HOUSTON, May 11, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation $(SCM)$ ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended March 31, 2026.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended March 31, 2026, in which we earned U.S. GAAP net investment income of $0.26 per share, core net investment income of $0.27 per share and net realized income of $0.29 per share. During the quarter, we funded $28 million of investments and received $42 million of repayments, resulting in a total portfolio of $990 million at fair value. I'm also pleased to report that our investors have received a total of $339 million in distributions, equivalent to $18.49 per share, since we began operations."
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended
---------------------------------------
March 31, 2026 March 31, 2025
Amount Per Share Amount Per Share
------ ---------- ------- ----------
Net investment income $7.50 $0.26 $9.79 $0.35
Core net investment income(1) 7.86 0.27 10.29 0.37
Net realized gain (loss) on
investments 0.75 0.03 (5.97) (0.21)
Net realized gain (loss) on foreign
currency translation -- -- (0.03) --
Total realized income(2) $8.25 $0.29 $3.79 $0.14
Distributions (9.84) (0.34) (11.09) (0.40)
Net unrealized change in
(depreciation) appreciation on
investments (6.54) (0.23) 1.20 0.04
Net unrealized change in
depreciation on foreign currency
translation (0.05) -- -- --
Net increase in net assets
resulting from operations $1.66 $0.06 $4.99 $0.18
Weighted average shares outstanding 28,947,254 27,602,612
(1) Core net investment income, as presented, excludes the impact of capital
gains incentive fees (reversal) and income taxes, the majority of which
are excise taxes. The Company believes presenting core net investment
income and the related per share amount is a useful supplemental
disclosure for analyzing its financial performance. However, core net
investment income is a non-U.S. GAAP measure and should not be considered
as a replacement for net investment income and other earnings measures
presented in accordance with U.S. GAAP. A reconciliation of net
investment income in accordance with U.S. GAAP to core net investment
income is presented in the table below the financial statements.
(2) Total realized income is the sum of net investment income, net realized
gains (losses) on investments, net realized gains (losses) on foreign
currency, and losses on debt extinguishment, all U.S. GAAP measures.
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of As of
March 31, 2026 December 31, 2025
-------------- -----------------
Investments at fair value $990.0 $1,007.6
Total assets $1,001.3 $1,041.3
Net assets $363.0 $371.2
Shares outstanding 28,947,254 28,947,254
Net asset value per share $12.54 $12.82
Three Months Ended
---------------------------------
March 31, 2026 March 31, 2025
-------------- -----------------
New investments $27.7 $55.4
Repayments of investments (41.7) (15.0)
-------------- -----------------
Net activity ($14.0) $40.4
As of As of
March 31, 2026 December 31, 2025
-------------- -----------------
Number of portfolio company investments 116 115
Number of debt investments 100 100
Weighted average yield of debt and
other income producing investments
(3)
Cash 8.1 % 8.5 %
Payment-in-kind ("PIK") 0.6 % 0.5 %
Fee amortization 0.3 % 0.3 %
-------------- -----------------
Total 9.0 % 9.3 %
Weighted average yield of total
investments(4)
Cash 7.6 % 7.9 %
PIK 0.6 % 0.5 %
Fee amortization 0.3 % 0.3 %
-------------- -----------------
Total 8.5 % 8.7 %
(3) The dollar-weighted average annualized effective yield is computed using
the effective interest rate for our debt investments and other income
producing investments, including cash and PIK interest, as well as the
accretion of deferred fees. The individual investment yields are then
weighted by the respective cost of the investments (as of the date
presented) in calculating the weighted average effective yield of the
portfolio. The dollar-weighted average annualized yield on the Company's
investments for a given period will generally be higher than what
investors in the Company's common stock would realize in a return over
the same period because the dollar-weighted average annualized yield does
not reflect the Company's expenses or any sales load that may be paid by
investors.
(4) The dollar-weighted average yield on total investments takes the same
yields as calculated in the footnote above but weights them to determine
the weighted average effective yield as a percentage of the Company's
total investments, including non-income producing equity positions and
debt investments on non-accrual status.
