Oxford Lane Capital (OXLC) Q3 2026 earnings summary

Executive summary

• Net asset value per share declined to $15.51 as of December 31, 2025, from $19.19 in the prior quarter, with a year-over-year drop from $24.10.

• GAAP net investment income for the quarter was $71.8 million ($0.74/share), down from $0.84/share in the previous quarter and $1.01/share a year ago.

• Core net investment income was $108.9 million ($1.12/share), compared to $1.24/share in the previous quarter and $1.40/share a year ago.

• Net decrease in net assets from operations was $240.7 million ($2.47/share), including $7.0 million in net realized losses and $305.4 million in net unrealized depreciation.

• Portfolio was 99% CLO equity by fair value at quarter end, with 294 investments.

Financial highlights

• Total investment income for the quarter was $117.8 million, down $10.5 million sequentially.

• Investment income from CLO equity and warehouse investments was $114.3 million; from CLO debt and other income, $3.5 million.

• Weighted average yield of CLO debt investments at cost was 17.3%, down from 17.4% last quarter.

• Weighted average effective yield of CLO equity investments at cost was 13.8%, down from 14.6%.

• Weighted average cash distribution yield of CLO equity investments was 19.0%, down from 19.4%.

Outlook and guidance

• Board declared monthly distributions of $0.20/share for April, May, and June 2026.

• Distribution reduction aims to support stable or growing NAV and maintain RIC status by distributing at least 90% of taxable income annually.

• Special dividends or distribution adjustments possible to comply with RIC requirements, based on fiscal year ending March.

• Management notes that forward-looking statements are subject to risks and actual results may differ materially.