OFS Capital Corporation Q1 2026 Financial Results

OFS Capital Corporation announced its financial results for the first quarter ended March 31, 2026. Key highlights include a decrease in net investment income to $0.18 per common share from $0.20 in the previous quarter, and a net loss on investments of $1.03 per common share. The net asset value per common share also decreased from $9.19 to $8.16. The company's loan portfolio primarily consists of floating rate and first/second lien loans. The weighted-average performing income yield decreased to 12.5%. A loan was placed on non-accrual status, while another was exited. The Board of Directors declared a second quarter distribution of $0.17 per common share. Total investments were valued at $308.1 million, with total outstanding debt at $202.5 million. The company reported total expenses of $6.4 million and total investment income of $8.9 million for the quarter. A net loss on investments of $13.9 million was recognized, primarily due to unrealized depreciation on structured finance securities and realized losses from debt investments. The company also amended its credit facility with Banc of California, adjusting covenants and reducing the maximum commitment amount. Borrowings under the Natixis facility bear interest at a rate based on SOFR plus a margin.