Oxford Square Capital (NASDAQ:OXSQ) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Oxford Square Capital (NASDAQ:OXSQ) released its earnings results on Friday. The company reported $0.05 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.01, Zacks reports. Oxford Square Capital had a positive return on equity of 14.11% and a negative net margin of 92.37%.The company had revenue of $9.40 million during the quarter, compared to the consensus estimate of $8.32 million.

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

• Net investment income rose to $5.1 million, or $0.05 per share, but remained below the $0.105 quarterly distribution; NAV declined to $1.29 per share from $1.32.
• The company invested $19.9 million entirely in secondary-market CLO equity, with cash-on-cash and forward effective yields in the low-20% range.
• Investment losses narrowed substantially to approximately $1.1 million from $29.7 million in the prior quarter, while a restructured non-accrual position now includes an accruing first-lien term loan and common equity.
• The broader leveraged-loan market improved, with loan prices increasing, the trailing default rate falling to 0.97%, and the distress ratio declining to 6.87% during the quarter.

Oxford Square Capital Stock Performance

Shares of Oxford Square Capital stock opened at $1.55 on Friday. The firm has a fifty day moving average of $1.39 and a two-hundred day moving average of $1.65. The stock has a market capitalization of $144.97 million, a price-to-earnings ratio of -3.44 and a beta of 0.38. Oxford Square Capital has a 52 week low of $1.05 and a 52 week high of $2.42.

Oxford Square Capital Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Thursday, December 17th will be issued a dividend of $0.035 per share. This represents a c) dividend on an annualized basis and a yield of 27.1%. The ex-dividend date of this dividend is Thursday, December 17th. Oxford Square Capital’s payout ratio is currently -97.67%.

More Oxford Square Capital News

Here are the key news stories impacting Oxford Square Capital this week:

• Positive Sentiment: Oxford Square reported second-quarter net investment income of approximately $5.1 million, or $0.05 per share, exceeding analysts’ $0.04 consensus estimate. Total investment income was approximately $9.4 million, while quarterly expenses declined to about $4.3 million from $4.8 million in the prior quarter. Oxford Square Capital earnings press release
• Positive Sentiment: The board declared monthly common-stock distributions of $0.035 per share for October, November and December 2026, supporting the stock’s income appeal. Oxford Square Capital results and distributions announcement
• Positive Sentiment: Net assets resulting from operations rose by approximately $4.0 million during the quarter, and the company invested roughly $19.9 million in new assets, indicating continued portfolio deployment.
• Neutral Sentiment: Management’s second-quarter earnings call provided additional discussion of the results and investment activity. Oxford Square Capital Q2 2026 earnings call transcript
• Negative Sentiment: Net asset value per share fell to $1.29 from $1.32 in the prior quarter. With the stock trading above NAV, investors may be concerned about valuation and potential downside if portfolio values weaken.
• Negative Sentiment: Oxford Square issued approximately 11.3 million common shares through its at-the-market offering, raising $17.8 million. While this improves funding for investments, the added shares can dilute existing shareholders and per-share results.

Insiders Place Their Bets

In related news, COO Saul B. Rosenthal purchased 144,703 shares of Oxford Square Capital stock in a transaction dated Wednesday, May 20th. The shares were acquired at an average cost of $1.15 per share, for a total transaction of $166,408.45. Following the transaction, the chief operating officer directly owned 2,201,479 shares of the company’s stock, valued at approximately $2,531,700.85. This trade represents a 7.04% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Jonathan H. Cohen purchased 144,704 shares of Oxford Square Capital stock in a transaction dated Wednesday, May 20th. The stock was bought at an average price of $1.15 per share, for a total transaction of $166,409.60. Following the completion of the transaction, the chief executive officer directly owned 2,417,193 shares in the company, valued at $2,779,771.95. The trade was a 6.37% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 6.50% of the company’s stock.

Hedge Funds Weigh In On Oxford Square Capital

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Dynamic Technology Lab Private Ltd acquired a new position in shares of Oxford Square Capital during the 1st quarter worth about $28,000. StoneX Group Inc. bought a new stake in shares of Oxford Square Capital in the 4th quarter valued at about $29,000. Susquehanna International Group LLP bought a new stake in shares of Oxford Square Capital in the 3rd quarter valued at about $63,000. Virtu Financial LLC acquired a new stake in shares of Oxford Square Capital in the 3rd quarter valued at approximately $119,000. Finally, CANADA LIFE ASSURANCE Co raised its position in shares of Oxford Square Capital by 72.3% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 97,936 shares of the company’s stock valued at $155,000 after acquiring an additional 41,105 shares during the period. Institutional investors own 6.44% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on OXSQ shares. Wall Street Zen upgraded Oxford Square Capital from a “strong sell” rating to a “sell” rating in a report on Sunday, May 17th. Weiss Ratings cut Oxford Square Capital from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 18th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of “Sell”.

Oxford Square Capital Company Profile

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

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