Stellus Capital Investment Corporation filed its third-quarter 2026 financial results on November 9, 2026, covering the fiscal quarter ended September 30, 2026, reporting net investment income of $0.25 per share and a portfolio at fair value of $966.1 million.

Key Highlights

  • Net investment income: $7.16 million, or $0.25 per share, for the three months ended September 30, 2026, compared with $9.14 million, or $0.32 per share, in the same period of 2025.
  • Core net investment income: $7.47 million, or $0.26 per share, for the third quarter of 2026, a non-U.S. GAAP measure that excludes capital gains incentive fees and income taxes.
  • Portfolio at fair value: $966.1 million as of September 30, 2026, down from $1,007.6 million as of December 31, 2025.
  • Net asset value per share: $12.40 as of September 30, 2026, compared with $12.82 as of December 31, 2025.
  • Share repurchases: 493,537 shares repurchased at an average price of $8.36 per share during the quarter, described by the CEO as "accretive to NAV by approximately $0.08 per share during the third quarter."
  • Distributions declared: $0.25 per share in aggregate for the three months ended September 30, 2026, totaling $7.1 million.
  • New investments: $37.8 million funded during the quarter, with $30.3 million in repayments received.

Stellus Capital Q3 2026 Operating Results and Portfolio Update

According to the filing, investment income for the three months ended September 30, 2026 totaled $22.4 million, down from $26.3 million in the same period of 2025, with most coming from interest income on portfolio investments. Gross operating expenses for the quarter were $15.2 million, compared with $17.6 million a year earlier. Base management fees were $4.3 million, income incentive fees were $0.5 million, and fees and expenses related to borrowings totaled $8.3 million. The company reported that it waived $0.0 million of income incentive fees for the third quarter of 2026, resulting in net operating expenses of $15.2 million.

The filing disclosed a net change in unrealized depreciation of ($13.5) million on the investment portfolio for the three months ended September 30, 2026, contributing to a net decrease in net assets resulting from operations of ($6.4) million, or ($0.22) per common share, based on 28,465,675 weighted average shares outstanding. For the nine months ended September 30, 2026, net investment income was $22.19 million, or $0.77 per share, and total realized income was $15.67 million, or $0.54 per share.

Regarding liquidity, the company reported that its senior secured revolving credit facility provided for borrowings of up to $335.0 million on a committed basis as of September 30, 2026, with an accordion feature allowing potential expansion up to $365.0 million. Outstanding borrowings under the credit facility stood at $230.6 million as of September 30, 2026, compared with $236.6 million as of December 31, 2025. The portfolio included 119 portfolio company investments as of September 30, 2026, up from 115 as of December 31, 2025. The weighted average yield of total investments was 8.5% as of September 30, 2026, compared with 8.7% as of December 31, 2025.

What Was Disclosed

Stellus Capital Investment Corporation (NYSE:SCM) reported third-quarter 2026 results showing net investment income of $0.25 per share, a portfolio fair value of $966.1 million, NAV per share of $12.40, and 493,537 shares repurchased at an average of $8.36 per share.