Oxford Square Capital Corp Sees Mixed Results in Q1 2026 Amid Declining Loan Market
The first quarter of 2026 has been a mixed bag for Oxford Square Capital Corp, with the company's Net Investment Income seeing a decline compared to the prior quarter. According to the company's recent conference call transcript, Oxford Square's Net Investment Income was approximately $4.1 million or $0.05 per share, compared to around $5.4 million or $0.07 per share in the previous quarter.
The company's Net Asset Value per share stood at $1.32, down from $1.69 for the prior quarter. Despite this decline, Oxford Square still managed to distribute $0.105 per share to its common stock shareholders during the quarter. The company's total investment income also saw a decrease, falling to approximately $8.9 million compared to around $10.4 million in the previous quarter.
On the other hand, the company recorded combined net unrealized and realized losses on investments of approximately $29.7 million or $0.34 per share, up from combined net unrealized and realized losses on investments of around $18.3 million or $0.22 per share for the prior quarter. This increase in losses was likely due to the decline in the U.S. loan market, which saw prices drop 1.69% compared to the previous quarter.
The company's investment activity during the quarter consisted of purchases of approximately $15.8 million and repayments of around $400,000. Additionally, Oxford Square issued a total of around 7.2 million shares of its common stock pursuant to an at-the-market offering, resulting in net proceeds of around $12.3 million.
In a sign of the company's confidence in the future, Oxford Square declared monthly distributions of $0.035 per share for each of the months ending July, August, and September of 2026. This move demonstrates the company's commitment to providing value to its shareholders despite the challenging market conditions.
One area where Oxford Square is showing optimism is in its investments in AI companies. The company made two new investments in Invisible Technologies Inc. and Infinity Constellation Inc., reflecting its interest and conviction that AI is creating meaningful opportunities across many industries and business models.
Oxford Square's CEO, Jonathan H. Cohen, stated, "We're intrigued by the pace of AI innovation and its potential reordering of the global economy." The company's investments in these companies position its portfolio to participate in this important secular theme.
