Stellus Capital Investment Corporation Reports Results for its First Fiscal Quarter Ended March 31, 2026

May 11 2026 21:47 BST

HOUSTON , May 11, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended March 31, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended March 31, 2026, in which we earned U.S. GAAP net investment income of $0.26 per share, core net investment income of $0.27 per share and net realized income of $0.29 per share. During the quarter, we funded $28 million of investments and received $42 million of repayments, resulting in a total portfolio of $990 million at fair value. I'm also pleased to report that our investors have received a total of $339 million in distributions, equivalent to $18.49 per share, since we began operations."

FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)


	Three Months Ended
	March 31, 2026		March 31, 2025
	Amount	Per Share	Amount	Per Share
Net investment income	$7.50	$0.26	$9.79	$0.35
Core net investment income⁽¹⁾	7.86	0.27	10.29	0.37
Net realized gain (loss) on investments	0.75	0.03	(5.97)	(0.21)
Net realized gain (loss) on foreign currency translation	—	—	(0.03)	—
Total realized income⁽²⁾	$8.25	$0.29	$3.79	$0.14
Distributions	(9.84)	(0.34)	(11.09)	(0.40)
Net unrealized change in (depreciation) appreciation on investments	(6.54)	(0.23)	1.20	0.04
Net unrealized change in depreciation on foreign currency translation	(0.05)	—	—	—
Net increase in net assets resulting from operations	$1.66	$0.06	$4.99	$0.18
Weighted average shares outstanding		28,947,254		27,602,612


(1)	Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.
(2)	Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.

PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)


	As of	As of
	March 31, 2026	December 31, 2025
Investments at fair value	$990.0	$1,007.6
Total assets	$1,001.3	$1,041.3
Net assets	$363.0	$371.2
Shares outstanding	28,947,254	28,947,254
Net asset value per share	$12.54	$12.82

	Three Months Ended
	March 31, 2026	March 31, 2025
New investments	$27.7	$55.4
Repayments of investments	(41.7)	(15.0)
Net activity	($14.0)	$40.4

	As of	As of
	March 31, 2026	December 31, 2025
Number of portfolio company investments	116	115
Number of debt investments	100	100

Weighted average yield of debt and other income producing investments ⁽³⁾
Cash	8.1 %	8.5 %
Payment-in-kind ("PIK")	0.6 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	9.0 %	9.3 %

Weighted average yield of total investments⁽⁴⁾
Cash	7.6 %	7.9 %
PIK	0.6 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	8.5 %	8.7 %


(3)	The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.
(4)	The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.

Results of Operations

Investment income for the three months ended March 31, 2026 and 2025 totaled $23.3 million and $25.0 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended March 31, 2026 and 2025 totaled $15.8 million and $16.4 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $4.1 million, income incentive fees totaled $0.1 million and $2.1 million, fees and expenses related to our borrowings totaled $8.9 million and $8.3 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.4 million, income tax totaled $0.4 million and $0.5 million and other expenses totaled $1.4 million and $1.0 million. The Company waived $0.0 million and $1.2 million of income incentive fees due to the total return limitation pursuant to the provisions of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended March 31, 2026 and 2025, respectively, for net operating expenses of $15.8 million and $15.2 million, respectively.

Net investment income was $7.5 million and $9.8 million, or $0.26 and $0.35 per common share based on 28,947,254 and 27,602,612 weighted average common shares outstanding for the three months ended March 31, 2026 and 2025, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended March 31, 2026 and 2025 was $7.9 million and $10.3 million, or $0.27 and $0.37 per share, respectively.

For the three months ended March 31, 2026 and 2025, the Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($6.5) million and $1.2 million, respectively, and the Company had net realized gains (losses) of $0.8 million and ($6.0) million, respectively.

Net increase in net assets resulting from operations totaled $1.7 million and $5.0 million, or $0.06 and $0.18 per common share, based on 28,947,254 and 27,602,612 weighted average common shares outstanding for the three months ended March 31, 2026 and 2025, respectively.

