Core Viewpoint - Ofs Capital reported mixed financial results for Q2 2025, with net investment income slightly exceeding expectations but facing significant net investment losses and a decline in net asset value per share [1][5][9] Financial Performance - Net investment income per share was $0.25, slightly above the analyst estimate of $0.24, but down 3.8% from Q1 2025 [2][5] - Total investment income reached $10.5 million, exceeding the $10.0 million estimate and showing a year-over-year increase of 1.9% [2][5] - The company experienced a net loss on investments of $12.9 million, a 19.4% increase in losses compared to the previous quarter [2][6] - Net asset value per share decreased from $11.97 to $10.91, reflecting an 8.9% decline [2][6] - Total investments at fair value fell from $403.1 million to $382.7 million, a decrease of 5.1% [2][6] Business Overview - Ofs Capital focuses on providing financing solutions to U.S. middle-market companies, which typically have annual revenues between $15 million and $300 million [3][4] - The investment strategy includes senior secured loans, subordinated debt, and some equity securities, aiming to generate recurring interest income [3][4] Portfolio Developments - During Q2 2025, the company deployed $12.5 million in new investments, an increase from $10.4 million in the prior quarter [5] - No new loans were shifted to non-accrual status, but existing non-accrual loans accounted for 4.0% of total investments based on fair value, indicating ongoing credit concerns [7] Debt Management - The company's total outstanding debt decreased from $248.1 million to $243.4 million during Q2 2025 [8] - Management issued $69.0 million in new unsecured notes at a 7.50% interest rate in July 2025, refinancing older notes with lower rates [8] Dividend and Future Outlook - The company maintained its quarterly dividend at $0.34 per share, raising concerns about potential income shortfalls if investment losses continue [9] - No explicit financial guidance was provided for the current quarter or fiscal 2025, leading to investor focus on future portfolio credit quality and potential markdowns [10]