Financial Analysis

Note 9. Commitments and Contingencies Contractual Obligations The following table shows our payment obligations for repayment of debt and other contractual obligations at May 31, 2026: Payment Due by Period Long-Term Debt Obligations Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years ($ in thousands) Valley Bank credit facility $ 32,500 $ - $ 32,500 $ - $ - Live Oak credit facility 37,500 37,500 - - - SBA debentures 213,000 - - 99,000 114,000 4.35% 2027 Notes 75,000 75,000 - - - 6.00% 2027 Notes 105,500 105,500 - - - 6.25% 2027 Notes 15,000 - 15,000 - - 8.00% 2027 Notes 46,000 - 46,000 - - 8.125% 2027 Notes 60,375 - 60,375 - - 8.5% 2028 Notes 57,500 - 57,500 - - 7.25% 2029 Notes 25,000 - 25,000 - - 7.25% 2030 Notes 50,000 - - 50,000 - 7.50% 2031 Notes 100,000 - - 100,000 - Total Long-Term Debt Obligations $ 817,375 $ 218,000 $ 236,375 $ 249,000 $ 114,000 Off-Balance Sheet Arrangements As of May 31, 2026 and February 28, 2026, the Companys off-balance sheet arrangements consisted of $185.2 million and $153.1 million, respectively, of unfunded commitments outstanding to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the Companys discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the Companys consolidated statements of assets and liabilities and are no …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 8. Borrowings As a BDC, we are only allowed to employ leverage to the extent that our asset coverage, as defined in the 1940 Act, equals at least 200% after giving effect to such leverage, or, 150% if certain requirements under the 1940 Act are met. On April 16, 2018, as permitted by the Small Business Credit Availability Act, which was signed into law on March 23, 2018, our board of directors, including a majority of our directors who are not interested persons (as defined in Section 2(a)(19) of the 1940 Act) of the Company (independent directors), approved a minimum asset coverage ratio of 150%, which became effective on April 16, 2019. The amount of leverage that we employ at any time depends on our assessment of the market and other factors at the time of any proposed borrowing. Our asset coverage ratio, as defined in the 1940 Act, was 162.6% as of May 31, 2026 and 168.4% as of February 28, 2026. During the three months ended May 31, 2026 and May 31, 2025, average total borrowings outstanding was $796.7 million and $792.8 million, respectively, and the weighted average interest rate was 6.13% and 5.58%, respectively. Encina Credit Facility On October 4, 2021, the Company entered into the Credit and Security Agreement (as amended from time to time, the Encina Credit Agreement) relating to a senior secured revolving credit facility (the Encina Credit Facility) with Encina Lender Finance, LLC (Encina), supported by loans held by SIF II and pledged to the Encina Credit F …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 6. Income Taxes SIA-AAP, Inc., SIA-SAIS, Inc., SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-G4, Inc., SIA-GH, Inc., SIA-MDP, Inc., SIA-PP Inc., SIA-SIQ, Inc., SIA-SZ, Inc., SIA-TG, Inc., SIA-TT Inc., and SIA-Vector, Inc., each of which is 100% owned by the Company, and each files a standalone C corporation tax return for U.S. federal and state tax purposes. As separately regarded entities for tax purposes, these entities are subject to U.S. federal income tax at corporate rates. For tax purposes, any distributions by the entities to the parent company would generally need to be distributed to the Companys shareholders. Generally, such distributions of the entities income to the Companys shareholders will be considered qualified dividends for tax purposes. The entities taxable net income will differ from U.S. GAAP net income because of deferred tax temporary differences arising from net operating losses and unrealized appreciation and depreciation of securities held. Deferred tax assets and liabilities are measured using enacted corporate federal and state tax rates expected to apply to taxable income in the years in which those net operating losses are utilized and the unrealized gains and losses are realized. Deferred tax assets and deferred tax liabilities are offset by entity, as permitted. The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred ta …

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Recent Accounting Pronouncements In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires additional disclosure of the nature of expenses included in the income statement in response to requests from investors for more information about an entitys expenses. The new standard requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. The new guidance is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of the new standard on the Companys consolidated financial statements and related disclosures and does not believe it will have a material impact on its consolidated financial statements or its disclosures. …

