Oxford Square Capital Corp. Common Stock (OXSQ)

FairStock Score: 51/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Oxford Square as I would any closed-end BDC: first ask what it owns and whether it earns more than it pays out. It is a non-diversified management investment company that lends to and invests in technology-related companies through secured, unsecured, subordinated debt, preferred and common stock. That niche can be lucrative, but it offers no obvious durable moat; credit selection and access to capital matter more than brand or pricing power. The financial record is uneven. In fiscal 2025, the year ended 2025-12-31, net income was -$18.7M and diluted EPS was $0.30. That followed net income of $5.9M in fiscal 2024 and $17.2M in fiscal 2023. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$25.5M, though fiscal Q2 2026, ended 2026-06-30, showed net income of $4.0M. Trailing free cash flow was -$46.5M, a FairStock-calculated FCF yield of -32.3%. With debt/equity at 1.13, Altman Z-score of -1.45 and Piotroski 4/9, the balance sheet deserves caution. At the 2026-10-13 close of $1.34, FairStock calculates P/B at 1.05 and P/E at -3.12; the negative P/E reflects the negative EPS of -$0.43. The 33.20% dividend yield is eye-catching, but losses and negative FCF make coverage questionable. FairStock's Lynch category is TURNAROUND - loss in latest year after earlier profits - and revenue growth was -17.97% with profit growth -8.93%. I would require evidence of sustainable net investment income and stable book value before calling this a bargain. The price is not obviously expensive on assets, but the business quality and cash generation are not yet convincing.

In plain English: Oxford Square is a lender and investor in technology-related companies. It has been losing money lately and its cash flow is negative, so the business looks weak. At $1.34, the price is roughly near the value of its net assets, but it looks expensive given the losses and weak cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer