Stellus Capital Investment (SCM) Q3 2026 earnings summary

Executive summary

• Q3 GAAP NII was $7.16m ($0.25/share); core NII excluding estimated excise taxes was $7.47m ($0.26/share).

• Net assets from operations decreased $6.37m ($0.22/share), as $13.50m of net unrealized investment depreciation outweighed realized income.

• Portfolio fair value was $966.1m across 119 companies; NAV was $12.40/share versus $12.82 at year-end 2025.

Financial highlights

• Q3 investment income was $22.4m versus $26.3m YoY; NII was $7.16m versus $9.14m.

• 9M investment income was $68.0m versus $76.9m; NII was $22.19m ($0.77/share) versus $28.49m ($1.01/share).

• 9M net increase in net assets from operations was $11.49m ($0.40/share) versus $21.83m ($0.78/share).

• Q3 funded investments of $37.8m and received $30.3m of repayments; fair value was $966.1m at quarter-end.

Outlook and guidance

• Management expects Q4 fundings to likely replace repayments, leaving portfolio size near $951m across 120 companies; the origination pipeline improved after quarter-start.

• Management expects the $0.25 quarterly dividend to be covered by NII and views it as earnable moving forward; monthly distributions of $0.0833/share were declared for October–December 2026.

• Three additional SBIC III deals were expected by year-end, potentially adding ~$25m to its $23m portfolio; the structure could support up to $125m of equity and $250m of SBA debentures.

• Subsequent to quarter-end, a $6.0m first-lien investment was made in MSCP Fulfillment Holdings, alongside add-ons and commitments to existing investments.