Results of Operations
Investment income for the three months ended March 31, 2026 and 2025 totaled $23.3 million and $25.0 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended March 31, 2026 and 2025 totaled $15.8 million and $16.4 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $4.1 million, income incentive fees totaled $0.1 million and $2.1 million, fees and expenses related to our borrowings totaled $8.9 million and $8.3 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.4 million, income tax totaled $0.4 million and $0.5 million and other expenses totaled $1.4 million and $1.0 million. The Company waived $0.0 million and $1.2 million of income incentive fees due to the total return limitation pursuant to the provisions of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended March 31, 2026 and 2025, respectively, for net operating expenses of $15.8 million and $15.2 million, respectively.
Net investment income was $7.5 million and $9.8 million, or $0.26 and $0.35 per common share based on 28,947,254 and 27,602,612 weighted average common shares outstanding for the three months ended March 31, 2026 and 2025, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended March 31, 2026 and 2025 was $7.9 million and $10.3 million, or $0.27 and $0.37 per share, respectively.
For the three months ended March 31, 2026 and 2025, the Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($6.5) million and $1.2 million, respectively, and the Company had net realized gains (losses) of $0.8 million and ($6.0) million, respectively.
Net increase in net assets resulting from operations totaled $1.7 million and $5.0 million, or $0.06 and $0.18 per common share, based on 28,947,254 and 27,602,612 weighted average common shares outstanding for the three months ended March 31, 2026 and 2025, respectively.
Liquidity and Capital Resources
As of March 31, 2026, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of both March 31, 2026 and December 31, 2025, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million.
As of March 31, 2026 and December 31, 2025, the Company had $241.5 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.
Distributions
For the three months ended March 31, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share, respectively ($9.8 million and $11.1 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended March 31, 2026:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- --------- ------------ ---------------- ----------- ----------
Provider of
content,
information,
tech-enabled
services, and
hosts
competitions Senior
Bart & for the U.S. Secured --
Add-On January 2, Associates, equine First
Investment 2026 LLC* industry $ 2,000,000 Lien
$ 43,413 Equity
New January 9, Silver Senior-care $ 7,130,301 Senior
Investment 2026 Corporate focused Secured --
Holdings placement First
LLC platform Lien
$ 100,000 Revolver
Commitment
$ 498,641 Equity
Add-On January GRC Java Specialty $ 42,783 Equity
Investment 15, 2026 Holdings, coffee
LLC* platform
Add-On January EH Real Offers $ 380,186 Senior
Investment 20, 2026 Estate residential Secured --
Services, property First
LLC* brokerage, Lien
title &
settlement,
and property
and casualty
insurance
brokerage
services to
home buyers
and sellers
Add-On January evolv Holdco, Digital $ 8,036 Equity
Investment 21, 2026 LLC* transformatio
n consulting
firm
Add-On February BI Investors, Provider of $ 5,743 Equity
Investment 2, 2026 LLC* center-based
applied
behavioral
analysis
therapy
services
Add-On February Green Topco Cyber-security $ 16,598 Equity
Investment 3, 2026 Holdings, focused
LLC* value-added
reseller and
associated
service
provider
Add-On February Venbrook An independent $ 628,201 Senior
Investment 3, 2026 Buyer, LLC* insurance Secured --
services First
broker Lien
Add-On February SP MWM Holdco Provider of $ 194,667 Equity
Investment 6, 2026 LLC* test and
measurement
services and
equipment
Add-On February EH Real Offers $ 190,093 Senior
Investment 18, 2026 Estate residential Secured --
Services, property First
LLC* brokerage, Lien
title &
settlement,
and property
and casualty
insurance
brokerage
services to
home buyers
and sellers
Add-On February Venbrook An independent $ 1,256,415 Senior
Investment 25, 2026 Buyer, LLC* insurance Secured --
services First
broker Lien
Add-On March 3, EH Real Offers $ 190,093 Senior
Investment 2026 Estate residential Secured --
Services, property First
LLC* brokerage, Lien
title &
settlement,
and property
and casualty
insurance
brokerage
services to
