Oxford Square Capital Corp.
For the period ended Jun 30, 2026. Filed Aug 10, 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.
Jun 30, 2026 · Filed Aug 10, 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 2026-03-31; filed 2026-05-01.
0001213900-26-050934
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001213900-26-087243
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 151 previous paragraphs and 154 current paragraphs.
97 unchanged; 47 reworded; 6 added; 4 removed; 3 previous and 4 current paragraphs rearranged.
Tables are not compared: 12 previous and 14 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 (6)
Current report
• disruptions related to tariffs and other trade or sanctions issues;
Current report
• the impact of interruptions in the supply chain on our portfolio companies, including potential shortages of oil and other energy sources;
Current report
There were no net investment income incentive fees for the three and six months ended June 30, 2026 and 2025.
Current report
Excise tax was approximately $(524,000) for the three months ended June 30, 2026, which represents a reversal of 2025 estimated excise tax as well as 2026 estimated excise tax, as the Company projects that there will not be any excise tax due for these periods. This compared to $25,000 for the three months ended June 30, 2025. Excise tax was approximately $(419,000) for the six months ended June 30, 2026, which represents a reversal of previously accrued 2025 excise tax, as the Company projects that there will not be any excise tax due for this period. This compared to $145,000 for the six months ended June 30, 2025.
Current report
For the six months ended June 30, 2026, we recognized net realized losses on investments of approximately $36.0 million.
Current report
Net investment income for the three months ended June 30, 2026 and 2025 was approximately $5.1 million and $5.5 million, respectively. Net investment income for the six months ended June 30, 2026 and 2025 was approximately $9.3 million and $11.6 million, respectively. The decreases in net investment income were primarily due to a decrease in income from securitization vehicles and investments as well as an increase in interest expense, partially offset by a decrease in excise tax.
Removed paragraphs (4)
Previous report
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 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.
Previous 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.
Previous report
Net Decrease Net Assets Resulting from Operations
Reworded paragraphs (47)
Previous wording
• 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 wording
• general economic, political and industry trends and other external factors, including government shutdowns and uncertainty surrounding international armed conflicts and war and the financial and political stability of the United States and other countries;
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 investments, if any, exceeding 5.0% of the total portfolio. As of March 31, 2026, our debt investments
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 June 30, 2026, our debt investments (including convertible notes
Previous 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.
Current wording
and excluding non-accrual loans) had stated interest rates of between 6.14% and 17.00% and maturity dates of between 25 and 85 months. In addition, our portfolio had a weighted average annualized yield on debt investments of approximately 14.95% as of June 30, 2026.
Previous 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.
Current wording
During the three months ended June 30, 2026, U.S. loan market performance improved versus the three months ended March 31, 2026. U.S. loan prices, as defined by the Morningstar/LSTA US Leveraged Loan Index, increased from 94.63% of par as of March 31, 2026 to 94.96% of par as of June 30, 2026.
Previous 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.
Current wording
As of June 30, 2026, the Company’s Board of Directors approved the fair value of the Company’s investment portfolio of approximately $252.8 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, 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.
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 and six months ended June 30, 2026 for more information on our critical accounting policies.
Previous 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:
Current 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:
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
Current 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
Previous 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.
Current wording
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.
Previous 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).
Current wording
The total fair value of our investment portfolio was approximately $252.8 million and $251.7 million as of June 30, 2026, and December 31, 2025, respectively. The increase in the value of investments during the six month period ended June 30, 2026, was due primarily to investment acquisitions of approximately $35.7 million, net change in unrealized appreciation of approximately $5.1 million (which incorporates reductions to CLO equity cost value of approximately $6.7 million), accretion of discounts on investments of approximately $2.1 million, and PIK income of approximately $1.7 million, partially offset by net realized losses of approximately $36.0 million and debt repayments of approximately $0.9 million.
Previous wording
A reconciliation of the investment portfolio for the three months ended March 31, 2026 and the year ended December 31, 2025 follows:
Current wording
A reconciliation of the investment portfolio for the six months ended June 30, 2026 and the year ended December 31, 2025 follows:
Previous 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.
Current wording
(1) For the six months ended June 30, 2026, the reductions to CLO equity cost value of approximately $6.7 million represented the distributions received, or entitled to be received, on our investments held in CLO equity subordinated and income notes of approximately $13.3 million, plus the amortization of cost on our CLO fee notes of approximately $74,000, less the effective yield interest income recognized on our CLO equity subordinated and income notes of approximately $6.7 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 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.
Current wording
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 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.
