Oxford Square Capital Corp.
For the period ended Mar 31, 2026. Filed May 1, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
OXSQ$0.87+4.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001213900-25-107316
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001213900-26-050934
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 154 previous paragraphs and 151 current paragraphs.
88 unchanged; 52 reworded; 8 added; 12 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 14 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
• general economic, political and industry trends and other external factors, including government shutdowns and uncertainty surrounding the financial and political stability of the United States and other countries;
Current report
The base management fee for the three months ended March 31, 2026 was approximately $1.0 million compared with $1.1 million for the three months ended March 31, 2025. That decrease for the three months ended March 31, 2026 was due largely to a decrease in the weighted average gross assets.
Current report
For the three months ended March 31, 2026, we recognized net realized losses of approximately $30.7 million, which were primarily attributable to a restructuring of a senior secured loan and an extinguishment of a CLO equity position.
Current report
Net investment income for the three months ended March 31, 2026 and March 31, 2025 was approximately $4.1 million and $6.1 million, respectively.
Current report
Net Decrease Net Assets Resulting from Operations
Current report
On January 6, 2026, we received an updated form of co-investment exemptive relief from the SEC to allow certain managed funds and investment vehicles, each of whose investment adviser is Oxford Square Management or an investment adviser controlling, controlled by or under common control with Oxford Square Management, to participate in negotiated co-investment transactions where doing so is consistent with regulatory requirements and other pertinent factors, and pursuant to the conditions of the Co-Investment Order. The Co-Investment Order, which supersedes the co-investment order issued to us on June 14, 2017, is a new form of co-investment exemptive relief that adopts a more flexible requirement that allocations be “fair and equitable” to us and that Oxford
Current report
Square Management considers the interests of us and other affiliated 1940 Act-regulated funds that rely on the Co-Investment Order in allocations and which minimizes certain board approval requirements as compared to the prior form of co-investment exemptive relief.
Current report
Among other things, under the Co-Investment Order, the terms, conditions, price, class of securities to be purchased in respect of a particular investment, the date on which such investment is to be made and any registration rights applicable thereto, must be generally the same for us and each other participating affiliated entity. The requirements of the Co-Investment Order (including any requirements for board approval thereunder), as well as other regulatory requirements associated with us and other affiliated 1940 Act-regulated funds that rely on the Co-Investment Order, potentially will impact the investment allocations among participating entities (including, for the avoidance of doubt, us) or otherwise impact allocation results. Any changes to the Co-Investment Order or the rules and other guidance promulgated by the SEC and its staff under the 1940 Act could impact allocations made available to us and thereby affect (and potentially decrease) the allocation made to us or otherwise impact the process for allocations in transactions in which we participate.
Removed paragraphs (12)
Previous report
• an economic downturn could impair our portfolio companies’ and CLO investments’ ability to continue to operate, which could lead to the loss of some or all of our investments in such portfolio companies and CLO investments;
Previous report
The base management fee for both the three months ended September 30, 2025 and 2024 was approximately $1.1 million. The base management fee for both of the nine months ended September 30, 2025 and 2024 was approximately $3.1 million.
Previous report
There were no net investment income incentive fees for the three and nine months ended September 30, 2025 and 2024.
Previous report
For the nine months ended September 30, 2025, we recognized net realized losses on investments of approximately $14.5 million.
Previous report
Net investment income for the three months ended September 30, 2025 and September 30, 2024 was approximately $5.6 million and $6.2 million, respectively. Net investment income for the nine months ended September 30, 2025 and September 30, 2024 was approximately $17.2 million and $20.4 million, respectively. The decrease in net investment income was primarily due to a decrease in interest income and an increase in interest expense, partially offset by an increase in income from securitization vehicles and investments and other income.
Previous report
Net Decrease/Increase in Net Assets Resulting from Operations
Previous report
Net decrease in net assets resulting from operations for the nine months ended September 30, 2025 was approximately $5.8 million compared with a net increase in net assets resulting from operations of approximately $2.6 million for the nine months ended September 30, 2024.
Previous report
From time to time, the Board may authorize a share repurchase program under which shares are purchased in open market transactions. Since we are incorporated in Maryland, MGCL requires share repurchases to be accounted for as a share retirement. The cost of repurchased shares is charged against capital on the settlement date. During the three and nine months ended September 30, 2025 and 2024, we were not authorized to repurchase any shares of outstanding common stock.
Previous report
For more information, see “Recent Developments.”
