Earnings Analysis October 30, 2026

Oxford Square Capital Corp ($OXSQ) Q3 2026 Earnings Analysis: Revenue Beats Estimates, EPS Misses

Earnings Report

Revenue: $9.9 million (YoY -3.3%, expected $9.5 million) ✅ Beat

EPS (Earnings Per Share): $0.04 (Q3 2026, based on net investment income), expected $0.05 ❌ Miss

Guidance: Not provided · Next quarter outlook was not disclosed, and a monthly dividend of $0.015 per share was declared for January–March 2027

Stock Reaction: After-hours -8.85% ($1.03, as of 10-30 21:32 KST)

Highlights

Outperformed Investment Income: Q3 investment income of $9.9 million exceeded the expected $9.5 million by 4.2%.

Shift to Valuation Gains: Net assets increased by $1.6 million, recording $7.9 million in unrealized valuation gains.

Rise in Loan Yields: The weighted average yield on collateralized loans rose to 15.0% from 14.9% in the previous quarter.

Income was generated from loans and Collateralized Loan Obligation (CLO) holdings. Q3 investment activity consisted of $20.8 million in purchases and $10.3 million in repayments, resulting in a slight increase in the portfolio size.

Lowlights

Decrease in Earnings Per Share: Net investment income was $4.9 million, or $0.04 per share, down from $0.05 in the previous quarter.

Expansion of Realized Losses: With a net realized loss of $11.3 million in Q3, net asset value fell to $1.21 per share.

Dividend Reduction: A monthly dividend of $0.015 per share was declared for January–March 2027. The Q3 quarterly dividend was $0.105.

$6.8 million in preferred stock investments classified as non-accrual remains. Total expenses were $5 million, up from $4.3 million in the previous quarter.

Company Commentary

The company stated that net asset value as of September 30, 2026, was $1.21 per share and declared a monthly dividend of $0.015 for January–March 2027. No specific guidance for the next quarter's earnings was provided.

Market Reaction and Key Points to Watch

The decline in net asset value from $1.29 to $1.21 per share and the reduction of the monthly dividend to $0.015 coincided with the after-hours decline.

It is necessary to monitor whether the net investment income per share exceeds $0.04 in the next quarter.

The monthly dividend of $0.015 translates to $0.045 per quarter, which is higher than this quarter's net investment income per share of $0.04.

The recovery of the $6.8 million in non-accrual preferred stock investments is the next variable for net asset value.

Earnings Call Key Summary

Once the earnings call concludes and the company script is released, the key takeaways from the call will be added here. We will select and summarize only the most important points, such as how management explained performance and outlook, and what questions analysts asked.