Press Release

Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2026

November 9, 2026 at 4:52 PM EST

HOUSTON, Nov. 9, 2026 /PRNewswire/ -- (PR Newswire) – Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended September 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended September 30, 2026, in which we earned U.S. GAAP net investment income of $0.25 per share, core net investment income of $0.26 per share and net realized income of $0.25 per share. During the quarter, we funded $38 million of investments and received $30 million of repayments, resulting in a total portfolio of $966 million at fair value. I'm also pleased to report that we have remained active under our Share Repurchase Program, repurchasing 493,537 shares at an average price of $8.36 per share. These repurchases were accretive to NAV by approximately $0.08 per share during the third quarter."

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

	Three Months Ended				Nine Months Ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
	Amount	Per Share	Amount	Per Share	Amount	Per Share	Amount	Per Share
Net investment income	$7.16	$0.25	$9.14	$0.32	$22.19	$0.77	$28.48	$1.01
Core net investment income⁽¹⁾	7.47	0.26	9.65	0.34	22.89	0.80	29.93	1.06
Net realized gain (loss) on investments	—	—	2.86	0.10	(6.49)	(0.23)	(3.96)	(0.14)
Net realized loss on foreign currency translation	(0.03)	—	(0.01)	—	(0.03)	—	(0.06)	—
Loss on debt extinguishment	—	—	(0.16)	(0.01)	—	—	(0.16)	(0.01)
Benefit for taxes on realized loss on investments in taxable subsidiaries	—	—	—	—	—	—	—	—
Total realized income⁽²⁾	$7.13	$0.25	$11.83	$0.41	$15.67	$0.54	$24.30	$0.86
Distributions	(7.11)	(0.25)	(11.43)	(0.40)	(26.74)	(0.93)	(33.89)	(1.20)
Net unrealized change in depreciation on investments	(13.50)	(0.47)	(5.14)	(0.18)	(4.15)	(0.14)	(2.51)	(0.08)
Net unrealized change in (depreciation) appreciation on foreign currency translation	—	—	—	—	(0.03)	—	0.04	—
Net increase in net assets resulting from operations	($6.37)	($0.22)	$6.69	$0.23	$11.49	$0.40	$21.83	$0.78
Weighted average shares outstanding		28,465,675		28,480,472		28,758,889		28,168,527

(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, 2026	December 31, 2025
Investments at fair value	$966.1	$1,007.6
Total assets	$973.9	$1,041.3
Net assets	$349.3	$371.2
Shares outstanding	28,179,374	28,947,254
Net asset value per share	$12.40	$12.82



	Three Months Ended		Nine Months Ended
	September 30, 2026	September 30, 2025	September 30, 2026	September 30, 2025
New investments	$37.8	$63.8	$83.5	$142.0
Repayments of investments	(30.3)	(39.0)	(121.2)	(85.6)
Net activity	$7.5	$24.8	($37.7)	$56.4

	As of	As of
	September 30, 2026	December 31, 2025
Number of portfolio company investments	119	115
Number of debt investments	99	100

Weighted average yield of debt and other income producing investments ⁽³⁾
Cash	8.3 %	8.5 %
Payment-in-kind ("PIK")	0.5 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	9.1 %	9.3 %

Weighted average yield of total investments⁽⁴⁾
Cash	7.8 %	7.9 %
PIK	0.4 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	8.5 %	8.7 %

(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, 2026 and 2025 totaled $22.4 million and $26.3 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended September 30, 2026 and 2025 totaled $15.2 million and $17.6 million, respectively. For the same respective periods, base management fees totaled $4.3 million and $4.4 million, income incentive fees totaled $0.5 million and $2.2 million, fees and expenses related to our borrowings totaled $8.3 million and $8.9 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.7 million and $0.6 million, income tax totaled $0.3 million and $0.5 million and other expenses totaled $1.1 million and $1.0 million. The Company waived $0.0 million and $0.5 million of income incentive fees due to the total return limitation pursuant to the provisions of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended September 30, 2026 and 2025, respectively, for net operating expenses of $15.2 million and $17.1 million, respectively.

Net investment income was $7.2 million and $9.1 million, or $0.25 and $0.32 per common share based on 28,465,675 and 28,480,472 weighted average common shares outstanding for the three months ended September 30, 2026 and 2025, 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, 2026 and 2025 was $7.5 million and $9.7 million, or $0.26 and $0.34 per share, respectively.

