Neostellar Capital Corp. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Neostellar Capital (Nasdaq: NSLR) reported net assets of approximately $355.9 million, or $13.44 per share, as of June 30, 2026, versus $14.24 per share on March 31, 2026 and $9.18 a year earlier. The investment portfolio covered 37 companies with aggregate fair value of about $405.9 million, with the top five positions representing 69% of portfolio value, led by Whoop at $150.8 million.
For Q2 2026, Neostellar recorded a net investment loss of $23.4 million ($0.90 per share), including roughly $20.0 million of accelerated, non-recurring expenses tied to its transition to an externally managed structure. Net realized gains on investments were $5.0 million, while net unrealized depreciation was $0.4 million. Subsequent to quarter-end, an affiliate of Magnetar provided $20.0 million of financing via a 6.50% redeemable promissory note due 2029, which Neostellar believes enhances liquidity and financial flexibility.
Positive
- NAV per share $13.44 vs. $9.18 year-ago
- Net assets increased to $355.9 million from $205.3 million at December 31, 2025
- Portfolio fair value rose to $405.9 million from $225.5 million at December 31, 2025
- $5.0 million net realized investment gains in Q2 2026
- $20.0 million Magnetar-affiliated 6.50% redeemable note adds liquidity
- $8.0 million of 6.50% convertible notes converted, reducing principal outstanding to $27.0 million
Negative
- NAV per share declined quarter-over-quarter from $14.24 to $13.44
- Q2 2026 net investment loss of $23.4 million ($0.90 per share)
- Approximately $20.0 million of accelerated, non-recurring externalization expenses in the quarter
- Top five holdings concentration at 69% of total portfolio fair value
- Debt obligations include $35.7 million 6.00% notes 2026 and $26.4 million 6.50% convertibles 2029
News Explained
The $20 million note is funded debt now, with possible share settlement—and dilution—only if a later qualifying raise reaches $230 million.
On
The note carries
During the quarter, the company completed a
Separately, conversion of
The material follow-up is the note’s
AI-generated analysis. How Rhea-AI works. Not financial advice.
An Affiliate of Magnetar Invested
Net Asset Value of
NEW YORK, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Neostellar Capital Corp. (“Neostellar Capital”, the “Company”, “we”, “us”, and “our”) (Nasdaq: NSLR) today announced its financial results for the second quarter ended June 30, 2026. Net assets totaled approximately
“The second quarter was an important period for Neostellar Capital, marked by the completion of several meaningful investments and continued progress in the evolution of our platform,” said Mark Klein, Chairman and Chief Executive Officer of Neostellar Capital.
“Following quarter-end, we launched Neostellar Advisors with Magnetar and completed our transition to an externally managed structure. We believe the combination of our team’s private-market investment experience and Magnetar’s institutional resources broadens our sourcing capabilities, expands the range of structures we can evaluate, and strengthens our ability to pursue differentiated investment opportunities.”
“During the quarter, we funded the remaining
“We also completed an approximately
“These investments exemplify the opportunities we continue to pursue through the Neostellar platform,” Mr. Klein continued. “Artificial intelligence is driving significant investment across compute, data infrastructure, networking, software, cybersecurity, and power. We remain focused on identifying differentiated companies positioned to benefit from these structural trends.”
Mr. Klein concluded, “Our objective is not simply to own a collection of the largest private technology companies. We seek to identify exceptional businesses before they reach broader recognition and associated scale, and to invest on terms that we believe appropriately balance risk and return. We believe Neostellar’s expanded capabilities enhance our ability to pursue these opportunities while remaining focused on disciplined capital allocation and creating durable long-term value for our stockholders.”
Investment Portfolio as of June 30, 2026
At June 30, 2026, the Company held positions in 37 portfolio companies – 34 privately held and 3 publicly held – with an aggregate fair value of approximately
Top Five Investments as of June 30, 2026
| Portfolio Company($ in millions) | Cost Basis | Fair Value | % of Total Portfolio | |||
| Whoop, Inc. | $ | 11.0 | $ | 150.8 | 37.1 | % |
| ARK Type One Deep Ventures Fund LLC(1) | 17.7 | 59.3 | 14.6 | |||
| IH10, LLC(2) | 12.3 | 34.0 | 8.4 | |||
| Magnetar Opportunity 2025-4 LP(3) | 20.0 | 20.2 | 5.0 | |||
| Blink Health, Inc. | 15.0 | 17.1 | 4.2 | |||
| Total | $ | 76.0 | $ | 281.4 | 69.3 | % |
___________________
(1) ARK Type One Deep Ventures Fund LLC is an investment fund for which the Class A Interest is solely invested in the Series A-2 Preferred Shares of OpenAI Global, LLC. The Company is invested in the Series A-2 Preferred Shares of OpenAI Global, LLC through its investment in the Class A Interest of ARK Type One Deep Ventures Fund LLC.
