Oxford Lane Capital Corp. (OXLC) AI Stock Analysis

Oxford Lane Capital Corp. operates as a closed-end fund under the management of Oxford Lane Management LLC, specializing in investments within the fixed income securities sector. Established on June 9, 2010, and based in the United States, the fund focuses on investing in securitization vehicles that primarily hold senior secured loans. These loans are extended to companies with debt ratings below investment grade or those whose debt remains unrated, aiming to capitalize on higher yields associated with riskier credit profiles. The fund seeks to provide income and capital appreciation through structured finance products while managing credit risk across diversified holdings.

Oxford Lane Capital Corp. generated $391.8M in revenue in FY2026, up 309.1% from $95.8M in FY2025. Across five years from FY2021 to FY2026, revenue recorded a 6.0% CAGR. The fund experienced volatile annual profitability, posting net income of $125.9M in FY2022, -$171.3M in FY2023, $235.1M in FY2024, $48.5M in FY2025, and -$585.1M in FY2026. Gross margin stood at 68.2% in FY2026, while operating margin fell to -135.4%. For the latest quarter ended March 31, 2026, quarterly revenue growth declined 10.2% year-over-year, quarterly earnings fell 77.9%, and trailing twelve months EPS was -$5.97.

As of March 31, 2026, Oxford Lane Capital Corp. held $96.7M in cash and short-term investments against total debt of $489.4M, resulting in net debt of $392.7M. Total assets stood at $1.83B alongside shareholders' equity of $1.03B, yielding a debt-to-equity ratio of 0.47 and a current ratio of 3.71. Operating cash flow and free cash flow turned positive to $696.2M in FY2026 after negative outlays of -$703.8M in FY2025. Cash deployment during FY2026 included $451.0M paid in dividends and $20.5M used for share buybacks.

At $7.91, Oxford Lane Capital Corp. trades at a price-to-sales multiple of 1.7x, below the median of 3.2x for its US-listed Financial Services peers. The stock's price-to-book ratio is 0.8x, and its EV-to-revenue multiple is 141.6x. Over the past year, the stock fell 25.1%, trailing the S&P 500 return of 16.8%. Over a five-year period, shares declined 37.3% compared to an 83.0% gain for the S&P 500.

Oxford Lane Capital Corp. pays a monthly dividend with an annualized forward payout of $2.40 per share, representing a dividend yield of 30.32%. Dividends have been paid for 16 consecutive years, though the 5-year annualized dividend growth rate decreased 2.9%. In FY2026, the company paid $451.0M in dividends, with a reported payout ratio of 24.8%. The last ex-dividend date is December 17, 2026.

Wall Street coverage includes 1 Strong Buy rating, 0 Buy ratings, 0 Hold ratings, and 0 Sell ratings. The mean price target is $12.50, which stands 58.0% above the last closing price of $7.91. For the current fiscal year ending March 31, 2027, the consensus estimate calls for revenue of $395.0M and EPS of $3.90. For the following fiscal year, 1 analyst expects revenue of $484.0M and EPS of $4.50. The fund exceeded EPS estimates in 3 of the last 4 quarters.

This page is an AI-written research summary of Oxford Lane Capital Corp. (OXLC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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