HOUSTON, Aug. 10, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation $(SCM)$ ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2026.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2026, in which we earned both U.S. GAAP net investment income and core net investment income of $0.26 per share and net realized income of $0.01 per share. During the quarter, we funded $18 million of investments and received $49 million of repayments, resulting in a total portfolio of $968 million at fair value. I'm also pleased to report that since we announced our Share Repurchase Program in March, we have repurchased 467,317 shares at an average price of $8.50 per share."
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended Six Months Ended
--------------------------------------- ----------------------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
Amount Per Share Amount Per Share Amount Per Share Amount Per Share
------ ---------- ------- ---------- ------- ---------- ------- ----------
Net investment
income $7.53 $0.26 $9.56 $0.34 $15.03 $0.52 $19.35 $0.69
Core net
investment
income(1) 7.56 0.26 9.99 0.35 15.42 0.53 20.28 0.72
Net realized
loss on
investments (7.24) (0.25) (0.86) (0.03) (6.49) (0.22) (6.83) (0.24)
Net realized
loss on
foreign
currency
translation -- -- (0.02) -- -- -- (0.05) --
Total realized
income(2) $0.29 $0.01 $8.68 $0.31 $8.54 $0.30 $12.47 $0.45
Distributions (9.80) (0.34) (11.36) (0.40) (19.64) (0.68) (22.45) (0.80)
Net unrealized
change in
appreciation
on
investments 15.90 0.55 1.44 0.05 9.35 0.32 2.63 0.09
Net unrealized
change in
appreciation
(depreciation)
on foreign
currency
translation 0.02 -- 0.03 -- (0.03) -- 0.04 --
Net increase in
net assets
resulting from
operations $16.21 $0.56 $10.15 $0.36 $17.86 $0.62 $15.14 $0.54
Weighted
average shares
outstanding 28,869,028 28,412,849 28,907,925 28,009,969
(1) Core net investment income, as presented, excludes the impact of capital
gains incentive fees (reversal) and income taxes, the majority of which
are excise taxes. The Company believes presenting core net investment
income and the related per share amount is a useful supplemental
disclosure for analyzing its financial performance. However, core net
investment income is a non-U.S. GAAP measure and should not be considered
as a replacement for net investment income and other earnings measures
presented in accordance with U.S. GAAP. A reconciliation of net
investment income in accordance with U.S. GAAP to core net investment
income is presented in the table below the financial statements.
(2) Total realized income is the sum of net investment income, net realized
gains (losses) on investments, net realized gains (losses) on foreign
currency, and losses on debt extinguishment, all U.S. GAAP measures.
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of As of
June 30, 2026 December 31, 2025
------------- -----------------
Investments at
fair value $968.2 $1,007.6
Total assets $982.1 $1,041.3
Net assets $367.0 $371.2
Shares
outstanding 28,672,911 28,947,254
Net asset value
per share $12.80 $12.82
Three Months Ended Six Months Ended
-------------------------------- ----------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
------------- ----------------- ------------- -------------
New investments $18.0 $22.8 $45.7 $78.2
Repayments of
investments (49.2) (31.6) (90.9) (46.6)
------------- ----------------- ------------- -------------
Net activity ($31.2) ($8.8) ($45.2) $31.6
As of As of
June 30, 2026 December 31, 2025
------------- -----------------
Number of
portfolio
company
investments 116 115
Number of debt
investments 98 100
Weighted average
yield of debt
and other income
producing
investments (3)
Cash 7.9 % 8.5 %
Payment-in-kind
("PIK") 0.8 % 0.5 %
Fee amortization 0.3 % 0.3 %
------------- -----------------
Total 9.0 % 9.3 %
Weighted average
yield of total
investments(4)
Cash 7.4 % 7.9 %
PIK 0.7 % 0.5 %
Fee amortization 0.3 % 0.3 %
------------- -----------------
Total 8.4 % 8.7 %
(3) The dollar-weighted average annualized effective yield is computed
using the effective interest rate for our debt investments and other
income producing investments, including cash and PIK interest, as well
as the accretion of deferred fees. The individual investment yields are
then weighted by the respective cost of the investments (as of the date
presented) in calculating the weighted average effective yield of the
portfolio. The dollar-weighted average annualized yield on the
Company's investments for a given period will generally be higher than
what investors in the Company's common stock would realize in a return
over the same period because the dollar-weighted average annualized
yield does not reflect the Company's expenses or any sales load that
may be paid by investors.
