Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025

Rhea-AI Summary

Stellus Capital Investment Corporation (NYSE: SCM) reported results for the fiscal quarter ended September 30, 2025. The company reported U.S. GAAP net investment income of $0.32 per share, core net investment income of $0.34 per share, and net realized income of $0.42 per share. During the quarter the firm funded $64 million of new investments and received $39 million of repayments, leaving its portfolio at $1.01 billion fair value and net assets of $377.7 million (NAV per share $13.05).

The company declared distributions of $0.40 per share for the quarter and reported cumulative distributions to investors of $318 million ($17.75 per share) since inception. The Credit Facility allows up to $335 million; borrowings were $167.6 million at quarter end. The company issued 531,106 shares under its ATM program for gross proceeds of $7.4 million.

Positive

• Portfolio at $1.01 billion fair value
• Cumulative distributions of $318 million ( $17.75/share)
• Net realized gains of $2.86 million for the quarter
• Issued 531,106 shares via ATM for $7.4 million

Negative

• Net investment income down 10.9% YoY to $9.14M
• Core net investment income per share down 15% YoY to $0.34
• Net unrealized depreciation of investments of $5.14 million

News Market Reaction

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On the day this news was published, SCM gained 2.98%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

HOUSTON, Nov. 10, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended September 30, 2025.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended September 30, 2025, in which we earned U.S. GAAP net investment income of $0.32 per share, core net investment income of $0.34 per share and net realized income of $0.42 per share. During the quarter, we funded $64 million of investments and received $39 million of repayments, resulting in a total portfolio of $1.01 billion at fair value. I'm also pleased to report that our investors have received a total of $318 million in distributions, equivalent to $17.75 per share, since we began operations."

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)

	Three Months Ended						Nine Months Ended
	September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
	Amount	Per Share		Amount	Per Share		Amount	Per Share		Amount	Per Share
Net investment income	$9.14	$0.32		$10.26	$0.39		$28.48	$1.01		$32.29	$1.29
Core net investment income(1)	9.65	0.34		10.62	0.40		29.93	1.06		33.59	1.34
Net realized gain (loss) on investments	2.86	0.10		(3.30)	(0.13)		(3.96)	(0.14)		(21.69)	(0.87)
Net realized loss on foreign currency translation	(0.01)	—		(0.02)	—		(0.06)	—		(0.08)	—
Loss on debt extinguishment	(0.16)	(0.01)		—	—		(0.16)	(0.01)		—	—
Total realized income(2)	$11.83	$0.41		$6.94	$0.26		$24.30	$0.86		$10.52	$0.42
Distributions	(11.43)	(0.40)		(10.63)	(0.40)		(33.89)	(1.20)		(30.32)	(1.21)
Net unrealized change in (depreciation) appreciation on investments	(5.14)	(0.18)		8.51	0.33		(2.51)	(0.08)		26.44	1.05
Net unrealized change in appreciation on foreign currency translation	—	—		0.01	—		0.04	—		—	—
Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries	—	—		—	—		—	—		0.19	0.01
Net increase in net assets resulting from operations	$6.69	$0.23		$15.46	$0.59		$21.83	$0.78		$37.15	$1.48
Weighted average shares outstanding		28,480,472			26,326,426			28,168,527			25,066,626

(1)	Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.
(2)	Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.

PORTFOLIO ACTIVITY

($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)

		As of		As of
		September 30, 2025		December 31, 2024
Investments at fair value		$1,010.2		$953.5
Total assets		$1,028.6		$980.9
Net assets		$377.7		$369.9
Shares outstanding		28,947,254		27,481,118
Net asset value per share		$13.05		$13.46
		Three Months Ended				Nine Months Ended
		September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
New investments		$63.8		$17.8		$142.0		$112.6
Repayments of investments		(39.0)		(15.5)		(85.6)		(87.3)
Net activity		$24.8		$2.3		$56.4		$25.3
		As of		As of
		September 30, 2025		December 31, 2024
Number of portfolio company investments		115		105
Number of debt investments		100		92
Weighted average yield of debt and other income producing investments (3)
Cash		9.0 %		9.5 %
Payment-in-kind ("PIK")		0.6 %		0.4 %
Fee amortization		0.4 %		0.4 %
Total		10.0 %		10.3 %
Weighted average yield of total investments(4)
Cash		8.4 %		8.9 %
PIK		0.6 %		0.4 %
Fee amortization		0.4 %		0.4 %
Total		9.4 %		9.7 %

(3)	The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.
(4)	The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.

