OFS Capital Q2 net investment income per share falls sequentially on lower interest income

OFS Capital

30/07/2026 21:42

Overview
US business development company's fiscal Q2 net investment income per share declined from prior qtr
Net asset value per share rose sequentially, helped by net gain on investments
Company kept quarterly distribution at $0.17 per share, above net investment income

Outlook
OFS Capital declares Q3 distribution of $0.17 per share, payable October 5, 2026

Result Drivers
LOWER INVESTMENT INCOME - Net investment income fell due to a $2.1 mln decrease in total investment income, mainly from lower interest and non-recurring dividend income
YIELD COMPRESSION - Portfolio's weighted-average performing income yield declined to 12.1% from 12.5%, mainly due to lower yields on debt investments and structured finance securities
NON-ACCRUAL LOANS - Loans to one portfolio company were placed on non-accrual status, increasing total non-accrual loans to 7.2% of investments at fair value

Company press release: ID:nBw2cgbf3a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Investments
 
$297.80 mln
 

Analyst Coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the closed end funds peer group is "buy."
Wall Street's median 12-month price target for OFS Capital Corp is $5.00, about 44.9% above its July 29 closing price of $3.45

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)