Oxford Square's 24% Yield Looks Attractive Until You See the NAV Collapse - 24/7 Wall St. S&P 5006,556.90 -0.53% Dow Jones45,976.60 -0.65% Nasdaq 10024,059.80 -0.68% Russell 20002,479.29 -0.63% FTSE 1009,906.80 -0.51% Nikkei 22552,550.50 -1.37% Stock Market Live March 24, 2026: S&P 500 (SPY) Under Pressure Again Investing Oxford Square's 24% Yield Looks Attractive Until You See the NAV Collapse By David BerenPublished Mar 24, 9:57AM EDT Quick Read Oxford Square Capital (OXSQ) trades at a 24% annualized yiel ...

The software sector has been a notable pressure point, with management flagging rising distress in the underlying loan market as a key driver of CLO equity markdowns.Have You read The New Report Shaking Up Retirement Plans ? Americans are answering three questions and many are realizing they can retire earlier than expected.The CLO equity side is where the story gets complicated, as the effective yield on that sleeve compressed from 9.7% in Q3 to 8.6% in Q4, reflecting broader stress in the leveraged loan m ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ––––––––––––––––––––––––––––––– FORM 10-K _______________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00638 ––––––––––––––––––––––––––––––– OXFORD SQUARE CAPITAL CORP. (Exact name of registrant as specified in its c ...

Group 1 - The BDC market has been experiencing volatility, indicating that it is more suitable for experienced traders rather than income investors [2] - The company Trade With Beta focuses on closed-end funds and seeks directional and arbitrage opportunities from market price deviations [1] - Denislav Iliev, an experienced arbitrage trader with over 15 years in day trading, leads a team of 40 analysts to identify mispriced investments in fixed-income and closed-end funds [2] Group 2 - Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [2] - The company maintains an actively managed portfolio and provides a chat platform for discussions among its members [2]

Group 1 - The BDC market has been experiencing volatility, indicating that it is more suitable for experienced traders rather than income investors [2] - The company Trade With Beta focuses on closed-end funds and seeks directional and arbitrage opportunities from market price deviations [1] - Denislav Iliev, an experienced arbitrage trader with over 15 years in day trading, leads a team of 40 analysts who identify mispriced investments in fixed-income and closed-end funds [2] Group 2 - Trade With Beta offers features such as frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, and hedging strategies [2] - The company maintains an actively managed portfolio and provides a chat platform for discussions among its members [2]

Core Insights - Oxford Square Capital Corp. (OXSQ) primarily invests in syndicated bank loans and collateralized loan obligation (CLO) vehicles, recently reporting its fourth-quarter earnings for 2025 [1] Financial Performance - OXSQ reported an earnings per share (EPS) of $0.07, matching estimates, with actual revenue of $10.4 million, exceeding the estimated revenue of $10.1 million, indicating positive revenue performance despite financial challenges [2][5] Valuation Metrics - The price-to-sales ratio is approximately 14.38, indicating investor confidence in the company's growth potential, while the enterprise value to sales ratio stands at 24.22, reflecting the company's valuation relative to its sales [3] - The enterprise value to operating cash flow ratio is 12.20, showing how many times the operating cash flow can cover the enterprise value [3] Financial Ratios - OXSQ's debt-to-equity ratio is 0.95, indicating slightly less debt than equity, while the current ratio is 12.29, suggesting a strong ability to cover short-term liabilities with short-term assets, reflecting a stable financial position [4][5]

Financial Data and Key Metrics Changes - For the fourth quarter ended December 2025, the company's net investment income was approximately $5.4 million or $0.07 per share, a slight decrease from approximately $5.6 million or $0.07 per share in the prior quarter [4] - The net asset value per share decreased to $1.69 from $1.95 in the prior quarter [4] - Total investment income for the quarter was approximately $10.4 million, compared to approximately $10.2 million in the prior quarter [4] - The company recorded combined net unrealized and realized losses on investments of approximately $18.3 million or $0.22 per share, compared to losses of approximately $7.5 million or $0.09 per share in the prior quarter [5] Business Line Data and Key Metrics Changes - The investment activity during the quarter included purchases of approximately $18 million and repayments of approximately $7.4 million [5] - The company issued approximately 4.3 million shares of common stock, resulting in net proceeds of approximately $7.9 million [5] Market Data and Key Metrics Changes - U.S. loan market performance declined, with U.S. loan prices decreasing from 97.06% of par to 96.64% of par [7] - The 12-month trailing default rate for the loan index decreased to 1.23% from 1.47% [8] - The distress ratio, defined as loans with prices below 80% of par, increased to 4.34% from 2.88% [8] - U.S. leveraged loan primary market issuance was $70.7 billion, representing a 27% decrease compared to the same quarter in the previous year [8] Company Strategy and Development Direction - The company focuses on portfolio management strategies aimed at maximizing long-term total return, leveraging its status as a permanent capital vehicle to adopt a longer-term investment strategy [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the current state of the software market reflects real concerns, contributing to wider corporate loan spreads and lower pricing in the syndicated loan markets [16] - The company sees opportunities in both primary and secondary markets despite the slowdown in the primary market due to volatility [13] Other Important Information - The board of directors declared monthly distributions of $0.035 per share for the months ending April, May, and June of 2026 [5] - Additional performance information is available on the company's website [10] Q&A Session Summary Question: Details on $18 million of new investment purchases - The company is focused on first lien loans, particularly B2B loans, and sees opportunities in both primary and secondary markets despite market volatility [12][13] Question: Distress ratio increase and its implications - Management confirmed that the increase in the distress ratio reflects concerns in the software market and broader market volatility, which may create investment opportunities at lower prices [14][16] Question: Drivers of unrealized appreciation in the quarter - The primary driver of unrealized appreciation was a markdown of the CLO equity portion of the investment book, which faced challenges during the quarter [17][18]

