Key Highlights

  • Net asset value per share was USD 1.21 at September 30, compared with USD 1.29 at June 30.
  • Net Investment income was about USD 4.9 million, or USD 0.04 per share, versus USD 0.05 in the second quarter.
  • Total investment income rose to USD 9.9 million from USD 9.4 million, while expenses increased to USD 5.0 million.
  • The board declared monthly distributions of USD 0.015 per share for January, February and March 2027.

Net Asset Value Declines

Oxford Square Capital Corp. (NASDAQ:OXSQ) reported net asset value of USD 1.21 per share at September 30, 2026, down from USD 1.29 at June 30. Net investment income was about USD 4.9 million, or USD 0.04 per share, compared with USD 5.1 million, or USD 0.05, in the prior quarter.

The net increase in net Assets from operations was about USD 1.6 million, made up of net investment income of USD 4.9 million, net realized losses of USD 11.3 million and net unrealized appreciation of USD 7.9 million. Net realized losses outweighed unrealized appreciation, so the net increase in net assets was well below net investment income.

Income and Expenses

Total investment income was about USD 9.9 million, including USD 5.6 million from Debt investments, USD 3.6 million from CLO Equity investments and USD 0.6 million of other income. Debt investments contributed about 57% of total investment income and CLO equity about 36%. Total expenses were about USD 5.0 million versus USD 4.3 million in the second quarter. The company noted that none of its Yield metrics represent a total return to shareholders.

Portfolio Metrics

The weighted average yield on debt investments was 15.0% at current cost, versus 14.9% at June 30. The weighted average effective yield on CLO equity investments was 8.1%, roughly unchanged, while the cash distribution yield on CLO equity investments was 12.0%, down from 12.4%. The cash distribution yield on income-producing senior secured notes was 8.1%, up from 8.0%.

Purchases totaled about USD 20.8 million and repayments about USD 10.3 million, with no sales. The weighted average Credit rating was 2.2 by fair value, compared with 2.1 at June 30, and 2.3 by principal amount versus 2.2 at June 30. Preferred equity in one portfolio company, with a Fair Value of about USD 6.8 million, was on non-accrual status.

Capital Raising and Distribution Schedule

The company issued about 14.1 million shares through its at-the-market program, generating net proceeds of about USD 19.4 million, and had roughly 120.0 million shares outstanding, so the issuance equals about 12% of shares outstanding at quarter end. The record dates are January 15, February 12 and March 17. The board declared USD 0.015 per share for months ending January 31, February 28 and March 31, 2027, payable on January 29, February 26 and March 31.

Items to follow include the direction of net asset value per share, net investment income coverage of the monthly distribution and the status of the non-accrual preferred equity position. Net investment income of USD 0.04 per share compares with USD 0.045 of distributions declared per quarter at the monthly rate.