Press Release

Stellus Capital Investment Corporation Reports Results for its Second Fiscal Quarter Ended June 30, 2026

August 10, 2026 at 4:53 PM EDT

HOUSTON, Aug. 10, 2026 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended June 30, 2026.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended June 30, 2026, in which we earned both U.S. GAAP net investment income and core net investment income of $0.26 per share and net realized income of $0.01 per share. During the quarter, we funded $18 million of investments and received $49 million of repayments, resulting in a total portfolio of $968 million at fair value. I'm also pleased to report that since we announced our Share Repurchase Program in March, we have repurchased 467,317 shares at an average price of $8.50 per share."

FINANCIAL HIGHLIGHTS

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

	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
	Amount	Per Share	Amount	Per Share	Amount	Per Share	Amount	Per Share
Net investment income	$7.53	$0.26	$9.56	$0.34	$15.03	$0.52	$19.35	$0.69
Core net investment income⁽¹⁾	7.56	0.26	9.99	0.35	15.42	0.53	20.28	0.72
Net realized loss on investments	(7.24)	(0.25)	(0.86)	(0.03)	(6.49)	(0.22)	(6.83)	(0.24)
Net realized loss on foreign currency translation	—	—	(0.02)	—	—	—	(0.05)	—
Total realized income⁽²⁾	$0.29	$0.01	$8.68	$0.31	$8.54	$0.30	$12.47	$0.45
Distributions	(9.80)	(0.34)	(11.36)	(0.40)	(19.64)	(0.68)	(22.45)	(0.80)
Net unrealized change in appreciation on investments	15.90	0.55	1.44	0.05	9.35	0.32	2.63	0.09
Net unrealized change in appreciation (depreciation) on foreign currency translation	0.02	—	0.03	—	(0.03)	—	0.04	—
Net increase in net assets resulting from operations	$16.21	$0.56	$10.15	$0.36	$17.86	$0.62	$15.14	$0.54
Weighted average shares outstanding		28,869,028		28,412,849		28,907,925		28,009,969


(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, 2026	December 31, 2025
Investments at fair value	$968.2	$1,007.6
Total assets	$982.1	$1,041.3
Net assets	$367.0	$371.2
Shares outstanding	28,672,911	28,947,254
Net asset value per share	$12.80	$12.82

	Three Months Ended		Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
New investments	$18.0	$22.8	$45.7	$78.2
Repayments of investments	(49.2)	(31.6)	(90.9)	(46.6)
Net activity	($31.2)	($8.8)	($45.2)	$31.6

	As of	As of
	June 30, 2026	December 31, 2025
Number of portfolio company investments	116	115
Number of debt investments	98	100

Weighted average yield of debt and other income producing investments ⁽³⁾
Cash	7.9 %	8.5 %
Payment-in-kind ("PIK")	0.8 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	9.0 %	9.3 %

Weighted average yield of total investments⁽⁴⁾
Cash	7.4 %	7.9 %
PIK	0.7 %	0.5 %
Fee amortization	0.3 %	0.3 %
Total	8.4 %	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 June 30, 2026 and 2025 totaled $22.3 million and $25.7 million, respectively, most of which was interest income from portfolio investments.

Gross operating expenses for the three months ended June 30, 2026 and 2025 totaled $14.8 million and $17.1 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $4.3 million, income incentive fees totaled $0.2 million and $2.2 million, fees and expenses related to our borrowings totaled $8.5 million and $8.7 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.0 million and $0.4 million and other expenses totaled $1.1 million and $1.0 million. The Company waived $0.0 million and $1.0 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 June 30, 2026 and 2025, respectively, for net operating expenses of $14.8 million and $16.1 million, respectively.

Net investment income was $7.5 million and $9.6 million, or $0.26 and $0.34 per common share based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 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 June 30, 2026 and 2025 was $7.6 million and $10.0 million, or $0.26 and $0.35 per share, respectively.

For the three months ended June 30, 2026 and 2025, the Company's investment portfolio had a net change in unrealized appreciation of $15.9 million and $1.4 million, respectively, and the Company had net realized losses of ($7.2) million and ($0.9) million, respectively.

Net increase in net assets resulting from operations totaled $16.2 million and $10.1 million, or $0.56 and $0.36 per common share, based on 28,869,028 and 28,412,849 weighted average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively.

Liquidity and Capital Resources

As of June 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 June 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 June 30, 2026 and December 31, 2025, the Company had $222.2 million and $236.6 million in outstanding borrowings under the Credit Facility, respectively.

