OFS Capital (NASDAQ: OFS) posts Q2 2026 earnings and $0.17 dividend
Rhea-AI Filing Summary
OFS Capital Corporation reported second-quarter 2026 results for its business development company. Net investment income was $1.0 million, or $0.08 per common share, down from $0.18 in the prior quarter, as total investment income declined to $6.8 million from $8.9 million, mainly on lower interest and non-recurring dividend income.
Net gain on investments was $4.6 million, driven largely by unrealized appreciation of $14.1 million on a common equity holding, partially offset by losses on CLO equity. Earnings per share were $0.42. Net asset value per share rose to $8.41 from $8.16, as investment gains more than offset the $0.17 quarterly distribution and lower net investment income.
Total investments at fair value were $297.8 million and total outstanding debt principal was $185.8 million as of June 30, 2026. Non-accrual loans had a fair value of $21.4 million, or 7.2% of investments. The regulatory asset coverage ratio was 161%, above the 150% minimum. The board declared a third-quarter 2026 distribution of $0.17 per share, payable October 5, 2026.
Positive
- None.
Negative
- None.
Filing Explained
At June 30, cash was $4.0 million; unused facilities were $15.0 million and $43.2 million, with $6.0 million of funding commitments.
This July 30 Form 8-K furnishes the company’s completed quarter-end results; its additional structural disclosure is the liquidity available at that reporting date. As of
The company also reported unused commitments of
8-K Event Classification
Key Figures
Key Terms
net investment income financial
non-accrual status financial
weighted-average performing income yield financial
regulatory asset coverage ratio financial
business development company financial
Earnings Snapshot
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FAQ
How did OFS (OFS) perform in terms of net investment income and earnings in Q2 2026?
What dividend did OFS (OFS) declare for the third quarter of 2026?
How did OFS (OFS) net asset value change in the second quarter of 2026?
What were OFS (OFS) portfolio size, leverage, and non-accrual levels at June 30, 2026?
What were OFS (OFS) portfolio yields and borrowing costs in Q2 2026?
What liquidity and funding capacity did OFS (OFS) report as of June 30, 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On July 30, 2026, OFS Capital Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2026. On July 28, 2026, the Company’s board of directors declared a 2026 third quarter distribution of $0.17 per common share, payable October 5, 2026 to stockholders of record as of September 18, 2026. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) Exhibits.
Exhibit No. |
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Description |
99.1 |
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Press Release issued by OFS Capital Corporation on July 30, 2026 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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OFS Capital Corporation |
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Date: |
July 30, 2026 |
By: |
/s/ Bilal Rashid |
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Chief Executive Officer |
Exhibit 99.1
OFS CAPITAL CORPORATION ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS
DECLARES THIRD QUARTER DISTRIBUTION OF $0.17 PER SHARE
Chicago, IL - July 30, 2026 - OFS Capital Corporation (Nasdaq: OFS) (“OFS Capital,” the “Company,” “we,” “us,” or “our”) today announced its financial results for the fiscal quarter ended June 30, 2026.
SECOND QUARTER FINANCIAL HIGHLIGHTS
OTHER RECENT EVENTS
SELECTED FINANCIAL HIGHLIGHTS |
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Three Months Ended |
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(Per common share) |
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June 30, 2026 |
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March 31, 2026 |
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Net Investment Income |
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Net investment income |
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$ |
0.08 |
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$ |
0.18 |
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Net Realized/Unrealized Gain (Loss) |
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Net realized loss on investments, net of taxes |
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$ |
(0.45 |
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$ |
(0.84 |
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Net unrealized appreciation (depreciation) on investments, net of taxes |
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0.79 |
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(0.19 |
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Loss on extinguishment of debt |
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— |
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(0.01 |
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Net gain (loss) |
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$ |
0.34 |
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$ |
(1.04 |
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Net Earnings (Loss) |
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Net Earnings (loss) |
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$ |
0.42 |
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$ |
(0.86 |
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Net Asset Value |
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Net asset value |
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$ |
8.41 |
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$ |
8.16 |
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Distributions declared |
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0.17 |
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0.17 |
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As of |
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(in millions) |
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June 30, 2026 |
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March 31, 2026 |
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Balance Sheet Highlights |
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Total investments, at fair value |
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$ |
297.8 |
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$ |
308.1 |
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Total outstanding debt - principal |
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185.8 |
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202.5 |
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Total net assets |
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112.6 |
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109.3 |
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PORTFOLIO AND INVESTMENT ACTIVITIES
($ in millions)
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Three Months Ended |
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Portfolio Yields(1) |
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June 30, 2026 |
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March 31, 2026 |
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Average performing interest-bearing investments, at cost |
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$ |
210.3 |
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$ |
240.8 |
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Weighted-average performing income yield - interest-bearing investments(2) |
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12.1 |
% |
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12.5 |
% |
Weighted-average realized yield - interest-bearing investments(3) |
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10.1 |
% |
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10.9 |
% |
(1) The weighted-average yield of our investments is not the same as a return on investment for our stockholders, but rather relates to our investment portfolio and is calculated before the payment of all of our fees and expenses.
