Oxford Square Capital | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 10.24 M

Revenue: As of FY2025 Q3, the actual value is USD 10.24 M, beating the estimate of USD 9.599 M.

EPS: As of FY2025 Q3, the actual value is USD -0.03, missing the estimate of USD 0.07.

EBIT: As of FY2025 Q3, the actual value is USD 2.956 M.

Segment Revenue

• Total Investment Income: For the three months ended September 30, 2025, total investment income was approximately $10.2 million, compared to $10.3 million for the same period in 2024. For the nine months ended September 30, 2025, total investment income was approximately $29.9 million, compared to $32.5 million for the same period in 2024.

Operational Metrics

• Net Investment Income: For the three months ended September 30, 2025, net investment income was approximately $5.6 million, compared to $6.2 million for the same period in 2024. For the nine months ended September 30, 2025, net investment income was approximately $17.2 million, compared to $20.4 million for the same period in 2024.
• Net Realized Losses: For the three months ended September 30, 2025, net realized losses on investments were approximately $120,000. For the nine months ended September 30, 2025, net realized losses were approximately $14.5 million.
• Net Change in Unrealized Depreciation: For the three months ended September 30, 2025, the net change in unrealized depreciation was approximately $7.5 million. For the nine months ended September 30, 2025, the net change in unrealized depreciation was approximately $8.3 million.

Cash Flow

• Net Cash Used in Operating Activities: For the nine months ended September 30, 2025, net cash used in operating activities was approximately -$15.6 million.
• Net Cash Provided by Financing Activities: For the nine months ended September 30, 2025, net cash provided by financing activities was approximately $31.5 million.

Unique Metrics

• Weighted Average Yield on Debt Investments: As of September 30, 2025, the weighted average annualized yield on debt investments was approximately 14.60%.

Future Outlook and Strategy

• Core Business Focus: The company aims to maximize its portfolio’s total return by investing primarily in corporate debt securities and, to a lesser extent, in CLOs. The investment strategy includes maintaining a diversified portfolio with few investments exceeding 5% of the total portfolio.
• Non-Core Business: The company has received approval for a 12-month share repurchase program, allowing for the repurchase of up to $25.0 million of its outstanding common stock in the open market, which is expected to be in effect until October 30, 2026.