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Oxford Lane Capital (OXLC)
NASDAQ:OXLC
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Oxford Lane Capital
(NASDAQ:OXLC)
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Rating:61Neutral
Price Target:―
Oxford Lane Capital shows potential with a strong valuation profile due to a low P/E ratio and high dividend yield. Financial performance is hindered by volatility and cash flow concerns. Technical analysis is neutral, while the earnings call provided positive developments with some yield and default rate concerns. Overall, the stock is moderately attractive, particularly for income investors.
Positive Factors
Revenue Growth
Oxford Lane Capital's significant revenue growth indicates strong performance in its investment strategy, enhancing its market position.
Net Asset Value Increase
An increase in net asset value per share reflects effective asset management and potential for shareholder value appreciation.
CLO New Issuance Growth
Record CLO issuance growth supports Oxford Lane's strategy, potentially leading to higher income and capital appreciation opportunities.
Negative Factors
Cash Flow Concerns
Persistent negative cash flow highlights challenges in liquidity management, potentially impacting long-term financial stability.
Inconsistent Profitability
Volatile profitability indicates challenges in maintaining stable earnings, which could affect investor confidence and financial health.
Decreased Weighted Average Yields
Decreasing yields on investments may reduce future income potential, affecting overall returns and strategic financial goals.
Oxford Lane Capital (OXLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
N/A
Dividend Yield35.45%
Average Volume (3M)1.17M
Price to Earnings (P/E)293.7
Beta (1Y)0.59
Revenue Growth24.12%
EPS Growth-98.74%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)1.24
Shares Outstanding96,580,470
10 Day Avg. Volume945,407
30 Day Avg. Volume1,174,018
Financial Highlights & Ratios
PEG Ratio-0.49
Price to Book (P/B)1.09
Price to Sales (P/S)22.34
P/FCF Ratio-3.04
Enterprise Value/Market Cap10.00T>
Enterprise Value/Revenue4.82
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda41.89
Forecast
1Y Price Target
$20.00Price Target Upside33.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Oxford Lane Capital Business Overview & Revenue Model
Company DescriptionOxford Lane Capital Corp. is a close ended fund launched and managed by Oxford Lane Management LLC. It invests in fixed income securities. The fund primarily invests in securitization vehicles which in turn invest in senior secured loans made to companies whose debt is rated below investment grade or is unrated. Oxford Lane Capital Corp was formed on June 9, 2010 and is domiciled in the United States.
How the Company Makes MoneyOxford Lane Capital makes money primarily through the interest and income generated from its investments in CLOs. The company's revenue model is based on acquiring equity and junior debt tranches of CLOs, which are structured to provide high yields. These CLOs are essentially pooled portfolios of loans, often made to corporations with lower credit ratings, which offer higher interest rates. Oxford Lane Capital earns returns from the cash flows distributed by these CLOs, including interest income and potential capital gains from selling these investments. The company's earnings are also influenced by the overall performance of the credit markets, interest rate fluctuations, and the management's ability to effectively select and manage its CLO investments. There are no significant partnerships disclosed that contribute directly to its revenue streams.
Oxford Lane Capital Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 02, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance for Oxford Lane Capital Corp. Despite increases in GAAP total and net investment income, and active portfolio management, the company faced challenges such as a decrease in net asset value, significant unrealized depreciation, and a decline in cash distribution yields. The outlook is influenced by broader market uncertainties and macroeconomic factors.Q2-2026 Updates
Positive Updates
Increase in GAAP Total Investment Income
GAAP total investment income increased by approximately $4.3 million from the previous quarter, totaling $128.3 million for the quarter ended September.
Net Investment Income Growth
GAAP net investment income grew to approximately $81.4 million, or $0.84 per share, up from $75.1 million or $0.80 per share in the prior quarter.
Core Net Investment Income Increase
Core net investment income rose to approximately $120 million or $1.24 per share, compared to $112.4 million or $1.19 per share in the previous quarter.
Active Portfolio Management
Invested over $145 million in CLO equity debt and warehouses, and participated in over 25 resets and refinancings.
Board Declares Monthly Distributions
Declared monthly common stock distributions of $0.40 per share for January, February, and March 2026.
Weighted Average Yield Increase
The weighted average yield of CLO debt investments increased to 17.4% from 16.9% as of June 30.
Negative Updates
Net Asset Value Decline
Net asset value per share decreased from $20.60 to $19.19 as of September 30.
Net Unrealized Depreciation and Realized Losses
Recorded net unrealized depreciation on investments of approximately $68.5 million and net realized losses of approximately $18.1 million.
Decrease in Cash Distribution Yield
The weighted average cash distribution yield of CLO equity investments decreased to 19.4% from 21.6% as of June 30.
Loan Market and Default Rate Concerns
U.S. loan price index slightly decreased, and the 12-month trailing default rate increased to 1.47% from 1.11%.
Market Uncertainty
Concerns about macroeconomic factors, including tight spreads and economic uncertainties, affecting the attractiveness of certain investments.