Results of Operations

Investment income for the three months ended September 30, 2025 and 2024 totaled $26.3 million and $26.5 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended September 30, 2025 and 2024 totaled $17.6 million and $16.2 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.9 million and $8.0 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.5 million and $0.4 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $0.5 million and $0.0 million of income incentive fees due to the total return limitation pursuant to the terms of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended September 30, 2025 and 2024, respectively, for net operating expenses of $17.1 million and $16.2 million, respectively.

Net investment income was $9.1 million and $10.3 million, or $0.32 and $0.39 per common share based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended September 30, 2025 and 2024 was $9.7 million and $10.6 million, or $0.34 and $0.40 per share, respectively.

For the three months ended September 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($5.1) million and $8.5 million, respectively, and the Company had net realized gains (losses) of $2.9 million and ($3.3) million, respectively.

Net increase in net assets resulting from operations totaled $6.7 million and $15.5 million, or $0.23 and $0.59 per common share, based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

As of September 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of September 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million and $350.0 million, respectively.

As of September 30, 2025 and December 31, 2024, the Company had $167.6 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.

The Company issued 531,106 shares during the three months ended September 30, 2025 under the at-the-market equity program ("ATM Program") for gross proceeds of $7.4 million. The average per share offering price of shares issued under the ATM Program during the three months ended September 30, 2025 was $14.00.

Distributions

For both the three months ended September 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.6 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.

Recent Portfolio Activity

The Company invested in the following portfolio companies during the three months ended September 30, 2025:

---

Activity Type		Date		Company Name		Company Description		Investment Amount			Instrument Type
Add-On Investment		July 28, 2025		Equine Network, LLC*		Hosts competitions and provides services for the U.S. equine industry		$	2,122,453		Senior Secured – First Lien
New Investment		July 31, 2025		The Millennium Alliance, LLC		Facilitator of peer-to-peer events connecting companies with technology solution providers		$	11,500,000		Senior Secured – First Lien
								$	100,000		Revolver Commitment
								$	515,556		Equity
New Investment		July 31, 2025		Elder Care Opco LLC		Provider of homecare services		$	7,785,007		Senior Secured – First Lien
								$	2,500,000		Delayed Draw Term Loan Commitment
								$	100,000		Revolver Commitment
								$	910,966		Equity
Add-On Investment		August 4, 2025		Guidant Corp.*		Provider of liquid metering products and integrated solutions to the energy infrastructure sector		$	66,030		Equity
Add-On Investment		August 5, 2025		MedLearning Group, LLC*		Provider of continuing medical education services		$	1,000,000		Senior Secured – First Lien
Add-On Investment		August 21, 2025		Invincible Boat Company LLC*		Manufacturer and marketer of ultra-premium saltwater fishing boats		$	531,915		Revolver Commitment
New Investment		August 22, 2025		DMD Systems Recovery, LLC		Provider of IT asset disposition services		$	6,100,000		Senior Secured – First Lien
								$	1,000,000		Delayed Draw Term Loan Commitment
								$	100,000		Revolver Commitment
								$	180,000		Equity
Add-On Investment		August 29, 2025		Compost 360 Acquisition, LLC*		Organic waste recycler and producer of compost, mulch, and engineered soils		$	27,630		Equity
New Investment		September 19, 2025		Champion Services Acquireco LLC		Provider of commercial re-roofing and restoration services		$	12,000,000		Senior Secured – First Lien
								$	100,000		Revolver Commitment
								$	268,889		Equity
New Investment		September 22, 2025		DFO Enterprises, LLC		Manufacturer of fiber optic cable assembly equipment, consumables, and precision components		$	11,580,474		Senior Secured – First Lien
								$	100,000		Revolver Commitment
								$	412,252		Equity

