GREENWICH, Conn., July 31, 2026 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQG) (NasdaqGS: OXSQH) (the "Company," "we," "us" or "our") announced today its financial results and related information for the quarter ended June 30, 2026.
--On July 29, 2026, our Board of Directors declared the following distributions on our common stock:
Month Ending Record Date Payment Date Amount Per Share
------------------ ------------------ ------------------ ----------------
October 31, 2026 October 16, 2026 October 30, 2026 $0.035
------------------ ------------------ ------------------ ----------------
November 30, 2026 November 16, 2026 November 30, 2026 $0.035
------------------ ------------------ ------------------ ----------------
December 31, 2026 December 17, 2026 December 31, 2026 $0.035
------------------ ------------------ ------------------ ----------------
-- Net asset value ("NAV") per share as of June 30, 2026 stood at $1.29,
compared with a NAV per share on March 31, 2026 of $1.32.
-- Net investment income ("NII") was approximately $5.1 million, or $0.05
per share, for the quarter ended June 30, 2026, compared with
approximately $4.1 million, or $0.05 per share, for the quarter ended
March 31, 2026.
-- Total investment income for the quarter ended June 30, 2026 amounted to
approximately $9.4 million, compared with approximately $8.9 million for
the quarter ended March 31, 2026.
-- For the quarter ended June 30, 2026 we recorded investment income
from our portfolio as follows:
-- $5.4 million from our debt investments;
-- $3.5 million from our CLO equity investments; and
-- $0.5 million from other income.
-- Our total expenses for the quarter ended June 30, 2026 were approximately
$4.3 million, compared with total expenses of approximately $4.8 million
for the quarter ended March 31, 2026.
-- As of June 30, 2026, the following metrics applied (note that none of
these metrics represented a total return to shareholders):
-- The weighted average yield of our debt investments was 14.9% at
current cost, compared with 14.7% as of March 31, 2026;
-- The weighted average effective yield of our CLO equity investments
at current cost was 8.1%, compared with 7.3% as of March 31, 2026;
-- The weighted average cash distribution yield of our cash income
producing senior secured note investments at current cost was 8.0%,
compared with 8.0% as of March 31, 2026; and
-- The weighted average cash distribution yield of our cash income
producing CLO equity investments at current cost was 12.4%,
compared with 13.6% as of March 31, 2026.
-- For the quarter ended June 30, 2026, we recorded a net increase in net
assets resulting from operations of approximately $4.0 million,
consisting of:
-- NII of approximately $5.1 million;
-- Net realized losses of approximately $5.2 million; and
-- Net unrealized appreciation of approximately $4.1 million.
-- During the second quarter of 2026, our investment activity consisted of
purchases of approximately $19.9 million and repayments of approximately
$0.5 million. No sales were made during the quarter.
-- Our weighted average credit rating was 2.1 based on total fair value and
2.2 based on total principal amount as of June 30, 2026, compared with a
weighted average credit rating of 2.2 based on total fair value and 2.4
based on total principal amount as of March 31, 2026.
-- As of June 30, 2026, our preferred equity investments in one of our
portfolio companies were on non-accrual status, which had an aggregate
fair value of approximately $6.9 million.
-- For the quarter ended June 30, 2026, we issued a total of approximately
11.3 million shares of common stock pursuant to an "at-the-market"
offering. After deducting the sales agent's commissions and offering
expenses, this resulted in net proceeds of approximately $17.8 million.
As of June 30, 2026, we had approximately 105.1 million shares of common
stock outstanding.
We will hold a conference call to discuss second quarter results today, Friday, July 31(st) , 2026 at 9:00 AM ET. The toll-free dial-in number is 1-800-715-9871, access code number 8149397. There will be a recording available for 30 days. If you are interested in hearing the recording, please dial 1-800-770-2030. The replay pass-code is 8149397#.
A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.oxfordsquarecapital.com.
