HOUSTON, Aug. 6, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2025.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2025, in which we earned U.S. GAAP net investment income of $0.34 per share and core net investment income of $0.35 per share. During the quarter, we funded $23 million of investments and received $32 million of repayments, resulting in a total portfolio of $986 million at fair value. We raised an additional $4 million of equity during the quarter under the at-the-market equity program. I'm also pleased to report that our investors have received a total of $306 million in distributions, equivalent to $17.35 per share, since we began operations."

FINANCIAL HIGHLIGHTS

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

	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
	Amount	Per Share	Amount	Per Share	Amount	Per Share	Amount	Per Share
Net investment income	$9.56	$0.34	$11.79	$0.48	$19.35	$0.69	$22.03	$0.90
Core net investment income⁽¹⁾	9.99	0.35	12.37	0.50	20.28	0.72	22.97	0.94
Net realized (loss) gain on investments	(0.86)	(0.03)	1.99	0.07	(6.83)	(0.24)	(18.39)	(0.75)
Net realized loss on foreign currency translation	(0.02)	—	(0.03)	—	(0.05)	—	(0.05)	—
Total realized income⁽²⁾	$8.68	$0.31	$13.75	$0.55	$12.47	$0.45	$3.59	$0.15
Distributions	(11.36)	(0.40)	(10.05)	(0.41)	(22.45)	(0.80)	(19.70)	(0.81)
Net unrealized change in appreciation (depreciation) on investments	1.44	0.05	(5.58)	(0.22)	2.63	0.09	17.92	0.73
Net unrealized change in appreciation (depreciation) on foreign currency translation	0.03	—	(0.01)	—	0.04	—	(0.01)	—
Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries	—	—	0.38	0.02	-	-	0.19	0.01
Net increase in net assets resulting from operations	$10.15	$0.36	$8.54	$0.35	$15.14	$0.54	$21.69	$0.89
Weighted average shares outstanding		28,412,849		24,733,966		28,009,969		24,429,804


(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
	June 30, 2025	December 31, 2024
Investments at fair value	$985.9	$953.5
Total assets	$1,034.8	$980.9
Net assets	$375.4	$369.9
Shares outstanding	28,416,148	27,481,118
Net asset value per share	$13.21	$13.46

	Three Months Ended		Six Months Ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
New investments	$22.8	$66.3	$78.2	$94.9
Repayments of investments	(31.6)	(40.7)	(46.6)	(71.8)
Net activity	($8.8)	$25.6	$31.6	$23.1

	As of	As of
	June 30, 2025	December 31, 2024
Number of portfolio company investments	112	105
Number of debt investments	98	92

Weighted average yield of debt and other income producing investments ⁽³⁾
Cash	9.3 %	9.5 %
Payment-in-kind ("PIK")	0.5 %	0.4 %
Fee amortization	0.4 %	0.4 %
Total	10.2 %	10.3 %

Weighted average yield of total investments⁽⁴⁾
Cash	8.7 %	8.9 %
PIK	0.5 %	0.4 %
Fee amortization	0.4 %	0.4 %
Total	9.6 %	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 June 30, 2025 and 2024 totaled $25.7 million and $26.6 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended June 30, 2025 and 2024 totaled $17.1 million and $16.5 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.7 million and $8.1 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million and $0.5 million, income tax totaled $0.4 million and $0.6 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $1.0 million and $1.7 million of income incentive fees due to the total return limitation contained in the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended June 30, 2025 and 2024, respectively, for net operating expenses of $16.1 million and $14.8 million, respectively.

Net investment income was $9.6 million and $11.8 million, or $0.34 and $0.48 per common share based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 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 June 30, 2025 and 2024 was $10.0 million and $12.4 million, or $0.35 and $0.50 per share, respectively.

For the three months ended June 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized appreciation (depreciation) of $1.4 million and ($5.6) million, respectively, and the Company had net realized (losses) gains of ($0.9) million and $2.0 million, respectively.

Net increase in net assets resulting from operations totaled $10.1 million and $8.5 million, or $0.36 and $0.35 per common share, based on 28,412,849 and 24,733,966 weighted average common shares outstanding for the three months ended June 30, 2025 and 2024, respectively.

Liquidity and Capital Resources

As of June 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 $315.0 million on a committed basis. As of June 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 $350.0 million.

As of June 30, 2025 and December 31, 2024, the Company had $163.1 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.

