HOUSTON, Nov. 9, 2026 /PRNewswire/ -- (PR Newswire) - Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended September 30, 2026.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended September 30, 2026, in which we earned U.S. GAAP net investment income of $0.25 per share, core net investment income of $0.26 per share and net realized income of $0.25 per share. During the quarter, we funded $38 million of investments and received $30 million of repayments, resulting in a total portfolio of $966 million at fair value. I'm also pleased to report that we have remained active under our Share Repurchase Program, repurchasing 493,537 shares at an average price of $8.36 per share. These repurchases were accretive to NAV by approximately $0.08 per share during the third quarter."
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended
Nine Months Ended
September 30, 2026 September 30, 2025 September 30, 2026 September 30, 2025
Amount Per Share Amount Per Share Amount Per Share Amount Per Share
Net investment income $7.16 $0.25 $9.14 $0.32 $22.19 $0.77 $28.48 $1.01
Core net investment income(1) 7.47 0.26 9.65 0.34 22.89 0.80 29.93 1.06
Net realized gain (loss) on investments 2.86 0.10 (6.49) (0.23) (3.96) (0.14)
Net realized loss on foreign currency translation (0.03) (0.01) (0.03) (0.06)
Loss on debt extinguishment (0.16) (0.01) (0.16) (0.01)
Benefit for taxes on realized loss on investments in
taxable subsidiaries
Total realized income(2) $7.13 $0.25 $11.83 $0.41 $15.67 $0.54 $24.30 $0.86
Distributions (7.11) (0.25) (11.43) (0.40) (26.74) (0.93) (33.89) (1.20)
Net unrealized change in depreciation on investments (13.50) (0.47) (5.14) (0.18) (4.15) (0.14) (2.51) (0.08)
Net unrealized change in (depreciation) appreciation (0.03) 0.04
on foreign currency translation
Net increase in net assets resulting from operations ($6.37) ($0.22) $6.69 $0.23 $11.49 $0.40 $21.83 $0.78
Weighted average shares outstanding 28,465,675 28,480,472 28,758,889 28,168,527
(1) Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income
taxes, the majority of which are
excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful
supplemental disclosure for
analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be
considered as a replacement
for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net
investment income in
accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.
(2) Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized
gains (losses) on foreign currency,
and losses on debt extinguishment, all U.S. GAAP measures.
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of As of
September 30, 2026 December 31, 2025
Investments at fair value $966.1 $1,007.6
Total assets $973.9 $1,041.3
Net assets $349.3 $371.2
Shares outstanding 28,179,374 28,947,254
Net asset value per share $12.40 $12.82
Three Months Ended Nine Months Ended
September 30, 2026 September 30, September 30, September 30,
2025 2026 2025
New investments $37.8 $63.8 $83.5 $142.0
Repayments of investments (30.3) (39.0) (121.2) (85.6)
Net activity $7.5 $24.8 ($37.7) $56.4
As of As of
September 30, 2026 December 31, 2025
Number of portfolio company investments 119 115
Number of debt investments 99 100
Weighted average yield of debt and other
income producing investments (3)
Cash 8.3 % 8.5 %
Payment-in-kind ("PIK") 0.5 % 0.5 %
Fee amortization 0.3 % 0.3 %
Total 9.1 % 9.3 %
Weighted average yield of total investments(4)
Cash 7.8 % 7.9 %
PIK 0.4 % 0.5 %
Fee amortization 0.3 % 0.3 %
Total 8.5 % 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 September 30, 2026 and 2025 totaled $22.4 million and $26.3 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended September 30, 2026 and 2025 totaled $15.2 million and $17.6 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $4.4 million, income incentive fees totaled $0.5 million and $2.2 million, fees and expenses related to our borrowings totaled $8.3 million and $8.9 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.7 million and $0.6 million, income tax totaled $0.3 million and $0.5 million and other expenses totaled $1.1 million and $1.0 million. The Company waived $0.0 million and $0.5 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 September 30, 2026 and 2025, respectively, for net operating expenses of $15.2 million and $17.1 million, respectively.
Net investment income was $7.2 million and $9.1 million, or $0.25 and $0.32 per common share based on 28,465,675 and 28,480,472 weighted average common shares outstanding for the three months ended September 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 September 30, 2026 and 2025 was $7.5 million and $9.7 million, or $0.26 and $0.34 per share, respectively.
