OFS Capital ( (OFS) ) has released its Q1 earnings. Here is a breakdown of the information OFS Capital presented to its investors.
OFS Capital Corporation is an externally managed, closed-end, non-diversified management investment company, primarily investing in privately held middle-market companies in the United States through debt and equity investments. In its first quarter of 2025, OFS Capital reported a decrease in net investment income to $0.26 per share from $0.30 in the previous quarter, alongside a net loss on investments of $0.80 per share. The company’s net asset value per share also saw a decline from $12.85 to $11.97.
Key financial metrics for the quarter included a decrease in total investment income to $10.3 million, primarily due to lower interest and dividend income, and a reduction in expenses to $6.8 million, driven by a decrease in incentive fees. The investment portfolio’s weighted-average performing income yield decreased to 13.4% from 13.8%, influenced by a reduction in the U.S. Federal Reserve’s target federal funds rate.
Despite these challenges, OFS Capital maintained a stable distribution of $0.34 per share for the second quarter of 2025. The company’s portfolio remained robust, with 90% of its loan portfolio consisting of floating rate loans and no new loans placed on non-accrual status during the quarter.
Looking ahead, OFS Capital remains committed to its investment strategy, focusing on generating current income and capital appreciation through its diversified portfolio. The management continues to navigate the challenging interest rate environment while seeking opportunities to enhance shareholder value.