Oxford Lane Capital Corp. Announces Net Asset Value and Selected Financial Results for the Second Fiscal Quarter, and Declaration of Common Stock Distributions for the Months Ending January, February, and March 2027

CLO equity effective and cash distribution yields both declined from June 30 to September 30, 2026.

Rhea-AI Summary

Oxford Lane Capital (NasdaqGS: OXLC) reported second-fiscal-quarter net asset value per share of $9.95, down from the prior quarter. NAV declined from $10.74 at June 30, 2026. For the quarter ended September 30, 2026, GAAP net investment income was approximately $47.8 million, or $0.49 per share; non-GAAP core net investment income was approximately $66.4 million, or $0.68 per share.

Investment income fell approximately $4.8 million sequentially to $82.2 million, while expenses decreased to approximately $34.4 million from $36.8 million. Net assets decreased approximately $18.5 million from operations, including approximately $22.6 million of realized losses and $43.8 million of unrealized depreciation. The board declared $0.10 monthly common distributions for January–March 2027. During the quarter, Oxford Lane invested approximately $18.7 million and received approximately $31.2 million from sales and repayments of collateralized loan obligation (CLO) investments.

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Positive

• Moderate pointGAAP net investment income totaled approximately $47.8 million, or $0.49 per share, for the September quarter.
• Moderate pointNon-GAAP core net investment income totaled approximately $66.4 million, or $0.68 per share, for the September quarter.
• Moderate pointTotal expenses fell to approximately $34.4 million for the September quarter from approximately $36.8 million for the June quarter.

Negative

• Moderate pointNAV per share declined to $9.95 at September 30, 2026, from $10.74 at June 30, 2026.
• Moderate pointTotal investment income decreased approximately $4.8 million sequentially to approximately $82.2 million for the September quarter.
• Moderate pointNet unrealized depreciation totaled approximately $43.8 million for the quarter ended September 30, 2026. 6.9% of market cap
• Moderate pointNet realized losses totaled approximately $22.6 million for the quarter ended September 30, 2026. 3.5% of market cap
• Moderate pointCLO equity effective yield at current cost fell to 10.5% at September 30 from 11.1% at June 30, 2026.
• Moderate pointCLO equity cash distribution yield at current cost fell to 12.4% at September 30 from 16.3% at June 30, 2026.

News Explained

Core NII includes qualifying CLO-equity cash distributions, but the company says taxable income may differ materially from both Core NII and GAAP NII.

On October 22, 2026, the board of Oxford Lane declared monthly dividends on its 6.00% Series 2029, 7.125% Series 2029 and 8.25% Series 2031 term preferred shares, setting per-share payments of $0.125, $0.1484375 and $0.171875, respectively, on December 31, 2026, January 29, 2027 and February 26, 2027.

The company defines Core NII as GAAP NII adjusted for cash distributions received or entitled to be received on CLO equity investments; it is supplemental to GAAP NII, and the company cautions that taxable income may differ materially from either measure.

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GREENWICH, Conn., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCL) (NasdaqGS: OXLCO) (NasdaqGS: OXLCZ) (NasdaqGS: OXLCN) (NasdaqGS: OXLCI) (NasdaqGS: OXLCG) (NasdaqGS: OXLCM) (“Oxford Lane,” the “Company,” “we,” “us” or “our”) announced today the following financial results and related information: 

• On October 22, 2026, our Board of Directors (the “Board of Directors”) declared the following distributions on our common stock: 
  

Month Ending	Record Date	Payment Date	Amount Per Share
January 31, 2027	January 15, 2027	January 29, 2027	$0.10
February 28, 2027	February 12, 2027	February 26, 2027	$0.10
March 31, 2027	March 17, 2027	March 31, 2027	$0.10

• Net asset value (“NAV”) per share as of September 30, 2026 stood at $9.95, compared with a NAV per share on June 30, 2026 of $10.74.
   
