HOUSTON, Nov. 10, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended September 30, 2025.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended September 30, 2025, in which we earned U.S. GAAP net investment income of $0.32 per share, core net investment income of $0.34 per share and net realized income of $0.42 per share. During the quarter, we funded $64 million of investments and received $39 million of repayments, resulting in a total portfolio of $1.01 billion at fair value. I'm also pleased to report that our investors have received a total of $318 million in distributions, equivalent to $17.75 per share, since we began operations."

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)


	Three Months Ended				Nine Months Ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
	Amount	Per Share	Amount	Per Share	Amount	Per Share	Amount	Per Share
Net investment income	$9.14	$0.32	$10.26	$0.39	$28.48	$1.01	$32.29	$1.29
Core net investment income⁽¹⁾	9.65	0.34	10.62	0.40	29.93	1.06	33.59	1.34
Net realized gain (loss) on investments	2.86	0.10	(3.30)	(0.13)	(3.96)	(0.14)	(21.69)	(0.87)
Net realized loss on foreign currency translation	(0.01)	—	(0.02)	—	(0.06)	—	(0.08)	—
Loss on debt extinguishment	(0.16)	(0.01)	—	—	(0.16)	(0.01)	—	—
Total realized income⁽²⁾	$11.83	$0.41	$6.94	$0.26	$24.30	$0.86	$10.52	$0.42
Distributions	(11.43)	(0.40)	(10.63)	(0.40)	(33.89)	(1.20)	(30.32)	(1.21)
Net unrealized change in (depreciation) appreciation on investments	(5.14)	(0.18)	8.51	0.33	(2.51)	(0.08)	26.44	1.05
Net unrealized change in appreciation on foreign currency translation	—	—	0.01	—	0.04	—	—	—
Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries	—	—	—	—	—	—	0.19	0.01
Net increase in net assets resulting from operations	$6.69	$0.23	$15.46	$0.59	$21.83	$0.78	$37.15	$1.48
Weighted average shares outstanding		28,480,472		26,326,426		28,168,527		25,066,626


(1)	Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.
(2)	Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures.

PORTFOLIO ACTIVITY

($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)


	As of	As of
	September 30, 2025	December 31, 2024
Investments at fair value	$1,010.2	$953.5
Total assets	$1,028.6	$980.9
Net assets	$377.7	$369.9
Shares outstanding	28,947,254	27,481,118
Net asset value per share	$13.05	$13.46

	Three Months Ended		Nine Months Ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
New investments	$63.8	$17.8	$142.0	$112.6
Repayments of investments	(39.0)	(15.5)	(85.6)	(87.3)
Net activity	$24.8	$2.3	$56.4	$25.3

	As of	As of
	September 30, 2025	December 31, 2024
Number of portfolio company investments	115	105
Number of debt investments	100	92

Weighted average yield of debt and other income producing investments ⁽³⁾
Cash	9.0 %	9.5 %
Payment-in-kind ("PIK")	0.6 %	0.4 %
Fee amortization	0.4 %	0.4 %
Total	10.0 %	10.3 %

Weighted average yield of total investments⁽⁴⁾
Cash	8.4 %	8.9 %
PIK	0.6 %	0.4 %
Fee amortization	0.4 %	0.4 %
Total	9.4 %	9.7 %


(3)	The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.
(4)	The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status.

Results of Operations

Investment income for the three months ended September 30, 2025 and 2024 totaled $26.3 million and $26.5 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended September 30, 2025 and 2024 totaled $17.6 million and $16.2 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.9 million and $8.0 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.5 million and $0.4 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $0.5 million and $0.0 million of income incentive fees due to the total return limitation pursuant to the terms of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended September 30, 2025 and 2024, respectively, for net operating expenses of $17.1 million and $16.2 million, respectively.

Net investment income was $9.1 million and $10.3 million, or $0.32 and $0.39 per common share based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended September 30, 2025 and 2024 was $9.7 million and $10.6 million, or $0.34 and $0.40 per share, respectively.

For the three months ended September 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($5.1) million and $8.5 million, respectively, and the Company had net realized gains (losses) of $2.9 million and ($3.3) million, respectively.

