Oxford Square Capital (OXSQ) AI Stock Analysis

• Market Cap: $146.71M
• Dividend Yield: 21.88%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.30
• 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: 78,034,610
• 10 Day Avg. Volume: 618,949
• 30 Day Avg. Volume: 1,025,055
• PEG Ratio: -0.37
• Price to Book (P/B): 0.96
• Price to Sales (P/S): -2.89
• P/FCF Ratio: 6.02
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: -11.92
• Enterprise Value/Gross Profit: 13.28
• Enterprise Value/Ebitda: 19.61
• 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): $40.20M

• Rating: 51 Neutral
• Price Target: $2.00 ▲(12.36% Upside)

The overall stock score of 51 reflects significant financial instability and poor valuation, which are partially offset by neutral technical indicators. The company's negative revenue and profitability, coupled with a negative P/E ratio, highlight substantial risks. The high dividend yield is attractive but may not be sustainable.

Oxford Square Capital Business Overview & Revenue Model

Company Description

Oxford Square Capital (OXSQ) is a publicly traded business development company that specializes in providing debt and equity financing to middle-market companies across various sectors. The firm primarily focuses on investing in senior secured loans, subordinated debt, and equity co-investments, targeting businesses that exhibit strong growth potential. By leveraging its investment expertise, OXSQ aims to deliver attractive risk-adjusted returns to its shareholders while supporting the growth of its portfolio companies.

How the Company Makes Money

Oxford Square Capital generates revenue primarily through interest income earned on its debt investments and dividend income from equity investments in its portfolio companies. The firm invests in a diversified portfolio of loans, including senior secured loans and subordinated debt, which typically carry higher interest rates than traditional fixed-income investments. Additionally, OXSQ may receive fees associated with origination, management, and servicing of its investments. The company's revenue model is further supported by its ability to attract capital through equity and debt offerings, allowing it to expand its investment capabilities. Significant partnerships with financial institutions and investment firms also enhance its deal flow and investment opportunities, contributing to its overall earnings.

Oxford Square Capital Financial Statement Overview

Summary

Oxford Square Capital exhibits financial instability with negative revenue and profitability in the TTM period. Moderate debt levels are overshadowed by negative return on equity and declining cash flow growth, indicating significant operational and financial challenges.

Income Statement

Oxford Square Capital's income statement shows volatility with negative revenue in the TTM period, although there was a significant revenue growth rate of 29.01%. The net profit margin is negative, indicating losses, and the EBIT and EBITDA margins are also negative, reflecting operational challenges. The company has experienced fluctuating revenue growth rates over the years, with a notable decline in profitability.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.72 in the TTM period, indicating manageable leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio is not explicitly calculated, but the overall financial stability appears moderate with some potential risks due to fluctuating equity values.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth by 70.39% in the TTM period. The operating cash flow to net income ratio is close to 1, suggesting limited cash flow generation relative to net income. The company has faced challenges in sustaining positive cash flow growth, impacting its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-19.03M	-53.55M	51.82M	43.12M	37.18M	35.94M
Gross Profit	17.08M	-58.12M	51.82M	43.12M	37.18M	35.94M
EBITDA	11.57M	13.73M	41.89M	33.04M	26.60M	27.59M
Net Income	-1.35M	5.88M	17.24M	-85.55M	39.58M	1.71M
Balance Sheet
Total Assets	274.85M	299.73M	277.67M	327.99M	433.51M	357.66M
Cash, Cash Equivalents and Short-Term Investments	29.79M	34.93M	5.74M	9.02M	9.02M	59.14M
Total Debt	113.95M	123.60M	122.98M	186.32M	185.38M	106.86M
Total Liabilities	117.42M	139.07M	126.36M	189.32M	188.91M	132.23M
Stockholders Equity	157.42M	160.67M	151.31M	138.67M	244.60M	225.43M
Cash Flow
Free Cash Flow	3.38M	25.71M	65.69M	20.37M	-107.43M	95.05M
Operating Cash Flow	3.38M	25.71M	65.69M	20.37M	-107.43M	95.05M
Investing Cash Flow	-46.22T	0.00	38.97M	752.49K	-124.12M	76.01M
Financing Cash Flow	-3.60M	3.48M	-68.97M	-20.37M	57.31M	-52.37M