Liquidity and Capital Resources

As of March 31, 2026, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of both March 31, 2026 and December 31, 2025, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million.

As of March 31, 2026 and December 31, 2025, the Company had $241.5 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.

Distributions

For the three months ended March 31, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share, respectively ($9.8 million and $11.1 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.

Recent Portfolio Activity

The Company invested in the following portfolio companies during the three months ended March 31, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	January 2, 2026	Bart & Associates, LLC*	Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry	$	2,000,000	Senior Secured – First Lien
				$	43,413	Equity
New Investment	January 9, 2026	Silver Corporate Holdings LLC	Senior-care focused placement platform	$	7,130,301	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	498,641	Equity
Add-On Investment	January 15, 2026	GRC Java Holdings, LLC*	Specialty coffee platform	$	42,783	Equity
Add-On Investment	January 20, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	380,186	Senior Secured – First Lien
Add-On Investment	January 21, 2026	evolv Holdco, LLC*	Digital transformation consulting firm	$	8,036	Equity
Add-On Investment	February 2, 2026	BI Investors, LLC*	Provider of center-based applied behavioral analysis therapy services	$	5,743	Equity
Add-On Investment	February 3, 2026	Green Topco Holdings, LLC*	Cyber-security focused value-added reseller and associated service provider	$	16,598	Equity
Add-On Investment	February 3, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	628,201	Senior Secured – First Lien
Add-On Investment	February 6, 2026	SP MWM Holdco LLC*	Provider of test and measurement services and equipment	$	194,667	Equity
Add-On Investment	February 18, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
Add-On Investment	February 25, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	1,256,415	Senior Secured – First Lien
Add-On Investment	March 3, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
New Investment	March 3, 2026	Precision Strategies, LLC	Strategic communications and marketing agency	$	6,176,011	Senior Secured – First Lien
				$	100,000	Revolver Commitment
New Investment	March 6, 2026	Synergy Health Partners MSO, LLC	Provider of orthopedic and musculoskeletal care	$	4,000,000	Senior Secured – First Lien
				$	500,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	136,634	Equity
Add-On Investment	March 24, 2026	Eskola LLC*	Provider of commercial re-roofing services	$	101,429	Equity

_________________________

*Existing portfolio company

The Company realized investments in the following portfolio companies during the three months ended March 31, 2026:


Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Gain		Instrument Type
Full Repayment	January 23, 2026	Camp Profiles LLC	Provider of digital marketing services to small and medium-sized businesses	$	12,041,875	$	—	Senior Secured – First Lien
Full Realization				$	969,138	$	719,138	Equity
Full Repayment	January 30, 2026	Luxium Solutions, LLC	Manufacturer and distributor of high-performance advanced materials and assemblies	$	8,169,324	$	—	Senior Secured – First Lien
				$	1,182,247	$	—	Delayed Draw Term Loan
Full Repayment	February 3, 2026	Arctiq, Inc.	Cyber-security focused value-added reseller and associated service provider	$	12,202,671	$	—	Senior Secured – First Lien
				$	399,965	$	—	Delayed Draw Term Loan

Events Subsequent to March 31, 2026

The Company's management has evaluated subsequent events through May 11, 2026. There have been no subsequent events that require recognition or disclosure except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 1, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
New Investment	April 3, 2026	VeloSource Purchaser, LLC	Locum tenens staffing agency	$	200,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	18,605	Equity
Add-On Investment	April 13, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	1,256,415	Senior Secured – First Lien
New Investment	April 13, 2026	Solomon AcquisitionCo, LLC	An innovative process automation and digital systems integrator	$	4,196,557	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	186,807	Equity
New Investment	April 27, 2026	Project Freeze**	Manufacturer of walk-in coolers, freezers, and refrigeration systems	$	4,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	324,074	Equity
Add-On Investment	April 28, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	502,566	Senior Secured – First Lien
Add-On Investment	April 28, 2026	Advanced Barrier Extrusions, LLC*	Manufacturer of flexible packaging	$	330,250	Senior Secured – First Lien

_________________________

*Existing portfolio company
** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the
Company's quarterly report for the quarter ending June 30, 2026.