Financial Data and Key Metrics Changes - For Q4 2025, the company's net investment income was approximately $5.4 million or $0.07 per share, a slight decrease from approximately $5.6 million or $0.07 per share in the prior quarter [4] - The net asset value per share decreased to $1.69 from $1.95 in the prior quarter [4] - Total investment income for the quarter was approximately $10.4 million, compared to approximately $10.2 million in the prior quarter [4] - The company recorded combined net unrealized and realized losses on investments of approximately $18.3 million or $0.22 per share, up from approximately $7.5 million or $0.09 per share in the prior quarter [5] Business Line Data and Key Metrics Changes - The investment activity during the quarter included purchases of approximately $18 million and repayments of approximately $7.4 million [5] - The company issued approximately 4.3 million shares of common stock, resulting in net proceeds of approximately $7.9 million [5] Market Data and Key Metrics Changes - U.S. loan market performance declined, with loan prices decreasing from 97.06% of par to 96.64% of par [7] - The 12-month trailing default rate for the loan index decreased to 1.23% from 1.47% [8] - The distress ratio increased to 4.34% from 2.88% [9] - U.S. leveraged loan primary market issuance was $70.7 billion, a 27% decrease compared to the same quarter in the previous year [9] - U.S. loan fund outflows were approximately $3.2 billion for the quarter [10] Company Strategy and Development Direction - The company focuses on portfolio management strategies aimed at maximizing long-term total return, leveraging its status as a permanent capital vehicle to adopt a longer-term investment view [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the current state of the software market reflects real concerns, contributing to wider corporate loan spreads and lower pricing [16] - The increase in the distress ratio is indicative of volatility in the market, particularly in the software sector [15][16] Other Important Information - The board of directors declared monthly distributions of $0.035 per share for the months ending April, May, and June of 2026 [5] Q&A Session Summary Question: Details on $18 million of new investment purchases - Management indicated a focus on first lien loans, particularly B2B loans, and noted opportunities in both primary and secondary markets due to current trading conditions [14] Question: Drivers behind the increase in the distress ratio - Management confirmed that the distress ratio increase is reflective of volatility in the software market and a general pushback against growth in the private credit asset class [16] Question: Unrealized appreciation in the quarter - The primary driver of unrealized appreciation was a markdown of the CLO equity portion of the book, which faced challenges during the quarter [18]

Oxford Square Capital Corp. Investor Presentation Quarter Ended December 31, 2025 Disclaimer "Company"). This presentation is neither an offer to sell, nor a solicitation of an offer to purchase, any securities of Oxford Square Capital Corp. ("OXSQ" or the This presentation and the summaries contained herein do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. Nothing shall be relied upon as a promise or representation as to the future performance ...

Financial Performance - Net investment income (NII) for the quarter ended December 31, 2025, was approximately $5.4 million, or $0.07 per share, compared to $5.6 million, or $0.07 per share, for the previous quarter[1] - Total investment income for the quarter was approximately $10.4 million, an increase from approximately $10.2 million in the prior quarter[1] - Total expenses for the quarter were approximately $5.0 million, up from approximately $4.7 million for the quarter ended September 30, 2025[1] - Net investment income for 2025 is $0.30 per share, compared to $0.42 in 2024 and $0.51 in 2023[10] - Total distributions per share for 2025 are $0.42, consistent with 2024, and down from $0.54 in 2023[10] Asset and Liability Overview - As of December 31, 2025, the net asset value (NAV) per share was $1.69, down from $1.95 as of September 30, 2025[1] - The total assets as of December 31, 2025, were $306.7 million, compared to $299.7 million as of December 31, 2024[6] - The total liabilities as of December 31, 2025, were $161.3 million, an increase from $139.1 million as of December 31, 2024[6] - Net asset value at the end of 2025 is $1.69, down from $2.30 in 2024, and $2.55 in 2023[10] - Shares outstanding at the end of 2025 increased to 86,060,964 from 69,758,938 in 2024[10] Investment Activity - During the fourth quarter of 2025, the company made purchases of approximately $18.0 million and repayments of approximately $7.4 million, with no sales made during the quarter[1] - The company primarily invests in syndicated bank loans and collateralized loan obligation (CLO) vehicles[14] Performance Ratios - The weighted average yield of debt investments was 14.5% at current cost, slightly down from 14.6% as of September 30, 2025[1] - Ratio of expenses to average net assets for 2025 is 11.54%, up from 10.66% in 2024[13] - Portfolio turnover rate for 2025 is 23.23%, down from 33.66% in 2024[10] - Total return based on market value for 2025 is (11.92)%, compared to (1.64)% in 2024 and 9.34% in 2023[10] - Total return based on net asset value for 2025 is (8.26)%, compared to 6.67% in 2024 and 11.15% in 2023[10] Net Assets and Operations - The company recorded a net decrease in net assets resulting from operations of approximately $12.9 million, which included net unrealized depreciation of approximately $16.0 million[1] - Average net assets for 2025 are $153,815,000, slightly up from $152,362,000 in 2024[10]