Core Viewpoint - Oxford Square Capital Corp. reported its financial results for the quarter ended September 30, 2025, showing a slight decrease in net asset value and net investment income compared to the previous quarter, while total investment income increased. Financial Results - Net asset value (NAV) per share as of September 30, 2025, was $1.95, down from $2.06 on June 30, 2025 [1] - Net investment income (NII) for the quarter was approximately $5.6 million, or $0.07 per share, compared to $5.5 million, or $0.08 per share, for the previous quarter [1] - Total investment income for the quarter was approximately $10.2 million, an increase from approximately $9.5 million in the prior quarter [1] Investment Income Breakdown - Investment income from debt investments was $5.2 million, CLO equity investments contributed $4.3 million, and other income was $0.8 million [1] - Weighted average yield of debt investments was 14.6%, up from 14.5% as of June 30, 2025 [1] - Weighted average effective yield of CLO equity investments increased to 9.7% from 8.8% [1] Expenses and Losses - Total expenses for the quarter were approximately $4.7 million, compared to $4.0 million for the previous quarter [1] - The company recorded a net decrease in net assets resulting from operations of approximately $2.1 million, which included net realized losses of approximately $153,000 and net unrealized depreciation of approximately $7.5 million [1] Shareholder Actions - The Board of Directors declared distributions of $0.035 per share for January, February, and March 2026 [1] - A 12-month share repurchase program was authorized, allowing the company to repurchase up to $25 million of its common stock [2] Share Issuance - Approximately 5.4 million shares of common stock were issued under an "at-the-market" offering, resulting in net proceeds of approximately $11.8 million [1] Additional Information - A conference call to discuss the third-quarter results was scheduled for November 4, 2025 [2] - Further details regarding quarterly results were made available on the company's investor relations website [3]

Core Viewpoint - Oxford Square Capital Corp. is set to discuss its third quarter 2025 earnings in a conference call scheduled for November 4, 2025, at 9:00 AM Eastern time [1] Company Overview - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles [2] - The company also engages in CLO investments that may include warehouse facilities, which are financing structures designed to aggregate loans for the formation of CLO vehicles [2]

Group 1 - The article provides a review of the preferred stock and baby bond market, highlighting both individual news and broader market trends [1] - It emphasizes the importance of yield and risk management in investment strategies, particularly in the context of income portfolios [1] - The content encourages the use of interactive tools for navigating various investment markets, including BDC, CEF, OEF, preferreds, and baby bonds [2] Group 2 - The article promotes investor guides specifically focused on CEFs, preferreds, and PIMCO CEFs, indicating a resource for deeper understanding [2] - It offers a no-risk trial for potential investors to explore the services provided, suggesting a strategy to attract new clients [2]

Group 1 - The article discusses a newly listed fixed-income security on the exchange, specifically focusing on Oxford Square Capital [1] - It invites active investors to join a free trial and engage in discussions within a chat room of sophisticated traders and investors [1] Group 2 - The article emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [2] - It clarifies that the analysts are third-party authors, which may include both professional and individual investors who might not be licensed or certified [2]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited interim financial statements, showing decreased assets, NAV per share, and net investment income [Statements of Assets and Liabilities](index=4&type=section&id=Statements%20of%20Assets%20and%20Liabilities) Total assets and net assets decreased to **$274.8 million** and **$157.4 million**, with NAV per share at **$2.06** Statements of Assets and Liabilities Summary (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total Investments (at fair value) | $241,507 | $260,853 | | Total Assets | $274,847 | $299,731 | | Total Liabilities | $117,424 | $139,065 | | **Total Net Assets** | **$157,423** | **$160,665** | | **Net Asset Value per Share** | **$2.06** | **$2.30** | [Schedule of Investments](index=5&type=section&id=Schedule%20of%20Investments) The **$241.5 million** investment portfolio was primarily Senior Secured Notes (**60.8%**) and CLO Equity (**37.0%**) Portfolio Composition by Asset Class (at Fair Value) | Asset Class | June 30, 2025 (Fair Value) | % of Total | Dec 31, 2024 (Fair