The Company realized investments in the following portfolio companies subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Loss		Instrument Type
Full Repayment	April 17, 2026	Sales Benchmark Index, LLC	Provider of revenue growth management consulting services for private equity-owned and large enterprise clients	$	11,968,656	$	—	Senior Secured – First Lien
				$	443,820	$	—	Revolver Commitment
Full Realization				$	486,925		(178,805)	Equity
Full Repayment	April 24, 2026	Equine Network, LLC	Provider of equine competitions, content, products, and services	$	9,043,164	$	—	Senior Secured – First Lien
				$	97,900	$	—	Delayed Draw Term Loan Commitment
				$	166,667	$	—	Revolver Commitment
Full Repayment	April 30, 2026	Cerebro Buyer, LLC	Manufacturer of single-use electrodes for medical procedures	$	4,526,683	$	—	Senior Secured – First Lien
				$	376,902	$	—	Delayed Draw Term Loan Commitment

Credit Facility

The outstanding balance under the Credit Facility as of May 11, 2026 was $238.4 million.

Distributions Declared

On April 14, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of April 2026, May 2026, and June 2026 as follows:


	Ex-Dividend	Record	Payment	Amount per
Declared	Date	Date	Date	Share
4/14/2026	4/30/2026	4/30/2026	5/15/2026	$	0.1133
4/14/2026	5/29/2026	5/29/2026	6/15/2026	$	0.1133
4/14/2026	6/30/2026	6/30/2026	7/15/2026	$	0.1133

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, May 12, 2026 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 108816. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, May 20, 2026 by dialing (877) 481-4010 and entering passcode 54017. The replay will also be available on the Company's website.

For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

About Stellus Capital Investment Corporation

The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts

Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

	(unaudited)
	March 31, 2026		December 31, 2025
ASSETS
Controlled investments, at fair value (amortized cost of $34,432,893 and $33,603,521, respectively)	$	12,237,127	$	14,953,132
Non-controlled, affiliated investments, at fair value (amortized cost of $4,878,960 and $4,806,660, respectively)		3,378,350		3,750,674
Non-controlled, non-affiliated investments, at fair value (amortized cost of $976,006,465 and $987,729,505, respectively)		974,379,087		988,919,589
Cash and cash equivalents		3,376,525		25,050,156
Receivable for sales and repayments of investments		492,000		581,509
Interest receivable		6,611,848		6,375,996
Income tax receivable		—		1,385,387
Other receivables		149,189		85,000
Related party receivable		—		20
Deferred offering costs		75,000		—
Prepaid expenses		574,127		150,843
Total Assets	$	1,001,273,253	$	1,041,252,306
LIABILITIES
Notes Payable	$	122,758,915	$	122,671,409
Credit Facility payable		238,276,659		233,167,360
SBA-guaranteed debentures		257,151,049		295,984,063
Dividends payable		3,279,724		3,858,669
Management fees payable		4,392,357		4,442,705
Income incentive fees payable		2,413,077		2,317,429
Interest payable		5,729,215		6,138,076
Related party payable		2,335,513		—
Unearned revenue		539,630		582,007
Administrative services payable		579,529		539,338
Income tax payable		93,492		—
Other accrued expenses and liabilities		728,572		372,294
Total Liabilities	$	638,277,732	$	670,073,350
Commitments and contingencies (Note 7)
Net Assets	$	362,995,521	$	371,178,956
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,947,254 and 28,947,254 shares issued and outstanding, respectively)	$	28,947	$	28,947
Paid-in capital		397,829,793		397,829,793
Total distributable loss		(34,863,219)		(26,679,784)
Net Assets	$	362,995,521	$	371,178,956
Total Liabilities and Net Assets	$	1,001,273,253	$	1,041,252,306
Net Asset Value Per Share	$	12.54	$	12.82

