NASDAQ: OFS

OFS Capital Corp

CIK 0001487918

Small by assets Assets $304M as of Aug 23, 2026

We are an externally managed, closed-end, non-diversified management investment company and have elected to be treated as a BDC under the 1940 Act, which imposes certain investment restrictions on our portfolio. Our investment objective is to provide our stockholders with both current income and… About this business →

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8-K Filed Aug 28, 2026 · Period ending Aug 28, 2026

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8-K Filed Aug 11, 2026 · Period ending Aug 11, 2026

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10-Q Filed Jul 31, 2026 · Period ending Jun 30, 2026

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8-K Filed Jul 30, 2026 · Period ending Jul 28, 2026

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8-K Filed Jun 10, 2026 · Period ending Jun 10, 2026

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10-Q Filed May 1, 2026 · Period ending Mar 31, 2026

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8-K Filed Apr 30, 2026 · Period ending Apr 28, 2026

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10-K Filed Mar 3, 2026 · Period ending Dec 31, 2025

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10-K Filed Mar 4, 2025 · Period ending Dec 31, 2024

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424B5 Filed Sep 15, 2020

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424B5 Filed Sep 14, 2020

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Latest financial statements

From 10-Q filed Jul 31, 2026 (period ending Jun 30, 2026). As printed on the EDGAR/iXBRL face — not generated by the model.

As filed

Consolidated Statements of Operations (Unaudited)

(Dollar amounts in thousands, except per share data)

Description Three months ended June 30, 2026 Three months ended June 30, 2025 Six months ended June 30, 2026 Six months ended June 30, 2025
Investment income
Interest income:
Non-control/non-affiliate investments 6,213 9,621 13,611 19,201
Affiliate investments 13
Total interest income 6,213 9,621 13,624 19,201
Payment-in-kind interest and dividend income:
Non-control/non-affiliate investments 85 398 172 786
Affiliate investments 514 297 1,014 584
Total payment-in-kind interest and dividend income 599 695 1,186 1,370
Dividend income:
Non-control/non-affiliate investments 11 10 22 21
Affiliate investments 874
Total dividend income 11 10 896 21
Fee income:
Non-control/non-affiliate investments 14 150 35 179
Total investment income 6,837 10,476 15,741 20,771
Expenses
Interest expense 3,734 3,842 7,623 7,700
Base management fee 1,340 1,479 2,775 3,028
Income Incentive Fee 821 408 1,151
Professional fees 345 403 708 839
Administration fee 367 382 693 776
Other expenses 246 266 485 529
Total expenses before base management fee waiver 6,032 7,193 12,692 14,023
Base management fee waiver (see Note 3) (203) (423)
Total expenses, net of base management fee waiver 5,829 7,193 12,269 14,023
Net investment income 1,008 3,283 3,472 6,748
Net realized and unrealized gain (loss) on investments
Net realized loss on non-control/non-affiliate investments (6,018) (4,191) (17,319) (6,778)
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments (2,848) 309 (6,563) (7,611)
Net unrealized appreciation (depreciation) on affiliate investments 13,429 (9,179) 14,867 (9,523)
Deferred tax (expense) benefit on net unrealized appreciation (depreciation) (4) 147 (348) 246
Net gain (loss) on investments 4,559 (12,914) (9,363) (23,666)
Loss on extinguishment of debt (130)
Net increase (decrease) in net assets resulting from operations 5,567 (9,631) (6,021) (16,918)
Earnings (loss) per common share basic and diluted 0.42 (0.72) (0.44) (1.26)
Basic and diluted weighted-average common shares outstanding 13,398,078 13,398,078 13,398,078 13,398,078

Consolidated Statements of Assets and Liabilities (Unaudited)

(Dollar amounts in thousands, except per share data)