• Net investment income (“NII”), calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), was approximately $47.8 million, or $0.49 per share, for the quarter ended September 30, 2026.
   
• Our core net investment income (“Core NII”) was approximately $66.4 million, or $0.68 per share, for the quarter ended September 30, 2026.
   
  • Core NII incorporates all applicable cash distributions received, or entitled to be received (if any, in either case), on our collateralized loan obligation (“CLO”) equity investments. See additional information under “Supplemental Information Regarding Core Net Investment Income” below.
    
  • We emphasize that our taxable income may differ materially from our GAAP NII and/or our Core NII, and that neither GAAP NII nor Core NII should be relied upon as indicators of our taxable income.
    
    
• Total investment income for the quarter ended September 30, 2026 amounted to approximately $82.2 million, which represented a decrease of approximately $4.8 million from the quarter ended June 30, 2026.
  • For the quarter ended September 30, 2026, we recorded investment income as follows:
    • Approximately $78.8 million from our CLO equity and CLO warehouse investments, and
    • Approximately $3.4 million from our CLO debt investments and other income.
• Our total expenses for the quarter ended September 30, 2026 were approximately $34.4 million, compared with total expenses of approximately $36.8 million for the quarter ended June 30, 2026.
  
  
• As of September 30, 2026, the following metrics applied (note that none of these metrics represented a total return to shareholders):
   
  • The weighted average effective yield of our CLO equity investments at current cost was 10.5%, down from 11.1% as of June 30, 2026.
    
  • The weighted average cash distribution yield of our CLO equity investments at current cost was 12.4%, down from 16.3% as of June 30, 2026. 
     
• For the quarter ended September 30, 2026, we recorded a net decrease in net assets resulting from operations of approximately $18.5 million, or $0.19 per share, comprised of:
   
  • NII of approximately $47.8 million;
    
  • Net realized losses of approximately $22.6 million; and
    
  • Net unrealized depreciation of approximately $43.8 million. 
     
• During the quarter ended September 30, 2026, we made additional investments of approximately $18.7 million, and received approximately $31.2 million from sales and repayments of our CLO investments.
   
• As of September 30, 2026, we had approximately 98.0 million shares of common stock outstanding.
  
  
• On October 22, 2026, our Board of Directors declared the required monthly dividends on our 6.00% Series 2029 Term Preferred Shares, 7.125% Series 2029 Term Preferred Shares, and 8.25% Series 2031 Term Preferred Shares as follows:

Preferred  Shares Type	Per Share Dividend Amount Declared		Record Dates	Payment Dates
6.00% - Series 2029	$	0.12500000	December 17, 2026, January 15, 2027, February 12, 2027	December 31, 2026, January 29, 2027, February 26, 2027
7.125% - Series 2029	$	0.14843750	December 17, 2026, January 15, 2027, February 12, 2027	December 31, 2026, January 29, 2027, February 26, 2027
8.25% - Series 2031	$	0.17187500	December 17, 2026, January 15, 2027, February 12, 2027	December 31, 2026, January 29, 2027, February 26, 2027

In accordance with their terms, each of the 6.00% Series 2029 Term Preferred Shares, 7.125% Series 2029 Term Preferred Shares, and 8.25% Series 2031 Term Preferred Shares will pay a monthly dividend at a fixed rate of 6.00%, 7.125%, and 8.25%, respectively, of the $25.00 per share liquidation preference, or $1.5000, $1.78125, and $2.0625 per share per year, respectively. This fixed annual dividend rate is subject to adjustment under certain circumstances, but will not, in any case, be lower than 6.00%, 7.125%, and 8.25% per year, respectively, for each of the 6.00% Series 2029 Term Preferred Shares, 7.125% Series 2029 Term Preferred Shares, and 8.25% Series 2031 Term Preferred Shares.