(2) IH10, LLC’s sole portfolio asset is an interest in the Series B Preferred Shares of VAST Data, Ltd. through a special purpose vehicle (“SPV”). The Company is invested in the Series B Preferred Shares of VAST Data, Ltd. through its investment in the Membership Interest of IH10, LLC.
(3) Magnetar Opportunity 2025-4 LP is an SPV for which the Class A Interest and Class B Interest are invested in the Series B Preferred Shares of TensorWave, Inc. The Company is invested in Series B Preferred Shares of TensorWave, Inc. through its investments in the Class A Interest and Class B Interest of Magnetar Opportunity 2025-4 LP.
Second Quarter 2026 Investment Portfolio Activity
During the three months ended June 30, 2026, the Company made the following investments:
| Portfolio Company | Investment | Transaction Date | Amount(1) |
| Huntress Labs Inc. | Common Shares | 4/8/2026 | |
| ClickHouse, Inc. | Series A Preferred Shares | 4/22/2026 | |
| Magnetar Opportunity 2025-4 LP(2) | Class B Interest | 6/3/2026 |
___________________
(1) Amount invested does not include capitalized costs or prepaid expenses, if applicable.
(2) Magnetar Opportunity 2025-4 LP is an SPV invested in TensorWave, Inc. On December 31, 2025, the Company committed up to
During the three months ended June 30, 2026, the Company exited and/or received proceeds from the following investments:
| Portfolio Company | Transaction Date | Quantity/ Initial Capital | Average Net Share Price(1) | Net Proceeds | Realized Gain |
| CW Opportunity 2 LP | Various | N/A | |||
| GrabAGun Digital Holdings Inc. - Common Shares(3) | Various | 147,135 | |||
| HL Digital Assets Inc.(4) | 6/5/2026 | N/A | < |
__________________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) CW Opportunity 2 LP is an SPV for which the Class A Interest is solely invested in the Class A Common Shares of CoreWeave, Inc. Realized gain is calculated based on the current reporting by the SPV and may be subject to change or adjustment due to the impact of performance fees.
(3) As of June 30, 2026, the Company holds 452,619 common shares of GrabAGun Digital Holdings, Inc.
(4) HL Digital Assets Inc.’s primary purpose is to invest in HYPE, the digital token of Hyperliquid.
Subsequent to quarter-end through August 5, 2026, the Company made the following investment:
| Portfolio Company | Investment | Transaction Date | Amount(1) |
| Shogun Enterprises, Inc. (d/b/a Hearth)(2) | Common Shares | 7/10/2026 | < |
___________________
(1) Amount invested does not include capitalized costs or prepaid expenses, if applicable.
(2) On July 10, 2026, the Company exercised 86,076 warrants and received 86,076 Common Shares of Shogun Enterprises, Inc. (d/b/a Hearth).
Subsequent to quarter-end through August 5, 2026, the Company exited the following investment:
| Portfolio Company | Transaction Date | Quantity/ Initial Capital | Average Net Share Price(1) | Net Proceeds | Realized Gain |
| GrabAGun Digital Holdings Inc. - Common Shares(2) | Various | 143,655 |
___________________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s), if applicable.
(2) As of August 5, 2026, the Company holds 308,964 common shares of GrabAGun Digital Holdings, Inc.
Second Quarter 2026 Financial Results
| Quarter Ended June 30, 2026 | Quarter Ended June 30, 2025 | ||||||||||||
| $ in millions | per share(1) | $ in millions | per share(1) | ||||||||||
| Net investment loss(2) | $ | (23.4 | ) | $ | (0.90 | ) | $ | (3.7 | ) | $ | (0.16 | ) | |
| Net realized gain on investments | 5.0 | 0.19 | 21.2 | 0.89 | |||||||||
| Net change in unrealized appreciation/(depreciation) of investments | (0.4 | ) | (0.02 | ) | 44.8 | 1.89 | |||||||
| Net increase/(decrease) in net assets resulting from operations(3) | (18.7 | ) | (0.72 | ) | 62.3 | 2.63 | |||||||
| Issuance of common stock from conversions of | 7.8 | (0.28 | ) | - | - | ||||||||
| Stock-based compensation(4) | 5.2 | 0.21 | 0.3 | (0.10 | ) | ||||||||
| Increase/(Decrease) in net asset value(3) | $ | (5.7 | ) | $ | (0.80 | ) | $ | 62.6 | $ | 2.52 | |||
__________________
(1) Based on basic weighted-average number of shares outstanding for the relevant period.
