Stellus Capital Investment (SCM) investor relations material

Executive summary

• Reported fourth quarter and full-year 2025 results, with net investment income of $8.4 million ($0.29 per share) for Q4 and $36.9 million ($1.30 per share) for the year, highlighting stable asset quality and a focus on lower middle-market private equity-backed lending.

• Announced a $20 million share repurchase program and the planned acquisition of the investment advisor by Ridgepost Capital, with current partners retaining operational control and closing expected mid-2026.

• Portfolio remains diversified across 24 industry sectors, with no direct exposure to large-scale SaaS or oil and gas.

• Investors have received $333 million in distributions since inception, equivalent to $18.27 per share.

Financial highlights

• Generated $0.29 per share of GAAP and Core Net Investment Income in Q4 2025; net realized income per share was $0.48 for Q4 and $1.34 for the year.

• Q4 2025 investment income was $25.2 million, with gross operating expenses of $17.5 million.

• Net asset value per share decreased to $12.82 at year-end, down from $13.46 a year earlier, due to dividend payments exceeding earnings and net realized losses.

• Paid $333 million in dividends since IPO, equating to $18.27 per share.

• Weighted average yield of debt and other income-producing investments was 9.3% at year-end.

Outlook and guidance

• Portfolio expected to remain at or slightly below $996 million in Q1 2026 due to slower M&A activity.

• Declared Q1 2026 dividend of $0.34 per share, with plans to maintain this level in Q2, subject to board approval.

• Regular monthly dividends of $0.1133 per share were declared for January, February, and March 2026.

• Anticipates increased investment opportunities post-Ridgepost Capital transaction in the second half of 2026.

• Management highlighted the ability to repurchase shares under the $20 million program, citing market volatility and potential undervaluation.