CEO Reports Q1 Net Investment Income of 26 Cents per Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 11 2026
0mins
CEO Robert Ladd stated, "I am pleased to report solid operating results for the quarter ended March 31, 2026, in which we earned U.S. GAAP net investment income of 26c per share, core net investment income of 27c per share and net realized income of 29c per share. During the quarter, we funded $28M of investments and received $42M of repayments, resulting in a total portfolio of $990M at fair value. I'm also pleased to report that our investors have received a total of $339M in distributions, equivalent to $18.49 per share, since we began operations."
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Analyst Views on SCM
Wall Street analysts forecast SCM stock price to rise
1 Analyst Rating
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1 Hold
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Hold
Current: 9.190
Low
13.00
Averages
13.00
High
13.00
Current: 9.190
Low
13.00
Averages
13.00
High
13.00
About SCM
Stellus Capital Investment Corporation is an externally managed, closed-end, non-diversified management investment company that operates as a business development company. Its investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in middle-market companies. It seeks to achieve its investment objective by originating and investing primarily in private United States middle-market companies (typically those with $5.0 million to $50.0 million of earnings before interest, taxes, depreciation and amortization (EBITDA)) through first lien, second lien, unitranche and unsecured debt financing, with corresponding equity co-investments. It focuses on a variety of industry sectors, including business services, general industrial, government services, healthcare, software, specialty finance and others. Its investment adviser is Stellus Capital Management, LLC.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Portfolio Expansion: SCF IV has already invested in 44 portfolio companies, continuing its focus on private credit opportunities across diverse industries in the U.S. and Canada, indicating the firm's investment capability and market adaptability.
- Institutional Investor Support: The fund received commitments from new and existing institutional and high-net-worth investors globally, including public and private pension plans and insurance companies, reflecting market confidence and recognition of its investment strategy.
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See More
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See More
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See More
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- Replay Information: Approximately two hours after the call concludes, investors can listen to a replay by dialing 877-481-4010 and entering passcode 54017, with the replay available until May 20, 2026, ensuring that those unable to participate live can access the information.
- Investment Objective Overview: As an externally managed, non-diversified investment management company, Stellus Capital focuses on investing in middle-market companies through various debt financing methods, aiming to maximize total returns for shareholders in the form of current income and capital appreciation, reflecting its strategic positioning in the market.
See More
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- Fundraising Achievement: Stellus Capital Management successfully closed Stellus Credit Fund IV with approximately $1.5 billion in investable capital, demonstrating its strong appeal in the lower middle market direct lending sector.
- Portfolio Expansion: SCF IV has already invested in 44 portfolio companies, continuing to focus on private credit opportunities across diverse industries in the U.S. and Canada, indicating the firm's adaptability and investment capability.
- Global Investor Support: The fund received commitments from new and existing institutional and high-net-worth investors globally, including leading public and private pension plans and insurance companies, reflecting strong market confidence in its investment strategy.
- Acquisition Outlook: Stellus recently announced a definitive agreement to be acquired by Ridgepost Capital, expected to close in mid-2026, with the management team retaining control of daily operations to ensure continuity in investment decisions.
See More
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- Fundraising Achievement: Stellus Capital Management announced the successful raising of approximately $1.5 billion for its Stellus Credit Fund IV, demonstrating strong appeal in the lower middle market direct lending sector, which is expected to further enhance its market position.
- Portfolio Expansion: SCF IV has already invested in 44 portfolio companies, continuing its focus on private credit opportunities across diverse industries in the U.S. and Canada, indicating the firm's investment capability and market adaptability.
- Institutional Investor Support: The fund received commitments from new and existing institutional and high-net-worth investors globally, including public and private pension plans and insurance companies, reflecting market confidence and recognition of its investment strategy.
- Acquisition Outlook: Stellus recently announced its acquisition by Ridgepost Capital, expected to close in mid-2026, allowing Stellus to maintain control under its current management team for daily operations and investment decisions, ensuring continuity in its investment strategy.
See More
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- Financial Performance Overview: Stellus Capital reported a GAAP net investment income of $0.26 per share and core net investment income of $0.27 per share for Q1 2026, despite a $0.28 decrease in net asset value, indicating pressure on the investment portfolio that could impact future earnings potential.
- Portfolio Quality: As of the end of the quarter, Stellus's investment portfolio had a fair value of $990 million across 116 portfolio companies, with 6 loans on nonaccrual status, comprising 9.2% of total cost, suggesting a decline in asset quality that may affect future dividend policies.
- Buyback Program and Price Discount: The company announced a stock repurchase program of up to $20 million, reflecting a current share price approximately 25% below net asset value, aimed at enhancing shareholder value and addressing market volatility.
- Future Outlook and Risks: Management expects future dividends to approximate net investment income plus realized gains, potentially lower than the current $0.34 level, indicating concerns over dividend sustainability while emphasizing the need to resolve nonaccrual loans to improve financial health.
See More
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- Portfolio Scale: The company funded $28 million in investments while receiving $42 million in repayments, resulting in a total portfolio value of $990 million, showcasing its flexibility in capital allocation and ability to seize market opportunities.
- Consistent Distributions: Since its inception, investors have received a total of $339 million in distributions, equivalent to $18.49 per share, reflecting the company's ongoing commitment to shareholder returns and enhancing investor confidence.
- Net Asset Value Changes: As of March 31, 2026, the company's net asset value per share stood at $12.54, down from $12.82 on December 31, 2025, primarily due to unrealized depreciation in investments, which may influence future investor decisions.
See More
Stellus Capital Investment Corporation to Release Q1 Financial Results
- Earnings Release Schedule: Stellus Capital Investment Corporation will release its Q1 financial results for 2026 on May 11, 2026, after market close, providing investors with updated financial performance data to assess the company's operational status.
- Conference Call Details: A conference call will be held on May 12, 2026, at 10:00 AM Central Time, led by CEO Robert T. Ladd and CFO W. Todd Huskinson, aimed at discussing the financial results in depth and addressing investor inquiries.
- Replay Information: A replay of the conference call will be available approximately two hours after its conclusion by dialing 877-481-4010 and entering passcode 54017, accessible until May 20, 2026, ensuring that investors who missed the live event can still obtain key information.
- Investment Objective Overview: Stellus Capital Investment Corporation focuses on investing in middle-market companies through various debt financing methods, aiming to maximize total returns for shareholders, reflecting its strategic positioning and investment management capabilities in the private market.
See More
Stellus Capital Investment Corporation to Release Q1 Financial Results
- Earnings Release Schedule: Stellus Capital Investment Corporation will release its financial results for the first quarter ended March 31, 2026, after the market closes on May 11, 2026, providing investors with updated financial performance data.
- Conference Call Details: The company will host a conference call on May 12, 2026, at 10:00 AM Central Time, led by CEO Robert T. Ladd and CFO W. Todd Huskinson, aimed at discussing the financial results and future outlook in depth.
- Replay Information: Approximately two hours after the call concludes, investors can listen to a replay by dialing 877-481-4010 and entering passcode 54017, with the replay available until May 20, 2026, ensuring that those unable to participate live can access the information.
- Investment Objective Overview: As an externally managed, non-diversified investment management company, Stellus Capital focuses on investing in middle-market companies through various debt financing methods, aiming to maximize total returns for shareholders in the form of current income and capital appreciation, reflecting its strategic positioning in the market.
See More
