Stellus Capital Investment Corp

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00971

STELLUS CAPITAL INVESTMENT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)


Maryland		46-0937320
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

4400 Post Oak Parkway, Suite 2200

Houston, Texas 77027

(Address of Principal Executive Offices) (Zip Code)

(713) 292-5400

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.001 per share		SCM		New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the issuer’s Common Stock, par value $0.001 per share, outstanding as of May 11, 2026 was 28,947,254.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Statements of Assets and Liabilities as of March 31, 2026 (unaudited) and December 31, 2025	1
	Consolidated Statements of Operations for the three month periods ended March 31, 2026 and 2025 (unaudited)	2
	Consolidated Statements of Changes in Net Assets for the three month periods ended March 31, 2026 and 2025 (unaudited)	3
	Consolidated Statements of Cash Flows for the three month periods ended March 31, 2026 and 2025 (unaudited)	4
	Consolidated Schedules of Investments as of March 31, 2026 (unaudited) and December 31, 2025	5
	Notes to Consolidated Financial Statements	39
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	72
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	90
Item 4.	Controls and Procedures	91
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	92
Item 1A.	Risk Factors	92
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	92
Item 3.	Defaults Upon Senior Securities	92
Item 4.	Mine Safety Disclosures	92
Item 5.	Other Information	92
Item 6.	Exhibits	93
SIGNATURES		94

Table of Contents

PART I — FINANCIAL INFORMATION

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES


		(unaudited)
		March 31, 2026			December 31, 2025
ASSETS
Controlled investments, at fair value (amortized cost of $34,432,893 and $33,603,521, respectively)		$	12,237,127		$	14,953,132
Non-controlled, affiliated investments, at fair value (amortized cost of $4,878,960 and $4,806,660, respectively)			3,378,350			3,750,674
Non-controlled, non-affiliated investments, at fair value (amortized cost of $976,006,465 and $987,729,505, respectively)			974,379,087			988,919,589
Cash and cash equivalents			3,376,525			25,050,156
Receivable for sales and repayments of investments			492,000			581,509
Interest receivable			6,611,848			6,375,996
Income tax receivable			—			1,385,387
Other receivables			149,189			85,000
Related party receivable			—			20
Deferred offering costs			75,000			—
Prepaid expenses			574,127			150,843
Total Assets		$	1,001,273,253		$	1,041,252,306
LIABILITIES
Notes Payable		$	122,758,915		$	122,671,409
Credit Facility payable			238,276,659			233,167,360
SBA-guaranteed debentures			257,151,049			295,984,063
Dividends payable			3,279,724			3,858,669
Management fees payable			4,392,357			4,442,705
Income incentive fees payable			2,413,077			2,317,429
Interest payable			5,729,215			6,138,076
Related party payable			2,335,513			—
Unearned revenue			539,630			582,007
Administrative services payable			579,529			539,338
Income tax payable			93,492			—
Other accrued expenses and liabilities			728,572			372,294
Total Liabilities		$	638,277,732		$	670,073,350
Commitments and contingencies (Note 7)
Net Assets		$	362,995,521		$	371,178,956
NET ASSETS
Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,947,254 and 28,947,254 shares issued and outstanding, respectively)		$	28,947		$	28,947
Paid-in capital			397,829,793			397,829,793
Total distributable loss			(34,863,219)			(26,679,784)
Net Assets		$	362,995,521		$	371,178,956
Total Liabilities and Net Assets		$	1,001,273,253		$	1,041,252,306
Net Asset Value Per Share		$	12.54		$	12.82

The accompanying notes are an integral part of these consolidated financial statements.

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STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)


		For the three months ended
		March 31, 2026		March 31, 2025
INVESTMENT INCOME
From non-controlled, affiliated investments
Interest income		$	45	$	—
Payment-in-kind interest income			72,300		—
From non-controlled, non-affiliated investments
Interest income			20,578,575		20,817,005
Payment-in-kind interest income			1,602,087		3,310,111
Other income			1,039,927		824,542
Total Investment Income		$	23,292,934	$	24,951,658
OPERATING EXPENSES
Management fees		$	4,392,357	$	4,054,726
Valuation fees			166,119		157,889
Administrative services expenses			649,120		449,298
Income incentive fees			106,709		2,136,491
Professional fees			817,727		418,031
Directors’ fees			129,250		111,250
Insurance expense			93,056		97,090
Interest expense and other fees			8,851,541		8,263,019
Income tax expense			360,471		499,547
Other general and administrative expenses			239,617		218,351
Total Operating Expenses		$	15,805,967	$	16,405,692
Income incentive fee waiver			(11,061)		(1,242,843)
Total Operating Expenses, net of fee waivers		$	15,794,906	$	15,162,849
Net Investment Income		$	7,498,028	$	9,788,809
Net realized gain on non-controlled, non-affiliated investments		$	750,410	$	(5,967,221)
Net realized gain (loss) on foreign currency translations			3,664		(29,655)
Net change in unrealized (depreciation) appreciation on controlled investments			(3,545,377)		55,276
Net change in unrealized depreciation on non-controlled, affiliated investments			(444,624)		—
Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated investments			(2,558,345)		1,138,017
Net change in unrealized (depreciation) appreciation on foreign currency translations			(48,020)		8,319
Net Increase in Net Assets Resulting from Operations		$	1,655,736	$	4,993,545
Net Investment Income Per Share—basic and diluted		$	0.26	$	0.35
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted		$	0.06	$	0.18
Weighted Average Shares of Common Stock Outstanding—basic and diluted			28,947,254		27,602,612
Distributions Per Share—basic and diluted		$	0.34	$	0.40

The accompanying notes are an integral part of these consolidated financial statements.

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STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)


		Common Stock							Total
		Number		Par			Paid-in		distributable
		of shares		value			capital		(loss)			Net Assets
Balances at December 31, 2024		27,481,118		$	27,481		$	379,549,272	$	(9,654,813)		$	369,921,940
Net investment income		—			—			—		9,788,809			9,788,809
Net realized loss on investments		—			—			—		(5,967,221)			(5,967,221)
Net realized loss on foreign currency translations		—			—			—		(29,655)			(29,655)
Net change in unrealized appreciation on investments		—			—			—		1,193,293			1,193,293
Net change in unrealized depreciation on foreign currency translations		—			—			—		8,319			8,319
Distributions from net investment income		—			—			—		(11,087,389)			(11,087,389)
Issuance of common stock, net of offering costs⁽¹⁾		656,085			656			8,937,430		—			8,938,086
Balances at March 31, 2025		28,137,203		$	28,137		$	388,486,702	$	(15,748,657)		$	372,766,182

Balances at December 31, 2025		28,947,254		$	28,947		$	397,829,793	$	(26,679,784)		$	371,178,956
Net investment income		—			—			—		7,498,028			7,498,028
Net realized gain on investments		—			—			—		750,410			750,410
Net realized gain on foreign currency translation		—			—			—		3,664			3,664
Net change in unrealized depreciation on investments		—			—			—		(6,548,346)			(6,548,346)
Net change in unrealized depreciation on foreign currency translations		—			—			—		(48,020)			(48,020)
Distributions from net investment income		—			—			—		(9,839,171)			(9,839,171)
Balances at March 31, 2026		28,947,254		$	28,947		$	397,829,793	$	(34,863,219)		$	362,995,521

(1) See Note 4 to the consolidated financial statements contained herein for more information on offering costs.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)


		For the three months ended
		March 31, 2026			March 31, 2025
Cash Flows from Operating Activities
Net increase in net assets resulting from operations		$	1,655,736		$	4,993,545
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases of investments			(27,664,251)			(55,415,263)
Proceeds from sales and repayments of investments			41,713,484			14,986,423
Net change in unrealized depreciation (appreciation) on investments			6,548,346			(1,193,293)
Net change in unrealized depreciation (appreciation) on foreign currency translations			48,020			(8,319)
Increase in investments due to payment-in-kind income			(1,674,387)			(976,479)
Amortization of premium and accretion of discount, net			(713,561)			(715,755)
Amortization of loan structure fees			254,298			315,618
Amortization of deferred financing costs			134,684			110,150
Amortization of discount on Notes Payable			33,248			—
Amortization of premium on Notes Payable			(30,426)			—
Amortization of loan fees on SBA-guaranteed debentures			166,986			188,984
Net realized (gain) loss on investments			(750,410)			5,967,221
Changes in other assets and liabilities
Increase in interest receivable			(235,852)			(1,281,507)
Decrease (increase) in income tax receivable			1,385,387			(1,081,760)
Increase in other receivables			(64,189)			(20,755)
Decrease in related party receivables			20			3,687
(Increase) decrease in prepaid expenses			(423,284)			90,313
(Decrease) increase in management fees payable			(50,348)			20,617
Increase (decrease) in income incentive fees payable			95,648			(1,458,054)
Increase (decrease) in administrative services payable			40,191			(12,990)
Decrease in interest payable			(408,861)			(3,788,915)
Increase in related party payable			2,335,513			1,290,893
(Decrease) increase in unearned revenue			(42,377)			72,177
Increase in income tax payable			93,492			—
Increase in other accrued expenses and liabilities			356,278			989,436
Net Cash Provided by (Used in) Operating Activities		$	22,803,385		$	(36,924,026)
Cash Flows from Financing Activities
Proceeds from the issuance of common stock		$	—		$	9,256,982
Sales load for common stock issued			—			(138,908)
Offering costs paid for common stock issued			(75,000)			(179,988)
Stockholder distributions paid			(10,418,116)			(10,999,933)
Financing costs paid on Notes Payable			(50,000)			—
Repayments of SBA-guaranteed debentures			(39,000,000)			(16,250,000)
Borrowings under Credit Facility			58,100,000			67,700,000
Repayments of Credit Facility			(53,033,900)			(21,633,900)
Net Cash (Used in) Provided by Financing Activities		$	(44,477,016)		$	27,754,253
Net Decrease in Cash and Cash Equivalents		$	(21,673,631)		$	(9,169,773)
Cash and Cash Equivalents Balance at Beginning of Period		$	25,050,156		$	20,058,594
Cash and Cash Equivalents Balance at End of Period		$	3,376,525		$	10,888,821
Supplemental and Non-Cash Activities
Cash paid for interest expense		$	8,701,862		$	11,437,182
Income and excise tax refund, net			(1,118,408)			1,581,307
Exchange of investments			1,999,529			1,663,301

The accompanying notes are an integral part of these consolidated financial statements.

