PNNT Stock: Dividend vs NII, NAV $6.56 and the PSLF Venture 2026

What PNNT is, and which filing is current

PNNT is a business development company (BDC), a company that lends to and invests in mid-sized private firms and pays out most of its income to shareholders; our explainer on BDCs covers the structure. It is externally managed by PennantPark Investment Advisers, which also advises the larger sister fund PennantPark Floating Rate Capital (PFLT), a private BDC (PennantPark Private Income Fund) and an interval fund, PennantPark Enhanced Income Fund, which appears in our interval fund list. A December 17, 2025 application to the SEC for co-investment relief names all four funds and would replace an October 2022 order (accession 0001193125-25-322955).

The fiscal year ends September 30, so the June 30, 2026 Form 10-Q (filed August 10, 2026) covers nine months. On October 6, 2026 the company said it will report the quarter and year ended September 30, 2026 on Monday, November 23, 2026 after the close, with a call on November 24. The last two 10-Ks were filed on November 24, 2025 and November 26, 2024. Every “current” figure below is as of June 30, 2026 unless it says otherwise. We have no share price after year-end September 30, 2025 from a primary source, so price comparisons use that date; check a live quote.

The dividend: $0.08 a month, now in two halves

Each month the company announces the next payment in an 8-K press release. From October 2025 to February 2026 it was $0.08 a share with no split. From the March 2026 declaration the release reads “comprised of a $0.04 per share base dividend and $0.04 per share supplemental dividend”, and has said so every month since.

The quarterly releases add up the same thing. For the quarter ended March 31, 2026 the company declared “base distributions of $0.20 per share, and supplemental distributions of $0.04 per share”; for June 30, 2026, $0.12 and $0.12. In dollars the quarter's $15.7 million of distributions was paid against NII of $8.9 million, 57% (our arithmetic). The October release says the distribution “is expected to be paid from taxable net investment income”; the filings do not say whether the supplemental part is meant to be permanent, and the next declaration, if the pattern holds, comes in the first days of November (the November 2025 one was on November 4).

Coverage, quarter by quarter and year by year

The table puts NII per share, the company's “core” NII (its non-GAAP figure that removes one-time items) and what was declared side by side for the last twelve quarters.

The December 2025 gap between NII and core NII is $0.03 of one-time costs of amending the Truist credit facility (the nine-month income statement shows $3.9 million of amendment costs). Total investment income fell from $34.3 million in the December 2023 quarter to $24.8 million in June 2026 (-28%, our arithmetic); the company's own reason is “a decrease in our total portfolio size and a decrease in our weighted average yield on debt investments”, and the yield on debt investments went from 13.0% at September 30, 2023 to 11.0% at June 30, 2026.

Fiscal 2023's reported NII of $1.00 compares with core NII of $0.84 for that year (Q4 FY2023 release). The tax notes in the fiscal 2025 10-K show what has been absorbing the shortfall: taxable income before the dividends-paid deduction was $47.9 million against $62.7 million of distributions declared, and undistributed net investment income on a tax basis fell from $66.0 million at September 30, 2024 to $45.9 million at September 30, 2025 ($0.70 a share, our arithmetic). All $62.7 million of fiscal 2025 distributions were ordinary income. The same table lists $336.6 million of long-term realized losses carried forward, $5.16 a share (our arithmetic). The tax character of fiscal 2026 distributions will be in the 10-K; we do not give tax advice.

NAV: $9.11 to $6.56

NAV per share was $9.11 at the start of fiscal 2019 and is $6.56 at June 30, 2026, 28.0% lower (our arithmetic). Over those years NII per share summed to $5.46 and distributions declared to $5.68 (our sums of the 10-K highlights and the 10-Q), so the shortfall of NII against payouts accounts for about $0.22 of the fall; the rest is realized and unrealized losses.

For the nine months to June 30, 2026 the arithmetic is simple: NAV of $7.11, plus NII of $0.39, minus $0.72 declared, minus $0.22 of net realized and unrealized loss ($14.1 million), gives $6.56 (our arithmetic; the pieces round). Inside that loss is a large swap: net realized gains of $70.6 million and net unrealized depreciation of $84.7 million. In December 2025 the company sold its equity in JF Intermediate for $67.5 million, a realized gain of $63.1 million. The company's note on the sale reads “This amount approximates the fair value of the investment as of September 30, 2025”, which we read as the sale price; the gain was therefore mostly a reclassification of a mark already in NAV, not new value.

At the year-end dates in the 10-K, the stock closed at 85.5% of NAV in 2023, 92.5% in 2024 and 94.4% in 2025. Share count has not moved: 65,296,094 shares since September 30, 2024. The $100 million at-the-market program signed June 4, 2024 stopped being usable on April 28, 2025, when its registration statement expired, and no shares were issued under it in the nine months to June 30, 2026 or 2025.