For the three months ended September 30, 2026 and 2025, the Company's investment portfolio had a net change in unrealized depreciation of ($13.5) million and ($5.1) million, respectively, and the Company had net realized gains of $0.0 million and $2.9 million, respectively.
Net (decrease) increase in net assets resulting from operations totaled ($6.4) million and $6.7 million, or ($0.22) and $0.23 per common share, based on 28,465,675 and 28,480,472 weighted average common shares outstanding for the three months ended September 30, 2026 and 2025, respectively.
Liquidity and Capital Resources
As of September 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 September 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 September 30, 2026 and December 31, 2025, the Company had $230.6 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.
Distributions
For the three months ended September 30, 2026 and 2025, the Company declared aggregate distributions of $0.25 per share and $0.40 per share, respectively ($7.1 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 September 30, 2026:
Activity Type Date Company Name Company Description Investment Amount Instrument Type
Add-On Investment July 2, 2026 Blade Landscape Investments, Regional provider of
LLC* commercial $
5,250
Equity
landscaping services
New Investment July 16, 2026
Emergent Software Microsoft-centric data, AI, $
3,197,377 Senior Secured - First
and Lien
cloud IT services partner
$
2,664,481 Delayed Draw Term Loan
Commitment
$
500,000 Revolver Commitment
$
306,732
Equity
New Investment August 5, 2026 LJ Welding Automation Ltd. Manufacturer of material $
7,693,688 Senior Secured - First
handling Lien
and welding automation
systems
$
500,000 Revolver Commitment
$
303,470
Equity
Add-On Investment August 6, 2026 Carolina Topco Holdings, LP* Commercial flooring
maintenance $
46,082
Equity
and restoration services
Add-On Investment August 13, 2026
Cathay Hypnos LLC* Reseller of CPAP machines and $
62,566
Equity
accessories
Add-On Investment August 17, 2026
Venbrook Buyer, LLC* An independent insurance $
644,133 Senior Secured - First
services Lien
broker
New Investment August 26, 2026 Revenew International LLC Provider of contract $
7,500,000 Senior Secured - First
compliance and Lien
cost recovery solutions
$
100,000 Delayed Draw Term Loan
Commitment
$
100,000 Revolver Commitment
$
446,377
Equity
Add-On Investment September 1, 2026 B&A Partners Holding, LLC* Government IT services $
156,372
Equity
Add-On Investment September 11, Naumann Hobbs Holdings, L.P.* Material handling equipment
2026 dealer $
138,280
Equity
and aftermarket parts and
services
provider
New Investment September 14, Strategic Maintenance A provider of enterprise $
10,000,000 Senior Secured - First
2026 Solutions, LLC asset Lien
management and industrial
Internet
of Things solutions.
$
100,000 Delayed Draw Term Loan
Commitment
$
100,000 Revolver Commitment
$
231,818
Equity
Add-On Investment September 18,
Venbrook Buyer, LLC* An independent insurance $
276,057 Senior Secured - First
2026 services Lien
broker
Add-On Investment September 18, Centeotl Co-Invest B, LP* Manufacturer of frozen
2026 burritos and $
15,058
Equity
breakfast snacks
Add-On Investment September 28, Monarch Behavioral Therapy, Provider of center-based
2026 LLC* applied $
8,029
Unsecured
behavioral analysis therapy
services
___________________________________________
*Existing portfolio company
The Company realized investments in the following portfolio companies during the three months ended September 30, 2026:
Activity Type Date Company Name Company Description Proceeds Received Instrument Type
Full Repayment July 1, General LED OPCO, LLC Provider of LED lighting $
4,500,000 Senior Secured - Second
2026 systems and Lien
modules
Full Repayment July 27, MacKenzie-Childs Lifestyle home décor brand $
86,331 Senior Secured - First
2026 Acquisition, Inc. Lien
Full Repayment July 30, U.S. Expediters, LLC Reseller of CPAP machines and $
14,236,513 Senior Secured - First
2026 Lien
accessories
Events Subsequent to September 30, 2026
The Company's management has evaluated subsequent events through November 9, 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 September 30, 2026:
