Oxford Square Capital (OXSQ)
NASDAQ:OXSQ
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Oxford Square Capital
(NASDAQ:OXSQ)
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Rating:46Neutral
Price Target:
$2.00
▲(9.29% Upside)
Action:ReiteratedDate:03/06/26
The score is held down primarily by weak financial performance (TTM loss and unusually poor cash-flow profile) and a negative earnings-call backdrop (material NAV decline and sharply higher losses). Technicals are mildly supportive and the very high dividend yield helps, but valuation remains risky given negative earnings.
Positive Factors
Stable income-focused BDC business model
OXSQ's core BDC model centers on contractual interest, CLO cash distributions and fee income, providing durable cash generation tied to underlying loan coupons and CLO waterfalls. That recurring income profile supports longer-term ability to pay distributions and deploy capital across credit cycles.
Negative Factors
Material NAV decline
A 13% quarterly NAV drop signals significant portfolio markdowns and erodes the equity base that supports distributions. Persistent NAV pressure can constrain future payout sustainability, raise refinancing or capital-raising needs, and indicate lingering mark-to-market risks in CLO and loan holdings over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable income-focused BDC business model
OXSQ's core BDC model centers on contractual interest, CLO cash distributions and fee income, providing durable cash generation tied to underlying loan coupons and CLO waterfalls. That recurring income profile supports longer-term ability to pay distributions and deploy capital across credit cycles.
Read all positive factors
Oxford Square Capital (OXSQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$147.02M
Dividend Yield24.14%
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)0.28
Revenue Growth-177.91%
EPS Growth55.08%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.07
Shares Outstanding87,510,730
10 Day Avg. Volume1,703,973
30 Day Avg. Volume1,495,103
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.93
Price to Sales (P/S)5.72
P/FCF Ratio7.34
Enterprise Value/Market Cap1.72
Enterprise Value/Revenue20.96
Enterprise Value/Gross Profit57.34
Enterprise Value/Ebitda-15.86
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.28
Revenue Forecast (FY)$40.98M
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...
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 m...
Oxford Square Capital Earnings Call Summary
Earnings Call Date:Mar 03, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Negative
The call presented a mix of stability in operating income and active portfolio management (continued distributions, modestly higher total investment income, new investments and capital raised), but was dominated by negative marks: a substantial quarter-over-quarter NAV decline (-13.3%), a large increase in realized and unrealized losses (~$18.3M, +144% vs prior quarter), CLO equity markdowns, rising distress in lower-rated loans and weak primary issuance/outflows. The negative items are material and outweigh the positives.Positive Updates
Maintained Net Investment Income
Net investment income of approximately $5.4 million, or $0.07 per share, for the quarter (slight decrease from $5.6 million prior quarter, approximately -3.6%).
Negative Updates
Significant Decline in Net Asset Value
Net asset value (NAV) per share declined to $1.69 from $1.95 in the prior quarter, a decrease of $0.26 per share or roughly -13.3% quarter-over-quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Maintained Net Investment Income
Net investment income of approximately $5.4 million, or $0.07 per share, for the quarter (slight decrease from $5.6 million prior quarter, approximately -3.6%).
Read all positive updates
Company Guidance
The company’s explicit near-term guidance was the Board’s declaration of monthly distributions of $0.035 per share for each of April, May and June 2026 (see press release for record/payment dates); management also reiterated a permanent‑capital, long‑term investment posture and a continued focus on portfolio‑management strategies to maximize long‑term total return while pursuing opportunities in both the primary and secondary markets amid slower issuance. For context, Q4 net investment income was approximately $5.4M ($0.07/share) with NAV of $1.69 (down from $1.95), total investment income of ~$10.4M, combined net unrealized and realized losses of ~$18.3M ($0.22/share) versus ~$7.5M ($0.09/share) in the prior quarter, purchases of ~$18M and repayments of ~$7.4M, and ~4.3M ATM shares issued for net proceeds of ~$7.9M; market metrics cited included the LSTA loan index falling from 97.06% to 96.64%, BB/B/CCC price moves of -8bps/+18bps/-265bps, 12‑month trailing defaults of 1.23% (from 1.47%) with an adjusted default measure of 3.35%, a distress ratio rising to 4.34% (from 2.88%), U.S. leveraged loan primary issuance of $70.7B (‑27% YoY) and loan fund outflows of about $3.2B; the call also included customary forward‑looking statement disclosures.Oxford Square Capital Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
12
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 23.51M | 17.81M | 33.57M | -69.03M | 37.18M |
| Gross Profit | 19.17M | 9.96M | 22.75M | -81.38M | 37.18M |
| EBITDA | -9.49M | 5.88M | 17.24M | -85.55M | 26.60M |
| Net Income | -18.73M | 5.88M | 17.24M | -85.55M | 39.58M |
Balance Sheet | |||||
| Total Assets | 306.74M | 299.73M | 277.67M | 327.99M | 433.51M |
| Cash, Cash Equivalents and Short-Term Investments | 51.93M | 34.93M | 5.74M | 9.02M | 9.02M |
| Total Debt | 157.58M | 123.60M | 122.98M | 186.32M | 185.38M |
| Total Liabilities | 161.33M | 139.07M | 126.36M | 189.32M | 188.91M |
| Stockholders Equity | 145.40M | 160.67M | 151.31M | 138.67M | 244.60M |
Cash Flow | |||||
| Free Cash Flow | 18.34M | 25.71M | 26.72M | 19.62M | 16.69M |
| Operating Cash Flow | 18.34M | 25.71M | 26.72M | 19.62M | 16.69M |
| Investing Cash Flow | -32.07M | 0.00 | 38.97M | 752.49K | -124.12M |
| Financing Cash Flow | 30.75M | 3.48M | -68.97M | -20.37M | 57.31M |
Oxford Square Capital Technical Analysis
Negative
1.83
Price Trends
1.77
Negative
1.74
Negative
1.79
Negative
Market Momentum
-0.02
Positive
40.58
Neutral
9.73
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 1.83 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.77, and above the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.58 is Neutral, neither overbought nor oversold. The STOCH value of 9.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OXSQ.
Oxford Square Capital Risk Analysis
Oxford Square Capital disclosed 73 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $158.75M | 11.23 | 5.30% | 21.24% | -55.82% | -4.97% | |
59 Neutral | $97.50M | -13.03 | -2.90% | 14.03% | -34.92% | -132.22% | |
52 Neutral | $89.93M | 11.33 | 5.90% | 16.60% | -5.23% | 193.87% | |
52 Neutral | $42.74M | -1.93 | -23.38% | 25.87% | -14.76% | ― | |
49 Neutral | $68.03M | -2.74 | -24.20% | 22.43% | 47.01% | -179.46% | |
46 Neutral | $147.02M | -7.18 | -12.27% | 24.14% | -177.91% | 55.08% |
* Financial Sector Average
OXSQ
Oxford Square Capital
1.68
-0.41
-19.69%
BCIC
BCP Investment Corporation
7.26
-5.06
-41.08%
WHF
WhiteHorse
7.14
-0.97
-12.00%
OFS
OFS Capital
3.19
-4.41
-58.02%
MRCC
Monroe Capital
4.50
-2.34
-34.17%
GECC
Great Elm Capital
4.86
-3.88
-44.42%
Oxford Square Capital Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Oxford Square Declares Q2 2026 Monthly Distributions
Negative
Mar 3, 2026
Oxford Square Capital reported financial results for the quarter ended December 31, 2025, showing a decline in net asset value per share to $1.69 from $1.95 on September 30, 2025, driven by net unrealized depreciation of about $16.0 million and ne...
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.