Previous report
On April 3, 2019, we completed an underwritten public offering of approximately $44.8 million in aggregate principal amount of the 6.25% Unsecured Notes. The 6.25% Unsecured Notes would have matured on April 30, 2026, and could have been redeemed in whole or in part at any time or from time to time at our option on or after April 30, 2022. The 6.25% Unsecured Notes bore interest at a rate of 6.25% per year payable quarterly on January 31, April 30, July 31, and October 31 of each year. The 6.25% Unsecured Notes were listed on the NASDAQ Global Select Market under the trading symbol “OXSQZ.” On June 13, 2025, we redeemed $10.0 million in aggregate principal amount of the 6.25% Unsecured Notes. On July 18, 2025, we redeemed $10.0 million in aggregate principal amount of the 6.25% Unsecured Notes. On September 19, 2025, we redeemed the remaining $24.8 million in aggregate principal amount of the 6.25% Unsecured Notes. In connection with the September 19, 2025 redemption, the 6.25% Unsecured Notes were delisted from the NASDAQ Global Select Market.
Previous report
On June 14, 2017, the Securities and Exchange Commission issued an exemptive order permitting the Company and certain of its affiliates to complete negotiated co-investment transactions in portfolio companies, subject to certain conditions (the “Order”). Subject to satisfaction of certain conditions to the Order, the Company and certain of its affiliates are now permitted, together with any future BDCs, registered closed-end funds and certain private funds, each of whose investment adviser is the Company’s investment adviser or an investment adviser controlling, controlled by, or under common control with the Company’s investment adviser, to co-invest in negotiated investment opportunities where doing so would otherwise be prohibited under the 1940 Act, providing the Company’s stockholders with access to a broader array of investment opportunities. Pursuant to the Order, we are permitted to co-invest in such investment opportunities with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of our stockholders and is consistent with our then-current investment objective and strategies.
Previous report
We have applied for a new exemptive relief order which, if granted, would supersede the Order with respect to negotiated co-investment transactions alongside certain Regulated Funds and Affiliated Entities (each as defined in the application). There can be no assurance that we will obtain such new exemptive relief from the SEC.
Reworded paragraphs (52)
Previous wording
We generally expect to invest between $5 million and $25 million in each of our portfolio companies, although this investment size may vary proportionately as the size of our capital base changes and market conditions warrant. We expect that our investment portfolio will be diversified among a large number of investments with few
Current wording
We generally expect to invest between $5 million and $25 million in each of our portfolio companies, although this investment size may vary proportionately as the size of our capital base changes and market conditions warrant. We expect that our investment portfolio will be diversified among a large number of investments with few investments, if any, exceeding 5.0% of the total portfolio. As of March 31, 2026, our debt investments
Previous wording
investments, if any, exceeding 5.0% of the total portfolio. As of September 30, 2025, our debt investments had stated interest rates between 6.91% and 12.75% and maturity dates between 2 and 94 months. In addition, our portfolio had a weighted average annualized yield on debt investments of approximately 14.60% as of September 30, 2025.
Current wording
(including convertible notes and excluding non-accrual loans) had stated interest rates of between 6.42% and 17.0% and maturity dates of between 28 and 88 months. In addition, our total portfolio had a weighted average annualized yield on debt investments of approximately 14.74% as of March 31, 2026.
Previous wording
During the three months ended September 30, 2025, U.S. loan market performance was stable versus the three months ended June 30, 2025. U.S. loan prices, as defined by the Morningstar/LSTA US Leveraged Loan Index, decreased from 97.07% of par as of June 30, 2025 to 97.06% of par as of September 30, 2025.
Current wording
During the three months ended March 31, 2026, U.S. loan market performance weakened versus the prior quarter. U.S. loan prices, as defined by the Morningstar/LSTA US Leveraged Loan Index, decreased from 96.64% of par as of December 31, 2025 to 94.63% of par as of March 31, 2026.
Previous wording
The Company’s Board of Directors approved the fair value of the Company’s investment portfolio of approximately $260.5 million as of September 30, 2025 in good faith in accordance with the Company’s valuation procedures.
Current wording
As of March 31, 2026, the Company’s Board of Directors approved the fair value of the Company’s investment portfolio of approximately $235.4 million in good faith in accordance with the Company’s valuation procedures.
Previous wording
The preparation of financial statements and related disclosures in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) revenues and expenses during the periods reported. Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. Actual results could materially differ from those estimates. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in Item 1A. — Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2024. See “Note 3. Summary of Significant Accounting Policies” to our financial statements for more information on our critical accounting policies.
Current wording
The preparation of financial statements and related disclosures in conformity with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) revenues and expenses during the periods reported. Our critical accounting estimates, including those relating to the valuation of our investment portfolio, are described below. Actual results could materially differ from those estimates. The critical accounting estimates should be read in conjunction with our risk factors as disclosed in Item 1A. — Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2025. See “Note 3. Summary of Significant Accounting Policies” to our financial statements for the three months ended March 31, 2026 for more information on our critical accounting policies.
