Stellus Capital Investment Earnings Call Transcripts
Fiscal Year 2026
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Q3 GAAP NII was $0.25/share and NAV fell 3%, mainly on company-specific credit marks; repurchases added ~$0.08/share to NAV. Management expects the $0.25 dividend to remain covered and sees growth potential through SBIC III, while elevated non-accruals remain a focus.
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Second quarter results showed $0.26 per share net investment income and a 2% NAV increase, with portfolio quality slightly below plan but improving. The advisor's integration with Ridgepost and a new SBIC license are expected to drive future growth and origination opportunities.
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Q1 2026 saw stable net investment income, a slight decrease in NAV, and elevated non-accruals, though asset quality remains solid. Portfolio yield spreads are stable, and a $20 million share buyback was announced. Dividend levels are expected to decrease to align with earnings.
Fiscal Year 2025
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Fourth quarter 2025 results showed stable asset quality, $0.29 per share net investment income, and a $20 million share repurchase program. The advisor's acquisition by Ridgepost Capital is expected to boost deal flow, while leverage targets and dividend levels remain steady.
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Q3 saw net investment income of $0.32 per share and portfolio growth to over $1 billion across 115 companies. Dividend of $0.40 per share declared for Q4, with strong asset quality and competitive market conditions persisting.
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Second quarter 2025 net investment income was $0.34 per share, with a stable $1 billion portfolio and improved asset quality. Dividend remains at $0.40 per share, and strong M&A activity is expected to drive equity realizations and portfolio growth in the second half.
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Q1 2025 saw stable portfolio growth, $0.35 GAAP NII per share, and a $0.21 NAV decline due to loan write-downs. Dividend remains at $0.40 per share, with NII below this level but potential equity gains expected to offset the gap.
Fiscal Year 2024
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Fourth quarter net investment income was $0.35 per share, with portfolio value rising to $953.5 million and realized equity gains of $5.5 million. Portfolio surpassed $1 billion in early 2025, and the dividend is set at $0.40 per share, supported by $45 million in spillover income.
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Q3 2024 saw stable asset quality, $0.40 core net investment income per share, and a $0.19 NAV increase, mainly from one equity investment. Portfolio yield declined due to lower SOFR, but Q4 growth and realized gains are expected, with a $0.40 dividend declared.
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Net investment income exceeded dividends in Q2 2024, with portfolio growth and strong equity issuance. Five loans remain on non-accrual, but asset quality is stable and dividend guidance is maintained at $0.40 per share per quarter.