Oxford Lane Capital Corp.

For the quarter ended March 31, 2026, Oxford Lane reported approximately $94 million of GAAP total investment income, down about $23.8 million from the prior quarter. GAAP net investment income was approximately $54.5 million, or $0.56 per share, versus $71.8 million, or $0.74 per share, in the prior quarter; core net investment income was approximately $100.7 million, or $1.03 per share, versus $108.9 million, or $1.12 per share. The company recorded $381.4 million of net unrealized depreciation and $38.4 million of net realized losses, resulting in a net decrease in net assets from operations of $365.3 million, or $3.74 per share. NAV per share was $10.56 at March 31 versus $15.51 at the prior quarter end; the midpoint of estimated April NAV was $11.27. For forward capital returns, the Board declared monthly common stock distributions of $0.20 per share for each of July, August, and September 2026.

Jonathan Cohen framed the quarter as a difficult period for marks, but emphasized that market conditions improved after quarter-end. He pointed to improved secondary-market liquidity, tighter bid-ask spreads, and more trading activity, saying the company is seeing more opportunities to put capital to work. He also said the firm is approaching leverage conservatively and does not plan to increase balance-sheet leverage beyond refinancing existing debt.

Bruce Rubin mainly handled disclosures and procedural items on the call, with limited financial commentary beyond the earnings release references. The hard figures discussed on the call were the quarter’s investment income, net investment income, unrealized and realized losses, NAV, and the $0.20 monthly dividend declared for July through September 2026. He reiterated that non-GAAP measures were defined in the release and directed investors to the company’s filings and website for reconciliations and additional detail.

Analysts focused on what drove the unrealized depreciation, whether it was more technical or fundamental, and whether the weakness continued into Q2. Management said it was a combination of lower loan prices, continued CLO spread compression, and especially a pullback in buyers that widened bid-ask spreads; it also noted that April was “a very strong month” for CLO equity and that things have stabilized quarter-to-date. On deployment, management said secondary-market liquidity has improved and trading activity has stepped up, which should create more investment opportunities. On leverage, Jonathan Cohen said the firm is taking a conservative stance and would not seek to increase debt-to-equity through new borrowings beyond refinancing existing debt.