Oxford Lane Capital Faces Significant NAV Decline

Investors in Oxford Lane Capital received disappointing news as the company reported a substantial drop in its net asset value. The estimated NAV range for October 2025 stands between $18.21 and $18.51 per share, representing a notable decline from the previous $19.19 per share recorded in September 2025. This translates to an approximate 4.3 percent decrease within a single month.

This NAV contraction comes despite Oxford Lane Capital's recently announced impressive second-quarter results. The company had reported net investment income of $120 million, or $1.24 per share, indicating solid fundamental performance. However, the preliminary estimates for October 31 reveal a clear downward trend in portfolio valuation.

Market observers are questioning whether current economic conditions are exerting greater pressure on CLO portfolio valuations than initially anticipated. Interest rate fluctuations and broader economic concerns appear to be contributing factors in this valuation adjustment.

Investor Confidence Tested by Sequential Challenges

The timing of this development presents additional challenges for shareholders. Investors recently adjusted to a 1-for-5 reverse stock split that took effect in early September. Now they face another significant concern regarding portfolio valuation.

Should investors sell immediately? Or is it worth buying Oxford Lane Capital?

Although management emphasizes that these are preliminary, unaudited figures, the directional trend remains evident:

• Previous NAV (September 2025): $19.19 per share
• Estimated NAV (October 2025): $18.21 - $18.51 per share
• Monthly decrease: Approximately 4.3%

The company faces further scrutiny with an ex-dividend date scheduled for tomorrow. Market participants are evaluating how this NAV deterioration might impact confidence in future distribution sustainability. While the board has already declared monthly dividends for January through March 2026, current figures raise questions about the long-term viability of this payout policy.

Shareholders must wait until late January 2026 for complete third-quarter results, leaving them with this disappointing estimate and numerous unanswered questions in the interim.