Oxford Lane Capital (OXLC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 37.5%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 293.1
• Beta (1Y): 0.61
• Revenue Growth: 24.12%
• EPS Growth: -98.74%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.24
• Shares Outstanding: 96,580,470
• 10 Day Avg. Volume: 1,205,770
• 30 Day Avg. Volume: 1,187,310
• 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 Cap: 10.00T>
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: 36.64
• 1Y Price Target: $20.00
• Price Target Upside: 36.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.95
• Revenue Forecast (FY): $512.55M

• Rating: 50 Neutral
• Price Target: $14.50 ▼(-1.16% Downside)

The score is held back primarily by weak recent cash flow and volatile fundamentals, which undermine the reliability of reported profitability and distribution support. Technical signals are neutral-to-slightly positive but not strong on a longer-term basis. Valuation is pressured by an extremely high P/E despite the very high dividend yield, and the latest earnings call was mixed with improving income offset by NAV decline and investment losses.

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 Business Overview & Revenue Model

Company Description

Oxford 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 Money

Oxford 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 Financial Statement Overview

Summary

Balance sheet leverage appears moderate and assets/equity have grown, but overall quality is dragged down by deeply negative operating and free cash flow in 2024–2025 and highly volatile results (including a sharp 2025 revenue decline). This raises concerns about earnings durability and cash support for distributions.

Income Statement

Profitability is strong on the surface, with high reported profit margins in most years and positive earnings in the latest annual period (2025). However, revenue is extremely volatile—2025 revenue fell ~74% year over year after a very strong 2024—and results have also swung into losses in prior periods (e.g., 2023). Overall, the income statement shows the ability to generate high profits in good markets, but with meaningful cyclicality and limited consistency in top-line performance.

Balance Sheet

Leverage appears moderate with debt-to-equity generally in the ~0.17–0.25 range, suggesting the company is not heavily debt-funded relative to equity. The equity base and total assets have grown materially over time, which supports balance-sheet capacity. The main weakness is profitability consistency on that equity base: return on equity is much lower in the latest year (2025) versus 2024, indicating earnings power can swing sharply.

Cash Flow

Cash generation is a key concern: operating cash flow and free cash flow are deeply negative in the latest two annual periods (2025 and 2024), and 2025 shows a very large cash outflow. While cash flow was positive in 2020–2021, the more recent pattern signals weak cash conversion and elevated risk that reported earnings are not translating into cash available for dividends, reinvestment, or de-levering. The trajectory of free cash flow is also unfavorable, with a sharp deterioration in 2025.

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	547.45M	124.01M
Operating Cash Flow	816.12M	-703.80M	-123.79M	-91.56M	547.45M	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

• Technical Analysis Sentiment: Positive
• Last Price: 14.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXLC, the sentiment is Positive. The current price of 14.67 is above the 20-day moving average (MA) of 14.18, above the 50-day MA of 13.79, and below the 200-day MA of 15.82, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 65.66 is Neutral, neither overbought nor oversold. The STOCH value of 5.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OXLC.

Oxford Lane Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NMFC	67 Neutral	$940.78M	13.98	5.43%	14.17%	36.15%	-38.59%
SCM	60 Neutral	$383.26M	12.16	8.20%	12.83%	90.34%	-44.25%
PNNT	57 Neutral	$394.39M	12.05	6.83%	16.61%	-3.09%	200.66%
OXLC	50 Neutral	―	293.12	0.22%	37.50%	24.12%	-98.74%
TCPC	50 Neutral	$491.23M	-54.26	-1.15%	21.13%	-91.81%	78.46%
OXSQ	48 Neutral	$159.26M	―	-1.61%	24.14%	-177.91%	55.08%