Previous wording
Our Board of Directors determines the fair value of our investment portfolio in accordance with the provisions of ASC 820, Fair Value Measurement and Disclosure (“ASC 820”) and Rule 2a-5 under the 1940 Act. Estimates made in the preparation of our financial statements include the valuation of investments and the related amounts of unrealized appreciation and depreciation of investments recorded. We believe that there is no single definitive
Current wording
Our Board of Directors determines the fair value of our investment portfolio in accordance with the provisions of ASC 820, Fair Value Measurement and Disclosure (“ASC 820”) and Rule 2a-5 under the 1940 Act. Estimates made in the preparation of our financial statements include the valuation of investments and the related amounts of unrealized appreciation and depreciation of investments recorded. We believe that there is no single definitive method for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make.
Previous wording
ASC 820 clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:
Current wording
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:
Previous wording
Our Board of Directors determines the value of our investment portfolio each quarter. In connection with that determination, members of Oxford Square Management’s portfolio management team prepare a quarterly analysis of each portfolio investment using the most recent portfolio company financial statements, forecasts and other relevant financial and operational information. We may also engage a third-party valuation firm to provide assistance in valuing certain of our syndicated loans and bilateral investments, including related equity investments, although our Board of Directors ultimately determines the appropriate valuation of each such investment. Changes in fair value, as described above, are recorded in the statements of operations as net change in unrealized appreciation/depreciation.
Current wording
Our Board of Directors determines the value of our investment portfolio each quarter. In connection with that determination, members of Oxford Square Management’s portfolio management team prepare a quarterly analysis of each portfolio investment using the most recent portfolio company financial statements, forecasts and other relevant financial and operational information. We may elect to value a recently purchased investment at cost. We may also engage a third-party valuation firm to provide assistance in valuing certain of our syndicated loans and bilateral investments, including related equity investments, although our Board of Directors ultimately determines the appropriate valuation of each such investment. Changes in fair value, as described above, are recorded in the statements of operations as net change in unrealized appreciation/depreciation.
Previous wording
In valuing our CLO debt and equity investments, we consider the indicative prices provided by a recognized industry pricing service as a primary source, and the implied yield of such prices, supplemented by actual trades executed in the market at or around period-end, as well as the indicative prices provided by brokers who arrange transactions in such investment vehicles. We also consider those instances in which the record date for an equity distribution payment falls on the last day of the period, and the likelihood that a prospective purchaser would require a downward adjustment to the indicative price representing substantially all of the pending distribution. Additional factors include any available information on other relevant transactions including firm bids and offers in the market and information resulting from bids-wanted-in-competition. In addition, we consider the operating metrics of the specific investment vehicle, including compliance with collateralization tests, defaulted and restructured securities, and payment defaults, if any. We calculate the fair value of certain CLO equity investments based upon the net present value of expected contractual payment streams discounted using estimated market yields for the equity tranche of the respective CLO vehicle. Oxford Square Management or its Valuation Committee may request an additional analysis by a third-party firm to assist in the valuation process of CLO investment vehicles. All information is presented to our Board for its determination of fair value of these investments.
Current wording
a downward adjustment to the indicative price representing substantially all of the pending distribution. Additional factors include any available information on other relevant transactions including firm bids and offers in the market and information resulting from bids-wanted-in-competition. In addition, we consider the operating metrics of the specific investment vehicle, including compliance with collateralization tests, defaulted and restructured securities, and payment defaults, if any. We calculate the fair value of certain CLO equity investments based upon the net present value of expected contractual payment streams discounted using estimated market yields for the equity tranche of the respective CLO vehicle. Oxford Square Management or its Valuation Committee may request an additional analysis by a third-party firm to assist in the valuation process of CLO investment vehicles. All information is presented to our Board for its determination of fair value of these investments.
Previous wording
The total fair value of our investment portfolio was approximately $260.5 million and $260.9 million as of September 30, 2025, and December 31, 2024, respectively. The decrease in the value of investments during the nine month period ended September 30, 2025, was due primarily to net realized losses on investments of approximately $14.5 million, debt repayments of approximately $40.2 million, sales of securities of approximately $10.7 million, and net unrealized depreciation on our investment portfolio of approximately $8.3 million (which incorporates reductions to CLO equity cost value of approximately $5.2 million), which were partially offset by investment acquisitions of approximately $74.2 million.
Current wording
The total fair value of our investment portfolio was approximately $235.4 million and $251.7 million as of March 31, 2026, and December 31, 2025, respectively. The decrease in the value of investments during the three month period ended March 31, 2026, was due primarily to net realized losses of approximately $30.7 million, and debt repayments of approximately $0.4 million, which were partially offset by investment acquisitions of approximately $15.8 million and net unrealized appreciation on our investment portfolio of approximately $1.1 million (which incorporates reductions to CLO equity cost value of $3.9 million).
