Shares of Prospect Capital Corp (NASDAQ:PSEC) plummeted by 10.9% on Thursday, November 8, 2024, following the release of the company's fiscal first-quarter results. The steep decline in the stock price was primarily driven by Prospect Capital's disappointing financial performance and the announcement of a significant cut to its quarterly distribution.

For the quarter ended September 30, 2024, the business development company reported a net loss of $134 million, or $0.38 per share, a stark contrast from the net income of $0.23 per share in the same period last year. This substantial loss missed analysts' expectations and weighed heavily on investor sentiment.

Even when excluding investment costs, Prospect Capital's adjusted earnings of $0.21 per share fell short of market estimates, further exacerbating the negative sentiment. While the company's revenue of $196.3 million for the quarter exceeded some analysts' projections, it was still lower compared to the previous year's figure, indicating potential challenges in maintaining top-line growth.