Activity Type Date Company Name Company Description Investment Amount Instrument Type
Add-on Investment October 2, 2026
Eskola LLC*
Provider of commercial $
167,505 Senior Secured - First
Lien
re-roofing services
$
79,263 Delayed Draw Term Loan
Commitment
Add-On Investment October 7, 2026 GS HVAM Intermediate, LLC* Specialized food distributor $
1,442,585 Revolver Commitment
New Investment October 16, 2026 MSCP Fulfillment Holdings, Third-party logistics and $
6,000,000 Senior Secured - First
Inc. Lien
e-commerce fulfillment provider
$
100,000 Delayed Draw Term Loan
Commitment
$
100,000 Revolver Commitment
$
125,253
Equity
Add-On Investment October 19, 2026
Venbrook Group* An independent insurance services $
233,728 Senior Secured - First
Lien
broker
Add-on Investment November 5, 2026 Fidus Investments Holdings, Provider of outsourced electronic
L.P.* product $
267,820
Equity
development and engineering
services
*Existing portfolio company
The Company realized investments in the following portfolio companies subsequent to September 30, 2026:
Activity Type Date Company Name Company Description Proceeds Received Realized Loss Instrument Type
Full Realization October 1, Exigo, LLC Software platform for $
2,979,866 $
(5,606,201) Senior Secured - First
2026 direct Lien
selling organizations
$ $
(377,535)
Equity
Credit Facility
The outstanding balance under the Credit Facility as of November 9, 2026 was $212.0 million.
SBA-guaranteed Debentures
The outstanding balance under the SBA-guaranteed debentures as of November 9, 2026 was $276.5 million.
Distributions Declared
On October 9, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of October 2026, November 2026, and December 2026 as follows:
Record Payment Amount per
Declared Date Date Share
October 9, 2026 October 30, 2026 November 13,
2026 $
0.0833
October 9, 2026 November 30, December 15,
2026 2026 $
0.0833
October 9, 2026 December 31,
2026 January 15, 2027 $
0.0833
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, November 10, 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 157435. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, November 18, 2026 by dialing (877) 481-4010 and entering passcode 54725. 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 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)
September 30,
2026 December 31, 2025
ASSETS
Controlled investments, at fair value (amortized cost of $34,691,986 and $33,603,521, $
8,765,829 $
14,953,132
respectively)
Non-controlled, affiliated investments, at fair value (amortized cost of $30,106,186 and 29,587,186 3,750,674
$4,806,660, respectively)
Non-controlled, non-affiliated investments, at fair value (amortized cost of $924,192,888 927,792,799 988,919,589
and $987,729,505, respectively)
Cash and cash equivalents 2,324,400 25,050,156
Receivable for sales and repayments of investments 510,690 581,509
Interest receivable 4,397,392 6,375,996
Income tax receivable 1,385,387
Other receivables 135,180 85,000
Related party receivable 20
Deferred offering costs 75,000
Prepaid expenses 294,749 150,843
Total Assets $
973,883,225 $
1,041,252,306
LIABILITIES
2030 Notes Payable $
123,038,555 $
122,671,409
Credit Facility payable 227,901,577 233,167,360
SBA-guaranteed debentures 257,459,825 295,984,063
Dividends payable 2,347,342 3,858,669
Management fees payable 4,355,563 4,442,705
Income incentive fees payable 1,335,939 2,317,429
Interest payable 5,708,964 6,138,076
Related party payable 685,547
Unearned revenue 411,244 582,007
Administrative services payable 556,639 539,338
Income tax payable 363,615
Other accrued expenses and liabilities 385,804 372,294
Total Liabilities $
624,550,614 $
670,073,350
Commitments and contingencies (Note 7)
Net Assets $
349,332,611 $
371,178,956
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,179,374 $
28,179 $
28,947
and 28,947,254 shares issued and outstanding, respectively)
Paid-in capital 391,236,554 397,829,793
Total distributable loss (41,932,122) (26,679,784)
Net Assets $
349,332,611 $
371,178,956
Total Liabilities and Net Assets $
973,883,225 $
1,041,252,306
Net Asset Value Per Share $
12.40 $
12.82
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the three months ended For the nine months ended
September 30, September 30, September 30, September 30,
