Oxford Square Capital (OXSQ) investor relations material

Executive summary

• Net asset value per share declined to $1.32 as of March 31, 2026, from $1.69 at December 31, 2025, reflecting realized losses and portfolio depreciation.

• Net investment income for Q1 2026 was $4.1 million ($0.05 per share), down from $5.4 million ($0.07 per share) in the prior quarter and $6.1 million in Q1 2025.

• Total investment income for Q1 2026 was $8.9 million, compared to $10.4 million in the previous quarter and $10.2 million in Q1 2025.

• Net decrease in net assets from operations was $25.5 million for Q1 2026, driven by $30.7 million in net realized losses and $1.1 million in net unrealized appreciation.

• Distributions of $0.105 per share were paid in Q1 2026, with $0.035 per share declared for July, August, and September 2026.

Financial highlights

• Combined net unrealized and realized losses on investments were $29.7 million ($0.34 per share), with net realized losses totaling $30.7 million, primarily from a loan restructuring and CLO extinguishment.

• Weighted average yield of debt investments increased to 14.7% from 14.5% sequentially.

• Net decrease in net assets from operations was $(0.29) per share in Q1-26, compared to $(0.16) in Q4-25.

• Total expenses for Q1 2026 were $4.8 million, down from $5.0 million in Q4 2025.

• Cash and cash equivalents were $40.9 million at March 31, 2026, down from $51.9 million at year-end.

Outlook and guidance

• Board declared monthly distributions of $0.035 per share for July, August, and September 2026.

• Management expects continued focus on corporate debt and CLO investments, with portfolio diversification and risk management as priorities.

• Weighted average yield of total investments at current cost was 10.8% in Q1-26, down from 11.3% in Q4-25.

• Forward-looking statements caution about risks and uncertainties affecting future results.

• Management expresses conviction in AI sector investments as a long-term opportunity.