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Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK⁽⁸⁾		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Control investments	(22)
EH Real Estate Services, LLC														Skokie, IL
Term Loan A-5	(16)	First Lien		15.00	%	-	%	-	%	-	%	1/8/2024	9/3/2026	FIRE: Real Estate	$	5,734,549		5,734,549		516,109	0.14	%
Term Loan A-6	(16)	First Lien		15.00	%	-	%	-	%	-	%	10/3/2025	9/3/2026			1,096,456		1,096,456		1,096,456	0.30	%
Term Loan A-7	(16)	First Lien		15.00	%	-	%	-	%	-	%	11/12/2025	9/30/2026			1,644,685		1,644,685		1,644,685	0.45	%
Term Loan A-8	(16)	First Lien		15.00	%	-	%	-	%	-	%	1/20/2026	9/30/2026			816,517		816,517		816,517	0.22	%
Term Loan A-9	(16)	First Lien		15.00	%	-	%	-	%	-	%	2/18/2026	9/3/2026			899,683		899,683		899,683	0.25	%
Term Loan A-10	(16)	First Lien		15.00	%	-	%	-	%	-	%	3/3/2026	9/3/2026			1,032,440		1,032,440		1,032,440	0.28	%
Revolver	(16)(21)	First Lien		15.00	%	-	%	-	%	-	%	10/3/2023	9/3/2026			63,597		63,597		63,597	0.02	%
EH Holdco, LLC Common Units		Equity										10/3/2023				15,356		3		-	0.00	%
EH Holdco, LLC Series A Preferred Units		Equity										9/3/2021				7,892		7,891,642		-	0.00	%
Total																	$	19,179,572	$	6,069,487	1.66	%
J.R. Watkins, LLC														San Francisco, CA
Term Loan (SBIC)	(4)(19)	First Lien		4.09	%	-	%	-	%	-	%	12/22/2017	12/31/2026	Consumer Goods: Non-Durable	$	9,957,036		9,957,036		2,090,978	0.58	%
Term Loan (SBIC)	(4)(19)	First Lien		5.00	%	-	%	-	%	-	%	12/22/2017	12/31/2026			3,640,172		3,640,172		764,436	0.21	%
Priority Revolver (SBIC)	(4)(19)	First Lien		5.00	%	-	%	-	%	-	%	5/3/2024	12/31/2026			1,656,113		1,656,113		3,312,226	0.91	%
J.R. Watkins Ultimate Holdings, LLC Class A Units (SBIC)	(4)	Equity										4/9/2025				500		-		-	0.00	%
Total																	$	15,253,321	$	6,167,640	1.70	%
Total Control investments																	$	34,432,893	$	12,237,127	3.36	%
Non-controlled, affiliated investments	(23)
Simpler Trading, LLC	(9)													Austin, TX
Term Loan (SBIC)	(4)	First Lien		10.00	%			-	%	10.00	%	12/28/2021	3/21/2030	Education	$	2,940,374		2,940,374		2,940,374	0.81	%
Simpler Trading, LLC Preferred Units (SBIC)	(4)	Equity										3/21/2025				1,657		1,656,650		437,976	0.12	%
Simpler Ultimate Holdings, LLC Class A Units (SBIC)	(4)	Equity										3/21/2025				281,936		281,936		-	0.00	%
Total																	$	4,878,960	$	3,378,350	0.93	%
Total Non-controlled, affiliated investments																	$	4,878,960	$	3,378,350	0.93	%
Non-controlled, non-affiliated investments	(4)(5)
2X LLC														Berwyn, PA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%			6/5/2023	6/5/2028	Services: Business	$	5,362,703		5,292,915		5,362,703	1.48	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%			10/31/2023	6/5/2028			1,412,178		1,392,589		1,412,178	0.39	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%			12/2/2024	6/5/2028			3,803,435		3,765,276		3,803,435	1.05	%
Revolver	(9)(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%			6/5/2023	6/5/2028			87,500		87,500		87,500	0.02	%
2X Investors LP Class A Units		Equity										6/5/2023				43,875		176,915		1,215,590	0.33	%
Total																	$	10,715,195	$	11,881,406	3.27	%
Ad.Net Acquisition, LLC	(9)													Los Angeles, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.96	%			5/7/2021	5/7/2028	Services: Business	$	16,734,880		16,701,784		16,651,207	4.59	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.96	%			5/7/2021	5/7/2028			129,902		129,902		129,252	0.04	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.98	%			5/7/2021	5/7/2028			649,510		649,510		646,262	0.18	%
Ad.Net Holdings, Inc. Series A Common Stock (SBIC II)	(5)	Equity										5/7/2021				8,644		86,444		0	0.00	%
Ad.Net Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity										5/7/2021				7,780		777,995		670,308	0.18	%
Total																	$	18,345,635	$	18,097,029	4.99	%
AdCellerant LLC	(9)													Denver, CO
Term A Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	6.00	%	2.00	%	9.67	%			12/12/2023	12/12/2028	Media: Advertising, Printing & Publishing	$	9,775,000		9,654,877		9,726,125	2.68	%
AdCellerant Holdings, LLC Series A Units		Equity										12/12/2023				728,710		728,710		585,505	0.16	%
Total																	$	10,383,587	$	10,311,630	2.84	%
ADS Group Opco, LLC														Lakewood, CO
Term Loan (SBIC II)	(5)	First Lien		5.00	%	-	%	-	%	5.00	%	6/4/2021	12/31/2027	Aerospace & Defense	$	13,350,981		13,335,678		12,950,452	3.57	%
Priority Revolver (SBIC II)	(5)(9)	First Lien		5.00	%	-	%	-	%	5.00	%	9/30/2024	12/31/2027			15,895		15,895		31,790	0.01	%
ADS Group Topco, LLC Class A Units		Equity										6/4/2021				77,626		288,691		-	0.00	%
ADS Group Topco, LLC Class B Units		Equity										6/4/2021				56,819		211,309		-	0.00	%
ADS Group Topco, LLC Class D Units		Equity										9/30/2024				432		-		-	0.00	%
ADS Group Topco, LLC Class Y Units		Equity										4/11/2023				48,216		165,027		73,705	0.02	%
ADS Group Topco, LLC Class Z Units		Equity										6/15/2022				72,043		267,929		-	0.00	%
Total																	$	14,284,529	$	13,055,947	3.60	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Advanced Barrier Extrusions, LLC														Rhinelander, WI
Term Loan B (SBIC)	(4)(11)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	11/30/2020	11/30/2026	Containers, Packaging, & Glass	$	16,843,750		16,797,975		1,515,939	0.42	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	12/6/2024	11/30/2026			795,882		970,378		2,387,646	0.66	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	2/5/2025	11/30/2026			875,000		875,000		2,625,000	0.72	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	3/26/2025	11/30/2026			500,000		500,000		1,500,000	0.41	%
Term Loan A (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			2,607,637		565,204		234,687	0.06	%
Revolver (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			1,558,434		337,790		140,259	0.04	%
GP ABX Holdings Partnership, L.P. Partner Interests		Equity										8/8/2018				644,737		528,395		-	0.00	%
GP ABX Holdings Partnership, L.P. Series B Preferred Interests		Equity										1/5/2023				1,562		156,182		-	0.00	%
Total																	$	20,730,924	$	8,403,531	2.31	%
AGT Robotique Inc.	(7)(27)													Trois Rivieres, Canada
Term Loan	(11)	First Lien	3M SOFR+	7.50	%	1.00	%	9.20	%			6/24/2024	6/22/2029	Capital Equipment	$	10,539,209		10,388,993		10,328,425	2.85	%
Total																	$	10,388,993	$	10,328,425	2.85	%
American Refrigeration, LLC	(9)													Jacksonville, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.70	%			3/31/2023	3/31/2028	Capital Equipment	$	8,027,407		7,932,493		8,027,407	2.21	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.70	%			3/31/2023	3/31/2028			98,000		97,326		98,000	0.03	%
AR-USA Holdings, LLC Class A Units	(6)	Equity										3/31/2023				141		126,223		255,101	0.07	%
Total																	$	8,156,042	$	8,380,508	2.31	%
AMII Acquisition, LLC	(9)													Coral Gables, FL
Term Loan (SBIC II )	(5)(11)	First Lien	3M SOFR+	4.50	%	1.50	%	8.20	%			12/4/2024	12/4/2029	Services: Consumer	$	8,709,224		8,606,973		8,665,678	2.39	%
AMII Holdings, LP Class B Units		Equity										12/3/2024				14,246		142,460		201,204	0.06	%
Total																	$	8,749,433	$	8,866,882	2.45	%
Amika OpCo LLC	(9)													Brooklyn, NY
Term Loan	(11)	First Lien	6M SOFR+	5.25	%	0.75	%	9.14	%			7/1/2022	7/1/2029	Consumer Goods: Non-Durable	$	94,638		93,587		94,638	0.03	%
Term Loan	(11)	First Lien	6M SOFR+	5.75	%	0.75	%	9.63	%			12/5/2023	7/1/2029			9,487,510		9,361,122		9,487,510	2.61	%
Ishtar Co-Invest-B LP Partnership Interests		Equity										7/1/2022				77,778		38,133		322,593	0.09	%
Oshun Co-Invest-B LP Partnership Interests		Equity										7/1/2022				22,222		21,141		92,168	0.03	%
Total																	$	9,513,983	$	9,996,909	2.76	%
Anne Lewis Strategies, LLC
SG AL Investment, LLC Common Units		Equity										3/5/2021		Washington, DC		1,000		327,192		3,436,836	0.95	%
SG AL Investment, LLC Common-A Units	(6)	Equity										12/22/2023		Services: Business		239		470,656		985,826	0.27	%
Total																	$	797,848	$	4,422,662	1.22	%
APE Holdings, LLC														Deer Park, TX
Class A Units		Equity										9/5/2014		Chemicals, Plastics, & Rubber		375,000		375,000		66,072	0.02	%
Total																	$	375,000	$	66,072	0.02	%
ArborWorks, LLC														Oakhurst, CA
Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	-	%	10.28	%	11/6/2023	11/6/2028	Environmental Industries	$	4,178,171		4,178,171		4,178,171	1.15	%
Revolver	(9)	First Lien		15.00	%			-	%	15.00	%	11/6/2023	11/6/2028			1,908,170		1,908,170		1,908,170	0.53	%
ArborWorks Intermediate Holdco, LLC Class A-1 Preferred Units		Equity										11/6/2023				16,037		3,610,847		8,157,677	2.25	%
ArborWorks Intermediate Holdco, LLC Class B-1 Preferred Units		Equity										11/6/2023				16,037		-		-	0.00	%
ArborWorks Intermediate Holdco, LLC Class A-1 Common Units		Equity										11/6/2023				1,923		-		-	0.00	%
Total																	$	9,697,188	$	14,244,018	3.93	%
Arctiq, Inc.														Irvine, CA
Green Topco Holdings, LLC Class A Units		Equity										8/8/2023		High Tech Industries		288,000		219,226		751,544	0.21	%
Green Topco Holdings, LLC Common Units		Equity										2/3/2026				16,598		-		-	0.00	%
Total																	$	219,226	$	751,544	0.21	%
Atmosphere Aggregator Holdings II, L.P.														Atlanta, GA
Common Units		Equity										1/26/2016		Services: Business		254,250		-		2,342,141	0.65	%
Stratose Aggregator Holdings, L.P. Common Units		Equity										6/30/2015				750,000		-		8,848,087	2.44	%
Total																	$	-	$	11,190,228	3.09	%
Axis Portable Air, LLC														Phoenix, AZ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%			3/22/2022	12/31/2030	Capital Equipment	$	9,286,250		9,215,322		9,286,250	2.56	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%			4/17/2023	12/31/2030			1,851,004		1,833,421		1,851,004	0.51	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%			3/22/2022	12/31/2030			97,750		97,345		97,750	0.03	%
Axis Air Parent, LLC Preferred Units		Equity										3/22/2022				4,436		443,636		2,966,777	0.82	%
Total																	$	11,589,724	$	14,201,781	3.92	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Baker Manufacturing Company, LLC													Evansville, WI
BSC Blue Water Holdings, LLC Series A Units (SBIC II)	(5)	Equity									7/5/2022		Capital Equipment		743,770		743,770		1,087,673	0.30	%
Total																$	743,770	$	1,087,673	0.30	%
Bart & Associates, LLC													McLean, VA
Term Loan (SBIC)	(4)(10)(12)	First Lien	3M SOFR+	5.00	%	1.00	%	9.12	%		8/16/2024	8/16/2030	High Tech Industries	$	8,808,516		8,685,981		8,808,516	2.43	%
Term Loan (SBIC)	(4)(10)(12)	First Lien	3M SOFR+	5.00	%	1.00	%	9.12	%		1/2/2026	8/16/2030		$	1,995,000		1,960,084		1,995,000	0.55	%
Delayed Draw Term Loan	(10)(12)	First Lien	3M SOFR+	5.00	%	1.00	%	9.12	%		8/16/2024	8/16/2030		$	1,720,387		1,707,061		1,720,387	0.47	%
B&A Partners Holding, LLC Series A Preferred Units		Equity									8/16/2024				722,411		722,411		905,066	0.25	%
B&A Partners Holding, LLC Series B Preferred Units		Equity									1/2/2026				35,585		43,413		-	0.00	%
Total																$	13,118,950	$	13,428,969	3.70	%
BL Products Parent, L.P.													Houston, TX
Class A Units		Equity									2/1/2022		Capital Equipment		879,060		983,608		1,062,555	0.29	%
Total																$	983,608	$	1,062,555	0.29	%
Café Valley, Inc.													Phoenix, AZ
CF Topco LLC Units		Equity									8/28/2019		Beverage & Food		9,160		916,015		1,653,928	0.46	%
Total																$	916,015	$	1,653,928	0.46	%
Carolinas Buyer, Inc.	(9)												Charlotte, NC
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%		12/20/2024	12/20/2030	Beverage & Food	$	6,762,846		6,663,689		6,593,775	1.82	%
Carolinas Holding, L.P. Class A Units		Equity									12/20/2024				466		465,637		367,569	0.10	%
Total																$	7,129,326	$	6,961,344	1.92	%
CEATI International Inc.	(7)(9)												Montreal, Canada
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.70	%		2/19/2021	12/31/2027	Services: Business	$	7,782,246		7,782,246		7,782,246	2.14	%
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.70	%		12/20/2024	12/31/2027			2,956,298		2,940,009		2,956,298	0.81	%
CEATI Holdings, LP Class A Units		Equity									2/19/2021				250,000		132,919		297,723	0.08	%
Total																$	10,855,174	$	11,036,267	3.03	%
Cerebro Buyer, LLC	(9)												Columbia, SC
Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		3/15/2023	3/15/2029	Healthcare & Pharmaceuticals	$	4,526,683		4,460,479		4,526,683	1.25	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		11/12/2024	3/15/2029			150,761		149,652		150,761	0.04	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		11/12/2024	3/15/2029			226,141		224,477		226,141	0.06	%
Cerebro Holdings Partnership, L.P. Series A Partner Interests		Equity									3/15/2023				62,961		62,961		68,130	0.02	%
Cerebro Holdings Partnership, L.P. Series B Partner Interests		Equity									3/15/2023				341,091		328,640		369,090	0.10	%
Total																$	5,226,209	$	5,340,805	1.47	%
CF Arch Holdings LLC													Houston, TX
Class A Units	(6)	Equity									8/10/2022		Services: Business		100,000		77,583		168,595	0.05	%
Total																$	77,583	$	168,595	0.05	%
CF512, Inc.	(9)												Blue Bell, PA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.86	%		9/1/2021	9/1/2026	Media: Advertising, Printing & Publishing	$	13,187,513		13,156,922		13,121,575	3.61	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.89	%		9/1/2021	9/1/2026			2,847,824		2,844,393		2,833,585	0.78	%
Revolver	(11)	First Lien	1M SOFR+	6.00	%	1.00	%	9.69	%		9/1/2021	9/1/2026			9,000		9,000		8,955	0.00	%
StellPen Holdings, LLC Membership Interests		Equity									9/1/2021				220,930		220,930		169,636	0.05	%
Total																$	16,231,245	$	16,133,751	4.44	%
Champion Services Acquireco LLC	(9)												Round Rock, TX
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		9/19/2025	9/19/2030	Construction & Building	$	11,040,000		10,836,870		10,764,000	2.97	%
Champion Services Holdings LLC Class A-1 Units		Equity									9/19/2025				268,889		268,889		220,359	0.06	%
Total																$	11,105,759	$	10,984,359	3.03	%
Channel Partners Intermediateco, LLC	(9)												Tampa Bay, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.64	%		2/24/2022	2/7/2027	Retail	$	12,948,948		12,921,323		12,948,948	3.56	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.64	%		3/27/2023	2/7/2027			1,651,182		1,646,632		1,651,182	0.45	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.67	%		2/24/2022	2/7/2027			54,070		54,070		54,070	0.01	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.64	%		2/24/2022	2/7/2027			23,656		23,656		23,656	0.01	%
Total																$	14,645,681	$	14,677,856	4.03	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
CompleteCase, LLC														Seattle, WA
CompleteCase Holdings, Inc. Class A Common Stock (SBIC II)	(5)	Equity										12/21/2020		Services: Consumer		417		5		-	0.00	%
CompleteCase Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity										12/21/2020				522		521,734		135,234	0.04	%
CompleteCase Holdings, Inc. Class A Common Stock		Equity										4/27/2023				89		1		-	0.00	%
CompleteCase Holdings, Inc. Series C Preferred Stock		Equity										4/27/2023				111		111,408		111,409	0.03	%
Total																	$	633,148	$	246,643	0.07	%
Compost 360 Acquisition, LLC	(9)													Tampa, FL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	8.70	%	1.50	%	8/2/2023	8/2/2028	Environmental Industries	$	9,517,017		9,386,405		8,993,581	2.48	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	8.70	%	1.50	%	8/2/2023	8/2/2028			1,047,731		1,038,171		990,106	0.27	%
Revolver	(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%			8/2/2023	8/2/2028			12,163		12,163		11,494	0.00	%
Revolver	(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%			8/2/2023	8/2/2028			48,868		48,868		46,180	0.01	%
Compost 360 Investments, LLC Class A Units		Equity										8/2/2023				3,124		300,041		71,921	0.02	%
Compost 360 Investments, LLC Preferred Units		Equity										8/29/2025				614		27,630		40,281	0.01	%
Total																	$	10,813,278	$	10,153,563	2.79	%
COPILOT Provider Support Services, LLC	(9)													Maitland, FL
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%			11/22/2022	11/22/2027	Healthcare & Pharmaceuticals	$	4,825,000		4,786,453		4,825,000	1.33	%
QHP Project Captivate Blocker, Inc. Common Stock		Equity										11/22/2022				4		285,714		389,789	0.11	%
Total																	$	5,072,167	$	5,214,789	1.44	%
Craftable Intermediate II Inc.	(9)													Dallas, TX
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.50	%	1.50	%	9.20	%			6/30/2023	6/30/2028	High Tech Industries	$	9,856,832		9,753,183		9,856,832	2.72	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.50	%	9.20	%			6/30/2023	6/30/2028			40,000		40,000		40,000	0.01	%
Gauge Craftable LP Partnership Interests		Equity										6/30/2023				626,690		626,690		1,151,341	0.32	%
Total																	$	10,419,873	$	11,048,173	3.05	%
Curion Holdings, LLC	(9)													Chicago, IL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%			7/29/2022	12/31/2028	Services: Business	$	12,624,039		12,544,848		12,497,799	3.43	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%			7/29/2022	12/31/2028			40,570		40,570		40,164	0.01	%
SP CS Holdings LLC Class A Units		Equity										7/29/2022				867,173		867,173		758,724	0.21	%
Total																	$	13,452,591	$	13,296,687	3.65	%
DFO Enterprises, LLC	(9)													Rochester, MN
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.70	%			9/22/2025	9/22/2030	Capital Equipment	$	11,522,572		11,336,998		11,407,346	3.14	%
DFO Ultimate Holding, LP Class A Units		Equity										9/22/2025				8,931		412,252		901,709	0.25	%
Total																	$	11,749,250	$	12,309,055	3.39	%
DMD Systems Recovery, LLC	(9)													Tempe, AZ
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%			8/22/2025	8/22/2031	High Tech Industries	$	6,100,000		6,001,156		6,008,500	1.66	%
Phoenix Parent LLC Common Units		Equity										8/19/2025				180,000		180,000		220,615	0.06	%
Total																	$	6,181,156	$	6,229,115	1.72	%
DTE Holding Company, LLC														Roselle, IL
Class A-2 Units		Equity										4/13/2018		Energy: Oil & Gas		776,316		466,204		-	0.00	%
Class AA Units		Equity										4/13/2018				723,684		723,684		-	0.00	%
Total																	$	1,189,888	$	-	0.00	%
Elder Care Opco LLC	(9)													Scarsdale, NY
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	4.75	%	1.50	%	8.45	%			7/31/2025	7/31/2030	Healthcare & Pharmaceuticals	$	7,765,545		7,647,713		7,649,062	2.11	%
Rallyday Elder Care Co-Investors LP Partnership Interests		Equity										7/31/2025				910,966		916,719		1,096,600	0.30	%
Total																	$	8,564,432	$	8,745,662	2.41	%
Elliott Aviation, LLC														Moline, IL
Term Loan	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.82	%	1/31/2020	4/30/2026	Aerospace & Defense	$	9,881,671		9,881,671		8,745,279	2.41	%
SP EA Holdings LLC Term Loan		Unsecured		15.00	%	-	%	-	%	15.00	%	10/26/2023	6/30/2026			79,127		79,127		-	0.00	%
Term Loan		First Lien		4.31	%	-	%	-	%	4.31	%	4/25/2025	4/30/2026			60,480		60,480		53,525	0.01	%
Revolver A	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.82	%	1/31/2020	4/30/2026			1,632,666		1,632,666		1,632,666	0.45	%
Revolver B	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.82	%	3/1/2023	4/30/2026			768,822		768,822		768,822	0.21	%
Revolver C (Priority)	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.82	%	3/7/2025	4/30/2026			1,049,747		1,049,747		1,049,747	0.29	%
SP EA Holdings LLC Class A Units		Equity										1/31/2020				105,938,486		901,594		-	0.00	%
Total																	$	14,374,107	$	12,250,039	3.37	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Environmental Remedies, LLC	(9)													Hayward, CA
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%			1/15/2025	1/15/2030	Services: Business	$	7,257,454		7,141,174		7,112,305	1.96	%
ERI Parent Holdings, LLC Class A Units	(6)	Equity										1/15/2025				163,109		160,347		123,316	0.03	%
Total																	$	7,301,521	$	7,235,621	1.99	%
Equine Network, LLC														Boulder, CO
Term A Loan (SBIC)	(4)(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.28	%			5/22/2023	5/22/2028	Hotel, Gaming, & Leisure	$	6,931,491		6,837,814		6,931,491	1.91	%
Term A Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.28	%			7/28/2025	5/22/2028		$	2,111,673		2,069,731		2,111,673	0.58	%
Revolver	(9)(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.28	%			5/22/2023	5/22/2028			166,667		166,667		166,667	0.05	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.28	%			5/22/2023	5/22/2028			97,900		97,900		97,900	0.03	%
Total																	$	9,172,112	$	9,307,731	2.57	%
Eskola LLC														Morristown, TN
Term Loan	(10)(12)	First Lien	3M SOFR+	5.50	%	1.50	%	-	%	9.71	%	12/19/2024	12/19/2029	Construction & Building	$	7,693,747		7,589,472		7,078,247	1.95	%
Delayed Draw Term Loan	(10)(12)	First Lien	3M SOFR+	5.50	%	1.50	%	-	%	9.87	%	12/19/2024	12/19/2029			2,849,838		2,833,315		2,621,851	0.72	%
Eskola Holdings, LLC Class A Units		Equity										12/19/2024				314		893,747		11,846	0.00	%
Eskola Holdings, LLC Class C Units		Equity										6/4/2025				28		56,349		1,224	0.00	%
Eskola Holdings, LLC Class D Units		Equity										3/24/2026				1,014		101,429		53,480	0.01	%
Total																	$	11,474,312	$	9,766,648	2.68	%
evolv Consulting, LLC	(9)													Dallas, TX
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.16	%			12/7/2023	12/7/2028	Services: Business	$	9,335,314		9,219,715		9,335,314	2.57	%
evolv Holdco, LLC Preferred Units		Equity										12/7/2023				481,521		481,521		650,797	0.18	%
Total																	$	9,701,236	$	9,986,111	2.75	%
Evriholder Acquisition, Inc.														Anaheim, CA
Term Loan (SBIC II)	(5)(9)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.60	%			1/23/2023	1/24/2028	Consumer Goods: Durable	$	11,943,233		11,812,602		11,883,517	3.26	%
KEJ Holdings LP Class A Units		Equity										1/23/2023				873,333		873,333		941,928	0.26	%
Total																	$	12,685,935	$	12,825,445	3.52	%
Exacta Land Surveyors, LLC	(20)													Cleveland, OH
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	9.60	%	1.00	%	2/8/2019	12/31/2027	Services: Business	$	16,306,780		16,306,780		15,654,510	4.31	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	9.60	%	1.00	%	7/15/2022	12/31/2027			991,982		991,982		952,303	0.26	%
SP EA Holdings LLC Term Loan		Unsecured		15.00						15.00	%	4/22/2024	6/30/2028			115,243		115,243		80,670	0.02	%
SP ELS Holdings LLC Class A Units		Equity										2/8/2019				1,338,661		1,124,414		169,759	0.05	%
Total																	$	18,538,419	$	16,857,242	4.64	%
Exigo, LLC	(9)													Dallas, TX
Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.00	%	10.02	%			3/16/2022	3/16/2027	Services: Business	$	8,608,719		8,579,109		8,436,545	2.32	%
Gauge Exigo Coinvest, LLC Common Units		Equity										3/16/2022				377,535		377,535		134,603	0.04	%
Total																	$	8,956,644	$	8,571,148	2.36	%
FairWave Holdings, LLC	(9)													Kansas City, MO
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			4/1/2024	4/1/2029	Beverage & Food	$	7,462,960		7,348,917		7,425,645	2.05	%
Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			12/31/2025	4/1/2029			103,461		101,764		102,944	0.03	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			4/1/2024	4/1/2029			494,992		494,992		492,517	0.14	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			4/1/2024	4/1/2029			609,221		609,221		606,175	0.17	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			4/1/2024	4/1/2029			2,634,468		2,611,957		2,621,296	0.72	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			12/31/2025	4/1/2029			566,354		561,613		563,522	0.16	%
GRC Java Holdings, LLC Class A Units		Equity										4/1/2024				3,229		347,692		509,000	0.14	%
Total																	$	12,076,156	$	12,321,099	3.41	%
Fidus Systems Inc.	(7)(9)													Ottawa, Canada
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.50	%	9.20	%			10/17/2025	10/17/2031	High Tech Industries	$	4,747,201		4,668,460		4,675,993	1.29	%
Fidus Investments Holdings, L.P. Common Units		Equity										10/17/2025				268		267,728		292,465	0.08	%
Total																	$	4,936,188	$	4,968,458	1.37	%
FiscalNote Boards LLC	(7)(9)													Toronto, Canada
Term Loan	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.92	%			3/11/2024	3/12/2029	Services: Business	$	3,189,592		3,147,438		3,141,748	0.87	%
FCP-Connect Holdings LLC Class A Common Shares		Equity										5/28/2024				284		-		-	0.00	%
FCP-Connect Holdings LLC Series A Preferred Shares		Equity										5/28/2024				284		190,382		150,112	0.04	%
Total																	$	3,337,820	$	3,291,860	0.91	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
General LED OPCO, LLC													San Antonio, TX
Term Loan	(11)	Second Lien	3M SOFR+	9.00	%	1.50	%	12.80	%		5/1/2018	4/30/2027	Services: Business	$	4,500,000		4,500,000		4,410,000	1.21	%
Total																$	4,500,000	$	4,410,000	1.21	%
GS HVAM Intermediate, LLC	(9)												Carlsbad, CA
Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.27	%		10/18/2019	11/30/2026	Beverage & Food	$	12,091,429		12,089,052		12,030,972	3.31	%
Revolver	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.28	%		10/18/2019	11/30/2026			441,919		441,919		439,709	0.12	%
Revolver	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.27	%		10/18/2019	11/30/2026			176,768		176,768		175,884	0.05	%
Revolver	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.32	%		10/18/2019	11/30/2026			2,032,828		2,032,828		2,022,664	0.56	%
HV GS Acquisition, LP Class A Interests		Equity									10/2/2019				2,144		563,209		2,128,229	0.59	%
Total																$	15,303,776	$	16,797,458	4.63	%
GSF Buyer, LLC	(9)												North Andover, MA
Term Loan	(11)	First Lien	3M SOFR+	4.75	%	1.00	%	8.42	%		4/30/2025	4/30/2031	Beverage & Food	$	4,238,674		4,182,609		4,196,287	1.16	%
GSF Group Holdings, L.P. Class A2 Units		Equity									4/30/2025				241		240,595		210,727	0.06	%
Total																$	4,423,204	$	4,407,014	1.22	%
Guidant Corp.	(9)												Erie, PA
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.20	%		3/11/2024	3/12/2029	Energy: Oil & Gas	$	9,828,634		9,599,511		9,828,634	2.70	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.20	%		3/11/2024	3/12/2029			422,283		422,283		422,283	0.12	%
Titan Meter Topco LP Class A Units		Equity									3/11/2024				574,863		581,608		986,653	0.27	%
Total																$	10,603,402	$	11,237,570	3.09	%
HV Watterson Holdings, LLC	(29)												Schaumburg, IL
Term Loan		First Lien		12.00	%	-	%	-	%		12/17/2021	12/17/2026	Services: Business	$	13,568,717		13,523,185		7,869,856	2.17	%
Revolver		First Lien		12.00	%	-	%	-	%		12/17/2021	12/17/2026			99,975		99,975		57,986	0.02	%
Delayed Draw Term Loan		First Lien		12.00	%	-	%	-	%		12/17/2021	12/17/2026			329,632		328,984		191,187	0.05	%
HV Watterson Parent, LLC Class A Units		Equity									12/17/2021				1,632		1,631,591		-	0.00	%
Total																$	15,583,735	$	8,119,029	2.24	%
I2P Holdings, LLC													Cleveland, OH
Series A Preferred Units		Equity									1/31/2018		Services: Business		750,000		-		1,252,762	0.35	%
Total																$	-	$	1,252,762	0.35	%
Identity Theft Guard Solutions, Inc.	(9)												Portland, OR
Term Loan	(11)	First Lien	1M SOFR+	5.50	%	1.50	%	9.17	%		2/28/2025	2/28/2030	Services: Business	$	8,635,658		8,493,222		8,549,301	2.36	%
IDX Parent, LLC Class A-2 Units		Equity									2/28/2025				352,915		352,915		563,339	0.16	%
Total																$	8,846,137	$	9,112,640	2.52	%
Impact Home Services LLC													Tampa, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%		4/28/2023	4/28/2028	Services: Consumer	$	5,790,254		5,719,353		5,703,400	1.57	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%		10/11/2023	4/28/2028			527,740		520,819		519,824	0.14	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%		6/30/2023	4/28/2028			263,193		259,881		259,245	0.07	%
Revolver	(11)(17)	First Lien	3M SOFR+	8.50	%	2.00	%	12.20	%		4/28/2023	4/28/2028			82,500		82,500		81,263	0.02	%
Impact Holdings Georgia LLC Class A Units		Equity									4/28/2023				375		375,156		-	0.00	%
Impact Holdings Georgia LLC Class A-1 Units		Equity									1/31/2024				38		37,962		52,350	0.01	%
Total																$	6,995,671	$	6,616,082	1.81	%
Infolinks Media Buyco, LLC													Ridgewood, NJ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%		11/1/2021	5/1/2028	Media: Advertising, Printing & Publishing	$	7,168,033		7,145,998		7,096,353	1.95	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%		6/6/2024	5/1/2028			2,440,641		2,429,831		2,416,235	0.67	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%		11/1/2021	5/1/2028			1,444,163		1,440,887		1,429,721	0.39	%
Tower Arch Infolinks Media, LP LP Interests	(6)(15)	Equity									10/28/2021				506,165		252,349		233,340	0.06	%
Total																$	11,269,065	$	11,175,649	3.07	%
Informativ, LLC	(9)												Fresno, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.60	%		7/30/2021	7/30/2027	High Tech Industries	$	8,286,321		8,273,391		8,286,321	2.28	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.60	%		3/31/2022	7/30/2027			6,247,279		6,236,208		6,247,279	1.72	%
Credit Connection Holdings, LLC Series A Units		Equity									7/30/2021				804,384		300,783		1,507,414	0.42	%
Total																$	14,810,382	$	16,041,014	4.42	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Inoapps Bidco, LLC														Houston, TX
Term Loan B	(11)	First Lien	3M SONIA+	5.75	%	1.00	%	9.59	%			2/15/2022	8/15/2028	High Tech Industries	£	9,625,000	$	12,996,305	$	12,654,978	3.48	%
Revolver	(11)	First Lien	1M SOFR+	5.75	%	1.00	%	9.53	%			2/15/2022	8/15/2028			20,000		20,000		20,000	0.01	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.68	%			2/15/2022	8/15/2028			80,417		80,229		80,417	0.02	%
Inoapps Holdings, LLC Series A-1 Preferred Units		Equity										2/15/2022				739,844		783,756		1,107,638	0.31	%
Total																	$	13,880,290	$	13,863,033	3.82	%
iNovex Information Systems Incorporated	(9)													Columbia, MD
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.95	%			12/17/2024	12/17/2030	Services: Business	$	7,428,157		7,334,817		7,316,735	2.02	%
Revolver	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.93	%			12/17/2024	12/17/2030			5,000		5,000		4,925	0.00	%
Revolver	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.95	%			12/17/2024	12/17/2030			9,000		9,000		8,865	0.00	%
Total																	$	7,348,817	$	7,330,525	2.02	%
International Cybernetics Acquisition, LLC	(9)													Largo, FL
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%			6/3/2025	6/3/2030	Services: Business	$	4,712,393		4,640,750		4,641,707	1.28	%
International Cybernetics Holdings, LP Class B Units		Equity										6/2/2025				1,051		105,113		90,896	0.03	%
Total																	$	4,745,863	$	4,732,603	1.31	%
Invincible Boat Company LLC														Opa Locka, FL
Term Loan	(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.32	%	8/28/2019	3/31/2028	Consumer Goods: Durable	$	5,395,913		5,395,913		4,451,628	1.23	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.32	%	8/28/2019	3/31/2028			4,980,843		4,980,843		4,109,195	1.13	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.32	%	6/1/2021	3/31/2028			1,108,303		1,108,303		914,350	0.25	%
Revolver	(11)	First Lien	1M SOFR+	7.50	%	1.50	%	11.32	%			8/28/2019	3/31/2028			1,595,745		1,595,745		1,316,490	0.36	%
Warbird Parent Holdco, LLC Class A Units		Equity										8/28/2019				1,362,575		1,299,691		-	0.00	%
Total																	$	14,380,495	$	10,791,663	2.97	%
Ledge Lounger, Inc.														Katy, TX
Term Loan A (SBIC)	(4)(11)	First Lien	3M SOFR+	7.50	%	1.00	%	0.00	%	11.35	%	11/9/2021	11/9/2027	Consumer Goods: Durable	$	8,116,889		8,094,115		7,264,616	2.00	%
Revolver	(11)	First Lien	3M SOFR+	7.50	%	1.00	%	0.00	%	11.35	%	11/9/2021	11/9/2027			91,508		91,508		81,900	0.02	%
SP L2 Holdings LLC Class A Units		Equity										11/3/2025				398,972		-		-	0.00	%
SP L2 Holdings LLC Class A Units (SBIC)	(4)	Equity										11/9/2021				50,596,837		389,832		-	0.00	%
SP L2 Holdings LLC Class C Units (SBIC)	(4)	Equity										10/9/2024				140,834		34,504		-	0.00	%
Total																	$	8,609,959	$	7,346,516	2.02	%
Lightning Intermediate II, LLC	(9)													Jacksonville, FL
Term Loan (SBIC)	(4)(11)	First Lien	6M SOFR+	6.25	%	1.00	%	9.85	%			6/6/2022	6/5/2028	Consumer Goods: Non-Durable	$	11,214,012		11,149,499		11,157,942	3.07	%
Gauge Vimergy Coinvest, LLC Units		Equity										6/6/2022				399		391,274		255,289	0.07	%
Total																	$	11,540,773	$	11,413,231	3.14	%
MacKenzie-Childs Acquisition, Inc.	(9)													Aurora, NY
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.35	%			9/2/2022	9/2/2027	Consumer Goods: Durable	$	86,331		85,882		86,331	0.02	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%			9/2/2022	9/2/2027			16,667		16,667		16,667	0.00	%
MacKenzie-Childs Investment, LP Partnership Interests		Equity										9/2/2022				100,000		100,000		201,375	0.06	%
Total																	$	202,549	$	304,373	0.08	%
Madison Logic Holdings, Inc.	(9)													New York, NY
Term Loan	(11)	First Lien	1M SOFR+	7.00	%	1.00	%	10.67	%			12/30/2022	12/30/2028	Media: Advertising, Printing & Publishing	$	3,638,939		3,594,472		3,238,656	0.89	%
Term Loan	(11)	First Lien	1M SOFR+	7.50	%	1.00	%	-	%	11.17	%	12/30/2022	12/30/2028			909,735		898,618		809,664	0.22	%
BC Partners Glengarry Co-Investment LP Class 1 Interests		Equity										7/7/2023				404,964		404,964		51,867	0.01	%
Total																	$	4,898,054	$	4,100,187	1.12	%
MBH Management LLC	(9)													Washington, DC
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.00	%	1.50	%	8.67	%			11/15/2024	11/15/2029	Healthcare & Pharmaceuticals	$	9,358,283		9,213,864		9,358,283	2.58	%
MBH Parent, LLC Common Units	(6)	Equity										11/15/2024				646,944		614,511		999,978	0.28	%
Total																	$	9,828,375	$	10,358,261	2.86	%
MedLearning Group, LLC														New York, NY
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%			3/26/2024	12/30/2027	Healthcare & Pharmaceuticals	$	4,252,433		4,207,685		4,231,171	1.17	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%			3/26/2024	12/30/2027			2,492,293		2,466,066		2,479,832	0.68	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%			3/26/2024	12/30/2027			2,035,353		2,013,996		2,025,176	0.56	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%			8/5/2025	12/30/2027			992,500		981,341		987,538	0.27	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.45	%			3/26/2024	12/30/2027			2,424,410		2,406,841		2,412,288	0.66	%
Total																	$	12,075,929	$	12,136,005	3.34	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Michelli, LLC	(9)												New Orleans, LA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%		12/21/2023	12/21/2028	Capital Equipment	$	4,887,500		4,826,683		4,887,500	1.35	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.70	%		12/21/2023	12/21/2028			3,827,896		3,801,453		3,827,896	1.05	%
SP MWM Holdco LLC Class A Units		Equity									12/21/2023				509,215		509,215		806,469	0.22	%
Total																$	9,137,351	$	9,521,865	2.62	%
Microbe Formulas LLC	(9)												Meridian, ID
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.27	%		4/4/2022	4/3/2028	Consumer Goods: Non-Durable	$	5,099,275		5,079,165		5,099,275	1.40	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.27	%		11/20/2024	4/3/2028			4,201,105		4,187,407		4,201,105	1.16	%
Total																$	9,266,572	$	9,300,380	2.56	%
Mobotrex Acquisition, LLC	(9)												Davenport, IA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		2/28/2025	6/7/2031	Wholesale	$	5,131,044		5,069,473		5,079,734	1.40	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		2/28/2025	6/7/2031			3,578,584		3,535,642		3,542,798	0.98	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		2/28/2025	6/7/2031			11,585		11,585		11,469	0.00	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		2/28/2025	6/7/2031			5,793		5,793		5,735	0.00	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		11/6/2025	6/7/2031			256,165		254,660		253,603	0.07	%
Total																$	8,877,153	$	8,893,339	2.45	%
MOM Enterprises, LLC	(9)												Richmond, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.50	%	2.00	%	9.20	%		5/19/2021	5/19/2028	Consumer Goods: Non-Durable	$	15,076,148		15,064,114		14,925,388	4.10	%
MBliss SPC Holdings, LLC Units		Equity									5/19/2021				933,333		933,333		908,758	0.25	%
Total																$	15,997,447	$	15,834,146	4.35	%
Monarch Behavioral Therapy, LLC	(9)												Addison, TX
Term Loan (SBIC)	(4)(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		6/6/2024	6/6/2030	Healthcare & Pharmaceuticals	$	6,646,254		6,544,713		6,613,023	1.82	%
Revolver	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		6/6/2024	6/6/2030			614,310		614,310		611,238	0.17	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%		6/6/2024	6/6/2030			901,587		894,095		897,079	0.25	%
BI Investors, LLC Class A Units		Equity									6/6/2024				4,343		430,481		590,501	0.16	%
Total																$	8,483,599	$	8,711,841	2.40	%
Monitorus Holding, LLC	(7)												London, UK
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.21	%		5/24/2022	5/24/2027	Media: Diversified & Production	$	104,998		104,728		102,898	0.03	%
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.21	%		6/27/2025	5/24/2027		€	1,458,975		1,674,647		1,639,718	0.45	%
Revolver	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.21	%		5/24/2022	5/24/2027		€	106,498		115,781		113,465	0.03	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.21	%		5/24/2022	5/24/2027		€	104,998		105,976		103,856	0.03	%
Sapphire Aggregator S.a r.l. Class A Shares		Equity									9/1/2022				557,689		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class B Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class C Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class D Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class E Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class F Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class G Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class H Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class I Shares		Equity									9/1/2022				557,682		11,156		3,366	0.00	%
Sapphire Aggregator S.a r.l. Class 3 Ordinary Shares		Equity									3/31/2025				8,422,591		48,774		44,279	0.01	%
Total																$	2,150,310	$	2,034,510	0.55	%
Morgan Electrical Group Intermediate Holdings, Inc.	(9)												Freemont, CA
Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.50	%	9.92	%		8/3/2023	8/3/2029	Construction & Building	$	4,054,417		3,995,173		4,013,873	1.11	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.50	%	9.92	%		8/3/2023	8/3/2029			1,602,969		1,590,698		1,586,939	0.44	%
Morgan Electrical Group Holdings, LLC Series A-2 Preferred Units		Equity									8/3/2023				380		380,330		237,839	0.07	%
Total																$	5,966,201	$	5,838,651	1.62	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Naumann/Hobbs Material Handling Corporation II, Inc.														Phoenix, AZ
Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			8/30/2019	12/31/2026	Services: Business	$	8,007,016		8,007,016		7,886,911	2.17	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			8/30/2019	12/31/2026			5,049,254		5,049,254		4,973,515	1.37	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.45	%			8/30/2019	12/31/2026			1,789,578		1,789,578		1,762,734	0.49	%
Naumann Hobbs Holdings, L.P. Class A-1 Units		Equity										9/29/2022				123		220,379		-	0.00	%
Naumann Hobbs Holdings, L.P. Class A-2 Units		Equity										9/29/2022				123		220,379		-	0.00	%
Naumann Hobbs Holdings, L.P. Class B Units		Equity										12/27/2024				142		142,200		623,904	0.17	%
Naumann Hobbs Holdings, L.P. Class W-1 Units		Equity										5/27/2025				57		-		-	0.00	%
Naumann Hobbs Holdings, L.P. Class W-2 Units		Equity										5/27/2025				49		-		248,616	0.07	%
Total																	$	15,428,806	$	15,495,680	4.27	%
NINJIO, LLC	(9)													Westlake Village, CA
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.70	%			10/12/2022	10/12/2027	Media: Diversified & Production	$	4,962,500		4,925,487		4,962,500	1.37	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.71	%			10/12/2022	10/12/2027			20,000		20,000		20,000	0.01	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.70	%			10/12/2022	10/12/2027			100,000		99,521		100,000	0.03	%
NINJIO Holdings, LLC Units		Equity										10/12/2022				184		313,253		333,639	0.09	%
Gauge NINJIO Blocker LLC Preferred Units		Equity										9/22/2023				14		14,470		21,705	0.01	%
Total																	$	5,372,731	$	5,437,844	1.51	%
Norplex Micarta Acquisition, Inc.	(9)													Postville, IA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			10/31/2024	10/31/2029	Chemicals, Plastics, & Rubber	$	12,837,500		12,640,621		12,709,125	3.50	%
Revolver	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%			10/31/2024	10/31/2029		$	166,667		166,667		165,000	0.05	%
Norplex Micarta Parent, LP Preferred Units		Equity										10/31/2024				739,804		739,804		737,285	0.20	%
Total																	$	13,547,092	$	13,611,410	3.75	%
NS412, LLC														Dallas, TX
Term Loan	(11)	Second Lien	3M SOFR+	8.25	%	1.00	%	12.05	%			5/6/2019	5/6/2027	Services: Consumer	$	7,615,000		7,615,000		7,615,000	2.10	%
NS Group Holding Company, LLC Class A Units		Equity										5/6/2019				782		795,002		892,605	0.25	%
Total																	$	8,410,002	$	8,507,605	2.35	%
Onpoint Industrial Services, LLC														Deer Park, TX
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.75	%	1.75	%	9.45	%			11/16/2022	11/16/2027	Services: Business	$	12,225,256		12,127,451		12,225,256	3.37	%
Spearhead TopCo, LLC Class A Units		Equity										11/16/2022				606,742		606,742		1,290,894	0.36	%
Total																	$	12,734,193	$	13,516,150	3.73	%
Pacific Shoring Holdings, LLC	(9)													Santa Rosa, CA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.70	%			1/10/2025	1/10/2030	Capital Equipment	$	8,415,000		8,297,372		8,330,850	2.30	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.71	%			1/10/2025	1/10/2030			20,000		20,000		19,800	0.01	%
PSP Ultimate Holding, LP Class A Units		Equity										1/10/2025				10,606		498,491		648,873	0.18	%
Total																	$	8,815,863	$	8,999,523	2.49	%
PCP MT Aggregator Holdings, L.P.	(7)													Oak Brook, IL
Common Units		Equity										3/29/2019		Finance		825,020		-		5,704,257	1.57	%
Total																	$	-	$	5,704,257	1.57	%
PCS Software, Inc.	(9)													Shenandoah, TX
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.35	%	0.50	%	7/1/2019	6/30/2027	Transportation & Logistics	$	13,892,190		13,892,190		13,753,268	3.78	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.35	%	0.50	%	7/1/2019	6/30/2027			1,821,927		1,821,927		1,803,708	0.50	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.35	%	0.50	%	7/1/2019	6/30/2027			6,063		6,063		6,002	0.00	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.35	%	0.50	%	7/1/2019	6/30/2027			960,683		960,683		951,076	0.26	%
PCS Software Parent, LLC Class A Common Units		Equity										9/16/2022				471,211		9,995		255,043	0.07	%
Total																	$	16,690,858	$	16,769,097	4.61	%
Pearl Media Holdings, LLC	(24)													Montclair, NJ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%			8/31/2022	8/31/2027	Media: Advertising, Printing & Publishing	$	8,597,389		8,539,928		8,468,428	2.33	%
Total																	$	8,539,928	$	8,468,428	2.33	%
Peltram Group Holdings LLC														Auburn, WA
Class A Units		Equity										12/30/2021		Construction & Building		508,516		451,142		677,889	0.19	%
Total																	$	451,142	$	677,889	0.19	%
Pilot Power Group Acquisition, Inc.														San Diego, CA
Term Loan (SBIC II)	(5)(10)(12)	First Lien	3M SOFR+	5.25	%	1.50	%	9.93	%			12/18/2025	12/18/2030	Services: Business	$	12,000,000		11,798,120		11,820,000	3.26	%
BCM Pilot Opportunity Parent, LLC Class A Common Interests	(28)	Equity										12/18/2025				4,423		366,868		495,555	0.14	%
Total																	$	12,164,988	$	12,315,555	3.40	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Plus Delta Buyer LLC	(9)													Carlsbad, CA
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%			1/16/2025	1/16/2031	Services: Business	$	7,326,000		7,201,558		7,216,110	1.99	%
Plus Delta Parent LLC Class A Units		Equity										1/16/2025				325,765		325,764		320,219	0.09	%
Total																	$	7,527,322	$	7,536,329	2.08	%
Precision Strategies, LLC	(9)													Washington, DC
Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.67	%			3/3/2026	3/3/2031	Services: Business	$	6,176,011		6,084,573		6,084,544	1.68	%
Total																	$	6,084,573	$	6,084,544	1.68	%
Premiere Digital Services, Inc.	(9)													Los Angeles, CA
Term Loan	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.92	%			11/3/2021	11/3/2026	Media: Broadcasting & Subscription	$	12,038,926		12,029,788		12,038,926	3.31	%
Premiere Digital Holdings, Inc. Common Stock		Equity										10/18/2018				5,000		-		2,825,755	0.78	%
Total																	$	12,029,788	$	14,864,681	4.09	%
Pure Upper Holdco LLC	(9)													Newtown Square, PA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	4.75	%	1.00	%	8.45	%			12/3/2025	12/3/2031	Healthcare & Pharmaceuticals	$	9,975,000		9,879,456		9,875,250	2.72	%
Xanitos Topco, LLC Class A Units		Equity										12/3/2025				246,667		246,667		257,410	0.07	%
Total																	$	10,126,123	$	10,132,660	2.79	%
Recharged Opco, LLC														Bradenton, FL
Term Loan	(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028	Services: Consumer	$	5,324,759		5,287,947		3,114,984	0.86	%
Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028			83,115		83,115		48,622	0.01	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	7/2/2024	2/7/2028			20,223		20,223		40,446	0.01	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	9/13/2024	2/7/2028			20,000		20,000		40,000	0.01	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	11/12/2024	2/7/2028			45,000		45,000		90,000	0.02	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	1/3/2025	2/7/2028			10,000		10,000		20,000	0.01	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	2/7/2025	2/7/2028			31,000		31,000		62,000	0.02	%
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	10/22/2025	2/7/2028			120,000		120,000		240,000	0.07	%
Priority Revolver	(9)(18)(26)	First Lien		12.50	%			-	%	-	%	12/15/2025	2/7/2028			32,500		32,500		65,000	0.02	%
Delayed Draw Term Loan	(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028			98,473		98,077		57,607	0.02	%
Recharged Holdings, LLC Common Units		Equity										11/13/2025				61,182		-		-	0.00	%
Total																	$	5,747,862	$	3,778,659	1.05	%
Red's All Natural, LLC														Franklin, TN
Term Loan (SBIC II)	(5)(10)(12)	First Lien	3M SOFR+	4.50	%	1.50	%	8.96	%			1/31/2023	1/31/2029	Beverage & Food	$	8,815,327		8,715,947		8,727,174	2.40	%
Centeotl Co-Invest B, LP Common Units		Equity										1/31/2023				710,600		710,600		333,829	0.09	%
Total																	$	9,426,547	$	9,061,003	2.49	%
RIA Advisory Borrower, LLC	(9)													Coral Gables, FL
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	2.00	%	9.31	%			5/1/2023	8/2/2027	High Tech Industries	$	5,820,000		5,774,991		5,820,000	1.60	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	2.00	%	9.31	%			5/1/2023	8/2/2027			33,064		33,064		33,064	0.01	%
RIA Advisory Aggregator, LLC Class A Units		Equity										5/1/2023				104,425		165,078		271,691	0.07	%
RIA Products Aggregator, LLC Class A Units	(6)	Equity										5/1/2023				81,251		69,342		39,195	0.01	%
Total																	$	6,042,475	$	6,163,950	1.69	%
Said Intermediate, LLC	(9)													Boston, MA
Term Loan	(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.17	%			6/13/2024	6/13/2029	Media: Advertising, Printing & Publishing	$	7,349,610		7,246,218		7,312,862	2.01	%
FCP-Said Holdings, LLC Class A Common Shares		Equity										6/13/2024				804		-		-	0.00	%
FCP-Said Holdings, LLC Series A Preferred Shares		Equity										6/13/2024				852		350,649		365,864	0.10	%
Total																	$	7,596,867	$	7,678,726	2.11	%
Sales Benchmark Index, LLC														Dallas, TX
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.90	%			1/7/2020	7/7/2026	Services: Business	$	11,968,656		11,968,656		11,968,656	3.30	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.90	%			1/7/2020	7/7/2026			443,820		443,820		443,820	0.12	%
SBI Holdings Investments LLC Class A Units		Equity										1/7/2020				66,573		665,730		411,089	0.11	%
Total																	$	13,078,206	$	12,823,565	3.53	%
Silver Corporate Holdings LLC														Hendersonville, TN
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.50	%	9.20	%			1/9/2026	1/9/2031	Services: Business	$	7,112,476		6,992,741		6,992,773	1.93	%
Silver Parent LLC Class A Units		Equity										1/9/2026				30,780		498,641		498,641	0.14	%
Total																	$	7,491,382	$	7,491,414	2.07	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Solid Surface Holdco, LLC	(9)												Charlotte, NC
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.70	%		6/6/2025	6/6/2030	Services: Business	$	5,651,566		5,553,093		5,651,566	1.56	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.70	%		6/6/2025	6/6/2030			4,260,028		4,219,128		4,260,028	1.17	%
Carolina Topco Holdings, LP Class A-1 Units		Equity									6/6/2025				6,881		688,137		828,141	0.23	%
Total																$	10,460,358	$	10,739,735	2.96	%
Spectra Confectionery Limited	(7)												Vaughan, Canada
Term Loan	(11)	First Lien	6M SOFR+	5.75	%	1.50	%	9.51	%		11/14/2024	11/15/2029	Beverage & Food	$	5,250,760		5,189,909		5,171,999	1.42	%
SK Spectra Holdings LP Class A Units		Equity									11/15/2024				298		297,765		208,221	0.06	%
Total																$	5,487,674	$	5,380,220	1.48	%
Strategus, LLC	(9)												Englewood, CO
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		1/27/2025	1/27/2031	Media: Advertising, Printing & Publishing	$	7,742,928		7,627,879		7,626,784	2.10	%
Revolver		First Lien	3M SOFR+	5.00	%	1.00	%	8.71	%		1/27/2025	1/27/2031		$	10,000		10,000		9,850	0.00	%
CIVC Strategus Blocker, LLC Class A Units		Equity									1/27/2025				170		170,362		186,321	0.05	%
Total																$	7,808,241	$	7,822,955	2.15	%
Synergy Health Partners MSO, LLC	(9)												Troy, MI
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%		3/6/2026	3/6/2031	Healthcare & Pharmaceuticals	$	4,000,000		3,940,779		3,940,760	1.09	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%		3/6/2026	3/6/2031			37,500		37,222		36,945	0.01	%
Synergy Health Partners Holdings, LLC Common Units		Equity									3/6/2026				436,580		136,634		136,634	0.04	%
Total																$	4,114,635	$	4,114,339	1.14	%
TAC LifePort Holdings, LLC													Woodland, WA
Common Units		Equity									3/1/2021		Aerospace & Defense		546,543		189,094		1,220,748	0.34	%
Total																$	189,094	$	1,220,748	0.34	%
Teckrez, LLC													Jacksonville, FL
Term Loan	(11)	First Lien	1M SOFR+	6.75	%	2.00	%	10.52	%		5/24/2024	11/30/2028	Chemicals, Plastics, & Rubber	$	4,229,313		4,187,496		4,208,166	1.16	%
Revolver	(11)	First Lien	1M SOFR+	6.75	%	2.00	%	10.52	%		5/24/2024	11/30/2028			473,873		473,873		471,504	0.13	%
Revolver		First Lien	1M SOFR+	6.75	%	2.00	%	10.52	%		5/24/2024	11/30/2028			144,222		144,222		143,501	0.04	%
HH-Teckrez Parent, LP Preferred Units		Equity									5/24/2024				90,139		90,139		182,132	0.05	%
Total																$	4,895,730	$	5,005,303	1.38	%
The Hardenbergh Group, Inc.	(9)												Livonia, MI
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.30	%		8/7/2023	8/7/2028	Healthcare & Pharmaceuticals	$	10,239,350		10,097,720		10,239,350	2.82	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.30	%		9/30/2024	8/7/2028			791,971		781,353		791,971	0.22	%
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.30	%		10/1/2025	8/7/2028			497,500		489,031		497,500	0.14	%
BV HGI Holdings, L.P. Class A Units		Equity									8/7/2023				677,548		677,548		707,510	0.19	%
Total																$	12,045,652	$	12,236,331	3.37	%
The Millennium Alliance LLC	(9)												New York, NY
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.70	%		7/31/2025	7/31/2031	Services: Business	$	11,442,500		11,282,207		11,213,650	3.09	%
BV MA Blocker, Inc. Class A-2 Common Stock		Equity									7/31/2025				52		515,556		579,428	0.16	%
Total																$	11,797,763	$	11,793,078	3.25	%
Tiger 21, LLC	(9)												New York, NY
Term Loan	(11)	First Lien	3M SOFR+	4.50	%	1.00	%	8.20	%		12/30/2024	12/30/2030	Services: Consumer	$	11,850,000		11,651,664		11,850,000	3.26	%
Tiger 21 Blocker, Inc. Class A-3 Common Stock		Equity									12/30/2024				565		564,635		849,344	0.23	%
Total																$	12,216,299	$	12,699,344	3.49	%
Tilley Distribution, Inc.	(9)												Baltimore, MD
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.85	%		4/1/2022	12/31/2026	Chemicals, Plastics, & Rubber	$	84,275		84,023		80,904	0.02	%
Revolver		First Lien	3M SOFR+	6.00	%	1.00	%	9.82	%		4/1/2022	12/31/2026		$	13,043		13,043		12,521	0.00	%
Total																$	97,066	$	93,425	0.02	%
TradePending OpCo Aggregator, LLC	(9)												Carrboro, NC
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%		3/2/2021	4/16/2026	High Tech Industries	$	9,404,040		9,404,040		9,357,020	2.58	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%		8/4/2023	4/16/2026			2,405,213		2,405,213		2,393,187	0.66	%
Revolver	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%		3/2/2021	4/16/2026			33,333		33,333		33,166	0.01	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.10	%		8/4/2023	4/16/2026			671,550		671,550		668,192	0.18	%
TradePending Holdings, LLC Series A Units		Equity									3/2/2021				908,333		947,699		1,624,453	0.45	%
TradePending Holdings, LLC Series A-1 Units		Equity									8/4/2023				132,783		260,254		329,123	0.09	%
Total																$	13,722,089	$	14,405,141	3.97	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
TriplePoint Acquisition Holdings LLC	(9)												Columbus, OH
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.95	%		5/31/2024	5/31/2029	Construction & Building	$	5,262,752		5,189,212		5,262,752	1.45	%
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.95	%		4/8/2025	5/31/2029			1,756,071		1,728,089		1,756,071	0.48	%
TriplePoint Holdco LLC Class A Units		Equity									5/31/2024				557,968		508,733		2,315,726	0.64	%
Total																$	7,426,034	$	9,334,549	2.57	%
Unicat Catalyst Holdings, LLC													Alvin, TX
Unicat Catalyst, LLC Class A Units		Equity									4/27/2021		Chemicals, Plastics, & Rubber		7,500		750,000		785,503	0.22	%
Unicat Catalyst, LLC Class A-1 Units		Equity									12/13/2023				974		58,446		60,746	0.02	%
Total																$	808,446	$	846,249	0.24	%
U.S. Expediters, LLC	(9)												Stafford, TX
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.15	%		12/22/2021	12/22/2026	Healthcare & Pharmaceuticals	$	14,273,781		14,223,759		13,845,568	3.81	%
Cathay Hypnos LLC Units		Equity									12/22/2021				1,737,087		1,353,155		276,274	0.08	%
Total																$	15,576,914	$	14,121,842	3.89	%
USDTL AcquisitionCo, Inc.	(9)												Des Plaines, IL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%		12/9/2024	12/9/2030	Healthcare & Pharmaceuticals	$	5,925,000		5,826,643		5,806,500	1.60	%
Revolver	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%		12/9/2024	12/9/2030			20,000		20,000		19,600	0.01	%
Revolver	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.95	%		12/9/2024	12/9/2030			20,000		20,000		19,600	0.01	%
USDTL Holdings, LLC Preferred Units		Equity									12/9/2024				110		110,000		88,178	0.02	%
Total																$	5,976,643	$	5,933,878	1.64	%
Valor Buyco, LLC	(9)												Leesburg, VA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	4.75	%	1.00	%	8.45	%		12/23/2025	12/23/2031	Services: Business	$	6,000,000		5,941,930		5,940,000	1.64	%
Valor Holdco LLC Voting Common Units		Equity									12/23/2025				4,306		430,556		386,382	0.11	%
Total																$	6,372,486	$	6,326,382	1.75	%
Venbrook Buyer, LLC													Los Angeles, CA
Term Loan B (SBIC)	(4)(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026	Services: Business	$	14,611,018		14,611,018		9,204,941	2.54	%
Term Loan B	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			177,127		177,127		111,590	0.03	%
Term Loan (SBIC)	(4)(25)	First Lien		13.50	%			-	%		12/31/2025	5/27/2026			1,898,736		1,898,736		1,898,736	0.52	%
Term Loan	(25)	First Lien		13.50	%			-	%		12/5/2025	5/27/2026			471,156		471,156		296,828	0.08	%
Term Loan (SBIC)	(4)(25)	First Lien		13.50	%			-	%		2/25/2026	5/27/2026			1,256,415		1,256,415		1,256,415	0.35	%
Term Loan (SBIC)	(4)(25)	First Lien		13.50	%			-	%		2/3/2026	5/27/2026			628,201		628,201		628,201	0.17	%
Revolver	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			2,750,080		2,750,080		1,732,550	0.48	%
Delayed Draw Term Loan	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			5,308,287		5,308,287		3,344,221	0.92	%
Venbrook Holdings, LLC Convertible Term Loan	(14)(25)	Unsecured		10.00	%	-	%	-	%		3/31/2022	12/20/2028			117,483		117,483		-	0.00	%
Venbrook Holdings, LLC Common Units		Equity									3/13/2020				822,758		819,262		-	0.00	%
Total																$	28,037,765	$	18,473,482	5.09	%
WER Holdings, LLC	(9)												Sugar Hill, GA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%		4/11/2024	4/11/2030	Services: Business	$	2,656,841		2,617,363		2,616,988	0.72	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%		5/30/2025	4/11/2030			423,683		418,194		417,328	0.11	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%		4/11/2024	4/11/2030			241,729		241,729		238,103	0.07	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%		4/11/2024	4/11/2030			1,322,992		1,311,926		1,303,147	0.36	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.20	%		5/30/2025	4/11/2030			884,786		878,737		871,514	0.24	%
Blade Landscape Investments, LLC Class A Units		Equity									4/11/2024				1,803		180,300		225,927	0.06	%
Total																$	5,648,249	$	5,673,007	1.56	%
Whisps Holdings LP													Elgin, IL
Class A Units		Equity									4/18/2019		Beverage & Food		500,000		500,000		-	0.00	%
Class A-1 Units		Equity									3/6/2023				280,939		182,610		-	0.00	%
Total																$	682,610	$	-	0.00	%
Total Non-control, non-affiliated investments																$	976,006,465	$	974,379,087	268.44	%
Total Investments																$	1,015,318,318	$	989,994,564	272.73	%
LIABILITIES IN EXCESS OF OTHER ASSETS																		$	(626,999,043)	(172.73)	%
NET ASSETS																		$	362,995,521	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)

(1)

See Note 1 to the consolidated financial statements contained herein for a discussion of the methodologies used to value securities in the portfolio. All investments are valued using significant unobservable inputs, which are considered “Level 3” under the fair value hierarchy.

(2)

Debt investments are income producing and equity securities are non-income producing, unless otherwise noted.

(3)

Principal amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Euro (“€”), or Great British Pound (“£”).

(4)

Investments held by the SBIC I subsidiary (as defined in Note 1 to the consolidated financial statements contained herein), which include $47,434 of cash and $201,105,935 of investments (at cost), are excluded from the obligations to the lenders of the Credit Facility (as defined in Note 9). Stellus Capital Investment Corporation’s (the “Company”) obligations to the lenders of the Credit Facility are secured by a first priority security interest in all investments and cash and cash equivalents, except for cash and investments held by the SBIC subsidiaries (as defined in Note 1).