*Existing portfolio company

 

The Company realized investments in the following portfolio companies during the three months ended September 30, 2025:

---

Activity Type

Date

Company Name

Company Description

Proceeds Received

Realized Gain (Loss)

Instrument Type

Full Realization

July 3, 2025

EOS Fitness Holdings, LLC

Gym franchise operator

$

2,799,098

$

2,799,098

Equity

Full Repayment

July 31, 2025

Rogers Mechanical Contractors, LLC

HVAC and plumbing designer, installer, and service provider for new/existing data centers, fulfilment sortation facilities, and warehouses

$

8,272,652

$

—

Senior Secured – First Lien

Full Repayment

August 21, 2025

CompleteCase, LLC

Provider of online uncontested  divorce solutions

$

6,287,212

$

—

Senior Secured – First Lien

Full Repayment

September 18, 2025

Cafe Valley, Inc.

Wholesale bakery serving the in-store bakery, food service, club, mass, C-store and international channels

$

15,284,524

$

—

Senior Secured – First Lien

*Existing portfolio company

Events Subsequent to September 30, 2025

The Company's management has evaluated subsequent events through November 10, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to September 30, 2025:

---

Activity Type		Date		Company Name		Company Description		Investment Amount			Instrument Type
Add-On Investment		October 1, 2025		The Hardenbergh Group, Inc.*		Provider of patient safety, clinical risk mitigation, and healthcare compliance solutions		$	500,000		Senior Secured – First Lien
Add-On Investment		October 3, 2025		EH Real Estate Services, LLC*		Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers  and sellers		$	183,470		Senior Secured – First Lien
Add-On Investment		October 17, 2025		J.R. Watkins, LLC*		Manufacturer and distributor of home and personal care products		$	18,000		Priority Revolver Commitment
New Investment		October 17, 2025		Fidus Systems Inc.		Provider of outsourced electronic product development and engineering services		$	4,759,099		Senior Secured – First Lien
								$	3,172,733		Delayed Draw Term Loan Commitment
								$	100,000		Revolver Commitment
								$	267,728		Equity
Add-On Investment		November 6, 2025		Mobotrex Acquisition, LLC*		Distributor and manufacturer of intelligent traffic solution equipment		$	3,523,787		Senior Secured – First Lien
								$	1,549,698		Delayed Draw Term Loan Commitment
								$	73,776		Revolver Commitment
Add-On Investment		November 6, 2025		Ad.Net Acquisition, LLC*		A digital marketing company that targets high-conversion consumers through cost-per-click digital media advertising		$	1,896,568		Senior Secured – First Lien
								$	85,027		Equity

*Existing portfolio company

 

The Company realized investments in the following portfolio companies subsequent to September 30, 2025:

Activity Type		Date		Company Name		Company Description		Proceeds Received			Realized Gain			Instrument Type
Full Repayment		October 25, 2025		Heartland Business Systems, LLC		End-to-end information technologies solutions provider		$	9,725,000		$	—		Senior Secured – First Lien
								$	48,875		$	—		Delayed Draw Term Loan
Full Repayment		November 3, 2025		NuSource Financial Acquisition, Inc.		Provider of technology integration and installation of teller machines, maintenance services, and security solutions		$	7,014,746		$	—		Unsecured
Full Realization								$	1,066,715		$	1,066,715		Warrants

Credit Facility

The outstanding balance under the Credit Facility as of November 10, 2025 was $182.8 million.

Distributions Declared

On October 8, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of October 2025, November 2025, and December 2025 as follows:

		Ex-Dividend		Record		Payment		Amount per
Declared		Date		Date		Date		Share
10/8/2025		10/31/2025		10/31/2025		11/14/2025		$	0.1333
10/8/2025		11/28/2025		11/28/2025		12/15/2025		$	0.1333
10/8/2025		12/31/2025		12/31/2025		1/15/2026		$	0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, November 12, 2025 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.