Value) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Senior Secured Notes | $146.8M | 60.8% | $150.7M | 57.8% | | CLO Equity | $89.3M | 37.0% | $104.6M | 40.1% | | Equity and Other Investments | $5.3M | 2.2% | $5.6M | 2.1% | | **Total** | **$241.5M** | **100.0%** | **$260.9M** | **100.0%** | - As of June 30, 2025, the company's qualifying assets under Section 55(a) of the 1940 Act represented **67.6%** of its total assets, which is below the required **70%** threshold for acquiring new non-qualifying assets[28](index=28&type=chunk) [Statements of Operations](index=31&type=section&id=Statements%20of%20Operations) Total investment income decreased to **$19.7 million**, leading to a **$3.7 million** net decrease in net assets from operations Key Operational Results (Unaudited, in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Investment Income | $19,683 | $22,123 | | Total Expenses | $8,080 | $7,863 | | **Net Investment Income** | **$11,603** | **$14,259** | | Net Realized Losses | ($14,526) | ($38,535) | | Net Change in Unrealized (Depreciation)/Appreciation | ($814) | $27,766 | | **Net (Decrease)/Increase in Net Assets from Operations** | **($3,736)** | **$3,491** | | Net Investment Income per Share | $0.16 | $0.24 | | Net (Decrease)/Increase in Net Assets per Share | ($0.05) | $0.06 | [Statements of Changes in Net Assets](index=33&type=section&id=Statements%20of%20Changes%20in%20Net%20Assets) Net assets decreased by **$3.2 million** due to operational losses and distributions, partially offset by capital share transactions Reconciliation of Net Assets (Six Months Ended June 30, 2025, in thousands) | Item | Amount | | :--- | :--- | | Net Assets at Beginning of Period | $160,665 | | Net (Decrease) in Net Assets from Operations | ($3,736) | | Distributions to Stockholders | ($15,058) | | Net Increase from Capital Share Transactions | $15,552 | | **Net Assets at End of Period** | **$157,423** | [Statements of Cash Flows](index=34&type=section&id=Statements%20of%20Cash%20Flows) Net cash from operating activities was **$4.3 million**, financing used **$9.5 million**, resulting in a **$5.1 million** net cash decrease Summary of Cash Flows (Six Months Ended, in thousands) | Cash Flow Activity | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $4,329 | $26,661 | | Net Cash from Financing Activities | ($9,461) | ($2,387) | | **Net (Decrease)/Increase in Cash** | **($5,132)** | **$24,274** | | Cash at End of Period | $29,794 | $30,014 | [Notes to Financial Statements](index=35&type=section&id=Notes%20to%20Financial%20Statements) Details accounting policies, Level 3 investment valuation, borrowings, and subsequent events, with a **235%** asset coverage ratio - The company's investment portfolio is valued using Level 3 inputs due to the general illiquidity of the market for its investments[77](index=77&type=chunk)[78](index=78&type=chunk) - The Board of Directors determines the fair value quarterly, with assistance from management and third-party valuation firms[77](index=77&type=chunk)[78](index=78&type=chunk) - As of June 30, 2025, the company's asset coverage ratio for borrowed amounts was **235%**, well above the **150%** minimum required by the 1940 Act[139](index=139&type=chunk) - Subsequent to quarter-end, the company redeemed an additional **$10.0 million** of its **6.25%** Unsecured Notes on July 18, 2025[217](index=217&type=chunk) - The company completed a public offering of approximately **$65.0 million** of **7.75%** Unsecured Notes due 2030 on August 7, 2025[218](index=218&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=66&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting a **$241.5 million** portfolio, decreased investment income, and an improved **2.2** credit grade [Portfolio Composition and Investment Activity](index=70&type=section&id=Portfolio%20Composition%20and%20Investment%20Activity) The investment portfolio's fair value decreased to **$241.5 million** due to losses and repayments, with a **14.46%** weighted average debt yield Reconciliation of Investment Portfolio (in millions) | Description | Six Months Ended June 30, 2025 | | :--- | :--- | | Beginning Portfolio Value | $260.9 | | Portfolio Investments Acquired | $16.0 | | Debt Repayments & Sales | ($19.6) | | Net Realized Losses | ($14.5) | | Net Change in Unrealized Depreciation | ($0.8) | | Other (PIK, Accretion, etc.) | ($1.5) | | **Ending Portfolio Value** | **$241.5** | - The weighted average annualized yield on debt investments was approximately **14.46%** as of June 30, 2025[227](index=227&type=chunk) [Portfolio Grading](index=72&type=section&id=Portfolio%20Grading) The debt portfolio's weighted average grade improved to **2.2**, with **82.6%** of investments rated Grade 2 for full repayment Debt Portfolio Grading by Fair Value (June 30, 2025) | Grade | Summary Description | Fair Value | % of Debt