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended
	March 31, 2026		March 31, 2025
INVESTMENT INCOME
From non-controlled, affiliated investments
Interest income	$	45	$	—
Payment-in-kind interest income		72,300		—
From non-controlled, non-affiliated investments
Interest income		20,578,575		20,817,005
Payment-in-kind interest income		1,602,087		3,310,111
Other income		1,039,927		824,542
Total Investment Income	$	23,292,934	$	24,951,658
OPERATING EXPENSES
Management fees	$	4,392,357	$	4,054,726
Valuation fees		166,119		157,889
Administrative services expenses		649,120		449,298
Income incentive fees		106,709		2,136,491
Professional fees		817,727		418,031
Directors' fees		129,250		111,250
Insurance expense		93,056		97,090
Interest expense and other fees		8,851,541		8,263,019
Income tax expense		360,471		499,547
Other general and administrative expenses		239,617		218,351
Total Operating Expenses	$	15,805,967	$	16,405,692
Income incentive fee waiver		(11,061)		(1,242,843)
Total Operating Expenses, net of fee waivers	$	15,794,906	$	15,162,849
Net Investment Income	$	7,498,028	$	9,788,809
Net realized gain (loss) on non-controlled, non-affiliated investments	$	750,410	$	(5,967,221)
Net realized gain (loss) on foreign currency translations		3,664		(29,655)
Net change in unrealized (depreciation) appreciation on controlled investments		(3,545,377)		55,276
Net change in unrealized depreciation on non-controlled, affiliated investments		(444,624)		—
Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated investments		(2,558,345)		1,138,017
Net change in unrealized (depreciation) appreciation on foreign currency translations		(48,020)		8,319
Net Increase in Net Assets Resulting from Operations	$	1,655,736	$	4,993,545
Net Investment Income Per Share—basic and diluted	$	0.26	$	0.35
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.06	$	0.18
Weighted Average Shares of Common Stock Outstanding—basic and diluted		28,947,254		27,602,612
Distributions Per Share—basic and diluted	$	0.34	$	0.40

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

	Common Stock					Total
	Number	Par		Paid-in		distributable
	of shares	value		capital		(loss)		Net Assets
Balances at December 31, 2024	27,481,118	$	27,481	$	379,549,272	$	(9,654,813)	$	369,921,940
Net investment income	—		—		—		9,788,809		9,788,809
Net realized loss on investments	—		—		—		(5,967,221)		(5,967,221)
Net realized loss on foreign currency translations	—		—		—		(29,655)		(29,655)
Net change in unrealized appreciation on investments	—		—		—		1,193,293		1,193,293
Net change in unrealized depreciation on foreign currency translations	—		—		—		8,319		8,319
Distributions from net investment income	—		—		—		(11,087,389)		(11,087,389)
Issuance of common stock, net of offering costs⁽¹⁾	656,085		656		8,937,430		—		8,938,086
Balances at March 31, 2025	28,137,203	$	28,137	$	388,486,702	$	(15,748,657)	$	372,766,182

Balances at December 31, 2025	28,947,254	$	28,947	$	397,829,793	$	(26,679,784)	$	371,178,956
Net investment income	—		—		—		7,498,028		7,498,028
Net realized gain on investments	—		—		—		750,410		750,410
Net realized gain on foreign currency translation	—		—		—		3,664		3,664
Net change in unrealized depreciation on investments	—		—		—		(6,548,346)		(6,548,346)
Net change in unrealized depreciation on foreign currency translations	—		—		—		(48,020)		(48,020)
Distributions from net investment income	—		—		—		(9,839,171)		(9,839,171)
Balances at March 31, 2026	28,947,254	$	28,947	$	397,829,793	$	(34,863,219)	$	362,995,521