A third of the income is one joint venture: PSLF

PennantPark Senior Loan Fund, LLC is a joint venture formed in July 2020 between PNNT and Pantheon. It buys mostly first-lien loans, borrowing from banks and through three collateralized loan obligations, and is funded by PNNT and Pantheon in subordinated notes and equity in the same 55.8% / 44.2% split. All major decisions need both partners on a four-person committee. (The sister fund PFLT has its own, different joint ventures, PSSL and PSSL II.)

The nine-month PSLF income of $25.4 million is 100.7% of PNNT's nine-month NII of $25.2 million (our arithmetic): income from this one vehicle is about equal to everything the company keeps after interest, fees and expenses. The dividend income tracks PSLF's own earnings: PSLF's NII was $22.9 million in the nine months against $28.7 million a year earlier, and 55.8% of $22.9 million is $12.8 million (our arithmetic), which is the dividend line.

Two things follow. First, PNNT's regulatory debt-to-equity of 1.29x counts only PNNT's own borrowings; PSLF's debt sits outside it, and PNNT's stake in PSLF is a subordinated note layer and an equity layer on top of 2.8x leverage (our arithmetic). Second, PSLF is also an outlet: in the nine months to June 30, 2026 PNNT sold $203.4 million of loans to PSLF, 38.2% of its $532.1 million of sales and repayments; a year earlier $462.8 million of $749.0 million, 61.8% (our arithmetic from the Q3 FY2026 release). PSLF's term was extended in August 2024 from a January 31, 2025 expiry to indefinite, and the amended agreement lets a member ask to redeem its interests, to be honored within 18 months and in any case within three years.

What the portfolio is made of: 35% first lien, 23% Treasury bills, 23% equity

The Treasury bills are a quarter-end device. The 10-Q says the company may at quarter end invest in short-term securities to “preserve investment flexibility for the next quarter”, and on the balance sheet the $269.3 million of U.S. Government Securities is matched by a $269.3 million “payable for investment purchased”; the 10-Q defines asset coverage as total assets less liabilities not represented by senior securities, divided by the senior securities at par, and the base-fee calculation excludes Treasury bills. The effect is that the headline mix looks safer than it is; the last column strips them out. It also shows that equity peaked at 34% of the T-bill-free portfolio in June 2025 and is 29.8% now. The Q2 FY2026 release states the plan: “We remain focused on the plan to rotate out of our equity positions and redeploy that capital into debt investments which will drive growth in our core net investment income.”

Over nine months AKW's fair value rose by $24.5 million, PSLF's fell by $15.9 million, Pragmatic's by $5.7 million, and the JF Intermediate position (carried at $68.3 million) was sold. AKW's own statements show nine-month revenue of $77.6 million and a net loss of $8 thousand. Because AKW is a non-U.S. company and PSLF is treated as non-qualifying under the 1940 Act, the “qualifying assets” test matters: the company states it may not buy non-qualifying assets unless qualifying assets are at least 70% of total assets. That share was 79% at December 31, 2023, 77% a year later and 72% at June 30, 2026 (the 10-K for September 30, 2023 showed 93% for its own date, while the next year's 10-K shows 77% for the same date; the filings do not explain the difference).

Non-accruals: four names, one an affiliate

A loan goes on non-accrual when the company stops booking interest on it. At June 30, 2026 four companies were on non-accrual, 2.5% of the portfolio at cost and 0.8% at fair value. The footnoted names in the schedule of investments are Pragmatic Institute, STG Distribution, Kinetic Purchaser and Five Star Buyer; our sum of their cost is $31.0 million, which matches the 2.5% (our arithmetic).

At September 30, 2025 the four flagged were Atlas Purchaser, HV Watterson Holdings, PL Acquisitionco (partial PIK) and STG Distribution, so three of the four names changed in nine months. Payment-in-kind (PIK) interest, which is added to the loan instead of paid in cash, was $6.4 million of the nine months' $77.0 million of investment income, 8.3% (our arithmetic), against 6.3% in fiscal 2025, 6.7% in 2024 and 3.1% in 2023. For the market context see our census of BDC non-accruals.

Fees and interest: where $100 of income goes

PNNT pays its adviser a base fee of 1.50% a year on average adjusted gross assets (which exclude Treasury bills and cash), cut to 1.00% on gross assets above 200% of net assets, and an incentive fee of 17.5% of income above a 7.0% annualized hurdle, with a catch-up, plus 17.5% of net realized capital gains (N-2 filed September 16, 2026, accession 0001193125-26-393262).

Adviser fees of $5.4 million were 61% of NII in the quarter (our arithmetic), and the incentive fee was still $1.9 million with NII at 58% of the dividend: pre-incentive NII of about $10.7 million is 2.5% of net assets for the quarter, above the 1.75% quarterly hurdle (our arithmetic), and the hurdle is measured on net assets, not on the dividend. The weighted average cost of debt was 6.4% for the nine months against 6.1% a year earlier.

