rate risk in rising rate environments. PFLT's investment portfolio consists of several components. Approximately 88-90% of the portfolio is comprised of first lien senior secured debt, which represents the most senior position in a company's capital structure and provides the highest recovery priority in case of default. Less than 1% consists of second lien or subordinated debt, which carries higher risk but potentially higher returns. The remaining 9-12% includes equity investments, both through direct equity stakes and through PennantPark Senior Secured Loan Fund (PSSL), a joint venture that allows PFLT to co-invest alongside institutional partners. The company focuses on five key industry sectors: business services, consumer goods and services, government services and defense contracting, healthcare, and software technology. This diversification helps mitigate concentration risk while targeting sectors with predictable cash flows and defensive characteristics. PFLT typically makes investments ranging from $2 million to $50 million per transaction, with the portfolio currently valued at approximately $2.3 billion across over 125 companies.
Revenue model
PennantPark Floating Rate Capital generates revenue primarily through interest income from its loan portfolio and dividend income from equity investments. The company's floating rate loan structure means that as base interest rates rise, the interest income from its portfolio increases correspondingly, providing a natural hedge against rising rate environments. The company's primary customers are middle-market companies that need capital for various purposes including growth initiatives, acquisitions, refinancing, or recapitalizations. These companies typically work with private equity sponsors or are family-owned businesses that require more flexible financing solutions than traditional banks can provide. PFLT charges interest rates that currently average around SOFR plus 500-550 basis points, resulting in portfolio yields of approximately 9.9-11.5%. PFLT employs financial leverage to enhance returns, borrowing capital at lower rates through securitization vehicles and credit facilities and investing the proceeds at higher yields. The company maintains a debt-to-equity ratio of approximately 1.3x, with a target of 1.5x, allowing it to amplify returns while maintaining conservative leverage levels compared to regulatory maximums. Several factors influence the company's profitability margins. Rising interest rates generally benefit PFLT since its floating rate portfolio reprices upward while its fixed-rate debt remains constant. Credit quality is crucial, as defaults directly impact returns - the company maintains conservative underwriting standards with average debt-to-EBITDA ratios of 4.2x for portfolio companies. Market competition can compress loan spreads, though PFLT's focus on smaller middle-market companies provides some insulation from larger competitors. Economic conditions affect both deal flow and credit performance, with recessions potentially increasing defaults while also creating investment opportunities at attractive prices.
Competitive moat
PennantPark Floating Rate Capital operates in a competitive lending market with limited sustainable competitive advantages. The company's primary defensive characteristics stem from its specialized expertise in middle-market lending and established relationships with private equity sponsors and management teams. However, these advantages are relatively modest compared to businesses with stronger economic moats. The company's focus on the core middle-market segment ($10-50 million EBITDA companies) provides some protection from larger competitors who may find these deal sizes too small to be economically attractive. This market segment often requires more hands-on due diligence and ongoing monitoring, which favors experienced players like PFLT. Additionally, the company's track record of low historical losses (approximately 10 basis points annually) and conservative underwriting standards help maintain relationships with deal sources. However, the competitive threats are significant. Large banks, credit funds, and other BDCs all compete for similar opportunities, often with greater capital resources and potentially lower cost of funds. Direct lending platforms and private credit funds have grown substantially, increasing competition and compressing loan spreads by 50-75 basis points in recent years. The barrier to entry in middle-market lending is relatively low for well-capitalized competitors, and PFLT's investment approach can be replicated by others with sufficient resources and expertise. The company's joint venture structure through PSSL provides some competitive positioning by allowing larger deal participation and institutional partnerships, but this advantage is not unique or difficult to replicate. Overall, PFLT operates in a moderately competitive market with limited sustainable moats, relying primarily on execution excellence and relationship management rather than structural competitive advantages.
Risks & safety
PFLT demonstrates a moderate margin of safety with mixed financial health indicators: **Liquidity and Solvency:** - Strong cash position of $111 million with current ratio of 4.8x - Available capital exceeding $500 million through credit facilities and ATM program - Debt-to-equity ratio of 1.3x is conservative relative to 1.5x target and regulatory limits - No immediate solvency concerns given BDC structure and asset coverage requirements **Valuation Metrics:** - Price-to-book ratio of 0.86x suggests trading below net asset value - Price-to-earnings ratio of 6.3x appears reasonable for current earnings power - EV/EBITDA of 9.2x is moderate but less meaningful for investment company structure **Credit Quality Concerns:** - Non-accrual investments represent only 2.2% of portfolio at cost - Portfolio companies average 4.2x debt-to-EBITDA with 2.3x interest coverage - Historical loss rates of 10 basis points annually demonstrate conservative underwriting **Other Considerations:** - Negative operating cash flow of -$118 million reflects investment company structure (not operational weakness) - Interest rate sensitivity provides both opportunity and risk depending on rate direction - Regulatory requirements as BDC provide some downside protection through asset coverage tests
Recent development
Over the past few years, PFLT has executed several strategic initiatives to strengthen its market position and expand its investment capacity. The company has significantly grown its investment portfolio from approximately $1.2 billion in 2022 to $2.3 billion in 2025, representing nearly a doubling of assets under management through active deal origination and capital deployment. A key strategic development has been the expansion of the PennantPark Senior Secured Loan Fund (PSSL) joint venture, which has grown to over $900 million in assets. This partnership structure allows PFLT to participate in larger deals while sharing risk with institutional co-investors, effectively expanding the company's market reach and deal capacity beyond its own balance sheet constraints. The company has substantially enhanced its financing infrastructure through multiple initiatives. PFLT successfully completed a $361 million securitization financing and expanded its Truist revolving credit facility to $736 million with an extended maturity to 2027. These financing improvements provide greater flexibility and lower-cost funding sources to support portfolio growth. PFLT has also been active in capital raising activities, utilizing its at-the-market (ATM) equity program to raise $163 million in recent quarters at prices above net asset value. This opportunistic capital raising created what management describes as a "war chest" for future investment deployment, positioning the company to capitalize on market opportunities. The company has maintained its strategic focus on five core industry sectors - business services, consumer, government services/defense, healthcare, and software/technology - while continuing to emphasize first lien senior secured lending with conservative credit metrics. Recent quarters have shown successful portfolio company exits, including the Marketplace Events investment that generated a 2.6x multiple and 19% annualized return, demonstrating the company's ability to create value through its equity co-investments.
PFLT company profile · for informational purposes only — not investment advice.
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