Previous wording
A reconciliation of the investment portfolio for the nine months ended September 30, 2025 and the year ended December 31, 2024 follows:
Current wording
A reconciliation of the investment portfolio for the three months ended March 31, 2026 and the year ended December 31, 2025 follows:
Previous wording
(1) For the nine months ended September 30, 2025, the reductions to CLO equity cost value of approximately $5.2 million represented the distributions received, or entitled to be received, on our investments held in CLO equity subordinated and income notes of approximately $17.3 million, plus the amortization of cost on our CLO fee notes of approximately $18,000, less the effective yield interest income recognized on our CLO equity subordinated and income notes of approximately $12.1 million. For the year ended December 31, 2024, the reductions to CLO equity cost value of approximately $13.0 million represented the distributions received, or entitled to be received, on our investments held in CLO equity subordinated and income notes of approximately $28.4 million, plus the amortization of cost on our CLO fee notes of approximately $71,000, less the effective yield interest income recognized on our CLO equity subordinated and income notes of approximately $15.4 million.
Current wording
(1) For the three months ended March 31, 2026, the reductions to CLO equity cost value of approximately $3.9 million represented the distributions received, or entitled to be received, on our investments held in CLO equity subordinated and income notes of approximately $7.1 million, plus the amortization of cost on our CLO fee notes of approximately $38,000, less the effective yield interest income recognized on our CLO equity subordinated and income notes of approximately $3.2 million. For the year ended December 31, 2025, the reductions to CLO equity cost value of approximately $7.7 million represented the distributions received, or entitled to be received, on our investments held in CLO equity subordinated and income notes of approximately $24.1 million, plus the amortization of cost on our CLO fee notes of approximately $57,000, less the effective yield interest income recognized on our CLO equity subordinated and income notes of approximately $16.5 million.
Previous wording
During the nine months ended September 30, 2025 we purchased approximately $74.2 million in portfolio investments, including additional investments of approximately $27.9 million in existing portfolio companies and approximately $46.3 million in new portfolio companies. During the year ended December 31, 2024, we purchased approximately $112.2 million in portfolio investments, including additional investments of approximately $31.0 million in existing portfolio companies and approximately $81.2 million in new portfolio companies.
Current wording
During the three months ended March 31, 2026 we purchased approximately $15.8 million in portfolio investments, which represented $3.0 million of investments in existing portfolio companies and approximately $12.8 million of investments in new portfolio companies. During the year ended December 31, 2025, we purchased approximately $92.1 million in portfolio investments, including additional investments of approximately $30.9 million in existing portfolio companies and approximately $61.2 million in new portfolio companies.
Previous wording
For the nine months ended September 30, 2025 and the year ended December 31, 2024, we recognized proceeds from the sales of securities of approximately $10.7 million and $11.8 million, respectively. Also, during the nine months ended September 30, 2025 and the year ended December 31, 2024, we had loan principal repayments of approximately $40.2 million and $75.0 million, respectively.
Current wording
For the three months ended March 31, 2026, we did not sell any investments. For the year ended December 31, 2025, we recognized proceeds from the sales of securities of approximately $10.7 million. Also, during the three months ended March 31, 2026 and the year ended December 31, 2025, we had loan principal repayments of approximately $0.4 million and $47.6 million, respectively.
Previous wording
As of September 30, 2025, we had investments in debt securities of, or loans to, 19 portfolio companies, with a fair value of approximately $142.0 million, CLO equity investments of approximately $113.2 million, and equity and other investments of approximately $5.3 million.
Current wording
As of March 31, 2026, we had investments in debt securities of, or loans to, 19 portfolio companies, with a fair value of approximately $150.8 million, CLO equity investments of approximately $72.2 million, and equity and other investments of approximately $12.4 million.
Previous wording
As of December 31, 2024, we had investments in debt securities of, or loans to, 21 portfolio companies, with a fair value of approximately $150.7 million, CLO equity investments of approximately $104.6 million, and equity and other investments of approximately $5.6 million.
Current wording
As of December 31, 2025, we had investments in debt securities of, or loans to, 19 portfolio companies, with a fair value of approximately $147.3 million, CLO equity investments of approximately $95.1 million, and equity and other investments of approximately $9.4 million.
Previous wording
The following table indicates the quarterly portfolio investment activity for the past nine quarters:
Current wording
The following table indicates the quarterly portfolio investment activity for the past five quarters:
Previous wording
Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2025 and December 31, 2024, we held qualifying assets that represented 64.3% and 63.8%, respectively, of the total assets. No additional non-qualifying assets were acquired during the periods when qualifying assets were less than 70.0% of the total assets.
Current wording
Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of March 31, 2026 and December 31, 2025, we held qualifying assets that represented 74.5% and 68.8%, respectively, of the total assets. No additional non-qualifying assets were acquired during the periods when qualifying assets were less than 70.0% of the total assets.
