Q2 2026 Stellus Capital Investment Corp Earnings Call

August 11, 2026

Operator: Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's conference call to report financial results for its second fiscal quarter ended 30 June 2026. This conference is being recorded today, 11 August 2026. It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr. Ladd, you may begin your conference.

Speaker #1: Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's conference call.

Speaker #1: To report financial results for its second fiscal quarter ended June 30, 2026. This conference is being recorded today, August 11, 2026. It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation.

Speaker #1: Mr. Ladd, you may begin your conference.

Speaker #2: Okay. Thank you, Jenny, and good morning, everyone. Thank you for joining the call. Welcome to our conference call covering the quarter ended June 30, 2026.

Robert T. Ladd: Okay. Thank you, Jenny, and good morning, everyone. Thank you for joining the call. Welcome to our conference call covering the quarter ended 30 June 2026. We have six topics to cover this morning. First, the financial results for the second quarter, portfolio and asset quality, the outlook for Q3 and beyond, an update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and opportunities for growth. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements. Todd, I'll turn it over to you.

Robert Ladd: Okay. Thank you, Jenny, and good morning, everyone. Thank you for joining the call. Welcome to our conference call covering the quarter ended 30 June 2026. We have six topics to cover this morning. First, the financial results for the second quarter, portfolio and asset quality, the outlook for Q3 and beyond, an update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and opportunities for growth. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements. Todd, I'll turn it over to you.

Speaker #2: We have six topics to cover this morning. First, the financial results for the second quarter; portfolio and asset quality; and the outlook for Q3 and beyond.

Speaker #2: An update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and opportunities for growth. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements.

Speaker #2: Todd, I'll turn it over to you.

Speaker #3: Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation, and that any unauthorized broadcast of this call in any form is strictly prohibited.

W. Todd Huskinson: Thank you, Rob. I would like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation, and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and PIN provided in our press release announcing this call. I would also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward-looking statements unless required by law.

Todd Huskinson: Thank you, Rob. I would like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation, and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and PIN provided in our press release announcing this call. I would also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update any forward-looking statements unless required by law.

Speaker #3: Audio replay of the call will be available by using the telephone number and pen provided in our press release announcing this call. I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information.

Speaker #3: Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections.

Speaker #3: We will not update any forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at (713) 292-5400.

W. Todd Huskinson: To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at 713-292-5400. Now I will cover operating results for the quarter, but would like to start with our life-to-date activity. Since our IPO in November of 2012, we have invested approximately $2.9 billion in more than 225 portfolio companies while navigating multiple market and credit cycles. Over this time, we have received approximately $1.9 billion of repayments while maintaining disciplined credit performance. We believe our track record, our underwriting process, and deep sponsor relationships provide us with meaningful competitive advantages, reflecting more than 20 years of working together as an investment team and nearly 14 years of operating as a public BDC. Our focus remains on preserving capital while generating attractive risk-adjusted returns for our shareholders.

Todd Huskinson: To obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at 713-292-5400. Now I will cover operating results for the quarter, but would like to start with our life-to-date activity. Since our IPO in November of 2012, we have invested approximately $2.9 billion in more than 225 portfolio companies while navigating multiple market and credit cycles. Over this time, we have received approximately $1.9 billion of repayments while maintaining disciplined credit performance. We believe our track record, our underwriting process, and deep sponsor relationships provide us with meaningful competitive advantages, reflecting more than 20 years of working together as an investment team and nearly 14 years of operating as a public BDC. Our focus remains on preserving capital while generating attractive risk-adjusted returns for our shareholders.

Speaker #3: Now I'll cover operating results for the quarter, but would like to start with our life-to-date activity. Since our IPO in November of 2012, we've invested approximately $2.9 billion in more than 225 portfolio companies while navigating multiple market and credit cycles.

Speaker #3: Over this time, we've received approximately $1.9 billion of repayments while maintaining disciplined credit performance. We believe our track record, our underwriting process, and our deep sponsor relationships provide us with meaningful competitive advantages.

Speaker #3: Reflecting more than 20 years of working together as an investment team, and nearly 14 years of operating as a public BDC. Our focus remains on preserving capital while generating attractive, risk-adjusted returns for our shareholders.

Speaker #3: And we think our long-term credit performance, as well as our 14-year track record of return on equity, demonstrates the effectiveness of our underwriting process and our portfolio management approach.

W. Todd Huskinson: We think our long-term credit performance, as well as our 14-year track record of return on equity, demonstrates the effectiveness of our underwriting process and our portfolio management approach. To that point, we have generated a life-to-date return on equity of 9.5%, which includes all realized and unrealized gains and losses across the portfolio to date. We have also paid $349 million of dividends to our investors since our IPO, representing $18.83 per share over this period. Now turning to operating results. In Q2, we generated $0.26 per share of GAAP net investment income and core net investment income, which excludes estimated excise taxes, was also $0.26 per share. Overall, for the quarter, net asset value increased by $0.26 per share or 2% sequentially driven by three primary factors.

Todd Huskinson: We think our long-term credit performance, as well as our 14-year track record of return on equity, demonstrates the effectiveness of our underwriting process and our portfolio management approach. To that point, we have generated a life-to-date return on equity of 9.5%, which includes all realized and unrealized gains and losses across the portfolio to date. We have also paid $349 million of dividends to our investors since our IPO, representing $18.83 per share over this period. Now turning to operating results. In Q2, we generated $0.26 per share of GAAP net investment income and core net investment income, which excludes estimated excise taxes, was also $0.26 per share. Overall, for the quarter, net asset value increased by $0.26 per share or 2% sequentially driven by three primary factors.

Speaker #3: To that point, we've generated a life-to-date return on equity of 9.5%, which includes all realized and unrealized gains and losses across the portfolio to date.

Speaker #3: We've also paid $349 million of dividends to our investors since our IPO, representing $18.83 per share over this period. Now, turning to operating results.

Speaker #3: In the second quarter, we generated $26 per share of gap net investment income, and core net investment income, which excludes estimated excise taxes, was also $26 per share.

