Stellus Capital Investment Corporation Reports Preliminary Results for its Second Fiscal Quarter Ended June 30, 2026

Rhea-AI Summary

Stellus Capital Investment Corporation (NYSE:SCM) announced preliminary second quarter 2026 results, estimating U.S. GAAP net investment income of $0.25–$0.27 per share. During the quarter, Stellus funded approximately $18 million of investments and received about $49 million of repayments, ending with a portfolio at fair value between $965 million and $975 million.

Stellus estimates second quarter 2026 NAV per share at $12.76–$12.84, up $0.22–$0.30 (or 1.8%–2.4%) from March 31, 2026, mainly from net fair value gains and accretive share repurchases, partly offset by dividends exceeding NII. Estimated annualized return on equity exceeded 17%. Non-accrual investments comprised 5.4% of the portfolio at fair value and 8.5% at cost, with one loan returned to accrual status and no new non-accruals.

On July 14, 2026, Stellus received an SBA license for its third SBIC, permitting up to $125 million of equity and $250 million of SBA-guaranteed debentures, subject to a $475 million family limit. In the quarter, Stellus repurchased 274,343 shares for about $2.4 million (average $8.88), leaving roughly $17.6 million available under its $20 million program, expected to run until the earlier of March 2, 2027 or full authorization use. Stellus plans to release full Q2 2026 results on August 10, 2026 and host a conference call on August 11, 2026 at 10:00 a.m. CT.

Positive

• NII per share preliminarily estimated at $0.25–$0.27 in Q2 2026
• NAV per share up 1.8%–2.4% to $12.76–$12.84
• Annualized return on equity estimated above 17% for Q2 2026
• Third SBIC license allows $125m equity and $250m SBA debentures
• Share repurchases of 274,343 shares for about $2.4m in Q2 2026

Negative

• Non-accrual investments at 5.4% of portfolio fair value, 8.5% at cost
• Dividends in Q2 2026 exceeded NII per share
• Repayments of about $49m versus $18m of new fundings in Q2 2026

News Market Reaction – SCM

+5.22%

7 alerts

+5.22% Session close to close

$221.44M Market Cap

1.0x Rel. Volume

In the Jul 30 session, SCM gained 5.22%, reflecting a notable positive market reaction. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock moved +5.2% in the session following this news. MVF rose 0.28% in the peer snapshot, while...

Analysis

The stock moved +5.2% in the session following this news. MVF rose 0.28% in the peer snapshot, while other comparable funds declined, leaving SCM's announcement against a mixed backdrop. Low short positioning limited one potential volatility factor; credit-quality exposure remained a risk.

Key Figures

Net Investment Income: $0.25-$0.27 per share Portfolio Fair Value: $965-$975 million NAV Per Share: $12.76-$12.84 +5 more

8 metrics

Net Investment Income $0.25-$0.27 per share Preliminary second quarter 2026 estimate

Portfolio Fair Value $965-$975 million Preliminary total portfolio estimate at quarter end

NAV Per Share $12.76-$12.84 Preliminary NAV as of June 30, 2026

NAV Increase 1.8%-2.4% Increase from $12.54 as of March 31, 2026

Annualized Return on Equity More than 17% Estimated second quarter 2026 return

Non-Accrual Investments 5.4% of portfolio at fair value As of June 30, 2026

SBA-Guaranteed Debentures Up to $250 million Third SBIC license capacity, subject to applicable requirements

Share Repurchases 274,343 shares at $8.88 per share Second quarter 2026 repurchase activity

Historical Context

5 past events · Latest: Jul 16 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 16	Third-quarter dividend	Positive	-9.4%	Declared third-quarter regular dividend payable in monthly installments
May 19	Fund closing	Positive	-1.9%	Stellus Credit Fund IV reached its fundraising target with institutional commitments
May 11	First-quarter earnings	Positive	-0.8%	Reported first-quarter net investment income and portfolio valuation
May 07	Earnings schedule	Neutral	+0.5%	Scheduled first-quarter results release and conference call
Apr 14	Second-quarter dividend	Positive	+2.5%	Declared second-quarter regular dividend payable in monthly installments

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent positive dividend and operating announcements were more often followed by negative price reactions than aligned gains.