The Company issued 278,945 shares during the three months ended June 30, 2025 under the at-the-market program ("ATM Program") for gross proceeds of $3.9 million. The average per share offering price of shares issued under the ATM Program during the three months ended June 30, 2025 was $13.97. Stellus Capital Management, LLC, the Company's investment adviser (the "Advisor"), has agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less than net asset value per share.

Distributions

For both the three months ended June 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.0 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 June 30, 2025:

Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 8, 2025	TriplePoint Acquisition Holdings LLC*	Provider of HVAC, plumbing, and other mechanical and industrial services	$	1,773,809	Senior Secured – First Lien
Add-On Investment	April 25, 2025	Elliott Aviation, LLC*	Provider of maintenance, repair, and overhaul and fixed-base operator services to the business aviation sector	$	57,899	Senior Secured – First Lien
				$	105	Equity
New Investment	April 30, 2025	Gourmet Specialty Foods, LLC	Provider of ready-to-cook value-added proteins to grocery retailers	$	4,270,705	Senior Secured – First Lien
				$	2,847,136	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	240,595	Equity
Add-On Investment	May 5, 2025	FairWave Holdings, LLC*	Specialty coffee platform	$	19,336	Equity
Add-On Investment	May 8, 2025	Unicat Catalyst Holdings, LLC*	Manufacturer and distributor of catalysts and other industrial products	$	13,961	Equity
Add-On Investment	May 21, 2025	The Hardenbergh Group, Inc. *	Provider of temporary professional staffing of medical services professionals, external peer review, consulting and physician leadership solutions	$	243,044	Equity
Add-On Investment	May 30, 2025	WER Holdings, LLC*	Regional provider of commercial landscaping services	$	426,885	Senior Secured – First Lien
				$	2,366,945	Delayed Draw Term Loan Commitment
New Investment	June 3, 2025	International Cybernetics Company, LP	Provider of road condition assessment services and equipment'	$	4,748,003	Senior Secured – First Lien
				$	3,561,003	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	105,113	Equity
Add-On Investment	June 4, 2025	Eskola LLC*	Provider of commercial re-roofing services	$	56,349	Equity
New Investment	June 6, 2025	Solid Surface Care Holdings, Inc.	National commercial surface care and restoration company	$	5,694,273	Senior Secured – First Lien
				$	4,270,705	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	377,437	Equity
Add-On Investment	June 27, 2025	Monitorus Holding, LLC*	Provider of media monitoring and evaluation services	$	1,722,767	Senior Secured – First Lien

________________________________

*Existing portfolio company

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

Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Gain (Loss)		Instrument Type
Full Repayment	April 8, 2025	Florachem Corporation	Distiller and supplier of natural citrus, pine, and specialty inputs	$	9,725,000	$	—	Senior Secured – First Lien
				$	53,078	$	—	Delayed Draw Term Loan Commitment
				$	100,000	$	—	Revolver Commitment
Full Realization				$	514,107	$	151,674	Equity
Restructured Investment	April 9, 2025	J.R. Watkins, LLC	Manufacturer and distributor of home and personal care products	$	—	$	(1,132,576)	Equity
Full Repayment	May 29, 2025	Anne Lewis Strategies, LLC	Provider of tech-enabled donor targeting and strategic digital fundraising services for non-profit and political organizations.	$	11,801,341	$	—	Senior Secured – First Lien

________________________________

*Existing portfolio company

Events Subsequent to June 30, 2025

The Company's management has evaluated subsequent events through August 6, 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 June 30, 2025:

Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	July 1, 2025	Bart & Associates, LLC*	Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry	$	303,740	Equity
Add-On Investment	July 28, 2025	Equine Network, LLC*	Hosts competitions and provides services for the U.S. equine industry	$	2,067,538	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	Project EC**	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	May 5, 2025	MedLearning Group, LLC*	Provider of continuing medical education services	$	2,981,213	Senior Secured – First Lien

________________________________

*Existing portfolio company

** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company's quarterly report for the quarter ending September 30, 2025.

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

Activity Type		Date		Company Name		Company Description		Proceeds Received			Instrument Type
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

Credit Facility

The outstanding balance under the Credit Facility as of August 6, 2025 was $162.2 million.