For the three months ended September 30, 2026 and 2025, the Company's investment portfolio had a net change in unrealized depreciation of ($13.5) million and ($5.1) million, respectively, and the Company had net realized gains of $0.0 million and $2.9 million, respectively.

Net (decrease) increase in net assets resulting from operations totaled ($6.4) million and $6.7 million, or ($0.22) and $0.23 per common share, based on 28,465,675 and 28,480,472 weighted average common shares outstanding for the three months ended September 30, 2026 and 2025, respectively.

Liquidity and Capital Resources

As of September 30, 2026, 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 both September 30, 2026 and December 31, 2025, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million.

As of September 30, 2026 and December 31, 2025, the Company had $230.6 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.

Distributions

For the three months ended September 30, 2026 and 2025, the Company declared aggregate distributions of $0.25 per share and $0.40 per share, respectively ($7.1 million and $11.4 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. 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, 2026:

Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	July 2, 2026	Blade Landscape Investments, LLC*	Regional provider of commercial landscaping services	$	5,250	Equity
New Investment	July 16, 2026	Emergent Software	Microsoft-centric data, AI, and cloud IT services partner	$	3,197,377	Senior Secured – First Lien
				$	2,664,481	Delayed Draw Term Loan Commitment
				$	500,000	Revolver Commitment
				$	306,732	Equity
New Investment	August 5, 2026	LJ Welding Automation Ltd.	Manufacturer of material handling and welding automation systems	$	7,693,688	Senior Secured – First Lien
				$	500,000	Revolver Commitment
				$	303,470	Equity
Add-On Investment	August 6, 2026	Carolina Topco Holdings, LP*	Commercial flooring maintenance and restoration services	$	46,082	Equity
Add-On Investment	August 13, 2026	Cathay Hypnos LLC*	Reseller of CPAP machines and accessories	$	62,566	Equity
Add-On Investment	August 17, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	644,133	Senior Secured – First Lien
New Investment	August 26, 2026	Revenew International LLC	Provider of contract compliance and cost recovery solutions	$	7,500,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	446,377	Equity
Add-On Investment	September 1, 2026	B&A Partners Holding, LLC*	Government IT services	$	156,372	Equity
Add-On Investment	September 11, 2026	Naumann Hobbs Holdings, L.P.*	Material handling equipment dealer and aftermarket parts and services provider	$	138,280	Equity
New Investment	September 14, 2026	Strategic Maintenance Solutions, LLC	A provider of enterprise asset management and industrial Internet of Things solutions.	$	10,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	231,818	Equity
Add-On Investment	September 18, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	276,057	Senior Secured – First Lien
Add-On Investment	September 18, 2026	Centeotl Co-Invest B, LP*	Manufacturer of frozen burritos and breakfast snacks	$	15,058	Equity
Add-On Investment	September 28, 2026	Monarch Behavioral Therapy, LLC*	Provider of center-based applied behavioral analysis therapy services	$	8,029	Unsecured
___________________________________________
*Existing portfolio company

The Company realized investments in the following portfolio companies during the three months ended September 30, 2026:

Activity Type	Date	Company Name	Company Description	Proceeds Received		Instrument Type
Full Repayment	July 1, 2026	General LED OPCO, LLC	Provider of LED lighting systems and modules	$	4,500,000	Senior Secured – Second Lien
Full Repayment	July 27, 2026	MacKenzie-Childs Acquisition, Inc.	Lifestyle home décor brand	$	86,331	Senior Secured – First Lien
Full Repayment	July 30, 2026	U.S. Expediters, LLC	Reseller of CPAP machines and accessories	$	14,236,513	Senior Secured – First Lien

Events Subsequent to September 30, 2026

The Company's management has evaluated subsequent events through November 9, 2026. 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, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-on Investment	October 2, 2026	Eskola LLC*	Provider of commercial re-roofing services	$	167,505	Senior Secured – First Lien
				$	79,263	Delayed Draw Term Loan Commitment
Add-On Investment	October 7, 2026	GS HVAM Intermediate, LLC*	Specialized food distributor	$	1,442,585	Revolver Commitment
New Investment	October 16, 2026	MSCP Fulfillment Holdings, Inc.	Third-party logistics and e-commerce fulfillment provider	$	6,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	125,253	Equity
Add-On Investment	October 19, 2026	Venbrook Group*	An independent insurance services broker	$	233,728	Senior Secured – First Lien
Add-on Investment	November 5, 2026	Fidus Investments Holdings, L.P.*	Provider of outsourced electronic product development and engineering services	$	267,820	Equity

*Existing portfolio company

The Company realized investments in the following portfolio companies subsequent to September 30, 2026:

Activity Type

Date

Company Name

Company Description

Proceeds Received

Realized Loss

Instrument Type

Full Realization

October 1, 2026

Exigo, LLC

Software platform for direct

selling organizations

2,979,866

(5,606,201)

Senior Secured – First Lien

(377,535)

Equity

Credit Facility

The outstanding balance under the Credit Facility as of November 9, 2026 was $212.0 million.

