OXSQ Oxford Square Capital Corp.

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Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended June 30, 2026 and Declaration of Distributions on Common Stock for the Months Ending October 31, November 30, and December 31, 2026

Friday, July 31, 2026 · 8:00 AM ET GlobeNewswire

GREENWICH, Conn., July 31, 2026 (GLOBE NEWSWIRE) -- Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQG) (NasdaqGS: OXSQH) (the “Company,” “we,” “us” or “our”) announced today its financial results and related information for the quarter ended June 30, 2026.

·On July 29, 2026, our Board of Directors declared the following distributions on our common stock:

Month EndingRecord DatePayment DateAmount Per Share
October 31, 2026October 16, 2026October 30, 2026$0.035
November 30, 2026November 16, 2026November 30, 2026$0.035
December 31, 2026December 17, 2026December 31, 2026$0.035
    
  • Net asset value (“NAV”) per share as of June 30, 2026 stood at $1.29, compared with a NAV per share on March 31, 2026 of $1.32. 

  • Net investment income (“NII”) was approximately $5.1 million, or $0.05 per share, for the quarter ended June 30, 2026, compared with approximately $4.1 million, or $0.05 per share, for the quarter ended March 31, 2026.

  • Total investment income for the quarter ended June 30, 2026 amounted to approximately $9.4 million, compared with approximately $8.9 million for the quarter ended March 31, 2026.
    • For the quarter ended June 30, 2026 we recorded investment income from our portfolio as follows:
      • $5.4 million from our debt investments;
      • $3.5 million from our CLO equity investments; and
      • $0.5 million from other income.

  • Our total expenses for the quarter ended June 30, 2026 were approximately $4.3 million, compared with total expenses of approximately $4.8 million for the quarter ended March 31, 2026.

  • As of June 30, 2026, the following metrics applied (note that none of these metrics represented a total return to shareholders):
    • The weighted average yield of our debt investments was 14.9% at current cost, compared with 14.7% as of March 31, 2026;
    • The weighted average effective yield of our CLO equity investments at current cost was 8.1%, compared with 7.3% as of March 31, 2026;
    • The weighted average cash distribution yield of our cash income producing senior secured note investments at current cost was 8.0%, compared with 8.0% as of March 31, 2026; and
    • The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 12.4%, compared with 13.6% as of March 31, 2026.

  • For the quarter ended June 30, 2026, we recorded a net increase in net assets resulting from operations of approximately $4.0 million, consisting of: 
    • NII of approximately $5.1 million;
    • Net realized losses of approximately $5.2 million; and
    • Net unrealized appreciation of approximately $4.1 million.

  • During the second quarter of 2026, our investment activity consisted of purchases of approximately $19.9 million and repayments of approximately $0.5 million.  No sales were made during the quarter.

  • Our weighted average credit rating was 2.1 based on total fair value and 2.2 based on total principal amount as of June 30, 2026, compared with a weighted average credit rating of 2.2 based on total fair value and 2.4 based on total principal amount as of March 31, 2026.

  • As of June 30, 2026, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $6.9 million.

  • For the quarter ended June 30, 2026, we issued a total of approximately 11.3 million shares of common stock pursuant to an “at-the-market” offering. After deducting the sales agent’s commissions and offering expenses, this resulted in net proceeds of approximately $17.8 million. As of June 30, 2026, we had approximately 105.1 million shares of common stock outstanding.

We will hold a conference call to discuss second quarter results today, Friday, July 31st, 2026 at 9:00 AM ET.  The toll-free dial-in number is 1-800-715-9871, access code number 8149397.  There will be a recording available for 30 days.  If you are interested in hearing the recording, please dial 1-800-770-2030. The replay pass-code is 8149397#.

A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.oxfordsquarecapital.com.


OXFORD SQUARE CAPITAL CORP.
 