(2) Net investment loss for the quarter ended June 30, 2026 includes approximately
(3) Total may not sum due to rounding.
(4) Represents stock-based compensation recognized during the period, net of shares withheld to satisfy statutory tax withholding obligations upon the vesting of restricted stock awards.
Weighted-average common basic shares outstanding were approximately 26.0 million and 23.7 million for the quarters ended June 30, 2026 and 2025, respectively. As of June 30, 2026, there were 26,473,222 shares of the Company’s common stock outstanding.
During the three months ended June 30, 2026, the Company issued 1,092,504 shares of its common stock and cash for fractional shares upon the conversion of
On July 17, 2026, the Company received gross proceeds of
Conference Call and Webcast
Management will hold a conference call and webcast for investors at 2:00 p.m. PT (5:00 p.m. ET) on August 5, 2026. The conference call access number for U.S. participants is 833-492-0058, and the conference call access number for participants outside the U.S. is +1 973-528-0128. The conference ID number for both access numbers is 565747. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" section of Neostellar Capital’s website at neostellar.vc. An archived replay of the webcast will also be available for 12 months following the live presentation.
A replay of the conference call may be accessed until 5:00 p.m. PT (8:00 p.m. ET) on August 12, 2026 by dialing 800-332-6854 (U.S.) or +1 973-528-0005 (International) and using conference ID number 565747.
Forward-Looking Statements
Statements included herein, including statements regarding Neostellar Capital's beliefs, expectations, intentions, or strategies for the future, may constitute "forward-looking statements". Neostellar Capital cautions you that forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected or implied in these statements. All forward-looking statements involve a number of risks and uncertainties, including the impact of any market volatility that may be detrimental to our business, our portfolio companies, our industry, and the global economy; risks relating to our externally managed structure and our relationship with Neostellar Advisors LLC (the “Adviser”), Magnetar Holdings LLC and their respective affiliates, including actual and potential conflicts of interest; our ability to retain key personnel and execute our investment strategy; and other risks and uncertainties that could cause actual results to differ materially from the plans, intentions, and expectations reflected in or suggested by the forward-looking statements. Risk factors, cautionary statements, and other conditions which could cause Neostellar Capital's actual results to differ from management's current expectations are contained in Neostellar Capital's filings with the Securities and Exchange Commission. Neostellar Capital undertakes no obligation to update any forward-looking statement to reflect events or circumstances that may arise after the date of this press release.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Neostellar Capital. The information contained herein is for informational purposes only and is not intended to be a substitute for financial, legal, or tax advice.
About Neostellar Capital Corp.
Neostellar Capital Corp. (Nasdaq: NSLR), formerly SuRo Capital Corp. (Nasdaq: SSSS), has been a publicly traded investment company focused on investing in private, venture-backed businesses for over 15 years. In simple terms, Neostellar invests in companies that are not yet listed on a public stock exchange. By owning shares of Neostellar, investors can gain exposure to a portfolio of VC-backed companies through a publicly traded stock. Neostellar is externally managed by Neostellar Advisors LLC, a joint venture owned by certain Neostellar Advisors employees and Magnetar Holdings LLC. Together, the platform combines experience in private company investing with institutional investment management capabilities. Neostellar Capital Corp. is headquartered in New York, NY and has an office in San Francisco, CA. Connect with the Company on X, LinkedIn, and at neostellar.vc.
About Neostellar Advisors LLC
Neostellar Advisors LLC is registered with the SEC as an investment adviser under the Investment Advisers Act of 1940, and serves as the external investment adviser to Neostellar Capital Corp. Formed in 2026, Neostellar Advisors LLC is a joint venture between certain executives of Neostellar Capital Corp. and Magnetar Holdings LLC, combining Neostellar's publicly traded venture investing experience with Magnetar's institutional sourcing and underwriting.
Contact
Neostellar Capital Corp.