Portfolio | | :--- | :--- | :--- | :--- | | 1 | Outperforming expectations | $0M | 0.0% | | 2 | Full repayment expected | $121.3M | 82.6% | | 3 | Closer monitoring required | $25.5M | 17.4% | | 4 | Loss of interest expected | $0M | 0.0% | | 5 | Loss of principal expected | $0M | 0.0% | [Results of Operations](index=73&type=section&id=Results%20of%20Operations) Total investment income decreased to **$19.7 million**, leading to a **$3.7 million** net decrease in net assets from operations - The decrease in total investment income for the six months ended June 30, 2025, was primarily due to a decrease in interest income from debt investments[259](index=259&type=chunk) - For the six months ended June 30, 2025, the company recognized net realized losses on investments of approximately **$14.5 million**[274](index=274&type=chunk) - The company also recognized a net change in unrealized depreciation of approximately **$0.8 million** for the six months ended June 30, 2025[275](index=275&type=chunk) [Liquidity and Capital Resources](index=77&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$29.8 million** in cash, sourced liquidity from operations and ATM proceeds, maintaining a **235%** asset coverage ratio - Cash and cash equivalents stood at approximately **$29.8 million** as of June 30, 2025[282](index=282&type=chunk) - The company raised a net total of approximately **$15.1 million** during the first six months of 2025 through its At-the-Market (ATM) stock offering program[286](index=286&type=chunk) Contractual Obligations (as of June 30, 2025, in millions) | Obligation | Principal Amount | Less than 1 year | 1 – 3 years | 3 – 5 years | | :--- | :--- | :--- | :--- | :--- | | 6.25% Unsecured Notes | $34.8 | $34.8 | $— | $— | | 5.50% Unsecured Notes | $80.5 | $— | $— | $80.5 | | **Total** | **$115.3** | **$34.8** | **$—** | **$80.5** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with a **100 basis point** rate change impacting annual investment income by **4.8%** Hypothetical Interest Rate Change Impact on Investment Income | Hypothetical Change in Base Rates | Estimated Percentage Change in Investment Income | | :--- | :--- | | Up 300 basis points | 14.4% | | Up 100 basis points | 4.8% | | Down 100 basis points | (4.8)% | | Down 300 basis points | (14.2)% | [Item 4. Controls and Procedures](index=84&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of June 30, 2025, with no material internal control changes - Management concluded that disclosure controls and procedures were effective as of June 30, 2025[314](index=314&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[316](index=316&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=86&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - As of the reporting date, the company is not a party to any material legal proceedings[318](index=318&type=chunk) [Item 1A. Risk Factors](index=86&type=section&id=Item%201A.%20Risk%20Factors) No material changes to previously disclosed risk factors were reported for the six months ended June 30, 2025 - No material changes to risk factors were reported for the six months ended June 30, 2025[319](index=319&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=86&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued **106,066** unregistered shares valued at **$238,263** via its distribution reinvestment plan in Q2 2025 - In Q2 2025, **106,066** shares were issued via the distribution reinvestment plan, valued at approximately **$238,263**[320](index=320&type=chunk) [Item 3. Defaults Upon Senior Securities](index=86&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported [Item 4. Mine Safety Disclosures](index=86&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company [Item 5. Other Information](index=86&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during Q2 2025 [Item 6. Exhibits](index=87&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the report, including CEO and CFO certifications

Financial Data and Key Metrics Changes - For the quarter ended June 30, 2025, the company's net investment income was approximately $5.5 million or $0.08 per share, a decrease from approximately $6.1 million or $0.09 per share in the prior quarter [4] - The net asset value per share decreased to $2.06 compared to $2.90 in the prior quarter [4] - Total investment income for the second quarter was approximately $9.5 million, down from approximately $10.2 million in the prior quarter [5] - The company recorded combined net unrealized and realized losses on investments of approximately $1.1 million or $0.01 per share, compared to losses of approximately $14.2 million or $0.20 per share in the prior quarter [5] Business Line Data and Key Metrics Changes - The investment activity during the quarter included repayments of approximately $233,000 [5] - The company issued approximately 4.9 million