For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 118871. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, November 26, 2025 by dialing (877) 481-4010 and entering passcode 53167. The replay will also be available on the Company's website.

For those wishing to participate via Live Webcast, connect via the Public (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 lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts

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

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
		September 30, 2025
		(unaudited)			December 31, 2024
ASSETS
Controlled investments at fair value (amortized cost of $33,202,703 and $17,934,808, respectively)		$	13,568,095		$	7,652,436
Non-controlled, non-affiliated investments, at fair value (amortized cost of $986,914,541 and $943,853,898, respectively)			996,641,541			945,845,252
Cash and cash equivalents			9,024,020			20,058,594
Receivable for sales and repayments of investments			437,552			335,689
Interest receivable			7,047,686			4,947,765
Income tax receivable			1,522,198			1,301,965
Other receivables			99,111			87,995
Related party receivable			22,500			3,687
Prepaid expenses			281,634			666,866
Total Assets		$	1,028,644,337		$	980,900,249
LIABILITIES
Notes Payable		$	172,522,707		$	99,444,355
Credit Facility payable			163,995,602			172,314,315
SBA-guaranteed debentures			295,805,634			321,251,939
Dividends payable			3,858,669			3,663,233
Management fees payable			4,401,305			4,034,109
Income incentive fees payable			2,642,033			3,109,560
Interest payable			5,912,375			5,281,343
Related party payable			136,535			—
Unearned revenue			640,637			548,626
Administrative services payable			507,139			393,513
Other accrued expenses and liabilities			491,374			937,316
Total Liabilities		$	650,914,010		$	610,978,309
Commitments and contingencies (Note 7)
Net Assets		$	377,730,327		$	369,921,940
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,947,254 and 27,481,118 shares issued and outstanding, respectively)		$	28,947		$	27,481
Paid-in capital			399,410,630			379,549,272
Total distributable loss			(21,709,250)			(9,654,813)
Net Assets		$	377,730,327		$	369,921,940
Total Liabilities and Net Assets		$	1,028,644,337		$	980,900,249
Net Asset Value Per Share		$	13.05		$	13.46

 

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		For the three months ended						For the nine months ended
		September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
INVESTMENT INCOME
From controlled investments:
Interest income		$	—		$	—		$	—		$	81,636
From non-controlled, non-affiliated investments
Interest income			23,634,587			24,403,375			69,923,357			72,969,302
Payment-in-kind interest income			1,378,166			934,986			3,870,717			2,490,854
Other income			1,262,956			1,159,898			3,129,895			3,579,415
Total Investment Income		$	26,275,709		$	26,498,259		$	76,923,969		$	79,121,207
OPERATING EXPENSES
Management fees		$	4,401,305		$	3,959,554		$	12,735,472		$	11,664,020
Valuation fees			172,364			151,535			368,760			343,753
Administrative services expenses			592,409			469,274			1,515,991			1,441,436
Income incentive fees			2,166,047			2,564,922			6,460,613			7,616,562
Professional fees			395,098			312,034			1,125,937			847,866
Directors' fees			93,250			93,250			297,750			315,750
Insurance expense			99,248			126,362			295,006			376,840
Interest expense and other fees			8,949,075			7,956,403			25,892,109			23,840,473
Income tax expense			515,686			360,192			1,444,184			1,304,948
Other general and administrative expenses			227,037			245,043			945,690			908,185
Total Operating Expenses		$	17,611,519		$	16,238,569		$	51,081,512		$	48,659,833
Income incentive fee waiver			(471,251)			—			(2,643,020)			(1,826,893)
Total Operating Expenses, net of fee waivers		$	17,140,268		$	16,238,569		$	48,438,492		$	46,832,940
Net Investment Income		$	9,135,441		$	10,259,690		$	28,485,477		$	32,288,267
Net realized loss on controlled investments		$	—		$	—		$	(1,132,576)		$	—
Net realized gain (loss) on non-controlled, non-affiliated investments			2,867,155			(3,297,615)			(2,827,517)			(21,689,864)
Net realized loss on foreign currency translations			(9,422)			(22,095)			(59,080)			(76,990)
Loss on debt extinguishment			(164,762)			—			(164,762)			—
Net change in unrealized appreciation on controlled investments			51,367			248,746			1,397,134			923,505
Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated investments			(5,187,426)			8,255,272			(3,906,233)			25,512,422
Net change in unrealized (depreciation) appreciation on foreign currency translations			(325)			14,588			38,540			5,099
Benefit for taxes on net unrealized depreciation on investments			—			—			—			188,893
Benefit for taxes on net realized loss on investments			—			2,221			—			2,221
Net Increase in Net Assets Resulting from Operations		$	6,692,028		$	15,460,807		$	21,830,983		$	37,153,553
Net Investment Income Per Share—basic and diluted		$	0.32		$	0.39		$	1.01		$	1.29
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted		$	0.23		$	0.59		$	0.78		$	1.48
Weighted Average Shares of Common Stock Outstanding—basic and diluted			28,480,472			26,326,426			28,168,527			25,066,626
Distributions Per Share—basic and diluted		$	0.40		$	0.40		$	1.20		$	1.21

