Stellus Capital (NYSE: SCM) lifts Q2 NAV and secures new SBA funding capacity
Rhea-AI Filing Summary
Stellus Capital Investment Corporation reported preliminary second-quarter 2026 results, including estimated U.S. GAAP net investment income of $0.25–$0.27 per share and net asset value of $12.76–$12.84 per share as of June 30, 2026. NAV per share rose $0.22–$0.30, or 1.8%–2.4%, from $12.54 as of March 31, 2026, driven mainly by net fair value appreciation and the accretive impact of equity repurchases, partly offset by dividends exceeding NII per share. The company estimates it generated an annualized return on equity of more than 17% for the quarter.
During the quarter, Stellus funded approximately $18 million of investments and received about $49 million of repayments, ending with a portfolio of $965–$975 million at fair value. Investments on non-accrual status comprised 5.4% of the portfolio at fair value and 8.5% at cost, with one portfolio company returning to accrual status and no new non-accrual additions.
Stellus received a U.S. Small Business Administration license for its third SBIC, allowing contribution of $125 million of equity and borrowings of up to $250 million in SBA‑guaranteed debentures, within a $475 million family-of-funds limit. The company repurchased 274,343 shares at a weighted average price of $8.88, for about $2.4 million, leaving approximately $17.6 million available under its $20.0 million program, expected to remain in effect until the earlier of March 2, 2027 or full utilization. Full second-quarter results are expected on August 10, 2026, with a conference call on August 11, 2026.
Positive
- The company obtained an SBA license for its third SBIC, enabling up to $125 million of equity contributions and $250 million of SBA‑guaranteed debentures within a $475 million family-of-funds limit, adding sizable low-cost growth capital capacity.
Negative
- None.
Filing Explained
The external manager was acquired June 22, while the quarter figures remain preliminary and may change in the June 30 Form 10-Q.
The company discloses that Stellus Capital Management, LLC, its external manager, was acquired by Ridgepost Capital, LLC on
The quarter information remains preliminary: customary closing procedures, portfolio fair-value determinations, and third-party review are unfinished, and the company says reported figures could differ materially.
The specified resolution point is the company’s unaudited quarterly report on Form 10-Q for the quarter ended
8-K Event Classification
Key Figures
Key Terms
net investment income financial
net asset value financial
non-accrual status financial
SBIC financial
business development company regulatory
Earnings Snapshot
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FAQ
What preliminary Q2 2026 net investment income did Stellus Capital (SCM) report?
What is Stellus Capital’s estimated return on equity for Q2 2026?
What are Stellus Capital’s Q2 2026 portfolio size and non-accrual levels?
What SBA license did Stellus Capital (SCM) receive in Q2 2026?
When will Stellus Capital (SCM) release full Q2 2026 results and hold its call?
UNITED STATES
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Item 2.02 Results of Operations and Financial Condition.
On July 29, 2026, the Stellus Capital Investment Corporation (the “Company”) issued a press release announcing certain preliminary estimates of its financial condition and results of operations for its fiscal quarter ended June 30, 2026, as well as other information. A copy of such press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information disclosed herein, including Exhibit 99.1 hereto, shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall be deemed incorporated by reference into the Company’s filings made under the Securities Act of 1933, as amended; provided, however, that information contained on the Company’s website referred to in the press release attached hereto as Exhibit 99.1 is not incorporated by reference herein or in Exhibit 99.1 and is not a part of this Form 8-K or Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit Number | Description | |
| 99.1 | Press release, dated July 29, 2026 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: July 29, 2026 | Stellus Capital Investment Corporation | |
| By: | /s/ W. Todd Huskinson | |
| Name: W. Todd Huskinson | ||
| Title: Chief Financial Officer | ||
Exhibit 99.1
Stellus Capital Investment Corporation Reports Preliminary Results for its Second Fiscal Quarter Ended June 30, 2026
Stellus Capital Investment Corporation Schedules Second Quarter 2026 Financial Results Conference Call
Houston, Texas, July 29, 2026 (PR Newswire) – Stellus Capital Investment Corporation (NYSE:SCM) (“Stellus”, “we”, or the “Company”) today announced preliminary financial results for its second quarter ended June 30, 2026.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, “I am pleased to report operating results for the quarter ended June 30, 2026, including a preliminary estimate of U.S. GAAP net investment income of between $0.25 and $0.27 per share. During the quarter, we funded approximately $18 million of investments and received approximately $49 million of repayments, resulting in a total portfolio between $965 million and $975 million at fair value.”
