Oxford Square Capital reported a sharp decline in its Net Asset Value (NAV) for the fourth quarter on Tuesday, as significant unrealized depreciation in its investment portfolio overshadowed steady net investment income.
The Greenwich, Connecticut-based business development company saw its NAV per share fall to $1.69 as of December 31, 2025, down from $1.95 at the end of the previous quarter.
The decline was primarily fueled by approximately $16 million in net unrealized depreciation, resulting in a total net decrease in assets from operations of roughly $12.9 million for the three-month period.
Despite the hit to its book value, the firm’s core earnings remained stable.
Oxford Square generated net investment income (NII) of approximately $5.4 million, or $0.07 per share.
Total investment income for the quarter reached $10.4 million, supported by the company’s structural focus on corporate debt and collateralized loan obligation (CLO) equity.
To bolster its liquidity, the company was active in the capital markets during the quarter.
Oxford Square issued approximately 4.3 million shares of common stock through its "at-the-market" (ATM) offering program, raising net proceeds of about $7.9 million.
Consistent with its long-standing policy of providing regular income to shareholders, the company’s Board of Directors declared three consecutive monthly distributions of $0.035 per share for April, May, and June 2026.
At the current $0.07 quarterly NII, the distribution remains covered by earnings, though the narrowing NAV provides a smaller cushion for future volatility.