Oxford Square Capital Corp. reported first‑quarter 2026 results that fell short of analyst expectations, with revenue of $8.9 million versus a consensus estimate of $9.99 million and earnings per share of $0.05 against an estimate of $0.07. The miss reflects a combination of weaker loan‑market conditions and higher investment losses that weighed on the company’s income statement.
Compared with the prior quarter, revenue declined from $10.4 million in Q4 2025, and net investment income dropped from $5.4 million to $4.1 million. Net asset value per share fell sharply from $1.69 at the end of 2025 to $1.32 at the end of the quarter, a 21.9% decline that signals significant portfolio erosion.
The sharp NAV drop was driven by realized losses of $30.7 million on the company’s loan portfolio, bringing combined unrealized and realized losses to $29.7 million for the quarter. Management cited a weaker U.S. leveraged‑loan market, rising default and distress ratios, and outflows from loan funds as key headwinds that eroded investment income.
CEO Jonathan Cohen noted that net investment income was $4.1 million ($0.05 per share) and that the company’s NAV per share stood at $1.32, down from $1.69 in the prior quarter. He also mentioned a distribution of $0.105 per share for the quarter. CFO Bruce Rubin confirmed that the earnings call would be recorded and an audio replay would be available for 30 days.
The release did not contain forward guidance, but consensus estimates for the full year project revenue of $41.8 million and EPS of $0.255, while Q2 2026 estimates are $10.38 million in revenue and $0.0612 in EPS. Oxford Square also completed an at‑the‑market offering of 7.2 million shares, raising $12.3 million in net proceeds, which adds dilution to existing shareholders.
Market reaction to the earnings was negative, with the company’s stock falling between 3.87% and 5% in pre‑market trading. The decline was driven by the EPS and revenue miss, the significant NAV contraction, and the increase in investment losses, all of which heightened investor concern about the company’s ability to generate consistent income amid a stressed loan market.
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