(5)

Investments held by the SBIC II subsidiary (as defined in Note 1 to the consolidated financial statements contained herein), which include $194,732 of cash and $293,962,229 of investments (at cost), are excluded from the obligations to the lenders of the Credit Facility. The Company’s obligations to the lenders of the Credit Facility are secured by a first priority security interest in all investments and cash and cash equivalents, except for cash and investments held by the SBIC subsidiaries.

(6)

Security is income producing through dividends or distributions.

(7)

The investment is not a “qualifying asset” under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets. Qualifying assets represented approximately 94.9% of the Company’s total assets as of March 31, 2026.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)

(8)

Represents a PIK interest security. At the option of the issuer, interest can be paid in cash or cash and PIK interest. The percentage of PIK interest shown is the maximum PIK interest that can be elected by the issuer.

(9)

At March 31, 2026, the Company had the following outstanding revolver and delayed draw term loan commitments:

(10)


							Unused
				Unfunded			Commitment
Investments		Security		Commitment			Fee		Maturity
2X LLC		Revolver		$	12,500		0.50%		June 5, 2028
Ad.Net Acquisition, LLC		Revolver			519,608		0.50%		May 7, 2028
AdCellerant LLC		Revolver			875,995		0.50%		December 12, 2028
ADS Group Opco, LLC		Revolver			55,198		0.00%		December 31, 2027
American Refrigeration, LLC		Revolver			100,000		0.50%		March 31, 2028
AMII Acquisition, LLC		Revolver			500,000		0.50%		December 4, 2029
Amika OpCo LLC*		Revolver			100,000		0.50%		July 1, 2028
ArborWorks, LLC		Revolver			172,730		0.00%		November 6, 2028
Axis Portable Air LLC		Revolver			100,000		0.50%		December 31, 2030
Carolinas Buyer, Inc.		Delayed Draw Term Loan			2,216,358		1.00%		December 20, 2030
Carolinas Buyer, Inc.		Revolver			100,000		0.50%		December 20, 2030
CEATI International Inc.		Revolver			100,000		0.50%		December 31, 2027
Cerebro Buyer, LLC		Delayed Draw Term Loan			753,805		1.00%		March 15, 2029
Cerebro Buyer, LLC		Revolver			100,000		0.50%		March 15, 2029
CF512, Inc.		Revolver			91,000		0.50%		September 1, 2026
Champion Services Acquireco LLC		Revolver			100,000		0.50%		September 19, 2030
Channel Partners Intermediateco, LLC		Revolver			57,449		0.50%		February 7, 2027
Compost 360 Acquisition, LLC		Revolver			24,167		0.50%		August 2, 2028
COPILOT Provider Support Services, LLC		Revolver			100,000		0.50%		November 22, 2027
Craftable Intermediate II Inc.		Revolver			60,000		0.50%		June 30, 2028
Curion Holdings, LLC		Revolver			60,855		0.50%		December 31, 2028
DFO Enterprises, LLC		Revolver			100,000		0.50%		September 22, 2030
DMD Systems Recovery, LLC		Delayed Draw Term Loan			1,000,000		0.50%		August 22, 2031
DMD Systems Recovery, LLC		Revolver			100,000		0.50%		August 22, 2031
Elder Care Opco LLC		Delayed Draw Term Loan			2,500,000		0.75%		July 31, 2030
Elder Care Opco LLC		Revolver			100,000		0.50%		July 31, 2030
Environmental Remedies, LLC		Delayed Draw Term Loan			2,681,986		0.50%		January 15, 2030
Environmental Remedies, LLC		Revolver			100,000		0.50%		January 15, 2030
evolv Consulting, LLC		Revolver			1,363,636		0.50%		December 7, 2028
Evriholder Acquisition, Inc.		Revolver			100,000		0.50%		January 24, 2028
Exigo, LLC		Revolver			100,000		0.50%		March 16, 2027
FairWave Holdings, LLC		Revolver			38,076		0.50%		April 1, 2029
FairWave Holdings, LLC		Delayed Draw Term Loan			12,872		0.50%		April 1, 2029
Fidus Systems Inc.		Delayed Draw Term Loan			3,172,733		0.50%		October 17, 2031
Fidus Systems Inc.		Revolver			100,000		0.50%		October 17, 2031
FiscalNote Boards LLC		Revolver			391,962		0.50%		March 12, 2029
GSF Buyer, LLC		Delayed Draw Term Loan			2,847,136		1.00%		April 30, 2031
GSF Buyer, LLC		Revolver			100,000		0.50%		April 30, 2031
Guidant Corp.		Revolver			633,424		0.50%		March 12, 2029
Identity Theft Guard Solutions, Inc.		Revolver			100,000		0.50%		February 28, 2030
Informativ, LLC		Revolver			100,000		0.50%		July 30, 2027
Inoapps Bidco, LLC		Revolver			80,000		0.50%		August 15, 2028
iNovex Information Systems Incorporated		Revolver			86,000		0.50%		December 17, 2030
International Cybernetics Acquisition, LLC		Delayed Draw Term Loan			3,561,003		1.00%		June 3, 2030
International Cybernetics Acquisition, LLC		Revolver			100,000		0.50%		June 3, 2030
Lightning Intermediate II, LLC		Revolver			100,000		0.50%		June 5, 2028

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)


							Unused
				Unfunded			Commitment
Investments		Security		Commitment			Fee		Maturity
MacKenzie-Childs Acquisition, Inc.		Revolver		$	83,333		0.50%		September 2, 2027
Madison Logic Holdings, Inc.		Revolver			52,632		0.50%		December 30, 2027
MBH Management LLC		Delayed Draw Term Loan			500,000		1.00%		November 15, 2029
MBH Management LLC		Revolver			500,000		0.50%		November 15, 2029
Michelli, LLC		Revolver			1,296,076		0.50%		December 21, 2028
Microbe Formulas LLC		Revolver			100,000		0.38%		April 3, 2028
Mobotrex Acquisition, LLC		Delayed Draw Term Loan			1,292,891		1.00%		June 7, 2031
Mobotrex Acquisition, LLC		Revolver			156,398		0.50%		June 7, 2031
MOM Enterprises, LLC		Revolver			100,000		0.50%		May 19, 2028
Monarch Behavioral Therapy, LLC		Delayed Draw Term Loan			173,452		1.00%		June 6, 2030
Monarch Behavioral Therapy, LLC		Revolver			108,408		0.50%		June 6, 2030
Morgan Electrical Group Intermediate Holdings, Inc.		Revolver			100,000		0.50%		August 3, 2029
NINJIO, LLC		Revolver			80,000		0.50%		October 12, 2027
Norplex Micarta Acquisition, Inc.		Revolver			333,333		0.50%		October 31, 2029
Pacific Shoring Holdings, LLC		Revolver			80,000		0.50%		January 10, 2030
PCS Software, Inc.		Revolver			1,318,136		0.50%		June 30, 2027
Plus Delta Buyer LLC		Delayed Draw Term Loan			3,753,955		1.00%		January 16, 2031
Plus Delta Buyer LLC		Revolver			100,000		0.50%		January 16, 2031
Precision Strategies, LLC		Revolver			100,000		0.50%		March 3, 2031
Premiere Digital Services, Inc.		Revolver			576,923		0.50%		November 3, 2026
Pure Upper Holdco LLC		Delayed Draw Term Loan			1,000,000		1.00%		December 3, 2031
Pure Upper Holdco LLC		Revolver			100,000		0.50%		December 3, 2031
Recharged Opco, LLC		Revolver			10,000		0.50%		February 7, 2028
RIA Advisory Borrower, LLC		Revolver			66,936		0.50%		August 2, 2027
Said Intermediate, LLC		Revolver			1,168,831		0.50%		June 13, 2029
Silver Corporate Holdings LLC		Revolver			100,000		0.50%		January 9, 2031
Simpler Trading, LLC		Revolver			20,000		0.50%		March 21, 2030
Solid Surface Holdco, LLC		Revolver			138,000		0.50%		June 6, 2030
Strategus, LLC		Delayed Draw Term Loan			2,524,737		1.00%		January 27, 2031
Strategus, LLC		Revolver			90,000		0.50%		January 27, 2031
Synergy Health Partners MSO, LLC		Delayed Draw Term Loan			462,500		1.00%		March 6, 2031
Synergy Health Partners MSO, LLC		Revolver			100,000		0.50%		March 6, 2031
Teckrez, LLC		Revolver			824,126		1.00%		November 30, 2028
The Hardenbergh Group, Inc.		Revolver			100,000		0.50%		August 6, 2028
The Millennium Alliance LLC		Revolver			100,000		0.50%		July 31, 2031
Tiger 21, LLC		Revolver			100,000		0.50%		December 30, 2030
Tilley Distribution, Inc.		Revolver			86,957		0.50%		December 31, 2026
TradePending OpCo Aggregator, LLC		Revolver			66,667		0.50%		August 16, 2026
TriplePoint Acquisition Holdings LLC		Revolver			743,957		0.50%		May 31, 2029
U.S. Expediters, LLC		Revolver			30,000		0.50%		December 22, 2026
USDTL AcquisitionCo, Inc.		Delayed Draw Term Loan			500,000		1.00%		December 9, 2030
USDTL AcquisitionCo, Inc.		Revolver			60,000		0.50%		December 9, 2030
Valor Buyco LLC		Delayed Draw Term Loan			100,000		0.50%		December 23, 2031
Valor Buyco LLC		Revolver			100,000		0.50%		December 23, 2031
WER Holdings, LLC		Delayed Draw Term Loan			1,408,896		1.00%		April 11, 2030
WER Holdings, LLC**		Revolver			582,348		0.50%		April 11, 2030
		Total Unfunded Debt Commitments		$	47,157,985

(a)

* Included in this investment is a Line of Credit in the amount of $4,861, with a Line of Credit rate of 5.25% and a maturity of July 1, 2028.

** Included in this investment is a Line of Credit in the amount of $81,144, with a Line of Credit rate of 5.50% and a maturity of April 11, 2030.

(10)

This loan is a unitranche investment.

(11)

These loans include an interest rate floor feature, which is lower than the applicable rates; therefore, the floor is not in effect.

(12)

These loans are last-out term loans with contractual rates higher than the applicable rates; therefore, the floor is not in effect.

(13)

Investment has been on non-accrual since November 1, 2024.

(14)

This loan is convertible to common units at maturity or at the election of the majority of holders.

(15)

Excluded from the investment is an uncalled capital commitment in an amount not to exceed $243,835.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)

(16)

Investment has been on non-accrual since the the investment date.

(17)

Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $17,500 with an unfunded rate of 0.50% and a maturity of April 28, 2028. The Company has full discretion to fund the revolver commitment.

(18)

The Company has full discretion to fund the revolver commitment, with an unfunded rate of 0.50% and a maturity of February 7, 2028. As of March 31, 2026, there was $10,000 in undrawn revolver commitment.

(19)

Investment has been on non-accrual since the later of January 1, 2024 or the investment date.

(20)

Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,500,000, with an unfunded rate of 0.00% and a maturity of December 31, 2027. The Company has full discretion to fund the revolver commitment.

(21)

Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $96,717, with an unfunded rate of 0.00% and a maturity of September 3, 2026. The Company has full discretion to fund the revolver commitment.

(22)

Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. Changes in the value of the Company’s control investments during the three months ended March 31, 2026 were as follows:


		December 31, 2025		Gross Additions		Gross Reductions		Amount of Realized		Amount of Unrealized		March 31, 2026		Interest Income
Investments	Security	Value		(a)		(b)		Loss		Appreciation (Depreciation)		Value		(c)
EH Real Estate Services, LLC
Term Loan A-1	First Lien	$	-	$	-	$	(265,092)	$	-	$	265,092	$	-	$	-
Term Loan A-2	First Lien		-		-		(154,848)		-		154,848		-		-
Term Loan A-3	First Lien		-		-		(62,791)		-		62,791		-		-
Term Loan A-4	First Lien		1,159,263		-		(1,505,537)		-		346,274		-		-
Term Loan A-5	First Lien		4,415,603		-		-		-		(3,899,494)		516,109		-
Term Loan A-6	First Lien		1,096,456		-		-		-		-		1,096,456		-
Term Loan A-7	First Lien		1,644,685		-		-		-		-		1,644,685		-
Term Loan A-8	First Lien		-		816,516		-		-		-		816,516		-
Term Loan A-9	First Lien		-		899,683		-		-		-		899,683		-
Term Loan A-10	First Lien		-		1,032,441		-		-		-		1,032,441		-
Revolver	First Lien		63,597		-		-		-		-		63,597		-
EH Holdco, LLC Common Units	Equity		-		-		-		-		-		-		-
EH Holdco, LLC Series A Preferred Units	Equity		-		-		-		-		-		-		-
J.R. Watkins, LLC
Term Loan	First Lien	$	3,399,302	$	-	$	-	$	-	$	(543,888)		2,855,414		-
Revolver	First Lien		3,174,226		69,000		-		-		69,000		3,312,226		-
Class A Preferred	Equity		-		-		-		-		-		-		-
Class A Units	Equity		-		-		-		-		-		-		-
Total control investments		$	14,953,132	$	2,817,640	$	(1,988,268)	$	-	$	(3,545,377)	$	12,237,127	$	-

(a) Gross additions include increases in the cost basis of investments resulting from new investments, follow-on investments, PIK interest or dividends, the amortization of any unearned income or discounts on debt investments, as applicable.

(b) Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales and return of capital.

(c) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the Control category.

(23)

Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments. Changes in the value of the Company’s non-controlled, affiliated investments during the three months ended March 31, 2026 were as follows:


		December 31, 2025		Gross Additions		Gross Reductions		Amount of Realized		Amount of Unrealized		March 31, 2026		Interest Income
Investments	Security	Value		(a)		(b)		Loss		Appreciation (Depreciation)		Value		(c)
Simpler Trading, LLC
Term Loan (SBIC)	First Lien	$	2,868,074	$	72,300	$	-	$	-	$	-	$	2,940,374	$	72,345
Revolver	First Lien		-		-		-		-		-		-		-
Trade Education Holdings, L.L.C. Class A Units	Equity		-		-		-		-		-		-		-
Simpler Trading, LLC Preferred Units (SBIC)	Equity		882,600		-		-		-		(444,624)		437,976		-
Simpler Ultimate Holdings, LLC Class A Units (SBIC)	Equity		-		-		-		-		-		-		-
Total non-controlled, affiliated investments		$	3,750,674	$	72,300	$	-	$	-	$	(444,624)	$	3,378,350	$	72,345

(a) Gross additions include increases in the cost basis of investments resulting from new investments, follow-on investments, payment-in-kind interest or dividends, the amortization of any unearned income or discounts on debt investments, as applicable.

(b) Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales and return of capital.

(c) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the non-controlled, affiliated investments category.

(24)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $100,000, with an unfunded rate of 0.00% and a maturity of August 31, 2027. The Company has full discretion to fund the revolver commitment.

(25)	Investment has been on non-accrual since the later of October 1, 2025 or the investment date.

(26)	Investment has been on non-accrual since the later of August 21, 2024 or the investment date.

(27)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,526,600, with an unfunded rate of 0.50% and a maturity of June 22, 2029. The Company has full discretion to fund the revolver commitment.

(28)	Excluded from the investment is an uncalled capital commitment in an amount not to exceed $99,799.

(29)	Investment has been on non-accrual since January 1, 2026.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

March 31, 2026

(unaudited)