Speaker #3: Overall, for the quarter, net asset value increased by $0.26 per share, or 2% sequentially, driven by three primary factors. First, net realized and unrealized gains contributed $0.30 per share, primarily driven by write-ups related to company-specific performance.

W. Todd Huskinson: First, net realized and unrealized gains contributed $0.30 per share, primarily driven by write-ups related to company-specific performance. Second, our share repurchase program was accretive to NAV, adding approximately $0.05 per share. Finally, dividend payments exceeded earnings by $0.08 per share as we continued distributing the remaining spillover income from 2025. I would like to note that these figures are in line with the preliminary results we previously reported. With respect to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $968 million across 116 portfolio companies, a decrease from $990 million across 116 portfolio companies as of 31 March 2026. During Q2, we invested a total of $18 million, of which $8.7 million was in three new portfolio companies and $9.3 million were add-ons to existing portfolio companies.

Todd Huskinson: First, net realized and unrealized gains contributed $0.30 per share, primarily driven by write-ups related to company-specific performance. Second, our share repurchase program was accretive to NAV, adding approximately $0.05 per share. Finally, dividend payments exceeded earnings by $0.08 per share as we continued distributing the remaining spillover income from 2025. I would like to note that these figures are in line with the preliminary results we previously reported. With respect to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $968 million across 116 portfolio companies, a decrease from $990 million across 116 portfolio companies as of 31 March 2026. During Q2, we invested a total of $18 million, of which $8.7 million was in three new portfolio companies and $9.3 million were add-ons to existing portfolio companies.

Speaker #3: Second, our share repurchase program was accretive to NAV, adding approximately $0.05 per share. And finally, dividend payments exceeded earnings by $0.08 per share, as we continued distributing the remaining spillover income from 2025.

Speaker #3: I'd like to note that these figures are in line with the preliminary results we previously reported. With respect to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $968 million, across 116 portfolio companies.

Speaker #3: This represents a decrease from $990 million across 116 portfolio companies as of March 31, 2026. During the second quarter, we invested a total of $18 million, of which $8.7 million was in three new portfolio companies and $9.3 million were add-ons to existing portfolio companies.

Speaker #3: We also received five full repayments totaling $38.7 million, $500,000 from one equity realization—which resulted in a realized loss of $200,000—and received $10 million of other repayments at par.

W. Todd Huskinson: We also received five full repayments totaling $38.7 million, $500,000 from one equity realization, which resulted in a realized loss of $200,000 and received $10 million of other repayments at par. At 30 June, 100% of our loans were secured and 92% were priced at floating rates. The average loan per company is $8.9 million and the largest overall investment is $26 million, both at fair value. For the 98 companies that comprise our loan portfolio, the weighted average EBITDA level was $15.6 million at quarter end, and the weighted average normalized leverage ratio was 4.2 times for the performing loans. Substantially all of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly below plan.

Todd Huskinson: We also received five full repayments totaling $38.7 million, $500,000 from one equity realization, which resulted in a realized loss of $200,000 and received $10 million of other repayments at par. At 30 June, 100% of our loans were secured and 92% were priced at floating rates. The average loan per company is $8.9 million and the largest overall investment is $26 million, both at fair value. For the 98 companies that comprise our loan portfolio, the weighted average EBITDA level was $15.6 million at quarter end, and the weighted average normalized leverage ratio was 4.2 times for the performing loans. Substantially all of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly below plan.

Speaker #3: As of June 30, 100% of our loans were secured, and 92% were priced at floating rates. The average loan per company is $8.9 million, and the largest overall investment is $26 million, both at fair value.

Speaker #3: For the 98 companies that comprise our loan portfolio, the weighted average EBITDA level was $15.6 million at quarter-end, and the weighted average normalized leverage quotient was 4.2 times for the performing loans.

Speaker #3: Substantially all of our portfolio companies are backed by a private equity firm. Overall, our asset quality is slightly below plan. At fair value, 74% of our portfolio is rated at 1 or 2, or on or ahead of plan, and 26% of the loan portfolio is marked in the investment category of 3 or below, meaning not meeting plan or expectations.

W. Todd Huskinson: At fair value, 74% of our portfolio is rated at 1 or 2 or on or ahead of plan, and 26% of the loan portfolio is marked at an investment category of 3 or below, meaning not meeting plan or expectations. We removed one loan from nonaccrual status during the quarter and did not add any new loans. Currently, we have loans to five portfolio companies on nonaccrual, which comprise 8.5% of the total cost and 5.4% of the fair value of the total investment portfolio, respectively, which represent a decrease from the prior quarter at cost and a slight increase at fair value. While the level of nonaccruals and risk grade 3 loans remains higher than we would like, reducing both that number of these investments and exposure to them remains a key priority.

Todd Huskinson: At fair value, 74% of our portfolio is rated at 1 or 2 or on or ahead of plan, and 26% of the loan portfolio is marked at an investment category of 3 or below, meaning not meeting plan or expectations. We removed one loan from nonaccrual status during the quarter and did not add any new loans. Currently, we have loans to five portfolio companies on nonaccrual, which comprise 8.5% of the total cost and 5.4% of the fair value of the total investment portfolio, respectively, which represent a decrease from the prior quarter at cost and a slight increase at fair value. While the level of nonaccruals and risk grade 3 loans remains higher than we would like, reducing both that number of these investments and exposure to them remains a key priority.

Speaker #3: We removed one loan from non-accrual status during the quarter and did not add any new loans. Currently, we have loans to five portfolio companies on non-accrual, which comprise 8.5% of the total cost and 5.4% of the fair value of the total investment portfolio, respectively. This represents a decrease from the prior quarter at cost and a slight increase at fair value.

Speaker #3: While the level of non-accruals and risk rate 3 loans remains higher than we would like, reducing both that number of these investments and the exposure to them remains a key priority.

Speaker #3: We're actively working each position and continue to make progress, either exiting these investments or returning them to accrual status. Now I'd like to turn the call back over to Rob to cover a number of additional topics.

W. Todd Huskinson: We are actively working each position and continue to make progress, either exiting these investments or returning them to accrual status. Now I would like to turn the call back over to Rob to cover a number of the additional topics.

