Oxford Square Capital (OXSQ) Q3 2026 earnings summary

Executive summary

• Portfolio fair value was $260.1M across 69 investments at Q3-end; net assets were $145.4M and NAV was $1.21/share, down from $1.29 in Q2.

• Q3 investment income was $9.9M and NII was $4.9M, or $0.04/share; operations increased net assets by $1.6M.

• Nine-month operations decreased net assets by $20.0M, including $47.2M in realized losses partly offset by $13.1M in unrealized appreciation.

• Strategy prioritized conservative risk management, selective secondary-market CLO equity opportunities, portfolio rotation and moderate deleveraging.

Financial highlights

• Q3 investment income was $9.9M versus $10.2M a year earlier; expenses were $5.0M versus $4.7M, and NII was $4.9M versus $5.6M.

• Q3 realized losses were $11.3M, partly offset by $7.9M in unrealized appreciation.

• Q3 distributions were $0.105/share; nine-month distributions totaled $0.315/share.

Segment performance

• Portfolio fair value comprised first-lien debt 53.9%, second-lien debt 5.1%, CLO equity 33.2% and other investments 7.8%.

• Q3 portfolio income included $5.6M from debt investments, $3.6M from CLO equity and $0.6M from other income.

• Debt investment weighted-average yield was 14.97%; CLO equity yield was 8.1%.

• Senior secured debt represented 59.0% of investments; the top 10 investments were 43.2% of portfolio fair value.