(4) The dollar-weighted average yield on total investments takes the same
yields as calculated in the footnote above but weights them to
determine the weighted average effective yield as a percentage of the
Company's total investments, including non-income producing equity
positions and debt investments on non-accrual status.
Results of Operations
Investment income for the three months ended June 30, 2026 and 2025 totaled $22.3 million and $25.7 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $14.8 million and $17.1 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $4.3 million, income incentive fees totaled $0.2 million and $2.2 million, fees and expenses related to our borrowings totaled $8.5 million and $8.7 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.0 million and $0.4 million and other expenses totaled $1.1 million and $1.0 million. The Company waived $0.0 million and $1.0 million of income incentive fees due to the total return limitation pursuant to the provisions of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2026 and 2025, respectively, for net operating expenses of $14.8 million and $16.1 million, respectively.
Net investment income was $7.5 million and $9.6 million, or $0.26 and $0.34 per common share based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended June 30, 2026 and 2025 was $7.6 million and $10.0 million, or $0.26 and $0.35 per share, respectively.
For the three months ended June 30, 2026 and 2025, the Company's investment portfolio had a net change in unrealized appreciation of $15.9 million and $1.4 million, respectively, and the Company had net realized losses of ($7.2) million and ($0.9) million, respectively.
Net increase in net assets resulting from operations totaled $16.2 million and $10.1 million, or $0.56 and $0.36 per common share, based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively.
Liquidity and Capital Resources
As of June 30, 2026, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of both June 30, 2026 and December 31, 2025, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million.
As of June 30, 2026 and December 31, 2025, the Company had $222.2 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.
On March 3, 2026, the Company announced that its Board authorized a program for the purpose of repurchasing up to $20,0 million of its shares of common stock (the "Repurchase Program"). Under the Repurchase Program, the Company may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time, provided that the Company complies with the requirements under its Code of Ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. Unless amended or extended by the Board, the Repurchase Program will expire on the earlier of March 2, 2027 or when $20.0 million of the Company's outstanding shares of common stock have been repurchased.
During the three months ended June 30, 2026, the Company repurchased 274,343 shares of its common stock under the Repurchase Program for an aggregate purchase price of $2,447,682, including commissions, at a weighted average net repurchase price of $8.92 per share.
Distributions
For the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share, respectively ($9.8 million and $11.4 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended June 30, 2026:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ------ --------------- -------------- ----------- -----------
Offers
residential
property
brokerage,
title &
settlement,
and
property
and
casualty
insurance
brokerage
services to
April home buyers Senior
Add-On 1, EH Real Estate and Secured --
Investment 2026 Services, LLC* sellers $190,093 First Lien
New April VeloSource Locum tenens $ 200,000 Senior
Investment 3, Purchaser, LLC staffing Secured --
2026 agency First Lien
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 18,605 Equity
Add-On April Venbrook Buyer, An $ 1,256,415 Senior
Investment 13, LLC* independent Secured --
2026 insurance First Lien
services
broker
New April Solomon An $ 4,196,557 Senior
Investment 13, AcquisitionCo, innovative Secured --
2026 LLC process First Lien
automation
and digital
systems
integrator
$ 100,000 Revolver
Commitment
$ 186,807 Equity
New April OW RSG LLC Manufacturer $ 4,000,000 Senior