(2) Performing income yield is calculated as (a) the actual amount earned on performing interest-bearing investments, including interest, prepayment fees and amortization of net loan fees, divided by (b) the weighted-average of total performing interest-bearing investments at amortized cost.
(3) Realized yield is calculated as (a) the actual amount earned on interest-bearing investments, including interest, prepayment fees and amortization of net loan fees, divided by (b) the weighted-average of total interest-bearing investments at amortized cost, in each case, including debt investments on non-accrual status and non-performing structured finance securities.
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Three Months Ended |
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Portfolio Purchase Activity |
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June 30, 2026 |
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March 31, 2026 |
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Debt and equity investments |
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$ |
2.1 |
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$ |
2.1 |
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Structured finance securities |
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— |
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— |
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Total investment purchases and originations |
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$ |
2.1 |
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$ |
2.1 |
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As of June 30, 2026, based on fair value, our investment portfolio was comprised of the following:
During the quarter ended June 30, 2026, loans to a portfolio company were placed on non-accrual status with an aggregate amortized cost and fair value of $12.5 million and $10.4 million, respectively, representing 3.5% of the total portfolio, at fair value. As of June 30, 2026, our loan portfolio had non-accrual loans with an aggregate fair value of $21.4 million, or 7.2% of our total investments at fair value.
OUTSTANDING DEBT
Our total outstanding debt decreased from $202.5 million at March 31, 2026 to $185.8 million at June 30, 2026, due to net paydowns on our revolving credit facilities.
As of June 30, 2026, 100% of our outstanding debt matures in more than two years and 80% of our outstanding debt is unsecured. As of June 30, 2026, our regulatory asset coverage ratio was 161%, which exceeded the minimum asset coverage requirement of 150% under the Investment Company Act of 1940, as amended.
During the three months ended June 30, 2026 and March 31, 2026, the average dollar borrowings and weighted-average effective interest rate for our debt were as follows ($ in millions):
Three Months Ended |
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Average Dollar Borrowings |
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Weighted-Average Effective Interest Rate |
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June 30, 2026 |
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$ |
202.0 |
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7.41 |
% |
March 31, 2026 |
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215.0 |
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7.34 |
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RESULTS OF OPERATIONS |
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Three Months Ended |
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(in thousands) |
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June 30, 2026 |
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March 31, 2026 |
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Total investment income |
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$ |
6,837 |
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$ |
8,904 |
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Expenses: |
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Interest expense |
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3,734 |
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3,889 |
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Base management and incentive fees, net of base management fee waiver |
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1,137 |
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1,623 |
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Professional, administration and other expenses |
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958 |
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928 |
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Total expenses, net |
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5,829 |
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6,440 |
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Net investment income |
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1,008 |
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2,464 |
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Net gain (loss) on investments |
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4,559 |
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(13,922 |
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Loss on extinguishment of debt |
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— |
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(130 |
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Net increase (decrease) in net assets resulting from operations |
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$ |
5,567 |
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$ |
(11,588 |
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Investment Income
For the quarter ended June 30, 2026, total investment income decreased to $6.8 million from $8.9 million in the prior quarter, primarily due to decreases in interest income of $1.2 million and non-recurring dividend income of $0.9 million.