OXFORD SQUARE CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES
June 30, December 31,
2026 2025
--------------------------------- -------------- ----------------
(Unaudited)
--------------------------------- -------------- ----------------
ASSETS
Non-affiliated/non-control
investments (cost:
$386,379,336 and $390,403,599,
respectively) $ 252,842,694 $ 251,731,345
Cash equivalents (cost of
$32,770,267 and $51,236,068,
respectively) 32,770,267 51,236,068
Cash 1,837,775 698,579
Interest and distributions
receivable 1,933,335 2,002,161
Other assets 1,220,982 1,070,958
------------ ------------
Total assets $ 290,605,053 $ 306,739,111
============ ============
LIABILITIES
Notes payable -- 5.50%
Unsecured Notes, net of
deferred issuance costs of
$804,888 and $996,075
respectively $ 79,695,112 $ 79,503,925
Notes payable -- 7.75%
Unsecured Notes, net of
deferred issuance costs of
$2,338,027 and $2,621,662
respectively 72,411,973 72,128,338
Accrued interest payable 1,703,438 1,703,438
Base Fee and Net Investment
Income Incentive Fee payable
to affiliate 961,643 1,036,058
Accrued expenses 804,942 1,017,581
Securities purchased not
settled -- 5,944,969
------------ ------------
Total liabilities 155,577,108 161,334,309
------------ ------------
NET ASSETS
Common stock, $0.01 par value,
300,000,000 shares authorized;
105,058,242 and 86,060,964
shares issued and outstanding,
respectively 1,050,583 860,610
Capital in excess of par value 553,787,659 523,040,484
Total distributable
earnings/(accumulated losses) (419,810,297) (378,496,292)
------------ ------------
Total net assets 135,027,945 145,404,802
------------ ------------
Total liabilities and net
assets $ 290,605,053 $ 306,739,111
============ ============
Net asset value per common share $ 1.29 $ 1.69
OXFORD SQUARE CAPITAL CORP.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Three Months Six Months Six Months
Ended June Ended June Ended June Ended
30, 2026 30, 2025 30, 2026 June 30, 2025
------------ ------------ ------------- ---------------
INVESTMENT INCOME
From non-affiliated/non-control
investments:
Interest income -- debt
investments(1) $ 4,535,789 $ 4,228,193 $ 8,854,539 $ 9,054,597
Interest income -- debt
investments -- payment-in-kind
("PIK")(1) 896,600 857,257 1,683,522 1,565,608
Income from securitization
vehicles and investments 3,508,746 3,855,072 6,732,944 7,811,125
Other income 460,958 581,659 1,073,766 1,251,901
---------- ---------- ----------- -----------
Total investment income from
non-affiliated/ non-control
investments 9,402,093 9,522,181 18,344,771 19,683,231
---------- ---------- ----------- -----------
Total investment income 9,402,093 9,522,181 18,344,771 19,683,231
---------- ---------- ----------- -----------
EXPENSES
Interest expense 2,793,880 1,929,045 5,585,135 3,888,332
Base Fee 961,643 1,036,312 1,952,274 2,095,097
Professional fees 441,487 444,251 788,114 767,703
Compensation expense 232,163 228,296 479,093 467,873
General and administrative 358,743 360,127 671,409 715,386
Excise tax (523,888) 24,585 (419,110) 145,401
---------- ---------- ----------- -----------
Total expenses before
incentive fees 4,264,028 4,022,616 9,056,915 8,079,792
---------- ---------- ----------- -----------
Net Investment Income Incentive
Fees -- -- -- --
Total incentive fees -- -- -- --
---------- ---------- ----------- -----------
Total expenses 4,264,028 4,022,616 9,056,915 8,079,792
---------- ---------- ----------- -----------
Net investment income 5,138,065 5,499,565 9,287,856 11,603,439
NET CHANGE IN UNREALIZED
APPRECIATION/(DEPRECIATION) AND
NET REALIZED LOSSES ON INVESTMENT
TRANSACTIONS
Net change in unrealized
appreciation/(depreciation) on
investments:
Non-Affiliate/non-control
investments 4,071,759 1,253,135 5,135,612 (813,761)
---------- ---------- ----------- -----------
Total net change in
unrealized
appreciation/(depreciation)
on investments 4,071,759 1,253,135 5,135,612 (813,761)
---------- ---------- ----------- -----------
Net realized losses:
Non-affiliated/non-control
investments (5,216,274) (2,321,562) (35,954,739) (14,480,057)
Extinguishment of debt -- (45,781) -- (45,781)
---------- ---------- ----------- -----------
Total net realized losses (5,216,274) (2,367,343) (35,954,739) (14,525,838)
---------- ---------- ----------- -----------
Net change in unrealized and
realized losses (1,144,515) (1,114,208) (30,819,127) (15,339,599)
---------- ---------- ----------- -----------
Net increase/(decrease) in net
assets resulting from operations $ 3,993,550 $ 4,385,357 $(21,531,271) $ (3,736,160)
========== ========== =========== ===========
Net increase in net assets
resulting from net investment
income per common share (Basic and
Diluted): $ 0.05 $ 0.08 $ 0.10 $ 0.16
Net increase/(decrease) in net
assets resulting from operations
per common share (Basic and
Diluted): $ 0.04 $ 0.06 $ (0.23) $ (0.05)
Weighted average shares of common
stock outstanding (Basic and
Diluted): 99,273,482 73,243,091 93,806,171 71,622,922
Distributions per share $ 0.105 $ 0.105 $ 0.210 $ 0.210
_______________________
(1) Change in prior period was made to conform to the current period presentation.
