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Stellus Capital Investment Corporation Q2 2025 Results

Stellus Capital Investment Corporation (NYSE: SCM) recently announced its financial performance for the second fiscal quarter that ended on June 30, 2025. Robert T. Ladd, the Chief Executive Officer, expressed satisfaction with the firm’s operating results, which demonstrated solid performance and growth.

Financial Overview

The company achieved a U.S. GAAP net investment income of $0.34 per share, with the core net investment income slightly higher at $0.35 per share. During this quarter, Stellus funded $23 million in new investments while receiving repayments totaling $32 million, resulting in a robust portfolio valued at $986 million at fair value. Additionally, the company raised $4 million through its at-the-market equity program, showing an active capital management strategy. Notably, since the company's inception, shareholders have received a total of $306 million in distributions, equating to $17.35 per share.

Financial Highlights for the Quarter

The financial highlights on a year-over-year basis are impressive:

• - Net investment income: $9.56 million ($0.34 per share)
• - Core net investment income: $9.99 million ($0.35 per share)
• - Total investment income: $25.7 million for the quarter, a slight decrease from $26.6 million in Q2 2024.
• - Operating expenses registered at $17.1 million, incrementally increasing from $16.5 million in the same quarter last year.
• - The company made substantial repayments totaling $31.6 million, compared with $40.7 million a year prior, indicating a strategic realignment of capital.

Portfolio Activity

In terms of investment activities, Stellus remains focused on enhancing its portfolio. The company has increased its total investments at fair value to $985.9 million from $953.5 million at the end of 2024. As of the latest quarter, the number of portfolio companies has risen to 112, reflecting the company’s ambition to expand its footprint across various sectors.

Investment Trends:

• - New investments included a $4 million commitment to Gourmet Specialty Foods and multiple supplemental investments in existing portfolio firms.
• - The weighted average yield of total investments stood at 9.6%, showcasing healthy performance.

Distributions and Future Outlook

In terms of shareholder returns, Stellus remains committed to its dividend strategy, declaring a consistent $0.40 per share for the most recent quarter. This dedication to returning value indicates a stable financial footing despite market fluctuations and operational challenges.

Management remains optimistic regarding the company’s long-term prospects, focusing on maximizing total return through ongoing strategic investments in lower-middle-market companies, which yield diverse opportunities.

Upcoming Events

The company has scheduled a conference call on August 7, 2025, at 10:00 AM CT, to discuss these results in greater detail with stakeholders. The call will provide an opportunity for Investors and analysts to engage with leadership regarding strategies and future directions.

Conclusion

Overall, Stellus Capital Investment Corporation's Q2 2025 financial results reflect growth through an improved income structure and strong capital management. Moving forward, the focus on strategic investments and distribution stability positions Stellus as a resilient player in the investment sector.