Know the company
Company overview
OFS Capital finances middle-market businesses through loans that can range from senior to subordinated debt, alongside some equity-linked investments. Interest and fees from borrowers are the recurring revenue. Its own borrowing, management and operating costs come out before net investment income supports a dividend. Credit losses and loans that stop paying can narrow that stream.
- Business
- BDC
- Listing
- OFS · XNAS
- Reporting period
- 2026-06-30
- Dividend schedule
- Quarterly
How the business works
The distribution is funded principally by interest and fee income from the investment portfolio, after OFS Capital pays borrowing costs and operating expenses. Portfolio loan repayments and sales can also affect available liquidity, while taxable-income requirements influence the amount a BDC may distribute. A distribution can be supported temporarily by prior-period taxable income or other resources even when current net investment income is below the distribution; therefore, recurring net investment income coverage is an important indicator rather than a complete cash-balance test.