FINANCIAL HIGHLIGHTS (Unaudited)
Financial highlights for the three and six months ended June 30, 2026 and 2025, respectively, are as follows:
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2026 2025 2026 2025
---------------- --------------- ---------------- ---------------
Per Share Data
Net asset value at
beginning of period $ 1.32 $ 2.09 $ 1.69 $ 2.30
----------- ---------- ----------- ----------
Net investment
income(1) 0.05 0.08 0.10 0.16
Net realized and
unrealized
(losses)/gains(2) -- (0.02) (0.32) (0.21)
----------- ---------- ----------- ----------
Net
(decrease)/increase
in net asset value
from operations 0.05 0.06 (0.22) (0.05)
----------- ---------- ----------- ----------
Distributions per
share from net
investment
income(3) (0.11) (0.11) (0.21) (0.21)
Tax return of
capital
distributions(3) -- -- -- --
----------- ---------- ----------- ----------
Total distributions (0.11) (0.11) (0.21) (0.21)
Effect of shares
issued 0.03 0.02 0.03 0.02
----------- ---------- ----------- ----------
Net asset value at
end of period $ 1.29 $ 2.06 $ 1.29 $ 2.06
=========== ========== =========== ==========
Per share market
value at beginning
of period $ 1.77 $ 2.61 $ 1.76 $ 2.44
Per share market
value at end of
period $ 1.32 $ 2.23 $ 1.32 $ 2.23
Total return based on
Market Value(4) (19.75)% (10.49)% (14.23)% (0.30)%
Total return based on
Net Asset Value(5) 5.68% 3.59% (11.24)% (1.30)%
Shares outstanding at
end of period 105,058,242 76,236,738 105,058,242 76,236,738
Ratios/Supplemental
Data
--------------------
Net assets at end of
period (000's) $ 135,028 $ 157,423 $ 135,028 $ 157,423
Average net assets
(000's) $ 129,465 $ 152,126 $ 130,642 $ 152,806
Ratio of expenses to
average net
assets(6) 14.39% 10.78% 14.19% 10.62%
Ratio of expenses,
excluding interest
expense, to average
net assets(6) 5.76% 5.70% 5.64% 5.53%
Ratio of net
investment income to
average net
assets(6) 14.66% 14.26% 13.90% 15.15%
Portfolio turnover
rate(7) 0.19% --% 0.35% 6.40%
(1) (Represents per share net investment income for the
period, based upon weighted average shares outstanding.)
(2) Net realized and unrealized gains/(losses) include
rounding adjustments to reconcile change in net asset
value per share.
(3) Management monitors available taxable earnings, including
net investment income and realized capital gains,
to determine if a tax return of capital may occur
for the year. To the extent the Company's taxable
earnings fall below the total amount of the Company's
distributions for that fiscal year, a portion of those
distributions may be deemed a tax return of capital
to the Company's stockholders. The ultimate tax character
of the Company's earnings cannot be determined until
tax returns are prepared after the end of the fiscal
year. The amounts and sources of distributions reported
are only estimates (based on an average of the reported
tax character historically) and are not being provided
for U.S. tax reporting purposes. For each of the three-month
periods ended June 30, 2026 and 2025, distributions
were $0.105 per share and are presented as $0.11 per
share due to rounding.
(4) (Total return based on market value equals the increase
or decrease of ending market value over beginning
market value, plus distributions, divided by the beginning
market value, assuming distribution reinvestment prices
obtained under the Company's distribution reinvestment
plan. Total return is not annualized.)
(5) (Total return based on net asset value equals the
increase or decrease of ending net asset value over
beginning net asset value, plus distributions, divided
by the beginning net asset value. Total return is
not annualized.)
(6) (Annualized and adjusted for one-time excise tax reversals
in the current quarter.)
(7) (Portfolio turnover rate is calculated using the lesser
of the year-to-date investment sales and debt repayments
or year-to-date investment purchases over the average
of the total investments at fair value.)
About Oxford Square Capital Corp.
Oxford Square Capital Corp. is a publicly-traded business development company principally investing in syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation ("CLO") vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.
Forward-Looking Statements
This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.
Contact:
Bruce Rubin
203-983-5280