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OXSQ

Oxford Square Capital Corp.

OXSQ

Oxford Square Capital Corp. • NASDAQ
$1.85 ▲ 0.00% (+0.00)
Market Cap $151.06 M
52w High $2.87
52w Low $1.56
Dividend Yield 0.42%
P/E -61.67
Volume 681.33K
Outstanding Shares 81.65M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $1.656M ▼ $1.189M ▲ $-2.092M ▼ -126.354% ▼ $-0.026 ▼ $-2.092M ▼
Q2-2025 $7.417M ▲ $1.103M ▲ $4.385M ▲ 59.122% ▼ $0.06 ▲ $4.385M ▲
Q1-2025 $-5.123M ▼ $1.039M ▼ $-8.122M ▼ 158.527% ▲ $-0.12 ▼ $-8.122M ▼
Q4-2024 $6.273M ▲ $1.047M ▼ $3.264M ▲ 52.024% ▲ $0.051 ▲ $3.264M ▲
Q3-2024 $2.196M $1.108M $-874.541K -39.827% $-0.013 $-874.541K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $50.788M ▲ $314.74M ▲ $155.785M ▲ $158.955M ▲
Q2-2025 $29.794M ▼ $274.847M ▼ $117.424M ▼ $157.423M ▲
Q1-2025 $37.253M ▲ $285.491M ▼ $136.608M ▼ $148.882M ▼
Q4-2024 $34.926M ▼ $299.731M ▼ $139.065M ▼ $160.665M ▲
Q3-2024 $43.188M $312.923M $153.452M $159.471M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-2.092M ▼ $5.232M ▲ $-25.173M ▼ $40.935M ▲ $20.994M ▲ $5.232M ▲
Q2-2025 $4.385M ▲ $4.257M ▼ $-5.916M ▼ $-5.799M ▼ $-7.458M ▼ $4.257M ▼
Q1-2025 $-8.122M ▼ $4.934M ▼ $1.054M ▲ $-3.662M ▼ $2.326M ▲ $4.934M ▼
Q4-2024 $3.264M ▲ $5.867M ▲ $-12.06M ▼ $-2.069M ▼ $-8.261M ▼ $5.867M ▲
Q3-2024 $-874.541K $5.809M $-569.133K $7.933M $13.173M $5.809M

Five-Year Company Overview

Income Statement

Income Statement Oxford Square’s income picture shows a business with fairly small underlying earnings but a lot of volatility from year to year. Most years in this period, the company earned modest profits. However, one year stands out with a clear loss, which likely reflects mark‑to‑market swings or credit issues in its investment portfolio rather than changes in a normal “product sales” type business. That’s typical for a specialty finance company that depends on how its loans and structured credit positions are valued. Earnings per share have bounced around meaningfully, moving from loss to profit and then to lower but still positive levels. This pattern suggests that results are heavily influenced by the credit cycle, market valuations of CLOs and loans, and realized gains or losses, rather than a smooth, predictable revenue stream. Overall, Oxford Square looks like a high‑yield, high‑volatility income story: earnings are positive more often than not, but they are not consistently stable, and sharp swings remain a central feature of the income statement.

Balance Sheet

Balance Sheet The balance sheet shows a compact investment company that has gradually reduced its overall asset base from an earlier peak, with a more recent tilt toward stability rather than rapid growth. Equity has held up reasonably well and has even inched higher recently, which signals that despite past volatility and at least one weak year, the company has been able to rebuild or maintain its capital base. Debt sits at a level that is meaningful but not extreme for a business development company, indicating the use of leverage to enhance returns but also adding sensitivity to credit conditions. Cash balances are relatively low, which is common for a BDC that aims to keep most capital invested in loans and structured products. That said, lower cash cushions mean the firm depends on its credit facilities and capital markets access to navigate stress. In short, the balance sheet looks typical for a niche lender and CLO investor: reasonably capitalized, leveraged by design, and reliant on portfolio quality and market access rather than large cash reserves.

Cash Flow

Cash Flow Cash flow has been lumpy but has improved in recent years. Earlier in the period, operating cash flow dipped into negative territory, likely reflecting portfolio repositioning, credit stress, or timing issues in interest and principal receipts. More recently, operating cash flow has turned positive again and has been comfortably above the company’s minimal capital spending needs, since this type of business requires almost no traditional physical investment. Free cash flow therefore closely tracks operating cash flow and has been positive in the latest years. This pattern suggests that, while cash generation can swing with credit conditions and portfolio performance, the most recent trend is toward a healthier, self‑funding profile. However, the history of volatility means that this strength should be viewed as cyclical, not guaranteed.

Competitive Edge

Competitive Edge Oxford Square operates in a specialized corner of finance, focusing on loans to middle‑market companies and, importantly, on complex CLO structures. This specialization is both its key strength and its main risk. On the positive side, the firm’s deep experience in CLO equity and junior debt, plus its willingness to work with smaller, less‑served borrowers, gives it access to higher‑yielding opportunities that many larger, more conservative competitors avoid. Its long history as a BDC and reputation for high dividend payouts have also helped it build a niche following among income‑oriented investors. On the risk side, this focus on higher‑risk tranches and smaller borrowers means the company is very sensitive to credit cycles. When defaults rise or credit spreads widen, portfolio values and income can be hit hard, which can weigh on net asset value over time. Some history of distributions exceeding recurring income has already raised questions about the long‑term sustainability of its high‑yield positioning. Overall, Oxford Square’s moat comes from specialization and credit expertise rather than scale. Its competitive strength depends heavily on management’s ability to underwrite risk and navigate volatile credit markets.

Innovation and R&D

Innovation and R&D As a financial services firm, Oxford Square’s “innovation” is not about labs or patents but about structuring and strategy. The company differentiates itself by: - Concentrating on CLO equity and junior debt tranches, which require specialized analytical skills and offer higher yield potential. - Providing tailored capital solutions to U.S. middle‑market companies that are often overlooked by big banks or public markets. Its edge lies in credit analysis, deal structuring, and portfolio management within a complex asset class. There’s no sign of large‑scale technology R&D or new product platforms; instead, the evolution is mainly in how it manages its capital structure (for example, issuing longer‑dated unsecured notes) and how it allocates capital across loans and CLOs. Looking ahead, the most important “innovation” levers are likely to be better risk management, improved alignment between dividends and recurring income, and more disciplined capital allocation rather than entirely new business lines.

Summary

Oxford Square Capital Corp. is a small, specialized business development company with a focus on higher‑yield, higher‑risk credit, especially CLOs and middle‑market loans. Its income statement shows a pattern of modest profits punctuated by a notable loss year, underscoring how sensitive results are to credit cycles and market valuations. The balance sheet is typical for a leveraged credit investor: equity is reasonably steady, debt is meaningful but not extreme for the model, and cash is intentionally lean. Cash flow has been volatile but has improved more recently, with positive free cash flow and no real physical investment requirements. Competitively, the firm’s niche CLO and middle‑market focus, plus its history of high payouts, give it a distinct identity, but also expose it to greater downside in tough credit environments and raise questions about the durability of its high-yield profile. In essence, Oxford Square is positioned as a targeted, high‑income credit vehicle whose fortunes are closely tied to credit quality, CLO market dynamics, and disciplined capital management, rather than to steady, predictable growth in a conventional operating business.