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Note 7. Agreements and Related Party Transactions Investment Advisory and Management Agreement On July 30, 2010, the Company entered into the Management Agreement with the Manager. The initial term of the Management Agreement was two years from its effective date, with one-year renewals thereafter subject to certain approvals by the Companys board of directors and/or the Companys stockholders. Most recently, on July 6, 2026, the Companys board of directors approved the renewal of the Management Agreement for an additional one-year term. Pursuant to the Management Agreement, the Manager implements the Companys business strategy on a day-to-day basis and performs certain services for the Company, subject to oversight by the board of directors. The Manager is responsible for, among other duties, determining investment criteria, sourcing, analyzing and executing investments transactions, asset sales, financings and performing asset management duties. Under the Management Agreement, the Company pays the Manager a management fee for investment advisory and management services consisting of a base management fee and an incentive management fee. Base Management Fee and Incentive Management Fee The base management fee of 1.75% per year is calculated based on the average value of our gross assets (other than cash or cash equivalents, but including assets purchased with borrowed funds) at the end of the two most recently completed fiscal quarters. The base management fee is paid quarter …

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Note 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in conformity with U.S. generally accepted accounting principles (U.S. GAAP), are stated in U.S. Dollars and include the accounts of the Company and its wholly owned special purpose financing subsidiaries, SIF II, SIF III, SBIC II LP, SBIC III LP, SIA-AAP, Inc., SIA-SAIS, Inc., SIA-ARC, Inc., SIA-Avionte, Inc., SIA-AX, Inc., SIA-G4, Inc., SIA-GH, Inc., SIA-MDP, Inc., SIA-PP, Inc., SIA-SIQ, Inc., SIA-SZ, Inc., SIA-TG, Inc., SIA-TT Inc., and SIA-Vector, Inc. All intercompany accounts and transactions have been eliminated in consolidation. All references made to the Company, we, and us herein include Saratoga Investment Corp. and its consolidated subsidiaries, except as stated otherwise. The Company, SIF II, SIF III, SBIC II LP, and SBIC III LP are all considered to be investment companies for financial reporting purposes and have applied the guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 946, Financial ServicesInvestment Companies (ASC 946). There have been no changes to the Company, SIF II, SIF III, SBIC II LP, or SBIC III LPs status as investment companies in accordance with ASC 946 during the three months ended May 31, 2026. Principles of Consolidation Under the investment company rules and regulations pursuant to ASC 946, the Company is prec …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Note 11. Stockholders Equity Share Repurchases On September 24, 2014, the Company announced the approval of an open market share repurchase plan that originally allowed it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published consolidated financial statements (the Share Repurchase Plan). Since September 24, 2014, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan, most recently to 1.7 million shares of common stock. On January 6, 2026, the Companys board of directors extended the Share Repurchase Plan for another year to January 15, 2027. As of May 31, 2026, the Company purchased 1,037,698 shares of common stock, at the average price of $22.05 for approximately $22.9 million pursuant to the Share Repurchase Plan. During the three months ended May 31, 2026, the Company did not purchase any shares of common stock pursuant to the Share Repurchase Plan. Public Equity Offering On July 13, 2018, the Company issued 1,150,000 shares of its common stock priced at $25.00 per share (par value $0.001 per share) at an aggregate total of $28.75 million. The net proceeds, after deducting underwriting commissions of $1.15 million and offering costs of approximately $0.2 million, amounted to approximately $27.4 million. The Company also granted the underwriters a 30-day option to purcha …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 15. Subsequent Events On June 11, 2026, the Company declared the following dividends for the quarter ending August 31, 2026. Shareholders have the option to receive payment of the dividend in cash, or receive shares of common stock, pursuant to the DRIP. Month Amount per Share Record Date Payment Date June 2026 $ 0.25 July 6, 2026 July 23, 2026 July 2026 $ 0.25 August 5, 2026 August 25, 2026 August 2026 $ 0.25 September 3, 2026 September 23, 2026

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