Description June 30, 2026 December 31, 2025
Assets
Investments, at fair value:
Non-control/non-affiliate investments (amortized cost of $247,171 and $300,748, respectively) 181,930 242,070
Affiliate investments (amortized cost of $28,666 and $27,652, respectively) 115,826 99,945
Total investments, at fair value (amortized cost of $275,837 and $328,400, respectively) 297,756 342,015
Cash and cash equivalents 3,982 3,359
Interest and dividends receivable 525 719
Receivable for investments sold 280
Prepaid expenses and other assets 1,921 613
Total assets 304,464 346,706
Liabilities
Revolving lines of credit 36,800 55,450
Unsecured Notes (net of deferred debt issuance costs of $2,308 and $2,812, respectively) 146,692 162,188
Interest payable 2,459 2,269
Distribution payable 2,277
Payable to adviser and affiliates (Note 3) 1,692 2,264
Other liabilities 1,932 1,347
Total liabilities 191,852 223,518
Commitments and contingencies (Note 6)
Net assets
Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,398,078 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively 134 134
Paid-in capital in excess of par 174,195 174,195
Total accumulated losses (61,717) (51,141)
Total net assets 112,612 123,188
Total liabilities and net assets 304,464 346,706
Number of common shares outstanding 13,398,078 13,398,078
Net asset value per share 8.41 9.19

Consolidated Statements of Cash Flows (Unaudited)

(Dollar amounts in thousands)

Description Six months ended June 30, 2026 Six months ended June 30, 2025
Cash flows from operating activities
Net decrease in net assets resulting from operations (6,021) (16,918)
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities:
Net realized loss on investments, net of taxes 17,319 6,778
Loss on extinguishment of debt 130
Net unrealized (appreciation) depreciation on investments, net of deferred taxes (7,956) 16,888
Amortization of Net Loan Fees (245) (395)
Amendment fees received 42 58
Payment-in-kind interest and dividend income (1,186) (1,407)
Accretion of interest income on Structured Finance Securities (4,533) (5,844)
Amortization of deferred debt issuance costs 722 743
Purchase and origination of portfolio investments (4,256) (22,918)
Proceeds from principal payments on portfolio investments 9,955 8,165
Proceeds from sale or redemption of portfolio investments 30,512 18,413
Proceeds from distributions received from portfolio investments 4,859 6,934
Changes in operating assets and liabilities:
Interest and dividend receivable 194 458
Receivable for investments sold (280) 9,247
Interest payable 190 (36)
Payable to adviser and affiliates (572) (286)
Payable for investments purchased (1,802)
Other assets and liabilities 271 153
Net cash provided by operating activities 39,145 18,231
Cash flows from financing activities
Distributions paid to common stockholders (2,278) (9,111)
Borrowings under revolving lines of credit 75,200 15,250
Repayments under revolving lines of credit (93,850) (20,200)
Redemption of Unsecured Notes (16,000)
Payment of deferred financing costs (1,594)
Net cash used in financing activities (38,522) (14,061)
Net increase in cash and cash equivalents 623 4,170
Cash and cash equivalents
Beginning of period 3,359 6,068
End of period 3,982 10,238
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest 6,711 6,993

Amounts as printed on the EDGAR/iXBRL face — (Dollar amounts in thousands, except per share data); (Dollar amounts in thousands). Labels, columns, and figures are the filing face, not a GAAP stencil. Interactive statements & notes on EDGAR ↗

About OFS Capital Corp

Source: Item 1 (Business) from the 10-K filed March 3, 2026. Description as filed by the company with the SEC.

Item 1. Business

GENERAL

We are an externally managed, closed-end, non-diversified management investment company and have elected to be treated as a BDC under the 1940 Act, which imposes certain investment restrictions on our portfolio. Our investment objective is to provide our stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. Our investment strategy is to maintain a credit investment portfolio focused primarily on middle-market companies in the United States. We use the term “middle-market” to refer to companies that may exhibit one or more of the following characteristics: number of employees between 150 and 2,000; revenues between $15 million and $300 million; annual EBITDA between $5 million and $50 million; generally, private companies owned by private equity firms or owners/operators; and enterprise value between $10 million and $500 million. For additional information about how we define the middle-market, see “—Investment Criteria/Guidelines.”