shares of common stock in an aftermarket offering, resulting in net proceeds of approximately $11.6 million [5] Market Data and Key Metrics Changes - The US loan market performance strengthened, with US loan prices increasing from 96.31% of par as of March 31 to 97.07% of par as of June 30 [6][7] - The twelve-month trailing default rate for the loan index increased to 1.11% by principal amount at the end of the quarter from 0.82% at the end of March [7] - The distressed ratio, defined as a percentage of loans with prices below 80% of par, ended the quarter at 3.06% compared to 3.21% at the end of March [8] Company Strategy and Development Direction - The company announced a public offering of $65 million in aggregate principal amount of unsecured notes, which will be used for investments and repayment of existing debt [6] - The company focuses on portfolio management strategies designed to maximize long-term total returns [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the US loan market showed signs of improvement compared to the prior quarter, indicating a potentially favorable operating environment [6] - The company has historically been able to take a longer-term view towards its investment strategy as a permanent capital vehicle [10] Other Important Information - The Board of Directors declared monthly distributions of $0.035 per share for each of the months ending October, November, and December 2025 [5] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without any inquiries from participants [13][14]

Financial Performance - Net investment income per share was $008 in Q2 2025, compared to $013 in Q2 2024[7] - Distributions declared and paid were $0105 per share for each quarter from Q2 2024 to Q2 2025[7] - Net asset value was $206 per share at the end of Q2 2025, a decrease from $243 in Q2 2024[7] - Total fair value of investments was $2415 million in Q2 2025, down from $2521 million in Q2 2024[7] - Net assets were $1574 million in Q2 2025, compared to $1524 million in Q2 2024[7] Portfolio Composition and Activity - New investments were $0 million in Q2 2025, a significant decrease from $288 million in Q2 2024[9] - The portfolio consisted of 50% first-lien secured debt, 11% second-lien secured debt, 37% CLO equity, and 2% other investments as of Q2 2025[9] - The weighted average yield of total investments at current cost was 116% in Q2 2025, compared to 118% in Q2 2024[9] - 608% of the company's investments are in senior secured debt[22] Debt and Non-Accrual Status - Principal amount of debt outstanding was $1153 million in Q2 2025[7] - Total non-accrual investments at fair value were $50 million in Q2 2025[28]

[Key Financial and Operational Highlights for Q2 2025](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights%20for%20Q2%202025) Q2 2025 highlights include a NAV per share of $2.06, NII of $5.5 million, and $9.5 million in total investment income Key Financial Metrics (Q2 2025 vs Q1 2025) | Metric | Q2 2025 (ended June 30) | Q1 2025 (ended March 31) | | :--- | :--- | :--- | | **Net Asset Value (NAV) per Share** | $2.06 | $2.09 | | **Net Investment Income (NII)** | ~$5.5 million | ~$6.1 million | | **NII per Share** | $0.08 | $0.09 | | **Total Investment Income** | ~$9.5 million | ~$10.2 million | Q2 2025 Investment Income Breakdown | Source | Income Amount ($) | | :--- | :--- | | Debt Investments | $5.1 million | | CLO Equity Investments | $3.9 million | | Other Income | $0.6 million | Weighted Average Investment Yields (at cost) | Investment Type | June 30, 2025 (%) | March 31, 2025 (%) | | :--- | :--- | :--- | | Debt Investments | 14.5% | 14.3% | | CLO Equity Investments (Effective Yield) | 8.8% | 9.0% | | CLO Equity Investments (Cash Distribution Yield) | 13.8% | 15.5% | - The net increase in net assets from operations for Q2 2025 was approximately **$4.4 million**, composed of **$5.5 million** in NII, offset by **$2.4 million** in net realized losses, and supplemented by **$1.3 million** in net unrealized appreciation[1](index=1&type=chunk) - During the second quarter, the company issued approximately **4.9 million** shares of common stock through an "at-the-market" offering, resulting in net proceeds of approximately **$11.6 million**[1](index=1&type=chunk)[2](index=2&type=chunk) [Declaration of Common Stock Distributions](index=1&type=section&id=Declaration%20of%20Common%20Stock%20Distributions) The Board declared monthly common stock distributions of $0.035 per share for October, November, and December 2025 Common Stock Distribution Schedule | Month Ending | Record Date | Payment Date | Amount Per Share ($) | | :--- | :--- | :--- | :--- | | October 31, 2025 | October 17, 2025 | October 31, 2025 | $0.035 | | November 30, 2025 | November 14, 2025 | November 28, 2025 | $0.035 | | December 31, 2025 | December 17, 2025 | December 31, 2025 | $0.035 | [Financial