Dividend sustainability appears challenged as 2026Q4 distributions of $14.4 million exceeded the $9.0 million in operating cash flow, highlighting a reliance on capital recycling.
| Metric | TTM | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 |
|---|
| Cash from Operations | -26.09B | -88.03M | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -32.22M | -21.72M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| Operating CF Growth % | -81111.91% | -144.56% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 120.92% | -48.37% | 26.45% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
| Net Income | 22.67M | 36.6M | 28.09M | 8.93M | 24.68M | 45.74M | 14.78M | 55.74M | 18.51M | 17.68M | 11.39M | 11.65M | 11.01M | 8.5M | 14.04M | 13.28M | 16.96M | -10.46M | -21.32M | -5.45M | -130K |
| Depreciation & Amortization | 1.3B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.16M | 28.15M | 502.47K | 0 |
| Deferred Taxes | -20.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -27.38B | -125.74M | 167.64M | -159.99M | -148.29M | -259.33M | -66.6M | -80.08M | -57.4M | -49.04M | -6.18M | -42.54M | -33.76M | -49.86M | -59.24M | -14.64M | 7.14M | 20.01M | 26M | -157.16M | 0 |
| Working Capital Changes | -6.13M | 1.11M | 1.81M | -6.15M | -6.76M | 10.46M | -10.52M | 9.2M | -1.09M | 587.24K | 1.53M | -1.32M | 1.04M | 11.84M | 8.39M | -21.34M | 4.18M | 1.47M | 3.67M | -4.97M | 130K |
| Cash from Investing | -30.74B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -79.15B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 48.42B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -30.74B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 64.91B | -94.91M | -33.32M | 101.64M | 173.58M | 226.09M | 52.81M | -7.5M | 88.3M | 22.47M | 8.31M | 19.19M | 35.19M | 32.67M | 35.63M | 13.3M | -20.89M | -24.18M | -31.23M | 168.16M | 0 |
| Dividends Paid | -10.83B | -52.36M | -40.75M | -32.05M | -22.67M | -18.16M | -11.27M | -17M | -12.01M | -9.01M | -6.79M | -7.91M | -1.43M | -2.51M | -3.3M | -1.97M | -1.18M | -2.07M | -11.77M | -9.62M | 0 |
| Share Repurchases | 0 | -54.31K | 0 | -2.16M | -10.82M | -2.55M | -3.61M | 0 | 0 | 0 | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 12.83M | 19.32M | 35.35M | 49.01M | 0 | 26.84M | 0 | 85.9M | 32.15M | 7.84M | 0 | 0 | 0 | 0 | 0 | 0 | 15M | 0 | 0 | 108.75M | 0 |
| Net Stock Activity | 12.83M | 19.27M | 35.35M | 46.86M | -10.82M | 24.29M | -3.61M | 85.9M | 32.15M | 7.84M | -3.33M | -356.79K | 0 | 0 | 0 | 0 | 15M | 0 | 0 | 108.75M | 0 |
| Debt Issuance (Net) | -3M | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 0 |
| Other Financing | 75.78B | -6.88M | -1.43M | -5.17M | -10.68M | -10.79M | -3.44M | -1.95M | -4.18M | -1.36M | -3.23M | -1.1M | -1.97M | -2.82M | -1.37M | -235.45K | -2.22M | -103.58K | 0 | -8.2M | 0 |
| Net Change in Cash | 38.82B | -182.94M | 164.22M | -55.57M | 43.21M | 22.96M | -9.54M | -22.64M | 48.32M | -8.31M | 15.05M | -13.03M | 13.48M | 3.14M | -1.18M | -9.41M | 7.38M | -3M | 5.28M | 1.07M | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 21.79B | 204.72M | 40.51M | 96.08M | 52.87M | 29.92M | 39.45M | 62.09M | 13.78M | 22.09M | 7.03M | 20.06M | 6.59M | 149.03K | 1.33M | 10.74M | 3.35M | 6.36M | 1.07M | 1.03K | 0 |
| Cash at End | 60.81B | 21.79M | 204.72M | 40.51M | 96.08M | 52.87M | 29.92M | 39.45M | 62.09M | 13.78M | 22.09M | 7.03M | 20.06M | 3.29M | 149.03K | 1.33M | 10.74M | 3.35M | 6.36M | 1.07M | 0 |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 637.79K | 2.41M | 3.27M | 2.63M | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 140.32K | 88.95K | 0 | 0 |
| Free Cash Flow | -26.09B | -88.03M | 197.54M | -157.21M | -130.37M | -203.13M | -62.35M | -15.14M | -39.98M | -30.78M | 6.74M | -32.22M | -21.72M | -29.53M | -36.81M | -22.71M | 28.28M | 21.18M | 36.51M | -167.08M | 0 |
| FCF Growth % | -14781.19% | -144.56% | 225.66% | -20.58% | 35.82% | -225.81% | -311.67% | 62.12% | -29.9% | -556.65% | 120.92% | -48.37% | 26.45% | 19.78% | -62.09% | -180.31% | 33.53% | -42.01% | 121.85% | - | - |
Portfolio Valuation Volatility
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios fluctuating from -3.44 to 29.43, suggesting that reported earnings are frequently decoupled from the actual cash generation capabilities of the underlying investment portfolio.
The extreme variance in the OCF/NI ratio indicates that net income is heavily influenced by non-cash valuation adjustments rather than recurring interest income. Investors should interpret this disconnect as a signal that reported profitability may not reliably predict the company's ability to sustain its dividend distributions.
As reported in financial statements, SAJ's free cash flow trajectory remains highly unstable, swinging from a peak of $94.2 million in 2025Q3 to a deficit of $19.9 million in 2025Q4, which underscores the inherent unpredictability of cash flows in a BDC model reliant on portfolio exits.
The lack of a consistent FCF trend suggests that the company's liquidity is subject to the timing of investment realizations rather than steady-state operations. This volatility warrants further investigation into whether the current dividend payout levels are supported by sustainable cash inflows or temporary liquidity events.
Based on the quarterly cash flow data, working capital changes have been significant and inconsistent, ranging from a $7.2 million inflow in 2026Q1 to a $6.4 million outflow in 2026Q2, indicating that timing differences in interest collections and accruals are creating substantial noise in reported cash flows.
These fluctuations suggest that the company's operating cash flow is sensitive to the timing of interest payments from portfolio companies. Analysts should monitor these shifts closely, as they may obscure underlying credit deterioration or delays in the collection of contractual interest income.
Data from recent filings indicates that dividend payments have frequently exceeded operating cash flow, such as in 2026Q4 where $14.4 million was paid out against $9.0 million in OCF, suggesting that the company may be relying on capital recycling or external financing to maintain its distribution policy.
The persistent gap between cash outflows for dividends and operating cash generation raises questions regarding the long-term sustainability of the current payout. Investors should monitor whether this trend forces the company to increase leverage or dilute shareholders to fund its dividend obligations.
Quick answers to the most common questions about buying SAJ stock.
Saratoga Investment Corp 8.00% (SAJ) generated $-88.0M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Saratoga Investment Corp 8.00% (SAJ) reported negative free cash flow of $88.0M in 2026, indicating capital requirements exceeded cash from operations.
Saratoga Investment Corp 8.00% (SAJ) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Saratoga Investment Corp 8.00% (SAJ) returned $52.4M to shareholders via cash dividends and spent $0.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.