Oxford Square (OXSQ) Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, March 3, 2026 astatine 11:35 AM CST 7 min read

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Tuesday, March 3, 2026 astatine 9 a.m. ET

• Chief Executive Officer — Jonathan H. Cohen

• Portfolio Manager — Kevin P. Yonon

Jonathan Cohen: Thanks, Bruce. For the 4th ended December, Oxford Square's nett concern income was astir $5.4 cardinal oregon $0.07 per stock compared with astir $5.6 cardinal oregon $0.07 per stock successful the anterior quarter. Our nett plus worth per stock stood astatine $1.69 compared to a nett plus worth per stock of $1.95 for the anterior quarter. During the quarter, we distributed $0.105 per stock to our communal banal shareholders. For the 4th quarter, we recorded full concern income of astir $10.4 cardinal arsenic compared to astir $10.2 cardinal successful the anterior quarter.

In the 4th quarter, we recorded combined nett unrealized and realized losses connected investments of astir $18.3 cardinal oregon $0.22 per stock compared to combined nett unrealized and realized losses connected investments of astir $7.5 cardinal oregon $0.09 per stock successful the anterior quarter. During the 4th quarter, our concern enactment consisted of purchases of astir $18 cardinal and repayments of astir $7.4 million. During the 4th ended December, we issued a full of astir 4.3 cardinal shares of our communal banal pursuant to an at-the-market offering, resulting successful nett proceeds of astir $7.9 million.

On February 26, 2026, our Board of Directors declared monthly distributions of $0.035 per stock for each of the months ending April, May and June of 2026. We enactment that further details regarding grounds and outgo day accusation tin beryllium recovered successful our property merchandise that was issued this morning. With that, I'll crook the telephone implicit to our Portfolio Manager, Kevin Yonon.

Kevin P. Yonon: Thank you, Jonathan. During the 4th ended December 31, the U.S. indebtedness marketplace show declined versus the anterior quarter. U.S. indebtedness prices, arsenic defined by the Morningstar LSTA U.S. Leveraged Loan Index decreased somewhat from 97.06% of par arsenic of September 30 to 96.64% of par arsenic of December 31. According to LCD, during the quarter, determination was immoderate pricing dispersion with BB-rated indebtedness prices decreasing 8 ground points, B-rated indebtedness prices expanding 18 ground points and CCC-rated indebtedness prices decreasing 265 ground points connected average. According to PitchBook LCD, the 12-month trailing default complaint for the indebtedness scale decreased to 1.23% by main magnitude astatine the extremity of the 4th from 1.47% astatine the extremity of September.

Additionally, the default rate, including assorted forms of liability absorption exercises, which are not captured successful the cited default complaint remained astatine an elevated level of 3.35%. The distress ratio, defined arsenic a percent of loans with prices beneath 80% of par, ended the 4th astatine 4.34% compared to 2.88% astatine the extremity of September. During the 4th ended December 31, 2025, U.S. leveraged indebtedness superior marketplace issuance, excluding amendments and repricing transactions, was $70.7 billion, representing a 27% alteration versus the 4th ended December 31, 2024. This was driven by little refinancing and LBO activity, partially offset by higher M&A and dividend enactment versus the anterior twelvemonth comparable quarter.