OXLC Q1 2026 Results are Dissappointing - Reported of $0.54 is down 27%. Monthly dividend of $0.20 still well covered.

Revised

OXLC Q1 2026 results were worse than expected:

o   NII was down 27.0%

o   NAV was down 32% driven by unrealized losses of $3.91

o   April’s NAV of $11.27 was up almost 7%

o   Only slightly bright spot that CNII only fell 7% to $1.03, which clearly covers the monthly dividends declared of $0.20. Dividend coverage ratios are still very strong (CNII/Dividend is 172% and NII/Dividend is 90%).

o   OXLC stock is down 4% this morning – I guess the market wasn’t impressed.

One thing I find very frustrating with OXLC’s conference calls is that very few, if any analyst asks questions.  There is never very much discussion about future performance. 

Here are my takes:

o   Worst is hopefully over with CLO equity pricing – Jonathan stated that the CLO equity markets are open again and they are seeing more activity.

o   Loan pricing is still tight but there are some pockets of loans in industries that have gapped out.

o   Roughly 40% of loans are trading above par, which means we should see another waive of loan repricing activity.