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

Oxford Square Capital (NASDAQ:OXSQ) issued its earnings results on Friday. The company reported $0.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.01, Zacks reports. Oxford Square Capital had a negative net margin of 92.37% and a positive return on equity of 14.11%. The business 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 OXSQ opened at $1.55 on Friday. The firm has a market cap of $144.97 million, a P/E ratio of -3.60 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. The firm’s 50-day simple moving average is $1.39 and its 200 day simple moving average is $1.65.

Oxford Square Capital Announces Dividend

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

Oxford Square Capital News Roundup

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.

Analyst Ratings Changes

OXSQ has been the topic of several research analyst reports. Weiss Ratings lowered Oxford Square Capital from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 18th. Wall Street Zen upgraded Oxford Square Capital from a “strong sell” rating to a “sell” rating in a research note on Sunday, May 17th. One research analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the company has a consensus rating of “Sell”.

Insider Activity at Oxford Square Capital

In other news, CEO Jonathan H. Cohen bought 144,704 shares of the stock in a transaction dated Wednesday, May 20th. The shares were bought at an average price of $1.15 per share, for a total transaction of $166,409.60. Following the completion of the purchase, the chief executive officer owned 2,417,193 shares in the company, valued at approximately $2,779,771.95. This trade represents a 6.37% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Saul B. Rosenthal purchased 144,703 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The shares were purchased at an average cost of $1.15 per share, with a total value of $166,408.45. Following the completion of the acquisition, the chief operating officer owned 2,201,479 shares in the company, valued at $2,531,700.85. The trade was a 7.04% increase in their position. The SEC filing for this purchase provides additional information. Company insiders own 6.50% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in OXSQ. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Oxford Square Capital during the first quarter worth $28,000. StoneX Group Inc. acquired a new position in shares of Oxford Square Capital in the fourth quarter valued at about $29,000. Susquehanna International Group LLP bought a new position in Oxford Square Capital during the third quarter worth about $63,000. Virtu Financial LLC bought a new position in Oxford Square Capital during the third quarter worth about $119,000. Finally, CANADA LIFE ASSURANCE Co raised its stake in Oxford Square Capital by 72.3% in the 3rd quarter. CANADA LIFE ASSURANCE Co now owns 97,936 shares of the company’s stock worth $155,000 after purchasing an additional 41,105 shares in the last quarter. Institutional investors own 6.44% of the company’s stock.

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.