Oxford Square Capital Q1 2025 Earnings Report

Oxford Square Capital EPS Results

• Actual EPS: $0.09
• Consensus EPS: $0.08
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: $0.11

Oxford Square Capital Revenue Results

• Actual Revenue: $10.16 million
• Expected Revenue: $9.90 million
• Beat/Miss: Beat by +$261.00 thousand
• YoY Revenue Growth: N/A

Oxford Square Capital Announcement Details

• Quarter: Q1 2025
• Date: 4/25/2025
• Time: Before Market Opens
• Conference Call Date: Friday, April 25, 2025
• Conference Call Time: 9:00AM ET

Oxford Square Capital (NASDAQ:OXSQ) is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.

Oxford Square Capital Q1 2025 Earnings Call Transcript

Key Takeaways

• For the quarter, Oxford Square reported net investment income of $6.1 million or $0.09 per share, essentially flat to the prior quarter.
• The company’s NAV per share declined to $2.09 from $2.30, driven by combined net realized and unrealized losses of $14.2 million (or $0.20 per share).
• Oxford Square sold 1.3 million new common shares in an aftermarket offering, generating net proceeds of $3.5 million to support its capital base.
• The Board declared monthly distributions of $0.35 per share for each of July, August, and September 2025.
• Portfolio commentary noted weakening U.S. loan prices (LSTA index down to 96.31% of par) and elevated adjusted default (4.31%) and distress (3.21%) ratios.

Presentation

[Operator]

Morning, ladies and gentlemen, and welcome to the Oxford Square Capital Corp. First Quarter twenty twenty five Earnings Conference Call. This call is being recorded on Friday, 04/25/2025. I would now like to turn the conference over to Mr. Jonathan Cohen. Please go ahead.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

Good morning. Welcome to the Oxford Square Capital Corp. First Quarter twenty twenty five Earnings Conference Call. I'm joined today by Bruce Rubin, our Chief Financial Officer and Kevin Yonan, Managing Director and Portfolio Manager. Bruce, could you open the call with the disclosure regarding forward looking statements?

[Bruce Rubin, CFO at Oxford Square Capital]

Sure, Jonathan. Today's conference call is being recorded. An audio replay of the conference call will be available for thirty days. Replay information is included in our press release that was issued this morning. Please note that this call is the property of Oxford Square Capital Corp.

[Bruce Rubin, CFO at Oxford Square Capital]

Any unauthorized rebroadcast of this call in any form is strictly prohibited. At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward looking information. Today's conference call includes forward looking statements and projections that reflect the company's current views with respect to, among other things, future events and financial performance. We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in these projections. We do not undertake to update our forward looking statements unless required to do so by law.

[Bruce Rubin, CFO at Oxford Square Capital]

To obtain copies of our latest SEC filings, please visit our website at www.oxfordsquarecapital.com. With that, I'll turn the presentation back to Jonathan.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

Thanks, Rich. For the quarter ended March 31, Oxford Square's net investment income was approximately $6,100,000 or $09 per share compared with approximately $6,000,000 or $09 per share for the prior quarter. Our net asset value per share stood at $2.09 compared to a net asset value per share of $2.3 for the prior quarter.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

During the quarter, we distributed $0.01 $05 per share to our common stock shareholders. For the first quarter, we recorded total investment income of approximately $10,200,000 which was approximately the same as in the prior quarter. During the first quarter, we recorded combined net unrealized and realized losses on investments of approximately $14,200,000 or $0.20 per share compared to combined net unrealized and realized losses on investments of approximately $2,700,000 or $04 per share for the prior quarter. During the first quarter, our investment activity consisted of purchases of approximately $16,000,000 sales of approximately $10,700,000 and repayments of approximately $8,700,000 During the quarter ended March, we issued a total of approximately 1,300,000.0 shares of our common stock pursuant to an aftermarket offering, resulting in net proceeds of approximately $3,500,000 On 04/22/2025, our Board of Directors declared monthly distributions of $0.35 per share for each of the months ending July, August and September of twenty twenty five. Additional details regarding record and payment data information can be found in our press release that was issued this morning.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

With that, I'll turn the call over to our portfolio manager, Kevin Young. Kevin?

[Kevin Yonon, MD & Portfolio Manager at Oxford Square Capital]

Thank you, Jonathan. During the quarter ended March 31, U. S.

[Kevin Yonon, MD & Portfolio Manager at Oxford Square Capital]

Loan market performance weakened versus the prior quarter. U. S. Loan prices, as defined by the Morningstar LSTA U. S.

[Kevin Yonon, MD & Portfolio Manager at Oxford Square Capital]

Leveraged loan index, decreased from 97.33% of par as of December 31 to 96.31% of par as of March 31. According to LCE, during the quarter, there were some pricing dispersion with double b rated loan prices decreasing 82 basis points, b rated loan prices decreasing 134 basis points, and triple c rated loan prices decreasing 211 basis points on average. While the twelve month trailing default rate for the loan decreased to 0.82% by principal amount at the end of the quarter from 0.91% at the December, we note that the default rate, including various forms of liability management exercises, which are not captured in this tighter default rate, remain in an elevated level of 4.31%. Additionally, the distress ratio, defined as the percentage of loans with prices below 80% of par, ended the quarter at 3.21% compared to 3.02 at the end of twenty twenty four. During the quarter ended 03/31/2025, U.

[Kevin Yonon, MD & Portfolio Manager at Oxford Square Capital]

S. Leverage on primary market issuance, excluding amendments and repricing transactions, was $141,100,000,000 representing a 2% decrease versus the quarter ended 03/31/2024. This was driven by lower opportunistic activity, including refinancings and the funding of dividends, partly offset by higher non refinancing issuance, including M and A and LDO activity versus the prior year comparable quarter. At the same time, U. S.

[Kevin Yonon, MD & Portfolio Manager at Oxford Square Capital]

Loan fund inflows as measured by Lipper were approximately $1,940,000,000 for the quarter ended March 31. We continue to focus on portfolio management strategies designed to maximize our long term total return and as a permanent capital vehicle, we historically have been able to take a longer term view towards our investment strategy. With that, I will turn the call back over to Jonathan.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

Thanks very much, Kevin. We note that additional information about Oxford Square's first quarter performance has been posted to our Web site at oxfordsquarecapital.com.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

And with that, operator, we can open the calls for any questions.

[Operator]

Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press the star followed by the number one On your touch tone phone, you will hear a prompt that your hand has been raised. Should you wish to decline from the calling process, please press the star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any key.

[Operator]

One moment, please, for our first question. There are no further questions or there are no questions at this time. I would now like to turn the call back over to mister Jonathan Cohen for his closing remarks.

[Jonathan Cohen, CEO & Board Member at Oxford Square Capital]

Thank you, operator. Thanks very much to everybody who listened and participated in this call. We look forward to speaking with you again soon. Thanks very much.

[Operator]

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Participants

Executives

• Jonathan Cohen, CEO & Board Member
• Bruce Rubin, CFO
• Kevin Yonon, MD & Portfolio Manager