Oxford Square Capital Corp. (NASDAQ:OXSQ) is a business development company that focuses on corporate debt and collateralized loan obligations (CLOs). On August 7, 2025, OXSQ reported its earnings, revealing an earnings per share (EPS) of $0.08, which matched the estimated EPS. However, the company's revenue of $9.52 million fell short of the expected $10 million.
The company's net investment income per share also met analyst expectations at $0.08. Despite this, OXSQ experienced a 17% decline in income for the second quarter of 2025. The total investment income, reported under GAAP, was $9.52 million, which was below the anticipated $10 million. This shortfall indicates ongoing pressure on Oxford Square's portfolio.
OXSQ's net asset value (NAV) per share decreased to $2.06 as of June 30, 2025, from $2.43 a year earlier. This decline reflects the challenges the company faces, including weaker income and reduced investment activity. The net investment income for the quarter was approximately $5.5 million, down from $6.1 million in the previous quarter.
Despite these challenges, OXSQ's distributions remained stable. The Board of Directors declared distributions for the months ending October 31, November 30, and December 31, 2025. OXSQ's debt-to-equity ratio of 0.83 indicates a moderate level of debt compared to its equity. The current ratio of 3.85 suggests a strong ability to cover short-term liabilities with short-term assets. However, the enterprise value to sales ratio of 10.95 and the enterprise value to operating cash flow ratio of 23.15 reflect the company's valuation challenges.