STATEMENTS OF ASSETS AND LIABILITIES
  June 30,
2026		 December 31,
2025
  (Unaudited)  
ASSETS        
Non-affiliated/non-control investments (cost: $386,379,336 and $390,403,599, respectively) $252,842,694  $251,731,345 
Cash equivalents (cost of $32,770,267 and $51,236,068, respectively)  32,770,267   51,236,068 
Cash  1,837,775   698,579 
Interest and distributions receivable  1,933,335   2,002,161 
Other assets  1,220,982   1,070,958 
Total assets $290,605,053  $306,739,111 
LIABILITIES        
Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $804,888 and $996,075 respectively $79,695,112  $79,503,925 
Notes payable – 7.75% Unsecured Notes, net of deferred issuance costs of $2,338,027 and $2,621,662 respectively  72,411,973   72,128,338 
Accrued interest payable  1,703,438   1,703,438 
Base Fee and Net Investment Income Incentive Fee payable to affiliate  961,643   1,036,058 
Accrued expenses  804,942   1,017,581 
Securities purchased not settled  —   5,944,969 
Total liabilities  155,577,108   161,334,309 
         
NET ASSETS        
Common stock, $0.01 par value, 300,000,000 shares authorized; 105,058,242 and 86,060,964 shares issued and outstanding, respectively  1,050,583   860,610 
Capital in excess of par value  553,787,659   523,040,484 
Total distributable earnings/(accumulated losses)  (419,810,297)  (378,496,292)
Total net assets  135,027,945   145,404,802 
Total liabilities and net assets $290,605,053  $306,739,111 
Net asset value per common share $1.29  $1.69 


 
OXFORD SQUARE CAPITAL CORP.
 
STATEMENTS OF OPERATIONS
(Unaudited)
 
  Three Months
Ended
June 30, 2026		 Three Months
Ended
June 30, 2025		 Six Months
Ended
June 30, 2026		 Six Months
Ended
June 30, 2025
INVESTMENT INCOME                
From non-affiliated/non-control investments:                
Interest income – debt investments(1) $4,535,789  $4,228,193  $8,854,539  $9,054,597 
Interest income – debt investments – payment-in-kind (“PIK”)(1)  896,600   857,257   1,683,522   1,565,608 
Income from securitization vehicles and investments  3,508,746   3,855,072   6,732,944   7,811,125 
Other income  460,958   581,659   1,073,766   1,251,901 
Total investment income from non-affiliated/
non-control investments		  9,402,093   9,522,181   18,344,771   19,683,231 
Total investment income  9,402,093   9,522,181   18,344,771   19,683,231 
EXPENSES                
                 
Interest expense  2,793,880   1,929,045   5,585,135   3,888,332 
Base Fee  961,643   1,036,312   1,952,274   2,095,097 
Professional fees  441,487   444,251   788,114   767,703 
Compensation expense  232,163   228,296   479,093   467,873 
General and administrative  358,743   360,127   671,409   715,386 
Excise tax  (523,888)  24,585   (419,110)  145,401 
Total expenses before incentive fees  4,264,028   4,022,616   9,056,915   8,079,792 
Net Investment Income Incentive Fees  —   —   —   — 
Total incentive fees  —   —   —   — 
Total expenses  4,264,028   4,022,616   9,056,915   8,079,792 
Net investment income  5,138,065   5,499,565   9,287,856   11,603,439 
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) AND NET REALIZED LOSSES ON INVESTMENT TRANSACTIONS                
Net change in unrealized appreciation/(depreciation) on investments:                
Non-Affiliate/non-control investments  4,071,759   1,253,135   5,135,612   (813,761)
Total net change in unrealized appreciation/(depreciation) on investments  4,071,759   1,253,135   5,135,612   (813,761)
Net realized losses:                
Non-affiliated/non-control investments  (5,216,274)  (2,321,562)  (35,954,739)  (14,480,057)
Extinguishment of debt  —   (45,781)  —   (45,781)
Total net realized losses  (5,216,274)  (2,367,343)  (35,954,739)  (14,525,838)
Net change in unrealized and realized losses  (1,144,515)  (1,114,208)  (30,819,127)  (15,339,599)
Net increase/(decrease) in net assets resulting from operations $3,993,550  $4,385,357  $(21,531,271) $(3,736,160)
Net increase in net assets resulting from net investment income per common share (Basic and Diluted): $0.05  $0.08  $0.10  $0.16 
Net increase/(decrease) in net assets resulting from operations per common share (Basic and Diluted): $0.04  $0.06  $(0.23) $(0.05)
Weighted average shares of common stock outstanding (Basic and Diluted):  99,273,482   73,243,091   93,806,171   71,622,922 
Distributions per share $0.105  $0.105  $0.210  $0.210 