Previous wording
We have adopted a credit grading system to monitor the quality of our debt investment portfolio. As of September 30, 2025 and December 31, 2024, our portfolio had a weighted average grade of 2.2 and 2.3, respectively, based upon the fair value of the debt investments in the portfolio. Equity securities and investments in CLOs are not graded.
Current wording
We have adopted a credit grading system to monitor the quality of our debt investment portfolio. As of March 31, 2026 and December 31, 2025, our portfolio had a weighted average grade of 2.2 and 2.2, respectively, based upon the fair value of the debt investments in the portfolio. Equity and convertible securities and investments in CLOs are not graded.
Previous wording
We expect that a portion of our investments will be in the grades 3, 4 or 5 categories from time to time, and, as such, we will be required to work with troubled portfolio companies to improve their business and protect our investment. The number and amount of investments included in grades 3, 4 or 5 may fluctuate from period to period.
Current wording
A portion of our investments are, and we expect will continue to be, in the grades 3, 4 or 5 categories from time to time, and, as such, we are required to work with troubled portfolio companies to improve their business and protect our investment. The number and amount of investments included in grades 3, 4 or 5 may fluctuate from period to period.
Previous wording
Set forth below is a comparison of our results of operations for the three and nine months ended September 30, 2025 to the three and nine months ended September 30, 2024.
Current wording
Set forth below is a comparison of our results of operations for the three months ended March 31, 2026 to the three months ended March 31, 2025.
Previous wording
Investment income for the three months ended September 30, 2025 and September 30, 2024 was approximately $10.2 million and $10.3 million, respectively. Investment income for the nine months ended September 30, 2025 and September 30, 2024 was approximately $29.9 million and $32.5 million, respectively. The following tables set forth the components of investment income for the three and nine months ended September 30, 2025 and September 30, 2024:
Current wording
Investment income for the three months ended March 31, 2026 and March 31, 2025 was approximately $8.9 million and $10.2 million, respectively. The following tables set forth the components of investment income for the three months ended March 31, 2026 and March 31, 2025:
Previous wording
(1) For the nine months ended September 30, 2025, the Company earned approximately $131,000 of PIK fees.
Current wording
(2) For the three months ended March 31, 2025, the Company earned approximately $131,000 of PIK fees.
Previous wording
The decrease in total investment income for the three and nine months ended September 30, 2025 was primarily due to a decrease in interest income for the three and nine months ended September 30, 2025.
Current wording
The decrease in total investment income for the three months ended March 31, 2026 was primarily due to a decrease in interest income and income from securitization vehicles and investments for the three months ended March 31, 2026.
Previous wording
The total principal value of income producing debt investments as of September 30, 2025 and September 30, 2024 was approximately $180.6 million and $209.6 million, respectively. As of September 30, 2025, our debt investments had a range of stated interest rates of 6.91% and 12.75% and maturity dates between 2 and 94 months compared to a range of stated interest rates of 8.71% to 13.26% and maturity dates between 0 and 76 months as of September 30, 2024. In addition, our total debt portfolio had a weighted average yield on debt investments of approximately 14.60% as of September 30, 2025, compared to approximately 14.50% as of September 30, 2024. As of September 30, 2025, we had no debt investments on non-accrual status. As of September 30, 2024, three debt investments in one portfolio company were on non-accrual status with a combined fair value of approximately $0.5 million and total principal amount of approximately $31.6 million.
Current wording
The total principal value of income producing debt investments (including convertible notes and excluding non-accrual loans) as of March 31, 2026 and March 31, 2025 was approximately $185.9 million and $182.5 million, respectively. As of March 31, 2026, our debt investments had a range of stated interest rates of 6.42% and 17.0% and maturity dates of between 28 and 88 months compared to a range of stated interest rates of 7.07% and 12.87% and maturity dates of between 0 and 83 months as of March 31, 2025. In addition, our total debt portfolio had a weighted average yield on income accruing debt investments of approximately 14.74% as of March 31, 2026, compared to approximately 14.31% as of March 31, 2025. As of March 31, 2026, one debt investment was on non-accrual status with a fair value of approximately $3.5 million and had a total principal value of approximately $8.8 million. As of March 31, 2025, we had no debt investments on non-accrual status.
Previous wording
Income from securitization vehicles for the three months ended September 30, 2025 and September 30 2024, was approximately $4.3 million and $3.5 million, respectively. Income from securitization vehicles for the nine months ended September 30, 2025 and September 30, 2024, was approximately $12.1 million and $11.3 million, respectively. The total principal outstanding on our investments in CLOs (excluding fee letters/notes) as of September 30, 2025 and September 30, 2024, was approximately $376.1 million and $354.4 million, respectively. The weighted average yield on CLO equity investments as of September 30, 2025 and September 30, 2024, was approximately 9.7% and 9.6%, respectively.