home buyers
and sellers
New March 3, Precision Strategic $ 6,176,011 Senior
Investment 2026 Strategies, communication Secured --
LLC s and First
marketing Lien
agency
$ 100,000 Revolver
Commitment
New March 6, Synergy Provider of $ 4,000,000 Senior
Investment 2026 Health orthopedic Secured --
Partners and First
MSO, LLC musculoskelet Lien
al care
$ 500,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 136,634 Equity
Add-On March 24, Eskola LLC* Provider of $ 101,429 Equity
Investment 2026 commercial
re-roofing
services
_________________________
*Existing portfolio company
The Company realized investments in the following portfolio companies during the three months ended March 31, 2026:
Activity Company Proceeds Realized Instrument
Type Date Name Company Description Received Gain Type
------------ --------- ----------- -------------------------- ----------- --------- -----------
Provider of digital
Camp marketing services to Senior
Full January Profiles small and medium-sized Secured --
Repayment 23, 2026 LLC businesses $12,041,875 $ -- First Lien
Full Realization $ 969,138 $ 719,138 Equity
Manufacturer and
distributor of
Luxium high-performance advanc Senior
Full January Solutions, ed materials and Secured --
Repayment 30, 2026 LLC assemblies $ 8,169,324 $ -- First Lien
Delayed
Draw Term
$ 1,182,247 $ -- Loan
Cyber-security focused
value-added reseller Senior
Full February and associated service Secured --
Repayment 3, 2026 Arctiq, Inc. provider $12,202,671 $ -- First Lien
Delayed
Draw Term
$ 399,965 $ -- Loan
Events Subsequent to March 31, 2026
The Company's management has evaluated subsequent events through May 11, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to March 31, 2026:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ------ --------------- -------------- ----------- -----------
Offers
residential
property
brokerage,
title &
settlement,
and
property
and
casualty
insurance
brokerage
services to
April home buyers Senior
Add-On 1, EH Real Estate and Secured --
Investment 2026 Services, LLC* sellers $ 190,093 First Lien
New April VeloSource Locum tenens $ 200,000 Senior
Investment 3, Purchaser, LLC staffing Secured --
2026 agency First Lien
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 18,605 Equity
Add-On April Venbrook Buyer, An $ 1,256,415 Senior
Investment 13, LLC* independent Secured --
2026 insurance First Lien
services
broker
New April Solomon An $ 4,196,557 Senior
Investment 13, AcquisitionCo, innovative Secured --
2026 LLC process First Lien
automation
and digital
systems
integrator
$ 100,000 Revolver
Commitment
$ 186,807 Equity
New April Project Freeze** Manufacturer $ 4,000,000 Senior
Investment 27, of walk-in Secured --
2026 coolers, First Lien
freezers,
and
refrigerati
on systems
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 324,074 Equity
Add-On April Venbrook Buyer, An $ 502,566 Senior
Investment 28, LLC* independent Secured --
2026 insurance First Lien
services
broker
Add-On April Advanced Barrier Manufacturer $ 330,250 Senior
Investment 28, Extrusions, of flexible Secured --
2026 LLC* packaging First Lien
_________________________ *Existing portfolio company ** The name of this
portfolio company is not disclosed at this time due to confidentiality
restrictions. The name of this portfolio company will be disclosed in the
Company's quarterly report for the quarter ending June 30, 2026.
The Company realized investments in the following portfolio companies subsequent to March 31, 2026:
Activity Company Company Proceeds Realized Instrument
Type Date Name Description Received Loss Type
------------ ------ ---------- -------------- ----------- ---------- -----------
Provider of
revenue
growth
management
consulting
services
for private
Sales equity-owne
April Benchmark d and large Senior
Full 17, Index, enterprise Secured --
Repayment 2026 LLC clients $11,968,656 $ -- First Lien
Revolver
$ 443,820 $ -- Commitment
Full Realization $ 486,925 (178,805) Equity
Provider of
equine
competition
s, content,
April Equine products, Senior
Full 24, Network, and Secured --
Repayment 2026 LLC services $ 9,043,164 $ -- First Lien
Delayed
Draw Term
Loan
$ 97,900 $ -- Commitment
Revolver
$ 166,667 $ -- Commitment
Manufacturer
of
single-use
April Cerebro electrodes Senior
Full 30, Buyer, for medical Secured --
Repayment 2026 LLC procedures $ 4,526,683 $ -- First Lien
Delayed
Draw Term
Loan
$ 376,902 $ -- Commitment
Credit Facility
The outstanding balance under the Credit Facility as of May 11, 2026 was $238.4 million.
Distributions Declared
On April 14, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of April 2026, May 2026, and June 2026 as follows:
Ex-Dividend Record Payment Amount per
Declared Date Date Date Share
---------- ------------ ---------- ---------- ------------
5/15/20
4/14/2026 4/30/2026 4/30/2026 26 $ 0.1133
6/15/20
4/14/2026 5/29/2026 5/29/2026 26 $ 0.1133
7/15/20
4/14/2026 6/30/2026 6/30/2026 26 $ 0.1133
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, May 12, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 108816. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, May 20, 2026 by dialing (877) 481-4010 and entering passcode 54017. The replay will also be available on the Company's website.
For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
March 31, 2026 December 31, 2025
-------------- -------------------
ASSETS
Controlled investments, at fair
value (amortized cost of
$34,432,893 and $33,603,521,
respectively) $ 12,237,127 $ 14,953,132
Non-controlled, affiliated
investments, at fair value
(amortized cost of $4,878,960
and $4,806,660, respectively) 3,378,350 3,750,674
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $976,006,465
and $987,729,505,
respectively) 974,379,087 988,919,589
Cash and cash equivalents 3,376,525 25,050,156
Receivable for sales and
repayments of investments 492,000 581,509
Interest receivable 6,611,848 6,375,996
Income tax receivable -- 1,385,387
Other receivables 149,189 85,000
Related party receivable -- 20
Deferred offering costs 75,000 --
Prepaid expenses 574,127 150,843
------------- ---------------
Total Assets $1,001,273,253 $ 1,041,252,306
------------- ---------------
LIABILITIES
Notes Payable $ 122,758,915 $ 122,671,409
Credit Facility payable 238,276,659 233,167,360
SBA-guaranteed debentures 257,151,049 295,984,063
Dividends payable 3,279,724 3,858,669
Management fees payable 4,392,357 4,442,705
Income incentive fees payable 2,413,077 2,317,429
Interest payable 5,729,215 6,138,076
Related party payable 2,335,513 --
Unearned revenue 539,630 582,007
Administrative services payable 579,529 539,338
Income tax payable 93,492 --
Other accrued expenses and
liabilities 728,572 372,294
------------- ---------------
Total Liabilities $ 638,277,732 $ 670,073,350
------------- ---------------
Commitments and contingencies
(Note 7)
------------- ---------------
Net Assets $ 362,995,521 $ 371,178,956
============= ===============
NET ASSETS
Common stock, par value $0.001
per share (100,000,000 shares
authorized; 28,947,254 and
28,947,254 shares issued and
outstanding, respectively) $ 28,947 $ 28,947
Paid-in capital 397,829,793 397,829,793
Total distributable loss (34,863,219) (26,679,784)
------------- ---------------
Net Assets $ 362,995,521 $ 371,178,956
------------- ---------------
Total Liabilities and Net Assets $1,001,273,253 $ 1,041,252,306
------------- ---------------
Net Asset Value Per Share $ 12.54 $ 12.82
============= ===============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the three months ended
----------------------------------
March 31, 2026 March 31, 2025
---------------- ----------------
INVESTMENT INCOME
From non-controlled, affiliated
investments
Interest income $ 45 $ --
Payment-in-kind interest income 72,300 --
From non-controlled, non-affiliated
investments
Interest income 20,578,575 20,817,005
Payment-in-kind interest income 1,602,087 3,310,111
Other income 1,039,927 824,542
------------ ------------
Total Investment Income $ 23,292,934 $ 24,951,658
------------ ------------
OPERATING EXPENSES
Management fees $ 4,392,357 $ 4,054,726
Valuation fees 166,119 157,889
Administrative services expenses 649,120 449,298
Income incentive fees 106,709 2,136,491
Professional fees 817,727 418,031
Directors' fees 129,250 111,250
Insurance expense 93,056 97,090
Interest expense and other fees 8,851,541 8,263,019
Income tax expense 360,471 499,547