Distributions Declared

On July 2, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of July 2025, August 2025, and September 2025 as follows:

	Ex-Dividend	Record	Payment	Amount per
Declared	Date	Date	Date	Share
7/2/2025	7/31/2025	7/31/2025	8/15/2025	$	0.1333
7/2/2025	8/29/2025	8/29/2025	9/15/2025	$	0.1333
7/2/2025	9/30/2025	9/30/2025	10/15/2025	$	0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 7, 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 398771. Starting approximately two hours after the conclusion of the call, a replay will be available through Thursday, August 21, 2025 by dialing (877) 481-4010 and entering passcode 52804. 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

	June 30, 2025
	(unaudited)		December 31, 2024
ASSETS
Controlled investments at fair value (amortized cost of $32,732,016 and $17,934,808, respectively)	$	13,046,041	$	7,652,436
Non-controlled, non-affiliated investments, at fair value (amortized cost of $957,687,672 and $943,853,898, respectively)		972,839,633		945,845,252
Cash and cash equivalents		39,991,690		20,058,594
Receivable for sales and repayments of investments		399,106		335,689
Interest receivable		5,869,109		4,947,765
Income tax receivable		2,045,697		1,301,965
Other receivables		17,500		87,995
Related party receivable		—		3,687
Deferred offering costs		109,059		—
Prepaid expenses		447,891		666,866
Total Assets	$	1,034,765,726	$	980,900,249
LIABILITIES
Notes Payable	$	172,310,201	$	99,444,355
Credit Facility payable		160,622,440		172,314,315
SBA-guaranteed debentures		305,373,199		321,251,939
Dividends payable		3,787,873		3,663,233
Management fees payable		4,279,441		4,034,109
Income incentive fees payable		2,052,194		3,109,560
Interest payable		6,529,422		5,281,343
Related party payable		1,088,287		—
Unearned revenue		676,290		548,626
Administrative services payable		415,810		393,513
Other accrued expenses and liabilities		2,259,679		937,316
Total Liabilities	$	659,394,836	$	610,978,309
Commitments and contingencies (Note 7)
Net Assets	$	375,370,890	$	369,921,940
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,416,148 and 27,481,118 shares issued and outstanding, respectively)	$	28,416	$	27,481
Paid-in capital		392,309,339		379,549,272
Total distributable loss		(16,966,865)		(9,654,813)
Net Assets	$	375,370,890	$	369,921,940
Total Liabilities and Net Assets	$	1,034,765,726	$	980,900,249
Net Asset Value Per Share	$	13.21	$	13.46

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended				For the six months ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
INVESTMENT INCOME
From controlled investments:
Interest income	$	—	$	—	$	—	$	81,636
From non-controlled, non-affiliated investments
Interest income		24,654,205		25,164,944		48,781,321		50,121,795
Other income		1,042,397		1,461,255		1,866,939		2,419,517
Total Investment Income	$	25,696,602	$	26,626,199	$	50,648,260	$	52,622,948
OPERATING EXPENSES
Management fees	$	4,279,441	$	3,852,233	$	8,334,167	$	7,704,466
Valuation fees		38,507		35,711		196,396		192,218
Administrative services expenses		474,284		481,261		923,582		972,162
Income incentive fees		2,158,075		2,542,530		4,294,566		5,051,640
Professional fees		312,808		196,205		730,839		535,832
Directors' fees		93,250		114,250		204,500		222,500
Insurance expense		98,668		125,489		195,758		250,478
Interest expense and other fees		8,680,015		8,116,497		16,943,034		15,884,070
Income tax expense		428,951		574,037		928,498		944,756
Other general and administrative expenses		500,302		417,867		718,653		663,142
Total Operating Expenses	$	17,064,301	$	16,456,080	$	33,469,993	$	32,421,264
Income incentive fee waiver		(928,926)		(1,622,542)		(2,171,769)		(1,826,893)
Total Operating Expenses, net of fee waivers	$	16,135,375	$	14,833,538	$	31,298,224	$	30,594,371
Net Investment Income	$	9,561,227	$	11,792,661	$	19,350,036	$	22,028,577
Net realized loss on controlled investments	$	(1,132,576)	$	—	$	(1,132,576)	$	—
Net realized gain (loss) on non-controlled, non-affiliated investments		272,549		1,992,482		(5,694,672)	$	(18,392,249)
Net realized loss on foreign currency translations		(20,003)		(29,789)		(49,658)		(54,895)
Net change in unrealized appreciation on controlled investments		1,290,491		138,189		1,345,767		674,759
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments		143,176		(5,724,870)		1,281,193		17,257,150
Net change in unrealized appreciation (depreciation) on foreign currency translations		30,546		(5,887)		38,865		(9,489)
Benefit for taxes on net unrealized depreciation on investments		—		381,500		—		188,893
Net Increase in Net Assets Resulting from Operations	$	10,145,410	$	8,544,286	$	15,138,955	$	21,692,746
Net Investment Income Per Share—basic and diluted	$	0.34	$	0.48	$	0.69	$	0.90
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.36	$	0.35	$	0.54	$	0.89
Weighted Average Shares of Common Stock Outstanding—basic and diluted		28,412,849		24,733,966		28,009,969		24,429,804
Distributions Per Share—basic and diluted	$	0.40	$	0.41	$	0.80	$	0.81