Current wording
Income from securitization vehicles for the three months ended March 31, 2026 and March 31, 2025, was approximately $3.2 million and $4.0 million, respectively. The total principal outstanding on our investments in CLOs (excluding fee notes) as of March 31, 2026 and March 31, 2025, was approximately $341.4 million and $336.2 million, respectively. The weighted average yield on CLO equity investments as of March 31, 2026 and March 31, 2025, was approximately 7.3% and 9.0%, respectively.
Previous wording
Total expenses, including taxes, for the three months ended September 30, 2025 and 2024, were approximately $4.7 million and $4.2 million, respectively. Total expenses for the nine months ended September 30, 2025 and 2024, were approximately $12.8 million and $12.0 million, respectively. These amounts consisted of base management fees, interest expense, professional fees, compensation expense, general and administrative expenses, net investment income incentive fees, and excise tax. That increase for the three and nine months ended September 30, 2025 was primarily due to an increase in interest expense.
Current wording
Total expenses for the three months ended March 31, 2026, were approximately $4.8 million, compared to approximately $4.1 million for the three months ended March 31, 2025. That increase in expenses was primarily due to an increase in interest expense. These amounts consisted of base management fees, interest expense, professional fees, compensation expense, general and administrative expenses, excise tax, and incentive fees.
Previous wording
Interest expense for the three and nine months ended September 30, 2025 was approximately $2.6 million and $6.4 million, respectively, which primarily relates to our 7.75% unsecured notes due 2030 (the “7.75% Unsecured Notes”), 5.50% unsecured notes due 2028 (the “5.50% Unsecured Notes”) and 6.25% unsecured notes due 2026 (the “6.25% Unsecured Notes”). Interest expense for the three and nine months ended September 30, 2024, was approximately $2.0 million and $5.9 million, respectively, which primarily relates to our 5.50% Unsecured Notes and 6.25% Unsecured Notes.
Current wording
Interest expense for the three months ended March 31, 2026, was approximately $2.8 million, which primarily relates to our 5.50% unsecured notes due 2028 (the “5.50% Unsecured Notes”) and 7.75% unsecured notes due 2030 (the “7.75% Unsecured Notes”). Interest expense for the three months ended March 31, 2025, was approximately $2.0 million, which primarily relates to our 5.50% Unsecured Notes and 6.25% unsecured notes due 2026 (the “6.25% Unsecured Notes”).
Previous wording
Professional fees, consisting of legal, consulting, valuation, audit and tax fees, were approximately $352,000 for the three months ended September 30, 2025, compared to approximately $359,000 for the three months ended September 30, 2024. Professional fees were approximately $1.1 million for the nine months ended September 30, 2025, compared to approximately $1.2 million for the nine months ended September 30, 2024.
Current wording
Professional fees, consisting of legal, consulting, valuation, audit and tax services, were approximately $347,000 for the three months ended March 31, 2026, compared to approximately $323,000 for the three months ended March 31, 2025. That increase for the three months ended March 31, 2026 was primarily due to higher legal fees, partially offset by lower consulting fees.
Previous wording
Compensation expense was approximately $254,000 for the three months ended September 30, 2025, compared to approximately $209,000 for the three months ended September 30, 2024. Compensation expense was approximately $722,000 for the nine months ended September 30, 2025, compared to approximately $591,000 for the nine months ended September 30, 2024. Compensation expense reflects the allocation of compensation expenses for the services of our Chief Financial Officer, accounting personnel, and other administrative support staff.
Current wording
Compensation expense was approximately $247,000 for the three months ended March 31, 2026, compared to approximately $240,000 for the three months ended March 31, 2025. Compensation expense reflects the allocation of compensation expenses for the services of our Chief Financial Officer, accounting personnel, and other administrative support staff.
Previous wording
General and administrative expenses, consisting primarily of directors’ fees, insurance, listing fees, transfer agent and custodian fees, office supplies, facilities costs, and other expenses, were approximately $358,000 for the three months ended September 30, 2025, compared to approximately $395,000 for the three months ended September 30, 2024. General and administrative expenses were approximately $1.1 million for the nine months ended September 30, 2025, compared to approximately $1.2 million for the nine months ended September 30, 2024. Office supplies, facilities costs and other expenses are allocated to us under the terms of the Administration Agreement.
Current wording
General and administrative expenses, consisting primarily of directors’ fees, insurance, listing fees, transfer agent and custodian fees, market data services, facilities costs and other expenses, was approximately $313,000 for the three months ended March 31, 2026, compared to approximately $355,000 for the three months ended March 31, 2025. Office supplies, facilities costs and other expenses are allocated to us under the terms of the Administration Agreement.