 

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
		Common Stock								Total
		Number		Par			Paid-in			distributable
		of shares		value			capital			(loss)			Net Assets
Balances at December 31, 2023		24,125,642		$	24,125		$	335,918,984		$	(16,003,321)		$	319,939,788
Net investment income		—			—			—			10,235,916			10,235,916
Net realized loss on investments		—			—			—			(20,384,731)			(20,384,731)
Net realized loss on foreign currency translations		—			—			—			(25,106)			(25,106)
Net change in unrealized appreciation on investments		—			—			—			23,518,590			23,518,590
Net change in unrealized depreciation on foreign currency translations		—			—			—			(3,602)			(3,602)
Provision for taxes on unrealized appreciation on investments		—			—			—			(192,607)			(192,607)
Distributions from net investment income		—			—			—			(9,647,844)			(9,647,844)
Balances at March 31, 2024		24,125,642		$	24,125		$	335,918,984		$	(12,502,705)		$	323,440,404
Net investment income		—			—			—			11,792,661			11,792,661
Net realized gain on investments		—			—			—			1,992,482			1,992,482
Net realized loss on foreign currency translations		—			—			—			(29,789)			(29,789)
Net change in unrealized depreciation on investments		—			—			—			(5,586,681)			(5,586,681)
Net change in unrealized depreciation on foreign currency translations		—			—			—			(5,887)			(5,887)
Benefit for taxes on unrealized depreciation on investments		—			—			—			381,500			381,500
Distributions from net investment income		—			—			—			(10,049,073)			(10,049,073)
Issuance of common stock, net of offering costs(1)		1,855,356			1,856			25,248,020			—			25,249,876
Balances at June 30, 2024		25,980,998		$	25,981		$	361,167,004		$	(14,007,492)		$	347,185,493
Net investment income		—			—			—			10,259,690			10,259,690
Net realized loss on investments		—			—			—			(3,297,615)			(3,297,615)
Net realized loss on foreign currency translation		—			—			—			(22,095)			(22,095)
Net change in unrealized appreciation on investments		—			—			—			8,504,018			8,504,018
Net change in unrealized appreciation on foreign currency translations		—			—			—			14,588			14,588
Benefit for taxes on net realized loss on investments		—			—			—			2,221			2,221
Distributions from net investment income		—			—			—			(10,625,512)			(10,625,512)
Issuance of common stock, net of offering costs(1)		1,058,366			1,058			14,263,441			—			14,264,499
Balances at September 30, 2024		27,039,364		$	27,039		$	375,430,445		$	(9,172,197)		$	366,285,287
Balances at December 31, 2024		27,481,118		$	27,481		$	379,549,272		$	(9,654,813)		$	369,921,940
Net investment income		—			—			—			9,788,809			9,788,809
Net realized loss on investments		—			—			—			(5,967,221)			(5,967,221)
Net realized loss on foreign currency translations		—			—			—			(29,655)			(29,655)
Net change in unrealized appreciation on investments		—			—			—			1,193,293			1,193,293
Net change in unrealized depreciation on foreign currency translations		—			—			—			8,319			8,319
Distributions from net investment income		—			—			—			(11,087,389)			(11,087,389)
Issuance of common stock, net of offering costs(1)		656,085			656			8,937,430			—			8,938,086
Balances at March 31, 2025		28,137,203		$	28,137		$	388,486,702		$	(15,748,657)		$	372,766,182
Net investment income		—			—			—			9,561,227			9,561,227
Net realized loss on investments		—			—			—			(860,027)			(860,027)
Net realized loss on foreign currency translations		—			—			—			(20,003)			(20,003)
Net change in unrealized appreciation on investments		—			—			—			1,433,667			1,433,667
Net change in unrealized appreciation on foreign currency translations		—			—			—			30,546			30,546
Distributions from net investment income		—			—			—			(11,363,618)			(11,363,618)
Issuance of common stock, net of offering costs(1)		278,945			279			3,822,637			—			3,822,916
Balances at June 30, 2025		28,416,148		$	28,416		$	392,309,339		$	(16,966,865)		$	375,370,890
Net investment income		—			—			—			9,135,441			9,135,441
Net realized gain on investments		—			—			—			2,867,155			2,867,155
Net realized loss on foreign currency translations		—			—			—			(9,422)			(9,422)
Loss on debt extinguishment		—			—			—			(164,762)			(164,762)
Net change in unrealized depreciation on investments		—			—			—			(5,136,059)			(5,136,059)
Net change in unrealized depreciation on foreign currency translations		—			—			—			(325)			(325)
Distributions from net investment income		—			—			—			(11,434,413)			(11,434,413)
Issuance of common stock, net of offering costs(1)		531,106			531			7,101,291			—			7,101,822
Balances at September 30, 2025		28,947,254		$	28,947		$	399,410,630		$	(21,709,250)		$	377,730,327