Todd Huskinson: We are actively working each position and continue to make progress, either exiting these investments or returning them to accrual status. Now I would like to turn the call back over to Rob to cover a number of the additional topics.

Speaker #2: Okay. Thank you, Todd. As we look ahead to the third quarter of 2026, I'll cover four topics. The outlook for the quarter and beyond.

Robert T. Ladd: Okay. Thank you, Todd. As we look ahead to Q3 2026, I will cover four topics: the outlook for the quarter and beyond, an update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and again, opportunities for growth. In terms of outlook, as of today, our portfolio is approximately $960 million across 117 portfolio companies. For the balance of the quarter, we expect repayments to slightly outpace new fundings, thus ending the quarter slightly down from where we are today. However, we have seen a meaningful improvement in the origination pipeline across the Stellus platform since beginning the quarter.

Robert Ladd: Okay. Thank you, Todd. As we look ahead to Q3 2026, I will cover four topics: the outlook for the quarter and beyond, an update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and again, opportunities for growth. In terms of outlook, as of today, our portfolio is approximately $960 million across 117 portfolio companies. For the balance of the quarter, we expect repayments to slightly outpace new fundings, thus ending the quarter slightly down from where we are today. However, we have seen a meaningful improvement in the origination pipeline across the Stellus platform since beginning the quarter.

Speaker #2: An update on our advisor joining Ridgepost Capital, our $20 million share buyback program, and again, opportunities for growth. In terms of outlook, as of today, our portfolio is approximately $960 million, across 117 portfolio companies.

Speaker #2: For the balance of the quarter, we expect repayments to slightly outpace, again, new fundings. Does that mean we end the quarter slightly down from where we are today?

Speaker #2: However, we have seen a meaningful improvement in the origination pipeline across the sellers' platform since the beginning of the quarter. While market conditions remain fluid and the timing around future deal closings is never certain, we're hopeful that growth in origination activities will increase toward the end of the year.

Robert T. Ladd: While market conditions remain fluid and the timing around future deal closings is never certain, we're hopeful gross origination activity is set to increase toward the end of the year, which should have positive implications on net portfolio growth for the company over the next several quarters. As mentioned on previous calls, we have been reducing the amount of spillover income and have expected that over time our dividend would approximate our net investment income. We have now reached that point and we have set our dividend to $0.25 per quarter per share for the Q3. To that point, based on the current trajectory of NII, as well as our outlook for short-term rates and spreads, we expect to be well-positioned to earn our $0.25 quarterly dividend or more moving forward. Next, about Ridgepost.

Robert Ladd: While market conditions remain fluid and the timing around future deal closings is never certain, we're hopeful gross origination activity is set to increase toward the end of the year, which should have positive implications on net portfolio growth for the company over the next several quarters. As mentioned on previous calls, we have been reducing the amount of spillover income and have expected that over time our dividend would approximate our net investment income. We have now reached that point and we have set our dividend to $0.25 per quarter per share for the Q3. To that point, based on the current trajectory of NII, as well as our outlook for short-term rates and spreads, we expect to be well-positioned to earn our $0.25 quarterly dividend or more moving forward. Next, about Ridgepost.

Speaker #2: Which should have positive implications on net portfolio growth for the company. Over the next several quarters. As mentioned on previous calls, we have been reducing the amount of spillover income and have expected that over time our dividend would approximate our net investment income.

Speaker #2: We have now reached that point, and we have set our dividend to $0.25 per share per quarter for the third quarter. To that point, based on the current trajectory of NII, as well as our outlook for short-term rates and spreads, we expect to be well-positioned to earn our $0.25 quarterly dividend or more moving forward.

Speaker #2: Next, about Ridgepost. On June 22, our external advisor, Stellus Capital Management, officially joined the Ridgepost Capital platform. As a reminder, Ridgepost Capital is a leading alternative investment manager in the middle and lower middle market, currently managing more than $50 billion of AUM across private equity, private credit, and venture.

Robert T. Ladd: On 22 June, our external advisor, Stellus Capital Management, officially joined the Ridgepost Capital platform. As a reminder, Ridgepost Capital is a leading alternative investment manager in the middle and lower middle market, currently managing more than $50 billion of AUM across private equity, private credit, and venture. We're very pleased with how the transition is going and early integration is well underway. We're coordinating in many areas, including investment origination and management, investor relations, fundraising, and operations. Since joining Ridgepost Capital, one of the most promising opportunities has been the ability to leverage the firm's broader sponsor relationships, specifically Ridgepost Capital lower middle-market private equity fund of funds business, which is RCP Advisors. RCP has been investing in the lower middle market GPs for 25 years, and the team has relationships with more than 200 lower middle market private equity firms.

Robert Ladd: On 22 June, our external advisor, Stellus Capital Management, officially joined the Ridgepost Capital platform. As a reminder, Ridgepost Capital is a leading alternative investment manager in the middle and lower middle market, currently managing more than $50 billion of AUM across private equity, private credit, and venture. We're very pleased with how the transition is going and early integration is well underway. We're coordinating in many areas, including investment origination and management, investor relations, fundraising, and operations. Since joining Ridgepost Capital, one of the most promising opportunities has been the ability to leverage the firm's broader sponsor relationships, specifically Ridgepost Capital lower middle-market private equity fund of funds business, which is RCP Advisors. RCP has been investing in the lower middle market GPs for 25 years, and the team has relationships with more than 200 lower middle market private equity firms.

Speaker #2: We're very pleased with how the transition is going, and early integration is well underway. We're coordinating in many areas, including investment origination and management, investor relations, fundraising, and operations.

Speaker #2: Since joining Ridgepost Capital, one of the most promising opportunities has been the ability to leverage the firm's broader sponsor relationships, specifically Ridgepost Capital's lower middle market private equity fund-of-funds business, which is RCP Advisors.

Speaker #2: RCP has been investing in lower middle market GPs for 25 years, and the team has relationships with more than 200 lower middle market private equity firms.

Speaker #2: This aligns well with our direct lending strategy, which is exclusively to private equity—specifically, lower middle market, private equity-backed companies. We believe our business is set to benefit from this meaningfully over time.