Our investment strategy focuses primarily on investments in middle-market companies in the United States, including investments in senior secured loans, which are comprised of first lien, second lien and unitranche loans, as well as investments in subordinated loans and, to a lesser extent, common stock, preferred stock and other equity securities. Our investments may be directly originated or may be purchased on a secondary basis in the U.S. leveraged loan market for Broadly Syndicated Loans (as defined below). As a BDC, we must not acquire any assets other than “qualifying assets” as specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant SEC rules, the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States. Conversely, we may invest up to 30% of our portfolio in opportunistic investments not otherwise eligible under BDC regulations. Specifically, as part of this 30% basket, we may consider investments in investment funds that are operating pursuant to certain exceptions to the 1940 Act and in advisers to similar investment funds, as well as in debt or equity of middle-market portfolio companies located outside of the United States, and debt and equity of public companies that do not meet the definition of eligible portfolio companies because their market capitalization of publicly traded equity securities exceeds the levels provided for in the 1940 Act. We have made, and may continue to make, opportunistic investments in Structured Finance Securities and other non-qualifying assets (discussed below), consistent with our investment strategy. As of December 31, 2025 and 2024, approximately 81% and 80% of our investments were qualifying assets, respectively.

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As of December 31, 2025, the fair value of our debt investment portfolio totaled $179.8 million in 34 portfolio companies, of which 95% and 5% were comprised of first lien loans and second lien loans, respectively. As of December 31, 2025, the fair value of our equity investments totaled $100.6 million in 15 portfolio companies, and the fair value of our 14 Structured Finance Security investments totaled $61.6 million.

We execute on our investment strategy, in part, through OFSCC-FS, which established the Natixis Facility on February 18, 2026. On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility. All liens securing the BNP Facility were released upon such repayment. On a stand-alone basis, OFSCC-FS held approximately $125.0 million and $151.0 million in total assets as of December 31, 2025 and 2024, respectively, which accounted for approximately 36% and 35% of our consolidated total assets, respectively.

We also execute our investment strategy, in part, by investing in Structured Finance Securities. We believe OFS Advisor is uniquely positioned, given its expertise in structured credit and managing CLOs, to make opportunistic investments in Structured Finance Securities, through which we aim to target attractive risk-adjusted returns. During the years ended December 31, 2025 and 2024, we purchased $19.6 million and $27.4 million of Structured Finance Securities, respectively.

We historically had executed our investment strategy, in part, through SBIC I LP, a former licensee under the SBA’s SBIC program. On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $31.9 million, and, on April 17, 2024, surrendered its license to operate as a SBIC.

A BDC is generally not permitted to incur indebtedness unless, immediately after such borrowing, it has an asset coverage ratio for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of its assets). However, Section 61(a)(2) of the 1940 Act permits BDCs to be subject to a minimum asset coverage ratio of 150%, if specific

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conditions are satisfied, when issuing senior securities (i.e., the amount of debt may not exceed 66 2/3% of the value of its assets).

On May 3, 2018, our Board, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) thereof, approved the application of the reduced asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 3, 2019, our minimum required asset coverage ratio decreased from 200% to 150%. See “Part 1, Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.”

Consistent with our strategy to maintain a leveraged portfolio primarily comprised of credit investments, our total outstanding debt of $220.5 million and $248.4 million resulted in a statutory asset coverage ratio of 156% and 169% as of December 31, 2025 and December 31, 2024, respectively.

We have elected to be treated for tax purposes as a RIC under Subchapter M of the Code. To continue to qualify for tax treatment as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. Pursuant to this election, we generally are not required to pay corporate-level taxes on any income we distribute to our stockholders as dividends.

Our investment activities are managed by OFS Advisor and supervised by our Board, a majority of whom are independent of us, OFS Advisor and its affiliates. Under the Investment Advisory Agreement, we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed funds and including assets owned by any consolidated entity) as well as an incentive fee based on our investment performance. OFS Advisor also serves as the investment adviser to other funds, including HPCI and OCCI. Additionally, OFS Advisor provides advisory and sub-advisory services to various funds, including: (i) CMFT Securities Investments, LLC, a wholly owned subsidiary of CIM Real Estate Finance Trust, Inc., a corporation that qualifies as a real estate investment trust; and (ii) CIM Real Assets & Credit Fund, an externally managed registered investment company under the 1940 Act that operates as an interval fund and invests primarily in a combination of real estate, credit and related investments. See “