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

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

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

September 30, 2025

December 31, 2024

Number of portfolio company investments

115

105

Number of debt investments

100

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 %

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 %

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

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

10/8/2025

10/31/2025

11/14/2025

0.1333

10/8/2025

11/28/2025

12/15/2025

0.1333

10/8/2025

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

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

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

Net realized loss on investments

—

(20,384,731)

Net realized loss on foreign currency translations

—

(25,106)

Net change in unrealized appreciation on investments

—

23,518,590

Net change in unrealized depreciation on foreign currency translations

—

(3,602)

Provision for taxes on unrealized appreciation on investments

—

(192,607)

Distributions from net investment income

—

(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

Net realized gain on investments

—

1,992,482

Net realized loss on foreign currency translations

—

(29,789)

Net change in unrealized depreciation on investments

—

(5,586,681)

Net change in unrealized depreciation on foreign currency translations

—

(5,887)

Benefit for taxes on unrealized depreciation on investments

—

381,500

Distributions from net investment income

—

(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

Net realized loss on investments

—

(3,297,615)

Net realized loss on foreign currency translation

—

(22,095)

Net change in unrealized appreciation on investments

—

8,504,018

Net change in unrealized appreciation on foreign currency translations

—

14,588

Benefit for taxes on net realized loss on investments

—

2,221

Distributions from net investment income

—

(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

Net realized loss on investments

—

(5,967,221)

Net realized loss on foreign currency translations

—

(29,655)

Net change in unrealized appreciation on investments

—

1,193,293

Net change in unrealized depreciation on foreign currency translations

—

8,319

Distributions from net investment income

—

(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

Net realized loss on investments

—

(860,027)

Net realized loss on foreign currency translations

—

(20,003)

Net change in unrealized appreciation on investments

—

1,433,667

Net change in unrealized appreciation on foreign currency translations

—

30,546

Distributions from net investment income

—

(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

Net realized gain on investments

—

2,867,155

Net realized loss on foreign currency translations

—

(9,422)

Loss on debt extinguishment

—

(164,762)

Net change in unrealized depreciation on investments

—

(5,136,059)

Net change in unrealized depreciation on foreign currency translations

—

(325)

Distributions from net investment income

—

(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

SOURCE Stellus Capital Investment Corporation