OFS Capital Q2 2025 Earnings Call Transcript: Bilal Rashid Discusses Financial Results

OFS Capital Corporation reported Q2 2025 earnings, with results in line with preliminary earnings. Chairman and CEO Bilal Rashid discussed the company's performance, noting that the earnings call will be focused on key points. The call was recorded and available for replay.

OFS Capital Corporation (NASDAQ: OFS), a company with a market capitalization of $110.4 million, reported its second-quarter earnings for 2025, revealing stable performance despite broader market concerns. The company's earnings per share (EPS) of $0.25 exceeded the forecasted $0.24, marking a 4.17% surprise. Revenue reached $10.48 million, surpassing expectations by 4.8%. However, the company's stock saw a 3.13% decline in regular trading, closing at $8.48, with a further 0.47% drop in premarket trading to $8.44 [2].

Chairman and CEO Bilal Rashid highlighted the company's defensive positioning and focus on capital preservation, noting that the portfolio is constructed to withstand market volatility. The company's net investment income remained stable at $0.25 per share, but the net asset value (NAV) decreased by 9% to $10.91 per share. This decline was primarily due to a $7.8 million decrease in the value of the company's equity investment in Fans Steel Holdings [1].

OFS Capital's strategic focus on first and second lien senior secured loans has fortified its portfolio against market volatility. However, a decrease in NAV and subdued mergers and acquisitions (M&A) activity have raised concerns about future growth prospects. The company plans to continue its cautious approach to new investments, reflecting the current macroeconomic uncertainties [2].

The earnings call emphasized the company's commitment to maintaining a consistent dialogue with its portfolio companies and supporting them with additional capital if appropriate. Bilal Rashid also noted that the company is focused on improving its net investment income by monetizing non-interest earning equity positions, particularly its minority equity investment in FansDeal [1].

Despite the earnings beat, OFS Capital's stock fell by 3.13% during regular trading hours, suggesting investor concerns over broader economic uncertainties and the company's decreased NAV. The company's financial highlights for the quarter include revenue of $10.48 million, an EPS of $0.25, net investment income of $3.3 million, and a NAV of $10.91 per share [2].

The earnings call did not include a specific Q&A session, but the company's strategic focus and financial performance were clearly outlined by the executive team. OFS Capital remains focused on capital preservation and improving net investment income by monetizing non-interest earning equity positions. The company plans to continue its cautious approach to new investments, reflecting the current macroeconomic uncertainties [1].

References:
[1] https://it.marketscreener.com/quotazioni/azione/OFS-CAPITAL-CORPORATION-11890497/attualita/Transcript-OFS-Capital-Corporation-Q2-2025-Earnings-Call-Aug-01-2025-50692757/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-ofs-capital-q2-2025-beats-eps-forecast-amid-market-concerns-93CH-4166362