Investment 27, of walk-in Secured --
2026 coolers, First Lien
freezers,
and
refrigerati
on systems
$ 100,000 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 324,074 Equity
Add-On April Venbrook Buyer, An $ 502,566 Senior
Investment 28, LLC* independent Secured --
2026 insurance First Lien
services
broker
Add-On April Advanced Barrier Manufacturer $ 330,250 Senior
Investment 28, Extrusions, of flexible Secured --
2026 LLC* packaging First Lien
Add-On June 1, Venbrook Buyer, An $ 736,152 Senior
Investment 2026 LLC* independent Secured --
insurance First Lien
services
broker
Add-On June Venbrook Buyer, An $ 352,052 Senior
Investment 26, LLC* independent Secured --
2026 insurance First Lien
services
broker
Add-On June Monarch Provider of $ 29,822 Convertible
Investment 29, Behavioral center-base Promissory
2026 Therapy, LLC* d applied Note
behavioral
analysis
therapy
services
Add-On June Valor Buyco LLC* Provider of $ 120,000 Delayed
Investment 30, dispatched Draw Term
2026 road Loan
services Commitment
*Existing portfolio company
The Company realized investments in the following portfolio companies during the three months ended June 30, 2026:
Activity Company Company Proceeds Realized Instrument
Type Date Name Description Received Gain Type
------------ ------ ---------- -------------- ----------- ---------- -----------
Provider of
revenue
growth
management
consulting
services
for private
Sales equity-owne
April Benchmark d and large Senior
Full 17, Index, enterprise Secured --
Repayment 2026 LLC clients $11,968,656 $ -- First Lien
Revolver
$ 443,820 $ -- Commitment
Full Realization $ 486,925 $(178,805) Equity
Provider of
equine
competition
s, content,
April Equine products, Senior
Full 24, Network, and Secured --
Repayment 2026 LLC services $ 9,043,164 $ -- First Lien
Delayed
Draw Term
Loan
$ 97,900 $ -- Commitment
Revolver
$ 166,667 $ -- Commitment
Manufacturer
of
single-use
April Cerebro electrodes Senior
Full 30, Buyer, for medical Secured --
Repayment 2026 LLC procedures $ 4,526,683 $ -- First Lien
Delayed
Draw Term
Loan
$ 376,902 $ -- Commitment
Provider of
digital
media
services to
Premiere the
Digital entertainme Senior
Full May 21, Services, nt Secured --
Repayment 2026 Inc. industry. $12,038,926 $ -- First Lien
Distributor
of
specialty
chemicals,
oils, and
lubricants
into the
food &
beverage,
lubricants,
flavor and
fragrances,
personal
care, and
June other Senior
Full 30, Tilley chemicals Secured --
Repayment 2026 Company end-markets $ 44,110 $ -- First Lien
Revolver
$ 13,043 $ -- Commitment
Events Subsequent to June 30, 2026
The Company's management has evaluated subsequent events through August 10, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to June 30, 2026:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ------- ------------- ------------------ ----------- -----------
Regional
Blade provider of
Landscape commercial
Add-On July 2, Investments, landscaping
Investment 2026 LLC* services $ 5,250 Equity
New July 16, Emergent Microsoft-centr $ 3,197,377 Senior
Investment 2026 Software ic data, AI, Secured --
and cloud IT First Lien
services
partner
$ 2,664,481 Delayed
Draw Term
Loan
Commitment
$ 500,000 Revolver
Commitment
$ 306,732 Equity
New August LJ Welding Manufacturer of $ 7,693,688 Senior
Investment 5, Automation material Secured --
2026 Ltd. handling and First Lien
welding
automation
systems
$ 500,000 Revolver
Commitment
$ 303,470 Equity
*Existing portfolio company
The Company realized investments in the following portfolio companies subsequent to June 30, 2026:
Activity Company Proceeds Instrument
Type Date Company Name Description Received Type
---------- ----- ----------------- ------------ ----------- -----------
Provider
of LED
lighting Senior
July systems Secured --
Full 1, General LED OPCO, and Second
Repayment 2026 LLC modules $ 4,500,000 Lien
Full July MacKenzie-Childs Lifestyle $ 86,331 Senior
Repayment 27, Acquisition, home Secured --
2026 Inc. déco First Lien
r brand
Full July U.S. Expediters, Reseller $14,236,513 Senior
Repayment 30, LLC of CPAP Secured --
2026 machines First Lien
and
accessori
es
Credit Facility
The outstanding balance under the Credit Facility as of August 10, 2026 was $211.7 million.