Net increase in net assets resulting from operations totaled $6.7 million and $15.5 million, or $0.23 and $0.59 per common share, based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

As of September 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of September 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million and $350.0 million, respectively.

As of September 30, 2025 and December 31, 2024, the Company had $167.6 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.

The Company issued 531,106 shares during the three months ended September 30, 2025 under the at-the-market equity program ("ATM Program") for gross proceeds of $7.4 million. The average per share offering price of shares issued under the ATM Program during the three months ended September 30, 2025 was $14.00.

Distributions

For both the three months ended September 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.6 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.

Recent Portfolio Activity

The Company invested in the following portfolio companies during the three months ended September 30, 2025:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	July 28, 2025	Equine Network, LLC*	Hosts competitions and provides services for the U.S. equine industry	$	2,122,453	Senior Secured – First Lien
New Investment	July 31, 2025	The Millennium Alliance, LLC	Facilitator of peer-to-peer events connecting companies with technology solution providers	$	11,500,000	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	515,556	Equity
New Investment	July 31, 2025	Elder Care Opco LLC	Provider of homecare services	$	7,785,007	Senior Secured – First Lien
				$	2,500,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	910,966	Equity
Add-On Investment	August 4, 2025	Guidant Corp.*	Provider of liquid metering products and integrated solutions to the energy infrastructure sector	$	66,030	Equity
Add-On Investment	August 5, 2025	MedLearning Group, LLC*	Provider of continuing medical education services	$	1,000,000	Senior Secured – First Lien
Add-On Investment	August 21, 2025	Invincible Boat Company LLC*	Manufacturer and marketer of ultra-premium saltwater fishing boats	$	531,915	Revolver Commitment
New Investment	August 22, 2025	DMD Systems Recovery, LLC	Provider of IT asset disposition services	$	6,100,000	Senior Secured – First Lien
				$	1,000,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	180,000	Equity
Add-On Investment	August 29, 2025	Compost 360 Acquisition, LLC*	Organic waste recycler and producer of compost, mulch, and engineered soils	$	27,630	Equity
New Investment	September 19, 2025	Champion Services Acquireco LLC	Provider of commercial re-roofing and restoration services	$	12,000,000	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	268,889	Equity
New Investment	September 22, 2025	DFO Enterprises, LLC	Manufacturer of fiber optic cable assembly equipment, consumables, and precision components	$	11,580,474	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	412,252	Equity

*Existing portfolio company

The Company realized investments in the following portfolio companies during the three months ended September 30, 2025:

Activity Type

Date

Company Name

Company Description

Proceeds Received

Realized Gain (Loss)

Instrument Type

Full Realization

July 3, 2025

EOS Fitness Holdings, LLC

Gym franchise operator

2,799,098

Equity

Full Repayment

July 31, 2025

Rogers Mechanical Contractors,

LLC

HVAC and plumbing designer,

installer, and service provider for

new/existing data centers,

fulfilment sortation facilities,

and warehouses

8,272,652

—

Senior Secured – First Lien

Full Repayment

August 21, 2025

CompleteCase, LLC

Provider of online uncontested

divorce solutions

6,287,212

—

Senior Secured – First Lien

Full Repayment

September 18, 2025

Cafe Valley, Inc.

Wholesale bakery serving the

in-store bakery, food service, club,

mass, C-store and international

channels

15,284,524

—

Senior Secured – First Lien

*Existing portfolio company

Events Subsequent to September 30, 2025

The Company's management has evaluated subsequent events through November 10, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to September 30, 2025:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	October 1, 2025	The Hardenbergh Group, Inc.*	Provider of patient safety, clinical risk mitigation, and healthcare compliance solutions	$	500,000	Senior Secured – First Lien
Add-On Investment	October 3, 2025	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	183,470	Senior Secured – First Lien
Add-On Investment	October 17, 2025	J.R. Watkins, LLC*	Manufacturer and distributor of home and personal care products	$	18,000	Priority Revolver Commitment
New Investment	October 17, 2025	Fidus Systems Inc.	Provider of outsourced electronic product development and engineering services	$	4,759,099	Senior Secured – First Lien
				$	3,172,733	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	267,728	Equity
Add-On Investment	November 6, 2025	Mobotrex Acquisition, LLC*	Distributor and manufacturer of intelligent traffic solution equipment	$	3,523,787	Senior Secured – First Lien
				$	1,549,698	Delayed Draw Term Loan Commitment
				$	73,776	Revolver Commitment
Add-On Investment	November 6, 2025	Ad.Net Acquisition, LLC*	A digital marketing company that targets high-conversion consumers through cost-per-click digital media advertising	$	1,896,568	Senior Secured – First Lien
				$	85,027	Equity

