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Stellus Private Credit BDC Reports First Quarter Results

On May 12, 2026, Stellus Private Credit BDC (referred to as "Stellus PBDC" or "the Company") shared its financial results for the first fiscal quarter that concluded on March 31, 2026. This update highlights the Company’s operational efficiency and investment strategies that have contributed to its financial standing during this period.

Financial Performance Overview

Stellus PBDC reported a net investment income of $3.97 million, translating to $0.30 per share. This is a slight decline from the previous year's figure of $3.31 million or $0.31 per share for the same period. Despite this decrease, the Company managed to maintain a stable net asset value (NAV), showcasing resilience in its financial operations.

A significant aspect of Stellus PBDC's financial results is the funding of new investments totaling $27 million, accompanied by repayments amounting to $22 million, which brought the total portfolio to $405 million at fair value. Robert T. Ladd, the CEO of Stellus PBDC, expressed satisfaction with the quarterly results, emphasizing the Company's ability to generate sustainable income while expanding its investment portfolio.

Investment Portfolio Activity

During the quarter, Stellus engaged in a variety of investments across multiple sectors. Notable transactions included:

• - Add-On Investment in Bart Associates, LLC, providing services to the U.S. equine industry.
• - New Investment in Silver Corporate Holdings LLC, a platform focused on senior-care placement.
• - Multiple add-on and new investments in health and technology sectors, reflecting a strategic focus on promising markets.

This portfolio diversification aims to mitigate risks and enhance yield contributions from different sectors. As of the latest reporting date, Stellus PBDC held 76 investments in portfolio companies, with a weighted average yield of 9% from its debt and income-producing investments.

Operational Highlights

On the operational side, Stellus PBDC’s gross operating expenses for Q1 2026 totaled $6.3 million, up from $5.3 million in Q1 2025. Notably, management fees increased in line with the growth in asset base. The Company’s advisor, Stellus Private BDC Advisor, LLC, waived some management fees, supporting overall profitability for shareholders.

Despite the increased expenses, the Company successfully declared a second quarter monthly dividend of $0.34 per share on April 14, 2026. This reflects a strong commitment to returning value to its investors, demonstrating a proactive approach to maintaining investor confidence.

Conclusions and Future Outlook

Overall, Stellus Private Credit BDC's Q1 2026 results indicate a robust operational framework, with solid investment income generation and effective cost management strategies. The ongoing growth of their investment portfolio and consistent dividend payouts could position the Company for future financial successes. As the Company navigates market challenges, its diversified investments and clear management strategy suggest it is well-equipped to weather financial fluctuations and continue delivering value to shareholders in the upcoming quarters.

Investors and analysts alike are encouraged to follow Stellus PBDC's upcoming quarterly reviews to monitor its performance trajectory and strategic initiatives. With strong leadership and a solid investment framework, the Company appears poised for continued growth and success in the competitive investment market.