Oxford Square Capital Corp. reported its financial results for the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

Total assets as of September 30, 2024, stood at $312.9 million, with total liabilities of $153.5 million, resulting in net assets of $159.5 million. The net asset value per common share decreased to $2.35 from $2.55 at the end of 2023. Cash and cash equivalents increased to $43.2 million, up from $5.7 million at the end of the previous fiscal year.

Total investment income for the nine months was approximately $32.5 million, a decline from $39.5 million in the same period last year. This decrease was primarily attributed to lower interest income and income from securitization vehicles. The company reported net investment income of $20.4 million, slightly up from $19.6 million year-over-year. However, net realized losses on investments were significant, totaling approximately $51.4 million, largely due to the extinguishment of two senior secured loans during a recapitalization.

In terms of revenue by segment, Business Services revenue increased to $69.4 million from $67.3 million, while Healthcare revenue decreased to $32.9 million from $44.7 million. Software revenue also saw a decline, dropping to $88.6 million from $108.9 million. The company’s total operating expenses for the nine months decreased to approximately $12.0 million from $19.9 million, reflecting lower management fees and interest expenses.

Strategically, Oxford Square Capital engaged in several recapitalizations, including those involving Alvaria, Inc. and McAfee Enterprise, LLC, which involved the exchange of senior secured notes. The company also amended its equity distribution agreement to facilitate the sale of up to $150 million in common stock through an At-the-Market (ATM) offering, raising approximately $24.3 million net of fees during the nine months.

As of September 30, 2024, the company maintained an asset coverage ratio for borrowed amounts of 226%, an increase from 219% at the end of 2023. The weighted average stated interest rate on borrowings remained stable at 5.77%, with a weighted average maturity of 3.0 years. The company continues to focus on maintaining its status as a registered investment company (RIC) under Subchapter M of the Code, which requires it to distribute at least 90% of its investment company taxable income annually.