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Stellus Capital Investment Corporation

SCM

Stellus Capital Investment Corporation • NYSE
$12.10 ▼ -0.06% (-0.01)
Market Cap $337.89 M
52w High $15.56
52w Low $11.19
Dividend Yield 1.60%
P/E 11.1
Volume 129.37K
Outstanding Shares 27.92M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $17.43M ▼ $1.273M ▲ $6.692M ▼ 38.394% ▼ $0.24 ▼ $7.208M ▼
Q2-2025 $19.843M ▲ $588.893K ▲ $10.145M ▲ 51.128% ▲ $0.36 ▲ $10.574M ▲
Q1-2025 $13.965M ▼ $209.066K ▼ $4.994M ▼ 35.757% ▼ $0.35 ▲ $5.493M ▼
Q4-2024 $18.201M ▼ $1.341M ▼ $8.691M ▼ 47.75% ▼ $0.3 ▼ $9.195M ▼
Q3-2024 $25.173M $1.397M $15.461M 61.419% $0.59 $15.819M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $9.024T ▲ $1028.644T ▲ $650.914T ▲ $377.73T ▲
Q2-2025 $39.992M ▲ $1.035B ▲ $659.395M ▲ $375.371M ▲
Q1-2025 $10.889M ▼ $1.012B ▲ $638.971M ▲ $372.766M ▲
Q4-2024 $20.059M ▼ $980.9M ▲ $610.978M ▲ $369.922M ▲
Q3-2024 $38.58M $957.072M $590.787M $366.285M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $6.692M ▼ $4.528M ▼ $-24.756M ▼ $-10.74M ▼ $-30.968M ▼ $4.528M ▼
Q2-2025 $10.145M ▲ $14.831M ▲ $8.837M ▲ $5.434M ▼ $29.103M ▲ $14.831M ▲
Q1-2025 $4.994M ▼ $-36.924M ▼ $0 $27.754M ▲ $-9.17M ▲ $-36.924M ▼
Q4-2024 $8.691M ▼ $-31.752M ▼ $0 $13.231M ▲ $-18.522M ▼ $-31.752M ▼
Q3-2024 $15.461M $11.751M $0 $-9.039M $2.712M $11.751M

Five-Year Company Overview

Income Statement

Income Statement Stellus has remained consistently profitable over the past five years, but its earnings pattern is uneven. Recent results show a strong rebound in per‑share earnings compared with the prior couple of years, even though overall revenue has slipped slightly from a recent peak. Profitability has generally improved versus the early part of the period, suggesting better pricing or more efficient deployment of capital, but the ups and downs from year to year indicate that results are sensitive to the credit and interest‑rate environment, as is typical for a business development company.

Balance Sheet

Balance Sheet The balance sheet has grown over time, with total assets and shareholder equity both rising, which points to a steadily expanding investment portfolio. Debt has also increased, and at a faster pace than equity, meaning leverage has crept higher. For a lender like Stellus this is not unusual, but it does narrow the margin for error if credit conditions worsen. Cash balances remain modest, so the company relies more on credit facilities and repayments from its investments than on large cash cushions.

Cash Flow

Cash Flow Reported operating and free cash flow have been negative in most of the recent years, with essentially no spending on traditional capital assets. For a BDC, this often reflects ongoing deployment of capital into new loans rather than a sign of operating weakness. Still, it means cash is regularly flowing out to fund growth, so dividends, interest and other obligations depend on a steady stream of repayments, refinancings and access to financing markets. If portfolio repayments slow or credit tightens, the company could feel more pressure on liquidity.

Competitive Edge

Competitive Edge Stellus focuses on the lower middle market, an area that is less crowded than larger corporate lending and often underserved by banks. Its long‑tenured investment team, deep relationships with private equity sponsors and emphasis on directly originated, secured loans give it a meaningful edge in sourcing and structuring deals. The portfolio’s tilt toward senior secured positions adds downside protection relative to more junior lending strategies. On the other hand, heavy exposure to smaller borrowers and reliance on sponsor deal flow tie its fortunes closely to private equity activity and the broader credit cycle.

Innovation and R&D

Innovation and R&D Innovation at Stellus is more about structure and process than about technology. The firm differentiates itself through tailored financing packages, a mix of senior and junior debt, and regular equity co‑investments alongside sponsors, which can add upside when portfolio companies perform well. Its disciplined underwriting approach and potential access to additional low‑cost capital through SBA licenses are strategic levers rather than traditional R&D. Future “innovation” will likely look like refinements to its credit strategy, capital structure and sponsor partnerships, not new products or tech platforms.

Summary

Overall, Stellus appears to be a steadily growing middle‑market lender with a clear niche and an experienced team, showing consistent profitability but with earnings that move around with credit conditions. Its balance sheet has expanded and become more leveraged, which can enhance returns in good times but raises risk if the environment turns. Cash flows reflect ongoing reinvestment into loans and reliance on external funding typical for a BDC. The company’s strongest attributes are its sponsor relationships, focus on secured lending and co‑investment capabilities, while key watchpoints are leverage, portfolio credit quality and how well it navigates the next phase of the credit cycle.

NEWS

November 10, 2025 · 4:13 PM UTC

Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025

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November 5, 2025 · 5:37 PM UTC

Stellus Capital Investment Corporation Schedules Third Quarter 2025 Financial Results Conference Call

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October 8, 2025 · 4:16 PM UTC

Stellus Capital Investment Corporation Announces $0.40 Fourth Quarter 2025 Regular Dividend, Payable Monthly in Increments of $0.1333 in November and December 2025, and January 2026

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September 23, 2025 · 8:00 AM UTC

STELLUS CAPITAL INVESTMENT CORPORATION PRICES REOPENING OF $50.0 MILLION OF 7.25% NOTES DUE 2030

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