Stellus Capital Investment Corporation filed its Form 10-Q for the quarterly period ended September 30, 2026 with the SEC on November 9, 2026, reporting a net decrease in net assets from operations of $6,373,879 for the third quarter.

Key Highlights

  • Net asset value per share declined to $12.40 as of September 30, 2026, from $12.82 as of December 31, 2025, according to the filing.
  • Total investment income for the three months ended September 30, 2026 was $22,396,449, compared with $26,275,709 for the same period in 2025.
  • Net investment income per share (basic and diluted) was $0.25 for the third quarter of 2026, down from $0.32 in the third quarter of 2025.
  • Total assets stood at $973,883,225 as of September 30, 2026, versus $1,041,252,306 as of December 31, 2025.
  • Shares outstanding as of November 9, 2026 were 28,179,374, down from 28,947,254 as of December 31, 2025.
  • Net assets totaled $349,332,611 as of September 30, 2026, compared with $371,178,956 as of December 31, 2025.

Stellus Capital's Third-Quarter 2026 Financial Results and Balance Sheet Position

According to the filing, Stellus Capital Investment Corporation (NYSE:SCM) reported total investment income of $22,396,449 for the three months ended September 30, 2026, a decrease from $26,275,709 in the comparable prior-year quarter. For the nine months ended September 30, 2026, total investment income was $67,992,255, compared with $76,923,969 for the nine months ended September 30, 2025. Interest income from non-controlled, non-affiliated investments accounted for the largest share of revenues in both periods.

Net investment income for the third quarter of 2026 was $7,159,413, compared with $9,135,441 for the same quarter of 2025. Total operating expenses, net of fee waivers, were $15,237,036 for the three months ended September 30, 2026. The filing notes that there were no income incentive fee waivers in the third quarter of 2026, while waivers of $471,251 and $49,644 reduced expenses in the third quarter of 2025 and the nine-month period ended September 30, 2026, respectively. Net realized and unrealized losses, including a net change in unrealized depreciation on non-controlled, non-affiliated investments of $(7,243,749) and on controlled investments of $(2,807,606) for the quarter, contributed to a net decrease in net assets resulting from operations of $6,373,879, or $(0.22) per share (basic and diluted), for the three months ended September 30, 2026.

On the balance sheet, total liabilities as of September 30, 2026 were $624,550,614, including $257,459,825 in SBA-guaranteed debentures, $227,901,577 on the credit facility, and $123,038,555 in 2030 Notes Payable. Total distributable loss widened to $(41,932,122) from $(26,679,784) at December 31, 2025. The weighted average shares of common stock outstanding for the nine months ended September 30, 2026 were 28,758,889 (basic and diluted), the filing disclosed.

What Was Disclosed

Stellus Capital Investment Corporation filed its unaudited quarterly report for the period ended September 30, 2026, disclosing a decline in total investment income, net asset value per share, and net assets compared with year-end 2025, alongside a net decrease in net assets from operations for the quarter.