Oxford Square Capital Reports Significant NAV Decline and Net Loss for 2025, Continues Dilutive ATM Program
OXSQ sits 20% above its 52-week low of $1.56.
Summary
Oxford Square Capital Corp. reported a substantial 26.5% decrease in Net Asset Value per share and a net loss from operations for the fiscal year ended December 31, 2025, alongside significant dilution from its At-The-Market offering.
Key Events · Earnings and Guidance · OXSQ
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Significant NAV Decline
Net Asset Value (NAV) per share decreased by 26.5% from $2.30 at December 31, 2024, to $1.69 at December 31, 2025.
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Shift to Net Loss from Operations
The company reported a net decrease in net assets resulting from operations of $18.7 million for 2025, compared to a net increase of $5.9 million in 2024.
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Substantial ATM Offering Dilution
15,910,780 shares of common stock were sold through an At-The-Market (ATM) offering during 2025, raising approximately $34.8 million in net capital.
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New Debt Issued at Higher Rate
Oxford Square Capital issued $74.8 million in 7.75% unsecured notes due 2030, partially offsetting the redemption of $44.8 million in 6.25% unsecured notes.
Analysis · OXSQ · Unknown
Oxford Square Capital Corp.'s annual report for fiscal year 2025 reveals a substantial 26.5% decline in Net Asset Value (NAV) per share, dropping from $2.30 to $1.69. The company also reported a net decrease in net assets from operations of $18.7 million, a significant reversal from the $5.9 million net increase in the prior year. This filing provides the full audited details following the preliminary Q4 2025 results announced in an 8-K on March 3, 2026. The company continued its At-The-Market (ATM) offering, selling 15,910,780 shares for approximately $34.8 million in net proceeds during 2025, which represents substantial dilution. Additionally, Oxford Square Capital issued $74.8 million in 7.75% unsecured notes due 2030, while redeeming $44.8 million of 6.25% notes, resulting in a net increase in debt at a higher interest rate. The ratio of qualifying assets to total assets stood at 68.8% at year-end, slightly below the 70% BDC requirement, though no new non-qualifying assets were acquired during periods below the threshold. The Board also authorized a $25 million share repurchase program, but no shares were repurchased in 2025.
At the time of this filing, OXSQ was trading at $1.87 on NASDAQ in the Unknown sector, with a market capitalization of approximately $151.9M. The 52-week trading range was $1.56 to $2.83. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.