Debt: the November 1 notes and the new 8% paper

Asset coverage was 178% at June 30, 2026 against 163% at September 30, 2025 and the 150% minimum; the new note agreements carry the same minimum. The $165 million repayment on November 1 comes before the next filing. At June 30 the revolver had $223.5 million unused, so it could absorb it, but at the revolver's 5.9% each point of extra cost on $165 million is $1.65 million a year, about $0.025 a share (our arithmetic). The September notes are $64 million, well short of the $165 million. Whether the repayment is funded by the revolver, the new notes or asset sales is for the 10-K to show. Both the January and September note agreements carry registration rights that oblige the company to offer to exchange the notes for registered ones; a Form N-2 followed on September 16, 2026.

Controls: one material weakness and two 10-K amendments

The 10-K for September 30, 2025 says disclosure controls were not effective because of “a material weakness” in how the company reviewed “equity investment valuation with respect to the allocation of value of the portfolio company to the Company’s holdings”; management said the financial statements nonetheless present fairly. The three 10-Qs since (December, March, June) say remediation steps were taken and that disclosure controls “were effective”. Around it, the filings show a separate issue with the audit of a portfolio company: an 8-K/A of October 10, 2025 reports that the auditor of JF Holdings advised that the statements it filed with the fiscal 2024 10-K/A “should not be relied on”, without affecting PNNT's own financial statements. The company later filed a 10-K/A No. 1 on January 23, 2026 (to clarify what its auditor had audited) and a 10-K/A No. 2 on July 1, 2026 (audited financial statements of AKW Holdings).

PNNT and PFLT: same adviser, different funds

Both released June 30, 2026 results on August 10, 2026.

PNNT has the higher yield and the bigger equity book, and a coverage ratio that is 32 points lower. Our page on PFLT has that fund's own numbers; for the wider set see our BDC stocks list, where PNNT is the 33rd of 50 by net assets and its NAV change over four quarters is -10.9%, consistent with the $7.36 and $6.56 here. Other listed BDC pages on our site: Golub Capital BDC, Main Street and Prospect Capital.

What changed in the filings and what comes next

The latest filings are the October 6, 2026 8-K (results date) and the October 2 distribution release. Next: the 2026 Notes-2 maturity on November 1, the November distribution declaration, and on November 23 the earnings release and, within days, the 10-K. The numbers that settle the open questions: NII against $0.12 of base; whether supplemental stays at $0.04; NAV against $6.56 (the quarter had no one-time items in June); PSLF's income after its July 2026 refinancing of the 2035 debt, which the company says cut that debt's cost from SOFR + 2.66% to SOFR + 1.69%; the fate of the four non-accruals; and the 10-K's controls conclusion.

What a holder or reader can do with this

This is a checklist built from the filings, not a recommendation.

• Compare NII, not the headline dividend. The base alone is $0.12 a quarter; June NII was $0.14. The $0.04 supplemental is the part NII does not cover.
• Read the PSLF note in the 10-K before the yield. A third of income comes from one venture whose equity fell about 24% in nine months and whose yield is 9.5%.
• Look at the portfolio without the T-bills. First lien is 46%, equity 30%.
• Watch November 1. How the $165 million is replaced sets next year's interest line.
• Keep the dates straight. The NAV in a filing is as of quarter end; the next is for September 30, 2026, due November 23.
• Tax. All fiscal 2025 distributions were ordinary income; the split for the 2026 fiscal year is on your Form 1099-DIV. We do not give tax advice.

This is analysis of public documents, not investment, legal or tax advice. We do not give price targets or say whether to buy, sell or hold.

FAQ

All figures are from PennantPark Investment Corporation's SEC filings read on EDGAR on October 16, 2026 (CIK 1383414): the Forms 10-K for the years ended September 30, 2023, 2024 and 2025 (accessions 0000950170-23-068909, 0000950170-24-130670, 0001193125-25-293703); the Forms 10-Q for December 31, 2023 through June 30, 2026 (0000950170-24-012191, -24-055646, -24-092751, -25-017048, -25-069165, -25-106538, 0001193125-26-042780, -26-211879, -26-342350); the earnings releases (Exhibits 99.1 to the 8-Ks) from November 2023 to August 10, 2026 (0000950170-23-064179, 0001171843-24-000666 through 0001171843-26-005386); the monthly distribution releases from October 2025 to October 2, 2026; the 8-Ks of December 15, 2025 (0001193125-25-318545), January 30, 2026 (-26-031964), September 1, 2026 (-26-378418), January 16, 2026 (-26-015518), October 10, 2025 (8-K/A, -25-237068) and October 6, 2026 (0001171843-26-006461); the 10-K/A of January 23, 2026 (-26-021227) and July 1, 2026 (-26-292627); the Form 40-APP of December 17, 2025 (-25-322955) and the Form N-2 of September 16, 2026 (-26-393262); and, for PennantPark Floating Rate Capital (CIK 1504619), its August 10, 2026 release (0001171843-26-005387). Ratios, sums across quarters and shares of income are our arithmetic; “core NII” is the company's non-GAAP measure. This is analysis of public documents, not investment, legal or tax advice.