Oxford Square Capital (NASDAQ:OXSQ) Announces Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Oxford Square Capital reported Q — EPS of $0.05, missing estimates by $0.01, and took combined net unrealized and realized losses of $29.7 million, which pushed Net Asset Value down to $1.32 and Net Investment Income to about $4.1M (~$0.05/share).
• Management warned of weakening U.S. leveraged‑loan market conditions—loan prices fell, defaults and distress rose and loan‑fund outflows were roughly $5.1B—creating clear headwinds for the firm's loan exposure.
• The company raised capital by issuing about 7.2 million shares via an ATM (net proceeds ~$12.3M), diluting existing holders, while the board still declared monthly distributions of $0.035 (annualized yield ~22.8%).

Oxford Square Capital (NASDAQ:OXSQ - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.06 by ($0.01), Zacks reports. Oxford Square Capital had a negative net margin of 46.44% and a positive return on equity of 14.80%. The firm had revenue of ($23.52) million for the quarter, compared to analysts' expectations of $10.03 million.

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

• Oxford Square's Net Asset Value per share fell to $1.32 (from $1.69) and Net Investment Income declined to ~$4.1M ($0.05/share) versus ~$5.4M ($0.07) last quarter, indicating quarter‑over‑quarter deterioration.
• The company recorded combined net unrealized and realized losses of $29.7 million (~$0.34/share) for the quarter, up from ~$18.3 million the prior quarter, which heavily impacted results.
• Oxford Square issued ~7.2 million common shares through an at‑the‑market offering, generating net proceeds of ~$12.3M, providing capital but causing dilution to existing shareholders.
• The board declared monthly distributions of $0.035 per share for July, August and September 2026, signaling continued shareholder payouts.
• Management noted weaker U.S. loan market conditions—loan prices fell, default and distress ratios rose, and loan fund outflows were roughly $5.1B—creating headwinds for the firm's leveraged‑loan exposure.

Oxford Square Capital Price Performance

Shares of Oxford Square Capital stock opened at $1.84 on Thursday. Oxford Square Capital has a 1-year low of $1.56 and a 1-year high of $2.56. The company's fifty day simple moving average is $1.80 and its 200-day simple moving average is $1.83. The stock has a market capitalization of $161.02 million, a PE ratio of -7.08 and a beta of 0.45.

Oxford Square Capital Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 16th will be paid a dividend of $0.035 per share. This represents a c) annualized dividend and a dividend yield of 22.8%. The ex-dividend date is Tuesday, June 16th. Oxford Square Capital's dividend payout ratio (DPR) is currently -161.54%.

Analyst Ratings Changes

Separately, Weiss Ratings restated a "sell (d+)" rating on shares of Oxford Square Capital in a research note on Tuesday, April 21st. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company presently has a consensus rating of "Sell".

Institutional Investors Weigh In On Oxford Square Capital

Hedge funds and other institutional investors have recently modified their holdings of the stock. Dynamic Technology Lab Private Ltd purchased a new position in shares of Oxford Square Capital in the first quarter valued at about $28,000. StoneX Group Inc. purchased a new stake in shares of Oxford Square Capital during the fourth quarter worth about $29,000. Legal & General Group Plc raised its stake in Oxford Square Capital by 4.5% during the 2nd quarter. Legal & General Group Plc now owns 468,312 shares of the company's stock valued at $1,042,000 after purchasing an additional 20,205 shares during the period. Susquehanna International Group LLP bought a new stake in Oxford Square Capital during the 3rd quarter valued at approximately $63,000. Finally, CANADA LIFE ASSURANCE Co lifted its holdings in Oxford Square Capital by 72.3% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 97,936 shares of the company's stock worth $155,000 after purchasing an additional 41,105 shares in the last quarter. 6.44% of the stock is currently owned by hedge funds and other institutional investors.

Oxford Square Capital Company Profile

Oxford Square Capital Corp. NASDAQ: OXSQ is a publicly traded business development company that provides flexible financing solutions to U.S. middle-market companies. Chartered as a closed-end management investment company, Oxford Square Capital seeks to generate current income and capital appreciation by investing primarily in secured loans, mezzanine debt and equity co-investments. The firm targets businesses with established cash flows, offering tailored capital structures designed to support growth, recapitalizations and acquisitions.

The company's investment strategy focuses on senior secured first-lien and second-lien loans, subordinated debt and preferred and common equity stakes.