Stellus Capital Investment Corporation reported its financial results for the second quarter of 2025, revealing a total investment income of $25.7 million, a decrease from $26.6 million in the same period last year. For the six months ending June 30, 2025, total investment income was $50.6 million, down from $52.6 million in the prior year. The company’s net investment income for the quarter was $9.6 million, or $0.34 per share, compared to $11.8 million, or $0.48 per share, in the previous year. The decline in income was attributed to lower interest income and a decrease in non-recurring income, despite an increase in the principal debt outstanding.

The company’s total assets increased to $1.03 billion as of June 30, 2025, up from $980.9 million at the end of 2024. This growth was primarily driven by an increase in non-controlled, non-affiliated investments, which rose to $972.8 million from $945.8 million. Stellus Capital's liabilities also increased, totaling $659.4 million, compared to $610.9 million at the end of the previous fiscal year. The company’s net assets stood at $375.4 million, reflecting a slight increase from $369.9 million at the end of 2024.

In terms of operational developments, Stellus Capital made significant investments during the first half of 2025, totaling $78.2 million across nine new and 13 existing portfolio companies. The company received $46.6 million from repayments of its investments during the same period. As of June 30, 2025, Stellus Capital had 112 portfolio companies, with a focus on first lien debt, which constituted approximately 89% of its investment portfolio. The company also reported that 6.8% of its loan portfolio was on non-accrual status, indicating a slight improvement from 8.3% at the end of 2024.

Looking ahead, Stellus Capital remains focused on maximizing total returns for its shareholders through strategic investments in lower middle-market companies. The company has maintained compliance with its asset coverage ratio, which stood at 211% as of June 30, 2025. The management expressed optimism about future investment opportunities, although it acknowledged potential challenges from economic factors such as supply chain disruptions and fluctuating interest rates. The company plans to continue leveraging its existing credit facilities and exploring new equity offerings to support its investment strategy.

About Stellus Capital Investment Corp

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