0001213900-26-050934
SEC filingA challenging quarter marked by a large net loss driven by realized losses on investments, though net investment income remained positive.
For the three months ended March 31, 2026, Oxford Square Capital Corp. reported a net loss of $25.5 million, compared to a net loss of $8.1 million in the same period last year. The significant increase in net loss was primarily driven by realized losses on investments, including a loan restructuring and CLO extinguishment. 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.
Net investment income decreased as investment income declined and interest expense rose. The increase in expenses was primarily due to an increase in interest expense. Additionally, higher legal fees contributed to the expense increase, partially offset by lower consulting fees.
Net cash used in operating activities was $14.4 million for the three months ended March 31, 2026, compared to net cash provided by operating activities of $6.0 million in the prior year period. The change reflects increased investment purchases and other operating activities.
The frequency or volume of repayments may fluctuate significantly from period to period. The company may not be able to achieve operating results that will allow it to make distributions at a specific level or to increase the amount of these distributions from time to time.
Oxford Square Management, Oxford Lane Management, Oxford Park Management and Oxford Gate Management are subject to a written policy with respect to the allocation of investment opportunities among the Company, Oxford Lane Capital Corp., Oxford Park Income Fund, Inc., and the Oxford Gate Funds. Important assumptions include the ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. The company may elect to value a recently purchased investment at cost.