 

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
		For the nine months ended
		September 30, 2025			September 30, 2024
Cash Flows from Operating Activities
Net increase in net assets resulting from operations		$	21,830,983		$	37,153,553
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments			(141,983,167)			(112,624,812)
Proceeds from sales and repayments of investments			85,635,632			87,308,914
Net change in unrealized depreciation (appreciation) on investments			2,509,099			(26,435,927)
Net change in unrealized appreciation on foreign currency translations			(37,811)			(5,099)
Increase in investments due to PIK			(3,870,717)			(2,490,856)
Amortization of premium and accretion of discount, net			(2,172,972)			(2,045,992)
Deferred tax benefit			—			(188,893)
Amortization of loan structure fees			954,033			825,891
Amortization of deferred financing costs			447,751			335,345
Amortization of discount on Notes Payable			63,395			—
Amortization of loan fees on SBA-guaranteed debentures			553,695			784,763
Net realized loss on investments			3,960,093			21,689,864
Loss on debt extinguishment			164,762			—
Changes in other assets and liabilities
Increase in interest receivable			(2,099,921)			(1,389,856)
Increase in income tax receivable			(220,233)			(228,663)
Increase in other receivables			(11,116)			(25,000)
Increase in related party receivables			(18,813)			—
Decrease in prepaid expenses			385,232			349,950
Increase in management fees payable			367,196			1,041,018
(Decrease) increase in income incentive fees payable			(467,527)			269,396
Increase (decrease) in administrative services payable			113,626			(1,118)
Increase (decrease) in interest payable			631,032			(3,988,133)
Increase in related party payable			136,535			1,898,854
Increase in unearned revenue			92,011			152,623
(Decrease) increase in other accrued expenses and liabilities			(445,942)			718,139
Net Cash (Used) Provided in Operating Activities		$	(33,483,144)		$	3,103,961
Cash Flows from Financing Activities
Proceeds from the issuance of common stock		$	20,588,960		$	40,370,901
Sales load for common stock issued			(308,998)			(606,145)
Offering costs paid for common stock issued			(417,138)			(243,067)
Stockholder distributions paid			(33,689,984)			(26,718,082)
Proceeds from issuance of Notes Payable			125,000,000			—
Repayment of Notes Payable			(50,000,000)			—
Premium from issuance of Notes Payable			648,000			—
Discount from issuance of Notes Payable			(770,250)			—
Financing costs paid on Notes Payable			(2,475,306)			—
Repayments of SBA-guaranteed debentures			(26,000,000)			—
Financing costs paid on Credit Facility			(1,525,014)			(101,348)
Borrowings under Credit Facility			198,900,000			122,400,000
Repayments of Credit Facility			(207,501,700)			(125,751,700)
Net Cash Provided by Financing Activities		$	22,448,570		$	9,350,559
Net (Decrease) Increase in Cash and Cash Equivalents		$	(11,034,574)		$	12,454,520
Cash and Cash Equivalents Balance at Beginning of Period		$	20,058,594		$	26,125,741
Cash and Cash Equivalents Balance at End of Period		$	9,024,020		$	38,580,261
Supplemental and Non-Cash Activities
Cash paid for interest expense		$	24,940,287		$	25,882,607
Income and excise tax paid			1,664,417			1,533,611
Exchange of investments			1,663,301			8,256,411

