Oxford Square Capital Corp. 7.75% Notes due 2030 (OXSQH)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

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

As a value investor, I start with the business. Oxford Square is a business development company lending to and investing in technology-related firms. That is a competitive field with no durable moat. The numbers tell a story of instability. In fiscal 2023 it earned $17.2M; in fiscal 2024, $5.9M; in fiscal 2025, it lost $18.7M. In fiscal Q1 2026, the quarter ended March 31, 2026, it lost $25.5M, then in fiscal Q2 2026, the quarter ended June 30, 2026, it earned $4.0M. That is not steady compounding; it is a turnaround bet. FairStock's calculated ROE is -0.87%, ROCE 7.08%, and debt-to-equity 0.72, so returns are weak and leverage is meaningful. The P/B of 12.04 is a FairStock calculation and, if meaningful, offers no asset discount. The FairStock Score is 33/100, and the Lynch category is TURNAROUND because of a loss in the latest year after earlier profits. Now the note: OXSQH is a 7.75% note due 2030. At $24.80 on 2026-10-13, it sits near the low of its 52-week range of $24.61-$28.24. For a credit investor, the coupon is attractive if paid, but the margin of safety depends on the underlying portfolio. Graham would ask: is the coupon sufficient compensation for credit risk? Given the losses and high leverage, I am not convinced. I would want evidence of sustained earnings and stable credit before trusting the note. The price is not expensive in absolute terms, but the business quality is suspect.

In plain English: Oxford Square Capital Corp. invests in loans and shares of technology-related businesses. Its latest full-year results show a loss, and its overall financial picture looks weak. The 7.75% note due 2030 trades near its lowest price of the past year, so the price looks less demanding, but the underlying business does not look strong.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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