OFS Capital (OFS) investor relations material

Executive summary

• Net investment income for Q2 2026 was $0.08 per share, down from $0.18 per share in Q1, reflecting the absence of a large non-recurring dividend and net interest margin compression.

• Net asset value (NAV) per share increased to $8.41 from $8.16, driven by strong performance of the equity investment in Pfanstiehl and net unrealized appreciation.

• Total investment income for Q2 2026 was $6.8 million, down from $8.9 million in the prior quarter, mainly due to lower interest and dividend income.

• Non-accrual loans represented $21.4 million, or 7.2% of total investments at fair value as of June 30, 2026.

• A quarterly distribution of $0.17 per share was declared for Q3 2026.

Financial highlights

• Net investment income totaled $1 million, or $0.08 per share, a $0.10 per share decline quarter-over-quarter.

• Net gain on investments for Q2 2026 was $4.6 million, with $10.6 million in unrealized appreciation (primarily from Pfanstiehl Holdings, Inc.) offset by $6.0 million in realized losses.

• Total investment income for the six months ended June 30, 2026, was $15.7 million, down from $20.8 million for the same period in 2025.

• Total expenses decreased by 9% to $5.8 million, mainly from lower incentive fees and interest expense.

• Quarterly distribution maintained at $0.17 per share, representing a 19.2% annualized yield.

Outlook and guidance

• Asset coverage ratio was 161% as of June 30, 2026, above the 150% regulatory minimum.

• Focus shifting toward redeploying capital into new income-generating investments following balance sheet strengthening.

• Management expects to maintain sufficient liquidity to support portfolio companies and meet unfunded commitments.

• Expectation to drive higher net investment income while maintaining disciplined underwriting standards.

• Forward-looking statements caution about risks and uncertainties that may impact future results.