Stellus Capital Q2 Net Investment Income Falls to $0.26/Share; NAV Dips to $12.80
SCM sits 24% above its 52-week low of $6.83.
Summary
Stellus Capital reported Q2 2026 net investment income of $0.26 per share, at the low end of its pre-announced range, with NAV declining to $12.80 and cash reserves falling sharply.
Key Events · Earnings and Guidance · SCM
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Net Investment Income Misses
Q2 2026 net investment income of $0.26 per share, down from $0.34 in Q2 2025 and at the low end of the pre-announced $0.25–$0.27 range.
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NAV Per Share Declines
NAV per share fell to $12.80 as of June 30, 2026, from $12.82 at year-end 2025, reflecting unrealized depreciation and realized losses.
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Cash Reserves Plummet
Cash and cash equivalents dropped to $5.1 million from $25.1 million at year-end 2025, driven by debt repayments and distributions.
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Non-Accrual Investments Persist
Multiple portfolio companies remain on non-accrual status, including Advanced Barrier Extrusions, EH Real Estate Services, and J.R. Watkins, indicating ongoing credit stress.
Analysis · SCM · Unknown
Stellus Capital's Q2 2026 net investment income dropped to $0.26 per share from $0.34 a year ago, missing the pre-announced range of $0.25–$0.27 by landing at the low end. NAV per share slipped to $12.80 from $12.82 at year-end, and cash reserves shrank to $5.1 million from $25.1 million. The portfolio continues to carry significant non-accrual investments, and realized losses of $7.2 million weighed on results. The distribution of $0.34 per share remains above net investment income, raising sustainability questions.
At the time of this filing, SCM was trading at $8.47 on NYSE in the Unknown sector, with a market capitalization of approximately $245.2M. The 52-week trading range was $6.83 to $15.04. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.