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Stellus Capital Investment Corporation Reports Q3 2026 Financial Results

HOUSTON, Nov. 9, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) has shared its financial results for the fiscal quarter ending September 30, 2026. The company reported a solid performance during this period, affirming its ongoing commitment to delivering value to shareholders.

Key Highlights of Q3 2026

Robert T. Ladd, the Chief Executive Officer, expressed satisfaction with the company's operational results. Notably, Stellus achieved a GAAP net investment income of $0.25 per share, alongside a core net investment income of $0.26 per share. The net realized income was reported to be $0.25 per share.

During this quarter, the company allocated approximately $38 million toward new investments while also receiving repayments amounting to $30 million. Consequently, Stellus' total portfolio reached a fair value of $966 million. This indicates a healthy investment atmosphere as the company actively pursued growth opportunities.

Beyond the income figures, the management pointed out their active participation in the Share Repurchase Program, where Stellus repurchased 493,537 shares at an average cost of $8.36 per share, which added about $0.08 per share to its net asset value (NAV).

Financial Performance: A Detailed Breakdown

Investment Income

For the three months ending September 30, 2026, Stellus reported total investment income of approximately $22.4 million, contrasted with $26.3 million from the same period in the previous year. A significant portion of this revenue stemmed from interest income generated by portfolio investments.

Operating Expenses

The firm's gross operating expenses were around $15.2 million, notably lower than the $17.6 million reported in the prior year, showcasing effective cost management strategies.

Net Investment Income

The net investment income tally stood at $7.16 million (about $0.25 per share), with a detailed comparison against the previous year showing a decline from $9.14 million ($0.32 per share). For the core net investment income, the figures were also lower with $7.47 million this year compared to $9.65 million previously.

Portfolio Management and Investments

Stellus reported a net change in unrealized depreciation on investments, which amounted to ($13.5 million) for Q3 2026, contrasted against ($5.14 million) in Q3 2025. Additionally, the net increase (decrease) in net assets resulting from operations showed a decrease of ($6.37 million),

As of September 30, 2026, the investment portfolio included 119 company investments across different sectors, with a weighted average yield of 8.5% on total investments, illustrating a robust income-producing capacity.

Future Outlook

Going forward, Stellus Capital looks to maintain its aggressive investment strategy while effectively managing its capital structure, particularly considering the recovery of market conditions. The company’s credit facility sits at about $230.6 million, supporting its liquidity and funding strategies for future growth.

The firm has also declared a regular monthly dividend of $0.25 per share across the coming months, reaffirming its commitment to returning capital to its shareholders.

Conclusion

In conclusion, Stellus Capital Investment Corporation's Q3 2026 financial report demonstrates resilience and strategic growth in investments. By efficiently managing operational costs and actively engaging in the market, Stellus continues to position itself favorably for the future.

Investors are encouraged to tune in to the upcoming conference call scheduled for November 10, 2026, where management will provide further insights into the performance and future direction of Stellus Capital.