Other general and administrative
expenses 239,617 218,351
------------ ------------
Total Operating Expenses $ 15,805,967 $ 16,405,692
Income incentive fee waiver (11,061) (1,242,843)
------------ ------------
Total Operating Expenses, net of fee
waivers $ 15,794,906 $ 15,162,849
------------ ------------
Net Investment Income $ 7,498,028 $ 9,788,809
------------ ------------
Net realized gain (loss) on
non-controlled, non-affiliated
investments $ 750,410 $ (5,967,221)
Net realized gain (loss) on foreign
currency translations 3,664 (29,655)
Net change in unrealized
(depreciation) appreciation on
controlled investments (3,545,377) 55,276
Net change in unrealized
depreciation on non-controlled,
affiliated investments (444,624) --
Net change in unrealized
(depreciation) appreciation on
non-controlled, non-affiliated
investments (2,558,345) 1,138,017
Net change in unrealized
(depreciation) appreciation on
foreign currency translations (48,020) 8,319
------------ ------------
Net Increase in Net Assets Resulting
from Operations $ 1,655,736 $ 4,993,545
============ ============
Net Investment Income Per
Share--basic and diluted $ 0.26 $ 0.35
============ ============
Net Increase in Net Assets Resulting
from Operations Per Share -- basic
and diluted $ 0.06 $ 0.18
============ ============
Weighted Average Shares of Common
Stock Outstanding--basic and
diluted 28,947,254 27,602,612
============ ============
Distributions Per Share--basic and
diluted $ 0.34 $ 0.40
============ ============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
Common Stock Total
-------------------
Number Par Paid-in distributable
of shares value capital (loss) Net Assets
---------- ------- ------------ ------------- -------------
Balances at
December 31, 2024 27,481,118 $27,481 $379,549,272 $ (9,654,813) $ 369,921,940
Net investment
income -- -- -- 9,788,809 9,788,809
Net realized loss
on investments -- -- -- (5,967,221) (5,967,221)
Net realized loss
on foreign
currency
translations -- -- -- (29,655) (29,655)
Net change in
unrealized
appreciation on
investments -- -- -- 1,193,293 1,193,293
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- 8,319 8,319
Distributions from
net investment
income -- -- -- (11,087,389) (11,087,389)
Issuance of common
stock, net of
offering costs(1) 656,085 656 8,937,430 -- 8,938,086
---------- ------ ----------- ------------ ------------
Balances at March
31, 2025 28,137,203 $28,137 $388,486,702 $(15,748,657) $ 372,766,182
========== ====== =========== ============ ============
Balances at
December 31, 2025 28,947,254 $28,947 $397,829,793 $(26,679,784) $ 371,178,956
========== ====== =========== ============ ============
Net investment
income -- -- -- 7,498,028 7,498,028
Net realized gain
on investments -- -- -- 750,410 750,410
Net realized gain
on foreign
currency
translation -- -- -- 3,664 3,664
Net change in
unrealized
depreciation on
investments -- -- -- (6,548,346) (6,548,346)
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (48,020) (48,020)
Distributions from
net investment
income -- -- -- (9,839,171) (9,839,171)
---------- ------ ----------- ------------ ------------
Balances at
March 31, 2026 28,947,254 $28,947 $397,829,793 $(34,863,219) $ 362,995,521
========== ====== =========== ============ ============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the three months ended
----------------------------------
March 31, 2026 March 31, 2025
---------------- ----------------
Cash Flows from Operating Activities
Net increase in net assets resulting
from operations $ 1,655,736 $ 4,993,545
Adjustments to reconcile net
increase in net assets from
operations to net cash used in
operating activities:
Purchases of investments (27,664,251) (55,415,263)
Proceeds from sales and repayments of
investments 41,713,484 14,986,423
Net change in unrealized depreciation