Abbreviation Legend

PIK — Payment-In-Kind

SOFR — Secured Overnight Financing Rate

SONIA — Sterling Overnight Index Average

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Control investments	(22)
EH Real Estate Services, LLC														Skokie, IL
Term Loan A-1	(16)	First Lien		15.00	%	-	%	-	%	-	%	9/3/2021	9/3/2026	FIRE: Real Estate	$	265,092		265,092		-	0.00	%
Term Loan A-2	(16)	First Lien		15.00	%	-	%	-	%	-	%	4/3/2023	9/3/2026			154,848		154,848		-	0.00	%
Term Loan A-3	(16)	First Lien		15.00	%	-	%	-	%	-	%	6/7/2023	9/3/2026			62,791		62,791		-	0.00	%
Term Loan A-4	(16)	First Lien		15.00	%	-	%	-	%	-	%	7/12/2023	9/3/2026			1,505,537		1,505,537		1,159,263	0.31	%
Term Loan A-5	(16)	First Lien		15.00	%	-	%	-	%	-	%	1/8/2024	9/3/2026			5,734,549		5,734,549		4,415,603	1.19	%
Term Loan A-6	(16)	First Lien		15.00	%	-	%	-	%	-	%	10/3/2025	9/3/2026			1,096,456		1,096,456		1,096,456	0.30	%
Term Loan A-7	(16)	First Lien		15.00	%	-	%	-	%	-	%	11/12/2025	9/30/2026			1,644,685		1,644,685		1,644,685	0.44	%
Revolver	(16)(21)	First Lien		15.00	%	-	%	-	%	-	%	10/3/2023	9/3/2026			63,597		63,597		63,597	0.02	%
EH Holdco, LLC Common Units		Equity										10/3/2023				15,356		3		-	0.00	%
EH Holdco, LLC Series A Preferred Units		Equity										9/3/2021				7,892		7,891,642		-	0.00	%
Total																	$	18,419,200	$	8,379,604	2.26	%
J.R. Watkins, LLC														San Francisco, CA
Term Loan (SBIC)	(4)(19)	First Lien		4.09	%			-	%			12/22/2017	12/31/2026	Consumer Goods: Non-Durable	$	10,082,316		10,082,316		2,520,579	0.68	%
Term Loan (SBIC)	(4)(19)	First Lien		5.00	%			-	%			12/22/2017	12/31/2026			3,514,892		3,514,892		878,723	0.24	%
Priority Revolver (SBIC)	(4)(19)	First Lien		5.00	%	-	%	-	%	-	%	5/3/2024	12/31/2026			1,587,113		1,587,113		3,174,226	0.86	%
J.R. Watkins Ultimate Holdings, LLC Class A Units (SBIC)	(4)	Equity										4/9/2025				500		-		-	0.00	%
Total																	$	15,184,321	$	6,573,528	1.78	%
Total Control investments																	$	33,603,521	$	14,953,132	4.04	%
Non-controlled, affiliated investments	(23)
Simpler Trading, LLC														Austin, TX
Term Loan (SBIC)	(4)	First Lien		10.00	%			-	%	10.00	%	12/28/2021	3/21/2030	Education	$	2,868,074		2,868,074		2,868,074	0.77	%
Simpler Trading, LLC Preferred Units (SBIC)	(4)	Equity										3/21/2025				1,657		1,656,650		882,600	0.24	%
Simpler Ultimate Holdings, LLC Class A Units (SBIC)	(4)	Equity										3/21/2025				281,936		281,936		-	0.00	%
Total																	$	4,806,660	$	3,750,674	1.01	%
Total Non-controlled, affiliated investments																	$	4,806,660	$	3,750,674	1.01	%
Non-controlled, non-affiliated investments	(4)(5)
2X LLC														Berwyn, PA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.67	%			6/5/2023	6/5/2028	Services: Business	$	5,376,454		5,299,849		5,376,454	1.45	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.67	%			10/31/2023	6/5/2028			1,415,799		1,394,300		1,415,799	0.38	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.67	%			12/2/2024	6/5/2028			3,813,089		3,771,087		3,813,089	1.03	%
Revolver	(9)(11)	First Lien	3M SOFR+	5.00	%	2.00	%	8.67	%			6/5/2023	6/5/2028			62,500		62,500		62,500	0.02	%
2X Investors LP Class A Units		Equity										6/5/2023				43,875		176,915		1,220,397	0.33	%
Total																	$	10,704,651	$	11,888,239	3.21	%
Ad.Net Acquisition, LLC	(9)													Los Angeles, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.93	%			5/7/2021	5/7/2028	Services: Business	$	16,778,592		16,730,161		16,778,593	4.52	%
Ad.Net Holdings, Inc. Series A Common Stock (SBIC II)	(5)	Equity										5/7/2021				8,644		86,444		0	0.00	%
Ad.Net Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity										5/7/2021				7,780		777,995		783,313	0.21	%
Total																	$	17,594,600	$	17,561,906	4.73	%
AdCellerant LLC	(9)													Denver, CO
Term A Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	6.00	%	2.00	%	9.72	%			12/12/2023	12/12/2028	Media: Advertising, Printing & Publishing	$	9,800,000		9,670,440		9,751,000	2.63	%
AdCellerant Holdings, LLC Series A Units		Equity										12/12/2023				728,710		728,710		567,340	0.15	%
Total																	$	10,399,150	$	10,318,340	2.78	%
ADS Group Opco, LLC														Lakewood, CO
Term Loan (SBIC II)	(5)	First Lien		5.00	%	-	%	-	%	5.00	%	6/4/2021	12/31/2027	Aerospace & Defense	$	13,101,406		13,071,113		11,856,773	3.19	%
Priority Revolver (SBIC II)	(5)(9)	First Lien		5.00	%	-	%	-	%	5.00	%	9/30/2024	12/31/2027			15,698		15,698		31,396	0.01	%
ADS Group Topco, LLC Class A Units		Equity										6/4/2021				77,626		288,691		-	0.00	%
ADS Group Topco, LLC Class B Units		Equity										6/4/2021				56,819		211,309		-	0.00	%
ADS Group Topco, LLC Class D Units		Equity										9/30/2024				432		-		-	0.00	%
ADS Group Topco, LLC Class Y Units		Equity										4/11/2023				48,216		165,027		-	0.00	%
ADS Group Topco, LLC Class Z Units		Equity										6/15/2022				72,043		267,929		-	0.00	%
Total																	$	14,019,767	$	11,888,169	3.20	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Advanced Barrier Extrusions, LLC														Rhinelander, WI
Term Loan B (SBIC)	(4)(11)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	11/30/2020	11/30/2026	Containers, Packaging, & Glass	$	16,843,750		16,781,420		-	0.00	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	12/6/2024	11/30/2026			795,882		970,378		2,331,934	0.63	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	2/5/2025	11/30/2026			875,000		875,000		2,563,750	0.69	%
Super Priority Term Loan (SBIC)	(4)(13)	First Lien		15.00	%			-	%	-	%	3/26/2025	11/30/2026			500,000		500,000		1,465,000	0.39	%
Term Loan A (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			2,607,637		565,204		-	0.00	%
Revolver (SBIC)	(4)(13)	First Lien	1M SOFR+	9.50	%	1.00	%	-	%	-	%	3/26/2025	11/30/2026			1,558,434		337,790		-	0.00	%
GP ABX Holdings Partnership, L.P. Partner Interests		Equity										8/8/2018				644,737		528,395		-	0.00	%
GP ABX Holdings Partnership, L.P. Series B Preferred Interests		Equity										1/5/2023				1,562		156,182		-	0.00	%
Total																	$	20,714,369	$	6,360,684	1.71	%
AGT Robotique Inc.	(7)(27)													Trois Rivieres, Canada
Term Loan	(11)	First Lien	3M SOFR+	7.50	%	1.00	%	9.17	%			6/24/2024	6/22/2029	Capital Equipment	$	10,566,027		10,406,341		10,354,707	2.79	%
Total																	$	10,406,341	$	10,354,707	2.79	%
American Refrigeration, LLC	(9)													Jacksonville, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%			3/31/2023	3/31/2028	Capital Equipment	$	8,048,097		7,942,571		8,048,097	2.17	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%			3/31/2023	3/31/2028			98,250		97,500		98,250	0.03	%
AR-USA Holdings, LLC Class A Units	(6)	Equity										3/31/2023				141		129,350		224,577	0.06	%
Total																	$	8,169,421	$	8,370,924	2.26	%
AMII Acquisition, LLC	(9)													Coral Gables, FL
Term Loan (SBIC II )	(5)(11)	First Lien	3M SOFR+	4.50	%	1.50	%	8.17	%			12/4/2024	12/4/2029	Services: Consumer	$	8,731,273		8,623,147		8,687,618	2.34	%
AMII Holdings, LP Class B Units		Equity										12/3/2024				14,246		142,460		176,331	0.05	%
Total																	$	8,765,607	$	8,863,949	2.39	%
Amika OpCo LLC	(9)													Brooklyn, NY
Term Loan	(11)	First Lien	6M SOFR+	5.25	%	0.75	%	9.27	%			7/1/2022	7/1/2029	Consumer Goods: Non-Durable	$	94,638		93,519		94,638	0.03	%
Term Loan	(11)	First Lien	6M SOFR+	5.75	%	0.75	%	9.63	%			12/5/2023	7/1/2029			9,511,775		9,377,401		9,511,775	2.56	%
Ishtar Co-Invest-B LP Partnership Interests		Equity										7/1/2022				77,778		38,133		311,230	0.08	%
Oshun Co-Invest-B LP Partnership Interests		Equity										7/1/2022				22,222		21,141		88,922	0.02	%
Total																	$	9,530,194	$	10,006,565	2.69	%
Anne Lewis Strategies, LLC
SG AL Investment, LLC Common Units	(6)	Equity										3/5/2021		Washington, DC		1,000		327,192		3,162,656	0.85	%
SG AL Investment, LLC Common-A Units	(6)	Equity										12/22/2023		Services: Business		239		482,200		985,826	0.27	%
Total																	$	809,392	$	4,148,482	1.12	%
APE Holdings, LLC														Deer Park, TX
Class A Units		Equity										9/5/2014		Chemicals, Plastics, & Rubber		375,000		375,000		40,530	0.01	%
Total																	$	375,000	$	40,530	0.01	%
ArborWorks, LLC														Oakhurst, CA
Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	-	%	10.34	%	11/6/2023	11/6/2028	Environmental Industries	$	4,031,455		4,031,455		4,031,455	1.09	%
Revolver	(9)	First Lien		15.00	%			-	%	15.00	%	11/6/2023	11/6/2028			1,815,868		1,815,868		1,815,868	0.49	%
ArborWorks Intermediate Holdco, LLC Class A-1 Preferred Units		Equity										11/6/2023				16,037		3,610,847		6,317,213	1.70	%
ArborWorks Intermediate Holdco, LLC Class B-1 Preferred Units		Equity										11/6/2023				16,037		-		-	0.00	%
ArborWorks Intermediate Holdco, LLC Class A-1 Common Units		Equity										11/6/2023				1,923		-		-	0.00	%
Total																	$	9,458,170	$	12,164,536	3.28	%
Arctiq, Inc.														Irvine, CA
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.67	%			8/8/2023	8/8/2028	High Tech Industries	$	10,918,921		10,754,010		10,918,921	2.94	%
Term Loan	(11)	First Lien	1M SOFR+	6.00	%	2.00	%	9.72	%			11/6/2024	8/8/2028			1,283,750		1,264,755		1,283,750	0.35	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.67	%			8/8/2023	8/8/2028			399,965		396,842		399,965	0.11	%
Green Topco Holdings, LLC Class A Units	(6)	Equity										8/8/2023				271,401		202,628		365,976	0.10	%
Total																	$	12,618,235	$	12,968,612	3.50	%
Atmosphere Aggregator Holdings II, L.P.														Atlanta, GA
Common Units	(6)	Equity										1/26/2016		Services: Business		254,250		-		2,342,141	0.63	%
Stratose Aggregator Holdings, L.P. Common Units	(6)	Equity										6/30/2015				750,000		-		8,848,087	2.38	%
Total																	$	-	$	11,190,228	3.01	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Axis Portable Air, LLC													Phoenix, AZ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		3/22/2022	12/31/2030	Capital Equipment	$	9,310,000		9,230,695		9,310,000	2.51	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		4/17/2023	12/31/2030			1,855,738		1,836,176		1,855,738	0.50	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		3/22/2022	12/31/2030			98,000		97,548		98,000	0.03	%
Axis Air Parent, LLC Preferred Units		Equity									3/22/2022				4,436		443,636		2,882,638	0.78	%
Total																$	11,608,055	$	14,146,376	3.82	%
Baker Manufacturing Company, LLC													Evansville, WI
BSC Blue Water Holdings, LLC Series A Units (SBIC II)	(5)	Equity									7/5/2022		Capital Equipment		743,770		743,770		1,000,036	0.27	%
Total																$	743,770	$	1,000,036	0.27	%
Bart & Associates, LLC													McLean, VA
Term Loan (SBIC)	(4)(10)(12)	First Lien	3M SOFR+	5.00	%	1.00	%	9.09	%		8/16/2024	8/16/2030	High Tech Industries	$	8,830,894		8,702,680		8,830,894	2.38	%
Delayed Draw Term Loan	(10)(12)	First Lien	3M SOFR+	5.00	%	1.00	%	9.09	%		8/16/2024	8/16/2030		$	1,724,720		1,710,769		1,724,720	0.46	%
B&A Partners Holding, LLC Series A Preferred Units		Equity									8/16/2024				722,411		722,411		837,967	0.23	%
Total																$	11,135,860	$	11,393,581	3.07	%
BL Products Parent, L.P.													Houston, TX
Class A Units		Equity									2/1/2022		Capital Equipment		879,060		983,608		1,142,767	0.31	%
Total																$	983,608	$	1,142,767	0.31	%
Café Valley, Inc.													Phoenix, AZ
CF Topco LLC Units		Equity									8/28/2019		Beverage & Food		9,160		916,015		1,736,816	0.47	%
Total																$	916,015	$	1,736,816	0.47	%
Camp Profiles LLC	(9)												Boston, MA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	9.07	%		9/3/2021	9/3/2026	Media: Advertising, Printing & Publishing	$	9,814,375		9,780,539		9,814,375	2.64	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	9.07	%		12/3/2024	9/3/2026			2,227,500		2,213,033		2,227,500	0.60	%
CIVC VI-A 829 Blocker, LLC Units		Equity									9/3/2021				250		250,000		900,363	0.24	%
Total																$	12,243,572	$	12,942,238	3.48	%
Carolinas Buyer, Inc.	(9)												Charlotte, NC
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%		12/20/2024	12/20/2030	Beverage & Food	$	6,779,838		6,676,390		6,610,342	1.78	%
Carolinas Holding, L.P. Class A Units		Equity									12/20/2024				466		465,637		367,446	0.10	%
Total																$	7,142,027	$	6,977,788	1.88	%
CEATI International Inc.	(7)(9)												Montreal, Canada
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.67	%		2/19/2021	12/31/2027	Services: Business	$	8,349,501		8,342,798		8,349,501	2.25	%
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.67	%		12/20/2024	12/31/2027			3,166,966		3,147,329		3,166,966	0.85	%
CEATI Holdings, LP Class A Units		Equity									2/19/2021				250,000		132,919		268,648	0.07	%
Total																$	11,623,046	$	11,785,115	3.17	%
Cerebro Buyer, LLC	(9)												Columbia, SC
Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.72	%		3/15/2023	3/15/2029	Healthcare & Pharmaceuticals	$	4,526,683		4,455,979		4,526,683	1.22	%
Cerebro Holdings Partnership, L.P. Series A Partner Interests		Equity									3/15/2023				62,961		62,961		68,499	0.02	%
Cerebro Holdings Partnership, L.P. Series B Partner Interests	(6)	Equity									3/15/2023				341,091		328,640		371,091	0.10	%
Total																$	4,847,580	$	4,966,273	1.34	%
CF Arch Holdings LLC													Houston, TX
Class A Units	(6)	Equity									8/10/2022		Services: Business		100,000		88,511		150,931	0.04	%
Total																$	88,511	$	150,931	0.04	%
CF512, Inc.	(9)												Blue Bell, PA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.98	%		9/1/2021	9/1/2026	Media: Advertising, Printing & Publishing	$	13,222,035		13,176,452		13,155,926	3.54	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.86	%		9/1/2021	9/1/2026			2,855,259		2,850,147		2,840,983	0.77	%
Revolver	(11)	First Lien	1M SOFR+	6.00	%	1.00	%	9.74	%		9/1/2021	9/1/2026			9,000		9,000		8,955	0.00	%
StellPen Holdings, LLC Membership Interests		Equity									9/1/2021				220,930		220,930		177,046	0.05	%
Total																$	16,256,529	$	16,182,910	4.36	%
Champion Services Acquireco LLC	(9)												Round Rock, TX
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		9/19/2025	9/19/2030	Construction & Building	$	11,970,000		11,740,066		11,730,600	3.16	%
Champion Services Holdings LLC Class A-1 Units		Equity									9/19/2025				268,889		268,889		253,825	0.07	%
Total																$	12,008,955	$	11,984,425	3.23	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Channel Partners Intermediateco, LLC	(9)													Tampa Bay, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.84	%			2/24/2022	2/7/2027	Retail	$	12,982,758		12,947,843		12,982,758	3.49	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.84	%			3/27/2023	2/7/2027			1,655,482		1,649,757		1,655,482	0.45	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.82	%			2/24/2022	2/7/2027			54,070		54,070		54,070	0.01	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.84	%			2/24/2022	2/7/2027			20,276		20,276		20,276	0.01	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.94	%			2/24/2022	2/7/2027			10,138		10,138		10,138	0.00	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.74	%			2/24/2022	2/7/2027			6,759		6,759		6,759	0.00	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	2.00	%	10.86	%			2/24/2022	2/7/2027			27,035		27,035		27,035	0.01	%
Total																	$	14,715,878	$	14,756,518	3.97	%
CompleteCase, LLC														Seattle, WA
CompleteCase Holdings, Inc. Class A Common Stock (SBIC II)	(5)	Equity										12/21/2020		Services: Consumer		417		5		-	0.00	%
CompleteCase Holdings, Inc. Series A Preferred Stock (SBIC II)	(5)	Equity										12/21/2020				522		521,734		151,068	0.04	%
CompleteCase Holdings, Inc. Class A Common Stock		Equity										4/27/2023				89		1		-	0.00	%
CompleteCase Holdings, Inc. Series C Preferred Stock		Equity										4/27/2023				111		111,408		111,409	0.03	%
Total																	$	633,148	$	262,477	0.07	%
Compost 360 Acquisition, LLC	(9)													Tampa, FL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	8.67	%	1.50	%	8/2/2023	8/2/2028	Environmental Industries	$	9,481,462		9,339,450		9,007,390	2.43	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	8.67	%	1.50	%	8/2/2023	8/2/2028			1,043,816		1,033,534		991,625	0.27	%
Revolver	(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.19	%			8/2/2023	8/2/2028			20,000		20,000		19,000	0.01	%
Revolver	(11)	First Lien	3M SOFR+	8.50	%	2.00	%	12.17	%			8/2/2023	8/2/2028			11,368		11,368		10,800	0.00	%
Compost 360 Investments, LLC Class A Units		Equity										8/2/2023				3,124		300,041		92,336	0.02	%
Compost 360 Investments, LLC Preferred Units		Equity										8/29/2025				614		27,630		38,086	0.01	%
Total																	$	10,732,023	$	10,159,237	2.74	%
COPILOT Provider Support Services, LLC	(9)													Maitland, FL
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%			11/22/2022	11/22/2027	Healthcare & Pharmaceuticals	$	4,837,500		4,793,779		4,837,500	1.30	%
QHP Project Captivate Blocker, Inc. Common Stock		Equity										11/22/2022				4		285,714		376,673	0.10	%
Total																	$	5,079,493	$	5,214,173	1.40	%
Craftable Intermediate II Inc.	(9)													Dallas, TX
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.50	%	9.42	%			6/30/2023	6/30/2028	High Tech Industries	$	9,882,041		9,768,247		9,882,041	2.66	%
Revolver	(11)	First Lien	3M SOFR+	5.75	%	1.50	%	9.45	%			6/30/2023	6/30/2028			40,000		40,000		40,000	0.01	%
Gauge Craftable LP Partnership Interests		Equity										6/30/2023				626,690		626,690		1,132,360	0.31	%
Total																	$	10,434,937	$	11,054,401	2.98	%
Curion Holdings, LLC	(9)													Chicago, IL
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%			7/29/2022	12/31/2028	Services: Business	$	12,656,689		12,563,484		12,530,123	3.38	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%			7/29/2022	12/31/2028			40,570		40,570		40,164	0.01	%
SP CS Holdings LLC Class A Units		Equity										7/29/2022				867,173		867,173		756,722	0.20	%
Total																	$	13,471,227	$	13,327,009	3.59	%
DFO Enterprises, LLC	(9)													Rochester, MN
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			9/22/2025	9/22/2030	Capital Equipment	$	11,551,523		11,357,330		11,378,251	3.07	%
DFO Ultimate Holding, LP Class A Units		Equity										9/22/2025				8,931		412,252		538,122	0.14	%
Total																	$	11,769,582	$	11,916,373	3.21	%
DMD Systems Recovery, LLC	(9)													Tempe, AZ
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%			8/22/2025	8/22/2031	High Tech Industries	$	6,100,000		5,997,713		6,008,500	1.62	%
Phoenix Parent LLC Common Units		Equity										8/19/2025				180,000		180,000		169,710	0.05	%
Total																	$	6,177,713	$	6,178,210	1.67	%
DTE Holding Company, LLC														Roselle, IL
Class A-2 Units		Equity										4/13/2018		Energy: Oil & Gas		776,316		466,204		-	0.00	%
Class AA Units		Equity										4/13/2018				723,684		723,684		-	0.00	%
Total																	$	1,189,888	$	-	0.00	%
Elder Care Opco LLC	(9)													Scarsdale, NY
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%			7/31/2025	7/31/2030	Healthcare & Pharmaceuticals	$	7,785,007		7,660,131		7,668,232	2.07	%
Rallyday Elder Care Co-Investors LP Partnership Interests		Equity										7/31/2025				910,966		916,719		1,056,301	0.28	%
Total																	$	8,576,850	$	8,724,533	2.35	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Elliott Aviation, LLC														Moline, IL
Term Loan	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.87	%	1/31/2020	1/21/2026	Aerospace & Defense	$	9,594,927		9,594,927		9,115,182	2.46	%
SP EA Holdings LLC Term Loan		Unsecured		15.00	%	-	%	-	%	15.00	%	10/26/2023	1/31/2026			76,245		76,245		13,724	0.00	%
Term Loan		First Lien		4.31	%	-	%	-	%	4.31	%	4/25/2025	1/21/2026			59,833		59,833		56,841	0.02	%
Revolver A	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.87	%	1/31/2020	1/21/2026			1,585,290		1,585,290		1,585,290	0.43	%
Revolver B	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.87	%	3/1/2023	1/21/2026			746,513		746,513		746,513	0.20	%
Revolver C (Priority)	(11)	First Lien	1M SOFR+	8.00	%	2.00	%	-	%	11.87	%	3/7/2025	1/21/2026			1,019,285		1,019,285		1,019,285	0.27	%
SP EA Holdings LLC Class A Units		Equity										1/31/2020				105,938,486		901,594		-	0.00	%
Total																	$	13,983,687	$	12,536,835	3.38	%
Environmental Remedies, LLC	(9)													Hayward, CA
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			1/15/2025	1/15/2030	Services: Business	$	7,275,781		7,153,358		7,166,644	1.93	%
ERI Parent Holdings, LLC Class A Units		Equity										1/15/2025				163,109		163,109		140,928	0.04	%
Total																	$	7,316,467	$	7,307,572	1.97	%
Equine Network, LLC														Boulder, CO
Term A Loan (SBIC)	(4)(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.33	%			5/22/2023	5/22/2028	Hotel, Gaming, & Leisure	$	6,949,183		6,845,973		6,949,183	1.87	%
Term A Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.33	%			7/28/2025	5/22/2028		$	2,117,063		2,070,832		2,117,063	0.57	%
Revolver	(9)(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.33	%			5/22/2023	5/22/2028			166,667		166,667		166,667	0.04	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	6.50	%	1.00	%	10.33	%			5/22/2023	5/22/2028			98,150		98,150		98,150	0.03	%
Total																	$	9,181,622	$	9,331,063	2.51	%
Eskola LLC	(9)													Morristown, TN
Term Loan	(10)(12)	First Lien	3M SOFR+	7.50	%	1.50	%	11.90	%			12/19/2024	12/19/2029	Construction & Building	$	7,482,765		7,372,876		6,996,385	1.88	%
Delayed Draw Term Loan	(10)(12)	First Lien	3M SOFR+	7.50	%	1.50	%	11.90	%			12/19/2024	12/19/2029			2,770,797		2,753,379		2,590,695	0.70	%
Eskola Holdings, LLC Class A Units	(6)	Equity										12/19/2024				314		893,747		58,588	0.02	%
Eskola Holdings, LLC Class C Units		Equity										6/4/2025				28		56,349		14,041	0.00	%
Total																	$	11,076,351	$	9,659,709	2.60	%
evolv Consulting, LLC	(9)													Dallas, TX
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.49	%			12/7/2023	12/7/2028	Services: Business	$	9,335,314		9,211,059		9,335,314	2.52	%
evolv Holdco, LLC Preferred Units		Equity										12/7/2023				473,485		473,485		498,613	0.13	%
Total																	$	9,684,544	$	9,833,927	2.65	%
Evriholder Acquisition, Inc.														Anaheim, CA
Term Loan (SBIC II)	(5)(9)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.57	%			1/23/2023	1/24/2028	Consumer Goods: Durable	$	12,104,445		11,956,146		12,043,924	3.24	%
KEJ Holdings LP Class A Units		Equity										1/23/2023				873,333		873,333		940,212	0.25	%
Total																	$	12,829,479	$	12,984,136	3.49	%
Exacta Land Surveyors, LLC	(20)													Cleveland, OH
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	9.57	%	1.00	%	2/8/2019	12/31/2027	Services: Business	$	16,308,509		16,308,509		15,656,170	4.22	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	9.57	%	1.00	%	7/15/2022	12/31/2027			992,002		992,002		952,322	0.26	%
SP EA Holdings LLC Term Loan		Unsecured		15.00						15.00	%	4/22/2024	6/30/2026			115,243		115,243		99,685	0.03	%
SP ELS Holdings LLC Class A Units		Equity										2/8/2019				1,338,661		1,124,414		208,826	0.06	%
Total																	$	18,540,168	$	16,917,003	4.57	%
Exigo, LLC	(9)													Dallas, TX
Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.00	%	10.07	%			3/16/2022	3/16/2027	Services: Business	$	8,631,371		8,594,584		8,631,371	2.33	%
Gauge Exigo Coinvest, LLC Common Units		Equity										3/16/2022				377,535		377,535		328,204	0.09	%
Total																	$	8,972,119	$	8,959,575	2.42	%
FairWave Holdings, LLC	(9)													Kansas City, MO
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			4/1/2024	4/1/2029	Beverage & Food	$	7,481,998		7,360,162		7,444,588	2.01	%
Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			12/31/2025	4/1/2029			103,720		101,905		103,201	0.03	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			4/1/2024	4/1/2029			514,030		514,030		511,460	0.14	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			4/1/2024	4/1/2029			2,641,131		2,617,056		2,627,925	0.71	%
GRC Java Holdings, LLC Class A Units		Equity										4/1/2024				2,985		304,909		421,889	0.11	%
Total																	$	10,898,062	$	11,109,063	3.00	%
Fidus Systems Inc.	(9)													Ottawa, Canada
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.50	%	9.17	%			10/17/2025	10/17/2031	High Tech Industries	$	4,759,099		4,677,532		4,677,532	1.26	%
Fidus Investments Holdings, L.P. Common Units		Equity										10/17/2025				268		267,728		267,728	0.07	%
Total																	$	4,945,260	$	4,945,260	1.33	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
FiscalNote Boards LLC	(7)(9)												Toronto, Canada
Term Loan	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.97	%		3/11/2024	3/12/2029	Services: Business	$	3,503,162		3,453,695		3,468,130	0.93	%
FCP-Connect Holdings LLC Class A Common Shares		Equity									5/28/2024				284		-		-	0.00	%
FCP-Connect Holdings LLC Series A Preferred Shares		Equity									5/28/2024				284		190,382		176,211	0.05	%
Total																$	3,644,077	$	3,644,341	0.98	%
General LED OPCO, LLC													San Antonio, TX
Term Loan	(11)	Second Lien	3M SOFR+	9.00	%	1.50	%	12.77	%		5/1/2018	4/30/2027	Services: Business	$	4,500,000		4,496,653		4,410,000	1.19	%
Total																$	4,496,653	$	4,410,000	1.19	%
GS HVAM Intermediate, LLC	(9)												Carlsbad, CA
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.32	%		10/18/2019	11/30/2026	Beverage & Food	$	12,123,673		12,121,297		12,123,673	3.27	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.49	%		10/18/2019	11/30/2026			1,944,444		1,944,444		1,944,444	0.52	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.51	%		10/18/2019	11/30/2026			176,768		176,768		176,768	0.05	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.50	%		10/18/2019	11/30/2026			176,768		176,768		176,768	0.05	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.34	%		10/18/2019	11/30/2026			176,768		176,768		176,768	0.05	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.49	%		10/18/2019	11/30/2026			88,384		88,384		88,384	0.02	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	1.00	%	10.50	%		10/18/2019	11/30/2026			88,384		88,384		88,384	0.02	%
HV GS Acquisition, LP Class A Interests		Equity									10/2/2019				2,144		563,209		4,468,228	1.20	%
Total																$	15,336,022	$	19,243,417	5.18	%
GSF Buyer, LLC	(9)												North Andover, MA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.84	%		4/30/2025	4/30/2031	Beverage & Food	$	4,249,351		4,191,024		4,249,351	1.14	%
GSF Group Holdings, L.P. Class A2 Units		Equity									4/30/2025				241		240,595		233,513	0.06	%
Total																$	4,431,619	$	4,482,864	1.20	%
Guidant Corp.	(9)												Erie, PA
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		3/11/2024	3/12/2029	Energy: Oil & Gas	$	9,853,707		9,608,518		9,853,707	2.65	%
Revolver	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		3/11/2024	3/12/2029			422,283		422,283		422,283	0.11	%
Titan Meter Topco LP Class A Units		Equity									3/11/2024				574,863		581,608		801,170	0.22	%
Total																$	10,612,409	$	11,077,160	2.98	%
Husk AcquireCo Inc.	(7)												Vaughan, Canada
Term Loan	(11)	First Lien	6M SOFR+	5.75	%	1.50	%	9.51	%		11/14/2024	11/15/2029	Beverage & Food	$	5,264,053		5,199,682		5,185,092	1.40	%
SK Spectra Holdings LP Class A Units		Equity									11/15/2024				298		297,765		226,274	0.06	%
Total																$	5,497,447	$	5,411,366	1.46	%
HV Watterson Holdings, LLC	(9)												Schaumburg, IL
Term Loan		First Lien		12.00	%	-	%	12.00	%		12/17/2021	12/17/2026	Services: Business	$	13,568,717		13,508,378		9,023,198	2.43	%
Revolver		First Lien		12.00	%	-	%	12.00	%		12/17/2021	12/17/2026			99,975		99,975		66,483	0.02	%
Delayed Draw Term Loan		First Lien		12.00	%	-	%	12.00	%		12/17/2021	12/17/2026			329,632		328,777		219,205	0.06	%
HV Watterson Parent, LLC Class A Units		Equity									12/17/2021				1,632		1,631,591		-	0.00	%
Total																$	15,568,721	$	9,308,886	2.51	%
I2P Holdings, LLC													Cleveland, OH
Series A Preferred Units		Equity									1/31/2018		Services: Business		750,000		-		1,587,652	0.43	%
Total																$	-	$	1,587,652	0.43	%
Identity Theft Guard Solutions, Inc.	(9)												Portland, OR
Term Loan	(11)	First Lien	1M SOFR+	5.50	%	1.50	%	9.22	%		2/28/2025	2/28/2030	Services: Business	$	8,657,465		8,507,362		8,614,178	2.32	%
IDX Parent, LLC Class A-2 Units		Equity									2/28/2025				352,915		352,915		588,521	0.16	%
Total																$	8,860,277	$	9,202,699	2.48	%
Impact Home Services LLC													Tampa, FL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		4/28/2023	4/28/2028	Services: Consumer	$	5,805,097		5,726,630		5,688,995	1.53	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		10/11/2023	4/28/2028			529,089		521,434		518,507	0.14	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		6/30/2023	4/28/2028			263,868		260,204		258,591	0.07	%
Revolver	(11)(17)	First Lien	3M SOFR+	6.50	%	2.00	%	10.17	%		4/28/2023	4/28/2028			82,500		82,500		80,850	0.02	%
Impact Holdings Georgia LLC Class A Units		Equity									4/28/2023				375		375,156		-	0.00	%
Impact Holdings Georgia LLC Class A-1 Units		Equity									1/31/2024				38		37,962		35,526	0.01	%
Total																$	7,003,886	$	6,582,469	1.77	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Infolinks Media Buyco, LLC														Ridgewood, NJ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			11/1/2021	11/1/2026	Media: Advertising, Printing & Publishing	$	7,168,033		7,138,013		7,132,193	1.92	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			6/6/2024	11/1/2026			2,440,641		2,425,985		2,428,438	0.65	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			11/1/2021	11/1/2026			1,447,875		1,443,421		1,440,636	0.39	%
Tower Arch Infolinks Media, LP LP Interests	(6)(15)	Equity										10/28/2021				460,943		207,385		475,679	0.13	%
Total																	$	11,214,804	$	11,476,946	3.09	%
Informativ, LLC	(9)													Fresno, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.57	%			7/30/2021	7/30/2027	High Tech Industries	$	8,308,013		8,285,463		8,308,013	2.24	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.57	%			3/31/2022	7/30/2027			6,263,548		6,244,249		6,263,548	1.69	%
Credit Connection Holdings, LLC Series A Units	(6)	Equity										7/30/2021				804,384		300,783		1,371,768	0.37	%
Total																	$	14,830,495	$	15,943,329	4.30	%
Inoapps Bidco, LLC														Houston, TX
Term Loan B	(11)	First Lien	3M SONIA+	5.75	%	1.00	%	9.88	%			2/15/2022	2/15/2027	High Tech Industries	£	9,650,000	$	13,015,616	$	12,903,217	3.48	%
Revolver	(11)	First Lien	1M SOFR+	5.75	%	1.00	%	9.58	%			2/15/2022	2/15/2027			80,000		80,000		80,000	0.02	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.85	%			2/15/2022	2/15/2027			80,625		80,388		80,625	0.02	%
Inoapps Holdings, LLC Series A-1 Preferred Units		Equity										2/15/2022				739,844		783,756		1,088,044	0.29	%
Total																	$	13,959,760	$	14,151,886	3.81	%
iNovex Information Systems Incorporated	(9)													Columbia, MD
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.92	%			12/17/2024	12/17/2030	Services: Business	$	7,446,962		7,349,332		7,372,492	1.99	%
Revolver	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.98	%			12/17/2024	12/17/2030			72,000		72,000		71,280	0.02	%
Revolver	(11)	First Lien	PRIME+	4.25	%	1.00	%	11.00	%			12/17/2024	12/17/2030			5,000		5,000		4,950	0.00	%
Total																	$	7,426,332	$	7,448,722	2.01	%
International Cybernetics Acquisition, LLC	(9)													Largo, FL
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			6/3/2025	6/3/2030	Services: Business	$	4,724,263		4,649,089		4,677,020	1.26	%
International Cybernetics Holdings, LP Class B Units		Equity										6/2/2025				1,051		105,113		93,640	0.03	%
Total																	$	4,754,202	$	4,770,660	1.29	%
Invincible Boat Company LLC														Opa Locka, FL
Term Loan	(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.37	%	8/28/2019	3/31/2028	Consumer Goods: Durable	$	5,351,146		5,351,146		4,682,253	1.26	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.37	%	8/28/2019	3/31/2028			4,939,520		4,939,520		4,322,080	1.16	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	7.50	%	1.50	%	8.00	%	3.37	%	6/1/2021	3/31/2028			1,099,108		1,099,108		961,720	0.26	%
Revolver	(9)(11)	First Lien	1M SOFR+	7.50	%	1.50	%	11.37	%			8/28/2019	3/31/2028			1,489,362		1,489,362		1,303,192	0.35	%
Warbird Parent Holdco, LLC Class A Units		Equity										8/28/2019				1,362,575		1,299,691		-	0.00	%
Total																	$	14,178,827	$	11,269,245	3.03	%
Ledge Lounger, Inc.														Katy, TX
Term Loan A (SBIC)	(4)(11)	First Lien	3M SOFR+	7.50	%	1.00	%	0.00	%	11.55	%	11/9/2021	11/9/2027	Consumer Goods: Durable	$	7,893,466		7,862,441		7,064,652	1.90	%
Revolver	(11)	First Lien	3M SOFR+	7.50	%	1.00	%	0.00	%	11.55	%	11/9/2021	11/9/2027			88,989		88,989		79,645	0.02	%
SP L2 Holdings LLC Class A Units		Equity										11/3/2025				398,972		-		-	0.00	%
SP L2 Holdings LLC Class A Units (SBIC)	(4)	Equity										11/9/2021				50,596,837		389,832		-	0.00	%
SP L2 Holdings LLC Class C Units (SBIC)	(4)	Equity										10/9/2024				140,834		34,504		-	0.00	%
Total																	$	8,375,766	$	7,144,297	1.92	%
Lightning Intermediate II, LLC	(9)													Jacksonville, FL
Term Loan (SBIC)	(4)(11)	First Lien	6M SOFR+	6.00	%	1.00	%	9.60	%			6/6/2022	6/5/2028	Consumer Goods: Non-Durable	$	11,214,012		11,137,405		11,214,012	3.02	%
Gauge Vimergy Coinvest, LLC Units		Equity										6/6/2022				399		391,274		339,006	0.09	%
Total																	$	11,528,679	$	11,553,018	3.11	%
Luxium Solutions, LLC														Deerfield Beach, OH
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.92	%			5/10/2024	12/1/2027	High Tech Industries	$	8,169,324		8,095,857		8,169,324	2.20	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.92	%			5/10/2024	12/1/2027			1,182,247		1,176,738		1,182,247	0.32	%
Total																	$	9,272,595	$	9,351,571	2.52	%
MacKenzie-Childs Acquisition, Inc.	(9)													Aurora, NY
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.32	%			9/2/2022	9/2/2027	Consumer Goods: Durable	$	86,331		85,813		86,331	0.02	%
MacKenzie-Childs Investment, LP Partnership Interests		Equity										9/2/2022				100,000		100,000		171,068	0.05	%
Total																	$	185,813	$	257,399	0.07	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Madison Logic Holdings, Inc.	(9)													New York, NY
Term Loan	(11)	First Lien	1M SOFR+	7.00	%	1.00	%	10.72	%			12/30/2022	12/30/2028	Media: Advertising, Printing & Publishing	$	3,627,720		3,577,518		3,319,364	0.89	%
Term Loan	(11)	First Lien	1M SOFR+	7.50	%	1.00	%	-	%	11.22	%	12/30/2022	12/30/2028			906,930		894,380		829,841	0.22	%
BC Partners Glengarry Co-Investment LP Class 1 Interests		Equity										7/7/2023				404,964		404,964		45,355	0.01	%
Total																	$	4,876,862	$	4,194,560	1.12	%
MBH Management LLC	(9)													Washington, DC
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.00	%	1.50	%	8.72	%			11/15/2024	11/15/2029	Healthcare & Pharmaceuticals	$	9,381,975		9,229,172		9,335,066	2.51	%
MBH Parent, LLC Common Units		Equity										11/15/2024				646,944		646,944		986,162	0.27	%
Total																	$	9,876,116	$	10,321,228	2.78	%
MedLearning Group, LLC														New York, NY
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			3/26/2024	12/30/2027	Healthcare & Pharmaceuticals	$	4,263,337		4,212,827		4,220,704	1.14	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			3/26/2024	12/30/2027			2,498,733		2,469,128		2,473,746	0.67	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			3/26/2024	12/30/2027			2,040,545		2,016,437		2,020,140	0.54	%
Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			8/5/2025	12/30/2027			995,000		982,379		985,050	0.27	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	1.00	%	9.42	%			3/26/2024	12/30/2027			2,430,523		2,410,657		2,406,218	0.65	%
Total																	$	12,091,428	$	12,105,858	3.27	%
Michelli, LLC	(9)													New Orleans, LA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.75	%	2.00	%	9.42	%			12/21/2023	12/21/2028	Capital Equipment	$	4,900,000		4,834,556		4,900,000	1.32	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.75	%	2.00	%	9.42	%			12/21/2023	12/21/2028			3,837,617		3,809,613		3,837,617	1.03	%
SP MWM Holdco LLC Class A Units		Equity										12/21/2023				509,215		509,215		560,167	0.15	%
Total																	$	9,153,384	$	9,297,784	2.50	%
Microbe Formulas LLC	(9)													Meridian, ID
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.32	%			4/4/2022	4/3/2028	Consumer Goods: Non-Durable	$	5,305,649		5,282,425		5,305,649	1.43	%
Term Loan (SBIC II)	(5)(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.32	%			11/20/2024	4/3/2028			4,211,768		4,196,582		4,211,768	1.13	%
Total																	$	9,479,007	$	9,517,417	2.56	%
Mobotrex Acquisition, LLC	(9)													Davenport, IA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%			2/28/2025	6/6/2031	Wholesale	$	5,143,936		5,079,288		5,092,497	1.37	%
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%			2/28/2025	6/6/2031			3,587,553		3,542,465		3,551,677	0.96	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%			2/28/2025	6/6/2031			14,481		14,481		14,336	0.00	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.69	%			2/28/2025	6/6/2031			8,689		8,689		8,602	0.00	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%			11/6/2025	6/6/2031			256,807		255,226		254,239	0.07	%
Total																	$	8,900,149	$	8,921,351	2.40	%
MOM Enterprises, LLC	(9)													Richmond, CA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.48	%	2.00	%	10.15	%			5/19/2021	5/19/2028	Consumer Goods: Non-Durable	$	15,076,148		15,046,351		15,000,768	4.04	%
MBliss SPC Holdings, LLC Units		Equity										5/19/2021				933,333		933,333		850,956	0.23	%
Total																	$	15,979,684	$	15,851,724	4.27	%
Monarch Behavioral Therapy, LLC	(9)													Addison, TX
Term Loan (SBIC)	(4)(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.72	%			6/6/2024	6/6/2030	Healthcare & Pharmaceuticals	$	6,663,165		6,556,702		6,629,849	1.79	%
Revolver	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.72	%			6/6/2024	6/6/2030			289,087		289,087		287,642	0.08	%
Revolver	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.72	%			6/6/2024	6/6/2030			216,815		216,815		215,731	0.06	%
Revolver	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.73	%			6/6/2024	6/6/2030			72,272		72,272		71,911	0.02	%
Revolver	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.73	%			6/6/2024	6/6/2030			36,136		36,136		35,955	0.01	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	5.00	%	1.00	%	8.72	%			6/6/2024	6/6/2030			903,847		895,984		899,328	0.24	%
BI Investors, LLC Class A Units		Equity										6/6/2024				4,286		424,738		525,713	0.14	%
Total																	$	8,491,734	$	8,666,129	2.34	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Monitorus Holding, LLC	(7)													London, UK
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.18	%			5/24/2022	5/24/2027	Media: Diversified & Production	$	105,248		104,923		103,669	0.03	%
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.18	%			6/27/2025	5/24/2027		€	1,462,650		1,673,913		1,691,278	0.46	%
Revolver	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.18	%			5/24/2022	5/24/2027		€	106,498		115,781		114,044	0.03	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.18	%			5/24/2022	5/24/2027		€	105,248		106,228		104,635	0.03	%
Sapphire Aggregator S.a r.l. Convertible Bonds	(14)	Unsecured		8.00	%	-	%	-	%	8.00	%	1/31/2025	3/31/2026		€	8,977		9,454		10,380	0.00	%
Sapphire Aggregator S.a r.l. Class A Shares		Equity										9/1/2022				557,689		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class B Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class C Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class D Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class E Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class F Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class G Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class H Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class I Shares		Equity										9/1/2022				557,682		11,156		5,431	0.00	%
Sapphire Aggregator S.a r.l. Class 3 Ordinary Shares		Equity										3/31/2025				6,458,506		37,512		68,931	0.02	%
Total																	$	2,148,215	$	2,141,816	0.57	%
Morgan Electrical Group Intermediate Holdings, Inc.	(9)													Freemont, CA
Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.50	%	9.97	%			8/3/2023	8/3/2029	Construction & Building	$	4,065,515		4,002,647		4,024,860	1.08	%
Delayed Draw Term Loan	(11)	First Lien	1M SOFR+	6.25	%	1.50	%	9.97	%			8/3/2023	8/3/2029			1,607,266		1,594,242		1,591,193	0.43	%
Morgan Electrical Group Holdings, LLC Series A-2 Preferred Units		Equity										8/3/2023				380		380,330		246,772	0.07	%
Total																	$	5,977,219	$	5,862,825	1.58	%
Naumann/Hobbs Material Handling Corporation II, Inc.														Phoenix, AZ
Term Loan	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			8/30/2019	12/31/2026	Services: Business	$	8,054,946		8,054,946		7,934,122	2.14	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			8/30/2019	12/31/2026			5,079,479		5,079,479		5,003,287	1.35	%
Revolver	(11)	First Lien	3M SOFR+	6.75	%	1.50	%	10.42	%			8/30/2019	12/31/2026			1,789,578		1,789,578		1,762,734	0.47	%
Naumann Hobbs Holdings, L.P. Class A-1 Units		Equity										9/29/2022				123		220,379		-	0.00	%
Naumann Hobbs Holdings, L.P. Class A-2 Units		Equity										9/29/2022				123		220,379		-	0.00	%
Naumann Hobbs Holdings, L.P. Class B Units		Equity										12/27/2024				142		142,200		546,782	0.15	%
Naumann Hobbs Holdings, L.P. Class W-1 Units		Equity										5/27/2025				57		-		-	0.00	%
Naumann Hobbs Holdings, L.P. Class W-2 Units		Equity										5/27/2025				49		-		217,884	0.06	%
Total																	$	15,506,961	$	15,464,809	4.17	%
NINJIO, LLC	(9)													Westlake Village, CA
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.67	%			10/12/2022	10/12/2027	Media: Diversified & Production	$	4,962,500		4,920,208		4,962,500	1.34	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.67	%			10/12/2022	10/12/2027			100,000		99,453		100,000	0.03	%
NINJIO Holdings, LLC Units		Equity										10/12/2022				184		313,253		340,673	0.09	%
Gauge NINJIO Blocker LLC Preferred Units		Equity										9/22/2023				14		14,470		21,705	0.01	%
Total																	$	5,347,384	$	5,424,878	1.47	%
Norplex Micarta Acquisition, Inc.	(9)													Postville, IA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.25	%	1.50	%	9.09	%			10/31/2024	10/31/2029	Chemicals, Plastics, & Rubber	$	12,870,000		12,661,385		12,805,651	3.45	%
Revolver	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			10/31/2024	10/31/2029		$	50,000		50,000		49,750	0.01	%
Norplex Micarta Parent, LP Preferred Units		Equity										10/31/2024				739,804		739,804		690,496	0.19	%
Total																	$	13,451,189	$	13,545,897	3.65	%
NS412, LLC														Dallas, TX
Term Loan	(11)	Second Lien	3M SOFR+	8.25	%	1.00	%	12.02	%			5/6/2019	5/6/2027	Services: Consumer	$	7,615,000		7,615,000		7,615,000	2.05	%
NS Group Holding Company, LLC Class A Units		Equity										5/6/2019				782		795,002		1,036,196	0.28	%
Total																	$	8,410,002	$	8,651,196	2.33	%
Onpoint Industrial Services, LLC														Deer Park, TX
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.75	%	1.75	%	9.42	%			11/16/2022	11/16/2027	Services: Business	$	12,256,846		12,145,661		12,256,846	3.30	%
Spearhead TopCo, LLC Class A Units		Equity										11/16/2022				606,742		606,742		1,078,794	0.29	%
Total																	$	12,752,403	$	13,335,640	3.59	%
Pacific Shoring Holdings, LLC	(9)													Santa Rosa, CA
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%			1/10/2025	1/10/2030	Capital Equipment	$	8,436,250		8,312,084		8,351,888	2.25	%
PSP Ultimate Holding, LP Class A Units		Equity										1/10/2025				10,606		498,491		610,672	0.16	%
Total																	$	8,810,575	$	8,962,560	2.41	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


															Principal						% of
												Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK		Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
PCP MT Aggregator Holdings, L.P.	(7)													Oak Brook, IL
Common Units	(6)	Equity										3/29/2019		Finance		825,020		-		6,187,401	1.67	%
Total																	$	-	$	6,187,401	1.67	%
PCS Software, Inc.	(9)													Shenandoah, TX
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.32	%	0.50	%	7/1/2019	6/30/2027	Transportation & Logistics	$	13,816,136		13,816,136		13,747,056	3.70	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.32	%	0.50	%	7/1/2019	6/30/2027			1,811,952		1,811,952		1,802,892	0.49	%
Revolver	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.32	%	0.50	%	7/1/2019	6/30/2027			440		431		438	0.00	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.50	%	9.32	%	0.50	%	7/1/2019	6/30/2027			955,424		955,424		950,647	0.26	%
PCS Software Parent, LLC Class A Common Units		Equity										9/16/2022				471,211		9,995		289,993	0.08	%
Total																	$	16,593,938	$	16,791,026	4.53	%
Pearl Media Holdings, LLC	(24)													Montclair, NJ
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%			8/31/2022	8/31/2027	Media: Advertising, Printing & Publishing	$	8,620,067		8,553,265		8,447,666	2.28	%
Total																	$	8,553,265	$	8,447,666	2.28	%
Peltram Group Holdings LLC														Auburn, WA
Class A Units	(6)	Equity										12/30/2021		Construction & Building		508,516		451,142		799,295	0.22	%
Total																	$	451,142	$	799,295	0.22	%
Pilot Power Group Acquisition, Inc.														San Diego, CA
Term Loan (SBIC II)	(5)(10)(12)	First Lien	3M SOFR+	5.25	%	1.50	%	9.95	%			12/18/2025	12/18/2030	Services: Business	$	12,000,000		11,790,000		11,790,000	3.18	%
BCM Pilot Opportunity Parent, LLC Class A Common Interests	(28)	Equity										12/18/2025				4,423		366,868		366,868	0.10	%
Total																	$	12,156,868	$	12,156,868	3.28	%
Plus Delta Buyer LLC	(9)													Carlsbad, CA
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.50	%	8.92	%			1/16/2025	1/16/2031	Services: Business	$	7,344,500		7,214,782		7,271,055	1.96	%
Plus Delta Parent LLC Class A Units		Equity										1/16/2025				325,765		325,764		340,885	0.09	%
Total																	$	7,540,546	$	7,611,940	2.05	%
Premiere Digital Services, Inc.	(9)													Los Angeles, CA
Term Loan	(11)	First Lien	1M SOFR+	5.25	%	1.00	%	8.97	%			11/3/2021	11/3/2026	Media: Broadcasting & Subscription	$	12,070,359		12,057,869		12,070,359	3.25	%
Premiere Digital Holdings, Inc. Common Stock		Equity										10/18/2018				5,000		-		3,126,233	0.84	%
Total																	$	12,057,869	$	15,196,592	4.09	%
Pure Upper Holdco LLC	(9)													Newtown Square, PA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	4.75	%	1.00	%	8.42	%			12/3/2025	12/3/2031	Healthcare & Pharmaceuticals	$	10,000,000		9,901,043		9,901,043	2.67	%
Xanitos Topco, LLC Class A Units		Equity										12/3/2025				246,667		246,667		246,667	0.07	%
Total																	$	10,147,710	$	10,147,710	2.74	%
Recharged Opco, LLC														Bradenton, FL
Term Loan	(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028	Services: Consumer	$	5,324,759		5,283,494		2,901,994	0.78
Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028			83,115		83,115		45,298	0.01
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	7/2/2024	2/7/2028			20,223		20,223		40,446	0.01
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	9/13/2024	2/7/2028			20,000		20,000		40,000	0.01
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	11/12/2024	2/7/2028			45,000		45,000		90,000	0.02
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	1/3/2025	2/7/2028			10,000		10,000		20,000	0.01
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	2/7/2025	2/7/2028			31,000		31,000		62,000	0.02
Priority Revolver	(18)(26)	First Lien		12.50	%			-	%	-	%	10/22/2025	2/7/2028			120,000		120,000		240,000	0.06
Priority Revolver	(9)(18)(26)	First Lien		12.50	%			-	%	-	%	12/15/2025	2/7/2028			32,500		32,500		65,000	0.02
Delayed Draw Term Loan	(26)	First Lien		12.50	%			-	%	-	%	2/7/2022	2/7/2028			98,473		98,030		53,668	0.01
Recharged Holdings, LLC Common Units		Equity										11/13/2025				61,182		-		-	0.00
Total																	$	5,743,362	$	3,558,406	0.95
Red's All Natural, LLC														Franklin, TN
Term Loan (SBIC II)	(5)(10)(12)	First Lien	3M SOFR+	4.50	%	1.50	%	9.13	%			1/31/2023	1/31/2029	Beverage & Food	$	8,815,327		8,708,727		8,815,327	2.37	%
Centeotl Co-Invest B, LP Common Units		Equity										1/31/2023				710,600		710,600		352,910	0.10	%
Total																	$	9,419,327	$	9,168,237	2.47	%
RIA Advisory Borrower, LLC	(9)													Coral Gables, FL
Term Loan	(11)	First Lien	3M SOFR+	5.50	%	2.00	%	9.50	%			5/1/2023	8/2/2027	High Tech Industries	$	5,835,000		5,782,654		5,835,000	1.57	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	2.00	%	9.50	%			5/1/2023	8/2/2027			73,915		73,915		73,915	0.02	%
RIA Advisory Aggregator, LLC Class A Units		Equity										5/1/2023				104,425		165,078		277,592	0.07	%
RIA Products Aggregator, LLC Class A Units		Equity										5/1/2023				81,251		78,390		39,195	0.01	%
Total																	$	6,100,037	$	6,225,702	1.67	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
Said Intermediate, LLC	(9)												Boston, MA
Term Loan	(11)	First Lien	1M SOFR+	5.50	%	1.00	%	9.22	%		6/13/2024	6/13/2029	Media: Advertising, Printing & Publishing	$	7,368,312		7,258,150		7,294,629	1.97	%
FCP-Said Holdings, LLC Class A Common Shares		Equity									6/13/2024				804		-		-	0.00	%
FCP-Said Holdings, LLC Series A Preferred Shares		Equity									6/13/2024				852		350,649		323,546	0.09	%
Total																$	7,608,799	$	7,618,175	2.06	%
Sales Benchmark Index, LLC													Dallas, TX
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.87	%		1/7/2020	7/7/2026	Services: Business	$	12,004,716		12,004,716		12,004,716	3.23	%
Revolver	(9)(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.87	%		1/7/2020	7/7/2026			443,820		443,820		443,820	0.12	%
SBI Holdings Investments LLC Class A Units		Equity									1/7/2020				66,573		665,730		458,148	0.12	%
Total																$	13,114,266	$	12,906,684	3.47	%
Solid Surface Holdco, LLC	(9)												Charlotte, NC
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.67	%		6/6/2025	6/6/2030	Services: Business	$	5,665,801		5,562,303		5,637,472	1.52	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.69	%		6/6/2025	6/6/2030			2,220,766		2,198,813		2,209,662	0.60	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.67	%		6/6/2025	6/6/2030			1,736,753		1,719,585		1,728,069	0.47	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.00	%	2.00	%	9.70	%		6/6/2025	6/6/2030			313,185		310,089		311,619	0.08	%
Carolina Topco Holdings, LP Class A-1 Units		Equity									6/6/2025				4,935		493,470		866,935	0.23	%
Total																$	10,284,260	$	10,753,757	2.90	%
Strategus, LLC	(9)												Englewood, CO
Term Loan	(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		1/27/2025	1/27/2031	Media: Advertising, Printing & Publishing	$	7,762,432		7,642,498		7,645,996	2.06	%
CIVC Strategus Blocker, LLC Class A Units		Equity									1/27/2025				170		170,362		203,173	0.05	%
Total																$	7,812,860	$	7,849,169	2.11	%
TAC LifePort Holdings, LLC													Woodland, WA
Common Units	(6)	Equity									3/1/2021		Aerospace & Defense		546,543		189,094		1,543,947	0.42	%
Total																$	189,094	$	1,543,947	0.42	%
Teckrez, LLC													Jacksonville, FL
Term Loan	(11)	First Lien	1M SOFR+	6.75	%	2.00	%	10.57	%		5/24/2024	11/30/2028	Chemicals, Plastics, & Rubber	$	4,240,129		4,194,947		4,218,928	1.14	%
Revolver	(11)	First Lien	1M SOFR+	6.75	%	2.00	%	10.57	%		5/24/2024	11/30/2028			885,936		885,936		881,506	0.24	%
Revolver		First Lien	1M SOFR+	6.75	%	2.00	%	10.57	%		5/24/2024	11/30/2028			144,222		144,222		143,501	0.04	%
HH-Teckrez Parent, LP Preferred Units		Equity									5/24/2024				90,139		90,139		162,373	0.04	%
Total																$	5,315,244	$	5,406,308	1.46	%
The Hardenbergh Group, Inc.	(9)												Livonia, MI
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.27	%		8/7/2023	8/7/2028	Healthcare & Pharmaceuticals	$	10,265,605		10,110,799		10,265,605	2.77	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.27	%		9/30/2024	8/7/2028			793,981		782,369		793,981	0.21	%
Term Loan	(11)	First Lien	3M SOFR+	6.50	%	2.00	%	10.27	%		10/1/2025	8/7/2028			498,750		489,484		498,750	0.13	%
BV HGI Holdings, L.P. Class A Units		Equity									8/7/2023				677,548		677,548		697,242	0.19	%
Total																$	12,060,200	$	12,255,578	3.30	%
The Millennium Alliance LLC	(9)												New York, NY
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	5.00	%	1.00	%	8.67	%		7/31/2025	7/31/2031	Services: Business	$	11,471,250		11,306,226		11,356,539	3.06	%
BV MA Blocker, Inc. Class A-2 Common Stock		Equity									7/31/2025				52		515,556		656,334	0.18	%
Total																$	11,821,782	$	12,012,873	3.24	%
Tiger 21, LLC	(9)												New York, NY
Term Loan	(11)	First Lien	3M SOFR+	4.50	%	1.00	%	8.17	%		12/30/2024	12/30/2030	Services: Consumer	$	11,880,000		11,673,028		11,880,000	3.20	%
Tiger 21 Blocker, Inc. Class A-3 Common Stock		Equity									12/30/2024				565		564,635		770,506	0.21	%
Total																$	12,237,663	$	12,650,506	3.41	%
Tilley Distribution, Inc.	(9)												Baltimore, MD
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.82	%		4/1/2022	12/31/2026	Chemicals, Plastics, & Rubber	$	82,617		82,299		79,725	0.02	%
Term Loan	(11)	First Lien	3M SOFR+	6.00	%	1.00	%	9.82	%		4/1/2022	12/31/2026			9,016		8,981		8,700	0.00	%
Revolver		First Lien	3M SOFR+	6.00	%	1.00	%	9.82	%		4/1/2022	12/31/2026		$	13,043		13,043		12,586	0.00	%
Total																$	104,323	$	101,011	0.02	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