Key Terms

net investment income, net asset value, non-accrual status, SBIC, +1 more

5 terms

net investment income financial

"preliminary estimate of U.S. GAAP net investment income"

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net asset value financial

"preliminary estimate of net asset value ("NAV") per share"

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

View in glossary

non-accrual status financial

"investments on non-accrual status comprised 5.4%"

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

SBIC regulatory

"received a license from the U.S. Small Business Administration"

A Small Business Investment Company (SBIC) is a privately managed investment fund licensed and regulated by the U.S. Small Business Administration to provide financing to small businesses, often combining private capital with government-backed leverage. Think of it as a lender or investor that gets a government-supported boost to extend credit to smaller firms; investors care because this structure can open access to niche growth opportunities while changing the risk and return profile through regulatory oversight and government support.

SBA-guaranteed debentures financial

"draw up to $250 million of SBA-guaranteed debentures"

SBA-guaranteed debentures are debt securities whose principal and often interest are backed by a government agency guarantee from the U.S. Small Business Administration, so if the borrower can’t pay, the SBA will cover some or all of the loss. For investors this is like buying a bond with a government co-signer: it generally lowers credit risk and can command lower yields than uninsured debt, while still carrying program limits, timing and policy risks.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Stellus Capital Investment Corporation Schedules Second Quarter 2026 Financial Results Conference Call

HOUSTON, July 29, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced preliminary financial results for its second quarter ended June 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report operating results for the quarter ended June 30, 2026, including a preliminary estimate of U.S. GAAP net investment income of between $0.25 and $0.27 per share. During the quarter, we funded approximately $18 million of investments and received approximately $49 million of repayments, resulting in a total portfolio between $965 million and $975 million at fair value."

Preliminary Estimates of Second Quarter 2026 Results

The Company's preliminary estimate of second quarter 2026 net investment income ("NII") is $0.25 to $0.27 per share. The Company's preliminary estimate of net asset value ("NAV") per share as of June 30, 2026, is $12.76 to $12.84, representing an increase of $0.22 to $0.30 per share, or 1.8% to 2.4%, from the NAV per share of $12.54 as of March 31, 2026. The estimated NAV per share increase is primarily due to the net fair value appreciation on the investment portfolio and the accretive impact of equity repurchases, partially offset by dividends per share paid in the second quarter in excess of NII per share. As a result, the Company estimates that it generated an annualized return on equity of more than 17% for the second quarter of 2026. The Company estimates that investments on non-accrual status comprised 5.4% of the total investment portfolio at fair value and 8.5% at cost as of June 30, 2026. During the quarter, loans to one portfolio company were returned to accrual status, and there were no additions to non-accrual status.

Notable Events in Second Quarter 2026

On July 14, 2026, we received a license from the U.S. Small Business Administration ("SBA") for our third SBIC which allows us to contribute $125 million of equity and draw up to $250 million of SBA-guaranteed debentures, subject to the increased family of funds limit of $475 million across all of our SBIC subsidiaries and applicable SBA regulations and policies. Our partnership with the SBA is an important part of our capital structure and provides long-term, low-cost growth capital for our business. 

Pursuant to the Company's share repurchase program approved by its Board of Directors, during the second quarter of 2026, the Company repurchased 274,343 shares of its common stock at a weighted average price of $8.88 per share, representing an aggregate investment of approximately $2.4 million. As of June 30, 2026, approximately $17.6 million remained available for repurchases under the Company's authorized $20.0 million share repurchase program. The Company currently expects the repurchase program to remain in effect until the earlier of March 2, 2027 or the repurchase of $20.0 million of the Company's outstanding common stock.

