Oxford Square Capital (OXSQ) Q2 2025 earnings summary

Executive summary

• Net asset value per share declined to $2.06 as of June 30, 2025, from $2.09 in the prior quarter and $2.43 a year ago, reflecting realized losses and net unrealized depreciation.

• Net investment income for Q2 2025 was $5.5 million ($0.08 per share), down from $6.1 million ($0.09 per share) in the prior quarter and $7.7 million ($0.13 per share) in Q2 2024.

• Total investment income for Q2 2025 was $9.5 million, down from $10.2 million in the prior quarter and $11.4 million in Q2 2024.

• Distributions of $0.105 per share were paid in Q2 2025, with $0.035 per share declared for October, November, and December 2025.

• Portfolio fair value was $241.5 million at June 30, 2025, with 57 portfolio investments.

Financial highlights

• Net realized losses on investments were $2.4 million in Q2 2025, a significant improvement from $14.5 million for the six months ended June 30, 2025.

• Net unrealized gains on investments were $1.3 million in Q2 2025, reversing prior losses.

• Weighted average yield on debt investments was 14.5% at cost, up from 14.3% in the prior quarter.

• Total expenses for Q2 2025 were $4.0 million, up from $3.7 million in Q2 2024.

• Debt to equity ratio improved to 0.73x from 0.84x sequentially.

Outlook and guidance

• Board declared monthly distributions of $0.035 per share for October, November, and December 2025.

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

• No material changes to risk factors or business strategy were reported for the period.

• Forward-looking statements caution about uncertainties and risks that could impact future results.