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OCCIO

OFS Credit Company, Inc.

OCCIO

OFS Credit Company, Inc. • NASDAQ
$24.90 ▼ -0.20% (-0.05)
Market Cap $684.38 M
52w High $25.80
52w Low $24.20
Dividend Yield 1.53%
P/E 49.7
Volume 1.18K
Outstanding Shares 6.49M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $11.875M ▲ $3.449M ▲ $7.93M ▲ 66.781% ▲ $0.29 ▲ $0
Q2-2025 $10.244M ▲ $3.283M ▼ $-12.578M ▼ -122.789% ▼ $-0.5 ▼ $0
Q1-2025 $10.059M ▲ $3.3M ▲ $3.803M ▼ 37.803% ▼ $0.17 ▼ $0
Q4-2024 $8.59M ▲ $2.969M ▲ $5.296M ▲ 61.661% ▲ $0.28 ▲ $0
Q3-2024 $7.451M $2.629M $3.435M 46.102% $0.21 $0

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $7.332M ▼ $287.404M ▲ $117.374M ▲ $170.029M ▲
Q2-2025 $23.071M ▲ $277.29M ▲ $116.987M ▲ $160.303M ▼
Q1-2025 $17.534M ▼ $256.951M ▲ $92.741M ▲ $164.21M ▲
Q4-2024 $24.696M ▲ $240.774M ▲ $92.167M ▲ $148.607M ▲
Q3-2024 $22.007M $183.986M $62.978M $121.009M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $7.93M ▲ $0 $0 $0 $0 $0
Q2-2025 $-12.578M ▼ $0 $0 $0 $0 $0
Q1-2025 $3.803M ▼ $0 $0 $0 $0 $0
Q4-2024 $5.296M ▲ $0 $0 $0 $0 $0
Q3-2024 $3.435M $0 $0 $0 $0 $0

Five-Year Company Overview

Income Statement

Income Statement OCCIO’s income profile looks like that of a small, niche credit fund: fairly steady investment income, but earnings that swing around from year to year. After two years of weak or negative profitability, the most recent year shows a clear improvement, with positive operating and net income again. That suggests the CLO portfolio has been benefiting from better credit conditions and/or more favorable marks on its positions. The big takeaway is volatility: earnings per share have moved sharply up and down over this short history. That’s typical for a leveraged, mark‑to‑market CLO strategy and means results can change quickly with credit spreads, defaults, and interest rates.

Balance Sheet

Balance Sheet The balance sheet has been slowly scaling up. Total assets have grown each year, and shareholders’ equity has also been rebuilding after an early dip, which indicates gradual expansion of the investment portfolio and a thicker capital base. Debt has risen as well, but not out of proportion to asset growth. This points to a measured increase in leverage rather than an aggressive one, though leverage is still a central feature of the model and a key risk in any downturn. Cash balances are small but fairly steady, which is common for a closed‑end credit fund that aims to keep most capital invested. It does, however, mean the company depends on portfolio cash flows and credit facilities rather than big cash reserves to manage stress periods.

Cash Flow

Cash Flow Reported operating and free cash flow have been consistently negative, even as accounting earnings improved. For an investment company like OCCIO, that often reflects active reinvestment into new CLO positions, distributions to shareholders, and non‑cash accounting items rather than a traditional “business” cash flow pattern. The pattern suggests the company relies on the underlying cash flows from its CLO holdings, plus capital market activities (issuing shares or using credit lines), to fund its operations and dividends. This can work in benign markets but becomes more challenging when credit markets tighten or liquidity dries up. In short, the cash flow profile is highly tied to financial market conditions rather than day‑to‑day operating performance, which adds another layer of cyclicality to the story.

Competitive Edge

Competitive Edge OCCIO occupies a specialized corner of asset management: listed access to CLO equity and debt. Its main competitive strength is not scale, but specialization. The external manager, OFS Capital Management, brings long experience across multiple credit cycles, with direct involvement both as a CLO manager and a CLO investor. That dual role gives OCCIO insight into deal structures, loan quality, and manager behavior that many generalist funds may lack. On the other hand, OCCIO is relatively small in a complex, institutionally dominated market. It competes with larger credit platforms that have broader resources, more diversified product lines, and deeper relationships. Its fortunes are tightly linked to the skill and reputation of OFS and to the overall health of the leveraged loan and CLO markets.

Innovation and R&D

Innovation and R&D Innovation here is mainly about strategy and structure, not traditional research and development. OCCIO’s “innovation” is providing public‑market investors with concentrated exposure to CLO equity and related securities, instruments that are usually hard for individuals to access. The focus on floating‑rate assets helps align the portfolio with rising‑rate environments, which can be a built‑in hedge versus traditional fixed‑income funds. The manager is also exploring how to weave ESG considerations into a part of the market where such frameworks are still emerging. Any move toward clearer ESG policies, more transparent risk tools, or new structured‑credit offerings would represent incremental innovation, but these are still more potential directions than clearly defined programs at this stage.

Summary

Overall, OCCIO is a small, specialized credit fund built around a focused bet on CLOs and the expertise of its external manager. Financially, it shows a pattern of modest, fairly stable investment income but very volatile earnings, which is normal for a leveraged structured‑credit strategy. The most recent year looks much better than the prior two, with a return to profitability, but history is short and heavily influenced by market cycles. The balance sheet has been growing steadily, with leverage used as a core tool rather than an exception. Cash is kept lean, which maximizes invested capital but heightens reliance on market liquidity and credit facilities. Cash flows are driven more by investment and financing dynamics than by classic operating performance. The key strengths are deep CLO expertise, a differentiated product focus, and alignment with environments where floating‑rate credit performs well. The main risks are sensitivity to credit downturns, reliance on a single specialized strategy, leverage, and dependence on the continued skill and stability of the external manager. Anyone evaluating OCCIO would likely focus on how comfortable they are with those trade‑offs: specialized knowledge and high income potential on one side, versus complexity, leverage, and market cyclicality on the other.