10-Q · May 11, 2026
Stellus Capital Investment Corporation's Q1 2026 results showed a decrease in revenue to $23.3 million from $25.0 million in Q1 2025, alongside an EPS drop to $0.26 from $0.35. While the net investment income decreased…
Earnings analysis · 10-Q
SCM earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
The extracted 10-Q does not provide the income statement, segment results, balance sheet, or cash-flow statements, so revenue, margins, EPS, free cash flow and period-over-period trends cannot be assessed. The filing…
Read full summary
The extracted 10-Q does not provide the income statement, segment results, balance sheet, or cash-flow statements, so revenue, margins, EPS, free cash flow and period-over-period trends cannot be assessed. The filing shows a largely unchanged risk profile, with 91.7% of loans floating-rate and modeled annual net interest-income sensitivity of plus or minus $11.9 million for a 200-basis-point rate move. Share repurchases totaled 274,343 shares during the quarter, while management reported effective disclosure controls and no material risk-factor changes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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High Floating-Rate Portfolio Exposure
Floating-rate exposure remained high: 91.7% of portfolio loans bore floating interest at June 30, 2026, versus 91.6% at December 31, 2025. The weighted-average interest-rate floor was 1.42% at both dates.
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Meaningful Upside From Higher Rates
The filing estimates that a 200-basis-point increase in rates would raise annual net interest income by $11.9 million, assuming the balance sheet remains constant and no mitigating actions are taken.
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Share Repurchases Accelerated
The company repurchased 274,343 shares during the quarter, including 115,009 shares in May and 159,334 shares in June, at average prices of $9.16 and $8.68, respectively.
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Remaining Buyback Capacity
Following the quarter, $17,618,036 remained available under the $20,000,000 repurchase authorization, which expires no later than March 2, 2027.
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Effective Disclosure Controls
Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and identified no material changes to internal control over financial reporting during the 3- and 6-month periods ended June 30, 2026.
What to watch
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Downside From Falling Interest Rates
The filing estimates that a 200-basis-point decline in rates would reduce annual net interest income by $11.9 million, while a 100-basis-point decline would reduce it by $5.9 million. This sensitivity is material given that 91.7% of portfolio loans were floating-rate at June 30, 2026.
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No Interest-Rate Hedging
The Federal Reserve target rate was 3.50% to 3.75% as of the filing, and the company had no hedging activity during either the 3-month or 6-month periods ended June 30, 2026. Consequently, the portfolio remains exposed to rate movements without reported hedge protection.
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Sensitivity Analysis May Understate Risk
The rate-sensitivity analysis assumes the consolidated statement of assets and liabilities remains constant and does not reflect potential changes in credit quality, portfolio composition or other business developments. Actual results could therefore differ materially from the modeled $11.9 million net-interest-income impact at a 200-basis-point rate move.
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No New Risk-Factor Updates
The company stated that there were no material changes to the risk factors discussed in its March 11, 2026 Form 10-K during the 3- and 6-month periods ended June 30, 2026; therefore, no new risk-factor mitigation or deterioration was disclosed.
Management's outlook
The provided 10-Q text does not include quantitative revenue or EPS guidance. The prior 8-K referenced Q3 2026 revenue guidance of $26.0 million to $28.0 million, but no updated outlook is provided in the extracted 10-Q.
Earlier filings 4
10-Q · November 10, 2025
Stellus Capital Investment Corporation's Q3 2025 results showed strong performance with revenues of $26.3 million, slightly up from $26.0 million in Q3 2024. EPS improved to $0.34, up from $0.36 last quarter, indicating…
10-Q · August 6, 2025
In Q2 2025, Stellus Capital Investment Corporation reported revenues of $26 million, a slight decrease of 3.70% from $27 million in Q2 2024. With an operating margin of 69.0% and an EPS of $0.36, the company maintained…
10-Q · May 12, 2025
Stellus Capital Investment Corporation's Q1 2025 results reflected a decrease in revenue and EPS compared to the prior periods. Revenue was reported at $24.95 million with a gross margin of 100% and an operating margin…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.