SARATOGA INVESTMENT CORP. Earnings Per Share Disclosure
Note 12. Earnings Per Share
In accordance with the provisions of FASB ASC Topic 260, Earnings per Share, basic earnings per share is computed by dividing earnings available to common shareholders by the weighted average number of shares outstanding during the period. Other potentially dilutive common shares, and the related impact to earnings, are considered when calculating earnings per share on a diluted basis.
The following information sets forth the computation of the weighted average basic and diluted net increase in net assets resulting from operations per share for the years ended February 28, 2026, February 28, 2025 and February 29, 2024 (dollars in thousands except share and per share amounts):
| Basic and Diluted | February 28, 2026 | February 28, 2025 | February 29, 2024 | |||||||||
| Net increase in net assets resulting from operations | $ | 36,604 | $ | 28,086 | $ | 8,934 | ||||||
| Weighted average common shares outstanding | 15,850,270 | 13,912,170 | 12,670,939 | |||||||||
| Weighted average earnings per common share | $ | 2.31 | $ | 2.02 | $ | 0.71 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 5, 2026 | Showing above |
| 2025 | May 7, 2025 | |
| 2024 | May 6, 2024 | |
| 2023 | May 2, 2023 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.