Oxford Lane Capital (OXLC) Q2 2026 earnings summary

Executive summary

• Net asset value (NAV) per share was $19.19 as of September 30, 2025, down from $20.60 in the prior quarter, reflecting a one-for-five reverse stock split adjustment.

• GAAP net investment income for the quarter was $81.4 million ($0.84/share), up from $75.1 million ($0.80/share) in the prior quarter; core net investment income was $120.0 million ($1.24/share), up from $112.4 million ($1.19/share).

• Total investment income for the quarter was $128.3 million, up $4.3 million from the previous quarter.

• Net decrease in net assets from operations was $5.3 million ($0.05/share), due to NII, net realized losses, and net unrealized depreciation.

• The investment portfolio is heavily concentrated in CLO equity, representing 99% of holdings by fair value.

Financial highlights

• Weighted average yield of CLO debt investments at cost increased to 17.4% from 16.9% sequentially.

• Weighted average effective yield of CLO equity investments at cost was 14.6%, slightly down from 14.7% last quarter.

• Weighted average cash distribution yield of CLO equity investments at cost was 19.4%, down from 21.6% last quarter.

• $366 million in newly issued or acquired CLO equity investments had not yet made initial distributions as of quarter-end.

• Total fair value of investments was $2,599.6 million, down from $2,754.0 million in the prior quarter.

Outlook and guidance

• Monthly common stock distributions of $0.40 per share were declared for January, February, and March 2026.

• Management remains open to increasing leverage if market opportunities warrant, but no specific target leverage ratio is set.

• About half of the $366 million in new CLO investments are expected to make first payments next quarter, with the remainder the following quarter.

• Management notes that past performance is not indicative of future results and highlights the uncertainty of achieving projected returns due to market and economic factors.

• Forward-looking statements are subject to risks, including market volatility and the performance of underlying CLO assets.