Robert T. Ladd: This aligns well with our direct lending strategy, which is exclusively to lower middle market private equity-backed companies and believe our business is set to benefit from this meaningfully over time. We've been collaborating with the RCP's team to identify financing opportunities with these sponsor relationships. While still early, we believe the long-term opportunity could represent significant incremental originations annually across the Stellus platform. Importantly, this incremental deployment opportunity is additive to the strong origination pipeline we've been building over 20 years. Now to share repurchases. Regarding capital allocation, we continue to view share repurchases as an attractive use of capital today, specifically as our stock continues to trade at a significant discount to NAV. Repurchasing shares is immediately accretive to net asset value and earnings per share, creating value for our shareholders.

Robert Ladd: This aligns well with our direct lending strategy, which is exclusively to lower middle market private equity-backed companies and believe our business is set to benefit from this meaningfully over time. We've been collaborating with the RCP's team to identify financing opportunities with these sponsor relationships. While still early, we believe the long-term opportunity could represent significant incremental originations annually across the Stellus platform. Importantly, this incremental deployment opportunity is additive to the strong origination pipeline we've been building over 20 years. Now to share repurchases. Regarding capital allocation, we continue to view share repurchases as an attractive use of capital today, specifically as our stock continues to trade at a significant discount to NAV. Repurchasing shares is immediately accretive to net asset value and earnings per share, creating value for our shareholders.

Speaker #2: We've been collaborating with the RCP's team to identify financing opportunities with these sponsor relationships. While still early, we believe the long-term opportunity could represent significant incremental originations annually across the sellers' platform.

Speaker #2: And importantly, this incremental deployment opportunity is additive to the strong origination pipeline we've been building over 20 years. Now to share repurchases. Regarding capital allocation, we continue to view share repurchases as an attractive use of capital today, specifically as our stock continues to trade at a significant discount to NAV.

Speaker #2: Repurchasing shares immediately is immediately accretive to net asset value and earnings per share, trading value for our shareholders. On March 3 of this year, our board of directors approved a common stock repurchase program of up to $20 million.

Robert T. Ladd: On 3 March of this year, our board of directors approved a common stock repurchase program of up to $20 million. I'm pleased to share that since that date, we have repurchased 467,000 shares for approximately $4 million. Given our outlook for the business as well as our remaining future authorization, we continue to view buybacks as accretive and efficient way to improve the return to our shareholders. Now for opportunities for growth. We're pleased to announce that we received approval from the SBA for a third SBIC license. With this new license, we expect to meaningfully increase the size of our investment portfolio. The license will allow us to contribute up to $125 million of equity and access up to $250 million of long-term, low-cost SBA-guaranteed debentures.

Robert Ladd: On 3 March of this year, our board of directors approved a common stock repurchase program of up to $20 million. I'm pleased to share that since that date, we have repurchased 467,000 shares for approximately $4 million. Given our outlook for the business as well as our remaining future authorization, we continue to view buybacks as accretive and efficient way to improve the return to our shareholders. Now for opportunities for growth. We're pleased to announce that we received approval from the SBA for a third SBIC license. With this new license, we expect to meaningfully increase the size of our investment portfolio. The license will allow us to contribute up to $125 million of equity and access up to $250 million of long-term, low-cost SBA-guaranteed debentures.

Speaker #2: I'm pleased to share that since that date, we have repurchased 467,000 shares for approximately $4 million. Given our outlook for the business, as well as our remaining future authorization, we continue to view buybacks as an accretive and efficient way to improve the return.

Speaker #2: To our shareholders: And now, for opportunities for growth, we're pleased to announce that we received approval from the SBA for a third SBIC license.

Speaker #2: With this new license, we expect to meaningfully increase the size of our investment portfolio. The license will allow us to contribute up to $125 million of equity and access up to $250 million of long-term low-cost SBA-guaranteed debentures.

Speaker #2: In addition, the SBA recently increased the maximum amount of debentures that a family of funds may have outstanding from $350 million to $475 million, providing us with additional long-term financing capacity as we continue to grow the platform.

Robert T. Ladd: In addition, the SBA recently increased the maximum amount of debentures that a family of funds may have outstanding from $350 million to $475 million, providing us with additional long-term financing capacity as we continue to grow the platform. We believe these developments and changes will ultimately result in the ability to expand the investment portfolio by up to $100 million over time or 10% of the current portfolio at fair value today. Before opening the line for questions, I would like to conclude with a few final remarks. First, we have aligned our $0.25 per share quarterly dividend with the current trajectory of NII. Second, while we still have work to do with several underperforming investments, we are actively managing these positions and remain focused on continuing to improve overall portfolio quality.

Robert Ladd: In addition, the SBA recently increased the maximum amount of debentures that a family of funds may have outstanding from $350 million to $475 million, providing us with additional long-term financing capacity as we continue to grow the platform. We believe these developments and changes will ultimately result in the ability to expand the investment portfolio by up to $100 million over time or 10% of the current portfolio at fair value today. Before opening the line for questions, I would like to conclude with a few final remarks. First, we have aligned our $0.25 per share quarterly dividend with the current trajectory of NII. Second, while we still have work to do with several underperforming investments, we are actively managing these positions and remain focused on continuing to improve overall portfolio quality.

Speaker #2: We believe these developments and changes will ultimately result in the ability to expand the investment portfolio by up to $100 million over time, or 10% of the current portfolio.

Speaker #2: At fair value today. And before opening the line for questions, I'd like to conclude with a few final remarks. First, we've aligned our 25-cent per share quarterly dividend with a current trajectory of NII.

Speaker #2: Second, while we still have work to do with several underperforming investments, we're actively managing these positions and remain focused on continuing to improve overall portfolio quality.

Speaker #2: Third, the origination backdrop is improving, and we're seeing encouraging signs across our pipeline as sponsor activity begins to accelerate. Taken together, we believe these factors position Stellus to create meaningful long-term value for shareholders, while continuing to generate attractive income through the cycles.