(212) 931-6331
IR@neostellaradvisors.com
Media Contact
Deborah Kostroun
Neostellar.pr@zitopartners.com
| NEOSTELLAR CAPITAL CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |||||||
| June 30, 2026 (UNAUDITED) | December 31, 2025 (AUDITED) | ||||||
| ASSETS | |||||||
| Investments at fair value: | |||||||
| Non-controlled/non-affiliate investments (cost of | $ | 397,381,734 | $ | 217,304,138 | |||
| Non-controlled/affiliate investments (cost of | 8,469,967 | 8,207,367 | |||||
| Total Investments (cost of | 405,851,701 | 225,511,505 | |||||
| Cash | 12,940,740 | 49,034,154 | |||||
| Restricted cash | — | 38,741 | |||||
| Interest and dividends receivable | 133,862 | 118,710 | |||||
| Deferred financing costs | 578,102 | 508,310 | |||||
| Prepaid expenses and other assets(1) | 619,869 | 807,302 | |||||
| Total Assets | 420,124,274 | 276,018,722 | |||||
| LIABILITIES | |||||||
| 35,735,465 | 35,642,149 | ||||||
| 26,421,748 | 34,131,509 | ||||||
| Accounts payable and accrued expenses(1) | 2,110,075 | 627,522 | |||||
| Dividends payable | — | 301,291 | |||||
| Total Liabilities | 64,267,288 | 70,702,471 | |||||
| Net Assets | $ | 355,856,986 | $ | 205,316,251 | |||
| NET ASSETS | |||||||
| Common stock, par value | $ | 264,732 | $ | 253,778 | |||
| Paid-in capital in excess of par | 231,068,006 | 217,470,613 | |||||
| Accumulated net investment loss | (31,301,107 | ) | (3,967,932 | ) | |||
| Accumulated net realized gain on investments, net of distributions | 12,814,103 | 6,874,070 | |||||
| Accumulated net unrealized appreciation/(depreciation) of investments | 143,011,252 | (15,314,278 | ) | ||||
| Net Assets | $ | 355,856,986 | $ | 205,316,251 | |||
| Net Asset Value Per Share | $ | 13.44 | $ | 8.09 | |||
__________________________________________________
(1) These balances include a right of use asset and corresponding operating lease liability, respectively.
(2) As of June 30, 2026, the
(3) As of June 30, 2026, the
| NEOSTELLAR CAPITAL CORP. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Non-controlled/non-affiliate investments: | ||||||||||||||||
| Interest income(1) | $ | 299,650 | $ | 167,304 | $ | 687,863 | $ | 317,951 | ||||||||
| Dividend income | — | — | 343,750 | 348,447 | ||||||||||||
| Total Investment Income | 299,650 | 167,304 | 1,031,613 | 666,398 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Compensation expense | 19,696,322 | 1,571,856 | 21,672,574 | 3,239,691 | ||||||||||||
| Directors’ fees | 427,476 | 175,495 | 623,038 | 346,060 | ||||||||||||
| Interest expense | 1,136,421 | 1,275,485 | 2,353,615 | 2,535,334 | ||||||||||||
| Professional fees | 1,724,438 | 680,857 | 2,597,167 | 1,431,081 | ||||||||||||
| Income tax expense | (22,053 | ) | (218,745 | ) | 35,505 | (215,949 | ) | |||||||||
| Other expenses | 691,730 | 404,516 | 1,082,890 | 714,110 | ||||||||||||
| Total Operating Expenses | 23,654,334 | 3,889,464 | 28,364,789 | 8,050,327 | ||||||||||||
| Net Investment Loss | (23,354,684 | ) | (3,722,160 | ) | (27,333,176 | ) | (7,383,929 | ) | ||||||||
| Realized Gain on Investments: | ||||||||||||||||
| Non-controlled/non-affiliated investments | 5,049,520 | 21,212,611 | 5,940,033 | 21,194,660 | ||||||||||||
| Net Realized Gain on Investments | 5,049,520 | 21,212,611 | 5,940,033 | 21,194,660 | ||||||||||||
| Realized loss on partial repurchase of | — | — | — | (15,873 | ) | |||||||||||
| Change in Unrealized Appreciation/(Depreciation) of Investments: | ||||||||||||||||
| Non-controlled/non-affiliated investments | (1,930,131 | ) | 35,090,339 | 158,062,930 | 29,841,454 | |||||||||||
| Non-controlled/affiliate investments | 1,531,622 | (339,693 | ) | 262,600 | (812,406 | ) | ||||||||||
| Controlled investments | — | 10,086,973 | — | 18,697,449 | ||||||||||||
| Net Change in Unrealized Appreciation/(Depreciation) of Investments | (398,509 | ) | 44,837,619 | 158,325,530 | 47,726,497 | |||||||||||
| Net Change in Net Assets Resulting from Operations | $ | (18,703,673 | ) | $ | 62,328,070 | $ | 136,932,387 | $ | 61,521,355 | |||||||
| Net Change in Net Assets Resulting from Operations per Common Share: | ||||||||||||||||
| Basic | $ | (0.72 | ) | $ | 2.63 | $ | 5.33 | $ | 2.60 | |||||||
| Diluted(2) | $ | (0.72 | ) | $ | 2.23 | $ | 4.58 | $ | 2.23 | |||||||
| Weighted-Average Common Shares Outstanding | ||||||||||||||||
| Basic | 25,983,140 | 23,728,095 | 25,683,611 | 23,650,399 | ||||||||||||
| Diluted(2) | 25,983,140 | 28,244,225 | 30,168,169 | 28,113,063 | ||||||||||||
__________________________________________________
(1) Includes interest income earned on cash.