 

Reconciliation of Core Net Investment Income (1) (Unaudited)
		Three Months Ended				Nine Months Ended
		September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net investment income		$9,135,441		$10,259,690		$28,485,477		$32,288,267
Income tax expense		515,686		360,192		1,444,184		1,304,948
Core net investment income		$9,651,127		$10,619,882		$29,929,661		$33,593,215
Per share amounts:
Net investment income per share		$0.32		$0.39		$1.01		$1.29
Core net investment income per share		$0.34		$0.40		$1.06		$1.34

 

Reconciliation of Realized Net Investment Income (2) (Unaudited)
		Three Months Ended				Nine Months Ended
		September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Net investment income		$9,135,441		$10,259,690		$28,485,477		$32,288,267
Net realized gain (loss) on investments		2,867,155		(3,297,615)		(3,960,093)		(21,689,864)
Net realized loss on foreign currency translation		(9,422)		(22,095)		(59,080)		(76,990)
Benefit for taxes on net realized loss on investments		—		2,221		—		2,221
Loss on debt extinguishment		(164,762)		—		(164,762)		—
Total realized net investment income		$11,828,412		$6,942,201		$24,301,542		$10,523,634
Per share amounts:
Net investment income per share		$0.32		$0.39		$1.01		$1.29
Realized net investment income per share		$0.42		$0.26		$0.86		$0.42

 

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SOURCE Stellus Capital Investment Corporation

FAQ

What did Stellus Capital (SCM) report for net investment income in Q3 2025?

Stellus reported U.S. GAAP net investment income of $0.32 per share for Q3 2025.

How large was Stellus Capital's investment portfolio at September 30, 2025 (SCM)?

The portfolio was reported at $1.01 billion fair value as of September 30, 2025.

What distributions did Stellus Capital (SCM) declare for Q3 2025 and cumulative since inception?

The company declared $0.40 per share for Q3 2025 and cumulative distributions of $318 million ($17.75/share) since inception.

How much did Stellus Capital (SCM) fund and receive in repayments during Q3 2025?

During Q3 2025 Stellus funded $64 million of investments and received $39 million of repayments.

What was Stellus Capital's NAV per share and shares outstanding at September 30, 2025 (SCM)?

NAV per share was $13.05 with 28,947,254 shares outstanding at September 30, 2025.

What was the status of Stellus Capital's credit facility and borrowings as of September 30, 2025 (SCM)?

The Credit Facility permits borrowings up to $335 million; outstanding borrowings were $167.6 million at quarter end.