Stellus Capital Previews Q2: NII of $0.25–$0.27/Share, NAV Up to $12.84, and a New SBA License
SCM is trading near its 52-week low of $6.83 (4.0% above the low).
Summary
Stellus Capital pre-announced Q2 2026 net investment income of $0.25–$0.27 per share and NAV of $12.76–$12.84, up from $12.54. The company also received an SBA license for a third SBIC, providing access to up to $250 million in debentures, and repurchased $2.4 million in shares.
Key Events · Earnings and Guidance · SCM
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Preliminary Q2 NII of $0.25-$0.27/Share
Net investment income per share is estimated between $0.25 and $0.27, a significant improvement from the prior quarter's sharp decline.
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NAV Rises to $12.76-$12.84
Net asset value per share increased $0.22–$0.30 (1.8%–2.4%) from $12.54 at March 31, 2026, driven by portfolio appreciation and accretive buybacks.
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Annualized ROE Exceeds 17%
The company estimates an annualized return on equity of more than 17% for Q2 2026, reflecting strong portfolio performance.
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Non-Accruals Improve
Non-accrual investments fell to 5.4% of fair value (8.5% at cost) as one portfolio company returned to accrual status with no new additions.
Analysis · SCM · Unknown
Preliminary Q2 2026 results from Stellus Capital point to a meaningful rebound in net investment income and net asset value, fueled by portfolio appreciation and share buybacks. With NAV climbing as much as 2.4% and annualized ROE topping 17%, fundamentals are strengthening after a difficult first quarter. The newly granted SBA license for a third SBIC unlocks up to $250 million in low-cost debentures, bolstering the company's growth capital. Trading near its 52-week low, the stock could see a sentiment shift on these positive early numbers—though they remain preliminary, with final results due August 10.
At the time of this filing, SCM was trading at $7.10 on NYSE in the Unknown sector, with a market capitalization of approximately $205.2M. The 52-week trading range was $6.83 to $15.04. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.