_______________________
(1) Change in prior period was made to conform to the current period presentation.


FINANCIAL HIGHLIGHTS (Unaudited)

Financial highlights for the three and six months ended June 30, 2026 and 2025, respectively, are as follows:

  Three Months
Ended
June 30,
2026		 Three Months
Ended
June 30,
2025		 Six Months
Ended
June 30,
2026		 Six Months
Ended
June 30,
2025
Per Share Data                
Net asset value at beginning of period $1.32  $2.09  $1.69  $2.30 
Net investment income(1)  0.05   0.08   0.10   0.16 
Net realized and unrealized (losses)/gains(2)  —   (0.02)  (0.32)  (0.21)
Net (decrease)/increase in net asset value from operations  0.05   0.06   (0.22)  (0.05)
Distributions per share from net investment income(3)  (0.11)  (0.11)  (0.21)  (0.21)
Tax return of capital distributions(3)  —   —   —   — 
Total distributions  (0.11)  (0.11)  (0.21)  (0.21)
Effect of shares issued  0.03   0.02   0.03   0.02 
Net asset value at end of period $1.29  $2.06  $1.29  $2.06 
Per share market value at beginning of period $1.77  $2.61  $1.76  $2.44 
Per share market value at end of period $1.32  $2.23  $1.32  $2.23 
Total return based on Market Value(4)  (19.75)%  (10.49)%  (14.23)%  (0.30)%
Total return based on Net Asset Value(5)  5.68%  3.59%  (11.24)%  (1.30)%
Shares outstanding at end of period  105,058,242   76,236,738   105,058,242   76,236,738 
                 
Ratios/Supplemental Data                
Net assets at end of period (000’s) $135,028  $157,423  $135,028  $157,423 
Average net assets (000’s) $129,465  $152,126  $130,642  $152,806 
Ratio of expenses to average net assets(6)  14.39%  10.78%  14.19%  10.62%
Ratio of expenses, excluding interest expense, to average net assets(6)  5.76%  5.70%  5.64%  5.53%
Ratio of net investment income to average net assets(6)  14.66%  14.26%  13.90%  15.15%
Portfolio turnover rate(7)  0.19%  —%  0.35%  6.40%


(1) Represents per share net investment income for the period, based upon weighted average shares outstanding.
(2) Net realized and unrealized gains/(losses) include rounding adjustments to reconcile change in net asset value per share.
(3) Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The ultimate tax character of the Company’s earnings cannot be determined until tax returns are prepared after the end of the fiscal year. The amounts and sources of distributions reported are only estimates (based on an average of the reported tax character historically) and are not being provided for U.S. tax reporting purposes. For each of the three-month periods ended June 30, 2026 and 2025, distributions were $0.105 per share and are presented as $0.11 per share due to rounding.
(4) Total return based on market value equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming distribution reinvestment prices obtained under the Company’s distribution reinvestment plan. Total return is not annualized.
(5) Total return based on net asset value equals the increase or decrease of ending net asset value over beginning net asset value, plus distributions, divided by the beginning net asset value. Total return is not annualized.
(6) Annualized and adjusted for one-time excise tax reversals in the current quarter.
(7) Portfolio turnover rate is calculated using the lesser of the year-to-date investment sales and debt repayments or year-to-date investment purchases over the average of the total investments at fair value.
   

About Oxford Square Capital Corp.

Oxford Square Capital Corp. is a publicly-traded business development company principally investing in syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation (“CLO”) vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties.  Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.

Contact:
Bruce Rubin
203-983-5280


Source: Oxford Square Capital Corp.
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