Preliminary Estimates of Second Quarter 2026 Results
The Company’s preliminary estimate of second quarter 2026 net investment income (“NII”) is $0.25 to $0.27 per share. The Company’s preliminary estimate of net asset value (“NAV”) per share as of June 30, 2026, is $12.76 to $12.84, representing an increase of $0.22 to $0.30 per share, or 1.8% to 2.4%, from the NAV per share of $12.54 as of March 31, 2026. The estimated NAV per share increase is primarily due to the net fair value appreciation on the investment portfolio and the accretive impact of equity repurchases, partially offset by dividends per share paid in the second quarter in excess of NII per share. As a result, the Company estimates that it generated an annualized return on equity of more than 17% for the second quarter of 2026. The Company estimates that investments on non-accrual status comprised 5.4% of the total investment portfolio at fair value and 8.5% at cost as of June 30, 2026. During the quarter, loans to one portfolio company were returned to accrual status, and there were no additions to non-accrual status.
Notable Events in Second Quarter 2026
On July 14, 2026, we received a license from the U.S. Small Business Administration (“SBA”) for our third SBIC which allows us to contribute $125 million of equity and draw up to $250 million of SBA-guaranteed debentures, subject to the increased family of funds limit of $475 million across all of our SBIC subsidiaries and applicable SBA regulations and policies. Our partnership with the SBA is an important part of our capital structure and provides long-term, low-cost growth capital for our business.
Pursuant to the Company's share repurchase program approved by its Board of Directors, during the second quarter of 2026, the Company repurchased 274,343 shares of its common stock at a weighted average price of $8.88 per share, representing an aggregate investment of approximately $2.4 million. As of June 30, 2026, approximately $17.6 million remained available for repurchases under the Company's authorized $20.0 million share repurchase program. The Company currently expects the repurchase program to remain in effect until the earlier of March 2, 2027 or the repurchase of $20.0 million of the Company's outstanding common stock.
Second Quarter 2026 Earnings Release and Conference Call Schedule
The Company will release its financial results for the second quarter ended June 30, 2026 on Monday, August 10, 2026, after the close of the stock market.
Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, August 11, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.
Conference Call Details
Via Phone: Dial 888-506-0062 (domestic). Use passcode 218557. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, August 25, 2026 by dialing 877-481-4010 and entering passcode 54324.
Via Live Webcast: Connect via the Public Company (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and mezzanine debt financing, and corresponding equity investments. The Company’s investment activities are managed by its investment adviser, Stellus Capital Management, LLC. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the Stellus Capital Investment Corporation link. Stellus Capital Management, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC’s parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.’s periodic filings with the Securities and Exchange Commission for additional information.
FORWARD-LOOKING STATEMENTS
The Company cautions that statements in this press release which are forward-looking and provide other than historical information, including but not limited to the preliminary estimates of second quarter 2026 financial information and results, are based on current conditions and information available to the Company as of the date hereof. Although its management believes that the expectations reflected in those forward-looking statements are reasonable, the Company can give no assurance that those expectations will prove to be correct. Those forward-looking statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including, without limitation, such factors described under the captions “Cautionary Statement Concerning Forward-Looking Statements” and “Risk Factors” included in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) (www.sec.gov).
The Company undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations. The preliminary estimates of second quarter 2026 financial information and results furnished above are based on the Company’s management’s preliminary determinations and current expectations, and such information is inherently uncertain. The preliminary estimates provided herein have been prepared by, and are the responsibility of, management and are subject to completion of the Company’s customary quarter-end closing and review procedures and third-party review, including the determination of the fair value of the Company’s portfolio investments. As a result, actual results could differ materially from the current preliminary estimates based on adjustments made during the Company’s quarter-end closing and review procedures and third-party review, and the Company’s reported information in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 may differ from this information, and any such differences may be material. In addition, the information furnished above does not include all of the information regarding the Company’s financial condition and results of operations for the quarter ended June 30, 2026 that may be important to readers. As a result, readers are cautioned not to place undue reliance on the information furnished in this press release and should view this information in the context of the Company’s full second quarter 2026 results when such results are disclosed by the Company in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. The information furnished in this press release is based on the Company’s management’s current expectations that involve substantial risks and uncertainties that could cause actual results to differ materially from the results expressed in, or implied by, such information.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com
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