Company Guidance
During Oxford Lane Capital Corp.'s second fiscal quarter 2026 earnings call, the company provided several key metrics. As of September 30, their net asset value per share was $19.19, down from $20.60 in the previous quarter, reflecting a 1-for-5 reverse stock split. The company reported a GAAP total investment income of $128.3 million, an increase of $4.3 million from the prior quarter, with a GAAP net investment income of $81.4 million or $0.84 per share. Their core net investment income was $120 million or $1.24 per share. They recorded net unrealized depreciation on investments of $68.5 million and net realized losses of $18.1 million. The weighted average yield of CLO debt investments was 17.4%, and the effective yield of CLO equity investments was 14.6%. They issued 700,000 shares for $14.5 million and repurchased 1.2 million shares for $20.5 million. They invested $145.2 million in CLOs and received $173.5 million from sales and repayments. Monthly distributions of $0.40 per share were declared for January to March 2026.Oxford Lane Capital Financial Statement Overview
Summary
Oxford Lane Capital's financial performance is mixed. The income statement shows volatility with inconsistent profitability but a relatively high gross profit margin. The balance sheet is stable with a manageable debt-to-equity ratio, but cash flow concerns are significant due to negative operating and free cash flow.Income Statement
Oxford Lane Capital's income statement shows significant volatility with total revenue swinging from negative to positive and back, indicating instability in revenue generation. The company managed a positive net profit margin in the latest period, but historical trends show inconsistent profitability. The gross profit margin is relatively high, suggesting good cost management when revenue is positive, but the erratic revenue growth rate is a concern.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position with the equity ratio improving over time, indicating a solid capital structure. The debt-to-equity ratio is manageable, suggesting the company is not overly leveraged. Return on equity fluctuates significantly, reflecting the income statement's volatility. Overall, the balance sheet suggests financial stability with some risk due to income variability.65
Positive
Cash Flow
Cash flow analysis reveals negative operating cash flow and free cash flow in recent years, highlighting challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, indicating issues in converting income into cash. The company needs to improve cash flow stability to enhance its financial health.40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 449.03M | 95.77M | 279.52M | -126.63M | 152.22M | 58.26M |
| Gross Profit | 0.00 | 57.31M | 246.66M | -158.43M | 130.15M | 26.14M |
| EBITDA | 51.68M | 48.46M | 235.11M | -171.29M | 125.88M | 306.21M |
| Net Income | 3.75M | 48.46M | 235.11M | -171.29M | 125.88M | 289.93M |
Balance Sheet | ||||||
| Total Assets | 2.65B | 2.84B | 1.75B | 1.34B | 1.41B | 934.86M |
| Cash, Cash Equivalents and Short-Term Investments | 19.10M | 295.35M | 42.97M | 21.74M | 34.67M | 90.87M |
| Total Debt | 488.09M | 486.92M | 195.60M | 194.56M | 193.58M | 328.11M |
| Total Liabilities | 785.40M | 883.25M | 579.85M | 542.89M | 460.99M | 338.61M |
| Stockholders Equity | 1.86B | 1.96B | 1.17B | 793.15M | 947.16M | 596.25M |
Cash Flow | ||||||
| Free Cash Flow | 816.12M | -703.80M | -123.79M | -91.56M | -385.50M | 124.01M |
| Operating Cash Flow | 816.12M | -703.80M | -123.79M | -91.56M | -385.50M | 124.01M |
| Investing Cash Flow | -1.44B | 0.00 | 0.00 | 0.00 | -932.95M | -131.95M |
| Financing Cash Flow | 432.61M | 956.17M | 145.03M | 78.63M | 329.30M | 87.14M |
Oxford Lane Capital Technical Analysis
Negative
14.95
Price Trends
14.94
Positive
15.64
Negative
17.44
Negative
Market Momentum
0.06
Negative
55.02
Neutral
91.39
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXLC, the sentiment is Negative. The current price of 14.95 is above the 20-day moving average (MA) of 14.37, above the 50-day MA of 14.94, and below the 200-day MA of 17.44, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 55.02 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OXLC.
Oxford Lane Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $1.01B | 14.94 | 5.43% | 13.23% | 36.15% | -38.59% | |
64 Neutral | $365.02M | 11.58 | 8.20% | 12.69% | 90.34% | -44.25% | |
61 Neutral | ― | 293.71 | 0.22% | 35.45% | 24.12% | -98.74% | |
58 Neutral | $517.53M | ― | -1.15% | 21.48% | -91.81% | 78.46% | |
54 Neutral | $381.33M | 11.65 | 6.83% | 16.44% | -3.09% | 200.66% | |
48 Neutral | $149.46M | ― | -1.61% | 22.95% | -177.91% | 55.08% |
* Financial Sector Average
OXLC
Oxford Lane Capital
14.95
-5.30
-26.17%
NMFC
New Mountain Finance
9.75
-0.77
-7.32%
PNNT
Pennantpark Investment
5.84
-0.25
-4.11%
OXSQ
Oxford Square Capital
1.83
-0.39
-17.57%
SCM
Stellus Capital
12.61
0.32
2.60%
TCPC
BlackRock TCP Capital
6.10
-1.94
-24.13%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.