														Principal						% of
											Investment		Headquarters/	Amount/		Amortized		Fair		Net
Investments	Footnotes	Security⁽²⁾	Coupon			Floor		Cash		PIK	Date	Maturity	Industry	Shares⁽³⁾		Cost		Value⁽¹⁾		Assets
TradePending OpCo Aggregator, LLC	(9)												Carrboro, NC
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%		3/2/2021	3/2/2026	High Tech Industries	$	9,428,788		9,417,687		9,428,788	2.54	%
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%		8/4/2023	3/2/2026			2,411,396		2,406,156		2,411,396	0.65	%
Revolver	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%		3/2/2021	3/2/2026			33,333		33,333		33,333	0.01	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	6.25	%	2.00	%	10.07	%		8/4/2023	3/2/2026			673,267		672,497		673,267	0.18	%
TradePending Holdings, LLC Series A Units	(4)	Equity									3/2/2021				908,333		947,699		1,812,352	0.49	%
TradePending Holdings, LLC Series A-1 Units		Equity									8/4/2023				132,783		260,254		365,808	0.10	%
Total																$	13,737,626	$	14,724,944	3.97	%
TriplePoint Acquisition Holdings LLC	(9)												Columbus, OH
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.92	%		5/31/2024	5/31/2029	Construction & Building	$	5,276,143		5,197,842		5,276,143	1.42	%
Term Loan	(11)	First Lien	3M SOFR+	5.25	%	1.00	%	8.92	%		4/8/2025	5/31/2029			1,760,506		1,730,596		1,760,506	0.47	%
TriplePoint Holdco LLC Class A Units	(6)	Equity									5/31/2024				557,968		508,733		1,876,311	0.51	%
Total																$	7,437,171	$	8,912,960	2.40	%
Unicat Catalyst Holdings, LLC													Alvin, TX
Unicat Catalyst, LLC Class A Units		Equity									4/27/2021		Chemicals, Plastics, & Rubber		7,500		750,000		639,521	0.17	%
Unicat Catalyst, LLC Class A-1 Units		Equity									12/13/2023				974		58,446		59,014	0.02	%
Total																$	808,446	$	698,535	0.19	%
U.S. Expediters, LLC	(9)												Stafford, TX
Term Loan	(11)	First Lien	3M SOFR+	6.25	%	1.00	%	10.12	%		12/22/2021	12/22/2026	Healthcare & Pharmaceuticals	$	14,311,049		14,244,794		13,523,942	3.64	%
Cathay Hypnos LLC Units		Equity									12/22/2021				1,737,087		1,353,155		200,084	0.05	%
Total																$	15,597,949	$	13,724,026	3.69	%
USDTL AcquisitionCo, Inc.	(9)												Des Plaines, IL
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.67	%		12/9/2024	12/9/2030	Healthcare & Pharmaceuticals	$	5,940,000		5,837,398		5,880,600	1.58	%
Revolver	(11)	First Lien	3M SOFR+	5.00	%	1.50	%	8.70	%		12/9/2024	12/9/2030			20,000		20,000		19,800	0.01	%
USDTL Holdings, LLC Preferred Units		Equity									12/9/2024				110		110,000		156,484	0.04	%
Total																$	5,967,398	$	6,056,884	1.63	%
Valor Buyco, LLC	(9)												Leesburg, VA
Term Loan (SBIC II)	(5)(11)	First Lien	3M SOFR+	4.75	%	1.00	%	8.44	%		12/23/2025	12/23/2031	Services: Business	$	6,000,000		5,940,000		5,940,000	1.60	%
Valor Holdco LLC Voting Common Units		Equity									12/23/2025				4,306		430,556		430,556	0.12	%
Total																$	6,370,556	$	6,370,556	1.72	%
Venbrook Buyer, LLC													Los Angeles, CA
Term Loan B (SBIC)	(4)(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026	Services: Business	$	15,567,454		15,554,413		10,352,358	2.79	%
Term Loan B	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			177,127		176,979		117,789	0.03	%
Term Loan (SBIC)	(4)(25)	First Lien		13.50	%			-	%		12/31/2025	5/27/2026			942,301		942,301		626,630	0.17	%
Term Loan	(25)	First Lien		13.50	%			-	%		12/5/2025	5/27/2026			471,156		471,156		313,319	0.08	%
Revolver	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			2,750,080		2,750,080		1,828,803	0.49	%
Delayed Draw Term Loan	(25)	First Lien		13.50	%			-	%		3/13/2020	5/27/2026			5,308,287		5,305,704		3,530,011	0.95	%
Venbrook Holdings, LLC Convertible Term Loan	(14)(25)	Unsecured		10.00	%	-	%	-	%		3/31/2022	12/20/2028			117,483		117,483		-	0.00	%
Venbrook Holdings, LLC Common Units		Equity									3/13/2020				822,758		819,262		-	0.00	%
Total																$	26,137,378	$	16,768,910	4.51	%
WER Holdings, LLC	(9)												Sugar Hill, GA
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%		4/11/2024	4/11/2030	Services: Business	$	2,663,602		2,622,140		2,650,284	0.71	%
Term Loan (SBIC)	(4)(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%		5/30/2025	4/11/2030			424,750		418,979		422,626	0.11	%
Revolver	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%		4/11/2024	4/11/2030			461,483		461,483		459,176	0.12	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%		4/11/2024	4/11/2030			1,326,339		1,314,855		1,319,707	0.36	%
Delayed Draw Term Loan	(11)	First Lien	3M SOFR+	5.50	%	1.00	%	9.17	%		5/30/2025	4/11/2030			884,786		878,440		880,362	0.24	%
Blade Landscape Investments, LLC Class A Units		Equity									4/11/2024				1,803		180,300		245,968	0.07	%
Total																$	5,876,197	$	5,978,123	1.61	%
Whisps Holdings LP													Elgin, IL
Class A Units		Equity									4/18/2019		Beverage & Food		500,000		500,000		-	0.00	%
Class A-1 Units		Equity									3/6/2023				280,939		182,610		-	0.00	%
Total																$	682,610	$	-	0.00	%
Total Non-control, non-affiliated investments																$	987,729,505	$	988,919,589	266.42	%
Total Investments																$	1,026,139,686	$	1,007,623,395	271.47	%
LIABILITIES IN EXCESS OF OTHER ASSETS																		$	(636,444,439)	(171.47)	%
NET ASSETS																		$	371,178,956	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025

(1)

See Note 1 to the consolidated financial statements contained herein for a discussion of the methodologies used to value securities in the portfolio.

(2)

Debt investments are income producing and equity securities are non-income producing, unless otherwise noted.

(3)

Par amount is presented for debt investments, while the number of shares or units owned is presented for equity investments. Par amount is denominated in U.S. Dollars (“$”) unless otherwise noted, Euro (“€”), or Great British Pound (“£”).

(4)

Investments held by the SBIC I subsidiary (as defined in Note 1 to the consolidated financial statements contained herein), which include $24,017,231 of cash and $217,069,206 of investments (at cost), are excluded from the obligations to the lenders of the Credit Facility (as defined in Note 9). Stellus Capital Investment Corporation’s (the “Company”) obligations to the lenders of the Credit Facility are secured by a first priority security interest in all investments and cash and cash equivalents, except for cash and investments held by the SBIC subsidiaries (as defined in Note 1 to the consolidated financial statements contained herein).

(5)

Investments held by the SBIC II subsidiary (as defined in Note 1 to the consolidated financial statements contained herein), which include $720,767 of cash and $294,254,073 of investments (at cost), are excluded from the obligations to the lenders of the Credit Facility. The Company’s obligations to the lenders of the Credit Facility are secured by a first priority security interest in all investments and cash and cash equivalents, except for cash and investments held by the SBIC subsidiaries.

(6)

Security is income producing through dividends or distributions.

(7)

The investment is not a “qualifying asset” under the Investment Company Act of 1940, as amended. The Company may not acquire any non-qualifying assets unless, at the time of the acquisition, qualifying assets represent at least 70% of the Company’s total assets. Qualifying assets represent approximately 94.9% of the Company’s total assets as of December 31, 2025.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025

(8)

(9)

At December 31, 2025, the Company had the following outstanding revolver and delayed draw term loan commitments:


							Unused
				Unfunded			Commitment
Investments		Security		Commitment			Fee		Maturity
2X LLC		Revolver		$	37,500		0.50%		June 5, 2028
Ad.Net Acquisition, LLC		Revolver			1,299,020		0.50%		May 7, 2028
AdCellerant LLC		Revolver			875,995		0.50%		December 12, 2028
ADS Group Opco, LLC		Revolver			55,198		0.00%		December 31, 2027
American Refrigeration, LLC		Revolver			100,000		0.50%		March 31, 2028
AMII Acquisition, LLC		Revolver			500,000		0.50%		December 4, 2029
Amika OpCo LLC *		Revolver			100,000		0.50%		July 1, 2028
ArborWorks, LLC		Revolver			250,895		0.00%		November 6, 2028
Axis Portable Air LLC		Revolver			100,000		0.50%		December 31, 2030
Camp Profiles LLC		Revolver			100,000		0.50%		September 3, 2026
Carolinas Buyer, Inc.		Delayed Draw Term Loan			2,216,358		1.00%		December 20, 2030
Carolinas Buyer, Inc.		Revolver			100,000		0.50%		December 20, 2030
CEATI International Inc.		Revolver			100,000		0.50%		December 31, 2027
Cerebro Buyer, LLC		Delayed Draw Term Loan			1,130,707		1.00%		March 15, 2029
Cerebro Buyer, LLC		Revolver			100,000		0.50%		March 15, 2029
CF512, Inc.		Revolver			91,000		0.50%		September 1, 2026
Champion Services Acquireco LLC		Revolver			100,000		0.50%		September 19, 2030
Channel Partners Intermediateco, LLC		Revolver			16,897		0.50%		February 7, 2027
Compost 360 Acquisition, LLC		Revolver			52,500		0.50%		August 2, 2028
COPILOT Provider Support Services, LLC		Revolver			100,000		0.50%		November 22, 2027
Craftable Intermediate II Inc.		Revolver			60,000		0.50%		June 30, 2028
Curion Holdings, LLC		Revolver			60,855		0.50%		December 31, 2028
DFO Enterprises, LLC		Revolver			100,000		0.50%		September 22, 2030
DMD Systems Recovery, LLC		Delayed Draw Term Loan			1,000,000		0.50%		August 22, 2031
DMD Systems Recovery, LLC		Revolver			100,000		0.50%		August 22, 2031
Elder Care Opco LLC		Delayed Draw Term Loan			2,500,000		0.75%		July 31, 2030
Elder Care Opco LLC		Revolver			100,000		0.50%		July 31, 2030
Environmental Remedies, LLC		Delayed Draw Term Loan			2,681,986		0.50%		January 15, 2030
Environmental Remedies, LLC		Revolver			100,000		0.50%		January 15, 2030
Eskola LLC		Delayed Draw Term Loan**			3,918,298		1.00%		December 19, 2029
evolv Consulting, LLC		Revolver			1,363,636		0.50%		December 7, 2028
Evriholder Acquisition, Inc.		Revolver			100,000		0.50%		January 24, 2028
Exigo, LLC		Revolver			100,000		0.50%		March 16, 2027
FairWave Holdings, LLC		Revolver			628,259		0.50%		April 1, 2029
FairWave Holdings, LLC		Delayed Draw Term Loan			579,226		0.50%		April 1, 2029
Fidus Systems Inc.		Delayed Draw Term Loan			3,172,733		0.50%		October 17, 2031
Fidus Systems Inc.		Revolver			100,000		0.50%		October 17, 2031
FiscalNote Boards LLC		Revolver			391,962		0.50%		March 12, 2029
GSF Buyer, LLC		Delayed Draw Term Loan			2,847,136		1.00%		April 30, 2031
GSF Buyer, LLC		Revolver			100,000		0.50%		April 30, 2031
Guidant Corp.		Revolver			633,424		0.50%		March 12, 2029
HV Watterson Holdings, LLC		Revolver			25		0.50%		December 17, 2026
Identity Theft Guard Solutions, Inc.		Revolver			100,000		0.50%		February 28, 2030
Informativ, LLC		Revolver			100,000		0.50%		July 30, 2027
Inoapps Bidco, LLC		Revolver			20,000		0.50%		February 15, 2027
iNovex Information Systems Incorporated		Revolver			23,000		0.50%		December 17, 2030
International Cybernetics Acquisition, LLC		Delayed Draw Term Loan			3,561,003		1.00%		June 3, 2030

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025


							Unused
				Unfunded			Commitment
Investments		Security		Commitment			Fee		Maturity
International Cybernetics Acquisition, LLC		Revolver		$	100,000		0.50%		June 3, 2030
Invincible Boat Company LLC		Revolver			106,383		0.50%		March 31, 2028
Lightning Intermediate II, LLC		Revolver			100,000		0.50%		June 5, 2028
MacKenzie-Childs Acquisition, Inc.		Revolver			100,000		0.50%		September 2, 2027
Madison Logic Holdings, Inc.		Revolver			52,632		0.50%		December 30, 2027
MBH Management LLC		Delayed Draw Term Loan			500,000		1.00%		November 15, 2029
MBH Management LLC		Revolver			500,000		0.50%		November 15, 2029
Michelli, LLC		Revolver			1,296,076		0.50%		December 21, 2028
Microbe Formulas LLC		Revolver			100,000		0.50%		April 3, 2028
Mobotrex Acquisition, LLC		Delayed Draw Term Loan			1,292,891		1.00%		June 7, 2030
Mobotrex Acquisition, LLC		Revolver			150,606		0.50%		June 7, 2030
MOM Enterprises, LLC		Revolver			100,000		0.50%		May 19, 2028
Monarch Behavioral Therapy, LLC		Delayed Draw Term Loan			173,452		1.00%		June 6, 2030
Monarch Behavioral Therapy, LLC		Revolver			108,408		0.50%		June 6, 2030
Morgan Electrical Group Intermediate Holdings, Inc.		Revolver			100,000		0.50%		August 3, 2029
NINJIO, LLC		Revolver			100,000		0.50%		October 12, 2027
Norplex Micarta Acquisition, Inc.		Revolver			450,000		0.50%		October 31, 2029
Pacific Shoring Holdings, LLC		Revolver			100,000		0.50%		January 10, 2030
PCS Software, Inc.		Revolver			1,317,703		0.50%		June 30, 2027
Plus Delta Buyer LLC		Delayed Draw Term Loan			3,753,955		1.00%		January 16, 2031
Plus Delta Buyer LLC		Revolver			100,000		0.50%		January 16, 2031
Premiere Digital Services, Inc.		Revolver			576,923		0.50%		November 3, 2026
Pure Upper Holdco LLC		Delayed Draw Term Loan			1,000,000		1.00%		December 3, 2031
Pure Upper Holdco LLC		Revolver			100,000		0.50%		December 3, 2031
Recharged Opco, LLC		Revolver			10,000		0.50%		February 7, 2028
RIA Advisory Borrower, LLC		Revolver			26,085		0.50%		August 2, 2027
Said Intermediate, LLC		Revolver			1,168,831		0.50%		June 13, 2029
Sales Benchmark Index, LLC		Revolver			665,730		0.50%		July 7, 2026
Simpler Trading, LLC		Revolver			20,000		0.50%		March 21, 2030
Solid Surface Holdco, LLC		Revolver			138,000		0.50%		June 6, 2030
Strategus, LLC		Delayed Draw Term Loan			2,524,737		1.00%		January 27, 2031
Strategus, LLC		Revolver			100,000		0.50%		January 27, 2031
Teckrez, LLC		Revolver			412,063		1.00%		November 30, 2028
The Hardenbergh Group, Inc.		Revolver			100,000		0.50%		August 6, 2028
The Millennium Alliance LLC		Revolver			100,000		0.50%		July 31, 2031
Tiger 21, LLC		Revolver			100,000		0.50%		December 30, 2030
Tilley Distribution, Inc.		Revolver			86,957		0.50%		December 31, 2026
TradePending OpCo Aggregator, LLC		Revolver			66,667		0.50%		March 2, 2026
TriplePoint Acquisition Holdings LLC		Revolver			743,957		0.50%		May 31, 2029
U.S. Expediters, LLC		Revolver			30,000		0.50%		December 22, 2026
USDTL AcquisitionCo, Inc.		Delayed Draw Term Loan			500,000		1.00%		December 9, 2030
USDTL AcquisitionCo, Inc.		Revolver			80,000		0.50%		December 9, 2030
Valor Buyco LLC		Delayed Draw Term Loan			100,000		0.50%		December 23, 2031
Valor Buyco LLC		Revolver			100,000		0.50%		December 23, 2031
WER Holdings, LLC		Delayed Draw Term Loan			1,408,896		1.00%		April 11, 2030
WER Holdings, LLC***		Revolver			362,594		0.50%		April 11, 2030
		Total Unfunded Debt Commitments		$	52,991,159

* Included in this investment is Line of Credit in the amount of $4,861, with Line of Credit rate of 5.25% and a maturity of July 1, 2028.

** This a last-out delayed draw term loan with contractual rates higher than the applicable rates.

*** Included in this investment is Line of Credit in the amount of $81,144, with Line of Credit rate of 5.50% and a maturity of April 11, 2030.

The accompanying notes are an integral part of these consolidated financial statements.

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Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025

(10)

This loan is a unitranche investment.

(11)

These loans include an interest rate floor feature which is lower than the applicable rates; therefore, the floors are not in effect.

(12)

These loans are last-out term loans with contractual rates higher than the applicable rates; therefore, the floors are not in effect.

(13)

Investment has been on non-accrual since November 1, 2024.

(14)

This loan is convertible to common units at maturity or at the majority of holders.

(15)

Excluded from the investment is an uncalled capital commitment in an amount not to exceed $289,057.

(16)

Investment has been on non-accrual since the later of January 1, 2023 or the investment date.

(17)

(18)

The Company has full discretion to fund the revolver commitment, with an unfunded rate of 0.00% and a maturity of February 7, 2028. As of December 31, 2025, there was no undrawn revolver commitment.

(19)

Investment has been on non-accrual since January 1, 2024.

(20)

(21)

Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $2,187,895, with an unfunded rate of 0.00% and a maturity of September 3, 2026. The Company has full discretion to fund the revolver commitment.

(22)


		December 31, 2025		Gross Additions		Gross Reductions		Amount of Realized		Amount of Unrealized		March 31, 2026		Interest Income
Investments	Security	Value		(a)		(b)		Loss		Appreciation (Depreciation)		Value		(c)
EH Real Estate Services, LLC
Term Loan A-1	First Lien	$	254,101	$	-	$	(1,617,134)	$	-	$	1,363,033	$	-	$	-
Term Loan A-2	First Lien		87,877		-		(496,095)		-		408,218		-		-
Term Loan A-3	First Lien		31,142		-		(167,887)		-		136,745		-		-
Term Loan A-4	First Lien		1,505,537		-		-		-		(346,274)		1,159,263		-
Term Loan A-5	First Lien		5,710,182		24,368		-		-		(1,318,947)		4,415,603		-
Term Loan A-6	First Lien		-		1,096,456		-		-		-		1,096,456		-
Term Loan A-7	First Lien		-		1,644,685		-		-		-		1,644,685		-
Revolver	First Lien		63,597		-		-		-		-		63,597		-
EH Holdco, LLC Common Units	Equity		-		-		-		-		-		-		-
EH Holdco, LLC Series A Preferred Units	Equity		-		-		-		-		-		-		-
J.R. Watkins, LLC
Term Loan	First Lien	$	2,855,414	$	-	$	-	$	-	$	543,888		3,399,302		-
Revolver	First Lien		236,250		462,113		-		-		2,475,863		3,174,226		-
Class A Preferred	Equity		-		-		-		(1,132,576)		1,132,576		-		-
Class A Units	Equity		-		-		-		-		-		-		-
Total control investments		$	10,744,100	$	3,227,622	$	(2,281,116)	$	(1,132,576)	$	4,395,102	$	14,953,132	$	-

(b) Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales and return of capital.

(c) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included in the control category.

(23)	Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.


		December 31, 2025		Gross Additions		Gross Reductions		Amount of Realized		Amount of Unrealized		March 31, 2026		Interest Income
Investments	Security	Value		(a)		(b)		Loss		Appreciation (Depreciation)		Value		(c)
Simpler Trading, LLC
Term Loan (SBIC)	First Lien	$	5,320,286	$	217,434	$	(1,579,771)	$	(5,605,667)	$	4,515,792	$	2,868,074	$	226,424
Revolver	First Lien		20,865		7,000		-		(46,000)		18,135		-		-
Trade Education Holdings, L.L.C. Class A Units	Equity		-		-		-		(662,660)		662,660		-		-
Simpler Trading, LLC Preferred Units (SBIC)	Equity		-		1,656,650		-		-		(774,050)		882,600		-
Simpler Ultimate Holdings, LLC Class A Units (SBIC)	Equity		-		281,936		-		-		(281,936)		-		-
Total non-controlled, affiliated investments		$	5,341,151	$	2,163,020	$	(1,579,771)	$	(6,314,327)	$	4,140,601	$	3,750,674	$	226,424

(b) Gross reductions include decreases in the cost basis of investments resulting from principal repayments, sales and return of capital.

(c) Represents the total amount of interest, fees or dividends credited to income for the portion of the year an investment was included he non-controlled, affiliated investments category.

(24)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $100,000, with an unfunded rate of 0.00% and a maturity of August 31, 2027. The Company has full discretion to fund the revolver commitment.

(25)	Investment has been on non-accrual since the later of October 1, 2025 or the investment date.

The accompanying notes are an integral part of these consolidated financial statements.

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Stellus Capital Investment Corporation

Consolidated Schedule of Investments

December 31, 2025

(26)	Investment has been on non-accrual since the later of August 21, 2024 or the investment date.

(27)	Excluded from the investment is an undrawn revolver commitment in an amount not to exceed $1,526,600 with an unfunded rate of 0.50% and a maturity of June 22, 2029. The Company has full discretion to fund the revolver commitment

(28)	Excluded from the investment is an uncalled capital commitment in an amount not to exceed $99,799.

Abbreviation Legend

BSBY — Bloomberg Short-Term Bank Yield Index

PIK — Payment-In-Kind

SOFR — Secured Overnight Financing Rate

SONIA — Sterling Overnight Index Average

The accompanying notes are an integral part of these consolidated financial statements.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

NOTE 1 — NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

Stellus Capital Investment Corporation (“we”, “us”, “our” and the “Company”) was formed as a Maryland corporation on May 18, 2012 (“Inception”) and is an externally managed, closed-end, non-diversified investment management company. The Company is applying the guidance of Accounting Standards Codification (“ASC”) Topic 946, Financial Services Investment Companies (“ASC Topic 946”). The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”), and has elected to be treated, qualifies, and intends to qualify annually to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), for U.S. federal income tax purposes. The Company’s investment activities are managed by its investment adviser, Stellus Capital Management, LLC (“Stellus Capital” or the “Advisor”).

As of March 31, 2026, the Company had issued a total of 28,947,254 shares and raised $419,105,333 in gross proceeds since Inception, incurring an aggregate of $13,093,525 in offering expenses and sales load fees. Additionally, the Company has received $672,917 in offering expenses reimbursements from the Advisor for net proceeds from offerings of $406,684,725. The Company’s shares are currently listed on the New York Stock Exchange under the symbol “SCM”. See Note 4 to the consolidated financial statements contained herein for further details.

The Company has established the following wholly owned subsidiaries: SCIC — Consolidated Blocker, Inc., SCIC — Invincible Blocker 1, Inc., SCIC — SKP Blocker 1, Inc., SCIC — APE Blocker 1, Inc., SCIC — Venbrook Blocker, Inc., SCIC — CC Blocker 1, Inc., SCIC — ERC Blocker 1, Inc., and SCIC — Hollander Blocker 1, Inc., which are structured as Delaware entities, to hold equity or equity-like investments in portfolio companies organized as limited liability companies, or LLCs (or other forms of pass-through entities) (collectively, the “Taxable Subsidiaries”). The Taxable Subsidiaries are consolidated for U.S. generally accepted accounting principles (“U.S. GAAP”) reporting purposes, and the portfolio investments held by them are included in the consolidated financial statements.

On June 14, 2013, the Company formed Stellus Capital SBIC, LP (the “SBIC I subsidiary”), a Delaware limited partnership, and its general partner, Stellus Capital SBIC GP, LLC, a Delaware limited liability company, as wholly owned subsidiaries of the Company. On June 20, 2014, the SBIC I subsidiary received a license from the U.S. Small Business Administration (“SBA”) to operate as a small business investment company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended (the “SBIC Act”). The SBIC I subsidiary and its general partner are consolidated for U.S. GAAP reporting purposes, and the portfolio investments held by the SBIC I subsidiary are included in the consolidated financial statements.

On November 29, 2018, the Company formed Stellus Capital SBIC II, LP (the “SBIC II subsidiary”), a Delaware limited partnership. On August 14, 2019, the SBIC II subsidiary received a license from the SBA to operate as an SBIC under Section 301(c) of the SBIC Act. The SBIC II subsidiary and its general partner, Stellus Capital SBIC GP, LLC, are consolidated for U.S. GAAP reporting purposes, and the portfolio investments held by the SBIC II subsidiary are included in the consolidated financial statements.

The SBIC licenses allow the SBIC I subsidiary and the SBIC II subsidiary (together, the “SBIC subsidiaries”) to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse, interest only debentures with interest payable semi-annually and have a ten-year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with 10-year maturities. The SBA, as a creditor, will have a superior claim to the SBIC subsidiaries’ assets over the Company’s stockholders in the event the Company liquidates one or both of the SBIC subsidiaries or the SBA exercises its remedies under the SBA-guaranteed debentures issued by the SBIC subsidiaries upon an event of default. For the SBIC I subsidiary, SBA regulations limit the amount that the SBIC I subsidiary may borrow to a maximum of $150,000,000 when it has at least $75,000,000 in regulatory capital, as such term is defined by the SBA. For the SBIC II subsidiary, SBA regulations limit the amounts that the SBIC II subsidiary may borrow to

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

$175,000,000 when it has at least $87,500,000 in regulatory capital, as such term is defined by the SBA. For two or more SBICs under common control, the maximum aggregate amount of outstanding SBA-guaranteed debentures cannot exceed $350,000,000.

As of March 31, 2026 and December 31, 2025, the SBIC I subsidiary had $73,625,000 and $75,000,000 in regulatory capital, respectively.

As of both March 31, 2026 and December 31, 2025, the SBIC II subsidiary had $87,500,000 in regulatory capital.

As of March 31, 2026 and December 31, 2025, the SBIC I subsidiary had $85,000,000 and $124,000,000 of SBA-guaranteed debentures outstanding, respectively. As of both March 31, 2026 and December 31, 2025, the SBIC II subsidiary had $175,000,000 of SBA-guaranteed debentures outstanding.

See footnotes (4) and (5) of the Consolidated Schedule of Investments for additional information regarding the treatment of investments in the SBIC subsidiaries with respect to the Credit Facility (as defined in Note 9).

Under the provisions of the 1940 Act, the Company is permitted, as a BDC that has satisfied certain requirements, to issue senior securities in amounts such that its asset coverage ratio, as defined in the 1940 Act, equals at least 150% of its gross assets, less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. As of March 31, 2026, the Company’s asset coverage ratio was 199%.

The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in lower middle-market companies. The Company seeks to achieve its investment objective by originating and investing primarily in private U.S. lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien, second lien, unitranche and unsecured debt financings, often with corresponding equity co-investments. The Company sources investments primarily through the extensive network of relationships that the principals of Stellus Capital have developed with financial sponsor firms, financial institutions, lower middle-market companies, management teams and other professional intermediaries.

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in conformity with generally accepted accounting principles in the U.S. GAAP for interim financial information and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, certain disclosures accompanying the annual financial statements prepared in accordance with U.S. GAAP are omitted. The unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries.

In the opinion of management, the unaudited consolidated financial results included herein contain all adjustments, consisting solely of normal recurring accruals, considered necessary for the fair presentation of the financial statements for the interim periods included herein. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the operating results to be expected for the full year. Also, the unaudited consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2025.

In accordance with Regulation S-X under the Exchange Act, the Company does not consolidate portfolio company investments. The accounting records of the Company are maintained in U.S. dollars.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

Economic Developments

Economic activity has continued to accelerate across sectors and regions. Nonetheless, the Company has observed and continues to observe macroeconomic uncertainty as a result of various events and trends, including labor resource shortages, commodity inflation, fluctuating interest rates, economic sanctions in response to international conflicts and instances of geopolitical, economic and financial market instability in the United States and abroad, including as a result of the imposition of tariffs on the United States or its trading partners, and the global conflict in the Middle East, including Iran. One or more of these factors may contribute to increased market volatility and may have long- and short-term effects in the United States and worldwide financial markets.

Portfolio Investment Classification

The Company classifies its portfolio investments in accordance with the requirements of the 1940 Act as follows: (a) “Control Investments” are defined as investments in which the Company owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) “Affiliate Investments” are defined as investments in which the Company owns between 5% and 25% of the voting securities and does not have rights to maintain greater than 50% of the board representation, and (c) “Non-controlled, non-affiliate investments” are defined as investments that are neither Control Investments nor Affiliate Investments.

Cash and Cash Equivalents

Cash consists of bank demand deposits. The Company deems certain money market mutual funds, U.S. Treasury Bills, and other high-quality, short-term debt securities as cash equivalents.

As of March 31, 2026, cash balances totaling $52,985, including foreign currency of $33,089 (acquisition cost of $33,089), did not exceed Federal Deposit Insurance Corporation ("FDIC") insurance protection levels of $250,000. In addition, as of March 31, 2026, the Company held $3,323,540 in cash equivalents in money market mutual funds, which are carried at net asset value, which is considered a Level 1 valuation technique. All of the Company’s cash deposits are held at large established high credit quality financial institutions, and management believes that risk of loss associated with any uninsured balances is remote.

Fair Value Measurements

The Company accounts for all of its financial instruments at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its financial instruments related to receivables and payables approximate the fair value of these items due to the short maturity of these instruments, which are considered Level 2 in the fair value hierarchy.

The Credit Facility, SBA-guaranteed debentures, and Notes Payable (as defined in Note 11) are carried at amortized cost in the Consolidated Statements of Assets and Liabilities. As of March 31, 2026, the estimated fair value of the Credit Facility approximates the carrying value because the interest rates adjust to the current market interest rate (Level 3 classification). Valuation techniques and significant inputs used to determine fair value include company details; credit, market and liquidity risk and events; financial health of the company; place in the capital structure; interest rate; and terms and conditions of the Credit Facility. The estimated fair value of the SBA-guaranteed debentures and Notes Payable was determined by discounting projected remaining payments using market interest rates for borrowings of the Company and entities with similar credit risks at the measurement date. Notes Payable for which readily available market quotations do not exist are valued using prices provided by independent pricing services, which may incorporate matrix pricing and/or independent broker quotations. At the measurement date, the estimated fair values of the SBA-guaranteed debentures and Notes Payable as prepared for disclosure purposes was $232,838,812 (Level 3 classification) and $124,875,000 (Level 2 classification),

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

respectively. See Note 6 to the Consolidated Financial Statements contained herein for further discussion regarding the fair value measurements and hierarchy.

Consolidation

As permitted under Regulation S-X under the Exchange Act and ASC Topic 946, the Company generally does not consolidate its investments in a portfolio company other than an investment company subsidiary. Accordingly, the Company consolidated the results of the SBIC subsidiaries and the Taxable Subsidiaries. All intercompany balances have been eliminated upon consolidation.

Use of Estimates

The preparation of the Consolidated Statements of Assets and Liabilities in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ materially. Additionally, as explained in Note 1, the Consolidated Financial Statements include investments in the portfolio whose values have been determined in good faith by the Board, pursuant to procedures approved by the Board, in the absence of readily available market quotations. Because of the inherent uncertainty of the investment portfolio valuations, those estimated values may differ materially from the values that would have been determined had a ready market for the securities existed.

Deferred Financing Costs

Deferred financing costs, prepaid loan fees on SBA-guaranteed debentures and prepaid loan structure fees consist of fees and expenses paid in connection with the closing of the Credit Facility, Notes Payable and SBA-guaranteed debentures, and are capitalized at the time of payment. These costs are amortized using the straight-line method over the term of the respective instrument and are presented as an offset to the corresponding debt on the Consolidated Statements of Assets and Liabilities.

Offering Costs

Deferred offering costs consist of fees and expenses incurred in connection with the offer and sale of the Company’s common stock, including legal, accounting, printing fees and other related expenses, as well as costs incurred in connection with the filing of a shelf registration statement and related prospectuses. These costs are capitalized when incurred and recognized as a reduction of offering proceeds when the offering is consummated and shown on the Consolidated Statements of Changes in Net Assets as a reduction to Paid-in capital. As of March 31, 2026, there was $75,000 of such costs, which are included in “Deferred offering costs” on the Consolidated Statement of Assets and Liabilities.

Investments

Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining the fair value of a BDC’s investments in good faith for purposes of the 1940 Act. Rule 2a-5 permits boards of directors of BDCs to designate certain parties to perform fair value determinations, subject to oversight of the board of directors and compliance with certain conditions. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a board of directors must determine the fair value of a security. Rule 31a-4 under the 1940 Act (“Rule 31a-4”), establishes additional recordkeeping requirements related to fair value determinations. While the board of directors of the Company (the “Board”) has not elected to designate the Advisor as

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order to comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

As a BDC, the Company will generally invest in illiquid loans and securities, including debt and equity securities of private lower middle-market companies. Section 2(a)(41) of the 1940 Act requires that a BDC value its assets as follows: (i) the third-party price for securities for which a market quotation is readily available; and (ii) for all other securities and assets, fair value, as determined in good faith under procedures adopted by a BDC's board or valuation designee, as applicable. Under procedures established by the Board, the Company values investments for which market quotations are readily available at such market quotations. The Company obtains these market quotations from an independent pricing service or at the midpoint of the bid and ask prices obtained from at least two brokers or dealers (if available; otherwise, by a principal market maker or a primary market dealer). Debt and equity securities that are not publicly traded or whose market quotations are not readily available will be valued at fair value as determined in good faith by the Board. Such determination of fair value may involve subjective judgments and estimates. The Company also engages independent valuation providers to review the valuation of each portfolio investment that does not have a readily available market quotation at least twice annually.

Debt and equity investments purchased within approximately 90 days of the valuation date will be valued at cost plus accreted discount, or minus amortized premium, which approximates fair value. With respect to unquoted securities, the Board values each investment considering, among other measures, discounted cash flow models, comparisons of financial ratios of peer companies that are public and other factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Board uses the pricing indicated by the external event to corroborate and/or assist in determining the valuation. Because the Company expects that there will not be a readily available market quotation for many of the investments in its portfolio, the Company expects to value most of its portfolio investments at fair value as determined in good faith by the Board using a documented valuation policy and a consistently applied valuation process. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market quotation, the fair value of the Company’s investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

In following these approaches, the types of factors that will be taken into account in fair value pricing investments include, as relevant, but are not limited to:

●

available current market data, including relevant and applicable market trading and transaction comparables;

●

applicable market yields and multiples;

●

financial covenants;

●

call protection provisions;

●

information rights;

●

the nature and realizable value of any collateral;

●

the portfolio company’s ability to make payments, its earnings and discounted cash flows and the markets in which it does business;

●

comparisons of financial ratios of peer companies that are public;

●

comparable merger and acquisition transactions; and

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

●

the principal market and enterprise values.

Revenue Recognition

The Company records interest income on an accrual basis to the extent such interest is deemed collectible. Payment-in-kind (“PIK”) interest represents contractual interest accrued and added to the loan balance that generally becomes due at maturity. The Company will not accrue any form of interest on loans and debt securities if it has reason to doubt its ability to collect such interest. Loan origination fees, original issue discount and market discounts or premiums are capitalized, and the Company then accretes or amortizes such amounts using the effective interest method as interest income. Upon the prepayment of a loan or debt security, any unamortized loan origination fee is recorded as interest income. The Company records prepayment premiums on loans and debt securities as other income. Dividend income, if any, will be recognized on the ex-dividend date.

A presentation of the interest income the Company has earned from its portfolio companies for the three months ended March 31, 2026 and 2025 is as follows:


	For the three months ended
	March 31, 2026		March 31, 2025
Loan interest	$	19,465,129	$	22,350,506
PIK income		1,674,387		976,479
Fee amortization income⁽¹⁾		764,447		761,383
Fee income acceleration⁽²⁾		349,044		38,748
Total Interest Income	$	22,253,007	$	24,127,116

(1)	Includes amortization of fees on unfunded commitments.

(2)	Unamortized loan origination fees recognized upon full or partial realization of investment.

To maintain the Company’s treatment as a RIC, substantially all of this income must be paid to stockholders in the form of distributions, even if the Company has not collected any cash.

