Oxford Square Capital (OXSQ) Q3 2024 earnings summary

Executive summary

• Net investment income for Q3 2024 was $6.2 million ($0.10 per share), down from $7.7 million ($0.13 per share) in Q2 2024 and $0.11 per share in Q3 2023.

• Net asset value per share declined to $2.35 from $2.43 in the prior quarter and $2.78 a year ago.

• Total investment income for Q3 2024 was $10.3 million, down from $11.4 million in Q2 2024 and $13.0 million in Q3 2023.

• Net decrease in net assets from operations was $0.9 million for Q3 2024.

• Distributions of $0.035 per share were declared for January, February, and March 2025.

Financial highlights

• Net realized losses for Q3 2024 were $12.9 million, partially offset by $5.8 million in net unrealized appreciation.

• Distributed $0.105 per share to common stockholders during the quarter, consistent with prior quarters.

• Issued 5.1 million shares via at-the-market offering, raising $14.5 million in net proceeds.

• Investment activity included $47.7 million in purchases and $27.9 million in repayments.

• Weighted average yield of debt investments increased to 14.5% in Q3 2024.

Outlook and guidance

• Board declared monthly distributions of $0.035 per share for January, February, and March 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 2025 totals $26.4 million at original cost.

• Forward-looking statements caution about uncertainties and risks that may affect future results and conditions.