Stellus Capital Investment Corporation Earnings Recaps
Q1 2026
May 13, 2026
Stellus Capital’s shares declined modestly by 0.8% following a quarter marked by a decline in net asset value driven by realized and unrealized losses on debt investments and elevated nonaccrual loan levels, tempering investor confidence despite stable core income and maintaining dividends.
Key takeaways
- Core net investment income was $0.27 per share, with total realized income of $0.29 per share, including $0.75 million in realized gains.
- Net asset value decreased by $0.28 per share, primarily due to $0.08 per share of dividends paid in excess of earnings and $0.20 per share of net realized and unrealized losses related mainly to debt investments.
- The investment portfolio at fair value declined to $990 million from $1.01 billion, with 117 portfolio companies at quarter-end.
- Nonaccrual loans increased to six companies, representing 9.2% of total cost and 5.2% of fair value of the portfolio, higher than desired and a clear risk factor.
- Management announced a $20 million share repurchase program at a roughly 25% discount to net asset value, reflecting undervaluation concerns but also uncertain outlook on dividends, which may normalize lower over time.
Q3 2025
Nov 13, 2025
Stellus Capital Investment Corporation reported a mixed third quarter for FY2025, with GAAP net investment income of $0.32 per share, alongside a decline in net asset value driven by dividend payments exceeding earnings.
Key takeaways
- Generated $0.32 per share of GAAP net investment income and core net investment income of $0.34 per share, adjusted for excise taxes.
- Net asset value per share fell by $0.16, primarily due to $0.08 in dividends exceeding earnings and unrealized losses from two debt investments.
- Portfolio valuation increased to over $1 billion, reflecting investments of $51.3 million in five new companies during the quarter.
- Maintained strong asset quality with 82% of the portfolio rated positively and no additions to the nonaccrual list.
- Successfully issued approximately 531,000 shares for $7.4 million under the ATM program, reinforcing capital position while all issuances were above net asset value.