OFS Capital(OFS) - 2025 Q4 - Annual Results

Financial Performance - Net investment income decreased to $0.20 per common share for the quarter ended December 31, 2025, down from $0.22 per common share for the quarter ended September 30, 2025[5]. - Net loss on investments was $1.01 per common share for the quarter ended December 31, 2025, primarily due to net unrealized depreciation of $0.96 per common share[5]. - Total investment income decreased by $1.2 million to $9.369 million for the quarter ended December 31, 2025, compared to $10.551 million for the quarter ended September 30, 2025[13]. - Net investment income for the year ended December 31, 2025, was $12,384,000, down from $16,712,000 in 2024, reflecting a decrease of approximately 25.5%[23]. - Net realized loss on investments for the year was $12,158,000, compared to a loss of $17,121,000 in 2024, indicating an improvement in investment performance[23]. Asset and Liability Management - Net asset value per common share decreased to $9.19 at December 31, 2025, from $10.17 at September 30, 2025[5]. - Total assets decreased to $346,706,000 in 2025 from $428,123,000 in 2024, a reduction of about 19.0%[22]. - Total liabilities decreased to $223,518,000 in 2025 from $255,898,000 in 2024, a reduction of about 12.6%[22]. - Total outstanding debt decreased to $220.5 million as of December 31, 2025, down from $239.2 million at September 30, 2025[6]. Investment Portfolio - Total investments at fair value were $342.0 million, which was approximately 104% of amortized cost[12]. - Total investments at fair value decreased to $342,015,000 in 2025 from $409,665,000 in 2024, representing a decline of approximately 16.5%[22]. Distributions - A distribution of $0.17 per common share for the first quarter of 2026 was declared, payable on March 31, 2026[5]. - Distributions declared per common share for the year were $1.19, down from $1.36 in 2024, a decrease of approximately 12.5%[23]. Cash and Cash Equivalents - As of December 31, 2025, the company had $3.4 million of cash and cash equivalents[17]. Investment Strategy - The company targets investments of $3 million to $20 million in privately held middle-market companies with annual EBITDA between $5 million and $50 million[24]. - OFS Capital's investment activities are managed by OFS Capital Management, LLC, which is registered under the Investment Advisers Act of 1940[24]. Forward-Looking Statements - Forward-looking statements indicate potential risks and uncertainties that may affect future results, as detailed in the Annual Report filed with the SEC[25]. Yield Information - The weighted-average performing income yield increased to 13.5% from 13.3% during the quarter ended September 30, 2025[7]. Expense Management - Total expenses decreased by $0.9 million to $6.673 million for the quarter ended December 31, 2025, compared to $7.611 million for the quarter ended September 30, 2025[15].