On March 3, 2026, the Company announced that its Board authorized a program for the purpose of repurchasing up to $20,0 million of its shares of common stock (the "Repurchase Program"). Under the Repurchase Program, the Company may, but is not obligated to, repurchase its outstanding common stock in the open market from time to time, provided that the Company complies with the requirements under its Code of Ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended, including certain price, market volume and timing constraints. Unless amended or extended by the Board, the Repurchase Program will expire on the earlier of March 2, 2027 or when $20.0 million of the Company's outstanding shares of common stock have been repurchased.

During the three months ended June 30, 2026, the Company repurchased 274,343 shares of its common stock under the Repurchase Program for an aggregate purchase price of $2,447,682, including commissions, at a weighted average net repurchase price of $8.92 per share.

Distributions

For the three months ended June 30, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share, respectively ($9.8 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 June 30, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 1, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
New Investment	April 3, 2026	VeloSource Purchaser, LLC	Locum tenens staffing agency	$	200,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	18,605	Equity
Add-On Investment	April 13, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	1,256,415	Senior Secured – First Lien
New Investment	April 13, 2026	Solomon AcquisitionCo, LLC	An innovative process automation and digital systems integrator	$	4,196,557	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	186,807	Equity
New Investment	April 27, 2026	OW RSG LLC	Manufacturer of walk-in coolers, freezers, and refrigeration systems	$	4,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	324,074	Equity
Add-On Investment	April 28, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	502,566	Senior Secured – First Lien
Add-On Investment	April 28, 2026	Advanced Barrier Extrusions, LLC*	Manufacturer of flexible packaging	$	330,250	Senior Secured – First Lien
Add-On Investment	June 1, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	736,152	Senior Secured – First Lien
Add-On Investment	June 26, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	352,052	Senior Secured – First Lien
Add-On Investment	June 29, 2026	Monarch Behavioral Therapy, LLC*	Provider of center-based applied behavioral analysis therapy services	$	29,822	Convertible Promissory Note
Add-On Investment	June 30, 2026	Valor Buyco LLC*	Provider of dispatched road services	$	120,000	Delayed Draw Term Loan Commitment

*Existing portfolio company

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

Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Gain		Instrument Type
Full Repayment	April 17, 2026	Sales Benchmark Index, LLC	Provider of revenue growth management consulting services for private equity-owned and large enterprise clients	$	11,968,656	$	—	Senior Secured – First Lien
				$	443,820	$	—	Revolver Commitment
Full Realization				$	486,925	$	(178,805)	Equity
Full Repayment	April 24, 2026	Equine Network, LLC	Provider of equine competitions, content, products, and services	$	9,043,164	$	—	Senior Secured – First Lien
				$	97,900	$	—	Delayed Draw Term Loan Commitment
				$	166,667	$	—	Revolver Commitment
Full Repayment	April 30, 2026	Cerebro Buyer, LLC	Manufacturer of single-use electrodes for medical procedures	$	4,526,683	$	—	Senior Secured – First Lien
				$	376,902	$	—	Delayed Draw Term Loan Commitment
Full Repayment	May 21, 2026	Premiere Digital Services, Inc.	Provider of digital media services to the entertainment industry.	$	12,038,926	$	—	Senior Secured – First Lien
Full Repayment	June 30, 2026	Tilley Company	Distributor of specialty chemicals, oils, and lubricants into the food & beverage, lubricants, flavor and fragrances, personal care, and other chemicals end-markets	$	44,110	$	—	Senior Secured – First Lien
				$	13,043	$	—	Revolver Commitment

Events Subsequent to June 30, 2026

The Company's management has evaluated subsequent events through August 10, 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 June 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

*Existing portfolio company

The Company realized investments in the following portfolio companies subsequent to June 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

Credit Facility

The outstanding balance under the Credit Facility as of August 10, 2026 was $211.7 million.

SBA Licensing

On July 14, 2026, we received a license from the SBA for the SBIC III subsidiary, which allows us to contribute $125.0 million of equity and draw up to $250.0 million of SBA-guaranteed debentures, subject to the increased family of funds limit of $475.0 million across all of our SBIC subsidiaries and applicable SBA regulations and policies.

Distributions Declared

On July 16, 2026, the Board of Directors of the Company declared a regular monthly dividend for each of July 2026, August 2026, and September 2026 as follows:


	Record	Payment	Amount per
Declared	Date	Date	Share
July 16, 2026	July 31, 2026	August 14, 2026	$	0.0833
July 16, 2026	August 31, 2026	September 15, 2026	$	0.0833
July 16, 2026	September 30, 2026	October 15, 2026	$	0.0833

Share Repurchase Program

Since June 30, 2026, we repurchased 192,974 shares of our common stock under the Repurchase Program at a weighted-average purchase price of $7.95 per share.

