Oxford Square Capital (OXSQ) - 2025 Q1 - Quarterly Results

Financial Highlights and Distributions This section summarizes Oxford Square Capital Corp.'s Q1 2025 financial performance, including key results, distributions, and capital activities Key Financial Results for Q1 2025 For the quarter ended March 31, 2025, Oxford Square Capital Corp. reported a Net Asset Value (NAV) per share of $2.09, a decrease from $2.30 in the previous quarter. Net Investment Income (NII) remained stable at approximately $6.1 million, or $0.09 per share. The company experienced a net decrease in net assets from operations of approximately $8.1 million, driven by net realized losses of $12.2 million, which offset the NII Q1 2025 Key Financial Metrics vs. Q4 2024 | Metric | Q1 2025 (Ended Mar 31, 2025) | Q4 2024 (Ended Dec 31, 2024) | | :--- | :--- | :--- | | NAV per Share | $2.09 | $2.30 | | Net Investment Income (NII) | ~$6.1 million ($0.09/share) | ~$6.0 million ($0.09/share) | | Total Investment Income | ~$10.2 million | ~$10.2 million | | Total Expenses | ~$4.1 million | ~$4.2 million | Weighted Average Yields as of March 31, 2025 | Investment Type | Weighted Average Yield (at current cost) | | :--- | :--- | | Debt Investments | 14.3% | | CLO Equity Investments (Effective Yield) | 9.0% | | CLO Equity Investments (Cash Distribution Yield) | 16.0% | - For Q1 2025, the company recorded a net decrease in net assets from operations of approximately $8.1 million, which consisted of $6.1 million in NII, $12.2 million in net realized losses, and $2.1 million in net unrealized depreciation[1] - As of March 31, 2025, preferred equity investments in one portfolio company with a fair value of approximately $3.9 million were on non-accrual status[1] Common Stock Distributions The Board of Directors declared monthly distributions of $0.035 per share on its common stock for the months ending July, August, and September 2025 Declared Common Stock Distributions | Month Ending | Record Date | Payment Date | Amount Per Share | | :--- | :--- | :--- | :--- | | July 31, 2025 | July 17, 2025 | July 31, 2025 | $0.035 | | August 31, 2025 | August 15, 2025 | August 29, 2025 | $0.035 | | September 30, 2025 | September 16, 2025 | September 30, 2025 | $0.035 | Investment and Capital Activity During the first quarter of 2025, the company was active in the market with approximately $16.0 million in investment purchases and a total of $19.4 million in sales and repayments. Additionally, the company issued approximately 1.3 million shares of common stock through an "at-the-market" offering, raising net proceeds of about $3.5 million - Investment activity in Q1 2025 included purchases of ~$16.0 million, sales of ~$10.7 million, and repayments of ~$8.7 million[1] - In Q1 2025, the company issued approximately 1.3 million shares of common stock via an "at-the-market" offering, resulting in net proceeds of approximately $3.5 million. As of March 31, 2025, shares outstanding were approximately 71.2 million[2] Financial Statements This section presents Oxford Square Capital Corp.'s consolidated balance sheet and statements of operations Statements of Assets and Liabilities As of March 31, 2025, total assets were approximately $285.5 million and total liabilities were $136.6 million, resulting in total net assets of $148.9 million. This represents a decrease from December 31, 2024, when total assets were $299.7 million and net assets were $160.7 million. The net asset value per common share declined to $2.09 from $2.30 at the end of the prior quarter Balance Sheet Comparison (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments (at fair value) | $243,182 | $260,853 | | Cash and cash equivalents | $37,253 | $34,926 | | Total Assets | $285,491 | $299,731 | | Total Liabilities | $136,608 | $139,065 | | Total Net Assets | $148,882 | $160,665 | | Net Asset Value per Share | $2.09 | $2.30 | Statements of Operations For the three months ended March 31, 2025, the company generated total investment income of approximately $10.2 million, a slight decrease from $10.7 million in the same period of 2024. After total expenses of $4.1 million, net investment income was $6.1 million. However, due to significant net realized losses of $12.2 million, the company reported a net decrease in net assets from operations of $8.1 million, compared to a $1.8 million decrease in Q1 2024 Statement of Operations Summary (Three Months Ended March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $10,161,050 | $10,677,424 | | Total Expenses | $4,057,176 | $4,139,868 | | Net Investment Income | $6,103,874 | $6,537,556 | | Net Realized Losses | ($12,158,495) | ($8,094,940) | | Net Change in Unrealized Depreciation | ($2,066,896) | ($211,006) | | Net Decrease in Net Assets from Operations | ($8,121,517) | ($1,768,390) | | NII per Share (Basic and Diluted) | $0.09 | $0.11 | Per Share Data and Ratios This section analyzes Oxford Square Capital Corp.'s per share financial performance and key operational ratios Financial Highlights (Per Share Data) For the first quarter of 2025, the net asset value (NAV) per share decreased by $0.21, from $2.30 to $2.09. This was a result of $0.09 in net investment income being offset by $0.20 in net realized and unrealized losses and $0.11 in distributions. Despite the NAV decline, the market value per share increased from $2.44 to $2.61, yielding a positive total return based on market value of 11.39%. The total return based on NAV was negative 4.57% Per Share Data (Three Months Ended March 31) | Per Share Data | 2025 | 2024 | | :--- | :--- | :--- | | NAV at beginning of period | $2.30 | $2.55 | | Net investment income | $0.09 | $0.11 | | Net realized and unrealized losses | ($0.20) | ($0.13) | | Total distributions | ($0.11) | ($0.11) | | NAV at end of period | $2.09 | $2.42 | | Total return based on Market Value | 11.39% | 14.63% | | Total return based on Net Asset Value | (4.57)% | (0.98)% | Ratios and Supplemental Data For Q1 2025, the annualized ratio of expenses to average net assets was 10.57%, an improvement from 11.17% in Q1 2024. The ratio of net investment income to average net assets was 15.91%. The portfolio turnover rate increased significantly to 6.26% for the quarter, compared to 3.09% in the prior year's quarter, indicating higher investment activity Key Ratios (Three Months Ended March 31) | Ratio/Supplemental Data | 2025 | 2024 | | :--- | :--- | :--- | | Ratio of expenses to average net assets | 10.57% | 11.17% | | Ratio of net investment income to average net assets | 15.91% | 17.64% | | Portfolio turnover rate | 6.26% | 3.09% | Company Information and Disclosures This section outlines Oxford Square Capital Corp.'s business model and includes disclosures on forward-looking statements About Oxford Square Capital Corp. Oxford Square Capital Corp. is a publicly-traded business development company (BDC). Its primary investment strategy focuses on syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation (CLO) vehicles - The company is a publicly-traded business development company (BDC) that primarily invests in syndicated bank loans and CLO vehicles[12] Forward-Looking Statements This press release includes forward-looking statements concerning future results and conditions. These statements are not guarantees of future performance and are subject to various risks and uncertainties that could cause actual results to differ materially from projections - The report contains forward-looking statements that are not guarantees of future performance and involve a number of risks and uncertainties[13]