Oxford Square Capital Reports Stable Q4 2025 Results Amid Market Volatility

Oxford Square Capital Corp. delivered a steady performance in the fourth quarter of 2025, reporting adjusted net investment income of $0.28 per share, consistent with prior guidance. The company's portfolio, focused on energy and defense-related investments, demonstrated resilience during a period of heightened volatility, particularly in energy markets. Total investment income amounted to $12.1 million, with a net investment income margin of 7.4% on a $163.5 million portfolio. The company's weighted average cost of debt remained at 5.9%, reflecting disciplined capital management. The firm maintained its quarterly dividend at $0.28 per share, underscoring confidence in ongoing cash flow generation. Management highlighted that 68% of the portfolio was allocated to secured loans, with a median loan term of 4.2 years. The company’s credit quality remained strong, with no non-accrual loans reported and an average loan-to-value ratio of 52%. These metrics reflect cautious underwriting and a conservative risk profile. Despite macroeconomic headwinds, including elevated energy prices—evidenced by CL=F trading at $84.30 per barrel in early March 2026—and increased equity market volatility, as measured by ^VIX averaging 21.4 during the quarter, Oxford Square’s assets under management remained stable at $187 million. The company reported no significant defaults or delinquencies, and its investment income was supported by a diversified base of 42 portfolio companies. The results are expected to influence investor sentiment in the business development company (BDC) sector, particularly among income-focused strategies. Market participants are monitoring Oxford Square’s dividend policy and credit quality as benchmarks amid broader concerns about rising interest rates and geopolitical tensions in energy and defense sectors.