Robert T. Ladd: Third, the origination backdrop is improving, and we are seeing encouraging signs across our pipeline as sponsor activity begins to accelerate. Taken together, we believe these factors position Stellus to create meaningful long-term value for shareholders while continuing to generate attractive income through the cycles. Jenny, with that, we would now be happy to open up for questions.

Robert Ladd: Third, the origination backdrop is improving, and we are seeing encouraging signs across our pipeline as sponsor activity begins to accelerate. Taken together, we believe these factors position Stellus to create meaningful long-term value for shareholders while continuing to generate attractive income through the cycles. Jenny, with that, we would now be happy to open up for questions.

Speaker #2: And genuinely with that, we've now be happy to open up for questions.

Speaker #1: Thank you very much. At this time, we'll be conducting our question and answer session. If you would like to ask a question, please press star one on your phone keypad now.

Operator: Thank you very much. At this time, we will be conducting our question and answer session. If you would like to ask a question, please press *1 on your phone keypad now. A confirmation tone will indicate that your line is in the queue. You may press *2 if you would like to remove your question from the queue. For anyone using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please wait a moment whilst we poll for questions. Thank you. Our first question is coming from Erik Zwick of Lucid Capital Markets. Eric, your line is live.

Speaker #1: A confirmation time will indicate that your line is in the queue. You may press star two if you would like to remove your question from the queue.

Speaker #1: And for anyone using speaker equipment, it might be necessary to pick up your handset before you press the keys. Please wait a moment while we poll for questions.

Speaker #1: Thank you. Our first question is coming from Eric Zwick of Lucid Capital Markets. Eric, your line is live.

Erik Zwick: Thank you. Good morning, guys.

Speaker #2: Thank you. Good morning, guys. Wanted to start with a follow-up on yeah, good morning. I wanted to start with a follow-up on your commentary regarding the pipeline and the outlook for the back half of the year.

Robert T. Ladd: Good morning.

Robert Ladd: Good morning.

Erik Zwick: Good morning. I wanted to start with a follow-up on your commentary regarding the pipeline and the outlook for the H2 of the year improving. I am curious what is driving that optimism. Is it the partnership with Ridgepost and broadening the funnel and potentially improved market activity, a combination of those, or maybe some other factors? Wondering if you could comment there.

Speaker #2: Improving and curious, what's driving that optimism? Is it the partnership with Ridgepost and broadening the funnel, potentially improved market activity, a combination of those, or maybe some other factors?

Speaker #2: I was wondering if you could comment there.

Speaker #3: Yeah, yeah, sure. Will, Eric. So I'd say one thing, it's generally true that the deal activity tends to be somewhat seasonable, seasonal, and therefore second half of the year is typically busier than the first.

Robert T. Ladd: Yeah, sure will, Eric. I would say one thing, it is generally true that the deal activity tends to be somewhat seasonal, and therefore H2 of the year is typically busier than the first, and the Q4 is typically the busiest of the four quarters. I think that is part of it. I think a little bit slower activity earlier in the year, and I think things have just generally picked up for us. We are seeing pricing in that regard, relatively stable. As an example, if we were less disciplined on pricing, we would probably be closing more deals, but we try to be disciplined on pricing, of course. Then in terms of the RCP Advisors and Ridgepost combination, still early days there, but we think this will take a few quarters or so.

Robert Ladd: Yeah, sure will, Erik. I would say one thing, it is generally true that the deal activity tends to be somewhat seasonal, and therefore H2 of the year is typically busier than the first, and the Q4 is typically the busiest of the four quarters. I think that is part of it. I think a little bit slower activity earlier in the year, and I think things have just generally picked up for us. We are seeing pricing in that regard, relatively stable. As an example, if we were less disciplined on pricing, we would probably be closing more deals, but we try to be disciplined on pricing, of course. Then in terms of the RCP Advisors and Ridgepost combination, still early days there, but we think this will take a few quarters or so.

Speaker #3: And the fourth quarter is typically the busiest of the four quarters. So I think that's part of it. I think a little bit slower activity earlier in the year.

Speaker #3: And I think things have just generally picked up for us. We are seeing pricing in that regard relatively stable. So as an example, if we were less disciplined on pricing, we'd probably be closing more deals, but we try to be disciplined on pricing, of course.

Speaker #3: And then in terms of the RCP advisors and Ridgepost combination, still early there, early days there, but we think this will take a few quarters or so, but we're starting to see some commonality of opportunities or sponsors really at a transaction and at turns out that the sponsor is part of the RCP portfolio, if you will.

Robert T. Ladd: We are starting to see some commonality of opportunities where a sponsor is really at a transaction, and it turns out that the sponsor is part of the RCP portfolio, if you will. That is starting. At this point, it is coming more from our existing origination capabilities.

Robert Ladd: We are starting to see some commonality of opportunities where a sponsor is really at a transaction, and it turns out that the sponsor is part of the RCP portfolio, if you will. That is starting. At this point, it is coming more from our existing origination capabilities.

Speaker #3: So that's starting, but at this point, it's coming more from our existing origination capabilities.

Speaker #2: Thank you, I appreciate the color there. Just looking at the income statement—the other income line—it was a little bit lower this quarter, or in the second quarter, relative to the past three or four.

Erik Zwick: Thank you. I appreciate the color there. Just looking at the income statement, the other income line was a little bit lower this quarter or in the Q2 relative to the past three or four. Curious if there was anything noteworthy or specific in the most recent quarter, and whether you would expect the Q2 rate to be a good go-forward rate or a return to the more historical level there.

Speaker #2: Curious if there was anything kind of noteworthy or specific in the most recent quarter, and whether you would expect the Q2 rate to be a good go-forward rate, or a return to the more historical level there.

Speaker #3: Yeah, Todd, we'll turn that over to you.

Robert T. Ladd: Todd, we'll turn that over to you.

Robert Ladd: Todd, we'll turn that over to you.

Speaker #4: Yeah, I would say there's nothing particularly unusual. I mean, one thing is that we didn't carry quite as much cash as we historically have, and so our sweep income is not as high.

