Oxford Square Capital (NASDAQ:OXSQ) Announces Earnings Results

Key Points

• Quarterly earnings missed expectations: Oxford Square Capital reported earnings of $0.04 per share versus the $0.05 analyst consensus. Net investment income declined to approximately $4.9 million, while NAV per share fell to $1.21 from $1.29.
• Distributions were reduced: The board declared monthly distributions of $0.015 per share for January through March 2027, reflecting lower current earnings power and efforts to further reduce leverage.
• Management continued repositioning the portfolio: Oxford Square increased its focus on first-lien secured debt, reduced debt-to-equity leverage to 1.07x, and raised about $19.4 million through an at-the-market offering for future investment opportunities.

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) released its earnings results on Friday. The company reported $0.04 earnings per share for the quarter, missing analysts' consensus estimates of $0.05 by ($0.01), Zacks reports. Oxford Square Capital had a negative net margin of 93.65% and a positive return on equity of 14.41%.

Here are the key takeaways from Oxford Square Capital's conference call:

• Negative Sentiment: Net investment income declined to approximately $4.9 million, or $0.04 per share, from $5.1 million, or $0.05 per share, in the prior quarter, while NAV per share fell to $1.21 from $1.29.
• Negative Sentiment: The board declared monthly distributions of $0.015 per share for January through March 2027, below the prior quarterly distribution rate, reflecting management’s assessment of current earnings power and its goal of further deleveraging.
• Positive Sentiment: Management has intentionally shifted the portfolio toward first-lien secured debt and reduced leverage, which stood at 1.07x debt-to-equity at quarter-end and was lower still after additional intra-quarter debt repayment.
• Neutral Sentiment: The loan market improved modestly overall, with average prices rising and the index default rate declining to 0.55%; however, defaults including liability-management exercises remained elevated at 2.97%, and the distress ratio increased to 7.05%.
• Positive Sentiment: Oxford Square raised approximately $19.4 million through its at-the-market offering and plans to use continued portfolio rotation and available capital to pursue attractive secondary-market CLO equity and loan opportunities.

Oxford Square Capital Stock Performance

Shares of Oxford Square Capital stock traded down $0.21 during trading hours on Friday, hitting $0.92. The company's stock had a trading volume of 9,181,395 shares, compared to its average volume of 1,686,226. Oxford Square Capital has a twelve month low of $0.78 and a twelve month high of $2.05. The firm has a fifty day moving average of $1.30 and a 200-day moving average of $1.56. The stock has a market cap of $98.66 million, a price-to-earnings ratio of -2.04 and a beta of 0.33.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on OXSQ. Weiss Ratings lowered shares of Oxford Square Capital from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, September 10th. Wall Street Zen upgraded shares of Oxford Square Capital from a "sell" rating to a "hold" rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Sell rating. Based on data from MarketBeat, the company currently has an average rating of "Sell".

Oxford Square Capital Company Profile

Oxford Square Capital Corp. NASDAQ: OXSQ is a business development company that invests primarily in debt securities and other investments related to middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation through a portfolio that may include senior secured loans, subordinated debt, and equity investments.

Oxford Square also invests in collateralized loan obligations (CLOs), which are securities backed primarily by pools of corporate loans.

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