OFS Capital reported second-quarter 2026 results with net earnings of $0.42 per share and net asset value of $8.41 per share as of June 30, 2026. Net investment income was $0.08 per common share for the quarter and the company declared a third-quarter distribution of $0.17 per share. Total investment income for the quarter was $6.8 million, with a net gain on investments of $4.6 million.

Financial Highlights

  • Total investment income: $6.8 million for the three months ended June 30, 2026 (prior quarter $8.9 million).
  • Net investment income: $1.0 million for the quarter, or $0.08 per common share (prior quarter $0.18 per share).
  • Net gain on investments: $4.6 million, producing net earnings of $0.42 per common share for the quarter.
  • Net asset value per common share: $8.41 as of June 30, 2026 (up from $8.16 as of March 31, 2026).
  • Balance sheet snapshot (June 30, 2026): total investments at fair value $297.8 million; total outstanding debt principal $185.8 million; total net assets $112.6 million.

Business Highlights

  • Portfolio composition (fair value): 93% floating-rate loans; debt investments comprised primarily of first-lien and second-lien loans (100% of loan portfolio).
  • Investment mix: $147.0 million in debt investments, $116.7 million in equity investments and $34.1 million in structured finance securities as of June 30, 2026.
  • Portfolio yield trends: weighted-average performing income yield decreased to 12.1% for the quarter from 12.5% in the prior quarter; weighted-average realized yield was 10.1%.
  • Credit activity: loans to one portfolio company totaling $12.5 million (amortized cost) were placed on non-accrual during the quarter; total non-accrual loans at fair value were $21.4 million (7.2% of total investments at fair value).
  • Liquidity and financing: cash and cash equivalents $4.0 million (including restricted subsidiary cash), unused commitments of $15.0 million (Banc of California facility) and $43.2 million (Natixis facility); regulatory asset coverage ratio 161%.

Original SEC Filing:

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