Expenses
For the quarter ended June 30, 2026, total expenses, net of the base management fee waiver, decreased by $0.6 million to $5.8 million compared to the prior quarter, primarily due to decreases in incentive fees of $0.4 million and interest expense of $0.2 million.
Net Gain (Loss) on Investments
For the quarter ended June 30, 2026, we recognized a net gain on investments of $4.6 million. The net gain on investments of $4.6 million was primarily attributable to unrealized appreciation of $14.1 million on our common equity investment in Pfanstiehl Holdings, Inc., partially offset by net realized and unrealized losses on our CLO equity structured finance securities of $6.5 million.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2026, we had $4.0 million in cash and cash equivalents, which includes $2.9 million held by OFSCC-FS, LLC (“OFSCC-FS”), an indirect wholly owned subsidiary. Our use of cash held by OFSCC-FS is restricted by contractual conditions of our credit facility with Natixis, New York Branch, including limitations on the amount of cash OFSCC-FS can distribute to us.
As of June 30, 2026, we had an unused commitment of $15.0 million under our senior secured revolving credit facility with Banc of California and an unused commitment of $43.2 million under our credit facility with Natixis, New York Branch, each of which is subject to the terms of the borrowing base and other covenants.
As of June 30, 2026, we had outstanding commitments to fund various undrawn revolvers and other credit facilities of portfolio companies totaling $6.0 million.
CONFERENCE CALL
OFS Capital will host a conference call to discuss these results on Friday, July 31, 2026, at 10:00 AM Eastern Time. Interested parties may participate in the call via the following:
INTERNET: Go to www.ofscapital.com at least 15 minutes prior to the start time of the call to register, download, and install any necessary audio software. A replay will be available for 90 days on OFS Capital’s website at www.ofscapital.com.
TELEPHONE: Dial (833) 816-1364 (Domestic) or (412) 317-5699 (International) approximately 15 minutes prior to the call. A telephone replay of the conference call will be available through August 14, 2026 and may be accessed by calling (855) 669-9658 (Domestic) or (412) 317-0088 (International) and utilizing conference ID #7827862.
For more detailed discussion of the financial and other information included in this press release, please refer to OFS Capital’s Form 10-Q for the quarter ended June 30, 2026.
OFS Capital Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities (Unaudited)
(Dollar amounts in thousands, except per share data)
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June 30, |
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December 31, |
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2026 |
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2025 |
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Assets |
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Total investments, at fair value (amortized cost of $275,837 and $328,400, respectively) |
$ |
297,756 |
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$ |
342,015 |
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Cash and cash equivalents |
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3,982 |
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3,359 |
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Interest and dividends receivable |
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525 |
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719 |
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Receivable for investments sold |
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280 |
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— |
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Prepaid expenses and other assets |
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1,921 |
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613 |
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Total assets |
$ |
304,464 |
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$ |
346,706 |
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Liabilities |
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Revolving lines of credit |
$ |
36,800 |
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$ |
55,450 |
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Unsecured Notes (net of deferred debt issuance costs of $2,308 and $2,812, respectively) |
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146,692 |
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162,188 |
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Interest payable |
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2,459 |
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2,269 |
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Distribution payable |
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2,277 |
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— |
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Payable to adviser and affiliates |
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1,692 |
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2,264 |
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Other liabilities |
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1,932 |
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1,347 |
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Total liabilities |
$ |
191,852 |
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$ |
223,518 |
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Net assets |
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Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively |
$ |
— |
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$ |
— |
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Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,398,078 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively |
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134 |
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134 |
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Paid-in capital in excess of par |
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174,195 |
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174,195 |
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Total accumulated losses |
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(61,717 |
) |
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(51,141 |
) |
Total net assets |
$ |
112,612 |
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$ |
123,188 |
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Total liabilities and net assets |
$ |
304,464 |
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$ |
346,706 |
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Number of common shares outstanding |
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13,398,078 |
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13,398,078 |
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Net asset value per share |
$ |
8.41 |
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$ |
9.19 |
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OFS Capital Corporation and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollar amounts in thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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June 30, 2026 |
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March 31, 2026 |
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June 30, 2026 |
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June 30, 2025 |
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Investment income |
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Interest income |
$ |
6,389 |
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$ |
7,586 |
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$ |
13,975 |
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$ |
19,987 |
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Dividend income |
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434 |
