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Oxford Square Capital
(NASDAQ:OXSQ)
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Rating:55Neutral
Price Target:
$1.50
▲(6.38% Upside)
Action:Reiterated
Date:08/01/26
The score is held back primarily by weak and volatile financial performance, especially the severe TTM cash-flow deterioration and recent losses. Offsetting factors include constructive price positioning above key moving averages and an earnings call indicating near-term operational improvement and a large reduction in investment losses, though dividend coverage and dilution/CLO-equity concentration risks keep the outlook only moderately positive.
Positive Factors
Business model: predictable interest income
As a BDC focused on middle‑market debt, Oxford Square earns contractual interest, fees and CLO distributions that create a durable income base. Floating‑rate debt and fee income help the firm generate recurring cash inflows over cycles, supporting long‑term payout potential if credit trends remain stable.
Negative Factors
Severely negative trailing cash flow
Trailing‑twelve‑month operating and free cash flows swung to massively negative levels, signaling a meaningful disruption in cash generation. For a BDC that must fund distributions and leverage, persistently weak cash flow increases reliance on capital markets and heightens refinancing and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Business model: predictable interest income
As a BDC focused on middle‑market debt, Oxford Square earns contractual interest, fees and CLO distributions that create a durable income base. Floating‑rate debt and fee income help the firm generate recurring cash inflows over cycles, supporting long‑term payout potential if credit trends remain stable.
Read all positive factors
Oxford Square Capital (OXSQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$156.54M
Dividend Yield28.19%
Average Volume (3M)1.43M
Price to Earnings (P/E)―
Beta (1Y)0.40
Revenue GrowthN/A
EPS Growth-1756.77%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.43
Shares Outstanding105,058,240
10 Day Avg. Volume1,474,516
30 Day Avg. Volume1,431,781
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.93
Price to Sales (P/S)-26.88
P/FCF Ratio7.34
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.17
Revenue Forecast (FY)$34.31M
Oxford Square Capital Business Overview & Revenue Model
Company Description
Oxford Square Capital Corp. functions as a business development company (BDC) and a non-diversified, closed-end investment management entity, specializing in private equity and mezzanine financing. The firm's investment scope includes both publicl...
How the Company Makes Money
OXSQ makes money primarily from investment income generated by its portfolio. The key revenue stream is interest income earned on debt investments (e.g., senior secured and subordinated loans) made to portfolio companies; these loans typically pay...
Oxford Square Capital Earnings Call Summary
Earnings Call Date:Jul 31, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call communicated several encouraging operational and market developments: quarter-over-quarter growth in NII and total investment income, a dramatic reduction in realized/unrealized losses, successful resolution of a nonaccrual, proactive capital raising via an ATM, and active deployment into higher-yielding CLO equity amid an improving loan market backdrop. Offsetting these positives are a modest NAV decline, dividend coverage shortfall (NII per share below distributions), concentration risk from CLO equity purchases, and potential dilution from the ATM issuance. Overall, the positive operational improvements and market tailwinds outweigh the negatives, though key risks remain around dividend coverage and CLO equity concentration.Positive Updates
Net Investment Income (NII) Increased Quarter-over-Quarter
NII was approximately $5.1M (or $0.05 per share) for the quarter versus $4.1M in the prior quarter, an increase of ~24% quarter-over-quarter.
Negative Updates
Net Asset Value (NAV) Decline
NAV per share decreased to $1.29 from $1.32 in the prior quarter, a decline of ~$0.03 per share (≈-2.3%).
Read all updates
Q2-2026 Updates
Positive
Negative
Net Investment Income (NII) Increased Quarter-over-Quarter
NII was approximately $5.1M (or $0.05 per share) for the quarter versus $4.1M in the prior quarter, an increase of ~24% quarter-over-quarter.
