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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.
Oxford Lane Capital (OXLC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$0.00
Dividend Yield31.91%
Average Volume (3M)1.14M
Price to Earnings (P/E)32.3
Beta (1Y)0.59
Revenue Growth47.17%
EPS Growth-80.16%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.24
Shares Outstanding96,580,470
10 Day Avg. Volume1,145,455
30 Day Avg. Volume1,144,527
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 CapN/A
Enterprise Value/Revenue0.00
Enterprise Value/Gross ProfitN/A
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$5.50Price Target Upside-67.49% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
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:Jul 23, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including an increase in total investment income, active participation in a robust CLO market, and improved cash distribution yields. However, these were offset by a decrease in net asset value per share, net unrealized depreciation, and an increase in the loan default rate. As such, the sentiment is balanced.Q1-2026 Updates
Positive Updates
Increase in Total Investment Income
For the quarter ended June, Oxford Lane Capital recorded GAAP total investment income of approximately $124 million, an increase of approximately $2.8 million from the prior quarter.
Strong CLO Market Performance
The U.S. CLO market saw approximately $53 billion in reset and refinancing activity in Q2 2025, reflecting robust market conditions and Oxford Lane's active participation, with over $441 million invested in CLO equity, debt, and warehouses.
Increase in Weighted Average Yield of CLO Debt
The weighted average yield of CLO debt investments at current cost increased to 16.9% from 15.9% as of March 31.
Cash Distribution Yield Improvement
The cash distribution yield of CLO equity investments at current cost increased from 20.5% to 21.6% as of June 30.
1-for-5 Reverse Stock Split and Dividend Declaration
A 1-for-5 reverse stock split was authorized, with monthly common stock distributions of $0.08 per share declared for October, November, and December 2025.
Negative Updates
Decrease in Net Asset Value Per Share
Net asset value per share decreased from $4.32 as of the previous quarter to $4.12 as of June 30, 2025.
Net Unrealized Depreciation and Realized Losses
Oxford Lane recorded net unrealized depreciation on investments of approximately $40.2 million and net realized losses of approximately $8.8 million for the quarter ended June 30.
Decrease in Effective Yield of CLO Equity Investments
The weighted average effective yield of CLO equity investments at current cost decreased to 14.7% from 15.9% as of March 31.
Increase in Loan Default Rate
The 12-month trailing default rate for the loan index increased to 1.11% by principal amount at the end of the quarter from 0.82% at the end of March.
Company Guidance
During the first fiscal quarter of 2026, Oxford Lane Capital Corp. reported a net asset value per share decrease from $4.32 to $4.12. The GAAP total investment income rose to approximately $124 million, up by $2.8 million from the previous quarter, with $117.4 million derived from CLO equity and warehouse investments, and $6.6 million from CLO debt investments and other income. The GAAP net investment income was $75.1 million or $0.16 per share, slightly down from $75.4 million or $0.18 per share in the prior quarter. The core net investment income increased to $112.4 million or $0.24 per share. The company recorded net unrealized depreciation on investments of $40.2 million and net realized losses of $8.8 million, resulting in a net increase in net assets from operations of $26.1 million or $0.06 per share. The weighted average yield of CLO debt investments rose to 16.9%, while the effective yield of CLO equity investments decreased to 14.7%. The cash distribution yield of CLO equity investments increased to 21.6%. The company issued approximately 25.8 million shares, garnering net proceeds of $116.4 million, and made additional CLO investments totaling $441.8 million, while receiving $120.7 million from sales and repayments. A 1-for-5 reverse stock split was authorized, with monthly distributions of $0.08 per share declared for the months ending October, November, and December 2025.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 | 427.73M | 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 | 86.92M | 48.46M | 235.11M | -171.29M | 125.88M | 306.21M |
| Net Income | 48.46M | 48.46M | 235.11M | -171.29M | 125.88M | 289.93M |
Balance Sheet | ||||||
| Total Assets | 2.84B | 2.84B | 1.75B | 1.34B | 1.41B | 934.86M |
| Cash, Cash Equivalents and Short-Term Investments | 295.35M | 295.35M | 42.97M | 21.74M | 34.67M | 90.87M |
| Total Debt | 486.92M | 486.92M | 195.60M | 194.56M | 193.58M | 328.11M |
| Total Liabilities | 883.25M | 883.25M | 579.85M | 542.89M | 460.99M | 338.61M |
| Stockholders Equity | 1.96B | 1.96B | 1.17B | 793.15M | 947.16M | 596.25M |
Cash Flow | ||||||
| Free Cash Flow | 854.87M | -703.80M | -123.79M | -91.56M | -385.50M | 124.01M |
| Operating Cash Flow | 854.87M | -703.80M | -123.79M | -91.56M | -385.50M | 124.01M |
| Investing Cash Flow | -1.56B | 0.00 | 0.00 | 0.00 | -932.95M | -131.95M |
| Financing Cash Flow | 956.17M | 956.17M | 145.03M | 78.63M | 329.30M | 87.14M |
Oxford Lane Capital Technical Analysis
Negative
16.92
Price Trends
17.24
Negative
18.68
Negative
19.81
Negative
Market Momentum
-0.05
Positive
44.81
Neutral
13.77
Positive
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 16.92 is below the 20-day moving average (MA) of 17.47, below the 50-day MA of 17.24, and below the 200-day MA of 19.81, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.81 is Neutral, neither overbought nor oversold. The STOCH value of 13.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OXLC.
Oxford Lane Capital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | ― | 32.30 | 3.10% | 31.91% | 47.17% | -80.16% | |
58 Neutral | 311.91M | 5.98 | 17.16% | 6.41% | 18.36% | 17.28% | |
48 Neutral | 130.84M | 7.30 | ― | 13.35% | 52.57% | 13.36% | |
48 Neutral | 26.73M | -14.32 | -429.89% | ― | -27.89% | 51.00% | |
45 Neutral | 211.17M | 4.61 | ― | 2.83% | 168.31% | ― | |
45 Neutral | 131.10M | -73.36 | -0.86% | 25.00% | -569.90% | -144.29% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
OXLC
Oxford Lane Capital
16.92
-3.44
-16.90%
NEWT
Newtek Business
11.85
0.41
3.58%
SSSS
SuRo Capital
8.84
5.00
130.21%
OXSQ
Oxford Square Capital
1.68
-0.69
-29.11%
GECC
Great Elm Capital
11.31
2.55
29.11%
BCG
Binah Capital Group
1.61
-1.56
-49.21%
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.