SBA Licensing
On July 14, 2026, we received a license from the SBA for the SBIC III subsidiary, which allows us to contribute $125.0 million of equity and draw up to $250.0 million of SBA-guaranteed debentures, subject to the increased family of funds limit of $475.0 million across all of our SBIC subsidiaries and applicable SBA regulations and policies.
Distributions Declared
On July 16, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of July 2026, August 2026, and September 2026 as follows:
Record Payment Amount per
Declared Date Date Share
--------------- ------------------ ------------------ ------------
July 16, 2026 July 31, 2026 August 14, 2026 $ 0.0833
September 15,
July 16, 2026 August 31, 2026 2026 $ 0.0833
July 16, 2026 September 30, 2026 October 15, 2026 $ 0.0833
Share Repurchase Program
Since June 30, 2026, we repurchased 192,974 shares of our common stock under the Repurchase Program at a weighted-average purchase price of $7.95 per share.
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, August 11, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 218557. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, August 25, 2026 by dialing (877) 481-4010 and entering passcode 54324. The replay will also be available on the Company's website.
For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab. Stellus Capital Management, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the U.S. Securities and Exchange Commission for additional information.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(unaudited)
June 30, 2026 December 31, 2025
------------- -------------------
ASSETS
Controlled investments, at fair
value (amortized cost of
$34,691,986 and $33,603,521,
respectively) $ 11,573,435 $ 14,953,132
Non-controlled, affiliated
investments, at fair value
(amortized cost of $29,323,333
and $4,806,660, respectively) 32,257,658 3,750,674
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $913,612,730
and $987,729,505, respectively) 924,415,324 988,919,589
Cash and cash equivalents 5,138,950 25,050,156
Receivable for sales and
repayments of investments 2,166,620 581,509
Interest receivable 5,973,539 6,375,996
Income tax receivable -- 1,385,387
Other receivables 66,430 85,000
Related party receivable -- 20
Deferred offering costs 75,000 --
Prepaid expenses 457,821 150,843
------------ ---------------
Total Assets $ 982,124,777 $ 1,041,252,306
------------ ---------------
LIABILITIES
2030 Notes Payable $ 122,897,963 $ 122,671,409
Credit Facility payable 219,221,522 233,167,360
SBA-guaranteed debentures 257,304,593 295,984,063
Dividends payable 3,248,641 3,858,669
Management fees payable 4,393,771 4,442,705
Income incentive fees payable 889,986 2,317,429
Interest payable 5,569,922 6,138,076
Unearned revenue 496,577 582,007
Administrative services payable 517,253 539,338
Income tax payable 56,518 --
Other accrued expenses and
liabilities 570,085 372,294
------------ ---------------
Total Liabilities $ 615,166,831 $ 670,073,350
------------ ---------------
Commitments and contingencies
(Note 7)
------------ ---------------
Net Assets $ 366,957,946 $ 371,178,956
============ ===============
NET ASSETS
Common stock, par value $0.001
per share (100,000,000 shares
authorized; 28,672,911 and
28,947,254 shares issued and
outstanding, respectively) $ 28,673 $ 28,947
Paid-in capital 395,382,385 397,829,793
Total distributable loss (28,453,112) (26,679,784)
------------ ---------------
Net Assets $ 366,957,946 $ 371,178,956
------------ ---------------
Total Liabilities and Net Assets $ 982,124,777 $ 1,041,252,306
------------ ---------------
Net Asset Value Per Share $ 12.80 $ 12.82
============ ===============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the three months ended For the six months ended
-------------------------------- --------------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