(appreciation) on investments 6,548,346 (1,193,293)
Net change in unrealized depreciation
(appreciation) on foreign currency
translations 48,020 (8,319)
Increase in investments due to
payment-in-kind income (1,674,387) (976,479)
Amortization of premium and accretion
of discount, net (713,561) (715,755)
Amortization of loan structure fees 254,298 315,618
Amortization of deferred financing
costs 134,684 110,150
Amortization of discount on Notes
Payable 33,248 --
Amortization of premium on Notes
Payable (30,426) --
Amortization of loan fees on
SBA-guaranteed debentures 166,986 188,984
Net realized (gain) loss on
investments (750,410) 5,967,221
Changes in other assets and
liabilities
Increase in interest receivable (235,852) (1,281,507)
Decrease (increase) in income tax
receivable 1,385,387 (1,081,760)
Increase in other receivables (64,189) (20,755)
Decrease in related party receivables 20 3,687
(Increase) decrease in prepaid
expenses (423,284) 90,313
(Decrease) increase in management
fees payable (50,348) 20,617
Increase (decrease) in income
incentive fees payable 95,648 (1,458,054)
Increase (decrease) in administrative
services payable 40,191 (12,990)
Decrease in interest payable (408,861) (3,788,915)
Increase in related party payable 2,335,513 1,290,893
(Decrease) increase in unearned
revenue (42,377) 72,177
Increase in income tax payable 93,492 --
Increase in other accrued expenses
and liabilities 356,278 989,436
------------ ------------
Net Cash Provided by (Used in)
Operating Activities $ 22,803,385 $ (36,924,026)
------------ ------------
Cash Flows from Financing Activities
Proceeds from the issuance of common
stock $ -- $ 9,256,982
Sales load for common stock issued -- (138,908)
Offering costs paid for common stock
issued (75,000) (179,988)
Stockholder distributions paid (10,418,116) (10,999,933)
Financing costs paid on Notes
Payable (50,000) --
Repayments of SBA-guaranteed
debentures (39,000,000) (16,250,000)
Borrowings under Credit Facility 58,100,000 67,700,000
Repayments of Credit Facility (53,033,900) (21,633,900)
------------ ------------
Net Cash (Used in) Provided by
Financing Activities $ (44,477,016) $ 27,754,253
------------ ------------
Net Decrease in Cash and Cash
Equivalents $ (21,673,631) $ (9,169,773)
------------ ------------
Cash and Cash Equivalents Balance at
Beginning of Period $ 25,050,156 $ 20,058,594
------------ ------------
Cash and Cash Equivalents Balance at
End of Period $ 3,376,525 $ 10,888,821
============ ============
Supplemental and Non-Cash Activities
Cash paid for interest expense $ 8,701,862 $ 11,437,182
Income and excise tax refund, net (1,118,408) 1,581,307
Exchange of investments 1,999,529 1,663,301
Reconciliation of Core Net Investment Income(1)
(Unaudited)
Three Months Ended
------------------------------
March 31, 2026 March 31, 2025
-------------- --------------
Net investment income $7,498,028 $9,788,809
Income tax expense 360,471 499,547
-------------- --------------
Core net investment income $7,858,499 $10,288,356
============== ==============
Per share amounts:
Net investment income per share $0.26 $0.35
Core net investment income per share $0.27 $0.37
Reconciliation of Realized Net Investment Income(2)
(Unaudited)
Three Months Ended
------------------------------
March 31, 2026 March 31, 2025
-------------- --------------
Net investment income $7,498,028 $9,788,809
Net realized gain (loss) on investments 750,410 (5,967,221)
Net realized gain on foreign currency
translation 3,664 (29,655)
-------------- --------------
Total realized net investment income $8,252,102 $3,791,933
============== ==============
Per share amounts:
Net investment income per share $0.26 $0.35
Realized net investment income per share $0.29 $0.14
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SOURCE Stellus Capital Investment Corporation
(END) Dow Jones Newswires
May 11, 2026 16:47 ET (20:47 GMT)