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, August 11, 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 218557. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, August 25, 2026 by dialing (877) 481-4010 and entering passcode 54324. 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 U.S. 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)
	June 30, 2026		December 31, 2025
ASSETS
Controlled investments, at fair value (amortized cost of $34,691,986 and $33,603,521, respectively)	$	11,573,435	$	14,953,132
Non-controlled, affiliated investments, at fair value (amortized cost of $29,323,333 and $4,806,660, respectively)		32,257,658		3,750,674
Non-controlled, non-affiliated investments, at fair value (amortized cost of $913,612,730 and $987,729,505, respectively)		924,415,324		988,919,589
Cash and cash equivalents		5,138,950		25,050,156
Receivable for sales and repayments of investments		2,166,620		581,509
Interest receivable		5,973,539		6,375,996
Income tax receivable		—		1,385,387
Other receivables		66,430		85,000
Related party receivable		—		20
Deferred offering costs		75,000		—
Prepaid expenses		457,821		150,843
Total Assets	$	982,124,777	$	1,041,252,306
LIABILITIES
2030 Notes Payable	$	122,897,963	$	122,671,409
Credit Facility payable		219,221,522		233,167,360
SBA-guaranteed debentures		257,304,593		295,984,063
Dividends payable		3,248,641		3,858,669
Management fees payable		4,393,771		4,442,705
Income incentive fees payable		889,986		2,317,429
Interest payable		5,569,922		6,138,076
Unearned revenue		496,577		582,007
Administrative services payable		517,253		539,338
Income tax payable		56,518		—
Other accrued expenses and liabilities		570,085		372,294
Total Liabilities	$	615,166,831	$	670,073,350
Commitments and contingencies (Note 7)
Net Assets	$	366,957,946	$	371,178,956
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,672,911 and 28,947,254 shares issued and outstanding, respectively)	$	28,673	$	28,947
Paid-in capital		395,382,385		397,829,793
Total distributable loss		(28,453,112)		(26,679,784)
Net Assets	$	366,957,946	$	371,178,956
Total Liabilities and Net Assets	$	982,124,777	$	1,041,252,306
Net Asset Value Per Share	$	12.80	$	12.82

STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	For the three months ended				For the six months ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
INVESTMENT INCOME
From non-controlled, affiliated investments
Interest income	$	1,016	$	—	$	1,061	$	—
Payment-in-kind interest income		559,310		—		631,610		—
From non-controlled, non-affiliated investments
Interest income		19,864,060		23,134,800		39,811,025		46,285,437
Payment-in-kind interest income		1,159,038		1,519,405		3,392,735		2,495,884
Other income		719,448		1,042,397		1,759,375		1,866,939
Total Investment Income	$	22,302,872	$	25,696,602	$	45,595,806	$	50,648,260
OPERATING EXPENSES
Management fees	$	4,393,770	$	4,279,441	$	8,786,127	$	8,334,167
Valuation fees		44,995		38,507		211,114		196,396
Administrative services expenses		550,235		474,284		1,199,355		923,582
Income incentive fees		150,863		2,158,075		257,572		4,294,566
Professional fees		283,474		312,808		1,101,201		730,839
Directors' fees		84,250		93,250		213,500		204,500
Insurance expense		102,057		98,668		195,113		195,758
Interest expense and other fees		8,585,467		8,680,015		17,437,008		16,943,034
Income tax expense		29,685		428,951		390,156		928,498
Other general and administrative expenses		585,510		500,302		825,127		718,653
Total Operating Expenses	$	14,810,306	$	17,064,301	$	30,616,273	$	33,469,993
Income incentive fee waiver		(38,583)		(928,926)		(49,644)		(2,171,769)
Total Operating Expenses, net of fee waivers	$	14,771,723	$	16,135,375	$	30,566,629	$	31,298,224
Net Investment Income	$	7,531,149	$	9,561,227	$	15,029,177	$	19,350,036
Net realized loss on controlled investments	$	—	$	(1,132,576)	$	—	$	(1,132,576)
Net realized (loss) gain on non-controlled, non-affiliated investments		(7,243,523)		272,549		(6,493,113)		(5,694,672)
Net realized (loss) gain on foreign currency translations		(1,811)		(20,003)		1,853		(49,658)
Net change in unrealized (depreciation) appreciation on controlled investments		(922,785)		1,290,491		(4,468,162)		1,345,767
Net change in unrealized appreciation on non-controlled, affiliated investments		3,913,525		—		3,468,901		—
Net change in unrealized appreciation on non-controlled, non-affiliated investments		12,908,698		143,176		10,350,353		1,281,193
Net change in unrealized appreciation (depreciation) on foreign currency translations		21,045		30,546		(26,975)		38,865
Net Increase in Net Assets Resulting from Operations	$	16,206,298	$	10,145,410	$	17,862,034	$	15,138,955
Net Investment Income Per Share—basic and diluted	$	0.26	$	0.34	$	0.52	$	0.69
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted	$	0.56	$	0.36	$	0.62	$	0.54
Weighted Average Shares of Common Stock Outstanding—basic and diluted		28,869,028		28,412,849		28,907,925		28,009,969
Distributions Per Share—basic and diluted	$	0.34	$	0.40	$	0.68	$	0.80