--------------- --------------- --------------- ---------------
INVESTMENT INCOME
From non-controlled,
affiliated
investments
Interest income $ 1,016 $ -- $ 1,061 $ --
Payment-in-kind
interest income 559,310 -- 631,610 --
From non-controlled,
non-affiliated
investments
Interest income 19,864,060 23,134,800 39,811,025 46,285,437
Payment-in-kind
interest income 1,159,038 1,519,405 3,392,735 2,495,884
Other income 719,448 1,042,397 1,759,375 1,866,939
----------- ----------- ----------- -----------
Total Investment
Income $ 22,302,872 $ 25,696,602 $ 45,595,806 $ 50,648,260
----------- ----------- ----------- -----------
OPERATING EXPENSES
Management fees $ 4,393,770 $ 4,279,441 $ 8,786,127 $ 8,334,167
Valuation fees 44,995 38,507 211,114 196,396
Administrative
services expenses 550,235 474,284 1,199,355 923,582
Income incentive
fees 150,863 2,158,075 257,572 4,294,566
Professional fees 283,474 312,808 1,101,201 730,839
Directors' fees 84,250 93,250 213,500 204,500
Insurance expense 102,057 98,668 195,113 195,758
Interest expense and
other fees 8,585,467 8,680,015 17,437,008 16,943,034
Income tax expense 29,685 428,951 390,156 928,498
Other general and
administrative
expenses 585,510 500,302 825,127 718,653
----------- ----------- ----------- -----------
Total Operating
Expenses $ 14,810,306 $ 17,064,301 $ 30,616,273 $ 33,469,993
Income incentive fee
waiver (38,583) (928,926) (49,644) (2,171,769)
----------- ----------- ----------- -----------
Total Operating
Expenses, net of
fee waivers $ 14,771,723 $ 16,135,375 $ 30,566,629 $ 31,298,224
----------- ----------- ----------- -----------
Net Investment
Income $ 7,531,149 $ 9,561,227 $ 15,029,177 $ 19,350,036
----------- ----------- ----------- -----------
Net realized loss on
controlled
investments $ -- $ (1,132,576) $ -- $ (1,132,576)
Net realized (loss)
gain on
non-controlled,
non-affiliated
investments (7,243,523) 272,549 (6,493,113) (5,694,672)
Net realized (loss)
gain on foreign
currency
translations (1,811) (20,003) 1,853 (49,658)
Net change in
unrealized
(depreciation)
appreciation on
controlled
investments (922,785) 1,290,491 (4,468,162) 1,345,767
Net change in
unrealized
appreciation on
non-controlled,
affiliated
investments 3,913,525 -- 3,468,901 --
Net change in
unrealized
appreciation on
non-controlled,
non-affiliated
investments 12,908,698 143,176 10,350,353 1,281,193
Net change in
unrealized
appreciation
(depreciation) on
foreign currency
translations 21,045 30,546 (26,975) 38,865
----------- ----------- ----------- -----------
Net Increase in Net
Assets Resulting
from Operations $ 16,206,298 $ 10,145,410 $ 17,862,034 $ 15,138,955
=========== =========== =========== ===========
Net Investment
Income Per
Share--basic and
diluted $ 0.26 $ 0.34 $ 0.52 $ 0.69
=========== =========== =========== ===========
Net Increase in Net
Assets Resulting
from Operations Per
Share -- basic and
diluted $ 0.56 $ 0.36 $ 0.62 $ 0.54
=========== =========== =========== ===========
Weighted Average
Shares of Common
Stock
Outstanding--basic
and diluted 28,869,028 28,412,849 28,907,925 28,009,969
=========== =========== =========== ===========
Distributions Per
Share--basic and
diluted $ 0.34 $ 0.40 $ 0.68 $ 0.80
=========== =========== =========== ===========
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
Common Stock Total
-------------------
Number Par Paid-in distributable
of shares value capital (loss) Net Assets
---------- ------- ------------ ------------- -------------
Balances at
December 31, 2024 27,481,118 $27,481 $379,549,272 $ (9,654,813) $ 369,921,940
Net investment
income -- -- -- 9,788,809 9,788,809
Net realized loss
on investments -- -- -- (5,967,221) (5,967,221)
Net realized loss
on foreign
currency
translations -- -- -- (29,655) (29,655)
Net change in
unrealized
appreciation on
investments -- -- -- 1,193,293 1,193,293
