Stellus Capital Investment (SCM) Q2 2026 earnings summary

Executive summary

• Reported Q2 2026 net investment income of $7.5 million ($0.26 per share), with core net investment income also at $0.26 per share; portfolio at fair value was $968 million across 116 companies, diversified by industry and geography.

• Net asset value per share was $12.80 at June 30, 2026, with cumulative distributions since IPO reaching $19.08 per share.

• Stellus Capital Management was acquired by Ridgepost Capital, enhancing origination opportunities and sponsor relationships.

• Received approval for a third SBIC license, allowing up to $250 million in SBA-guaranteed debentures and expanding long-term financing capacity.

• Repurchased 274,343 shares for $2.45 million during Q2 2026, with additional 192,974 shares repurchased post-quarter at $7.95 per share.

Financial highlights

• Total investment income for Q2 2026 was $22.3 million, down from $25.7 million in Q2 2025.

• Net investment income for Q2 2026 was $7.5 million ($0.26 per share), compared to $9.6 million ($0.34 per share) in Q2 2025.

• Net increase in net assets from operations was $16.2 million ($0.56 per share), up from $10.1 million ($0.36 per share) in Q2 2025, driven by $15.9 million net change in unrealized appreciation.

• Distributions declared for Q2 2026 were $0.34 per share, compared to $0.40 per share in Q2 2025.

• Weighted average yield on debt investments was 9.0% at June 30, 2026.

Outlook and guidance

• Declared regular monthly dividends of $0.0833 per share for July–September 2026, annualized yield of 13.3%.

• Management expects origination activity to increase toward year-end, supporting net portfolio growth.

• Portfolio quality remains stable, with 74% of investments rated at or above expectations.

• No material changes to risk factors or guidance for the remainder of 2026.