Oxford Square Capital (OXSQ) Q1 2025 earnings summary

Executive summary

• Net asset value per share declined to $2.09 from $2.30 at December 31, 2024, reflecting realized and unrealized losses.

• Net investment income was $6.1 million ($0.09 per share), nearly flat compared to the prior quarter.

• Total investment income for Q1 2025 was $10.2 million, consistent with the prior quarter.

• Distributions of $0.105 per share were paid for the quarter, and monthly distributions of $0.035 per share were declared for July, August, and September 2025.

• Investment portfolio fair value decreased to $243.2 million from $260.9 million, driven by repayments, sales, and net losses.

Financial highlights

• Net realized losses totaled $12.2 million, and net unrealized depreciation was $2.1 million for the quarter.

• Net decrease in net assets from operations was $8.1 million, or $0.12 per share.

• Weighted average yield on debt investments was 14.3%, down from 15.8% in Q4 2024.

• Non-accrual investments at fair value decreased to $3.9 million from $5.1 million sequentially.

• Cash and cash equivalents increased to $37.3 million from $34.9 million sequentially.

Outlook and guidance

• Board declared monthly distributions of $0.035 per share for July, August, and September 2025.

• Management expects continued focus on corporate debt and CLO investments, with portfolio diversification and risk management as priorities.

• CLO equity expected to make initial distributions by 6/30/25, 9/30/25, and 12/31/25, supporting future income.

• Weighted average cash distribution yield of debt investments at current cost was 12.2%.

• Forward-looking statements caution about risks and uncertainties affecting future results.