Management considers portfolio company-specific circumstances as well as other economic factors in determining the collectability of interest income. As of March 31, 2026, the Company had loans to six portfolio companies that were on non-accrual status, which represented approximately 9.2% of the Company’s total investments at cost and 5.2% at fair value. As of December 31, 2025, the Company had loans to five portfolio companies that were on non-accrual status, which represented approximately 7.5% of the Company’s total investments at cost and 4.1% at fair value. As of March 31, 2026 and December 31, 2025, $13,208,429 and $11,182,515, respectively, of income from investments on non-accrual had not been accrued. If a loan or debt security’s status significantly improves regarding the debtor’s ability to service the debt or other obligations, or if a loan or debt security is sold or written off, the Company will remove it from non-accrual status.

Net Realized Gains or Losses and Net Change in Unrealized Appreciation or Depreciation

Realized gains or losses are measured by the difference between the net proceeds from the repayment, sale or disposition and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when gains or losses are realized.

Foreign currency amounts are translated into U.S. Dollars (USD) on the following basis:

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

●

fair value of investment securities, other assets and liabilities—at the spot exchange rate on the last business day of the period; and

●

purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such investment transactions, income or expenses.

Investment Transaction Costs

Costs that are material and associated with an investment transaction, including legal expenses, are included in the cost basis of purchases and deducted from the proceeds of sales unless such costs are reimbursed by the borrower.

Receivables and Payables for Unsettled Securities Transactions

The Company records all investments on a trade date basis.

U.S. Federal Income Taxes

The Company has elected and intends to qualify annually to be treated as a RIC under subchapter M of the Code. To qualify as a RIC, among other things, the Company generally is required to timely distribute to its stockholders at least 90% of its investment company taxable income, as defined by the Code, for each year. So long as the Company maintains its status as a RIC, it generally will not be subject to U.S. federal income tax on any ordinary income or capital gains that it distributes at least annually to its stockholders as dividends. Rather, any tax liability related to income earned by the Company represents obligations of the Company’s investors and will not be reflected in the Consolidated Financial Statements of the Company.

The Company generally is subject to a nondeductible 4% U.S. federal excise tax if it does not distribute to its stockholders in a timely manner in each taxable year, an amount at least equal to the sum of (i) 98% of its ordinary income for such calendar year, (ii) 98.2% the amount by which the Company’s capital gain exceeds its capital loss (adjusted for certain ordinary losses) for the one-year period ending October 31 in that calendar year, and (iii) certain undistributed amounts from previous years on which the Company paid no U.S. federal income tax. The Company, at its discretion, may choose not to distribute all its taxable income for the calendar year and pay a non-deductible 4% excise tax on this income. If the Company chooses to do so, all other things being equal, this would increase expenses and reduce the amount of cash available to be distributed to stockholders. To the extent that the Company determines that its estimated current year annual taxable income will be in excess of estimated current year dividend distributions from such taxable income, the Company accrues excise taxes on estimated excess taxable income as taxable income is earned.

Current income tax expense for the three months ended March 31, 2026 of $360,471 was mostly related to excise and franchise taxes. Income tax expense for the three months ended March 31, 2025 of $499,547 was mostly related to excise and franchise taxes.

The Company evaluates tax positions taken or expected to be taken while preparing its tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet a “more-likely-than-not” threshold would be recorded as a tax benefit or expense in the applicable period. As of March 31, 2026 and December 31, 2025, the Company had not recorded a liability for any unrecognized tax positions. Management’s evaluation of uncertain tax positions may be subject to review and adjustment at a later date based upon factors including, but not limited to, an ongoing analysis of tax laws, regulations and interpretations thereof. The Company’s policy is to include interest and penalties related to income taxes, if applicable, in general and administrative expenses. Any expenses for the three months ended March 31, 2026 and 2025 were de minimis.

The Taxable Subsidiaries are direct wholly owned subsidiaries of the Company that have elected to be treated as corporations for U.S. federal income tax purposes, and as a result, the income of the Taxable Subsidiaries is subject to U.S. federal income tax at corporate rates. The Taxable Subsidiaries permit the Company to hold equity investments in portfolio companies that are “pass through” entities for tax

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

purposes and continue to comply with the “source-of-income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiaries are not consolidated with the Company for income tax purposes and may generate income tax expense, benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. The income tax expense, or benefit, if any, and related tax assets and liabilities of the Taxable Subsidiaries are reflected in the Company’s Consolidated Financial Statements.

The Taxable Subsidiaries use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

For both the three months ended March 31, 2026 and 2025, the Company did not record deferred income tax benefit or provision related to the Taxable Subsidiaries. In addition, as of both March 31, 2026 and December 31, 2025, the Company had a net deferred tax liability of $0.

Earnings per Share

Basic per share calculations are computed utilizing the weighted average number of shares of the Company’s common stock outstanding for the period. The Company has no common stock equivalents. As a result, there is no difference between diluted earnings per share and basic per share amounts.

Paid In Capital

The Company records the proceeds from the sale of shares of its common stock on a net basis to (i) capital stock and (ii) paid in capital in excess of par value, excluding all commissions and marketing support fees.

Distributable (Loss) Earnings

The components that make up distributable (loss) earnings on the Consolidated Statements of Assets and Liabilities as of March 31, 2026 and December 31, 2025 were as follows:


		March 31, 2026		December 31, 2025
Accumulated net realized loss from investments, net of cumulative dividends of $30,352,761 for both periods		$	(39,212,808)	$	(39,963,218)
Net realized loss on foreign currency translations			(278,481)		(282,145)
Net unrealized depreciation on investments and cash equivalents, net of deferred tax liability of $0 for both periods			(24,967,577)		(18,419,231)
Net unrealized (depreciation) appreciation on foreign currency translations			(30,166)		17,854
Accumulated undistributed net investment income			29,625,813		31,966,956
Total distributable loss		$	(34,863,219)	$	(26,679,784)

Recently Issued Accounting Standards

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 enhances income tax disclosures, including

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

disclosure of income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company’s adoption of ASU 2023-09 did not have a material impact on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (“ASU 2024-03”), which requires disaggregated disclosure of certain costs and expenses, including purchases of inventory, employee compensation, depreciation, amortization and depletion, within relevant income statement captions. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods beginning with the first quarter ended March 31, 2028. Early adoption and retrospective application is permitted. The Company is currently assessing the impact of the new guidance.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes the impact of the recently issued standards and any that are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

NOTE 2 — RELATED PARTY ARRANGEMENTS

Investment Advisory Agreement

The Company has entered into an investment advisory agreement (the “Investment Advisory Agreement”) with Stellus Capital, pursuant to which Stellus Capital serves as its investment adviser. Pursuant to this agreement, the Company has agreed to pay to Stellus Capital an annual base management fee of 1.75% of gross assets, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents, and an incentive fee.

For the three months ended March 31, 2026, the Company recorded an expense for base management fees of $4,392,357. For the three months ended March 31, 2025, the Company recorded an expense for base management fees of $4,054,726. As of March 31, 2026 and December 31, 2025, $4,392,357 and $4,442,705 of such management fees, respectively, were payable to Stellus Capital.

The incentive fee has two components, the investment income incentive fee and the capital gains incentive fee, as follows:

Investment Income Incentive Fee

The investment income component of the incentive fee (“Income Incentive Fee”) is calculated, and payable to the Advisor, quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter, subject to a cumulative total return requirement and to deferral of non-cash amounts. The pre-incentive fee net investment income, which is expressed as a rate of return on the value of the Company’s net assets attributable to the Company’s common stock for the immediately preceding calendar quarter, will have a 2.0% (which is 8.0% annualized) hurdle rate (also referred to as the “Hurdle”). Pre-incentive fee net investment income means interest income, dividend income and any other income accrued during the calendar quarter, minus the Company’s operating expenses for the quarter, excluding the incentive fee. Pre-incentive fee net investment income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. The Advisor receives no incentive fee for any calendar quarter in which the Company’s pre-incentive fee net investment income does not exceed the Hurdle. Subject to the cumulative total return requirement described below, the Advisor receives 100% of the Company’s pre-incentive fee net investment income for any calendar quarter with respect to that portion of the pre-incentive net investment income for such quarter, if any, that exceeds the Hurdle but is less than 2.5% (which is 10.0% annualized) of net assets (also referred to as the “Catch-up”) and 20.0% of the Company’s pre-incentive fee net investment income for such calendar quarter, if any, greater than 2.5% (10.0% annualized) of net assets.

The foregoing Income Incentive Fee is subject to a total return requirement, which provides that no incentive fee in respect of the Company’s pre-incentive fee net investment income is payable except to the extent 20.0% of the cumulative net increase in net assets

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

resulting from operations over the then-current and 11 preceding calendar quarters exceeds the cumulative incentive fees accrued and/or paid for the 11 preceding quarters. In other words, any Income Incentive Fee that is payable in a calendar quarter is limited to the lesser of (i) 20% of the amount by which the Company’s pre-incentive fee net investment income for such calendar quarter exceeds the 2.0% hurdle, subject to the Catch-up, and (ii) (x) 20% of the cumulative net increase in net assets resulting from operations for the then-current and 11 preceding quarters minus (y) the cumulative incentive fees accrued and/or paid for the 11 preceding calendar quarters. For the foregoing purpose, the “cumulative net increase in net assets resulting from operations” is the amount, if positive, of the sum of pre-incentive fee net investment income, realized gains and losses and unrealized appreciation and depreciation of the Company for the then current and 11 preceding calendar quarters. In addition, the Advisor is not paid the portion of such incentive fee that is attributable to deferred interest until the Company actually receives such interest in cash.

For the three months ended March 31, 2026, the Company incurred $106,709 of Income Incentive Fees. For the three months ended March 31, 2025, the Company incurred $2,136,491 of Income Incentive Fees. As of March 31, 2026 and December 31, 2025, $2,413,077 and $2,317,429, respectively, of such Income Incentive Fees were payable to the Advisor, of which $1,628,496 and $1,539,724, respectively, were currently payable (as explained below). As of March 31, 2026 and December 31, 2025, $784,581 and $777,705, respectively, of Income Incentive Fees incurred but not paid by the Company were generated from deferred interest (i.e. PIK, certain discount accretion and deferred interest) and are not payable until such amounts are received by the Company in cash. For the three months ended March 31, 2026 and 2025, $11,061 and $1,242,843, respectively, of Income Incentive Fees accrued but not paid by the Company were permanently written off due to the Cumulative Pre-Incentive Fee Net Return limitation.

Capital Gains Incentive Fee

The Company also pays the Advisor an incentive fee based on capital gains (the “Capital Gains Incentive Fee”). The Capital Gains Incentive Fee is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date). The Capital Gains Incentive Fee is equal to 20.0% of the Company’s cumulative aggregate realized capital gains from Inception through the end of that calendar year, computed net of the cumulative aggregate realized capital losses and cumulative aggregate unrealized capital depreciation through the end of such year. The aggregate amount of any previously paid Capital Gains Incentive Fee is subtracted from such Capital Gains Incentive Fee calculated.

U.S. GAAP requires that the Capital Gains Incentive Fee accrual considers the cumulative aggregate realized gains and losses and unrealized capital appreciation or depreciation of investments and other financial instruments in the calculation, as an incentive fee would be payable if such realized gains and losses and unrealized capital appreciation or depreciation were realized, even though such unrealized capital appreciation or depreciation is not permitted to be considered in calculating the Capital Gains Incentive Fee actually payable under the Investment Advisory Agreement. There can be no assurance that unrealized appreciation or depreciation will be realized in the future. Accordingly, such fees, as calculated and accrued, may not necessarily be payable under the Investment Advisory Agreement, and may never be paid based upon the computation of incentive fees in subsequent periods.

For both the three months ended March 31, 2026 and 2025, the Company did not incur any Capital Gains Incentive Fee. As of March 31, 2026 and December 31, 2025, no Capital Gains Incentive Fee was accrued.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following tables summarize the components of the incentive fees discussed above:


	For the three months ended
	March 31, 2026		March 31, 2025
Investment income incentive fees incurred	$	106,709	$	2,136,491
Income incentive fees waived		(11,061)		(1,242,843)
Incentive fees expense	$	95,648	$	893,648


	March 31, 2026		December 31, 2025
Investment income incentive fee currently payable	$	1,628,496	$	1,539,724
Investment income incentive fee deferred		784,581		777,705
Incentive fee payable	$	2,413,077	$	2,317,429

Director Fees

For the three months ended March 31, 2026, the Company recorded an expense relating to independent director fees of $129,250. For the three months ended March 31, 2025, the Company recorded an expense relating to independent director fees of $111,250. As of both March 31, 2026 and December 31, 2025, the Company had no unpaid independent director fees.

Co-Investment Pursuant to SEC Order

On May 9, 2022, the Company received a new exemptive order (the “Order”) that superseded prior co-investment exemptive relief orders and permits the Company to co-invest with additional types of private funds, other BDCs, and registered investment companies managed by Stellus Capital or an adviser that is controlled, controlling, or under common control with Stellus Capital, subject to the conditions included therein. Pursuant to the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company’s independent directors must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching of the Company or its stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of the Company’s stockholders and is consistent with its investment objectives and strategies; (3) the investment by the Company’s affiliates would not disadvantage the Company, and the Company’s participation would not be on a basis different from or less advantageous than that on which the Company’s affiliates are investing and (4) the proposed investment by the Company would not benefit the Advisor, the other affiliated funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the Order and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

The Company co-invests, subject to the conditions in the Order, with a private BDC and private credit funds managed by Stellus Capital or an affiliate thereof that have investment strategies that are similar or identical to the Company’s investment strategy, and the Company may co-invest with other BDCs, registered investment companies and private credit funds managed by Stellus Capital or an adviser that is controlled, controlling, or under common control with Stellus Capital in the future. The Company believes that such co-investments may afford it additional investment opportunities and an ability to achieve greater diversification.

Administrative Agent

The Company serves as the administrative agent on certain investment transactions, including co-investments with its affiliates under the Order. As of March 31, 2026, there was $2,335,513 due to related parties related to interest paid by a borrower to the Company as administrative agent, which is included in “Related party payable” on the Consolidated Statement of Assets and Liabilities. As of December 31, 2025, there was no cash due to related parties related to interest paid by a borrower to a Company as administrative agent.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

Additionally, as of both March 31, 2026 and December 31, 2025, there was $0 due to other investment funds related to interest paid by a borrower to the Company as administrative agent.

License Agreement

The Company has entered into a license agreement with Stellus Capital under which Stellus Capital has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Stellus Capital.” Under this agreement, the Company has a right to use the “Stellus Capital” name for so long as Stellus Capital or one of its affiliates remains its investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Stellus Capital” name. This license agreement will remain in effect for so long as Stellus Capital or one of its affiliates remains the Company's investment adviser.

Administration Agreement

The Company has entered into an administration agreement (the “Administration Agreement”) with Stellus Capital, pursuant to which Stellus Capital furnishes the Company with office facilities and equipment and provides the Company with the clerical, bookkeeping, recordkeeping and other administrative services necessary to conduct day-to-day operations. Under this Administration Agreement, Stellus Capital performs, or oversees the performance of, its required administrative services, which includes, among other things, being responsible for the financial records which the Company is required to maintain and preparing reports to its stockholders and reports filed with the SEC.

For the three months ended March 31, 2026 and 2025, the Company recorded expenses of $531,593 and $370,974, respectively, related to the Administration Agreement, which are included in “Administrative services expenses” on the Consolidated Statements of Operations. As of March 31, 2026 and December 31, 2025, $531,593 and $530,739, respectively, remained payable to Stellus Capital relating to the Administration Agreement, which are included in “Administrative services payable” on the Consolidated Statements of Assets and Liabilities.

Indemnification

The Investment Advisory Agreement provides that, absent willful misfeasance, bad faith or gross negligence in the performance of its duties or by reason of the reckless disregard of its duties and obligations under the Investment Advisory Agreement, Stellus Capital and its officers, managers, partners, agents, employees, controlling persons and members, and any other person or entity affiliated with it, are entitled to indemnification from the Company for any damages, liabilities, costs and expenses (including reasonable attorneys’ fees and amounts reasonably paid in settlement) arising from the rendering of Stellus Capital’s services under the Investment Advisory Agreement or otherwise as the Company’s investment adviser.

The Company has also entered into indemnification agreements with its directors. The indemnification agreements are intended to provide the Company’s directors the maximum indemnification permitted under Maryland law and the 1940 Act. Each indemnification agreement provides that the Company shall indemnify the director who is a party to the agreement (an “Indemnitee”), including the advancement of legal expenses, if, by reason of his or her corporate status, the Indemnitee is, or is threatened to be, made a party to or a witness in any threatened, pending, or completed proceeding, other than a proceeding by or in the right of the Company.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

NOTE 3 — DISTRIBUTIONS

Distributions are generally declared by the Company’s Board each calendar quarter and recognized as distribution liabilities on the declaration date. Stockholder distributions, if any, are determined by the Board. Any distribution to stockholders will be declared out of assets legally available for distribution.

For the three months ended March 31, 2026 and 2025, the Company declared aggregate distributions of $0.34 per share and $0.40 per share on its common stock, respectively. The Company has declared aggregate distributions of $18.49 per share on its common stock since Inception as described below:


Date Declared		Record Date		Payment Date		Per Share⁽¹⁾
Fiscal 2012						$	0.18
Fiscal 2013						$	1.36
Fiscal 2014						$	1.42
Fiscal 2015						$	1.36
Fiscal 2016						$	1.36
Fiscal 2017		Various				$	1.36
Fiscal 2018						$	1.36
Fiscal 2019						$	1.36
Fiscal 2020						$	1.15
Fiscal 2021						$	1.14
Fiscal 2022						$	1.30
Fiscal 2023						$	1.60
Fiscal 2024						$	1.60
Fiscal 2025						$	1.60
Fiscal 2026
January 16, 2026		January 30, 2026		February 13, 2026		$	0.1133
January 16, 2026		February 27, 2026		March 13, 2026		$	0.1133
January 16, 2026		March 31, 2026		April 15, 2026		$	0.1133
Total						$	18.49

(1)	Distributions for fiscal years 2012 through 2025 are shown in aggregate amounts.

The Company has adopted an “opt out” dividend reinvestment plan (“DRIP”), pursuant to which a stockholder whose shares are held in their own name will receive distributions in shares of the Company’s common stock under the Company’s DRIP unless they elect to receive distributions in cash. Stockholders whose shares are held in the name of a broker or the nominee of a broker may have distributions reinvested only if such service is provided by the broker or the nominee, or if the broker of the nominee permits participation in the DRIP.

Although distributions paid in the form of additional shares of the Company’s common stock will generally be subject to U.S. federal, state and local taxes in the same manner as cash distributions, investors participating in the Company’s DRIP will not receive any corresponding cash distributions with which to pay any such applicable taxes. Any distributions reinvested through the issuance of shares through the Company’s DRIP will increase the Company’s gross assets on which the base management fee and the incentive fee are determined and paid to Stellus Capital. The Company did not issue any new shares in connection with the DRIP during either of the three months ended March 31, 2026 or 2025.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

NOTE 4 — EQUITY OFFERINGS AND RELATED EXPENSES

The table below illustrates the number of common stock shares the Company issued since Inception through various equity offerings and pursuant to the Company’s DRIP.The Company did not issue any common stock shares during the three months ended March 31, 2026.


																			Average
		Number of		Gross			Underwriting			Offering			Fees Covered			Net			Offering
Issuance of Common Stock		Shares		Proceeds⁽¹⁾⁽²⁾			Fees			Expenses			by Advisor			Proceeds⁽³⁾			Price
Year ended December 31, 2012		12,035,023		$	180,522,093		$	4,959,720		$	835,500		$	—		$	174,726,873		$	14.90
Year ended December 31, 2013		63,998			899,964			—			—			—			899,964			14.06
Year ended December 31, 2014		380,936			5,485,780			75,510			29,904			—			5,380,366			14.47
Year ended December 31, 2017		3,465,922			48,741,406			1,358,880			307,021			—			47,075,505			14.06
Year ended December 31, 2018		7,931			93,737			—			—			—			93,737			11.85
Year ended December 31, 2019		3,177,936			45,862,995			1,015,127			559,261			37,546			44,326,153			14.43
Year ended December 31, 2020		354,257			5,023,843			5,680			84,592			66,423			4,999,994			14.40
Year ended December 31, 2021		31,592			449,515			6,744			53,327			4,255			393,699			14.23
Year ended December 31, 2022		149,174			2,070,935			31,066			530,842			87,605			1,596,632			13.88
Year ended December 31, 2023		4,458,873			62,871,349			943,248			247,701			477,088			62,157,488			14.10
Year ended December 31, 2024		3,355,476			46,494,756			698,166			435,390			—			45,361,200			13.65
Year ended December 31, 2025		1,466,136			20,588,960			308,998			606,848			—			19,673,114			13.83
Total		28,947,254		$	419,105,333		$	9,403,139		$	3,690,386		$	672,917		$	406,684,725

(1)	Net of partial share transactions. Such share transactions impacted gross proceeds by ($94), $757, ($1,051), ($142), ($31) and ($29) in 2020, 2019, 2018, 2017, 2016 and 2015, respectively.

(2)

Includes common shares issued under the DRIP of $228,943 and $94,788 during the years ended December 31, 2020 and 2018, respectively; $0 for the three months ended March 31, 2026 and years ended December 31, 2025, 2024, 2023, 2022, 2021, 2019, 2017, 2016 and 2015, and $390,505, $938,385, and $113,000 for the years ended December 31, 2014, 2013, and 2012, respectively.

(3)

Total Net Proceeds per this equity table will differ from the Consolidated Statements of Assets and Liabilities as of March 31, 2026 and December 31, 2025 in the amount of $8,825,985, which represents a cumulative tax reclassification of stockholders’ equity in accordance with U.S. GAAP. This reclassification reduces paid-in capital and increases distributable earnings (increasing accumulated undistributed net investment income).

On November 16, 2021, the Company entered into an equity distribution agreement, as amended and restated on August 29, 2022 (the “2021 Equity Distribution Agreement”) with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2021 Equity Distribution Agreement, the Company was permitted to issue and sell, from time to time, up to $50,000,000 in aggregate offering price of shares of common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with its investment objective and strategies.

On August 11, 2023, the Company entered into an equity distribution agreement (the “2023 Equity Distribution Agreement”), with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2023 Equity Distribution Agreement, the Company was permitted to issue and sell, from time to time, up to $100,000,000 in aggregate offering price of shares of common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with its investment objective and strategies. Upon execution of the 2023 Equity Distribution Agreement, the Company no longer sold any shares under the 2021 Equity Distribution Agreement.

On September 9, 2025, the Company entered into an equity distribution agreement (the “2025 Equity Distribution Agreement” and together with the 2023 Equity Distribution Agreement and the 2021 Equity Distribution Agreement, the “Equity Distribution Agreements”) with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2025 Equity Distribution Agreement, the Company may issue and sell, from time to time, up to $100,000,000 in aggregate offering price of shares of common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with its investment objective and strategies.

Upon execution of the 2025 Equity Distribution Agreement, the Company no longer sold any shares under the 2023 Equity Distribution Agreement. The Company refers to its issuance and sale of shares under the Equity Distribution Agreements as the “ATM Program”.

The Company did not issue any shares during the three months ended March 31, 2026 under the ATM Program. The Company issued 656,085 shares during the three months ended March 31, 2025 under the ATM Program, for gross proceeds of $9,256,982 and underwriting fees and other expenses of $318,896. The average per share offering price of shares issued in the ATM Program during the three months ended March 31, 2025 was $14.11.

NOTE 5 — NET INCREASE IN NET ASSETS PER COMMON SHARE

The following information sets forth the computation of net increase in net assets resulting from operations per common share for the three months ended March 31, 2026 and 2025.


	For the three months ended
	March 31, 2026		March 31, 2025
Net increase in net assets resulting from operations	$	1,655,736	$	4,993,545
Weighted average common shares		28,947,254		27,602,612
Net increase in net assets resulting from operations per common share	$	0.06	$	0.18

NOTE 6 — PORTFOLIO INVESTMENTS AND FAIR VALUE

In accordance with the authoritative guidance on fair value measurements and disclosures under U.S. GAAP, the Company discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:

Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices in markets that are not considered to be active or financial instruments for which significant inputs are observable, either directly or indirectly; and

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

The level of an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by management.

The Board considers whether the volume and level of activity for the asset or liability have significantly decreased and identifies transactions that are not orderly in determining fair value. Accordingly, if the Board determines that either the volume and/or level of activity for an asset or liability has significantly decreased (from normal conditions for that asset or liability) or price quotations or observable inputs are not associated with orderly transactions, increased analysis and management judgment will be required to estimate fair value. Valuation techniques such as an income approach might be appropriate to supplement or replace a market approach in those circumstances.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

At March 31, 2026, the Company had investments in 116 portfolio companies. The composition of its investments as of March 31, 2026 was as follows:


	Cost		Fair Value
Senior Secured – First Lien⁽¹⁾	$	940,012,590	$	891,688,561
Senior Secured – Second Lien		12,115,000		12,025,000
Unsecured Debt		311,853		80,670
Equity		62,878,875		86,200,333
Total Investments	$	1,015,318,318	$	989,994,564

(1)

Includes unitranche investments, which accounted for 4.3% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.

At December 31, 2025, the Company had investments in 115 portfolio companies. The composition of its investments as of December 31, 2025 was as follows:


		Cost			Fair Value
Senior Secured – First Lien⁽¹⁾		$	951,615,061		$	908,669,800
Senior Secured – Second Lien			12,111,653			12,025,000
Unsecured Debt			318,425			123,789
Equity			62,094,547			86,804,806
Total Investments		$	1,026,139,686		$	1,007,623,395

(1)

Includes unitranche investments, which accounted for 4.0% of the Company’s portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. The Company’s unitranche loans will expose it to certain risk associated with second lien and subordinated loans to the extent it invests in the “last-out” tranche.

The Company’s investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying loan agreements. As of both March 31, 2026 and December 31, 2025, the Company had 76 of such investments with aggregate unfunded commitments of $47,501,619 and $53,380,015, respectively. The Company maintains sufficient liquidity (through cash on hand and available borrowings under the Credit Facility) to fund such unfunded commitments should the need arise.

The aggregate gross unrealized appreciation and depreciation and the aggregate cost and fair value of the Company’s portfolio company securities as of March 31, 2026 and December 31, 2025 were as follows:


	March 31, 2026		December 31, 2025
Aggregate cost of portfolio company securities	$	1,015,318,318	$	1,026,139,686
Gross unrealized appreciation of portfolio company securities		57,996,806		59,298,870
Gross unrealized depreciation of portfolio company securities		(82,964,383)		(77,718,103)
Gross unrealized (depreciation) appreciation on foreign currency translations of portfolio company securities		(17,731)		26,900
Gross unrealized depreciation on foreign currency translations of portfolio company securities		(338,446)		(123,958)
Aggregate fair value of portfolio company securities	$	989,994,564	$	1,007,623,395

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The fair values of the Company’s investments disaggregated into the three levels of the fair value hierarchy based upon the lowest level of significant input used in the valuation as of March 31, 2026 were as follows:


		Quoted Prices
		in Active
		Markets			Significant Other			Significant
		for Identical			Observable			Unobservable
		Securities			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Senior Secured – First Lien		$	—		$	—		$	891,688,561		$	891,688,561
Senior Secured – Second Lien			—			—			12,025,000			12,025,000
Unsecured Debt			—			—			80,670			80,670
Equity			—			—			86,200,333			86,200,333
Total Investments		$	—		$	—		$	989,994,564		$	989,994,564


		Quoted Prices
		in Active
		Markets			Significant Other			Significant
		for Identical			Observable			Unobservable
		Securities			Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Senior Secured – First Lien		$	—		$	—		$	908,669,800		$	908,669,800
Senior Secured – Second Lien			—			—			12,025,000			12,025,000
Unsecured Debt			—			—			123,789			123,789
Equity			—			—			86,804,806			86,804,806
Total Investments		$	—		$	—		$	1,007,623,395		$	1,007,623,395

The aggregate values of Level 3 portfolio investments changed during the three months ended March 31, 2026 as follows:


		Senior Secured			Senior Secured
		Loans-First			Loans-Second			Unsecured
		Lien			Lien			Debt			Equity			Total
Fair value at beginning of period		$	908,669,800		$	12,025,000		$	123,789		$	86,804,806		$	1,007,623,395
Purchases of investments			26,571,073			—			—			1,104,429			27,675,502
PIK interest			1,670,654			—			3,733			—			1,674,387
Sales and redemptions			(40,554,410)			—			(10,305)			(1,039,222)			(41,603,937)
Realized gains			—			—			—			719,121			719,121
Change in unrealized depreciation included in earnings⁽¹⁾			(5,125,399)			(3,347)			(35,479)			(1,384,121)			(6,548,346)
Change in unrealized depreciation on foreign currency included in earnings			(253,371)			—			(1,068)			(4,680)			(259,119)
Amortization of premium and accretion of discount, net			710,214			3,347			—			—			713,561
Fair value at end of period		$	891,688,561		$	12,025,000		$	80,670		$	86,200,333		$	989,994,564

(1)	Includes reversal of positions during the three months ended March 31, 2026.

There were no Level 3 transfers during the three months ended March 31, 2026.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The aggregate values of Level 3 portfolio investments changed during the year ended December 31, 2025 as follows:


		Senior Secured			Senior Secured
		Loans-First			Loans-Second			Unsecured
		Lien			Lien			Debt			Equity			Total
Fair value at beginning of period		$	856,096,255		$	11,948,850		$	6,612,493		$	78,840,090		$	953,497,688
Purchases of investments			186,821,022			—			9,454			8,904,074			195,734,550
PIK interest			5,188,864			—			561,606			5,802			5,756,272
Sales and redemptions			(121,906,047)			—			(7,021,819)			(12,566,138)			(141,494,004)
Realized (losses) gains			(5,651,690)			—			—			7,114,167			1,462,477
Change in unrealized (depreciation) appreciation included in earnings⁽¹⁾			(15,593,776)			38,229			(53,944)			4,502,560			(11,106,931)
Change in unrealized appreciation on foreign currency included in earnings			874,729			—			2,680			4,251			881,660
Amortization of premium and accretion of discount, net			2,840,443			37,921			13,319			—			2,891,683
Fair value at end of period		$	908,669,800		$	12,025,000		$	123,789		$	86,804,806		$	1,007,623,395

(1)	Includes reversal of positions during the year ended December 31, 2025.

There were no Level 3 transfers during the year ended December 31, 2025.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following is a summary of geographical concentration in the Company’s investment portfolio as of March 31, 2026:


					% of Total
					Investments at
	Cost		Fair Value		Fair Value
California	$	189,529,089	$	181,459,980	18.33	%
Texas		149,271,130		146,181,261	14.77	%
Florida		101,785,470		95,795,089	9.67	%
New York		59,269,009		59,775,558	6.04	%
Illinois		70,439,146		51,373,377	5.19	%
Pennsylvania		47,675,965		49,385,387	4.99	%
Colorado		41,648,469		40,498,263	4.09	%
Arizona		34,115,701		37,580,504	3.80	%
Ohio		25,964,453		27,444,553	2.77	%
Canada		35,005,849		35,005,230	3.54	%
North Carolina		31,311,773		32,106,220	3.24	%
Massachusetts		12,020,071		12,085,740	1.22	%
Iowa		22,424,245		22,504,749	2.27	%
New Jersey		19,808,993		19,644,077	1.98	%
Tennessee		28,392,241		26,319,065	2.66	%
Virginia		19,491,436		19,755,351	2.00	%
Georgia		5,648,249		16,863,235	1.70	%
District of Columbia		16,710,796		20,865,467	2.11	%
Michigan		16,160,287		16,350,670	1.65	%
Minnesota		11,749,250		12,309,055	1.24	%
Missouri		12,076,156		12,321,099	1.24	%
Idaho		9,266,572		9,300,380	0.94	%
Louisiana		9,137,351		9,521,865	0.96	%
Oregon		8,846,137		9,112,640	0.92	%
Maryland		7,445,883		7,423,950	0.75	%
Wisconsin		21,474,694		9,491,204	0.96	%
South Carolina		5,226,209		5,340,805	0.54	%
Washington		1,273,384		2,145,280	0.22	%
United Kingdom		2,150,310		2,034,510	0.21	%
Total Investments	$	1,015,318,318	$	989,994,564	100.00	%

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following is a summary of geographical concentration in the Company’s investment portfolio as of December 31, 2025:


								% of Total
								Investments
		Cost			Fair Value			at Fair Value
California		$	199,175,312		$	192,583,333		19.12	%
Texas			149,955,251			147,396,649		14.63	%
Florida			102,086,659			96,730,609		9.60	%
New York			59,320,592			59,952,294		5.95	%
Illinois			69,282,731			55,796,619		5.54	%
Pennsylvania			47,721,299			49,296,019		4.89	%
Colorado			41,413,399			39,386,741		3.91	%
Arizona			34,208,744			37,526,211		3.72	%
Ohio			35,249,934			36,769,186		3.65	%
Canada			36,116,171			36,140,789		3.59	%
North Carolina			31,163,913			32,456,489		3.22	%
Massachusetts			24,283,990			25,043,277		2.49	%
Iowa			22,351,338			22,467,248		2.23	%
New Jersey			19,768,069			19,924,612		1.98	%
Tennessee			20,495,678			18,827,946		1.87	%
Virginia			17,506,416			17,764,137		1.76	%
Georgia			5,876,197			17,168,351		1.70	%
District of Columbia			10,685,508			14,469,710		1.44	%
Michigan			12,060,200			12,255,578		1.22	%
Minnesota			11,769,582			11,916,373		1.18	%
Missouri			10,898,062			11,109,063		1.10	%
Idaho			9,479,007			9,517,417		0.94	%
Louisiana			9,153,384			9,297,784		0.92	%
Oregon			8,860,277			9,202,699		0.91	%
Maryland			7,530,655			7,549,733		0.75	%
Wisconsin			21,458,139			7,360,720		0.73	%
South Carolina			4,847,580			4,966,273		0.49	%
Washington			1,273,384			2,605,719		0.26	%
United Kingdom			2,148,215			2,141,816		0.21	%
Total Investments		$	1,026,139,686		$	1,007,623,395		100.00	%

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following is a summary of industry concentration in the Company’s investment portfolio as of March 31, 2026:


					% of Total
					Investments at
	Cost		Fair Value		Fair Value
Services: Business	$	279,930,309	$	279,261,336	28.21	%
Healthcare & Pharmaceuticals		97,090,678		97,046,413	9.80	%
High Tech Industries		83,330,629		86,899,397	8.78	%
Capital Equipment		61,564,601		65,891,385	6.66	%
Media: Advertising, Printing & Publishing		66,726,987		65,691,326	6.64	%
Beverage & Food		55,445,308		56,582,066	5.72	%
Consumer Goods: Non-Durable		61,572,096		52,712,306	5.32	%
Services: Consumer		42,752,415		40,715,215	4.11	%
Construction & Building		36,423,448		36,602,096	3.70	%
Consumer Goods: Durable		35,878,938		31,267,997	3.16	%
Aerospace & Defense		28,847,730		26,526,734	2.68	%
Environmental Industries		20,510,466		24,397,581	2.46	%
Chemicals, Plastics, & Rubber		19,723,334		19,622,459	1.98	%
Transportation & Logistics		16,690,858		16,769,097	1.69	%
Media: Broadcasting & Subscription		12,029,788		14,864,681	1.50	%
Retail		14,645,681		14,677,856	1.48	%
Energy: Oil & Gas		11,793,290		11,237,570	1.14	%
Hotel, Gaming, & Leisure		9,172,112		9,307,731	0.94	%
Wholesale		8,877,153		8,893,339	0.90	%
Containers, Packaging, & Glass		20,730,924		8,403,531	0.85	%
Media: Diversified & Production		7,523,041		7,472,354	0.75	%
FIRE: Real Estate		19,179,572		6,069,487	0.61	%
Finance		-		5,704,257	0.58	%
Education		4,878,960		3,378,350	0.34	%
Total Investments	$	1,015,318,318	$	989,994,564	100.00	%

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following is a summary of industry concentration in the Company’s investment portfolio as of December 31, 2025:


								% of Total
								Investments
		Cost			Fair Value			at Fair Value
Services: Business		$	265,116,204		$	266,803,107		26.48	%
High Tech Industries			103,212,518			106,937,496		10.61	%
Healthcare & Pharmaceuticals			92,736,458			92,182,392		9.15	%
Media: Advertising, Printing & Publishing			78,965,841			79,030,004		7.84	%
Capital Equipment			61,644,736			65,191,527		6.47	%
Beverage & Food			54,323,129			58,129,551		5.77	%
Consumer Goods: Non-Durable			61,701,885			53,502,252		5.31	%
Services: Consumer			42,793,668			40,569,003		4.03	%
Construction & Building			36,950,838			37,219,214		3.69	%
Consumer Goods: Durable			35,569,885			31,655,077		3.14
Aerospace & Defense			28,192,548			25,968,951		2.58	%
Environmental Industries			20,190,193			22,323,773		2.22	%
Chemicals, Plastics, & Rubber			20,054,202			19,792,281		1.96	%
Transportation & Logistics			16,593,938			16,791,026		1.67	%
Media: Broadcasting & Subscription			12,057,869			15,196,592		1.51	%
Retail			14,715,878			14,756,518		1.46	%
Energy: Oil & Gas			11,802,297			11,077,160		1.10	%
Hotel, Gaming, & Leisure			9,181,622			9,331,063		0.93	%
Wholesale			8,900,149			8,921,351		0.89	%
FIRE: Real Estate			18,419,200			8,379,604		0.83	%
Media: Diversified & Production			7,495,599			7,566,694		0.75	%
Containers, Packaging, & Glass			20,714,369			6,360,684		0.63	%
Finance			—			6,187,401		0.61	%
Education			4,806,660			3,750,674		0.37	%
Total Investments		$	1,026,139,686		$	1,007,623,395		100.00	%

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following provides quantitative information about the Company’s Level 3 fair value measurements as of March 31, 2026. During the three months ended March 31, 2026, investments valued at $38,546,162 changed valuation methods from transaction value to the income and market approaches due to the transaction price no longer being reflective of current market conditions.