*Existing portfolio company

The Company realized investments in the following portfolio companies subsequent to September 30, 2025:


Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Gain		Instrument Type
Full Repayment	October 25, 2025	Heartland Business Systems, LLC	End-to-end information technologies solutions provider	$	9,725,000	$	—	Senior Secured – First Lien
				$	48,875	$	—	Delayed Draw Term Loan
Full Repayment	November 3, 2025	NuSource Financial Acquisition, Inc.	Provider of technology integration and installation of teller machines, maintenance services, and security solutions	$	7,014,746	$	—	Unsecured
Full Realization				$	1,066,715	$	1,066,715	Warrants

Credit Facility

The outstanding balance under the Credit Facility as of November 10, 2025 was $182.8 million.

Distributions Declared

On October 8, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of October 2025, November 2025, and December 2025 as follows:


	Ex-Dividend	Record	Payment	Amount per
Declared	Date	Date	Date	Share
10/8/2025	10/31/2025	10/31/2025	11/14/2025	$	0.1333
10/8/2025	11/28/2025	11/28/2025	12/15/2025	$	0.1333
10/8/2025	12/31/2025	12/31/2025	1/15/2026	$	0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, November 12, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 118871. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, November 26, 2025 by dialing (877) 481-4010 and entering passcode 53167. The replay will also be available on the Company's website.

For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

About Stellus Capital Investment Corporation

The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts

Stellus Capital Investment Corporation

W. Todd Huskinson, Chief Financial Officer

(713) 292-5414

thuskinson@stelluscapital.com

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

	September 30, 2025
	(unaudited)		December 31, 2024
ASSETS
Controlled investments at fair value (amortized cost of $33,202,703 and $17,934,808, respectively)	$	13,568,095	$	7,652,436
Non-controlled, non-affiliated investments, at fair value (amortized cost of $986,914,541 and $943,853,898, respectively)		996,641,541		945,845,252
Cash and cash equivalents		9,024,020		20,058,594
Receivable for sales and repayments of investments		437,552		335,689
Interest receivable		7,047,686		4,947,765
Income tax receivable		1,522,198		1,301,965
Other receivables		99,111		87,995
Related party receivable		22,500		3,687
Prepaid expenses		281,634		666,866
Total Assets	$	1,028,644,337	$	980,900,249
LIABILITIES
Notes Payable	$	172,522,707	$	99,444,355
Credit Facility payable		163,995,602		172,314,315
SBA-guaranteed debentures		295,805,634		321,251,939
Dividends payable		3,858,669		3,663,233
Management fees payable		4,401,305		4,034,109
Income incentive fees payable		2,642,033		3,109,560
Interest payable		5,912,375		5,281,343
Related party payable		136,535		—
Unearned revenue		640,637		548,626
Administrative services payable		507,139		393,513
Other accrued expenses and liabilities		491,374		937,316
Total Liabilities	$	650,914,010	$	610,978,309
Commitments and contingencies (Note 7)
Net Assets	$	377,730,327	$	369,921,940
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,947,254 and 27,481,118 shares issued and outstanding, respectively)	$	28,947	$	27,481
Paid-in capital		399,410,630		379,549,272
Total distributable loss		(21,709,250)		(9,654,813)
Net Assets	$	377,730,327	$	369,921,940
Total Liabilities and Net Assets	$	1,028,644,337	$	980,900,249
Net Asset Value Per Share	$	13.05	$	13.46