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- 8,319 8,319
Distributions from
net investment
income -- -- -- (11,087,389) (11,087,389)
Issuance of common
stock, net of
offering costs(1) 656,085 656 8,937,430 -- 8,938,086
---------- ------ ----------- ------------ ------------
Balances at March
31, 2025 28,137,203 $28,137 $388,486,702 $(15,748,657) $ 372,766,182
========== ====== =========== ============ ============
Net investment
income -- -- -- 9,561,227 9,561,227
Net realized loss
on investments -- -- -- (860,027) (860,027)
Net realized loss
on foreign
currency
translations -- -- -- (20,003) (20,003)
Net change in
unrealized
appreciation on
investments -- -- -- 1,433,667 1,433,667
Net change in
unrealized
appreciation on
foreign currency
translations -- -- -- 30,546 30,546
Provision for
taxes on
unrealized
appreciation on
investments -- -- -- -- --
Distributions from
net investment
income -- -- -- (11,363,618) (11,363,618)
Issuance of common
stock, net of
offering costs(1) 278,945 279 3,822,637 -- 3,822,916
---------- ------ ----------- ------------ ------------
Balances at June
30, 2025 28,416,148 $28,416 $392,309,339 $(16,966,865) $ 375,370,890
========== ====== =========== ============ ============
Balances at
December 31, 2025 28,947,254 $28,947 $397,829,793 $(26,679,784) $ 371,178,956
========== ====== =========== ============ ============
Net investment
income -- -- -- 7,498,028 7,498,028
Net realized gain
on investments -- -- -- 750,410 750,410
Net realized gain
on foreign
currency
translation -- -- -- 3,664 3,664
Net change in
unrealized
depreciation on
investments -- -- -- (6,548,346) (6,548,346)
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (48,020) (48,020)
Distributions from
net investment
income -- -- -- (9,839,171) (9,839,171)
---------- ------ ----------- ------------ ------------
Balances at
March 31, 2026 28,947,254 $28,947 $397,829,793 $(34,863,219) $ 362,995,521
========== ====== =========== ============ ============
Net investment
income -- -- -- 7,531,149 7,531,149
Net realized loss
on investments -- -- -- (7,243,523) (7,243,523)
Net realized loss
on foreign
currency
translation -- -- -- (1,811) (1,811)
Net change in
unrealized
appreciation on
investments -- -- -- 15,899,438 15,899,438
Net change in
unrealized
appreciation on
foreign currency
translations -- -- -- 21,045 21,045
Distributions from
net investment
income -- -- -- (9,796,191) (9,796,191)
Repurchase of
common stock, net
of commissions(1) (274,343) (274) (2,447,408) -- (2,447,682)
---------- ------ ----------- ------------ ------------
Balances at
June 30, 2026 28,672,911 $28,673 $395,382,385 $(28,453,112) $ 366,957,946
========== ====== =========== ============ ============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the six months ended
------------------------------
June 30, 2026 June 30, 2025
-------------- --------------
Cash Flows from Operating Activities
Net increase in net assets resulting
from operations $ 17,862,034 $ 15,138,955
Adjustments to reconcile net
increase in net assets from
operations to net cash used in
operating activities:
Purchases of investments (45,678,450) (78,230,159)
Proceeds from sales and repayments of
investments 90,888,206 46,638,287
Net change in unrealized appreciation
on investments (9,351,092) (2,626,960)
Net change in unrealized depreciation
(appreciation) on foreign currency
translations 26,975 (38,865)
Increase in investments due to
payment-in-kind income (3,392,735) (2,492,551)
Amortization of premium and accretion
of discount, net (1,383,610) (1,437,223)
Amortization of loan structure fees 511,422 634,745
Amortization of deferred financing
costs 270,866 303,468
Amortization of discount on Notes
Payable 67,121 31,434
Amortization of premium on Notes
Payable (61,432) --
Amortization of loan fees on
SBA-guaranteed debentures 320,530 371,260