W. Todd Huskinson: Yeah, I would say there's nothing particularly unusual. One thing is that we didn't carry quite as much cash as we historically have, and so our sweep income is not as high. That's probably the primary difference. It kind of moves up and down. I'd say that's probably the only thing that's unique for this quarter.

Todd Huskinson: Yeah, I would say there's nothing particularly unusual. One thing is that we didn't carry quite as much cash as we historically have, and so our sweep income is not as high. That's probably the primary difference. It kind of moves up and down. I'd say that's probably the only thing that's unique for this quarter.

Speaker #4: So that's probably the primary difference. It kind of moves up and down, but I'd say that's probably the only thing that's unique for this quarter.

Speaker #2: Got it. And then, last one for me—just on the unrealized appreciation. In the quarter, what drove the positive marks in the portfolio?

Erik Zwick: Got it. Last one from me. Just on the unrealized appreciation in the quarter, what drove the positive marks in the portfolio?

Speaker #4: Yeah, so we had two, yeah, right. It was related to two of the positions that were kind of working. So one of them was a sale of a unit, a division, and so that improved the mark there.

W. Todd Huskinson: Yeah.

Todd Huskinson: Yeah.

Robert T. Ladd: Yeah, Todd.

Robert Ladd: Yeah, Todd.

W. Todd Huskinson: Yeah. Right. Related to two of the positions that were kind of working. One of them was a sale of a unit, a division. That improved the mark there. The other one was in restructuring and taking out another lender at a low price and a low value to the other lenders. It increased enterprise value for both of those businesses and resulted in uplifts for both of those. I would say that was probably half of it, and the other half of it is simply a reversal for the realized loss that we had on one of our positions, which, as you know, Erik, we have a realized loss if we have marked it, and we typically marked it in roughly the same amount that the realized loss is. It is a reversal that shows up as a realized gain.

Todd Huskinson: Yeah. Right. Related to two of the positions that were kind of working. One of them was a sale of a unit, a division. That improved the mark there. The other one was in restructuring and taking out another lender at a low price and a low value to the other lenders. It increased enterprise value for both of those businesses and resulted in uplifts for both of those. I would say that was probably half of it, and the other half of it is simply a reversal for the realized loss that we had on one of our positions, which, as you know, Erik, we have a realized loss if we have marked it, and we typically marked it in roughly the same amount that the realized loss is. It is a reversal that shows up as a realized gain.

Speaker #4: And the other one was in restructuring and taking out another lender at a low price, in a low value. The other lenders, it increased enterprise value for both of those businesses and resulted in kind of uplifts for both of those.

Speaker #4: So I'd say that was probably half of it. And the other half of it is simply a reversal for the realized loss that we had on one of our positions which, as you know, Eric kind of we have a realized loss if we've marked it.

Speaker #4: And typically, we've marked it in roughly the same amount that the realized loss is. And so it's a reversal that shows up as a realized gain.

Speaker #2: Got it. Thank you for taking my questions today.

Erik Zwick: Got it. Thank you for taking my questions today.

Robert T. Ladd: Yeah. Thank you, Erik.

Robert Ladd: Yeah. Thank you, Erik.

Speaker #4: Yeah, thank you, Eric.

W. Todd Huskinson: Yeah. Thank you, Erik.

Todd Huskinson: Yeah. Thank you, Erik.

Speaker #1: Thank you very much. And our next question is coming from Christopher Nolan of the Leydenberg Farmer. Christopher, your line is live.

Operator: Thank you very much. Our next question is coming from Christopher Nolan of Ladenburg Thalmann. Christopher, your line is live.

Speaker #5: Hey, guys. The hookup with Ridgepost, do you anticipate you just going to have a much larger pipeline of deals that you're going to be reviewing?

Christopher Nolan: Hey, guys. The hookup with Ridgepost, do you anticipate you're just going to have a much larger pipeline of deals that you're going to be reviewing?

Robert T. Ladd: I think, Chris, that's definitely right over time. I would say that it starts with where we've been calling on someone for a while, maybe doing business with them, and Ridgepost is already an LP in their funds. This is very helpful. The next would be in situations where RCP is an LP in a fund, and we don't have a previous relationship with them. This will take time, but a nice warm introduction from RCP to that private equity firm. That's how it will progress from here, but we definitely think this will make a real difference as time passes. Again, we've already had good interaction with the RCP team. Again, longtime, 20-plus year history of investing in this market on the PE side.

Robert Ladd: I think, Chris, that's definitely right over time. I would say that it starts with where we've been calling on someone for a while, maybe doing business with them, and Ridgepost is already an LP in their funds. This is very helpful. The next would be in situations where RCP is an LP in a fund, and we don't have a previous relationship with them. This will take time, but a nice warm introduction from RCP to that private equity firm. That's how it will progress from here, but we definitely think this will make a real difference as time passes. Again, we've already had good interaction with the RCP team. Again, longtime, 20-plus year history of investing in this market on the PE side.

Speaker #2: I think, Chris, I think

Speaker #3: That's definitely right, over time. And I would say that it starts with where we've been calling on someone and, for a while, maybe doing business with them.

Speaker #3: And Ridgepost is already an LP and their funds. So this is very helpful. The next would be in situations where RCP is an LP in a fund and we don't have a previous relationship with them.

Speaker #3: And this will take time, but a nice, warm introduction from RCP to that private equity firm. So that's how it will progress from here.

Speaker #3: But we definitely think this will make a real difference as time passes. And again, we've already had good interaction with the RCP team and, again, a long-time, 20-plus year history of investing in this market on the PE side.

Speaker #3: So, although they also have great insight into the quality of these private equity firms, having invested with them or observed them for over two decades.

Robert T. Ladd: They also have great insight into the quality of these private equity firms, having invested with them or observing them for over two decades.

Robert Ladd: They also have great insight into the quality of these private equity firms, having invested with them or observing them for over two decades.

Speaker #5: Thank you, Rob. And also, the non-accruals have been elevated for some time. If and when those come down, is the anticipation to keep the leverage ratios at the current levels, or if the non-accruals come down and stay down, to increase leverage going forward?