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended				For the nine months ended
	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
INVESTMENT INCOME
From controlled investments:
Interest income	$	—	$	—	$	—	$	81,636
From non-controlled, non-affiliated investments
Interest income		23,634,587		24,403,375		69,923,357		72,969,302
Payment-in-kind interest income		1,378,166		934,986		3,870,717		2,490,854
Other income		1,262,956		1,159,898		3,129,895		3,579,415
Total Investment Income	$	26,275,709	$	26,498,259	$	76,923,969	$	79,121,207
OPERATING EXPENSES
Management fees	$	4,401,305	$	3,959,554	$	12,735,472	$	11,664,020
Valuation fees		172,364		151,535		368,760		343,753
Administrative services expenses		592,409		469,274		1,515,991		1,441,436
Income incentive fees		2,166,047		2,564,922		6,460,613		7,616,562
Professional fees		395,098		312,034		1,125,937		847,866
Directors' fees		93,250		93,250		297,750		315,750
Insurance expense		99,248		126,362		295,006		376,840
Interest expense and other fees		8,949,075		7,956,403		25,892,109		23,840,473
Income tax expense		515,686		360,192		1,444,184		1,304,948
Other general and administrative expenses		227,037		245,043		945,690		908,185
Total Operating Expenses	$	17,611,519	$	16,238,569	$	51,081,512	$	48,659,833
Income incentive fee waiver		(471,251)		—		(2,643,020)		(1,826,893)
Total Operating Expenses, net of fee waivers	$	17,140,268	$	16,238,569	$	48,438,492	$	46,832,940
Net Investment Income	$	9,135,441	$	10,259,690	$	28,485,477	$	32,288,267
Net realized loss on controlled investments	$	—	$	—	$	(1,132,576)	$	—
Net realized gain (loss) on non-controlled, non-affiliated investments		2,867,155		(3,297,615)		(2,827,517)		(21,689,864)
Net realized loss on foreign currency translations		(9,422)		(22,095)		(59,080)		(76,990)
Loss on debt extinguishment		(164,762)		—		(164,762)		—
Net change in unrealized appreciation on controlled investments		51,367		248,746		1,397,134		923,505
Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated investments		(5,187,426)		8,255,272		(3,906,233)		25,512,422
Net change in unrealized (depreciation) appreciation on foreign currency translations		(325)		14,588		38,540		5,099
Benefit for taxes on net unrealized depreciation on investments		—		—		—		188,893
Benefit for taxes on net realized loss on investments		—		2,221		—		2,221
Net Increase in Net Assets Resulting from Operations	$	6,692,028	$	15,460,807	$	21,830,983	$	37,153,553
Net Investment Income Per Share—basic and diluted	$	0.32	$	0.39	$	1.01	$	1.29
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.23	$	0.59	$	0.78	$	1.48
Weighted Average Shares of Common Stock Outstanding—basic and diluted		28,480,472		26,326,426		28,168,527		25,066,626
Distributions Per Share—basic and diluted	$	0.40	$	0.40	$	1.20	$	1.21

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)