Second Quarter 2026 Earnings Release and Conference Call Schedule

The Company will release its financial results for the second quarter ended June 30, 2026 on Monday, August 10, 2026, after the close of the stock market.

Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, August 11, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

Conference Call Details

Via Phone: Dial 888-506-0062 (domestic). Use passcode 218557. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, August 25, 2026 by dialing 877-481-4010 and entering passcode 54324.

Via Live Webcast: Connect via the Public Company (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

About Stellus Capital Investment Corporation

The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments. The Company's investment activities are managed by its investment adviser, Stellus Capital Management, LLC. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the Stellus Capital Investment Corporation link. Stellus Capital Management, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the Securities and Exchange Commission for additional information.

FORWARD-LOOKING STATEMENTS

The Company cautions that statements in this press release which are forward-looking and provide other than historical information, including but not limited to the preliminary estimates of second quarter 2026 financial information and results, are based on current conditions and information available to the Company as of the date hereof. Although its management believes that the expectations reflected in those forward-looking statements are reasonable, the Company can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, such factors described under the captions "Cautionary

Statement Concerning Forward-Looking Statements" and "Risk Factors" included in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") (www.sec.gov).

The Company undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.

The preliminary estimates of second quarter 2026 financial information and results furnished above are based on the Company's management's preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of the Company's customary quarter-end closing and review procedures and third-party review, including the determination of the fair value of the Company's portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during the Company's quarter-end closing and review procedures and third-party review, and the Company's reported information in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding the Company's financial condition and results of operations for the quarter ended June 30, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of the Company's full second quarter 2026 results when such results are disclosed by the Company in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The information furnished in this press release is based on the Company's management's current expectations that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.

Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com 

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SOURCE Stellus Capital Investment Corporation

FAQ

What are Stellus Capital (NYSE:SCM) preliminary Q2 2026 financial results?

Stellus Capital preliminarily estimates Q2 2026 net investment income at $0.25–$0.27 per share. According to Stellus, portfolio fair value is expected between $965 million and $975 million, reflecting about $18 million of fundings and $49 million of repayments during the quarter.

How did Stellus Capital (SCM) NAV per share change in Q2 2026?

Stellus estimates Q2 2026 NAV per share at $12.76–$12.84, up from $12.54 on March 31, 2026. According to Stellus, the 1.8%–2.4% increase mainly reflects net fair value appreciation and accretive equity repurchases, partially offset by dividends exceeding net investment income.

What does the new SBA SBIC license mean for Stellus Capital (SCM)?

The new SBA license for Stellus’ third SBIC permits $125 million of equity and up to $250 million of SBA-guaranteed debentures. According to Stellus, this SBIC partnership forms an important part of its capital structure, providing long-term, low-cost growth capital, subject to a $475 million family limit.

How much Stellus Capital (SCM) stock was repurchased in Q2 2026?

Stellus repurchased 274,343 shares of common stock in Q2 2026 at a weighted average price of $8.88, totaling about $2.4 million. According to Stellus, approximately $17.6 million remained available under its authorized $20 million share repurchase program at June 30, 2026.

What is Stellus Capital’s (SCM) non-accrual investment level as of June 30, 2026?

Stellus estimates non-accrual investments at 5.4% of the portfolio at fair value and 8.5% at cost as of June 30, 2026. According to Stellus, one portfolio company returned to accrual status during Q2 2026, and there were no new additions to non-accrual.

When will Stellus Capital (SCM) release Q2 2026 earnings and hold its conference call?

Stellus plans to release Q2 2026 financial results on Monday, August 10, 2026, after market close. According to Stellus, a results conference call will follow on Tuesday, August 11, 2026 at 10:00 a.m. Central Time, accessible by phone and live webcast.

How can investors access the Stellus Capital (SCM) Q2 2026 earnings call replay?

Investors can dial 877-481-4010 with passcode 54324 to hear the replay through August 25, 2026. According to Stellus, a webcast replay will also be available for about 90 days in the Public Company (SCIC) section of its website under the Events tab.