Oxford Square Capital (NASDAQ:OXSQ) Announces Earnings Results

Oxford Square Capital (NASDAQ:OXSQ) released its quarterly earnings data on Friday. The company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.04 by $0.01, Zacks reports. Oxford Square Capital had a positive return on equity of 14.11% and a negative net margin of 92.37%.

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 Up 7.6%

OXSQ traded up $0.11 on Friday, hitting $1.55. 3,458,532 shares of the company traded hands, compared to its average volume of 1,698,857. The company has a 50 day moving average of $1.38 and a 200-day moving average of $1.66. The stock has a market capitalization of $144.97 million, a PE ratio of -3.60 and a beta of 0.38. Oxford Square Capital has a 12-month low of $1.05 and a 12-month high of $2.42.

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 given a $0.035 dividend. This represents a c) annualized dividend and a yield of 27.1%. The ex-dividend date is Thursday, December 17th. Oxford Square Capital’s payout ratio is -97.67%.

Insider Activity at Oxford Square Capital

In related news, COO Saul B. Rosenthal purchased 144,703 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The stock was 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 directly owned 2,201,479 shares in the company, valued at $2,531,700.85. This trade represents a 7.04% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Jonathan H. Cohen acquired 144,704 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was purchased at an average price of $1.15 per share, for a total transaction of $166,409.60. Following the completion of the transaction, the chief executive officer owned 2,417,193 shares in the company, valued at $2,779,771.95. The trade was a 6.37% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 6.50% of the company’s stock.

Hedge Funds Weigh In On Oxford Square Capital

Large investors have recently bought and sold shares of the company. Squarepoint Ops LLC lifted its stake in shares of Oxford Square Capital by 167.2% in the 3rd quarter. Squarepoint Ops LLC now owns 512,153 shares of the company’s stock worth $814,000 after acquiring an additional 320,467 shares during the period. Millennium Management LLC increased its stake in shares of Oxford Square Capital by 65.4% during the third quarter. Millennium Management LLC now owns 763,282 shares of the company’s stock worth $1,214,000 after acquiring an additional 301,741 shares during the period. Legal & General Group Plc raised its holdings in Oxford Square Capital by 4.5% during the second quarter. Legal & General Group Plc now owns 468,312 shares of the company’s stock worth $1,042,000 after purchasing an additional 20,205 shares in the last quarter. Marshall Wace LLP purchased a new position in Oxford Square Capital during the second quarter worth about $332,000. Finally, Jane Street Group LLC lifted its position in Oxford Square Capital by 68.0% in the second quarter. Jane Street Group LLC now owns 130,609 shares of the company’s stock valued at $291,000 after purchasing an additional 52,857 shares during the period. Hedge funds and other institutional investors own 6.44% of the company’s stock.

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.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. Wall Street Zen raised Oxford Square Capital from a “strong sell” rating to a “sell” rating in a report on Sunday, May 17th. Weiss Ratings cut shares of Oxford Square Capital from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 18th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat, Oxford Square Capital currently has a consensus rating of “Sell”.

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.