Previous wording
Excise tax was approximately $105,000 for the three months ended September 30, 2025, compared to $144,000 for the three months ended September 30, 2024. Excise tax was approximately $250,000 for the nine months ended September 30, 2025, compared to $96,000 for the nine months ended September 30, 2024.
Current wording
Excise tax was approximately $105,000 for the three months ended March 31, 2026, compared to approximately $121,000 for the three months ended March 31, 2025.
Previous wording
There was no net investment income incentive fee (“Net Investment Income Incentive Fee”) recorded for the three and nine months ended September 30, 2025 and 2024. The Net Investment Income Incentive Fee is calculated and payable quarterly in arrears based on the amount by which (x) the “Pre-Incentive Fee Net Investment Income” for the immediately preceding calendar quarter exceeds (y) the “Preferred Return Amount” for the calendar quarter. For this purpose, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income accrued during the calendar quarter minus our operating expenses for the quarter (including the Base Fee, expenses payable under the Administration Agreement with Oxford Funds, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Refer to “Note 7. Related Party Transactions” in the notes to our financial statements.
Current wording
There was no net investment income incentive fee (“Net Investment Income Incentive Fee”) recorded for the three months ended March 31, 2026 and 2025. The Net Investment Income Incentive Fee is calculated and payable quarterly in arrears based on the amount by which (x) the “Pre-Incentive Fee Net Investment Income” for the immediately preceding calendar quarter exceeds (y) the “Preferred Return Amount” for the calendar quarter. For this purpose, “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income accrued during the calendar quarter minus our operating expenses for the quarter (including the Base Fee, expenses payable under the Administration Agreement with Oxford Funds, and any interest expense and dividends paid on any issued and outstanding preferred stock, but excluding the incentive fee). Refer to “Note 7. Related Party Transactions” in the notes to our financial statements.
Previous wording
The expense attributable to the capital gains incentive fee (the “Capital Gains Incentive Fee”), as reported under GAAP, is calculated as if the Company’s entire portfolio had been liquidated at period end, and therefore is calculated on the basis of net realized and unrealized gains and losses at the end of each period. That expense (or the reversal of such an expense) related to that hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of the Investment Advisory Agreement on such date. For the three and nine months ended September 30, 2025 and 2024, no accrual was required as a result of the impact of accumulated net unrealized depreciation and net realized losses on our portfolio.
Current wording
The expense attributable to the capital gains incentive fee (the “Capital Gains Incentive Fee”), as reported under GAAP, is calculated as if the Company’s entire portfolio had been liquidated at period end, and therefore is calculated on the basis of net realized and unrealized gains and losses at the end of each period. That expense (or the reversal of such an expense) related to that hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of the Investment Advisory Agreement on such date. For the three months ended March 31, 2026 and 2025, no accrual was required as a result of the impact of accumulated net unrealized depreciation and net realized losses on our portfolio.
Previous wording
The amount of the Capital Gains Incentive Fee which will actually be payable is determined in accordance with the terms of the Investment Advisory Agreement and is calculated as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). The terms of the Investment Advisory Agreement state that the Capital Gains Incentive Fee calculation is based on net realized gains, if any, offset by gross unrealized depreciation for the calendar year. No effect is given to gross unrealized appreciation in this calculation. For the three and nine months ended September 30, 2025 and 2024, such an accrual was not required under the terms of the Investment Advisory Agreement.
Current wording
The amount of the Capital Gains Incentive Fee which will actually be payable is determined in accordance with the terms of the Investment Advisory Agreement and is calculated as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). The terms of the Investment Advisory Agreement state that the Capital Gains Incentive Fee calculation is based on net realized gains, if any, offset by gross unrealized depreciation for the calendar year. No effect is given to gross unrealized appreciation in this calculation. For the three months ended March 31, 2026 and 2025, such an accrual was not required under the terms of the Investment Advisory Agreement.
Previous wording
For the three months ended September 30, 2025, our net change in unrealized appreciation was approximately $7.5 million, composed of $2.4 million in gross unrealized appreciation, $9.9 million in gross unrealized depreciation and approximately $20,000 relating to the reversal of prior period net unrealized depreciation as investment gains and losses were realized. This includes net unrealized appreciation of approximately $1.7 million resulting from reductions to the cost value of our CLO equity investments representing the difference between distributions received, or entitled to be received, on our investments held in CLO equity subordinated notes and fee notes, of approximately $6.0 million and the effective yield interest income recognized on our CLO equity subordinated notes and the amortized cost adjusted income on our CLO equity fee notes of approximately $4.3 million. The most significant components of the net change in unrealized appreciation during the three months ended September 30, 2025, were as follows (in millions):
Current wording
For the three months ended March 31, 2026, our net change in unrealized appreciation was approximately $1.1 million, composed of $1.0 million in gross unrealized appreciation, $30.2 million in gross unrealized depreciation and approximately $30.3 million relating to the reversal of prior period net unrealized depreciation as investment gains and losses were realized. This includes net unrealized appreciation of approximately $3.9 million resulting from reductions to the cost value of our CLO equity investments representing the difference between distributions received, or entitled to be received, on our investments held in CLO equity subordinated notes and fee notes, of approximately $7.1 million and the effective yield interest income recognized on our CLO equity subordinated notes and the amortized cost adjusted income on our CLO equity fee notes of approximately $3.2 million. The most significant components of the net change in unrealized appreciation during the three months ended March 31, 2026, were as follows (in millions):
Previous wording
For the three months ended September 30, 2025, we recognized net realized losses on investments of approximately $120,000.