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

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

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

	For the six months ended
	June 30, 2025		June 30, 2024
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	15,138,955	$	21,692,746
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(78,230,159)		(94,854,139)
Proceeds from sales and repayments of investments		46,638,287		71,824,905
Net change in unrealized appreciation on investments		(2,626,960)		(17,931,909)
Net change in unrealized (appreciation) depreciation on foreign currency translations		(38,865)		9,490
Increase in investments due to PIK		(2,492,551)		(1,555,868)
Amortization of premium and accretion of discount, net		(1,437,223)		(1,383,624)
Deferred tax benefit		—		(188,893)
Amortization of loan structure fees		634,745		544,379
Amortization of deferred financing costs		303,468		222,747
Amortization of discount on Notes Payable		31,434		—
Amortization of loan fees on SBA-guaranteed debentures		371,260		550,059
Net realized loss on investments		6,827,248		18,392,249
Changes in other assets and liabilities
Increase in interest receivable		(921,344)		(2,780,809)
Increase in income tax receivable		(743,732)		(585,741)
Decrease (increase) in other receivables		70,495		(92,671)
Decrease in related party receivables		3,687		—
Decrease in prepaid expenses		218,975		193,937
Increase (decrease) in management fees payable		245,332		(2,066,303)
Decrease in income incentive fees payable		(1,057,366)		(1,450,096)
Increase in administrative services payable		22,297		24,023
Increase in interest payable		1,248,079		7,256
Increase in related party payable		1,088,287		337,500
Increase in unearned revenue		127,664		174,518
Increase in other accrued expenses and liabilities		1,322,363		268,894
Net Cash Used in Operating Activities	$	(13,255,624)	$	(8,647,350)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	$	13,153,366	$	25,777,185
Sales load for common stock issued		(197,464)		(386,987)
Offering costs paid for common stock issued		(303,959)		(133,010)
Stockholder distributions paid		(22,326,367)		(16,233,650)
Proceeds from issuance of Notes Payable		75,000,000		—
Discount from issuance of Notes Payable		(770,250)		—
Financing costs paid on Notes Payable		(1,698,806)		—
Repayments of SBA-guaranteed debentures		(16,250,000)		—
Financing costs paid on Credit Facility		—		(66,348)
Borrowings under Credit Facility		104,400,000		104,400,000
Repayments of Credit Facility		(117,817,800)		(94,967,800)
Net Cash Provided by Financing Activities	$	33,188,720	$	18,389,390
Net Increase in Cash and Cash Equivalents	$	19,933,096	$	9,742,040
Cash and Cash Equivalents Balance at Beginning of Period	$	20,058,594	$	26,125,741
Cash and Cash Equivalents Balance at End of Period	$	39,991,690	$	35,867,781
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	14,354,048	$	14,559,629
Income and excise tax paid		1,672,230		1,530,497
Increase in distributions payable		124,640		3,463,267
Increase (decrease) in deferred offering costs		109,059		(7,312)
Exchange of investments		1,663,301		8,256,411

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

	Three Months Ended		Six Months Ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Net investment income	$9,561,227	$11,792,661	$19,350,036	$22,028,577
Income tax expense	428,951	574,037	928,498	944,756
Core net investment income	$9,990,178	$12,366,698	$20,278,534	$22,973,333

Per share amounts:
Net investment income per share	$0.34	$0.48	$0.69	$0.90
Core net investment income per share	$0.35	$0.50	$0.72	$0.94

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

	Three Months Ended		Six Months Ended
	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024
Net investment income	$9,561,227	$11,792,661	$19,350,036	$22,028,577
Net realized loss on investments	(860,027)	1,992,482	(6,827,248)	(18,392,249)
Net realized loss on foreign currency translation	(20,003)	(29,789)	(49,658)	(54,895)
Total realized net investment income	$8,681,197	$13,755,354	$12,473,130	$3,581,433

Per share amounts:
Net investment income per share	$0.34	$0.48	$0.69	$0.90
Realized net investment income per share	$0.31	$0.55	$0.45	$0.15

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SOURCE Stellus Capital Investment Corporation

Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2025