Read all positive updates
Company Guidance
Guidance in the call was limited but concrete: the Board declared monthly distributions of $0.035 per share for each of October, November and December 2026 (and the company had distributed $0.105 per share during Q2); Q2 2026 results highlighted net investment income of ~ $5.1M ($0.05/share) vs ~$4.1M in the prior quarter, NAV of $1.29/share vs $1.32, total investment income of ~$9.4M vs $8.9M, combined net unrealized/realized losses of ~$1.1M ($0.01/share) vs ~$29.7M ($0.34/share) prior quarter, purchases of ~$19.9M and repayments of ~$0.5M, and issuance of ~11.3M ATM shares for net proceeds of ~$17.8M; portfolio actions were all secondary‑market CLO‑equity purchases with cash‑on‑cash and forward effective yields in the low‑20s, one prior nonaccrual was restructured into a new first‑lien term loan now on accrual, and market context included the Morningstar LSTA loan index rising from 94.63% to 94.96% of par, BB +32 bps/B +42 bps/CCC +6 bps, 12‑month trailing default rate down to 0.97% from 1.44% (2.77% including liability management, down from 3.48%), a distress ratio of 6.87% (vs 7.23%), U.S. leveraged loan primary issuance of $101.8B (up 33% y/y) and loan fund inflows of ~$1B; management declined to provide forward earnings projections.Oxford Square Capital Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
12
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | -21.60M | -5.00M | 17.81M | 33.57M | -69.03M | 37.18M |
| Gross Profit | -31.68M | -14.25M | 9.96M | 22.75M | -81.38M | 37.18M |
| EBITDA | -36.13M | -18.73M | 5.88M | 17.24M | -85.55M | 26.60M |
| Net Income | -36.13M | -18.73M | 5.88M | 17.24M | -85.55M | 39.58M |
Balance Sheet | ||||||
| Total Assets | 278.86M | 306.74M | 299.73M | 277.67M | 327.99M | 433.51M |
| Cash, Cash Equivalents and Short-Term Investments | 40.92M | 51.93M | 34.93M | 5.74M | 9.02M | 9.02M |
| Total Debt | 151.87M | 157.58M | 123.60M | 122.98M | 186.32M | 185.38M |
| Total Liabilities | 155.59M | 161.33M | 139.07M | 126.36M | 189.32M | 188.91M |
| Stockholders Equity | 123.27M | 145.40M | 160.67M | 151.31M | 138.67M | 244.60M |
Cash Flow | ||||||
| Free Cash Flow | -32.08M | 18.34M | 25.71M | 26.72M | 19.62M | 16.69M |
| Operating Cash Flow | -32.08M | 18.34M | 25.71M | 26.72M | 19.62M | 16.69M |
| Investing Cash Flow | -2.04M | -32.07M | 0.00 | 38.97M | 752.49K | -124.12M |
| Financing Cash Flow | 37.79M | 30.75M | 3.48M | -68.97M | -20.37M | 57.31M |
Oxford Square Capital Technical Analysis
Positive
1.41
Price Trends
1.37
Positive
1.50
Negative
1.54
Negative
Market Momentum
0.03
Negative
56.16
Neutral
59.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXSQ, the sentiment is Positive. The current price of 1.41 is below the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.37, and below the 200-day MA of 1.54, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.16 is Neutral, neither overbought nor oversold. The STOCH value of 59.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OXSQ.
Oxford Square Capital Risk Analysis
Oxford Square Capital disclosed 74 risk factors in its most recent earnings report. Oxford Square Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oxford Square Capital Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $92.88M | 8.24 | 2.91% | 16.81% | 218.26% | 64.44% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $145.61M | 16.87 | 3.58% | 17.99% | -58.30% | 2.72% | |
55 Neutral | $156.54M | -3.34 | -25.97% | 29.79% | ― | -1756.77% | |
54 Neutral | $81.67M | -1.83 | -34.10% | 24.71% | -11.06% | -288.02% | |
51 Neutral | $51.85M | -2.35 | -29.04% | 25.99% | -43.53% | -316.63% |
* Financial Sector Average
OXSQ
Oxford Square Capital
1.45
-0.43
-22.83%
BCIC
BCP Investment Corporation
7.65
-2.80
-26.78%
WHF
WhiteHorse
6.71
-0.56
-7.68%
OFS
OFS Capital
3.64
-3.40
-48.30%
GECC
Great Elm Capital
5.62
-3.51
-38.44%
Oxford Square Capital Corporate Events
DividendsFinancial DisclosuresPrivate Placements and Financing
Oxford Square Capital Posts Stronger Q2 2026 Earnings
Positive
Jul 31, 2026
On July 31, 2026, Oxford Square Capital reported second-quarter 2026 results showing net asset value per share of $1.29, down from $1.32 at March 31, while total net assets fell to $135.0 million from $145.4 million at year-end 2025. Net investmen...
DividendsFinancial DisclosuresPrivate Placements and Financing
Oxford Square Capital Reports Second-Quarter 2026 Results
Neutral
Jul 31, 2026
On July 31, 2026, Oxford Square Capital reported financial results for the quarter ended June 30, 2026, showing net asset value per share of $1.29, down from $1.32 on March 31, 2026, and net investment income of approximately $5.1 million, or $0.0...
Private Placements and FinancingRegulatory Filings and Compliance
Oxford Square Capital Amends ATM Equity Distribution Agreement
Positive
May 6, 2026
On May 5, 2026, Oxford Square Capital Corp. amended its existing equity distribution agreement with Oxford Square Management, Oxford Funds, Lucid Capital Markets and Ladenburg Thalmann Co. Inc., allowing continued sales of common stock under its ...
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.