Oxford Lane Capital's Q2 Earnings Miss Expectations Amid Decline in NAV and Expenses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Source: SeekingAlpha
Earnings Report: Oxford Lane Capital reported fiscal Q2 2026 earnings with a core net investment income per share of $1.24, missing the $1.30 consensus, despite an increase from $0.24 in Q1. Total investment income was $128.3M, below the expected $138.0M but up from $124.0M in the previous quarter.
Net Asset Value and Expenses: The net asset value per share decreased to $19.19 from $20.60 at the end of Q1, while total expenses for Q2 were approximately $47.0M, down from $49.0M in Q1.
Investment Activity: During Q2, the fund invested about $145.2M and received approximately $173.5M from sales and repayments of collateralized loan obligation investments, with a weighted average yield of 17.4% on CLO debt investments.
Share Buyback and Dividends: OXLC repurchased 1.2M shares for about $20.5M and issued around 700K common shares through an at-the-market offering, while declaring a dividend of $0.40.
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Analyst Views on OXLC
Wall Street analysts forecast OXLC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OXLC is 20.00 USD with a low forecast of 20.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 14.260
Low
20.00
Averages
20.00
High
20.00
Current: 14.260
Low
20.00
Averages
20.00
High
20.00
About OXLC
Oxford Lane Capital Corp. (the Fund) is a closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk-adjusted total return. The Fund seeks to achieve its investment objective by investing in structured finance investments, specifically the equity and junior debt tranches of collateralized loan obligation (CLO) vehicles, which are collateralized primarily by a diverse portfolio of senior secured loans made to companies whose debt is unrated or is rated below investment grade (the Senior Loans) and, to a limited extent, subordinated and/or unsecured loans and bonds (CLO Assets). Below investment grade securities, such as the CLO securities in which the Fund primarily intends to invest, are often referred to as junk. The Fund’s investment activities are managed by Oxford Lane Management, LLC (Oxford Lane Management), which is its investment adviser.
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.
Oxford Lane Capital Reports Q3 Financial Results
- Non-GAAP NII: Oxford Lane Capital reported a non-GAAP net investment income of $1.12 for Q3 2025, indicating challenges in income management that could affect investor confidence moving forward.
- Investment Income Decline: Total investment income reached $117.8 million, reflecting a decrease of approximately $10.5 million from the quarter ended September 30, 2025, highlighting the negative impact of changing market conditions on company revenues, which may lead to future cash flow pressures.
- Net Asset Value Changes: As of December 31, 2025, the net asset value per share stood at $15.51, a significant drop from $19.19 on September 30, 2025, indicating a decline in asset value that could affect shareholder return expectations.
- GAAP NII: The GAAP net investment income was approximately $71.8 million, or $0.74 per share, demonstrating the company's efforts in financial transparency, yet ongoing profitability remains a concern.
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Oxford Lane Capital Shares Drop 13% After Dividend Cut
- Dividend Reduction: Oxford Lane Capital announced a cut in its monthly dividend from $0.40 to $0.20 for April, May, and June, resulting in a 13% drop in stock price during Friday morning trading, indicating market concerns over future cash flows.
- Declining Investment Income: The company's Q3 earnings report revealed a core net investment income per share of $1.12, down from $1.24 in Q2, reflecting challenges in fixed-income securities investments that may impact future dividend capabilities.
- Net Asset Value Decline: As of December 31, 2025, the net asset value per share dropped to $15.51 from $19.19 on September 30, indicating significant losses amid market volatility, which could undermine investor confidence.
- Investment Activity Update: During Q3, Oxford Lane Capital made approximately $97.2 million in new investments and received $85.5 million from sales and repayments of its collateralized loan obligation investments, demonstrating the company's proactive approach to seeking market opportunities despite a decline in total investment income to $117.8 million.
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