Current wording
For the six months ended June 30, 2026, we did not sell any portfolio investments. For the year ended December 31, 2025, we recognized proceeds from the sales of securities of approximately $10.7 million. Also, during the six months ended June 30, 2026 and the year ended December 31, 2025, we had loan principal repayments of approximately $0.9 million and $47.6 million, respectively.
Previous 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.
Current wording
As of June 30, 2026, we had investments in senior secured debt securities of, or loans to, 20 portfolio companies, with a fair value of approximately $147.2 million, CLO equity investments of approximately $90.3 million, and equity and other investments of approximately $15.4 million.
Previous wording
The following table indicates the quarterly portfolio investment activity for the past five quarters:
Current wording
The following table indicates the quarterly portfolio investment activity for the past six 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 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.
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 June 30, 2026 and December 31, 2025, we held qualifying assets that represented 69.4% 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 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.
Current wording
We have adopted a credit grading system to monitor the quality of our debt investment portfolio. As of June 30, 2026 and December 31, 2025, our portfolio had a weighted average grade of 2.1 and 2.2, respectively, based upon the fair value of the debt investments in the portfolio. Equity securities, convertible debt, and investments in CLOs are not graded.
Previous 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.
Current 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.
Previous 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.
Current wording
Set forth below is a comparison of our results of operations for the three and six months ended June 30, 2026 to the three and six months ended June 30, 2025.
Previous 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:
Current wording
Investment income for the three months ended June 30, 2026 and 2025 was approximately $9.4 million and $9.5 million, respectively. Investment income for the six months ended June 30, 2026 and 2025 was approximately $18.3 million and $19.7 million, respectively. The following tables set forth the components of investment income for the three and six months ended June 30, 2026 and 2025:
Previous wording
(2) For the three months ended March 31, 2025, the Company earned approximately $131,000 of PIK fees.
Current wording
(2) For the six months ended June 30, 2025, we earned approximately $131,000 of PIK fees.
Previous 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.
Current wording
The decrease in total investment income for the three and six months ended June 30, 2026 was primarily due to a decrease in income from securitization vehicles and investments for the three and six months ended June 30, 2026.
Previous 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.
Current wording
The total principal value of income producing debt investments (including convertible debt) as of June 30, 2026 and 2025 was approximately $188.6 million and $183.2 million, respectively. As of June 30, 2026, our debt investments had a range of stated interest rates of 6.14% and 17.00% and maturity dates of between 25 and 85 months compared to a range of stated interest rates of 7.08% and 12.70% and maturity dates between 4 and 80 months as of June 30, 2025. In addition, our total debt portfolio had a weighted average yield on debt investments of approximately 14.95% as of June 30, 2026, compared to approximately 14.46% as of June 30, 2025. As of June 30, 2026 and 2025, we had no debt investments on non-accrual status.
Previous 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.
Current wording
Income from securitization vehicles for the three months ended June 30, 2026 and 2025, was approximately $3.5 million and $3.9 million, respectively. Income from securitization vehicles for the six months ended June 30, 2026 and 2025, was approximately $6.7 million and $7.8 million, respectively. The total principal outstanding on our investments in CLOs as of June 30, 2026 and 2025, was approximately $390.7 million and $330.0 million, respectively. The weighted average yield on CLO equity investments as of June 30, 2026 and 2025, was approximately 8.14% and 8.85%, respectively.
Previous 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.
Current wording
Total expenses for the three months ended June 30, 2026 and 2025, were approximately $4.3 million and $4.0 million, respectively. Total expenses for the six months ended June 30, 2026 and 2025, were approximately $9.1 million and $8.1 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, as well as related excise tax reversals. That increase for the three and six months ended June 30, 2026 was primarily due to an increase in interest expense.
Previous wording
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 wording
The base management fee for both the three months ended June 30, 2026 and 2025 was approximately $1.0 million. The base management fee for the six months ended June 30, 2026 was approximately $2.0 million compared with $2.1 million for the six months ended June 30, 2025.
Previous 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”).
Current wording
Interest expense for the three and six months ended June 30, 2026, was approximately $2.8 million and $5.6 million, respectively, which 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 and six months ended June 30, 2025, was approximately $1.9 million and $3.9 million, respectively, which 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 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.
Current wording
Professional fees, consisting of legal, consulting, valuation, audit and tax fees, were approximately $441,000 for the three months ended June 30, 2026, compared to approximately $444,000 for the three months ended June 30, 2025. Professional fees were approximately $788,000 for the six months ended June 30, 2026, compared to approximately $768,000 for the six months ended June 30, 2025.