SBA-guaranteed Debentures

The outstanding balance under the SBA-guaranteed debentures as of November 9, 2026 was $276.5 million.

Distributions Declared

On October 9, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of October 2026, November 2026, and December 2026 as follows:


	Record	Payment	Amount per
Declared	Date	Date	Share
October 9, 2026	October 30, 2026	November 13, 2026	$	0.0833
October 9, 2026	November 30, 2026	December 15, 2026	$	0.0833
October 9, 2026	December 31, 2026	January 15, 2027	$	0.0833

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, November 10, 2026 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 157435. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, November 18, 2026 by dialing (877) 481-4010 and entering passcode 54725. 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. Stellus Capital Management, LLC was acquired by Ridgepost Capital, LLC on June 22, 2026. Ridgepost Capital, LLC's parent company, Ridgepost Capital, Inc., is a reporting company listed on the New York Stock Exchange. Please reference Ridgepost Capital, Inc.'s periodic filings with the Securities and Exchange Commission for additional information.

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

	(unaudited)
	September 30, 2026		December 31, 2025
ASSETS
Controlled investments, at fair value (amortized cost of $34,691,986 and $33,603,521, respectively)	$	8,765,829	$	14,953,132
Non-controlled, affiliated investments, at fair value (amortized cost of $30,106,186 and $4,806,660, respectively)		29,587,186		3,750,674
Non-controlled, non-affiliated investments, at fair value (amortized cost of $924,192,888 and $987,729,505, respectively)		927,792,799		988,919,589
Cash and cash equivalents		2,324,400		25,050,156
Receivable for sales and repayments of investments		510,690		581,509
Interest receivable		4,397,392		6,375,996
Income tax receivable		—		1,385,387
Other receivables		135,180		85,000
Related party receivable		—		20
Deferred offering costs		75,000		—
Prepaid expenses		294,749		150,843
Total Assets	$	973,883,225	$	1,041,252,306
LIABILITIES
2030 Notes Payable	$	123,038,555	$	122,671,409
Credit Facility payable		227,901,577		233,167,360
SBA-guaranteed debentures		257,459,825		295,984,063
Dividends payable		2,347,342		3,858,669
Management fees payable		4,355,563		4,442,705
Income incentive fees payable		1,335,939		2,317,429
Interest payable		5,708,964		6,138,076
Related party payable		685,547		—
Unearned revenue		411,244		582,007
Administrative services payable		556,639		539,338
Income tax payable		363,615		—
Other accrued expenses and liabilities		385,804		372,294
Total Liabilities	$	624,550,614	$	670,073,350
Commitments and contingencies (Note 7)
Net Assets	$	349,332,611	$	371,178,956
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,179,374 and 28,947,254 shares issued and outstanding, respectively)	$	28,179	$	28,947
Paid-in capital		391,236,554		397,829,793
Total distributable loss		(41,932,122)		(26,679,784)
Net Assets	$	349,332,611	$	371,178,956
Total Liabilities and Net Assets	$	973,883,225	$	1,041,252,306
Net Asset Value Per Share	$	12.40	$	12.82

