Oxford Square Capital (OXSQ) AI Stock Analysis

• Market Cap: $146.19M
• Dividend Yield: 23.6%
• Average Volume (3M): 770.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -177.91%
• EPS Growth: 55.08%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.07
• Shares Outstanding: 81,669,410
• 10 Day Avg. Volume: 919,422
• 30 Day Avg. Volume: 770,560
• PEG Ratio: -0.37
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 8.69
• P/FCF Ratio: 6.02
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 22.18
• Enterprise Value/Gross Profit: 125.09
• Enterprise Value/Ebitda: -88.43
• 1Y Price Target: $1.75
• Price Target Upside: -1.69% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.32
• Revenue Forecast (FY): $38.99M

• Rating: 48 Neutral
• Price Target: $2.00 ▲(12.36% Upside)

Oxford Square Capital's overall stock score is primarily impacted by its financial performance challenges, including negative profitability and cash flow issues. While technical analysis and valuation provide some positive aspects, the earnings call's negative sentiment and concerns about dividend sustainability weigh heavily on the score.

Positive Factors

Revenue Growth

Strong revenue growth suggests effective investment strategies and expanding income streams, supporting long-term business sustainability.

Successful Debt Management

Effective debt management enhances financial flexibility and reduces interest expenses, contributing to long-term financial health.

Share Repurchase Program

The share repurchase program indicates confidence in the company's valuation and can enhance shareholder value over time.

Negative Factors

Decreasing Net Asset Value

A declining net asset value per share may indicate underlying asset performance issues, impacting investor confidence and long-term valuation.

Dividend Coverage Concerns

Inadequate dividend coverage raises sustainability concerns, potentially leading to reduced payouts and affecting income-focused investors.

Increased Losses

Rising losses can erode capital and limit future investment opportunities, posing a risk to long-term profitability and growth.

Oxford Square Capital Business Overview & Revenue Model

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.

How the Company Makes Money

Oxford Square Capital generates revenue primarily through interest income from its debt investments and capital gains from its equity investments. The company typically invests in senior secured loans, subordinated debt, and equity securities of middle-market companies, which allows it to earn interest payments and potential appreciation in equity value. A significant portion of its income is derived from the interest on loans that are often structured with favorable terms, providing a reliable income stream. Additionally, OXSQ may earn management fees from its investment activities, depending on its performance and asset management agreements. The company’s earnings can also be influenced by economic conditions and the performance of the underlying companies within its investment portfolio.

Oxford Square Capital Financial Statement Overview

Summary

Oxford Square Capital's financial performance is challenged by negative profitability and cash flow issues, despite strong revenue growth. The balance sheet is stable but unremarkable, with a negative return on equity indicating inefficiencies.

Income Statement

Oxford Square Capital shows a mixed performance in its income statement. The TTM data indicates a significant revenue growth rate of 74.43%, which is a positive sign. However, the company is struggling with profitability, as evidenced by a negative net profit margin and EBIT margin. This suggests challenges in managing costs or generating sufficient profit from its operations.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.72 in the TTM, indicating a reasonable level of leverage. However, the return on equity is negative, reflecting inefficiencies in generating returns from shareholders' equity. The equity ratio is not provided, but the overall leverage and equity management appear to be stable yet unremarkable.

Cash Flow

The cash flow statement highlights significant issues, with a massive negative free cash flow growth rate and negative operating cash flow. The operating cash flow to net income ratio is close to 1, suggesting that cash flow generation is not aligned with reported earnings, which is concerning for liquidity and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.22M	17.81M	33.57M	-69.03M	37.18M	13.42M
Gross Profit	1.81M	9.96M	22.75M	-81.38M	37.18M	5.54M
EBITDA	-2.56M	5.88M	17.24M	-85.55M	26.60M	1.71M
Net Income	-2.56M	5.88M	17.24M	-85.55M	39.58M	1.71M
Balance Sheet
Total Assets	314.74M	299.73M	277.67M	327.99M	433.51M	357.66M
Cash, Cash Equivalents and Short-Term Investments	50.79M	34.93M	5.74M	9.02M	9.02M	59.14M
Total Debt	151.39M	123.60M	122.98M	186.32M	185.38M	106.86M
Total Liabilities	155.78M	139.07M	126.36M	189.32M	188.91M	132.23M
Stockholders Equity	158.96M	160.67M	151.31M	138.67M	244.60M	225.43M
Cash Flow
Free Cash Flow	20.29M	25.71M	26.72M	19.62M	16.69M	19.04M
Operating Cash Flow	20.29M	25.71M	26.72M	19.62M	16.69M	19.04M
Investing Cash Flow	-42.09M	0.00	38.97M	752.49K	-124.12M	76.01M
Financing Cash Flow	29.40M	3.48M	-68.97M	-20.37M	57.31M	-52.37M

Oxford Square Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXSQ, the sentiment is Negative. The current price of 1.78 is below the 20-day moving average (MA) of 1.80, below the 50-day MA of 1.80, and below the 200-day MA of 2.01, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OXSQ.

Oxford Square Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OFS	70 Outperform	$69.40M	21.48	2.25%	23.49%	-14.76%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$168.05M	17.04	3.51%	21.72%	-55.82%	-4.97%
MRCC	64 Neutral	$136.93M	-33.61	-2.25%	15.46%	-34.92%	-132.22%
BCIC	60 Neutral	$160.38M	11.34	7.87%	16.47%	-5.23%	193.87%
OXSQ	48 Neutral	$146.19M	-49.72	-1.61%	23.60%	-177.91%	55.08%
GECC	48 Neutral	$96.03M	-12.77	-5.98%	21.70%	47.01%	-179.46%

Oxford Square Capital Corporate Events

Oxford Square Capital Announces Q3 2025 Financial Results

On November 4, 2025, Oxford Square Capital Corp. announced its financial results for the quarter ended September 30, 2025, highlighting a decrease in net asset value per share from $2.06 to $1.95. The company declared distributions for the first quarter of 2026 and reported a net investment income of $5.6 million. The Board authorized a share repurchase program of up to $25 million, reflecting strategic efforts to enhance shareholder value.