Equus Total Return Reports Q2 2025 Financial Results with Reduced Net Investment Loss

Equus Total Return, Inc. reported its financial results for the second quarter of 2025, revealing a net investment loss of $0.6 million, compared to a loss of $0.9 million in the same period last year. For the six months ending June 30, 2025, the company recorded a net investment loss of $1.7 million, down from $2.0 million in the prior year. Total investment income remained relatively stable at $0.4 million for the second quarter, compared to $0.3 million in 2024, and $0.7 million for the first half of 2025, slightly up from $0.6 million in 2024. The company’s total assets increased to $37.1 million as of June 30, 2025, from $29.9 million at the end of 2024, primarily driven by a rise in investments in portfolio securities.

The company’s net assets also saw a significant increase, rising to $34.1 million from $29.5 million at the end of the previous fiscal year. The net asset value per share improved to $2.51, a 15.7% increase from $2.17 at the end of 2024. This growth in net asset value was attributed to strategic decisions, including the issuance of a convertible senior note and warrants, which provided additional capital. The company issued a $2 million convertible note in February 2025, which is convertible into shares of common stock at a price of $1.50 per share, alongside warrants for the purchase of 1.99 million shares at the same price.

Operationally, Equus Total Return has focused on refining its investment strategy and enhancing liquidity. The company has internalized its management, suspended its managed distribution policy, and modified its investment strategy to pursue shorter-term liquidation opportunities. These initiatives are aimed at preserving capital and enhancing shareholder value. As of June 30, 2025, the company held investments primarily in the energy sector, which constituted 67% of its total investments, with a significant portion in control investments.

Looking ahead, Equus Total Return is evaluating the impact of current market conditions on its portfolio valuations and the ability of its portfolio companies to generate income. The company has expressed concerns regarding its liquidity, indicating that it may require loans or capital investments to cover potential cash shortfalls. The management is also considering opportunities to transform Equus into an operating company, although no definitive timeline has been established for this transition. The company’s future performance will depend on its ability to navigate market volatility and execute its strategic initiatives effectively.