	Common Stock					Total
	Number	Par		Paid-in		distributable
	of shares	value		capital		(loss)		Net Assets
Balances at December 31, 2023	24,125,642	$	24,125	$	335,918,984	$	(16,003,321)	$	319,939,788
Net investment income	—		—		—		10,235,916		10,235,916
Net realized loss on investments	—		—		—		(20,384,731)		(20,384,731)
Net realized loss on foreign currency translations	—		—		—		(25,106)		(25,106)
Net change in unrealized appreciation on investments	—		—		—		23,518,590		23,518,590
Net change in unrealized depreciation on foreign currency translations	—		—		—		(3,602)		(3,602)
Provision for taxes on unrealized appreciation on investments	—		—		—		(192,607)		(192,607)
Distributions from net investment income	—		—		—		(9,647,844)		(9,647,844)
Balances at March 31, 2024	24,125,642	$	24,125	$	335,918,984	$	(12,502,705)	$	323,440,404
Net investment income	—		—		—		11,792,661		11,792,661
Net realized gain on investments	—		—		—		1,992,482		1,992,482
Net realized loss on foreign currency translations	—		—		—		(29,789)		(29,789)
Net change in unrealized depreciation on investments	—		—		—		(5,586,681)		(5,586,681)
Net change in unrealized depreciation on foreign currency translations	—		—		—		(5,887)		(5,887)
Benefit for taxes on unrealized depreciation on investments	—		—		—		381,500		381,500
Distributions from net investment income	—		—		—		(10,049,073)		(10,049,073)
Issuance of common stock, net of offering costs⁽¹⁾	1,855,356		1,856		25,248,020		—		25,249,876
Balances at June 30, 2024	25,980,998	$	25,981	$	361,167,004	$	(14,007,492)	$	347,185,493
Net investment income	—		—		—		10,259,690		10,259,690
Net realized loss on investments	—		—		—		(3,297,615)		(3,297,615)
Net realized loss on foreign currency translation	—		—		—		(22,095)		(22,095)
Net change in unrealized appreciation on investments	—		—		—		8,504,018		8,504,018
Net change in unrealized appreciation on foreign currency translations	—		—		—		14,588		14,588
Benefit for taxes on net realized loss on investments	—		—		—		2,221		2,221
Distributions from net investment income	—		—		—		(10,625,512)		(10,625,512)
Issuance of common stock, net of offering costs⁽¹⁾	1,058,366		1,058		14,263,441		—		14,264,499
Balances at September 30, 2024	27,039,364	$	27,039	$	375,430,445	$	(9,172,197)	$	366,285,287

Balances at December 31, 2024	27,481,118	$	27,481	$	379,549,272	$	(9,654,813)	$	369,921,940
Net investment income	—		—		—		9,788,809		9,788,809
Net realized loss on investments	—		—		—		(5,967,221)		(5,967,221)
Net realized loss on foreign currency translations	—		—		—		(29,655)		(29,655)
Net change in unrealized appreciation on investments	—		—		—		1,193,293		1,193,293
Net change in unrealized depreciation on foreign currency translations	—		—		—		8,319		8,319
Distributions from net investment income	—		—		—		(11,087,389)		(11,087,389)
Issuance of common stock, net of offering costs⁽¹⁾	656,085		656		8,937,430		—		8,938,086
Balances at March 31, 2025	28,137,203	$	28,137	$	388,486,702	$	(15,748,657)	$	372,766,182
Net investment income	—		—		—		9,561,227		9,561,227
Net realized loss on investments	—		—		—		(860,027)		(860,027)
Net realized loss on foreign currency translations	—		—		—		(20,003)		(20,003)
Net change in unrealized appreciation on investments	—		—		—		1,433,667		1,433,667
Net change in unrealized appreciation on foreign currency translations	—		—		—		30,546		30,546
Distributions from net investment income	—		—		—		(11,363,618)		(11,363,618)
Issuance of common stock, net of offering costs⁽¹⁾	278,945		279		3,822,637		—		3,822,916
Balances at June 30, 2025	28,416,148	$	28,416	$	392,309,339	$	(16,966,865)	$	375,370,890
Net investment income	—		—		—		9,135,441		9,135,441
Net realized gain on investments	—		—		—		2,867,155		2,867,155
Net realized loss on foreign currency translations	—		—		—		(9,422)		(9,422)
Loss on debt extinguishment	—		—		—		(164,762)		(164,762)
Net change in unrealized depreciation on investments	—		—		—		(5,136,059)		(5,136,059)
Net change in unrealized depreciation on foreign currency translations	—		—		—		(325)		(325)
Distributions from net investment income	—		—		—		(11,434,413)		(11,434,413)
Issuance of common stock, net of offering costs⁽¹⁾	531,106		531		7,101,291		—		7,101,822
Balances at September 30, 2025	28,947,254	$	28,947	$	399,410,630	$	(21,709,250)	$	377,730,327