Supplemental Information Regarding Core Net Investment Income 

We provide information relating to Core NII (a non-GAAP measure) on a supplemental basis. This measure is not provided as a substitute for GAAP NII, but in addition to it. Our non-GAAP measures may differ from similar measures by other companies, even in the event of similar terms being utilized to identify such measures. Core NII represents GAAP NII adjusted for additional applicable cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments. Oxford Lane’s management uses this information in its internal analysis of results and believes that this information may be informative in assessing the quality of Oxford Lane’s financial performance, identifying trends in its results and providing meaningful period-to-period comparisons.

Income from investments in the “equity” class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method; this is based on an effective yield to the expected redemption utilizing estimated cash flows, at current cost, including those CLO equity investments that have not made their inaugural distribution for the relevant period end. The result is an effective yield for the investment in which the respective investment’s cost basis is adjusted quarterly based on the difference between the actual cash received, or distributions entitled to be received, and the effective yield calculation. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by the Company during the period (referred to below as “CLO equity adjustments”). 

Furthermore, in order for the Company to continue qualifying as a regulated investment company for tax purposes, we are required, among other things, to distribute at least 90% of our investment company taxable income annually. While Core NII may provide a better indication of our estimated taxable income than GAAP NII during certain periods, we can offer no assurance that will be the case, however, as the ultimate tax character of our earnings cannot be determined until after tax returns are prepared at the close of a fiscal year. We note that this non-GAAP measure may not serve as a useful indicator of taxable earnings, particularly during periods of market disruption and volatility, and, as such, our taxable income may differ materially from our Core NII.

The following table provides a reconciliation of GAAP NII to Core NII for the three months ended September 30, 2026:

	Three Months Ended
	September 30, 2026
	Amount				Per Share
					Amount
GAAP net investment income…………………………………………	$	47,801,542			$	0.49
CLO equity adjustments……………………………………….………		18,635,340				0.19
Core net investment income……………………………………………	$	66,436,882			$	0.68

We will host a conference call to discuss our second fiscal quarter results today, Thursday, November 5, 2026 at 9:00 AM ET. Please call 1-800-715-9871, access code number 3024474 to participate. A recording of the conference call will be available for replay for approximately 30 days following the call. The replay number is 1-800-770-2030, and the replay passcode is 3024474.  

A presentation containing additional details regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.oxfordlanecapital.com. 

About Oxford Lane Capital Corp. 

Oxford Lane Capital Corp. is a publicly-traded registered closed-end management investment company principally investing in debt and equity tranches of CLO vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties.  Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.

Contact:
Bruce Rubin
203-983-5280

FAQ

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What are Oxford Lane Capital's common stock distributions for January, February and March 2027?

Oxford Lane declared $0.10 per common share for each month. January's distribution is payable January 29 to holders of record January 15; February's is payable February 26 to holders of record February 12; March's is payable March 31 to holders of record March 17, all in 2027.

What did Oxford Lane Capital report for its quarter ended September 30, 2026?

Oxford Lane reported GAAP net investment income of approximately $47.8 million, or $0.49 per share, and NAV of $9.95 per share. Net assets decreased approximately $18.5 million, or $0.19 per share, from operations, reflecting investment income offset by realized losses and unrealized depreciation.

How does Oxford Lane Capital's core net investment income differ from GAAP income?

Core net investment income adjusts GAAP net investment income for additional applicable CLO equity cash distributions received or entitled to be received. The September-quarter reconciliation includes $18,635,340, or $0.19 per share, of CLO equity adjustments. Neither GAAP nor core net investment income should be relied upon as an indicator of taxable income.

What preferred share dividends did Oxford Lane Capital declare?

Monthly dividends per share are $0.12500000 for the 6.00% Series 2029, $0.14843750 for the 7.125% Series 2029 and $0.17187500 for the 8.25% Series 2031. Payment dates are December 31, 2026, January 29, 2027 and February 26, 2027; corresponding record dates are December 17, 2026, January 15, 2027 and February 12, 2027.