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended				For the nine months ended
	September 30, 2026		September 30, 2025		September 30, 2026		September 30, 2025
INVESTMENT INCOME
From non-controlled, affiliated investments
Interest income	$	5,333	$	—	$	6,394	$	—
Payment-in-kind interest income		334,060		—		965,670		—
From non-controlled, non-affiliated investments
Interest income		19,552,119		23,634,587		59,029,084		69,923,357
Payment-in-kind interest income		1,306,887		1,378,166		5,033,682		3,870,717
Other income		1,198,050		1,262,956		2,957,425		3,129,895
Total Investment Income	$	22,396,449	$	26,275,709	$	67,992,255	$	76,923,969
OPERATING EXPENSES
Management fees	$	4,355,563	$	4,401,305	$	13,141,690	$	12,735,472
Valuation fees		160,576		172,364		371,690		368,760
Administrative services expenses		658,084		592,409		1,857,439		1,515,991
Income incentive fees		581,482		2,166,047		839,054		6,460,613
Professional fees		399,798		395,098		1,500,999		1,125,937
Directors' fees		96,250		93,250		309,750		297,750
Insurance expense		103,679		99,248		298,792		295,006
Interest expense and other fees		8,342,992		8,949,075		25,780,000		25,892,109
Income tax expense		307,096		515,686		697,252		1,444,184
Other general and administrative expenses		231,516		227,037		1,056,643		945,690
Total Operating Expenses	$	15,237,036	$	17,611,519	$	45,853,309	$	51,081,512
Income incentive fee waiver		—		(471,251)		(49,644)		(2,643,020)
Total Operating Expenses, net of fee waivers	$	15,237,036	$	17,140,268	$	45,803,665	$	48,438,492
Net Investment Income	$	7,159,413	$	9,135,441	$	22,188,590	$	28,485,477
Net realized loss on controlled investments	$	—	$	—	$	—	$	(1,132,576)
Net realized gain (loss) on non-controlled, non-affiliated investments		3,126		2,867,155		(6,489,987)		(2,827,517)
Net realized loss on foreign currency translations		(31,026)		(9,422)		(29,173)		(59,080)
Loss on debt extinguishment		—		(164,762)		—		(164,762)
Net change in unrealized (depreciation) appreciation on controlled investments		(2,807,606)		51,367		(7,275,768)		1,397,134
Net change in unrealized (depreciation) appreciation on non- controlled, affiliated investments		(3,453,325)		—		15,576		—
Net change in unrealized (depreciation) appreciation on non- controlled, non-affiliated investments		(7,243,749)		(5,187,426)		3,106,604		(3,906,233)
Net change in unrealized (depreciation) appreciation on foreign currency translations		(712)		(325)		(27,687)		38,540
Net (Decrease) Increase in Net Assets Resulting from Operations	$	(6,373,879)	$	6,692,028	$	11,488,155	$	21,830,983
Net Investment Income Per Share—basic and diluted	$	0.25	$	0.32	$	0.77	$	1.01
Net (Decrease) Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	(0.22)	$	0.23	$	0.40	$	0.78
Weighted Average Shares of Common Stock Outstanding— basic and diluted		28,465,675		28,480,472		28,758,889		28,168,527
Distributions Per Share—basic and diluted	$	0.25	$	0.40	$	0.93	$	1.20

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, 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
Provision for taxes on unrealized appreciation on investments	—		—		—		—		—
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)
Provision for taxes on unrealized appreciation on investments	—		—		—		—		—
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

Balances at December 31, 2025	28,947,254	$	28,947	$	397,829,793	$	(26,679,784)	$	371,178,956
Net investment income	—		—		—		7,498,028		7,498,028
Net realized gain on investments	—		—		—		750,410		750,410
Net realized gain on foreign currency translation	—		—		—		3,664		3,664
Net change in unrealized depreciation on investments	—		—		—		(6,548,346)		(6,548,346)
Net change in unrealized depreciation on foreign currency translations	—		—		—		(48,020)		(48,020)
Distributions from net investment income	—		—		—		(9,839,171)		(9,839,171)
Balances at March 31, 2026	28,947,254	$	28,947	$	397,829,793	$	(34,863,219)	$	362,995,521
Net investment income	—		—		—		7,531,149		7,531,149
Net realized loss on investments	—		—		—		(7,243,523)		(7,243,523)
Net realized loss on foreign currency translation	—		—		—		(1,811)		(1,811)
Net change in unrealized appreciation on investments	—		—		—		15,899,438		15,899,438
Net change in unrealized appreciation on foreign currency translations	—		—		—		21,045		21,045
Distributions from net investment income	—		—		—		(9,796,191)		(9,796,191)
Repurchase of common stock, net of commissions⁽¹⁾	(274,343)		(274)		(2,447,408)		—		(2,447,682)
Balances at June 30, 2026	28,672,911	$	28,673	$	395,382,385	$	(28,453,112)	$	366,957,946
Net investment income	—		—		—		7,159,413		7,159,413
Net realized gain on investments	—		—		—		3,126		3,126
Net realized loss on foreign currency translation	—		—		—		(31,026)		(31,026)
Net change in unrealized depreciation on investments	—		—		—		(13,504,680)		(13,504,680)
Net change in unrealized depreciation on foreign currency translations	—		—		—		(712)		(712)
Distributions from net investment income	—		—		—		(7,105,131)		(7,105,131)
Repurchase of common stock, net of commissions⁽¹⁾	(493,537)		(494)		(4,145,831)		—		(4,146,325)
Balances at September 30, 2026	28,179,374	$	28,179	$	391,236,554	$	(41,932,122)	$	349,332,611

