Core Insights - Oxford Lane Capital reported a decline in income and net asset value, alongside significant unrealized depreciation due to market conditions affecting CLOs and leveraged loans [1][4] - The company announced a reduction in monthly common distribution to retain capital for investment opportunities and support net asset value [1] Quarterly Results and Portfolio Marks - As of December 31, 2025, net asset value (NAV) per share was $15.51, down from $19.19 in the previous quarter [2] - GAAP total investment income for the quarter was approximately $117.8 million, a decrease of about $10.5 million from the prior quarter [2] - GAAP net investment income (NII) was approximately $71.8 million, or $0.74 per share, compared to approximately $81.4 million, or $0.84 per share, in the prior quarter [2] - Core net investment income was approximately $108.9 million, or $1.12 per share, down from approximately $120 million, or $1.24 per share, in the previous quarter [3] Valuation Pressure - The company experienced net unrealized depreciation on investments of approximately $305.4 million and net realized losses of approximately $7.0 million [4] - There was a net decrease in net assets resulting from operations of approximately $240.7 million, or $2.47 per share, for the third fiscal quarter [4] Yields and CLO Positions - Cash distribution yields for CLO equity were based on cash distributions received or entitled to be received at each period end [5] - Approximately $114.3 million was generated from CLO equity and CLO warehouse investments, while approximately $3.5 million came from CLO debt investments and other income [6] - The weighted average yield of CLO debt investments at current cost was 17.3%, down from 17.4% as of September 30 [7] - The weighted average effective yield of CLO equity investments at current cost was 13.8%, down from 14.6% [7] - The weighted average cash distribution yield of CLO equity investments at current cost was 19.0%, down from 19.4% [7]