The 57% distribution cut signals that earnings are insufficient to sustain the prior payout, and ongoing ATM dilution is pressuring NAV. Monitor whether the company can stabilize NII and NAV in Q4; further distribution cuts or a capital raise may be needed.
Price Chart
Executive Summary
Oxford Square Capital Corp. reported Q3 2026 results with net investment income of $4.9M ($0.04 per share), missing the $0.05 consensus estimate. Total investment income rose to $9.9M from $9.4M in Q2, but expenses increased to $5.0M from $4.3M. NAV per share fell to $1.21 from $1.29 in Q2. The company also adopted amended bylaws raising the bar for stockholder proposals and declared a sharply reduced monthly distribution of $0.015 per share, down from $0.035.
Key Financial Metrics
Key Facts
- NII of $4.9M ($0.04 per share) missed consensus of $0.05 per share
- Total investment income $9.9M vs $9.4M in Q2 2026
- Total expenses $5.0M vs $4.3M in Q2 2026
- NAV per share declined to $1.21 from $1.29 in Q2 2026
- Monthly distribution slashed to $0.015 from $0.035 per share
- Issued 14.1M shares via ATM offering, raising $19.4M; shares outstanding rose to 120.0M
- Net realized losses of $11.3M in the quarter
- Bylaws amended to require $1M or 3% ownership for 6 months to propose business at annual meetings
Financial Impact
NII miss of ~$1.2M vs prior quarter; distribution cut of 57% from $0.035 to $0.015 per month; NAV decline of 6.2% quarter-over-quarter
Risk Factors
- Continued NAV erosion from realized losses and dilution
- Sustained distribution cut may trigger selling by income-oriented holders
- Rising expense ratio (14.41% of average net assets) compressing NII
- Non-accrual preferred equity investments ($6.8M fair value) pose further loss risk
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001213900-26-114080 |
| Document: ea031027601_ex3-1.htm | 0001213900-26-114080 |
| Document: ea0310276-01_8k.htm | 0001213900-26-114080 |
| Document: 0001213900-26-114080-index-headers.html | 0001213900-26-114080 |
| Document: 0001213900-26-114080-index.html | 0001213900-26-114080 |
| Document: 0001213900-26-114080.txt | 0001213900-26-114080 |
| 8-K Data (Synthetic) | 0001213900-26-114080 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 2d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Oct 30, 2026 2d ago | Press Release | $1.13 | awaiting T+60 | awaiting T+60 | $0.9200 (+18.58%) |
Oct 23, 2026 9d ago | Press Release | $1.18 | awaiting T+60 | awaiting T+60 | $0.9200 (−22.03%) |
Jul 31, 2026 13w ago | 8-K | $1.41 $1.22 | ▲ +13.40% | ▲ +15.18% | $0.9200 (+34.66%) |
Jul 31, 2026 13w ago | 8-K | $1.55 $1.18 | ▲ +23.87% | ▲ +26.33% | $0.9200 (+40.65%) |
Jul 31, 2026 13w ago | Press Release | $1.55 $1.18 | ▲ +23.87% | ▲ +26.33% | $0.9200 (+40.65%) |
May 21, 2026 23w ago | Insider Cluster | $1.38 $1.42 | ▲ +2.90% | ▼ −1.40% | $0.9200 (−33.33%) |
Apr 29, 2026 26w ago | Press Release | $1.59 $1.31 | ▲ +17.87% | ▲ +22.00% | $0.9200 (+42.15%) |
Apr 22, 2026 27w ago | Press Release | $1.64 $1.36 | ▼ −17.08% | ▼ −22.97% | $0.9200 (−43.98%) |
Mar 3, 2026 34w ago | Press Release | $1.75 $1.32 | ▲ +24.60% | ▲ +34.91% | $0.9200 (+47.45%) |
US Market Status
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