Oxford Square Capital (OXSQ) AI Stock Analysis

• Market Cap: $172.46M
• Dividend Yield: 19.18%
• Average Volume (3M): 614.73K
• Price to Earnings (P/E): 602.6
• Beta (1Y): 0.35
• Revenue Growth: -569.90%
• EPS Growth: -144.29%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.08
• Shares Outstanding: 78,034,610
• 10 Day Avg. Volume: 837,261
• 30 Day Avg. Volume: 614,731
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: -16.27
• Enterprise Value/Gross Profit: 10.45
• Enterprise Value/Ebitda: 16.12
• 1Y Price Target: $2.50
• Price Target Upside: 14.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $2.50 ▲(14.16% Upside)

Oxford Square Capital's overall stock score is driven by its mixed financial performance and valuation challenges. The company's high dividend yield and recent capital raising efforts are positive, but significant investment losses and leverage risks weigh on the score. Technical indicators and earnings call sentiment are neutral to slightly negative, further contributing to the moderate score.

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's financials present a mixed picture. The income statement reflects revenue and profitability volatility, while the balance sheet indicates a stable but leveraged position. Cash flow generation displays significant fluctuations, with TTM data showing improved cash flow performance. The company must address profitability issues and manage leverage to enhance its financial health.

Income Statement

Oxford Square Capital's income statement reveals significant volatility. The TTM data showcases a negative net income, indicating losses, while historical data shows fluctuating revenue growth and profit margins. The gross profit margin remains high, but the net profit margin is negative due to recent losses. Consistent profitability challenges and revenue instability dampen the overall score.

Balance Sheet

The balance sheet indicates a stable equity base with a high equity ratio over time. However, the debt-to-equity ratio is relatively high, which suggests potential leverage risks. The return on equity is inconsistent, reflecting past profitability issues. Overall, the company's balance sheet shows mixed stability with caution warranted regarding leverage.

Cash Flow

The cash flow statement shows erratic free cash flow growth, with significant fluctuations in operating cash flow. The TTM data, however, demonstrates exceptionally high operating cash flow, positively impacting the cash flow position. Despite this, the inconsistency across periods suggests volatility. The free cash flow to net income ratio indicates challenges in translating earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-14.79M	-53.55M	51.82M	43.12M	37.18M	35.94M
Gross Profit	23.04M	-58.12M	51.82M	43.12M	37.18M	35.94M
EBITDA	14.93M	13.73M	41.89M	33.04M	26.60M	27.59M
Net Income	-473.45K	5.88M	17.24M	-85.55M	39.58M	1.71M
Balance Sheet
Total Assets	285.49M	299.73M	277.67M	327.99M	433.51M	357.66M
Cash, Cash Equivalents and Short-Term Investments	37.25M	34.93M	5.74M	9.02M	9.02M	59.14M
Total Debt	123.75M	123.60M	122.98M	186.32M	185.38M	106.86M
Total Liabilities	136.61M	139.07M	126.36M	189.32M	188.91M	132.23M
Stockholders Equity	148.88M	160.67M	151.31M	138.67M	244.60M	225.43M
Cash Flow
Free Cash Flow	11.40M	25.71M	65.69M	20.37M	-107.43M	95.05M
Operating Cash Flow	11.40M	25.71M	65.69M	20.37M	-107.43M	95.05M
Investing Cash Flow	-28.75T	-76.36T	38.97M	752.49K	-124.12M	76.01M
Financing Cash Flow	4.94M	3.48M	-68.97M	-20.37M	57.31M	-52.37M

Oxford Square Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.19 is below the 20-day moving average (MA) of 2.28, below the 50-day MA of 2.25, and below the 200-day MA of 2.34, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.49 is Positive, 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	$111.74M	10.89	6.82%	16.29%	-53.07%	―
MRCC	69 Neutral	$160.76M	82.67	1.01%	13.51%	-17.51%	-75.48%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
WHF	67 Neutral	$198.26M	55.69	1.21%	20.90%	-49.76%	-84.43%
OXSQ	51 Neutral	$172.46M	602.56	-0.87%	19.18%	-569.90%	-144.29%
GECC	48 Neutral	$130.14M	7.18	13.18%	12.80%	52.57%	13.36%
SSSS	45 Neutral	$207.83M	4.53	29.40%	2.86%	168.31%	―

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.

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.

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.

Oxford Square Capital to Redeem $10M Notes

On June 18, 2025, Oxford Square Capital Corp. announced its decision to redeem $10,000,000 of its 6.25% Notes due 2026, with the redemption expected to occur on July 18, 2025. This move involves a redemption price of $25 per Note plus accrued interest, impacting $34.8 million of the outstanding Notes, and requires holders to present the Notes at U.S. Bank Corporate Trust Services.