Description:		Fair Value			Valuation Technique		Unobservable Inputs		Range (Weighted Average)
First lien debt		$	771,026,046		Income approach⁽¹⁾⁽²⁾		HY credit spreads		-1.65% to 14.75% (0.47%)
							Risk free rates		-0.85% to 1.46% (-0.05%)
		$	103,607,493		Market approach⁽¹⁾		EBITDA multiple		5.0x to 10.6x (7.8x)⁽³⁾
		$	17,055,022		Transaction value		Transaction price		N/A

Second lien debt		$	7,615,000		Income approach⁽¹⁾⁽²⁾		HY credit spreads		0.51% to 0.51% (0.51%)
							Risk free rates		0.15% to 0.15% (0.15%)
		$	4,410,000		Market approach⁽¹⁾		EBITDA multiple		6.5x to 6.5x (6.5x)⁽³⁾

Unsecured debt		$	80,670		Market approach⁽¹⁾		EBITDA multiple		6.9x to 9.5x (8.3x)⁽³⁾

Equity investments		$	71,024,059		Market approach⁽⁴⁾		EBITDA multiple		3.6x to 17.9x (10.1x)
							Revenue multiple		6.5x to 8.7x (7.4x)
		$	15,176,274		Transaction value		Transaction price		N/A

Total Long Term Level 3 Investments		$	989,994,564

(1)	Included but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach, which is based on discounting future cash flows using an appropriate market yield.

(2)

The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors could result in a significantly lower or higher fair value measurement. As an example, the “Range (Weighted Average)” for first lien debt investments in the table above indicates that the change in the HY credit spreads between the date a loan closed and the valuation date ranged from (1.65)% ( (165) basis points) to 14.75% (1,475 basis points). The average of all changes was 0.47% ( 47 basis points).

(3)	Median of LTM (last twelve months) EBITDA multiples of comparable companies.

(4)

The significant unobservable input used in the fair value measurement of the Company’s equity investments is the Multiple. Significant increases (decreases) in the Multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following provides quantitative information about Level 3 fair value measurements as of December 31, 2025.


Description:	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
First lien debt	$	788,539,535	Income approach⁽¹⁾⁽²⁾	HY credit spreads	-1.89% to 11.20% (-0.14%)
				Risk free rates	-2.03% to 1.73% (-0.33%)
	$	87821690	Market approach⁽¹⁾	EBITDA multiple	4.4x to 10.1x (6.8x)(3)
	$	32,308,575	Transaction value	Transaction price	N/A

Second lien debt	$	12,025,000	Income approach⁽¹⁾⁽²⁾	HY credit spreads	-0.17% to 2.35% (0.75%)
				Risk free rates	-0.16% to -0.10% (-0.14%)

Unsecured debt	$	10,380	Income approach⁽¹⁾⁽²⁾	HY credit spreads	-0.59% to -0.59% (-0.59%)
				Risk free rates	-0.31% to -0.31% (-0.31%)
	$	113,409	Market approach⁽¹⁾	EBITDA multiple	4.4x to 8.7x (8.5x)(3)

Equity investments	$	$66,907,041	Market approach⁽⁴⁾	EBITDA multiple	3.2x to 18.2x (10.2x)
				Revenue multiple	7.0x to 9.0x (7.7x)
	$	19,897,765	Transaction value	Transaction price	N/A

Total Long Term Level 3 Investments	$	1,007,623,395

(1)	Inclusive of but not limited to (a) the market approach, which is used to determine sufficient enterprise value, and (b) the income approach, which is based on discounting future cash flows using an appropriate market yield.

(2)

The Company calculates the price of the loan by discounting future cash flows, which include forecasted future BSBY, SOFR, or SONIA rates based on the published forward curve at the valuation date, using an appropriate yield calculated as of the valuation date. This yield is calculated based on the loan’s yield at the original investment and is adjusted as of the valuation date based on: changes in comparable credit spreads, changes in risk free interest rates (per swap rates), and changes in credit quality (via an estimated shadow rating). Significant movements in any of these factors would result in a significantly lower or higher fair value measurement. As an example, the “Range (Average)” for a first lien debt instruments in the table above indicates that the change in the HY spreads between the date a loan closed and the valuation date ranged from (1.89)% (189) basis points) to 11.20% (1,120 basis points). The average of all changes was (0.14)% ( (14) basis points).

(3)	Median of LTM (last twelve months) EBITDA multiples of comparable companies.

(4)

The primary significant unobservable input used in the fair value measurement of the Company’s equity investments is the Multiple. Significant increases (decreases) in the Multiple in isolation would result in a significantly higher (lower) fair value measurement. To determine the Multiple for the market approach, the Company considers current market trading and/or transaction multiple, portfolio company performance (financial ratios) relative to public and private peer companies and leverage levels, among other factors. Changes in one or more of these factors can have a similar directional change on other factors in determining the appropriate Multiple to use in the market approach.

NOTE 7 — COMMITMENTS AND CONTINGENCIES

The Company is currently not subject to any material legal proceedings, nor, to its knowledge, is any material legal proceeding threatened against it. From time to time, the Company may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of its rights under contracts with its portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon its business, financial condition or results of operations.

As of March 31, 2026, the Company had $47,157,985 in unfunded debt commitments and $343,634 in unfunded equity commitments to 76 existing portfolio companies. As of December 31, 2025, the Company had $52,991,159 in unfunded debt commitments and $388,856 in unfunded equity commitments to 77 existing portfolio companies. As of both March 31, 2026 and December 31, 2025, the Company did not record any fair value adjustments that resulted in any unrealized appreciated (depreciation) on these positions. As of

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

March 31, 2026, the Company had sufficient liquidity (through cash on hand and available borrowings under the Credit Facility) to fund such unfunded loan commitments should the need arise.

NOTE 8 — FINANCIAL HIGHLIGHTS


		For the three months ended

		March 31, 2026			March 31, 2025
		(unaudited)			(unaudited)
Per Share Data:⁽¹⁾
Net asset value at beginning of period		$	12.82		$	13.46
Net investment income			0.26			0.35
Change in unrealized (depreciation) appreciation on investments			(0.23)			0.04
Change in unrealized appreciation (depreciation) on foreign currency translation			—			—
Net realized gain (loss)			0.03			(0.21)
Gain (loss) on debt extinguishment			—			—
Benefit (provision) for taxes on net realized losses (gains) on investments			—			—
Benefit (provision) for taxes on net unrealized depreciation (appreciation) on investments			—			—
Total from operations		$	0.06		$	0.18
Sales load			—			(0.01)
Offering costs			—			(0.01)
Stockholder distributions from:
Net investment income			(0.34)			(0.40)
Net realized capital gains			—			—
Accretive effect of stock offerings (issuing shares above net asset value per share)			—			0.01
Other⁽⁶⁾			—			0.02
Net asset value at end of period		$	12.54		$	13.25
Per share market value at end of period		$	9.21		$	14.00
Total return based on market value⁽²⁾			(24.96)	%		4.60
Weighted average shares outstanding for the period			28,947,254			27,602,612
Ratio/Supplemental Data:⁽¹⁾
Net assets at end of period		$	362,995,521		$	372,766,182
Weighted average net assets		$	371,088,029		$	371,525,216
Annualized ratio of gross operating expenses to net assets⁽⁵⁾			17.27	%		17.91
Annualized ratio of net operating expenses to net assets⁽⁵⁾⁽⁶⁾			17.26	%		16.55
Annualized ratio of interest expense and other fees to net assets			9.67	%		9.02
Annualized ratio of net investment income before fee waiver to net assets⁽⁵⁾			8.18	%		9.33
Annualized ratio of net investment income to net assets⁽⁵⁾			8.19	%		10.69
Portfolio turnover⁽³⁾			2.77	%		1.54
Notes payable		$	125,000,000		$	100,000,000
Credit Facility payable		$	241,504,289		$	221,813,920
SBA-guaranteed debentures		$	260,000,000		$	308,750,000
Asset coverage ratio⁽⁴⁾			1.99	x		2.16

(1)	Based on weighted average shares of common stock outstanding for the period.

(2)	Total return on market value is based on the change in market price per share since the end of the prior year and assumes enrollment in the Company’s DRIP. The total returns are not annualized.

(3)	Portfolio turnover is calculated as the lesser of purchases or sales and repayments of investments divided by average portfolio balance and is not annualized.

(4)	Asset coverage ratio is equal to total assets less all liabilities and indebtedness not represented by senior securities over the aggregate amount of the senior securities. SBA-guaranteed debentures are excluded from the numerator and denominator.

(5)

These ratios include the impact of income tax benefit (provision) on net unrealized depreciation (appreciation) in Taxable Subsidiaries of $0 and $0 for the three months ended March 31, 2026 and 2025, respectively, which are not reflected in total operating expenses or net investment income. The impact of the tax benefit (provision) on net unrealized depreciation (appreciation) to weighted average net assets for the three months ended March 31, 2026 and 2025 was 0.00% and 0.00%, respectively.

(6)	Includes the impact of different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of the period end.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

(7)	Net of 0.01% and 1.36% from expenses reimbursed and fees waived by the Advisor for each respective period.

NOTE 9 — CREDIT FACILITY

The Company entered into a senior secured revolving credit agreement, dated as of October 10, 2017, with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders (as amended and restated on September 18, 2020 and subsequently amended on December 22, 2021, February 28, 2022, May 13, 2022, November 21, 2023, October 30, 2024 and September 11, 2025, the “Credit Facility”).

The Credit Facility provides for borrowings up to a maximum of $335,000,000 on a committed basis with an accordion feature that allows the Company to increase the aggregate commitments up to $365,000,000, subject to new or existing lenders agreeing to participate in the increase and other customary conditions.

Pursuant to its terms, the Credit Facility will bear interest, subject to the Company’s election, on a per annum basis equal to (i) term SOFR plus 2.25% (or 2.50% during certain periods in which the Company’s asset coverage ratio is equal to or below 1.90 to 1.00) with a 0.25% SOFR floor, or (ii) 1.25% (or 1.50% during certain periods in which the Company’s asset coverage ratio is equal to or below 1.90 to 1.00) plus an alternate base rate based on the highest of the prime rate (subject to a 3% floor), Federal Funds Rate plus 0.50% and one-month term SOFR plus 1.00%. The Company pays unused commitment fees of 0.50% per annum on the unused lender commitments under the Credit Facility. The commitment to fund the revolver expires on September 11, 2029, after which the Company may no longer borrow under the Credit Facility and must begin repaying principal equal to 1/12 of the aggregate amount outstanding under the Credit Facility each month. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on September 11, 2030.

The Company’s obligations to the lenders are secured by a first priority security interest in its portfolio of securities and cash not held at the SBIC subsidiaries, but excluding short-term investments. The Credit Facility contains certain covenants, including but not limited to: (i) maintaining a minimum liquidity test of at least $10,000,000, including cash, liquid investments and undrawn availability, (ii) maintaining an asset coverage ratio of at least 1.67 to 1.00, (iii) maintaining a minimum stockholder’s equity, and (iv) maintaining a minimum interest coverage ratio of at least 1.75 to 1.00. As of March 31, 2026 and December 31, 2025, the Company was in compliance with these covenants.

As of March 31, 2026 and December 31, 2025, $241,504,289 and $236,649,288, respectively, was outstanding under the Credit Facility. The carrying amount of the amount outstanding under the Credit Facility approximates its fair value. The fair value of the Credit Facility is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Credit Facility is estimated based upon market interest rates for the Company’s own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of March 31, 026, the Company has incurred costs of $8,944,051 in connection with the current Credit Facility, which are being amortized over the life of the facility. Additionally, $341,979 of costs from a prior credit facility will continue to be amortized over the life of the Credit Facility. As of March 31, 2026 and December 31, 2025, $3,227,630 and $3,481,928 of such prepaid loan structure fees and administration fees had yet to be amortized, respectively. These prepaid loan fees are presented on the Company’s Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

The following is a summary of the Credit Facility, net of prepaid loan structure fees:


		March 31, 2026		December 31, 2025
Credit Facility payable		$	241,504,289	$	236,649,288
Prepaid loan structure fees			(3,227,630)		(3,481,928)
Credit Facility payable, net of prepaid loan structure fees		$	238,276,659	$	233,167,360

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

Interest is paid monthly or quarterly in arrears. The following table summarizes the interest expense and amortized loan fees on the Credit Facility for the three months ended March 31, 2026 and 2025:


		For the three months ended
		March 31, 2026			March 31, 2025
Interest expense		$	3,743,733		$	3,889,157
Loan fee amortization			254,298			315,618
Total interest and financing expenses		$	3,998,031		$	4,204,775
Weighted average interest rate			6.3	%		7.2	%
Effective interest rate (including fee amortization)			6.7	%		7.7	%
Average debt outstanding		$	241,440,480		$	220,384,693
Cash paid for interest and unused fees		$	3,898,077		$	3,811,021

NOTE 10 — SBA-GUARANTEED DEBENTURES

Due to the SBIC subsidiaries’ status as licensed SBICs, the Company has the ability to issue debentures guaranteed by the SBA at favorable interest rates. Under the regulations applicable to SBIC funds, a single licensee can have outstanding debentures guaranteed by the SBA subject to a regulatory leverage limit, up to two times the amount of “regulatory capital,” as such term is defined by the SBA. SBA-guaranteed debentures have fixed interest rates that equal prevailing 10-year U.S. Treasury Note rates plus a market spread and have a maturity of ten years with interest payable semi-annually. The principal amount of the SBA-guaranteed debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. SBA-guaranteed debentures are also subject to certain fees payable by the SBICs at the time such debentures are drawn. SBA-guaranteed debentures drawn before October 1, 2019 incur upfront fees of 3.425%, which consists of a 1.00% commitment fee and a 2.425% issuance discount, which are amortized over the life of the SBA-guaranteed debentures. SBA-guaranteed debentures drawn after October 1, 2019 incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures. Once pooled, which occurs in March and September of each applicable year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10 year treasury rate plus a spread at each pooling date.

As of March 31, 2026 and December 31, 2025, the SBIC I subsidiary had $73,625,000 and $75,000,000 in regulatory capital and $85,000,000 and $124,000,000 of SBA-guaranteed debentures outstanding, respectively. During the three months ended ended March 31, 2026, the SBIC I subsidiary repaid $39,000,000 of SBA-guaranteed debentures that matured during the period and returned $1,375,000 of capital to the Company. As of both March 31, 2026 and December 31, 2025, the SBIC II subsidiary had $87,500,000 in regulatory capital and $175,000,000 of SBA-guaranteed debentures outstanding.

On August 12, 2014, the Company obtained exemptive relief from the SEC to permit it to exclude the debt of the SBIC subsidiaries guaranteed by the SBA from its asset coverage test under the 1940 Act. The exemptive relief provides the Company with increased flexibility under the asset coverage test by permitting it to borrow up to $325,000,000 more than it would otherwise be able to absent the receipt of this exemptive relief.

On a stand-alone basis, the SBIC subsidiaries held $457,244,131 and $492,710,365 in assets at March 31, 2026 and December 31, 2025, respectively, which accounted for approximately 45.7% and 47.3% of the Company’s total consolidated assets, respectively.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following tables summarize the SBIC subsidiaries’ aggregate SBA-guaranteed debentures outstanding as of March 31, 2026:


Issuance Date	Licensee		Maturity Date		Debenture Amount			Interest Rate		SBA Annual Charge
November 28, 2017	SBIC I subsidiary		March 1, 2028		$	25,000,000		3.19	%	0.22	%
April 27, 2018	SBIC I subsidiary		September 1, 2028			40,000,000		3.55	%	0.22	%
July 30, 2018	SBIC I subsidiary		September 1, 2028			17,500,000		3.55	%	0.22	%
September 25, 2018	SBIC I subsidiary		March 1, 2029			2,500,000		3.11	%	0.22	%
Total SBIC I subsidiary SBA-guaranteed Debentures					$	85,000,000


Issuance Date		Licensee		Maturity Date		Debenture Amount			Interest Rate		SBA Annual Charge
October 17, 2019		SBIC II subsidiary		March 1, 2030		$	6,000,000		2.08	%	0.09	%
November 15, 2019		SBIC II subsidiary		March 1, 2030			5,000,000		2.08	%	0.09	%
December 17, 2020		SBIC II subsidiary		March 1, 2031			9,000,000		1.67	%	0.09	%
December 17, 2020		SBIC II subsidiary		March 1, 2031			6,500,000		1.67	%	0.27	%
February 16, 2021		SBIC II subsidiary		March 1, 2031			13,500,000		1.67	%	0.27	%
February 26, 2021		SBIC II subsidiary		March 1, 2031			10,000,000		1.67	%	0.27	%
March 2, 2021		SBIC II subsidiary		March 1, 2031			10,000,000		1.67	%	0.27	%
April 21, 2021		SBIC II subsidiary		September 1, 2031			10,000,000		1.30	%	0.27	%
May 14, 2021		SBIC II subsidiary		September 1, 2031			6,700,000		1.30	%	0.27	%
May 28, 2021		SBIC II subsidiary		September 1, 2031			7,300,000		1.30	%	0.27	%
July 23, 2021		SBIC II subsidiary		September 1, 2031			16,000,000		1.30	%	0.27	%
February 25, 2022		SBIC II subsidiary		March 1, 2032			10,000,000		2.94	%	0.27	%
March 29, 2022		SBIC II subsidiary		September 1, 2032			10,000,000		4.26	%	0.27	%
April 1, 2022		SBIC II subsidiary		September 1, 2032			6,670,000		4.26	%	0.27	%
April 12, 2022		SBIC II subsidiary		September 1, 2032			6,665,000		4.26	%	0.27	%
April 21, 2022		SBIC II subsidiary		September 1, 2032			6,665,000		4.26	%	0.27	%
June 30, 2022		SBIC II subsidiary		September 1, 2032			3,600,000		4.26	%	0.27	%
July 28, 2022		SBIC II subsidiary		September 1, 2032			6,400,000		4.26	%	0.27	%
September 9, 2022		SBIC II subsidiary		March 1, 2033			6,000,000		5.17	%	0.27	%
November 9, 2022		SBIC II subsidiary		March 1, 2033			7,600,000		5.17	%	0.27	%
August 8, 2023		SBIC II subsidiary		September 1, 2033			9,120,000		5.69	%	0.27	%
September 19, 2023		SBIC II subsidiary		March 1, 2034			2,280,000		5.04	%	0.27	%
Total SBIC II subsidiary SBA-guaranteed Debentures						$	175,000,000
Total SBA-guaranteed Debentures						$	260,000,000

The fair values of the SBA-guaranteed debentures are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair values of the SBA-guaranteed debentures are estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of March 31, 2026 and December 31, 2025, the SBA-guaranteed debentures would be deemed to be Level 3, as defined in Note 6.

As of both March 31, 2026 and December 31, 2025, the Company has incurred $11,148,750 in financing costs related to the SBA-guaranteed debentures since receiving its licenses, which were recorded as prepaid loan fees. As of March 31, 2026 and December 31, 2025, $2,848,951 and $3,015,937 of prepaid financing costs had yet to be amortized, respectively. These prepaid loan fees are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

The following is a summary of the SBA-guaranteed debentures, net of prepaid loan fees:


	March 31, 2026		December 31, 2025
SBA-guaranteed Debentures payable	$	260,000,000	$	299,000,000
Prepaid loan fees		(2,848,951)		(3,015,937)
SBA-guaranteed Debentures, net of prepaid loan fees	$	257,151,049	$	295,984,063

The following table summarizes the interest expense and amortized fees on the SBA-guaranteed debentures for the three months ended March 31, 2026 and 2025:


		For the three months ended
		March 31, 2026			March 31, 2025
Interest expense		$	2,282,892		$	2,540,360
Debenture fee amortization			166,986			188,984
Total interest and financing expenses		$	2,449,878		$	2,729,344
Weighted average interest rate			3.3	%		3.3	%
Effective interest rate (including fee amortization)			3.5	%		3.5	%
Average debt outstanding		$	284,700,000		$	316,694,444
Cash paid for interest		$	4,803,285		$	5,188,661

NOTE 11 — NOTES

The Notes Payable are institutional, non-traded notes. The Notes Payable are carried at cost. As of March 31, 2026, the estimated fair value of the Notes Payable as prepared for disclosure purposes was $124,875,000. See Note 1 to the Consolidated Financial Statements for further discussion regarding the fair value measurements and hierarchy.

On January 14, 2021, the Company issued $100,000,000 in aggregate principal amount of 4.875% fixed-rate notes due 2026 (the “2026 Notes Payable”). On September 30, 2025, the Company prepaid $50,000,000 in aggregate principal of the 2026 Notes Payable. On December 31, 2025, the Company prepaid the remaining $50,000,000 in aggregate principal of the 2026 Notes Payable in full.

In connection with the issuance and maintenance of the 2026 Notes Payable, the Company incurred $2,327,835 of fees, which are being amortized over the term of the 2026 Notes Payable. As of both March 31, 2026 and December 31, 2025, $0 of prepaid financing costs had yet to be amortized.

The 2026 Notes Payable were redeemable in whole or in part at any time or from time to time at the Company’s option on or after December 31, 2025, at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2026 Notes Payable was payable semi-annually beginning September 30, 2021.

The Company used the net proceeds from the 2026 Notes Payable offering to fully redeem the Company’s 5.75% fixed-rate notes due September 15, 2022 (the “2022 Notes Payable”) and repay a portion of the amount outstanding under the Credit Facility.

On April 1, 2025 and September 25, 2025, the Company issued $75,000,000 and $50,000,000, respectively, in aggregate principal amount of 7.250% fixed-rate notes due 2030 (the “2030 Notes Payable” and together with the 2026 Notes Payable, the “Notes Payable”). The 2030 Notes Payable will mature on April 1, 2030 and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after October 1, 2029, at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2030 Notes Payable is payable semi-annually beginning October 1, 2025. As of March 31, 2026, the aggregate carrying amount of the 2030 Notes Payable was approximately $124,875,000.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

In connection with the issuance and maintenance of the 2030 Notes Payable, the Company incurred $2,746,803 of fees, which are being amortized over the term of the 2030 Notes Payable. As of March 31, 2026 and December 31, 2025, $2,241,085 and $2,328,591 of prepaid financing costs had yet to be amortized, respectively. These financing costs are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

The following table summarizes the interest expense and deferred financing costs on the 2026 Notes Payable for the three months ended March 31, 2026 and 2025:


		For the three months ended
		March 31, 2026			March 31, 2025
Interest expense		$	500		$	1,218,750
Deferred financing costs			—			110,150
Total interest and financing expenses		$	500		$	1,328,900
Weighted average interest rate			N/A	%		4.9	%
Effective interest rate (including fee amortization)			N/A	%		5.4	%
Average debt outstanding		$	—		$	100,000,000
Cash paid for interest		$	500		$	2,437,500

The following is a summary of the 2030 Notes Payable, net of deferred financing costs:


	March 31, 2026		December 31, 2025
2030 Notes Payable	$	125,000,000	$	125,000,000
Deferred financing costs		(2,187,895)		(2,272,580)
Premium on 2030 Notes Payable		587,719		618,145
Discount on 2030 Notes Payable		(640,909)		(674,156)
2030 Notes Payable, net of deferred financing costs and discount	$	122,758,915	$	122,671,409

The following table summarizes the interest expense and deferred financing costs on the 2030 Notes Payable for the three months ended March 31, 2026:


		For the three months ended
		March 31, 2026
Interest expense		$	2,265,625
Deferred financing costs			134,684
Discount amortization			33,248
Premium amortization			(30,425)
Total interest and financing expenses		$	2,403,132
Weighted average interest rate			7.4	%
Effective interest rate (including fee amortization)			7.8	%
Average debt outstanding		$	125,000,000
Cash paid for interest		$	—

The indenture and supplements thereto relating to the Notes Payable contain certain covenants, including but not limited to (i) a requirement that the Company comply with the asset coverage requirements of the 1940 Act or any successor provisions, and (ii) a requirement to provide financial information to the holders of the notes and the trustee under the indenture if the Company should no longer be subject to the reporting requirements under the Exchange Act. As of March 31, 2026, the Company was in compliance with these covenants.

Table of Contents

STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

NOTE 12 — SUBSEQUENT EVENTS

The Company’s management has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that require recognition or disclosure in these financial statements except for the following described below.

Investment Portfolio

The Company invested in the following portfolio companies subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 1, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
New Investment	April 3, 2026	VeloSource Purchaser, LLC	Locum tenens staffing agency	$	200,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	18,605	Equity
Add-On Investment	April 13, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	1,256,415	Senior Secured – First Lien
New Investment	April 13, 2026	Solomon AcquisitionCo, LLC	An innovative process automation and digital systems integrator	$	4,196,557	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	186,807	Equity
New Investment	April 27, 2026	Project Freeze**	Manufacturer of walk-in coolers, freezers, and refrigeration systems	$	4,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	324,074	Equity
Add-On Investment	April 28, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	502,566	Senior Secured – First Lien
Add-On Investment	April 28, 2026	Advanced Barrier Extrusions, LLC*	Manufacturer of flexible packaging	$	330,250	Senior Secured – First Lien

* Existing portfolio company

** The name of this portfolio company is not disclosed at this time due to confidentiality restrictions. The name of this portfolio company will be disclosed in the Company’s quarterly report for the quarter ending June 30, 2026.

The Company realized the following portfolio company investment subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Loss		Instrument Type
Full Repayment	April 17, 2026	Sales Benchmark Index, LLC	Provider of revenue growth management consulting services for private equity-owned and large enterprise clients	$	11,968,656	$	—	Senior Secured – First Lien
				$	443,820	$	—	Revolver Commitment
Full Realization				$	486,925		(178,805)	Equity
Full Repayment	April 24, 2026	Equine Network, LLC	Provider of equine competitions, content, products, and services	$	9,043,164	$	—	Senior Secured – First Lien
				$	97,900	$	—	Delayed Draw Term Loan Commitment
				$	166,667	$	—	Revolver Commitment
Full Repayment	April 30, 2026	Cerebro Buyer, LLC	Manufacturer of single-use electrodes for medical procedures	$	4,526,683	$	—	Senior Secured – First Lien
				$	376,902	$	—	Delayed Draw Term Loan Commitment

Credit Facility

The outstanding balance under the Credit Facility as of May 11, 2026 was $238,400,000.

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STELLUS CAPITAL INVESTMENT CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(unaudited)

Dividends Declared

On April 14, 2026, the Board declared a regular monthly dividend for each of April 2026, May 2026, and June 2026 as follows:


		Ex-Dividend		Record		Payment		Amount per
Declared		Date		Date		Date		Share
4/14/2026		4/30/2026		4/30/2026		5/15/2026		$	0.1133
4/14/2026		5/29/2026		5/29/2026		6/15/2026		$	0.1133
4/14/2026		6/30/2026		6/30/2026		7/15/2026		$	0.1133

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NOTE 13 — REPORTABLE SEGMENTS

An operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity’s chief operating decision maker (“CODM”) to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Company operates under one operating segment and reporting unit, investment management. The CODM is the Chief Executive Officer of the Company, who is responsible for determining the Company’s investment strategy, capital allocation, expense structure, and significant transactions impacting the Company. The operating expenses as disclosed on the consolidated statement of operations represent the significant expense categories that are provided to the CODM. Key metrics considered by the CODM in making decisions on the allocation of invested capital include, but are not limited to, net investment income and net increase in net assets resulting from operations that is reported on the Consolidated Statement of Operations, fair value of investments as disclosed on the Consolidated Schedule of Investments, as well as distributions made to the Company’s shareholders.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

Some of the statements in this quarterly report on Form 10-Q constitute forward-looking statements, which relate to future events or Stellus Capital Investment Corporation’s (“we”, “us”, “our” and the “Company”) future performance or financial condition. The forward-looking statements contained in this quarterly report on Form 10-Q involve risks and uncertainties, including statements as to:

●

our future operating results;

●

our business prospects and the prospects of our portfolio companies;

●

the effect of investments that we expect to make;

●

our contractual arrangements and relationships with third parties;

●

actual and potential conflicts of interest with Stellus Capital Management, LLC (“Stellus Capital” or the “Advisor”);

●

the dependence of our future success on the general economy and its effect on the industries in which we invest;

●

the impact of interest rate volatility on our business and our portfolio companies;

●

the ability of our portfolio companies to achieve their objectives;

●

the use of borrowed money to finance a portion of our investments;

●

the adequacy of our financing sources and working capital;

●

the timing of cash flows, if any, from the operations of our portfolio companies;

●

the ability of Stellus Capital to locate suitable investments for us and to monitor and administer our investments;

●

the ability of Stellus Capital to attract and retain highly talented professionals;

●

our ability to maintain our qualification as a regulated investment company (“RIC”) and as a business development company (“BDC”); and

●

the effect of future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to BDC or RICs.

Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words.

We have based the forward-looking statements included in this quarterly report on Form 10-Q on information available to us on the date of this quarterly report on Form 10-Q. Actual results could differ materially from those anticipated in our forward-looking statements, and future results could differ materially from historical performance. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law or U.S. Securities and Exchange Commission (“SEC”) rule or regulation. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

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Overview

We were organized as a Maryland corporation on May 18, 2012, and formally commenced operations on November 7, 2012. Our investment objective is to maximize the total return to our stockholders in the form of current income and capital appreciation through debt and related equity investments in lower middle-market companies.

We are an externally managed, non-diversified, closed-end investment company that has elected to be regulated as a BDC under the Investment Company Act of 1940, as amended (the “1940 Act”). Our investment activities are managed by our investment adviser, Stellus Capital.

As a BDC, we are required to comply with certain regulatory requirements. For instance, as a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets. Qualifying assets include investments in “eligible portfolio companies” (as defined in the 1940 Act). Under the relevant SEC rules, the term “eligible portfolio company” includes all private operating companies, operating companies whose securities are not listed on a national securities exchange, and certain public operating companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized and with their principal place of business in the United States.

We have elected, qualified, and intend to continue to qualify annually to be treated for tax purposes as a RIC under subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). To maintain our qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. As of March 31, 2026, we were in compliance with the RIC requirements. As a RIC, we generally will not have to pay corporate-level U.S. federal income taxes on any income we distribute to our stockholders.

Economic Developments

Economic activity has continued to accelerate across sectors and regions. Nonetheless, we have observed and continue to observe macroeconomic uncertainty as a result of various events and trends, including labor resource shortages, commodity inflation, fluctuating interest rates, economic sanctions in response to international conflicts and instances of geopolitical, economic and financial market instability in the United States and abroad, including as a result of the imposition of tariffs on the United States or against its trading partners, and the global conflict in the Middle East, including Iran. One or more of these factors may contribute to increased market volatility and may have long- and short-term effects in the United States and worldwide financial markets.

Portfolio Composition and Investment Activity

Portfolio Composition

We originate and invest primarily in privately held lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA) through first lien (including unitranche), second lien, and unsecured debt financing, often with a corresponding equity investment.

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As of March 31, 2026, we had $990.0 million (at fair value) invested in 116 portfolio companies. As of March 31, 2026, our portfolio included approximately 90% of first lien debt (including unitranche investments), 1% of second lien debt, 0% of unsecured debt and 9% of equity investments at fair value. The composition of our investments at cost and fair value as of March 31, 2026 was as follows:


		Cost			Fair Value
Senior Secured – First Lien⁽¹⁾		$	940,012,590		$	891,688,561
Senior Secured – Second Lien			12,115,000			12,025,000
Unsecured Debt			311,853			80,670
Equity			62,878,875			86,200,333
Total Investments at Fair Value		$	1,015,318,318		$	989,994,564

(1)

Includes unitranche investments, which account for 4.3% of our portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” tranche.

As of December 31, 2025, we had $1,007.6 million (at fair value) invested in 115 portfolio companies. As of December 31, 2025, our portfolio included approximately 90% of first lien debt (including unitranche investments), 1% of second lien debt, 0% of unsecured debt and 9% of equity investments at fair value. The composition of our investments at cost and fair value as of December 31, 2025 was as follows:


		Cost			Fair Value
Senior Secured – First Lien⁽¹⁾		$	951,615,061		$	908,669,800
Senior Secured – Second Lien			12,111,653			12,025,000
Unsecured Debt			318,425			123,789
Equity			62,094,547			86,804,806
Total Investments at Fair Value		$	1,026,139,686		$	1,007,623,395

(1)

Includes unitranche investments, which account for 4.0% of our portfolio at fair value. Unitranche structures may combine characteristics of first lien senior secured, as well as second lien and/or subordinated loans. Our unitranche loans may expose us to certain risk associated with second lien and subordinated loans to the extent we invest in the “last-out” tranche.

Our investment portfolio may contain loans that are in the form of lines of credit or revolving credit facilities, which require us to provide funding when requested by portfolio companies in accordance with the terms and conditions of the underlying loan agreements. As of March 31, 2026 and December 31, 2025, we had unfunded commitments of $48.2 million and $53.4 million, respectively, to provide financing to 76 and 77 portfolio companies, respectively. As of March 31, 2026, we had sufficient liquidity (through cash on hand and available borrowings under the Credit Facility (as defined below) to fund such unfunded commitments should the need arise.