Previous 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.
Current wording
Compensation expense was approximately $232,000 for the three months ended June 30, 2026, compared to approximately $228,000 for the three months ended June 30, 2025. Compensation expense was approximately $479,000 for the six months ended June 30, 2026, compared to approximately $468,000 for the six months ended June 30, 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, 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.
Current 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 $359,000 for the three months ended June 30, 2026, compared to approximately $360,000 for the three months ended June 30, 2025. General and administrative expenses were approximately $671,000 for the six months ended June 30, 2026, compared to approximately $715,000 for the six months ended June 30, 2025. Office supplies, facilities costs and other expenses are allocated to us under the terms of the Administration Agreement.
Previous 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.
Current wording
There was no net investment income incentive fee (“Net Investment Income Incentive Fee”) recorded for the three and six months ended June 30, 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 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.
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 and six months ended June 30, 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 months ended March 31, 2026 and 2025, 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 and six months ended June 30, 2026 and 2025, such an accrual was not required under the terms of the Investment Advisory Agreement.
Previous wording
For the three months ended March 31, 2025, we recognized net realized losses of approximately $12.2 million.
Current wording
For the three months ended June 30, 2026, we recognized net realized losses on investments of approximately $5.2 million.
Previous 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):
Current wording
For the three months ended June 30, 2026, our net change in unrealized appreciation was approximately $4.1 million, composed of $9.4 million in gross unrealized appreciation, $7.8 million in gross unrealized depreciation and approximately $2.5 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 $2.8 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 $6.3 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 $3.5 million. The most significant components of the net change in unrealized appreciation during the three months ended June 30, 2026, were as follows (in millions):
Previous 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):
Current wording
For the six months ended June 30, 2026, our net change in unrealized appreciation was approximately $5.1 million, composed of $2.8 million in gross unrealized appreciation, $30.4 million in gross unrealized depreciation and approximately $32.8 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 $6.7 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 $13.3 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 $6.7 million. The most significant components of the net change in unrealized appreciation during the six months ended June 30, 2026, were as follows (in millions):
Previous wording
For the three months ended March 31, 2026, the net decrease in net assets resulting from operations per common share was $0.29 (basic and diluted), compared to a net decrease in net assets resulting from operations per share of $0.12 (basic and diluted) for the three months ended March 31, 2025.
Current wording
For the three months and six months ended June 30, 2026, the net increase in net assets resulting from net investment income per common share was $0.05 and $0.10 (basic and diluted), compared to the net increase in net assets resulting from net investment income per share of $0.08 and $0.16 (basic and diluted) for the three and six months ended June 30, 2025.
Previous 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.
Current wording
Net increase in net assets resulting from operations for the three months ended June 30, 2026 was approximately $4.0 million compared with a net increase in net assets resulting from operations of approximately $4.4 million for the three months ended June 30, 2025.
Previous 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.
Current wording
For the three months ended June 30, 2026, the net increase in net assets resulting from operations per common share was $0.04 (basic and diluted), compared to a net increase in net assets resulting from operations per share of $0.06 (basic and diluted) for the three months ended June 30, 2025. For the six months ended June 30, 2026, the net decrease in net assets resulting from operations per common share was $0.23 (basic and diluted), compared to a net decrease in net assets resulting from operations per share of $0.05 (basic and diluted) for the six months ended June 30, 2025.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
During the six months ended June 30, 2026 we purchased approximately $35.7 million in portfolio investments, including additional investments of approximately $3.0 million in existing portfolio companies and approximately $32.7 million in new portfolio companies.
Current report — wording carried from elsewhere
Net Increase in Net Assets Resulting from Operations
Current report — wording carried from elsewhere
Net decrease in net assets resulting from operations for the six months ended June 30, 2026 was approximately $21.5 million compared with a net decrease in net assets resulting from operations of approximately $3.7 million for the six months ended June 30, 2025.
Current report — wording carried from elsewhere
us, companies controlled by us and our employees and directors. We will not enter into any agreements unless and until we are satisfied that doing so will not raise concerns under the 1940 Act or, if such concerns exist, we have taken appropriate actions to seek board review and approval or exemptive relief for such transaction. Our Board reviews these procedures on an annual basis.
Rearranged previous paragraphs (3)
Previous report — wording carried 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.
Previous report — wording carried elsewhere
There was no net investment income incentive fee for the three months ended March 31, 2026 and 2025.
Previous report — wording carried elsewhere
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.