Current wording
For the three months ended March 31, 2025, we recognized net realized losses of approximately $12.2 million.
Previous wording
For the nine months ended September 30, 2025, our net change in unrealized depreciation was approximately $8.3 million, composed of $3.9 million in gross unrealized appreciation, $26.5 million in gross unrealized depreciation and approximately $14.3 million relating to the reversal of prior period net unrealized depreciation as investment gains and losses were realized. This includes net unrealized appreciation of approximately $5.2 million resulting from reductions to the cost value of our CLO equity investments representing the difference between distributions received, or entitled to be received, on our investments held in CLO equity subordinated notes and fee notes, of approximately $17.3 million and the effective yield interest income recognized on our CLO equity subordinated notes and the amortized cost adjusted income on our CLO equity fee notes of approximately $12.1 million. The most significant components of the net change in unrealized appreciation during the nine months ended September 30, 2025, were as follows (in millions):
Current wording
For the three months ended March 31, 2025, our net change in unrealized depreciation was approximately $2.1 million, composed of $2.4 million in gross unrealized appreciation, $16.6 million in gross unrealized depreciation and approximately $12.1 million relating to the reversal of prior period net unrealized depreciation as investment gains and losses were realized. This includes net unrealized appreciation of approximately $1.7 million resulting from reductions to the cost value of our CLO equity investments representing the difference between distributions received, or entitled to be received, on our investments held in CLO equity subordinated notes and fee notes, of approximately $5.7 million and the effective yield interest income recognized on our CLO equity subordinated notes and the amortized cost adjusted income on our CLO equity fee notes of approximately $4.0 million. The most significant components of the net change in unrealized depreciation during the three months ended March 31, 2025, were as follows (in millions):
Previous wording
For the three months ended September 30, 2025, the net decrease in net assets resulting from operations per common share was $0.03 (basic and diluted), compared to a net decrease in net assets resulting from operations per share of $0.01 (basic and diluted) for the three months ended September 30, 2024. For the nine months ended September 30, 2025, the net decrease in net assets resulting from operations per common share was $0.08 (basic and diluted), compared to a net increase in net assets resulting from operations per share of $0.04 (basic and diluted) for the nine months ended September 30, 2024.
Current wording
For the three months ended March 31, 2026, the net increase in net assets resulting from net investment income per common share was $0.05 (basic and diluted), compared to the net increase in net assets resulting from net investment income per share of $0.09 (basic and diluted) for the three months ended March 31, 2025. The per share decrease was primarily due to a decrease in investment income, an increase in expenses, and an increase in weighted average shares of common stock outstanding.
Previous wording
Net decrease in net assets resulting from operations for the three months ended September 30, 2025 was approximately $2.1 million compared with a net decrease in net assets resulting from operations of approximately $0.9 million for the three months ended September 30, 2024.
Current wording
Net decrease in net assets resulting from operations for the three months ended March 31, 2026 was approximately $25.5 million compared with a net decrease in net assets resulting from operations of approximately $8.1 million for the three months ended March 31, 2025.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
ASC 820 clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition.
Current report — wording carried from elsewhere
In valuing our CLO debt and equity investments, we consider the indicative prices provided by a recognized industry pricing service as a primary source, and the implied yield of such prices, supplemented by actual trades executed in the market at or around period-end, as well as the indicative prices provided by brokers who arrange transactions in such investment vehicles. We also consider those instances in which the record date for an equity distribution payment falls on the last day of the period, and the likelihood that a prospective purchaser would require
Current report — wording carried from elsewhere
There was no net investment income incentive fee for the three months ended March 31, 2026 and 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
method for determining fair value. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make.
Previous report — wording carried elsewhere
• Messrs. Cohen and Rosenthal currently serve as Chief Executive Officer and President, respectively, of Oxford Lane Capital Corp., a non-diversified closed-end management investment company that invests primarily in equity and junior debt tranches of CLO vehicles, and its investment adviser, Oxford Lane Management, LLC (“Oxford Lane Management”). Oxford Funds provides Oxford Lane Capital Corp.