Christopher Nolan: Thank you, Rob. Also, the non-accruals have been elevated for some time. If and when those come down, is the anticipation to keep the leverage ratios at the current levels or to, if the non-accruals come down and stay down, to increase leverage going forward? What are the thoughts around that?

Speaker #5: What are the thoughts around that?

Speaker #3: Yeah, so I think that we're operating at less than one-to-one leverage. Our target leverage is one-to-one on a regulatory basis, and about two-to-one on a GAAP basis.

Robert T. Ladd: Yeah. I think that we are operating less than 1-to-1 leverage. Our target leverage is 1-to-1 on a regulatory basis and 2-to-1 or so on a GAAP basis. I think you certainly could see our leverage increase. As the third license, SBIC license gets up and running, that will be helpful. Of course, that will be total GAAP leverage, which again, we view as safe. It is long-dated. I think you will see leverage increase. I think too, your question is a good reminder that if you think about our portfolio today, we have roughly $50 million of non-accruing assets at fair value and roughly $90 million of equity co-investments at fair value, neither of which have a return to them. Now, the equity portfolio is appreciating, and we get a return from it over time.

Robert Ladd: Yeah. I think that we are operating less than 1-to-1 leverage. Our target leverage is 1-to-1 on a regulatory basis and 2-to-1 or so on a GAAP basis. I think you certainly could see our leverage increase. As the third license, SBIC license gets up and running, that will be helpful. Of course, that will be total GAAP leverage, which again, we view as safe. It is long-dated. I think you will see leverage increase. I think too, your question is a good reminder that if you think about our portfolio today, we have roughly $50 million of non-accruing assets at fair value and roughly $90 million of equity co-investments at fair value, neither of which have a return to them. Now, the equity portfolio is appreciating, and we get a return from it over time.

Speaker #3: So I think you certainly could see our leverage increase. As the third license SDIC license gets up and running, that will be helpful, of course.

Speaker #3: That will be total gap leverage, which again, we view as safe. It's long-dated, and so I think you will see leverage increase. And I think, too, your question is a good reminder that if you think about our portfolio today, we have roughly $50 million of non-accruing assets at fair value.

Speaker #3: And roughly 90 million of equity co-invests at fair value, neither of which have a return to them. Now, the equity portfolio is appreciating and we get a return from it over time, but imagine being able to recycle what is in total 140 million into earning assets.

Robert T. Ladd: Imagine being able to recycle what is in total, $140 million into earning assets. Some will be equity, new equity co-investment, but others will be performing loans. This should help with earnings capacity. This will take time as they get recycled. Then back to your original question, is that we would expect leverage to get closer to 1-to-1 and 2-to-1 on a GAAP basis than it is today.

Robert Ladd: Imagine being able to recycle what is in total, $140 million into earning assets. Some will be equity, new equity co-investment, but others will be performing loans. This should help with earnings capacity. This will take time as they get recycled. Then back to your original question, is that we would expect leverage to get closer to 1-to-1 and 2-to-1 on a GAAP basis than it is today.

Speaker #3: Some will be equity—new equity co-invests—but others will be performing loans. So this should help with our earnings capacity. This will take time as they get recycled.

Speaker #3: And then back to your original question is that we'll would expect leverage to get closer to one-to-one and two-to-one on a gap basis than it is today.

Speaker #2: Great. Thanks, Rob.

Christopher Nolan: Great. Thanks, Rob.

Speaker #3: Thank you, Chris.

Robert T. Ladd: Thank you, Chris.

Robert Ladd: Thank you, Chris.

Speaker #1: Thank you very much. And our next question is coming from Robert Dodd of Raymond James. Robert, your line is live.

Operator: Thank you very much. Our next question is coming from Robert Dodd of Raymond James. Robert, your line is live.

Speaker #6: Hi, guys. Just going back to RCP for a second, if I can, Rob. In the relationships and the preliminary discussions you've had with them and the PE funds kind of that they have a relationship, are there any niches where they have particular the funds, maybe have particularly strong industry expertise where you haven't historically been a significant participant?

Robert Dodd: Hi, guys. Just going back to RCP for a second, if I can, Rob. In the relationships and the preliminary discussions you've had with them and the PE funds, kind of that they have a list. Are there any niches where the funds maybe have particularly strong industry expertise where you haven't historically been a significant participant? Is that one of the ways as well? Because obviously you can expand the pipeline, but can it expand kind of like industry and sector diversification as well?

Speaker #6: I mean, is that one of the ways as well? Because obviously, you can expand the pipeline, but can it expand kind of like industry and sector diversification as well?

Robert T. Ladd: That, that is a really interesting point. I would say in the lower middle market, what we found is that many of the firms cover a variety of areas. Some are more specialized. As an example, industrial services would be a category. Some would be in technology. Some are digital marketing. But I think our history of investing really kind of transcends all industries except for the two that we have not been active in at all, which is real estate and the pure oil and gas industry. I think what we found is, one, we have kind of touched probably most every industry sector. Two, I would say, and have not studied it carefully, but they would therefore, in their portfolio of experiences, 200 plus funds would cover a variety. I think together we will have touched everything.

Robert Ladd: That, that is a really interesting point. I would say in the lower middle market, what we found is that many of the firms cover a variety of areas. Some are more specialized. As an example, industrial services would be a category. Some would be in technology. Some are digital marketing. But I think our history of investing really kind of transcends all industries except for the two that we have not been active in at all, which is real estate and the pure oil and gas industry. I think what we found is, one, we have kind of touched probably most every industry sector. Two, I would say, and have not studied it carefully, but they would therefore, in their portfolio of experiences, 200 plus funds would cover a variety. I think together we will have touched everything.

Speaker #3: That's a really interesting point. So I would say in the lower middle market, what we found is that many of the firms cover a variety of areas.

Speaker #3: Some are more specialized. As an example, industrial services would be a category. Some would be in technology—so, our digital marketing. But I think our history of investing really kind of transcends all industries, except for the two that we have not been active in at all, which are real estate and the pure oil and gas industry.

Speaker #3: So I think what we found is one, we have kind of touched probably most every industry Two, I would say, and haven't studied it carefully, but they would therefore and their portfolio of experience is 200-plus funds.