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1,297 |
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1,731 |
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605 |
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Fee income |
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14 |
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21 |
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35 |
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179 |
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Total investment income |
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6,837 |
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8,904 |
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15,741 |
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20,771 |
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Expenses |
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Interest expense |
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3,734 |
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3,889 |
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7,623 |
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7,700 |
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Base management fee |
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1,340 |
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1,435 |
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2,775 |
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3,028 |
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Income Incentive Fee |
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— |
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408 |
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408 |
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1,151 |
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Professional fees |
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345 |
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363 |
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|
708 |
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|
839 |
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Administration fee |
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367 |
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326 |
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|
693 |
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|
776 |
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Other expenses |
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246 |
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239 |
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485 |
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529 |
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Total expenses before base management fee waiver |
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6,032 |
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6,660 |
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12,692 |
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14,023 |
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Base management fee waiver |
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(203 |
) |
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(220 |
) |
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(423 |
) |
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— |
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Total expenses, net of base management fee waiver |
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5,829 |
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6,440 |
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12,269 |
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|
14,023 |
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Net investment income |
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1,008 |
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2,464 |
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|
3,472 |
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|
6,748 |
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Net realized and unrealized gain (loss) on investments |
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Net realized loss, net of taxes |
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(6,018 |
) |
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(11,301 |
) |
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(17,319 |
) |
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|
(6,778 |
) |
Net unrealized appreciation (depreciation), net of taxes |
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10,577 |
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(2,621 |
) |
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|
7,956 |
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(16,888 |
) |
Net gain (loss) on investments |
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4,559 |
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(13,922 |
) |
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(9,363 |
) |
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(23,666 |
) |
Loss on extinguishment of debt |
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— |
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(130 |
) |
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(130 |
) |
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— |
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Net increase (decrease) in net assets resulting from operations |
$ |
5,567 |
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|
$ |
(11,588 |
) |
|
$ |
(6,021 |
) |
|
$ |
(16,918 |
) |
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Net investment income per common share – basic and diluted |
$ |
0.08 |
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$ |
0.18 |
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$ |
0.26 |
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$ |
0.50 |
|
Earnings (loss) per common share – basic and diluted |
$ |
0.42 |
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|
$ |
(0.86 |
) |
|
$ |
(0.44 |
) |
|
$ |
(1.26 |
) |
Distributions declared per common share |
$ |
0.17 |
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|
$ |
0.17 |
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$ |
0.34 |
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|
$ |
0.68 |
|
Basic and diluted weighted-average common shares outstanding |
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13,398,078 |
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|
|
13,398,078 |
|
|
|
13,398,078 |
|
|
|
13,398,078 |
|
ABOUT OFS CAPITAL
The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. The Company’s investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. The Company invests primarily in privately held middle-market companies in the United States, including lower-middle-market companies, targeting investments of $3 million to $20 million in companies with annual EBITDA between $5 million and $50 million. The Company offers flexible solutions through a variety of asset classes including senior secured loans, which includes first-lien, second-lien and unitranche loans, as well as subordinated loans and, to a lesser extent, warrants and other equity securities. The Company’s investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 1940(4), as amended, and headquartered in Chicago, Illinois, with additional offices in New York and Los Angeles.
FORWARD-LOOKING STATEMENTS
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: OFS Capital’s results of operations, including net investment income, net asset value and net investment gains and losses and the factors that may affect such results; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in OFS Capital’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by OFS Capital from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. OFS Capital is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
INVESTOR RELATIONS CONTACT:
Steve Altebrando
847-734-2084
investorrelations@ofscapital.com
(4) Registration does not imply a certain level of skill or training
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