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

	For the nine months ended
	September 30, 2026		September 30, 2025
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	11,488,155	$	21,830,983
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(83,478,197)		(141,983,167)
Proceeds from sales and repayments of investments		121,218,577		85,635,632
Net change in unrealized depreciation on investments		4,153,588		2,509,099
Net change in unrealized depreciation (appreciation) on foreign currency translations		27,687		(37,811)
Increase in investments due to payment-in-kind income		(5,033,682)		(3,870,717)
Amortization of premium and accretion of discount, net		(1,977,242)		(2,172,972)
Amortization of loan structure fees		768,598		954,033
Amortization of deferred financing costs		408,543		447,751
Amortization of discount on Notes Payable		101,633		63,395
Amortization of premium on Notes Payable		(93,029)		—
Amortization of loan fees on SBA-guaranteed debentures		475,762		553,695
Net realized loss on investments		6,489,987		3,960,093
Loss on debt extinguishment		—		164,762
Changes in other assets and liabilities
Decrease (increase) in interest receivable		1,978,604		(2,099,921)
Decrease (increase) in income tax receivable		1,385,387		(220,233)
Increase in other receivables		(50,180)		(11,116)
Decrease (increase) in related party receivables		20		(18,813)
(Increase) decrease in prepaid expenses		(143,906)		385,232
(Decrease) increase in management fees payable		(87,142)		367,196
Decrease in income incentive fees payable		(981,490)		(467,527)
Increase in administrative services payable		17,301		113,626
(Decrease) increase in interest payable		(429,112)		631,032
Increase in related party payable		685,547		136,535
(Decrease) increase in unearned revenue		(170,763)		92,011
Increase in income tax payable		363,615		—
Increase (decrease) in other accrued expenses and liabilities		13,510		(445,942)
Net Cash Provided by (Used in) Operating Activities	$	57,131,771	$	(33,483,144)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	$	—	$	20,588,960
Sales load for common stock issued		—		(308,998)
Offering costs paid for common stock issued		(75,000)		(417,138)
Payment for repurchase of common stock		(6,563,291)		—
Commission for repurchase of common stock		(30,716)		—
Stockholder distributions paid		(28,251,820)		(33,689,984)
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		(50,000)		(2,475,306)
Repayments of SBA-guaranteed debentures		(39,000,000)		(26,000,000)
Financing costs paid on Credit Facility		(35,000)		(1,525,014)
Borrowings under Credit Facility		150,100,000		198,900,000
Repayments of Credit Facility		(155,951,700)		(207,501,700)
Net Cash (Used in) Provided by Financing Activities	$	(79,857,527)	$	22,448,570
Net Decrease in Cash and Cash Equivalents	$	(22,725,756)	$	(11,034,574)
Cash and Cash Equivalents Balance at Beginning of Period	$	25,050,156	$	20,058,594
Cash and Cash Equivalents Balance at End of Period	$	2,324,400	$	9,024,020
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	24,547,855	$	24,940,287
Income and excise tax refund, net		(1,051,750)		1,664,417
Exchange of investments		8,759,438		1,663,301

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

	Three Months Ended		Six Months Ended
	September 30, 2026	September 30, 2025	September 30, 2026	September 30, 2025
Net investment income	$7,159,413	$9,135,441	$22,188,590	$28,485,477
Income tax expense	307,096	515,686	697,252	1,444,184
Core net investment income	$7,466,509	$9,651,127	$22,885,842	$29,929,661

Per share amounts:
Net investment income per share	$0.25	$0.32	$0.77	$1.01
Core net investment income per share	$0.26	$0.34	$0.80	$1.06


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

	Three Months Ended		Six Months Ended
	September 30, 2026	September 30, 2025	September 30, 2026	September 30, 2025
Net investment income	$7,159,413	$9,135,441	$22,188,590	$28,485,477
Net realized gain (loss) on investments	3,126	2,867,155	(6,489,987)	(3,960,093)
Net realized loss on foreign currency translation	(31,026)	(9,422)	(29,173)	(59,080)
Total realized net investment income	$7,131,513	$11,828,412	$15,669,430	$24,301,542

Per share amounts:
Net investment income per share	$0.25	$0.32	$0.77	$1.01
Realized net investment income per share	$0.25	$0.42	$0.54	$0.86

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SOURCE Stellus Capital Investment Corporation