Speaker #3: Would cover a variety. So I think together we'll have touched everything. But it could certainly provide access to some areas where we don't have as much exposure or that would be new and that we would find attractive.

Robert T. Ladd: But it could certainly provide access to some areas where we do not have as much exposure to or that would be new and that we would find attractive. I think it is a really good illuminating point that not only should it be in volume, but it could be interesting in terms of industry sector given the breadth of what they operate.

Robert Ladd: But it could certainly provide access to some areas where we do not have as much exposure to or that would be new and that we would find attractive. I think it is a really good illuminating point that not only should it be in volume, but it could be interesting in terms of industry sector given the breadth of what they operate.

Speaker #3: So I think it's a really good, illuminating point that not only should it be in volume, but it could also be interesting in terms of industry sector.

Speaker #3: Given the breadth of where they operate.

Speaker #6: Yeah, yeah. Thanks for that. On the remaining non-accruals, I mean, can you give us any qualitative— I mean, like, how are— do you think those non-accruals can come back to performing?

Robert Dodd: Yes. Thanks for that. On the remaining non-accruals, can you give us any qualitative kind of. Do you think those non-accruals can come back to performing? Are the primary factors operational that can be fixed over time, or are there other issues where it may need a material restructuring and a sponsor may have to approve of that? Or is this just operational improvements to get them back.

Speaker #6: I mean, are the primary factors operational—something that can be fixed over time—or are they other issues where it may need a material restructuring and the sponsor may have to approve that?

Speaker #6: Or is this just operational improvements to get them back, or is something bigger needed in order to deal with those remaining assets?

Robert T. Ladd: Yeah

Robert Ladd: Yeah

Robert Dodd: Or something is needed in order to deal with those remaining assets?

Speaker #3: Yeah, yeah. So on the non-performing situations, the I'm trying to think here. All or but one of them let me say this. Most of them we and the other lenders now control them.

Robert T. Ladd: Yeah. On the non-performing situations, I am trying to think here. All but one of them, let me say this, that most of them, we and the other lenders now control them. We are no longer relying upon a private equity firm to do something. We are now working with the managements and the other lenders with the management teams to affect, one, we have probably already done a restructuring. And two, now how to improve the business operationally. In some cases, we have to provide a little bit more capital. From here, it is a matter of getting the companies in a position for an exit. If it is helpful, we would be glad to convert that fair value today into cash and reinvest it.

Robert Ladd: Yeah. On the non-performing situations, I am trying to think here. All but one of them, let me say this, that most of them, we and the other lenders now control them. We are no longer relying upon a private equity firm to do something. We are now working with the managements and the other lenders with the management teams to affect, one, we have probably already done a restructuring. And two, now how to improve the business operationally. In some cases, we have to provide a little bit more capital. From here, it is a matter of getting the companies in a position for an exit. If it is helpful, we would be glad to convert that fair value today into cash and reinvest it.

Speaker #3: So we're no longer relying upon a private equity firm to do something. And so we're now working with the management and the other lenders with the management teams to affect one we probably already done a restructuring.

Speaker #3: And two, now, how to improve the business operationally. In some cases, we provide help to offer a little bit more capital, and so from here, it's a matter of getting the companies in a position for an exit.

Speaker #3: If it's helpful, we would be glad to convert that fair value today into cash and reinvest it. So we're not trying to achieve two times our money from here, but rather position the companies where they can be sold for and so all do as well as possible.

Robert T. Ladd: We are not trying to achieve 2 times our money from here, but rather position the companies where they can be sold, and all do as well as possible, and they are working closely with the management teams. I think it is that category. We are basically at that point where we do not have any obstacles. They have been restructured. With the lenders taken, restructured the capital stack, providing capital if needed, and we try to be very limited in that way. But also try to be smart in that way, too. That is the status.

Robert Ladd: We are not trying to achieve 2 times our money from here, but rather position the companies where they can be sold, and all do as well as possible, and they are working closely with the management teams. I think it is that category. We are basically at that point where we do not have any obstacles. They have been restructured. With the lenders taken, restructured the capital stack, providing capital if needed, and we try to be very limited in that way. But also try to be smart in that way, too. That is the status.

Speaker #3: And they're working closely with the management teams. So I think it's that category we're basically at that point where we don't have any obstacles.

Speaker #3: They've been restructured, with the lenders having restructured the capital stack, providing capital if needed, and we try to be very limited in that way.

Speaker #3: But also try to be smart in that way too. So that's the stage of the non-accruals.

Robert Dodd: Got it.

Robert T. Ladd: of the non-accruals.

Robert Ladd: of the non-accruals.

Speaker #6: Got it. Yeah, appreciate that, Carla. Thank you.

Robert Dodd: Yeah, appreciate that color. Thank you.

Speaker #3: Yeah, yeah. Thank you, Rob.

Robert T. Ladd: Yeah. Thank you, Rob.

Robert Ladd: Yeah. Thank you, Rob.

Speaker #1: Thank you very much. Well, we appear to have reached the end of our question and answer session. I will now hand back over to Mr. Ladd for any closing comments.

Operator: Thank you very much. Well, we appear to have reached the end of our question and answer session. I will now hand back over to Mr. Ladd for any closing comments.

Speaker #3: Okay. Thank you, Jenny, very much. And we thank everyone for joining the call and for the support from our shareholders. And we look forward to giving you a further update as we review the third quarter in early November.

Robert T. Ladd: Okay. Thank you, Jenny, very much, and we thank everyone for joining the call and for the support from our shareholders. And we look forward to giving you a further update as we review the Q3 in early November. Thank you very much.

Robert Ladd: Okay. Thank you, Jenny, very much, and we thank everyone for joining the call and for the support from our shareholders. And we look forward to giving you a further update as we review the Q3 in early November. Thank you very much.

Speaker #3: Thank you very much.

Operator: Thank you, everybody. This does conclude today's conference, and you may disconnect your phone lines at this time. We thank you for your participation.

Q2 2026 Stellus Capital Investment Corp Earnings Call

Request DemoDemo

Stellus Capital Investment

Earnings