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	For the three months ended
	March 31, 2026		March 31, 2025
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	1,655,736	$	4,993,545
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(27,664,251)		(55,415,263)
Proceeds from sales and repayments of investments		41,713,484		14,986,423
Net change in unrealized depreciation (appreciation) on investments		6,548,346		(1,193,293)
Net change in unrealized depreciation (appreciation) on foreign currency translations		48,020		(8,319)
Increase in investments due to payment-in-kind income		(1,674,387)		(976,479)
Amortization of premium and accretion of discount, net		(713,561)		(715,755)
Amortization of loan structure fees		254,298		315,618
Amortization of deferred financing costs		134,684		110,150
Amortization of discount on Notes Payable		33,248		—
Amortization of premium on Notes Payable		(30,426)		—
Amortization of loan fees on SBA-guaranteed debentures		166,986		188,984
Net realized (gain) loss on investments		(750,410)		5,967,221
Changes in other assets and liabilities
Increase in interest receivable		(235,852)		(1,281,507)
Decrease (increase) in income tax receivable		1,385,387		(1,081,760)
Increase in other receivables		(64,189)		(20,755)
Decrease in related party receivables		20		3,687
(Increase) decrease in prepaid expenses		(423,284)		90,313
(Decrease) increase in management fees payable		(50,348)		20,617
Increase (decrease) in income incentive fees payable		95,648		(1,458,054)
Increase (decrease) in administrative services payable		40,191		(12,990)
Decrease in interest payable		(408,861)		(3,788,915)
Increase in related party payable		2,335,513		1,290,893
(Decrease) increase in unearned revenue		(42,377)		72,177
Increase in income tax payable		93,492		—
Increase in other accrued expenses and liabilities		356,278		989,436
Net Cash Provided by (Used in) Operating Activities	$	22,803,385	$	(36,924,026)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	$	—	$	9,256,982
Sales load for common stock issued		—		(138,908)
Offering costs paid for common stock issued		(75,000)		(179,988)
Stockholder distributions paid		(10,418,116)		(10,999,933)
Financing costs paid on Notes Payable		(50,000)		—
Repayments of SBA-guaranteed debentures		(39,000,000)		(16,250,000)
Borrowings under Credit Facility		58,100,000		67,700,000
Repayments of Credit Facility		(53,033,900)		(21,633,900)
Net Cash (Used in) Provided by Financing Activities	$	(44,477,016)	$	27,754,253
Net Decrease in Cash and Cash Equivalents	$	(21,673,631)	$	(9,169,773)
Cash and Cash Equivalents Balance at Beginning of Period	$	25,050,156	$	20,058,594
Cash and Cash Equivalents Balance at End of Period	$	3,376,525	$	10,888,821
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	8,701,862	$	11,437,182
Income and excise tax refund, net		(1,118,408)		1,581,307
Exchange of investments		1,999,529		1,663,301

Reconciliation of Core Net Investment Income ⁽¹⁾ (Unaudited)

	Three Months Ended
	March 31, 2026	March 31, 2025
Net investment income	$7,498,028	$9,788,809
Income tax expense	360,471	499,547
Core net investment income	$7,858,499	$10,288,356

Per share amounts:
Net investment income per share	$0.26	$0.35
Core net investment income per share	$0.27	$0.37

Reconciliation of Realized Net Investment Income ⁽²⁾ (Unaudited)

	Three Months Ended
	March 31, 2026	March 31, 2025
Net investment income	$7,498,028	$9,788,809
Net realized gain (loss) on investments	750,410	(5,967,221)
Net realized gain on foreign currency translation	3,664	(29,655)
Total realized net investment income	$8,252,102	$3,791,933

Per share amounts:
Net investment income per share	$0.26	$0.35
Realized net investment income per share	$0.29	$0.14

View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-first-fiscal-quarter-ended-march-31-2026-302768689.html

SOURCE Stellus Capital Investment Corporation