Equus Total Return, Inc. reported its financial results for the second quarter of 2026, revealing a net investment loss of $900,000, compared to a loss of $610,000 in the same period last year. For the six months ending June 30, 2026, the company recorded a net investment loss of $1.8 million, slightly higher than the $1.7 million loss reported for the first half of 2025. Total investment income remained stable at $318,000 for the three months ended June 30, 2026, and $633,000 for the six-month period, consistent with the previous year. The company’s expenses increased, primarily due to higher compensation and professional fees, which rose to $582,000 and $364,000 for the second quarter, respectively.
As of June 30, 2026, Equus reported total assets of $21.9 million, a slight increase from $21.3 million at the end of 2025. The company’s investments in portfolio securities at fair value decreased to $16.2 million from $17.3 million at the end of the previous fiscal year. Control investments, which represent a significant portion of the portfolio, increased in value to $13 million, while non-affiliate investments fell to $3.2 million. The net asset value per share remained unchanged at $1.19, with 13,966,696 shares outstanding.
Operationally, Equus has been focusing on its subsidiary, Morgan E&P, Inc., which has been actively involved in the oil and gas sector. The company reported a significant unrealized appreciation of $2.5 million in its investment in Morgan during the first half of 2026, attributed to fluctuations in oil prices. However, the fair value of its investment in CitroTech, Inc. decreased by $2.9 million due to share price declines and the sale of shares. The company continues to evaluate its portfolio and market conditions, particularly in light of geopolitical events affecting the oil and gas sector.
Looking ahead, Equus faces challenges related to its convertible senior note, which matured in February 2026 and remains unpaid. The company received a Notice of Event of Default from the lender in July 2026 and is currently in discussions regarding potential solutions. Additionally, Equus is exploring opportunities to transform into an operating company, which may require shareholder approval. The company’s management remains focused on preserving liquidity and enhancing shareholder value through strategic initiatives and operational efficiencies.
About EQUUS TOTAL RETURN, INC.
Equus Total Return, Inc. is a closed-end investment company focused on maximizing total returns through investments in debt and equity securities of small to middle-market companies. It targets growth, leveraged buyouts, and special situations, primarily in the energy sector. The company provides active management, seeks liquidity events, and operates under the Business Development Company (BDC) structure to balance income and capital appreciation.
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