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1. Company Snapshot

1.a. Company Description

Oxford Square Capital Corp.is a business development company, operates as a closed-end, non-diversified management investment company.It is a private equity and mezzanine firm.


The firm invests in both public and private companies.It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans.The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors.


It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million.The firm invests between $5 million and $30 million per transaction.It seeks to exit its investments within 7 years.


It serves as the investment adviser to TICC.Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.

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1.b. Last Insights on OXSQ

Oxford Square Capital Corp.'s recent performance was negatively impacted by a 17% decline in Q2 income. The company's financial results for the quarter ended June 30, 2025, revealed a decrease in profitability. A comparison with Sixth Street Specialty Lending (TSLX) highlighted differences in valuation, earnings, and risk. Despite a 20-year history of consistent dividends, the company's asset coverage ratio dropped. Additionally, while OXSQH's 7.75% baby bond IPO offered a compelling yield, credit assessment concerns remained, according to Moody's-based evaluation.

1.c. Company Highlights

2. Oxford Square Capital Corp Delivers Stable Q3 2025 Results

Oxford Square Capital Corp reported net investment income of $5.6 million, or $0.07 per share, for the quarter ended September 30, 2025, in line with analyst estimates. Total investment income came in at $10.2 million, up from $9.5 million in the prior quarter. However, the company recorded combined net unrealized and realized losses on investments of $7.5 million, or $0.09 per share, compared to $1.1 million, or $0.01 per share, in the previous quarter. Net asset value per share stood at $1.95, down from $2.06 in the prior quarter. The company distributed $0.105 per share to common stock shareholders.

Publication Date: Nov -20

📋 Highlights
  • Q3 Net Investment Income:: $5.6M ($0.07/share), down from $5.5M ($0.08/share) in prior quarter.
  • Net Asset Value (NAV) Decline:: NAV per share fell to $1.95 from $2.06 in previous quarter.
  • Total Investment Income:: Rose to $10.2M in Q3 compared to $9.5M in Q2.
  • Investment Losses:: Combined unrealized/realized losses at $7.5M ($0.09/share), up from $1.1M ($0.01/share) prior.

Investment Strategy and Market Outlook

Managing Director and Portfolio Manager Kevin Yonon noted that the U.S. loan market performance was stable during the quarter, with loan prices decreasing slightly to 97.06% of par as of September 30. The company focused on purchasing CLO equity pieces with top-tier managers and invested in relatively higher-quality credits with lower spreads in the market. Yonon stated that the primary market has been slow, with more higher-quality, lower-spread credits participating, and the company anticipates focusing more on the secondary market to capture higher spreads.

Valuation and Dividend Yield

With a Price-to-Book Ratio of 0.94, the stock is trading slightly below its book value. The Dividend Yield stands at 22.34%, indicating an attractive income opportunity for investors. Analysts estimate revenue growth of 2.3% for the next year, which may impact the stock's valuation. The current valuation metrics suggest that the market is pricing in a relatively stable outlook for the company.

Future Prospects

Oxford Square Capital Corp's cash and equivalents balance is largely a result of ATM issuances, according to the management. The company's focus on the primary and secondary market for leveraged loans is expected to continue, with a shift towards capturing more spread in the secondary market. As the company navigates the current market conditions, investors will be watching for signs of growth and stability in the investment portfolio.

3. NewsRoom

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Analyzing Oxford Square Capital (NASDAQ:OXSQ) and Barings Bdc (NYSE:BBDC)

Nov -30

Source: defenseworld.net

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Want $4,000 per Year in Monthly Passive Income? Invest Just $2,500 in These Yield-Heavy Dividend Stocks

Nov -21

Source: 247wallst.com

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Oxford Square Capital Corp. (OXSQ) Q3 2025 Earnings Call Transcript

Nov -04

Source: seekingalpha.com

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Oxford Square Capital (NASDAQ:OXSQ) versus Sixth Street Specialty Lending (NYSE:TSLX) Financial Survey

Oct -23

Source: defenseworld.net

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Time To Hunt Bargains In The BDC Forest: 2 Picks At ~20% Discount To NAV

Sep -24

Source: seekingalpha.com

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Have $1000 and Need Ultra-High-Yield Dividend Income? Our Favorite $5 Stocks

Sep -12

Source: 247wallst.com

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New Preferred Stock And Baby Bond IPOs, August 2025

Sep -04

Source: seekingalpha.com

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Preferreds Weekly Review: The Mystery Of ANG.PR.B May Be Solved

Sep -02

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Investment and Related Activities

Expected Growth: 8.5%

Growing demand for debt securities, increasing corporate debt issuance, and rising popularity of collateralized loan obligations drive Oxford Square Capital Corp's investment and related activities.

7. Detailed Products

Real Estate Investment Trust (REIT)

Oxford Square Capital Corp. offers a diversified portfolio of commercial real estate investments, providing a steady income stream to investors.

Collateralized Loan Obligations (CLOs)

Oxford Square Capital Corp. originates and manages CLOs, providing financing to middle-market companies and generating returns for investors.

Business Development Company (BDC)

Oxford Square Capital Corp. operates as a BDC, providing financing to small and medium-sized businesses, and generating returns for investors.

Asset-Based Lending

Oxford Square Capital Corp. provides asset-based lending solutions to businesses, offering financing options secured by assets such as inventory, equipment, or real estate.

Equity Investments

Oxford Square Capital Corp. makes equity investments in companies, providing growth capital and strategic guidance to support business expansion.

8. Oxford Square Capital Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Oxford Square Capital Corp. is moderate, as there are some alternative investment options available to clients, but they are not easily accessible or widely known.

Bargaining Power Of Customers

The bargaining power of customers is low, as Oxford Square Capital Corp. provides specialized investment services that are not easily substitutable, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Oxford Square Capital Corp. relies on a few key suppliers for its investment research and data, but has some flexibility to switch to alternative suppliers if needed.

Threat Of New Entrants

The threat of new entrants is high, as the investment management industry is relatively easy to enter, and new firms can quickly establish themselves with the right technology and talent.

Intensity Of Rivalry

The intensity of rivalry is high, as Oxford Square Capital Corp. operates in a highly competitive industry with many established players, and must continually innovate and differentiate itself to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 100.00%
Debt Cost 8.80%
Equity Weight 0.00%
Equity Cost 9.40%
WACC 8.80%
Leverage 81276956.27%

11. Quality Control: Oxford Square Capital Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
ArrowMark Financial

A-Score: 7.9/10

Value: 5.7

Growth: 6.3

Quality: 8.1

Yield: 10.0

Momentum: 7.5

Volatility: 10.0

1-Year Total Return ->

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Bain Capital Specialty Finance

A-Score: 7.2/10

Value: 7.2

Growth: 6.3

Quality: 8.0

Yield: 10.0

Momentum: 2.5

Volatility: 9.3

1-Year Total Return ->

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Sixth Street Specialty Lending

A-Score: 6.9/10

Value: 5.2

Growth: 4.3

Quality: 6.5

Yield: 10.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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Carlyle Secured Lending

A-Score: 6.6/10

Value: 5.7

Growth: 7.1

Quality: 6.1

Yield: 10.0

Momentum: 1.0

Volatility: 9.7

1-Year Total Return ->

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CION Investment

A-Score: 5.8/10

Value: 4.4

Growth: 4.9

Quality: 4.7

Yield: 10.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Oxford Square Capital

A-Score: 5.2/10

Value: 6.4

Growth: 3.9

Quality: 3.3

Yield: 10.0

Momentum: 0.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.83$

Current Price

1.83$

Potential

-0.00%

Expected Cash-Flows