2026 2025 2026 2025
INVESTMENT INCOME
From non-controlled, affiliated investments
Interest income $
5,333
$ $
6,394
$
Payment-in-kind interest income 334,060 965,670
From non-controlled, non-affiliated investments
Interest income 19,552,119 23,634,587 59,029,084 69,923,357
Payment-in-kind interest income 1,306,887 1,378,166 5,033,682 3,870,717
Other income 1,198,050 1,262,956 2,957,425 3,129,895
Total Investment Income $
22,396,449 $
26,275,709 $
67,992,255 $
76,923,969
OPERATING EXPENSES
Management fees $
4,355,563 $
4,401,305 $
13,141,690 $
12,735,472
Valuation fees 160,576 172,364 371,690 368,760
Administrative services expenses 658,084 592,409 1,857,439 1,515,991
Income incentive fees 581,482 2,166,047 839,054 6,460,613
Professional fees 399,798 395,098 1,500,999 1,125,937
Directors' fees 96,250 93,250 309,750 297,750
Insurance expense 103,679 99,248 298,792 295,006
Interest expense and other fees 8,342,992 8,949,075 25,780,000 25,892,109
Income tax expense 307,096 515,686 697,252 1,444,184
Other general and administrative expenses 231,516 227,037 1,056,643 945,690
Total Operating Expenses $
15,237,036 $
17,611,519 $
45,853,309 $
51,081,512
Income incentive fee waiver (471,251) (49,644) (2,643,020)
Total Operating Expenses, net of fee waivers $
15,237,036 $
17,140,268 $
45,803,665 $
48,438,492
Net Investment Income $
7,159,413 $
9,135,441 $
22,188,590 $
28,485,477
Net realized loss on controlled investments
$
$
$ $
(1,132,576)
Net realized gain (loss) on non-controlled, non-affiliated 3,126 2,867,155 (6,489,987) (2,827,517)
investments
Net realized loss on foreign currency translations (31,026) (9,422) (29,173) (59,080)
Loss on debt extinguishment (164,762) (164,762)
Net change in unrealized (depreciation) appreciation on controlled (2,807,606) 51,367 (7,275,768) 1,397,134
investments
Net change in unrealized (depreciation) appreciation on non- (3,453,325) 15,576
controlled, affiliated investments
Net change in unrealized (depreciation) appreciation on non- (7,243,749) (5,187,426) 3,106,604 (3,906,233)
controlled, non-affiliated investments
Net change in unrealized (depreciation) appreciation on foreign (712) (325) (27,687) 38,540
currency translations
Net (Decrease) Increase in Net Assets Resulting from $
(6,373,879) $
6,692,028 $
11,488,155 $
21,830,983
Operations
Net Investment Income Per Share-basic and diluted $
0.25 $
0.32 $
0.77 $
1.01
Net (Decrease) Increase in Net Assets Resulting from Operations $
(0.22) $
0.23 $
0.40 $
0.78
Per Share - basic and diluted
Weighted Average Shares of Common Stock Outstanding- 28,465,675 28,480,472 28,758,889 28,168,527
basic and diluted
Distributions Per Share-basic and diluted $
0.25 $
0.40 $
0.93 $
1.20
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
Net investment income 9,135,441 9,135,441
Net realized gain on investments 2,867,155 2,867,155
Net realized loss on foreign currency translations (9,422) (9,422)
Loss on debt extinguishment (164,762) (164,762)
Net change in unrealized depreciation on investments (5,136,059) (5,136,059)
Net change in unrealized depreciation on foreign currency translations (325) (325)
Provision for taxes on unrealized appreciation on investments
Distributions from net investment income (11,434,413) (11,434,413)
Issuance of common stock, net of offering costs(1) 531,106 531 7,101,291 7,101,822
Balances at September 30, 2025 28,947,254 $
28,947 $
399,410,630 $
(21,709,250) $
377,730,327
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
Net investment income 7,159,413 7,159,413
Net realized gain on investments 3,126 3,126
Net realized loss on foreign currency translation (31,026) (31,026)
Net change in unrealized depreciation on investments (13,504,680) (13,504,680)
Net change in unrealized depreciation on foreign currency translations (712) (712)
Distributions from net investment income (7,105,131) (7,105,131)
Repurchase of common stock, net of commissions(1) (493,537) (494) (4,145,831) (4,146,325)
Balances at September 30, 2026 28,179,374 $
28,179 $
391,236,554 $
(41,932,122) $
349,332,611
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the nine months ended
September 30, September 30,
2026 2025
Cash Flows from Operating Activities
Net increase in net assets resulting from operations $