Oxford Square Capital Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OXSQ, the sentiment is Neutral. The current price of 1.78 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.87, and below the 200-day MA of 2.16, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 77.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$68.46M	21.19	2.25%	22.78%	-14.76%	―
MRCC	69 Neutral	$151.66M	79.28	1.01%	14.29%	-17.51%	-75.48%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$165.96M	46.67	1.21%	22.06%	-49.76%	-84.43%
BCIC	55 Neutral	$156.72M	―	-4.79%	18.13%	-62.82%	-170.97%
OXSQ	51 Neutral	$146.71M	―	-1.61%	21.88%	-177.91%	55.08%
GECC	48 Neutral	$86.42M	4.76	-5.98%	19.56%	47.01%	-179.46%

Oxford Square Capital Corporate Events

Oxford Square Capital Holds Annual Stockholder Meeting

On August 20, 2025, Oxford Square Capital Corp. held its Annual Meeting of Stockholders, where key proposals were voted upon. Stockholders elected Barry A. Osherow as a director for a three-year term and ratified PricewaterhouseCoopers LLP as the independent public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (OXSQ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Oxford Square Capital stock, see the OXSQ Stock Forecast page.

Oxford Square Capital to Redeem Notes in September

On August 20, 2025, Oxford Square Capital Corp. announced its decision to redeem $24,790,750 in aggregate principal amount of its 6.25% Notes due 2026. The redemption is scheduled for September 19, 2025, after which the Notes will be delisted from the NASDAQ Global Select Market. This move is part of the company’s financial strategy, potentially impacting stakeholders by altering the company’s debt structure and market presence.

The most recent analyst rating on (OXSQ) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Oxford Square Capital stock, see the OXSQ Stock Forecast page.

Oxford Square Capital Corp. Reports Q2 2025 Results

Oxford Square Capital Corp. is a publicly-traded business development company primarily focused on investing in syndicated bank loans and, to a lesser extent, in debt and equity tranches of collateralized loan obligation (CLO) vehicles. The company recently released its financial results for the quarter ended June 30, 2025, along with the declaration of distributions on common stock for the upcoming months.

Oxford Square Capital Completes $65M Public Offering

On August 7, 2025, Oxford Square Capital Corp. completed a public offering of $65 million in 7.75% Notes due 2030, with the option for underwriters to purchase an additional $9.75 million in Notes. The proceeds from this offering are intended to repay debt, acquire investments, and support general corporate purposes. The Notes, listed on NASDAQ under ‘OXSQH’, will mature on July 31, 2030, with interest paid quarterly. This move is expected to enhance Oxford Square’s financial flexibility and investment capacity, potentially impacting its market positioning and stakeholder interests.

Oxford Square Capital Reports Q2 2025 Financial Results

On August 7, 2025, Oxford Square Capital Corp. announced its financial results for the quarter ended June 30, 2025, revealing a slight decline in net asset value per share to $2.06 from $2.09 in the previous quarter. The company declared distributions on common stock for the months ending October, November, and December 2025, maintaining a distribution amount of $0.035 per share for each month. The financial results showed a decrease in net investment income to $5.5 million from $6.1 million in the previous quarter, with total investment income also dropping to $9.5 million from $10.2 million. Despite these declines, the company recorded a net increase in net assets resulting from operations of approximately $4.4 million. The announcement reflects Oxford Square’s ongoing efforts to manage its investment portfolio amid fluctuating market conditions, impacting its financial performance and shareholder returns.

Oxford Square Capital Announces $65M Notes Issuance

On July 31, 2025, Oxford Square Capital Corp. announced an underwriting agreement with Lucid Capital Markets, LLC for the issuance and sale of $65 million in 7.75% Notes due 2030, with an option for an additional $9.75 million. The closing of this offering is anticipated on August 7, 2025, pending customary conditions, and is part of the company’s shelf registration with the SEC.