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	For the nine months ended
	September 30, 2025		September 30, 2024
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	21,830,983	$	37,153,553
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(141,983,167)		(112,624,812)
Proceeds from sales and repayments of investments		85,635,632		87,308,914
Net change in unrealized depreciation (appreciation) on investments		2,509,099		(26,435,927)
Net change in unrealized appreciation on foreign currency translations		(37,811)		(5,099)
Increase in investments due to PIK		(3,870,717)		(2,490,856)
Amortization of premium and accretion of discount, net		(2,172,972)		(2,045,992)
Deferred tax benefit		—		(188,893)
Amortization of loan structure fees		954,033		825,891
Amortization of deferred financing costs		447,751		335,345
Amortization of discount on Notes Payable		63,395		—
Amortization of loan fees on SBA-guaranteed debentures		553,695		784,763
Net realized loss on investments		3,960,093		21,689,864
Loss on debt extinguishment		164,762		—
Changes in other assets and liabilities
Increase in interest receivable		(2,099,921)		(1,389,856)
Increase in income tax receivable		(220,233)		(228,663)
Increase in other receivables		(11,116)		(25,000)
Increase in related party receivables		(18,813)		—
Decrease in prepaid expenses		385,232		349,950
Increase in management fees payable		367,196		1,041,018
(Decrease) increase in income incentive fees payable		(467,527)		269,396
Increase (decrease) in administrative services payable		113,626		(1,118)
Increase (decrease) in interest payable		631,032		(3,988,133)
Increase in related party payable		136,535		1,898,854
Increase in unearned revenue		92,011		152,623
(Decrease) increase in other accrued expenses and liabilities		(445,942)		718,139
Net Cash (Used) Provided in Operating Activities	$	(33,483,144)	$	3,103,961
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	$	20,588,960	$	40,370,901
Sales load for common stock issued		(308,998)		(606,145)
Offering costs paid for common stock issued		(417,138)		(243,067)
Stockholder distributions paid		(33,689,984)		(26,718,082)
Proceeds from issuance of Notes Payable		125,000,000		—
Repayment of Notes Payable		(50,000,000)		—
Premium from issuance of Notes Payable		648,000		—
Discount from issuance of Notes Payable		(770,250)		—
Financing costs paid on Notes Payable		(2,475,306)		—
Repayments of SBA-guaranteed debentures		(26,000,000)		—
Financing costs paid on Credit Facility		(1,525,014)		(101,348)
Borrowings under Credit Facility		198,900,000		122,400,000
Repayments of Credit Facility		(207,501,700)		(125,751,700)
Net Cash Provided by Financing Activities	$	22,448,570	$	9,350,559
Net (Decrease) Increase in Cash and Cash Equivalents	$	(11,034,574)	$	12,454,520
Cash and Cash Equivalents Balance at Beginning of Period	$	20,058,594	$	26,125,741
Cash and Cash Equivalents Balance at End of Period	$	9,024,020	$	38,580,261
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	24,940,287	$	25,882,607
Income and excise tax paid		1,664,417		1,533,611
Exchange of investments		1,663,301		8,256,411

Reconciliation of Core Net Investment Income⁽¹⁾ (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
Net investment income	$9,135,441	$10,259,690	$28,485,477	$32,288,267
Income tax expense	515,686	360,192	1,444,184	1,304,948
Core net investment income	$9,651,127	$10,619,882	$29,929,661	$33,593,215

Per share amounts:
Net investment income per share	$0.32	$0.39	$1.01	$1.29
Core net investment income per share	$0.34	$0.40	$1.06	$1.34

Reconciliation of Realized Net Investment Income⁽²⁾ (Unaudited)

	Three Months Ended		Nine Months Ended
	September 30, 2025	September 30, 2024	September 30, 2025	September 30, 2024
Net investment income	$9,135,441	$10,259,690	$28,485,477	$32,288,267
Net realized gain (loss) on investments	2,867,155	(3,297,615)	(3,960,093)	(21,689,864)
Net realized loss on foreign currency translation	(9,422)	(22,095)	(59,080)	(76,990)
Benefit for taxes on net realized loss on investments	—	2,221	—	2,221
Loss on debt extinguishment	(164,762)	—	(164,762)	—
Total realized net investment income	$11,828,412	$6,942,201	$24,301,542	$10,523,634

Per share amounts:
Net investment income per share	$0.32	$0.39	$1.01	$1.29
Realized net investment income per share	$0.42	$0.26	$0.86	$0.42

View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-third-fiscal-quarter-ended-september-30-2025-302610679.html

SOURCE Stellus Capital Investment Corporation

Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025