Shares of Prospect Capital Corp (PSEC) plummeted in pre-market trading on Thursday, following the release of the company's fiscal first-quarter results for the period ended September 2024. The business development company reported a significant loss and weaker-than-expected earnings, weighing on investor sentiment.

PSEC posted a net loss of $134 million, or $0.38 per share, in the quarter, a disappointing performance compared to analysts' expectations. The company's adjusted earnings, which exclude investment costs, came in at $0.21 per share, falling short of market estimates.

Despite the disappointing bottom-line figures, Prospect Capital reported revenue of $196.3 million for the quarter, highlighting the company's ability to generate top-line growth. However, investors appeared to be more focused on the company's profitability, sending shares down sharply in pre-market trading.