Net realized loss on investments 6,493,113 6,827,248
Changes in other assets and
liabilities
Decrease (increase) in interest
receivable 402,457 (921,344)
Decrease (increase) in income tax
receivable 1,385,387 (743,732)
Decrease in other receivables 18,570 70,495
Decrease in related party receivables 20 3,687
(Increase) decrease in prepaid
expenses (306,978) 218,975
(Decrease) increase in management
fees payable (48,934) 245,332
Decrease in income incentive fees
payable (1,427,443) (1,057,366)
(Decrease) increase in administrative
services payable (22,085) 22,297
(Decrease) increase in interest
payable (568,154) 1,248,079
Increase in related party payable -- 1,088,287
(Decrease) increase in unearned
revenue (85,430) 127,664
Increase in income tax payable 56,518 --
Increase in other accrued expenses
and liabilities 197,791 1,322,363
------------- -------------
Net Cash Provided by (Used in)
Operating Activities $ 56,174,667 $ (13,255,624)
------------- -------------
Cash Flows from Financing Activities
Proceeds from the issuance of common
stock $ -- $ 13,153,366
Sales load for common stock issued -- (197,464)
Offering costs paid for common stock
issued (75,000) (303,959)
Payment for repurchase of common
stock (2,436,708) --
Commission for repurchase of common
stock (10,975) --
Stockholder distributions paid (20,245,390) (22,326,367)
Financing costs paid on Notes Payable (50,000) (1,698,806)
Repayments of SBA-guaranteed
debentures (39,000,000) (16,250,000)
Borrowings under Credit Facility 92,200,000 104,400,000
Repayments of Credit Facility (106,467,800) (117,817,800)
------------- -------------
Net Cash (Used in) Provided by
Financing Activities $ (76,085,873) $ 33,188,720
------------- -------------
Net (Decrease) Increase in Cash and
Cash Equivalents $ (19,911,206) $ 19,933,096
------------- -------------
Cash and Cash Equivalents Balance at
Beginning of Period $ 25,050,156 $ 20,058,594
------------- -------------
Cash and Cash Equivalents Balance at
End of Period $ 5,138,950 $ 39,991,690
============= =============
Supplemental and Non-Cash Activities
Cash paid for interest expense $ 16,896,905 $ 14,354,048
Income and excise tax refund, net (1,051,749) 1,672,230
Exchange of investments 8,670,888 1,663,301
Reconciliation of Core Net Investment Income(1)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ----------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
------------- ------------- ------------- -------------
Net
investment
income $7,531,149 $9,561,227 $15,029,177 $19,350,036
Income tax
expense 29,685 428,951 390,156 928,498
------------- ------------- ------------- -------------
Core net
investment
income $7,560,834 $9,990,178 $15,419,333 $20,278,534
============= ============= ============= =============
Per share
amounts:
Net
investment
income per
share $0.26 $0.34 $0.52 $0.69
Core net
investment
income per
share $0.26 $0.35 $0.53 $0.72
Reconciliation of Realized Net Investment Income(2)
(Unaudited)
Three Months Ended Six Months Ended
---------------------------- ----------------------------
June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025
------------- ------------- ------------- -------------
Net
investment
income $7,531,149 $9,561,227 $15,029,177 $19,350,036
Net realized
loss on
investments (7,243,523) (860,027) (6,493,113) (6,827,248)
Net realized
(loss) gain
on foreign
currency
translation (1,811) (20,003) 1,853 (49,658)
------------- -------------
Total
realized net
investment
income $285,815 $8,681,197 $8,537,917 $12,473,130
============= ============= ============= =============
Per share
amounts:
Net
investment
income per
share $0.26 $0.34 $0.52 $0.69
Realized net
investment
income per
share $0.01 $0.31 $0.30 $0.45
View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-second-fiscal-quarter-ended-june-30-2026-302847513.html
SOURCE Stellus Capital Investment Corporation