Stellus Capital Investment (SCM) Q2 FY26 earnings call

Stellus Capital reported a sequential increase in NAV, driven by positive portfolio marks and accretive share repurchases, despite a slight decrease in the overall investment portfolio. The company aligned its quarterly dividend with net investment income, signaling a sustainable payout moving forward. Strategic initiatives, including a new SBIC license and a partnership with Ridge Post Capital, are expected to drive future portfolio growth and origination activity, while management remains focused on reducing elevated nonaccrual loans.