Statements](index=3&type=section&id=Financial%20Statements) Financial statements detail the company's position as of June 30, 2025, with total assets of $274.8 million and net assets of $157.4 million [Statements of Assets and Liabilities (Balance Sheet)](index=3&type=section&id=STATEMENTS%20OF%20ASSETS%20AND%20LIABILITIES) As of June 30, 2025, total assets were $274.8 million, total liabilities $117.4 million, and total net assets $157.4 million, with NAV per share at $2.06 Balance Sheet Summary | Account | June 30, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | Total Investments (Fair Value) | 241,507,000 | 260,852,859 | | Total Assets | 274,846,650 | 299,730,974 | | Total Liabilities | 117,423,934 | 139,065,494 | | **Total Net Assets** | **157,422,716** | **160,665,480** | | **Net Asset Value per Share** | **$2.06** | **$2.30** | [Statements of Operations (Income Statement)](index=4&type=section&id=STATEMENTS%20OF%20OPERATIONS) For Q2 2025, total investment income was $9.5 million, with net investment income of $5.5 million ($0.08 per share) Quarterly Performance (Three Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total Investment Income | 9,522,181 | 11,445,456 | | Total Expenses | 4,022,616 | 3,723,550 | | **Net Investment Income** | **5,499,565** | **7,721,906** | | Net Increase in Net Assets from Operations | 4,385,357 | 5,259,005 | | **NII per Share** | **$0.08** | **$0.13** | Year-to-Date Performance (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Total Investment Income | 19,683,231 | 22,122,880 | | **Net Investment Income** | **11,603,439** | **14,259,462** | | Net (Decrease)/Increase in Net Assets from Operations | (3,736,160) | 3,490,615 | | **NII per Share** | **$0.16** | **$0.24** | [Financial Highlights](index=5&type=section&id=FINANCIAL%20HIGHLIGHTS) Key per-share data and performance ratios for Q2 2025 include a total return based on NAV of 3.59% and an annualized expense ratio of 10.78% Per Share Data (Three Months Ended June 30) | Per Share Data | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | NAV at beginning of period | $2.09 | $2.42 | | Net Investment Income | $0.08 | $0.13 | | Net Realized/Unrealized Losses | ($0.02) | ($0.04) | | Total Distributions | ($0.11) | ($0.11) | | **NAV at end of period** | **$2.06** | **$2.43** | Total Return (Three Months Ended June 30) | Return Metric | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Total Return based on Market Value | (10.49)% | (4.06)% | | Total Return based on Net Asset Value | 3.59% | 4.75% | Key Ratios (Annualized, Three Months Ended June 30) | Ratio | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Ratio of expenses to average net assets | 10.78% | 11.15% | | Ratio of net investment income to average net assets | 14.26% | 20.04% | [Corporate Information](index=6&type=section&id=Corporate%20Information) Oxford Square Capital Corp. is a BDC primarily investing in syndicated bank loans and CLO tranches, with forward-looking statement disclaimers included - The company is a **business development company (BDC)** that principally invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles[13](index=13&type=chunk) - The press release contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties[14](index=14&type=chunk)

Group 1 - Oxford Square Capital Corp. will hold a conference call to discuss second quarter 2025 earnings on August 7, 2025, at 9:00 AM Eastern time [1] - The toll-free dial-in number for the conference call is 1-800-549-8228, and the conference identification number is 03418 [1] - A recording of the call will be available for 30 days after the event, with the replay pass-code number being 03418 [1] Group 2 - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans [2] - The company also invests in debt and equity tranches of collateralized loan obligation (CLO) vehicles, including warehouse facilities [2] - Warehouse facilities are financing structures designed to aggregate loans that may be used to form the basis of a CLO vehicle [2]

Core Viewpoint - Oxford Square Capital Corp. has announced a public offering of $65 million in unsecured notes with a 7.75% interest rate, maturing on July 31, 2030, with the option for early redemption starting July 31, 2027 [1][2]. Group 1: Offering Details - The offering is expected to close on August 7, 2025, and includes an option for underwriters to purchase an additional $9.75 million in notes [2]. - The notes will be listed on the NASDAQ Global Select Market under the trading symbol "OXSQH" [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to repay existing indebtedness, acquire investments, and for general corporate purposes [3]. Group 3: Company Overview - Oxford Square Capital Corp. is a publicly-traded business development company that primarily invests in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles [6].