Stellus Capital Investment (SCM) investor relations material

Executive summary

• Reported Q2 2026 net investment income of $7.5 million ($0.26 per share), down from $9.6 million ($0.34 per share) in Q2 2025, with a portfolio at fair value of $968 million across 116 companies.

• Net increase in net assets from operations was $16.2 million ($0.56 per share), up from $10.1 million ($0.36 per share) year-over-year, driven by higher unrealized appreciation.

• Portfolio composition: 89% first lien debt, 10% equity, with disciplined credit performance and focus on capital preservation.

• Announced alignment of the quarterly dividend to $0.25 per share and declared monthly dividends of $0.0833 per share for July–September 2026.

• Stellus Capital Management was acquired by Ridgepost Capital, enhancing origination opportunities and sponsor relationships.

Financial highlights

• Q2 2026 investment income was $22.3 million, down from $25.7 million in Q2 2025; net investment income for the six months was $15.0 million ($0.52/share).

• Net asset value per share was $12.80 at June 30, 2026, nearly unchanged from $12.82 at year-end 2025.

• Net realized losses for the six months were ($6.5 million), with net unrealized appreciation of $9.4 million.

• Distributions declared for the six months were $0.68 per share.

• Paid $349 million in dividends since IPO, totaling $18.83 per share.

Outlook and guidance

• Management notes ongoing macroeconomic uncertainty due to labor shortages, inflation, interest rate fluctuations, and geopolitical instability.

• Portfolio quality remains stable, with 74% of investments rated on or ahead of plan.

• Dividend set at $0.25 per share for Q3, with expectations to cover or exceed this level moving forward.

• No material changes to risk factors or guidance for the remainder of 2026.

• Origination activity expected to pick up in the second half of the year, with seasonality and improving sponsor activity.