11,488,155 $
21,830,983
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments (83,478,197) (141,983,167)
Proceeds from sales and repayments of investments 121,218,577 85,635,632
Net change in unrealized depreciation on investments 4,153,588 2,509,099
Net change in unrealized depreciation (appreciation) on foreign currency translations 27,687 (37,811)
Increase in investments due to payment-in-kind income (5,033,682) (3,870,717)
Amortization of premium and accretion of discount, net (1,977,242) (2,172,972)
Amortization of loan structure fees 768,598 954,033
Amortization of deferred financing costs 408,543 447,751
Amortization of discount on Notes Payable 101,633 63,395
Amortization of premium on Notes Payable (93,029)
Amortization of loan fees on SBA-guaranteed debentures 475,762 553,695
Net realized loss on investments 6,489,987 3,960,093
Loss on debt extinguishment 164,762
Changes in other assets and liabilities
Decrease (increase) in interest receivable 1,978,604 (2,099,921)
Decrease (increase) in income tax receivable 1,385,387 (220,233)
Increase in other receivables (50,180) (11,116)
Decrease (increase) in related party receivables 20 (18,813)
(Increase) decrease in prepaid expenses (143,906) 385,232
(Decrease) increase in management fees payable (87,142) 367,196
Decrease in income incentive fees payable (981,490) (467,527)
Increase in administrative services payable 17,301 113,626
(Decrease) increase in interest payable (429,112) 631,032
Increase in related party payable 685,547 136,535
(Decrease) increase in unearned revenue (170,763) 92,011
Increase in income tax payable 363,615
Increase (decrease) in other accrued expenses and liabilities 13,510 (445,942)
Net Cash Provided by (Used in) Operating Activities $
57,131,771 $
(33,483,144)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock
$ $
20,588,960
Sales load for common stock issued (308,998)
Offering costs paid for common stock issued (75,000) (417,138)
Payment for repurchase of common stock (6,563,291)
Commission for repurchase of common stock (30,716)
Stockholder distributions paid (28,251,820) (33,689,984)
Proceeds from issuance of Notes Payable 125,000,000
Repayment of Notes Payable (50,000,000)
Premium from issuance of Notes Payable 648,000
Discount from issuance of Notes Payable (770,250)
Financing costs paid on Notes Payable (50,000) (2,475,306)
Repayments of SBA-guaranteed debentures (39,000,000) (26,000,000)
Financing costs paid on Credit Facility (35,000) (1,525,014)
Borrowings under Credit Facility 150,100,000 198,900,000
Repayments of Credit Facility (155,951,700) (207,501,700)
Net Cash (Used in) Provided by Financing Activities $
(79,857,527) $
22,448,570
Net Decrease in Cash and Cash Equivalents $
(22,725,756) $
(11,034,574)
Cash and Cash Equivalents Balance at Beginning of Period $
25,050,156 $
20,058,594
Cash and Cash Equivalents Balance at End of Period $
2,324,400 $
9,024,020
Supplemental and Non-Cash Activities
Cash paid for interest expense $
24,547,855 $
24,940,287
Income and excise tax refund, net (1,051,750) 1,664,417
Exchange of investments 8,759,438 1,663,301
Reconciliation of Core Net Investment Income
(1)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
2026 2025 2026 2025
Net investment income $7,159,413 $9,135,441 $22,188,590 $28,485,477
Income tax expense 307,096 515,686 697,252 1,444,184
Core net investment income $7,466,509 $9,651,127 $22,885,842 $29,929,661
Per share amounts:
Net investment income per share $0.25 $0.32 $0.77 $1.01
Core net investment income per share $0.26 $0.34 $0.80 $1.06
Reconciliation of Realized Net Investment Income
(2)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
2026 2025 2026 2025
Net investment income $7,159,413 $9,135,441 $22,188,590 $28,485,477
Net realized gain (loss) on investments 3,126 2,867,155 (6,489,987) (3,960,093)
Net realized loss on foreign currency translation (31,026) (9,422) (29,173) (59,080)
Total realized net investment income $7,131,513 $11,828,412 $15,669,430 $24,301,542
Per share amounts:
Net investment income per share $0.25 $0.32 $0.77 $1.01
Realized net investment income per share $0.25 $0.42 $0.54 $0.86
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SOURCE Stellus Capital Investment Corporation