(2) For the three months ended June 30, 2026, 4,192,642 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net change in net assets resulting from operations per common share because the effect of these shares would have been antidilutive.
| NEOSTELLAR CAPITAL CORP. AND SUBSIDIARIES FINANCIAL HIGHLIGHTS (UNAUDITED) | ||||||||||||||||
| | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Per Basic Share Data | ||||||||||||||||
| Net asset value at beginning of period | $ | 14.24 | $ | 6.66 | $ | 8.09 | $ | 6.68 | ||||||||
| Net investment loss(1) | (0.90 | ) | (0.16 | ) | (1.06 | ) | (0.31 | ) | ||||||||
| Net realized gain on investments(1) | 0.19 | 0.89 | 0.23 | 0.90 | ||||||||||||
| Realized loss on partial repurchase of | — | — | — | <(0.01) | ||||||||||||
| Net change in unrealized appreciation/(depreciation) of investments(1) | (0.02 | ) | 1.89 | 6.16 | 2.02 | |||||||||||
| Issuance of common stock from conversion of | (0.28 | ) | — | (0.28 | ) | — | ||||||||||
| Stock-based compensation(1)(2) | 0.21 | (0.10 | ) | 0.30 | (0.11 | ) | ||||||||||
| Net asset value at end of period | $ | 13.44 | $ | 9.18 | $ | 13.44 | $ | 9.18 | ||||||||
| Per share market value at end of period | $ | 12.54 | $ | 8.21 | $ | 12.54 | $ | 8.21 | ||||||||
| Total return based on market value(3) | 17.09 | % | 65.19 | % | 32.84 | % | 39.63 | % | ||||||||
| Total return based on net asset value(3) | (5.62 | )% | 37.84 | % | 66.13 | % | 37.43 | % | ||||||||
| Shares outstanding at end of period | 26,473,222 | 23,888,107 | 26,473,222 | 23,888,107 | ||||||||||||
| Ratios/Supplemental Data: | | | ||||||||||||||
| Net assets at end of period | $ | 355,856,986 | $ | 219,409,595 | $ | 355,856,986 | $ | 219,409,595 | ||||||||
| Average net assets | $ | 365,283,999 | $ | 160,412,515 | $ | 286,289,589 | $ | 158,444,298 | ||||||||
| Ratio of net operating expenses to average net assets(4) | 9.49 | % | 9.73 | % | 12.88 | % | 10.25 | % | ||||||||
| Ratio of net investment loss to average net assets(4) | (9.16 | )% | (9.31 | )% | (12.15 | )% | (9.40 | )% | ||||||||
| Portfolio Turnover Ratio | 3.04 | % | 2.36 | % | 4.03 | % | 3.02 | % | ||||||||
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(1) Based on weighted-average number of shares outstanding for the relevant period.
(2) Represents stock-based compensation recognized during the period, net of shares withheld to satisfy statutory tax withholding obligations upon the vesting of restricted stock awards.
(3) Total return based on market value is based upon the change in market price per share between the opening and ending market values per share in the period, adjusted for dividends. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share in the period, adjusted for dividends.
(4) Financial highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. For the three and six months ended June 30, 2026, the annualization of these ratios excludes the effect of approximately