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

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

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

	For the six months ended
	June 30, 2026		June 30, 2025
Cash Flows from Operating Activities
Net increase in net assets resulting from operations	$	17,862,034	$	15,138,955
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments		(45,678,450)		(78,230,159)
Proceeds from sales and repayments of investments		90,888,206		46,638,287
Net change in unrealized appreciation on investments		(9,351,092)		(2,626,960)
Net change in unrealized depreciation (appreciation) on foreign currency translations		26,975		(38,865)
Increase in investments due to payment-in-kind income		(3,392,735)		(2,492,551)
Amortization of premium and accretion of discount, net		(1,383,610)		(1,437,223)
Amortization of loan structure fees		511,422		634,745
Amortization of deferred financing costs		270,866		303,468
Amortization of discount on Notes Payable		67,121		31,434
Amortization of premium on Notes Payable		(61,432)		—
Amortization of loan fees on SBA-guaranteed debentures		320,530		371,260
Net realized loss on investments		6,493,113		6,827,248
Changes in other assets and liabilities
Decrease (increase) in interest receivable		402,457		(921,344)
Decrease (increase) in income tax receivable		1,385,387		(743,732)
Decrease in other receivables		18,570		70,495
Decrease in related party receivables		20		3,687
(Increase) decrease in prepaid expenses		(306,978)		218,975
(Decrease) increase in management fees payable		(48,934)		245,332
Decrease in income incentive fees payable		(1,427,443)		(1,057,366)
(Decrease) increase in administrative services payable		(22,085)		22,297
(Decrease) increase in interest payable		(568,154)		1,248,079
Increase in related party payable		—		1,088,287
(Decrease) increase in unearned revenue		(85,430)		127,664
Increase in income tax payable		56,518		—
Increase in other accrued expenses and liabilities		197,791		1,322,363
Net Cash Provided by (Used in) Operating Activities	$	56,174,667	$	(13,255,624)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock	$	—	$	13,153,366
Sales load for common stock issued		—		(197,464)
Offering costs paid for common stock issued		(75,000)		(303,959)
Payment for repurchase of common stock		(2,436,708)		—
Commission for repurchase of common stock		(10,975)		—
Stockholder distributions paid		(20,245,390)		(22,326,367)
Financing costs paid on Notes Payable		(50,000)		(1,698,806)
Repayments of SBA-guaranteed debentures		(39,000,000)		(16,250,000)
Borrowings under Credit Facility		92,200,000		104,400,000
Repayments of Credit Facility		(106,467,800)		(117,817,800)
Net Cash (Used in) Provided by Financing Activities	$	(76,085,873)	$	33,188,720
Net (Decrease) Increase in Cash and Cash Equivalents	$	(19,911,206)	$	19,933,096
Cash and Cash Equivalents Balance at Beginning of Period	$	25,050,156	$	20,058,594
Cash and Cash Equivalents Balance at End of Period	$	5,138,950	$	39,991,690
Supplemental and Non-Cash Activities
Cash paid for interest expense	$	16,896,905	$	14,354,048
Income and excise tax refund, net		(1,051,749)		1,672,230
Exchange of investments		8,670,888		1,663,301

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

	Three Months Ended		Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Net investment income	$7,531,149	$9,561,227	$15,029,177	$19,350,036
Income tax expense	29,685	428,951	390,156	928,498
Core net investment income	$7,560,834	$9,990,178	$15,419,333	$20,278,534

Per share amounts:
Net investment income per share	$0.26	$0.34	$0.52	$0.69
Core net investment income per share	$0.26	$0.35	$0.53	$0.72

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

	Three Months Ended		Six Months Ended
	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Net investment income	$7,531,149	$9,561,227	$15,029,177	$19,350,036
Net realized loss on investments	(7,243,523)	(860,027)	(6,493,113)	(6,827,248)
Net realized (loss) gain on foreign currency translation	(1,811)	(20,003)	1,853	(49,658)
Total realized net investment income	$285,815	$8,681,197	$8,537,917	$12,473,130

Per share amounts:
Net investment income per share	$0.26	$0.34	$0.52	$0.69
Realized net investment income per share	$0.01	$0.31	$0.30	$0.45

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SOURCE Stellus Capital Investment Corporation