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The following is a summary of geographical concentration in our investment portfolio as of March 31, 2026:


					% of Total
					Investments at
	Cost		Fair Value		Fair Value
California	$	189,529,089	$	181,459,980	18.33	%
Texas		149,271,130		146,181,261	14.77	%
Florida		101,785,470		95,795,089	9.67	%
New York		59,269,009		59,775,558	6.04	%
Illinois		70,439,146		51,373,377	5.19	%
Pennsylvania		47,675,965		49,385,387	4.99	%
Colorado		41,648,469		40,498,263	4.09	%
Arizona		34,115,701		37,580,504	3.80	%
Ohio		25,964,453		27,444,553	2.77	%
Canada		35,005,849		35,005,230	3.54	%
North Carolina		31,311,773		32,106,220	3.24	%
Massachusetts		12,020,071		12,085,740	1.22	%
Iowa		22,424,245		22,504,749	2.27	%
New Jersey		19,808,993		19,644,077	1.98	%
Tennessee		28,392,241		26,319,065	2.66	%
Virginia		19,491,436		19,755,351	2.00	%
Georgia		5,648,249		16,863,235	1.70	%
District of Columbia		16,710,796		20,865,467	2.11	%
Michigan		16,160,287		16,350,670	1.65	%
Minnesota		11,749,250		12,309,055	1.24	%
Missouri		12,076,156		12,321,099	1.24	%
Idaho		9,266,572		9,300,380	0.94	%
Louisiana		9,137,351		9,521,865	0.96	%
Oregon		8,846,137		9,112,640	0.92	%
Maryland		7,445,883		7,423,950	0.75	%
Wisconsin		21,474,694		9,491,204	0.96	%
South Carolina		5,226,209		5,340,805	0.54	%
Washington		1,273,384		2,145,280	0.22	%
United Kingdom		2,150,310		2,034,510	0.21	%
Total Investments at Fair Value	$	1,015,318,318	$	989,994,564	100.00	%

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The following is a summary of geographical concentration of in investment portfolio as of December 31, 2025:


								% of Total
								Investments at
		Cost			Fair Value			Fair Value
California		$	199,175,312		$	192,583,333		19.12	%
Texas			149,955,251			147,396,649		14.63	%
Florida			102,086,659			96,730,609		9.60	%
New York			59,320,592			59,952,294		5.95	%
Illinois			69,282,731			55,796,619		5.54	%
Pennsylvania			47,721,299			49,296,019		4.89	%
Colorado			41,413,399			39,386,741		3.91	%
Arizona			34,208,744			37,526,211		3.72	%
Ohio			35,249,934			36,769,186		3.65	%
Canada			36,116,171			36,140,789		3.59	%
North Carolina			31,163,913			32,456,489		3.22	%
Massachusetts			24,283,990			25,043,277		2.49	%
Iowa			22,351,338			22,467,248		2.23	%
New Jersey			19,768,069			19,924,612		1.98	%
Tennessee			20,495,678			18,827,946		1.87	%
Virginia			17,506,416			17,764,137		1.76	%
Georgia			5,876,197			17,168,351		1.70	%
District of Columbia			10,685,508			14,469,710		1.44	%
Michigan			12,060,200			12,255,578		1.22	%
Minnesota			11,769,582			11,916,373		1.18	%
Missouri			10,898,062			11,109,063		1.10	%
Idaho			9,479,007			9,517,417		0.94	%
Louisiana			9,153,384			9,297,784		0.92	%
Oregon			8,860,277			9,202,699		0.91	%
Maryland			7,530,655			7,549,733		0.75	%
Wisconsin			21,458,139			7,360,720		0.73	%
South Carolina			4,847,580			4,966,273		0.49	%
Washington			1,273,384			2,605,719		0.26	%
United Kingdom			2,148,215			2,141,816		0.21	%
		$	1,026,139,686		$	1,007,623,395		100.00	%

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The following is a summary of industry concentration in our investment portfolio as of March 31, 2026:


					% of Total
					Investments at
	Cost		Fair Value		Fair Value
Services: Business	$	279,930,309	$	279,261,336	28.21	%
Healthcare & Pharmaceuticals		97,090,678		97,046,413	9.80	%
High Tech Industries		83,330,629		86,899,397	8.78	%
Capital Equipment		61,564,601		65,891,385	6.66	%
Media: Advertising, Printing & Publishing		66,726,987		65,691,326	6.64	%
Beverage & Food		55,445,308		56,582,066	5.72	%
Consumer Goods: Non-Durable		61,572,096		52,712,306	5.32	%
Services: Consumer		42,752,415		40,715,215	4.11	%
Construction & Building		36,423,448		36,602,096	3.70	%
Consumer Goods: Durable		35,878,938		31,267,997	3.16	%
Aerospace & Defense		28,847,730		26,526,734	2.68	%
Environmental Industries		20,510,466		24,397,581	2.46	%
Chemicals, Plastics, & Rubber		19,723,334		19,622,459	1.98	%
Transportation & Logistics		16,690,858		16,769,097	1.69	%
Media: Broadcasting & Subscription		12,029,788		14,864,681	1.50	%
Retail		14,645,681		14,677,856	1.48	%
Energy: Oil & Gas		11,793,290		11,237,570	1.14	%
Hotel, Gaming, & Leisure		9,172,112		9,307,731	0.94	%
Wholesale		8,877,153		8,893,339	0.90	%
Containers, Packaging, & Glass		20,730,924		8,403,531	0.85	%
Media: Diversified & Production		7,523,041		7,472,354	0.75	%
FIRE: Real Estate		19,179,572		6,069,487	0.61	%
Finance		—		5,704,257	0.58	%
Education		4,878,960		3,378,350	0.34	%
Total	$	1,015,318,318	$	989,994,564	100.00	%

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The following is a summary of industry concentration in our investment portfolio as of December 31, 2025:


								% of Total
								Investments at
		Cost			Fair Value			Fair Value
Services: Business		$	265,116,204		$	266,803,107		26.48	%
High Tech Industries			103,212,518			106,937,496		10.61	%
Healthcare & Pharmaceuticals			92,736,458			92,182,392		9.15	%
Media: Advertising, Printing & Publishing			78,965,841			79,030,004		7.84	%
Capital Equipment			61,644,736			65,191,527		6.47	%
Beverage & Food			54,323,129			58,129,551		5.77	%
Consumer Goods: Non-Durable			61,701,885			53,502,252		5.31	%
Services: Consumer			42,793,668			40,569,003		4.03	%
Construction & Building			36,950,838			37,219,214		3.69	%
Consumer Goods: Durable			35,569,885			31,655,077		3.14	%
Aerospace & Defense			28,192,548			25,968,951		2.58	%
Environmental Industries			20,190,193			22,323,773		2.22	%
Chemicals, Plastics, & Rubber			20,054,202			19,792,281		1.96	%
Transportation & Logistics			16,593,938			16,791,026		1.67	%
Media: Broadcasting & Subscription			12,057,869			15,196,592		1.51	%
Retail			14,715,878			14,756,518		1.46	%
Energy: Oil & Gas			11,802,297			11,077,160		1.10	%
Hotel, Gaming, & Leisure			9,181,622			9,331,063		0.93	%
Wholesale			8,900,149			8,921,351		0.89	%
FIRE: Real Estate			18,419,200			8,379,604		0.83	%
Media: Diversified & Production			7,495,599			7,566,694		0.75	%
Containers, Packaging, & Glass			20,714,369			6,360,684		0.63	%
Finance			—			6,187,401		0.61	%
Education			4,806,660			3,750,674		0.37	%
		$	1,026,139,686		$	1,007,623,395		100.00	%

At March 31, 2026, our average portfolio company investment at amortized cost and fair value was approximately $8.8 million and $8.5 million, respectively, and our largest portfolio company investment at amortized cost and fair value was approximately $28.0 million and $18.5 million, respectively. At December 31, 2025, our average portfolio company investment at amortized cost and fair value was approximately $8.9 million and $8.7 million, respectively, and our largest portfolio company investment at amortized cost and fair value was approximately $26.1 million and $19.2 million, respectively.

At March 31, 2026 and December 31, 2025, 91.5% and 91.6% of our debt investments bore interest based on floating rates (subject to interest rate floors), such as the Secured Overnight Financing Rate (“SOFR”), respectively, and 8.5% and 8.4% bore interest at fixed rates, respectively.

The weighted average yield on all of our debt investments as of March 31, 2026 and December 31, 2025 was approximately 9.0% and 9.3%, respectively. The weighted average yield on all of our investments, including non-income producing equity positions, as of March 31, 2026 and December 31, 2025 was approximately 8.5% and 8.7%, respectively. The weighted average yield was computed using the effective interest rates for all of our debt investments, including accretion of original issue discount. The weighted average yield of our debt investments is not the same as a return on investment for our stockholders, but rather relates to a portion of our investment portfolio and is calculated before the payment of all of our subsidiaries’ fees and expenses.

As of March 31, 2026 and December 31, 2025, we had cash and cash equivalents of $3.4 million and $25.1 million, respectively.

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Investment Activity

During the three months ended March 31, 2026, we made an aggregate of $27.7 million of investments in three new portfolio companies and nine existing portfolio companies. During the three months ended March 31, 2026, we received an aggregate of $41.7 million in proceeds from repayments of our investments.

During the three months ended March 31, 2025, we made an aggregate of $55.4 million of investments in seven new portfolio companies and five existing portfolio companies. During the three months ended March 31, 2025, we received an aggregate of $15.0 million in proceeds from repayments of our investments.

Our level of investment activity can vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to lower middle-market companies, the level of merger and acquisition activity in that sector, the general economic environment and the competitive environment for the types of investments we make.

Asset Quality

In addition to various risk management and monitoring tools, Stellus Capital uses an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in our portfolio. This investment rating system uses a five-level numeric scale. The following is a description of the conditions associated with each investment category:

●

Investment Category 1 is used for investments that are performing above expectations, and whose risks remain favorable compared to the expected risk at the time of the original investment.

●

Investment Category 2 is used for investments that are performing within expectations and whose risks remain neutral compared to the expected risk at the time of the original investment. All new loans are initially rated 2.

●

Investment Category 3 is used for investments that are performing below expectations and that require closer monitoring, but where no loss of return or principal is expected. Portfolio companies with a rating of 3 may be out of compliance with financial covenants.

●

Investment Category 4 is used for investments that are performing substantially below expectations and whose risks have increased substantially since the original investment. These investments are often in work out. Investments with a rating of 4 are those for which some loss of return but no loss of principal is expected.

●

Investment Category 5 is used for investments that are performing substantially below expectations and whose risks have increased substantially since the original investment. These investments are almost always in work out. Investments with a rating of 5 are those for which some loss of return and principal is expected.


		As of March 31, 2026							As of December 31, 2025
		(dollars in millions)							(dollars in millions)
							Number of							Number of
					% of Total		Portfolio					% of Total		Portfolio
Investment Category		Fair Value			Portfolio		Companies⁽¹⁾		Fair Value			Portfolio		Companies⁽¹⁾
1		$	199.7		20	%	27		$	227.3		23	%	27
2			597.4		61	%	64			590.2		59	%	63
3			141.8		14	%	16			148.4		14	%	17
4			43.0		4	%	4			35.1		3	%	3
5			8.1		1	%	8			6.6		1	%	7
Total		$	990.0		100	%	119		$	1,007.6		100	%	117

(1)	Three portfolio company appears in two categories as of March 31, 2026 and two portfolio company appears in two categories December 31, 2025.

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Loans and Debt Securities on Non-Accrual Status

We will not accrue interest on loans and debt securities if we have reason to doubt our ability to collect such interest. As of March 31, 2026, we had loans to six portfolio companies that were on non-accrual status, which represented approximately 9.2% of our total investments at cost and 5.2% at fair value. As of December 31, 2025, we had loans to five portfolio companies that were on non-accrual status, which represented approximately 7.5% of our total investments at cost and 4.1% at fair value. As of March 31, 2026 and December 31, 2025, $13.2 million and $11.2 million of income from investments on non-accrual had not been accrued, respectively.

Results of Operations

An important measure of our financial performance is net increase (decrease) in net assets resulting from operations, which includes net investment income (loss), net realized gain (loss) and net unrealized appreciation (depreciation). Net investment income (loss) is the difference between our income from interest, dividends, fees and other investment income and our operating expenses, including interest on borrowed funds. Net realized gain (loss) on investments is the difference between the proceeds received from dispositions of portfolio investments and their amortized cost. Net unrealized appreciation (depreciation) on investments is the net change in the fair value of our investment portfolio.

Comparison of the Three Months Ended March 31, 2026 and 2025

Revenues

We generate revenue in the form of interest income on debt investments and capital gains and distributions, if any, on equity securities that we may acquire in portfolio companies. Our debt investments typically have a term of five to seven years and bear interest primarily at floating rates. Interest on our debt investments is generally payable quarterly. Payments of principal on our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments may pay interest in-kind, or PIK interest. Any outstanding principal amount of our debt securities and any accrued but unpaid interest will generally become due at the maturity date. The level of interest income we receive is directly related to the balance of interest-bearing investments multiplied by the weighted average yield of our investments. We expect that the total dollar amount of interest and any dividend income that we earn will increase as the size of our investment portfolio increases. In addition, we may generate revenue in the form of prepayment fees, commitment, loan origination, structuring or due diligence fees, fees for providing significant managerial assistance and consulting fees.

The following shows the breakdown of investment income for the three months ended March 31, 2026 and 2025 (in millions).


		For the three months ended
		March 31, 2026			March 31, 2025
Interest income⁽¹⁾		$	20.2		$	23.1
PIK interest			1.7			1.0
Miscellaneous fees⁽¹⁾			1.4			0.9
Total		$	23.3		$	25.0

(1)	For the three months ended March 31, 2026 and 2025, we recognized $0.6 million and $0.1 million, respectively, of non-recurring income related to early repayments and amendments to specific loan positions.

The decrease in investment income for the three months ended March 31, 2026 was due primarily to a decrease in prevailing market rates on our loans, typically in reference to the SOFR.

Expenses

Our primary operating expenses include the payment of fees to Stellus Capital under the Investment Advisory Agreement, our allocable portion of overhead expenses under the Administration Agreement and other operating costs described below. We bear all other out-of-pocket costs and expenses of our operations and transactions, which may include:

●

organization and offering costs;

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●

valuing our assets and calculating our net asset value (including the cost and expenses of any independent valuation firm);

●

fees and expenses payable to third parties, including agents, consultants or other advisors, in monitoring financial and legal affairs for us and in monitoring our investments and performing due diligence on our prospective portfolio companies or otherwise relating to, or associated with, evaluating and making investments;

●

interest payable on debt, if any, incurred to finance our investments and expenses related to unsuccessful portfolio acquisition efforts;

●

offerings of our commons stock and other securities;

●

base management and incentive fees;

●

administration fees and expenses, if any, payable under the administration agreement (including our allocable portion of Stellus Capital’s overhead in performing its obligations under the administration agreement, including rent and the allocable portion of the cost of our chief financial officer and chief compliance officer and their respective staffs);

●

transfer agent and custodial fees and expenses;

●

U.S. federal and state registration fees;

●

all costs of registration and listing our securities on any securities exchange;

●

U.S. federal, state and local taxes;

●

independent directors’ fees and expenses;

●

costs of preparing and filing reports or other documents required by the SEC or other regulators;

●

costs of any reports, proxy statements or other notices to stockholders, including printing costs;

●

costs and fees associated with any fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premiums;

●

direct costs and expenses of administration and operation, including printing, mailing, long distance telephone, copying, secretarial and other staff, independent auditors and outside legal costs;

●

proxy voting expenses; and

●

all other expenses incurred by us or Stellus Capital in connection with administering our business.

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The following shows the breakdown of operating expenses for the three months ended March 31, 2026 and 2025 (in millions).


	For the three months ended
	March 31, 2026			March 31, 2025
Operating Expenses
Management fees	$	4.4		$	4.1
Valuation fees		0.2			0.2
Administrative services expenses		0.6			0.4
Income incentive fees		0.1			2.1
Professional fees		0.8			0.4
Directors’ fees		0.1			0.1
Insurance expense		0.1			0.1
Interest expense and other fees		8.9			8.3
Income tax expense		0.4			0.5
Other general and administrative expenses		0.2			0.2
Total Operating Expenses	$	15.8		$	16.4
Income incentive fee waiver		—			(1.2)
Total Operating Expenses, net of fee waivers	$	15.8		$	15.2

The decrease in gross operating expenses for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was due to the decrease in income incentive fees, offset by higher management fees and interest expense due to overall portfolio growth, and increased professional fees. The increase in net operating expenses for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, was due to the decrease in income incentive fees waived.

Net Investment Income

For the three months ended March 31, 2026, net investment income was $7.5 million, or $0.26 per common share (based on 28,947,254 weighted average shares outstanding for the three months ended March 31, 2026).

For the three months ended March 31, 2025, net investment income was $9.8 million, or $0.35 per common share (based on 27,602,612 weighted average shares outstanding for the three months ended March 31, 2025).

Net investment income for the three months ended March 31, 2026 decreased compared to the three months ended March 31, 2025 as a result of decreased interest income as explained in the “Revenues” section above and higher operating expenses as explained in the “Expenses” section above.

Net Realized Gains and Losses

We measure net realized gains or losses by the difference between the net proceeds from the repayment, sale or other disposition and the amortized cost basis of the investment, using the specific identification method, without regard to unrealized appreciation or depreciation previously recognized.

Proceeds from repayments of investments and amortization of certain other investments for the three months ended March 31, 2026 totaled $41.7 million and net realized gains totaled $0.8 million.

Proceeds from repayments of investments and amortization of certain other investments for the three months ended March 31, 2025 totaled $15.0 million and net realized losses totaled ($6.0) million.

Net Change in Unrealized Appreciation (Depreciation) of Investments

Net change in unrealized (depreciation) appreciation primarily reflects the change in portfolio investment values during the reporting period, including the reversal of previously recorded appreciation or depreciation when gains or losses are realized.

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Net change in unrealized (depreciation) appreciation on investments and cash equivalents for the three months ended March 31, 2026 and 2025 totaled ($6.5) million and $1.2 million, respectively.

The change in unrealized (depreciation) appreciation over the respective periods was primarily due to company-specific write-downs, partially offset by realizations on investments previously written up.

Provision for Taxes on Unrealized Investments

We have direct wholly owned subsidiaries that have elected to be taxable entities (the “Taxable Subsidiaries”). The Taxable Subsidiaries permit us to hold equity investments in portfolio companies, which are “pass through” entities for U.S. federal income tax purposes and continue to comply with the “source income” requirements contained in RIC tax provisions of the Code. The Taxable Subsidiaries are not consolidated with us for U.S. federal income tax purposes and may generate U.S. federal income tax expense, benefit, and the related tax assets and liabilities, as a result of their ownership of certain portfolio investments. The U.S. federal income tax expense, or benefit, if any, and related tax assets and liabilities are reflected in our consolidated financial statements. For both the three months ended March 31, 2026 and 2025, we recognized a provision for income tax on unrealized investments of $0.0 million for the Taxable Subsidiaries. As of both March 31, 2026 and December 31, 2025, there was $0.0 million of deferred tax liabilities on the Consolidated Statements of Assets and Liabilities.

Net Increase in Net Assets Resulting from Operations

For the three months ended March 31, 2026, net increase in net assets resulting from operations totaled $1.7 million, or $0.06 per common share (based on 28,947,254 weighted average shares outstanding for the three months ended March 31, 2026).

For the three months ended March 31, 2025, net increase in net assets resulting from operations totaled $5.0 million, or $0.18 per common share (based on 27,602,612 weighted average shares outstanding for the three months ended March 31, 2025).

The net decrease in net assets between the respective periods was due to higher unrealized depreciation, partially offset by higher realized gains in the current year.

Financial Condition, Liquidity and Capital Resources

Cash Flows from Operating and Financing Activities

Our operating activities provided net cash of $22.8 million for the three months ended March 31, 2026, primarily in connection with sales and repayments of portfolio investments, partially offset by the purchase of portfolio investments. Our financing activities for the three months ended March 31, 2026 used cash of $44.5 million, primarily from repayments of SBA-guaranteed debentures.

Our operating activities used net cash of $36.9 million for the three months ended March 31, 2025, primarily in connection with the purchase of portfolio investments, partially offset by and sales and repayments of portfolio investments. Our financing activities for the three months ended March 31, 2025 provided cash of $27.8 million, primarily from proceeds from our ATM Program and net borrowings on our Credit Facility, partially offset by repayments of SBA-guaranteed debentures.

Liquidity and Capital Resources

Our liquidity and capital resources are derived from the Credit Facility, Notes Payable (as defined below), SBA-guaranteed debentures and cash flows from operations, including investment sales and repayments, the ATM Program (as defined below), and income earned. Our primary use of funds from operations includes investments in portfolio companies and other operating expenses we incur, as well as the payment of dividends to the holders of our common stock. We used, and expect to continue to use, these capital resources as well as proceeds from turnover within our portfolio and from public and private offerings of securities to finance our investment activities.

Although we expect to fund the growth of our investment portfolio through the net proceeds from future public and private equity offerings and issuances of senior securities or future borrowings to the extent permitted by the 1940 Act, our plans to raise capital may not be successful. In this regard, if our common stock trades at a price below our then-current net asset value per share, we may be limited in

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our ability to raise equity capital given that we cannot sell our common stock at a price below net asset value per share unless our stockholders approve such a sale and our Board makes certain determinations in connection therewith. A proposal, approved by our stockholders at our 2025 annual stockholders meeting, authorizes us to sell up to 25% of our outstanding common shares at a price equal to or below the then-current net asset value per share in one or more offerings. This authorization will expire on the earlier of (i) June 17, 2026, the one-year anniversary of our 2025 annual stockholders meeting, and (ii) the date of our 2026 annual stockholder meeting. We would need similar future approval from our stockholders to issue shares below the then-current net asset value per share any time after the expiration of the current approval. In addition, we intend to distribute between 90% and 100% of our taxable income to our stockholders in order to satisfy the requirements applicable to RICs under subchapter M of the Code. Consequently, we may not have the funds available to allow us to fund new investments, to make additional investments in our portfolio companies, to fund our unfunded commitments to portfolio companies or to repay borrowings. In addition, the illiquidity of our portfolio investments may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their recorded value.

Under the provisions of the 1940 Act, we are permitted, as a BDC that has satisfied certain requirements, to issue senior securities in amounts such that our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of our gross assets, less all liabilities and indebtedness not represented by senior securities after each issuance of senior securities. As of March 31, 2026 and December 31, 2025, our asset coverage ratio was 199% and 203%, respectively. The amount of leverage that we employ will depend on our assessment of market conditions and other factors at the time of any proposed borrowing, such as the maturity, covenant package and rate structure of the proposed borrowings, our ability to raise funds through the issuance of shares of our common stock and the risks of such borrowings within the context of our investment outlook. Ultimately, we only intend to use leverage if the expected returns from borrowing to make investments will exceed the cost of such borrowing. As of March 31, 2026 and December 31, 2025, we had cash and cash equivalents of $3.4 million and $25.1 million, respectively.

Credit Facility

We have entered into a senior secured revolving credit agreement, dated as of October 10, 2017, with Zions Bancorporation, N.A., dba Amegy Bank and various other lenders thereto (as amended and restated on September 18, 2020 and amended on December 21, 2021, February 28, 2022, May 13, 2022, November 21, 2023, October 30, 2024 and September 11, 2025.

The Credit Facility provides for borrowings up to a maximum of $315.0 million on a committed basis with an accordion feature that allows us to increase the aggregate commitments up to $350.0 million, subject to new or existing lenders agreeing to participate in the increase and other customary conditions.

Pursuant to its terms, the Credit Facility will bear interest, subject to our election, on a per annum basis equal to (i) term SOFR plus 2.25% (or 2.50% during certain periods in which our asset coverage ratio is equal to or below 1.90 to 1.00) with a 0.25% SOFR floor, or (ii) 1.25% (or 1.50% during certain periods in which our asset coverage ratio is equal to or below 1.90 to 1.00) plus an alternate base rate based on the highest of the prime rate (subject to a 3% floor), Federal Funds Rate plus 0.50% and one-month term SOFR plus 1.00%. We pay unused commitment fees of 0.50% per annum on the unused lender commitments under the Credit Facility. The commitment to fund the revolver expires on September 11, 2029, after which we may no longer borrow under the Credit Facility and must begin repaying principal equal to 1/12 of the aggregate amount outstanding under the Credit Facility each month. Any amounts borrowed under the Credit Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on September 11, 2030. Our obligations to the lenders are secured by a first priority security interest in our portfolio of securities and cash not held at the SBIC subsidiaries, but excluding short-term investments. The Credit Facility contains certain covenants, including but not limited to: (i) maintaining a minimum liquidity test of at least $10.0 million, including cash, liquid investments and undrawn availability, (ii) maintaining an asset coverage ratio of at least 1.67 to 1.00, (iii) maintaining a minimum stockholder’s equity, and (iv) maintaining a minimum interest coverage ratio of at least 1.75 to 1.00. As of March 31, 2026 and December 31, 2025, we were in compliance with these covenants.

As of March 31, 2026 and December 31, 2025, $241.5 million and $236.6 million, respectively, was outstanding under the Credit Facility. The carrying amount of the amount outstanding under the Credit Facility approximates its fair value. The fair value of the Credit Facility is determined in accordance with Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Credit Facility is estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. We incurred costs of $8.9 million in connection with the current Credit Facility, which are being amortized over the life of the facility.

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Additionally, $0.3 million of costs from a prior credit facility will continue to be amortized over the remaining life of the Credit Facility. As of March 31, 2026 and December 31, 2025, $3.2 million and $3.5 million of such prepaid loan structure fees and administration fees had yet to be amortized, respectively. These prepaid loan fees are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

Interest is paid quarterly in arrears. The following table summarizes the interest expense and amortized loan fees on the Credit Facility for the three months ended March 31, 2026 and 2025 (dollars in millions):


	For the three months ended
	March 31, 2026			March 31, 2025
Interest expense	$	3.7		$	3.9
Loan fee amortization		0.3			0.3
Total interest and financing expenses	$	4.0		$	4.2
Weighted average interest rate		6.3	%		7.2	%
Effective interest rate (including fee amortization)		6.7	%		7.7	%
Average debt outstanding	$	241.4		$	220.4
Cash paid for interest and unused fees	$	3.9		$	3.8

SBA-Guaranteed Debentures

Due to the SBIC subsidiaries’ status as licensed SBICs, we can issue debentures guaranteed by the SBA at favorable interest rates. Under the regulations applicable to SBICs, a single licensee can have outstanding SBA-guaranteed debentures, subject to a regulatory leverage limit, up to two times the amount of regulatory capital. As of March 31, 2026 and December 31, 2025, the SBIC I subsidiary had 73.6 million and $75.0 million in “regulatory capital,” respectively, as such term is defined by the SBA, and $85.0 million and $124.0 million of SBA-guaranteed debentures outstanding, respectively. During the three months ended March 31, 2026, the SBIC I subsidiary repaid $39.0 million of SBA-guaranteed debentures that matured during the period. As of both March 31, 2026 and December 31, 2025, the SBIC II subsidiary had $87.5 million in regulatory capital and $175.0 million of SBA-guaranteed debentures outstanding.

On August 12, 2014, we obtained exemptive relief from the SEC to permit us to exclude debt of the SBIC subsidiaries guaranteed by the SBA for purposes of complying with 150% asset coverage test under the 1940 Act. The exemptive relief provides us with increased flexibility under the 150% asset coverage test by permitting us to borrow up to $325.0 million more than we would otherwise be able to absent the receipt of this exemptive relief.

On a stand-alone basis, the SBIC subsidiaries held $457.2 million and $492.7 million in assets at March 31, 2026 and December 31, 2025, respectively, which accounted for approximately 45.7% and 47.3% of our total consolidated assets, respectively.

SBA-guaranteed debentures have fixed interest rates that equal the prevailing rate for 10-year U.S. Treasury Notes plus a market spread and have a maturity of ten years with interest payable semi-annually. The principal amount of the SBA-guaranteed debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. SBA-guaranteed debentures are also subject to certain fees payable by the SBIC subsidiaries calculated at the time such debentures are drawn. As of December 31, 2025 and 2024, the SBIC subsidiaries had $299.0 million and $325.0 million of the SBA-guaranteed debentures outstanding, respectively.

As of March 31, 2026 and December 31, 2025, the carrying amount of the SBA-guaranteed debentures was $257.2 million and $296.0 million, respectively. At the measurement date, the estimated fair value of the SBA-guaranteed debentures as prepared for disclosure purposes was $232.8 million. The fair value of the SBA-guaranteed debentures is determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the SBA-guaranteed debentures is estimated based upon market interest rates for our own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. At March 31, 2026 and December 31, 2025, the SBA-guaranteed debentures would be deemed to be Level 3, as defined in Note 6 to our Consolidated Financial Statements.

As of March 31, 2026, we have incurred $11.1 million in financing costs related to the SBA-guaranteed debentures since the SBIC subsidiaries received their licenses, which were recorded as prepaid loan fees. As of March 31, 2026 and December 31, 2025, $2.8 million

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and $3.0 million of prepaid financing costs had yet to be amortized, respectively. These prepaid loan fees are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

The following table summarizes the interest expense and amortized fees on the SBA-guaranteed debentures for the three months ended March 31, 2026 and 2025 (dollars in millions):


	For the three months ended
	March 31, 2026			March 31, 2025
Interest expense	$	2.2		$	2.5
Debenture fee amortization		0.2			0.2
Total interest and financing expenses	$	2.4		$	2.7
Weighted average interest rate		3.3	%		3.3	%
Effective interest rate (including fee amortization)		3.5	%		3.5	%
Average debt outstanding	$	284.7		$	316.7
Cash paid for interest	$	4.8		$	5.2

Notes Payable

The Notes Payable are institutional, non-traded notes. As of March 31, 2026 and December 31, 2025, the carrying amount of the Notes Payable was $122.8 million million and $122.7 million, respectively. As of March 31, 2026, the estimated fair value of the Notes Payable as prepared for disclosure purposes was $124.9 million.

On January 14, 2021, we issued $100.0 million in aggregate principal amount of 4.875% fixed-rate notes due 2026 (the “2026 Notes Payable”). The 2026 Notes Payable were redeemable in whole or in part at any time or from time to time at our option on or after December 31, 2025, at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2026 Notes Payable was payable semi-annually beginning September 30, 2021. We used the net proceeds from the 2026 Notes Payable offering to fully redeem the 5.75% fixed-rate notes due September 15, 2022 and repay a portion of the amount outstanding under the Credit Facility.

On September 30, 2025, we prepaid $50.0 million in aggregate principal of the 2026 Notes Payable. On December 31, 2025, we prepaid the remaining $50.0 million in aggregate principal of the 2026 Notes Payable in full. In connection with the issuance and maintenance of the 2026 Notes Payable, we incurred $2.3 million of fees, which were amortized over the term of the 2026 Notes Payable. For the year ended December 31, 2025, we recorded a make-whole payment of less than $0.1 million and accelerated $0.2 million of unamortized upfront fees, which are recognized as a loss on debt extinguishment in the Consolidated Statements of Operations.

On April 1, 2025 and September 25, 2025, we issued $75.0 million and $50.0 million, respectively, in aggregate principal amount of the 2030 Notes Payable (together with the 2026 Notes Payable, the “Notes Payable”). The 2030 Notes Payable are institutional, non-traded notes that will mature on April 1, 2030 and may be redeemed in whole or in part at any time or from time to time at our option on or after October 1, 2029, at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest on the 2030 Notes Payable is payable semi-annually beginning October 1, 2025. We used the net proceeds from the 2030 Notes Payable offering to fully redeem the 2026 Notes Payable and repay a portion of the amount outstanding under the Credit Facility.

In connection with the issuance and maintenance of the 2030 Notes Payable, we have incurred $2.7 million of fees, which are being amortized over the term of the 2030 Notes Payable, of which $2.2 million and $2.3 million remains to be amortized as of March 31, 2026 and December 31, 2025, respectively. These financing costs are presented on the Consolidated Statements of Assets and Liabilities as a deduction from the debt liability.

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The following table summarizes the interest expense and deferred financing costs on the 2026 Notes Payable for the three months ended March 31, 2026 and 2025 (dollars in millions):


		For the three months ended
		March 31, 2026			March 31, 2025
Interest expense		$	—		$	1.2
Deferred financing costs			—			0.1
Total interest and financing expenses		$	—		$	1.3
Weighted average interest rate			N/A	%		4.9	%
Effective interest rate (including fee amortization)			N/A	%		5.4	%
Average debt outstanding		$	—		$	100.0
Cash paid for interest		$	—		$	2.4

The following table summarizes the interest expense and deferred financing costs on the 2030 Notes Payable for the three months ended March 31, 2026 (dollars in millions):


		For the three months ended
		March 31, 2026
Interest expense		$	2.3
Deferred financing costs			0.1
Total interest and financing expenses		$	2.4
Weighted average interest rate			7.4	%
Effective interest rate (including fee amortization)			7.8	%
Average debt outstanding		$	125.0
Cash paid for interest		$	—

ATM Program

On November 16, 2021, we entered into an equity distribution agreement, as amended and restated on August 29, 2022 (the “2021 Equity Distribution Agreement”), with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2021 Equity Distribution Agreement, we were permitted to issue and sell, from time to time, up to $50.0 million in aggregate offering price of shares of our common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with our investment objective and strategies.

On August 11, 2023, we entered into an equity distribution agreement (the “2023 Equity Distribution Agreement”) with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2023 Equity Distribution Agreement, we were permitted issue and sell, from time to time, up to $100.0 million in aggregate offering price of shares of our common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with our investment objective and strategies. Upon execution of the 2023 Equity Distribution Agreement, we no longer sold any shares under the 2021 Equity Distribution Agreement.

On September 9, 2025, we entered into an equity distribution agreement (the “2025 Equity Distribution Agreement” and together with the 2023 Equity Distribution Agreement and the 2021 Equity Distribution Agreement, the “Equity Distribution Agreements”) with Keefe Bruyette & Woods, Inc. and Raymond James & Associates, Inc., as sales agents and/or principal thereunder. Under the 2025 Equity Distribution Agreement, we may issue and sell, from time to time, up to $100.0 million in aggregate offering price of shares of our common stock, par value $0.001 per share, with the intention to use the net proceeds from this at-the-market sales program to repay certain outstanding indebtedness and make investments in portfolio companies in accordance with its investment objective and strategies. Upon execution of the 2025 Equity Distribution Agreement, we no longer sold any shares under the 2023 Equity Distribution Agreement. We refer to our issuance and sale of shares under the Equity Distribution Agreements as the “ATM Program.

We did not issue any shares during the three months ended March 31, 2026 under the ATM Program. We issued 656,085 shares during the three months ended March 31, 2025 under the ATM Program for gross proceeds of $9.3 million and underwriting fees and other expenses of $0.3 million. The average per share offering price of shares issued in the ATM Program during the three months ended March

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31, 2025 was $14.11. The Advisor has agreed to reimburse us for underwriting fees and expenses to the extent the per share price of the shares to the public, less underwriting fees, was less than the then-current net asset value per share. For the three months ended March 31, 2025, the Advisor was not required to reimburse underwriting fees as all shares were issued at a premium to net asset value.

Off-Balance Sheet Arrangements

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. As of March 31, 2026, we had $47.8 million in unfunded debt commitments and $0.3 million in unfunded equity commitments to 76 portfolio companies. As of December 31, 2025, we had $53.0 million in unfunded debt commitments and $0.4 million in unfunded equity commitments to 77 portfolio companies. As of March 31, 2026, we had sufficient liquidity (through cash on hand and available borrowings under the Credit Facility) to fund such unfunded loan commitments should the need arise.

RIC Status and Dividends

We have elected to be treated and intend to qualify annually as a RIC under subchapter M of the Code. So long as we maintain our qualification as a RIC, we will not be subject to U.S. federal income tax to the extent that we timely distribute our investment company taxable income and realized net capital gains to stockholders as dividends.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation until realized. Distributions declared and paid by us in a year may differ from taxable income for that year as such dividends may include the distribution of current year taxable income or the distribution of prior year taxable income carried forward into and distributed in the current year. Distributions also may include returns of capital.

To qualify for RIC tax treatment, we generally must, among other things, distribute to our stockholders, with respect to each taxable year, at least 90% of our investment company net taxable income (i.e., our net ordinary income and our realized net short-term capital gains in excess of realized net long-term capital losses, if any). If we maintain our qualification as a RIC, we must also satisfy certain distribution requirements each calendar year to avoid a U.S. federal excise tax on our undistributed earnings of a RIC. As of December 31, 2025, we had $37.0 million of undistributed taxable income that will be carried forward toward distributions paid during the year ending December 31, 2026.

We intend to distribute to our stockholders between 90% and 100% of our annual taxable income (which includes our taxable interest and fee income). However, the covenants contained in the Credit Facility may prohibit us from making distributions to our stockholders, and, as a result, could hinder our ability to satisfy the Annual Distribution Requirement. In addition, we may retain for investment some or all our net taxable capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) and treat such amounts as deemed distributions to our stockholders. If we do this, our stockholders will be treated as if they received actual distributions of the capital gains we retained and then reinvested the net after-tax proceeds in shares of our common stock. Our stockholders also may be eligible to claim tax credits (or, in certain circumstances, tax refunds) equal to their allocable share of the tax we paid on the capital gains deemed distributed to them. To the extent our taxable earnings for a fiscal taxable year fall below the total amount of our dividends for that fiscal year, a portion of those dividend distributions may be deemed a return of capital to our stockholders.

We may not be able to achieve operating results that will allow us to make distributions at a specific level or to increase the amount of these distributions from time to time. In addition, we may be limited in our ability to make distributions due to the asset coverage test for borrowings applicable to us as a BDC under the 1940 Act and due to provisions in the Credit Facility. We cannot assure stockholders that they will receive any distributions or distributions at a particular level.

In accordance with certain applicable U.S. Treasury regulations and private letter rulings issued by the Internal Revenue Service (the “IRS”), a publicly offered RIC may treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all stockholders must be at least 20% of the aggregate declared distribution. If too many stockholders elect to receive cash, each stockholder electing to receive cash must receive a pro rata amount of cash (with the balance of the distribution paid in shares of our common stock). In no event will any stockholder, electing to receive cash, receive less than 20% of his or her entire distribution in cash, except as described below.

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If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in shares of our common stock will be equal to the amount of cash that could have been received instead of stock. We have no current intention of paying dividends in shares of our common stock in accordance with these U.S. Treasury regulations or private letter rulings. However, we continue to monitor the Company’s liquidity position and the overall economy and will continue to assess whether it would be in our and our stockholders’ best interest to take advantage of the IRS rulings.

Recent Accounting Pronouncements

See Note 1 to the consolidated financial statements contained herein for a description of recent accounting pronouncements, if any, including the expected dates of adoption and the anticipated impact on the financial statements.

Critical Accounting Policies

See Note 1 to the consolidated financial statements contained herein for a description of our critical accounting policies.

Subsequent Events

Our management has evaluated subsequent events through the date of issuance of the financial statements included herein. There have been no subsequent events that require recognition or disclosure in these financial statements except for the following described below.

Investment Portfolio

We invested in the following portfolio companies subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Investment Amount		Instrument Type
Add-On Investment	April 1, 2026	EH Real Estate Services, LLC*	Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers	$	190,093	Senior Secured – First Lien
New Investment	April 3, 2026	VeloSource Purchaser, LLC	Locum tenens staffing agency	$	200,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	18,605	Equity
Add-On Investment	April 13, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	1,256,415	Senior Secured – First Lien
New Investment	April 13, 2026	Solomon AcquisitionCo, LLC	An innovative process automation and digital systems integrator	$	4,196,557	Senior Secured – First Lien
				$	100,000	Revolver Commitment
				$	186,807	Equity
New Investment	April 27, 2026	Project Freeze**	Manufacturer of walk-in coolers, freezers, and refrigeration systems	$	4,000,000	Senior Secured – First Lien
				$	100,000	Delayed Draw Term Loan Commitment
				$	100,000	Revolver Commitment
				$	324,074	Equity
Add-On Investment	April 28, 2026	Venbrook Buyer, LLC*	An independent insurance services broker	$	502,566	Senior Secured – First Lien
Add-On Investment	April 28, 2026	Advanced Barrier Extrusions, LLC*	Manufacturer of flexible packaging	$	330,250	Senior Secured – First Lien

* Existing portfolio company

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We realized the following portfolio company investments subsequent to March 31, 2026:


Activity Type	Date	Company Name	Company Description	Proceeds Received		Realized Loss		Instrument Type
Full Repayment	April 17, 2026	Sales Benchmark Index, LLC	Provider of revenue growth management consulting services for private equity-owned and large enterprise clients	$	11,968,656	$	—	Senior Secured – First Lien
				$	443,820	$	—	Revolver Commitment
Full Realization				$	486,925		(178,805)	Equity
Full Repayment	April 24, 2026	Equine Network, LLC	Provider of equine competitions, content, products, and services	$	9,043,164	$	—	Senior Secured – First Lien
				$	97,900	$	—	Delayed Draw Term Loan Commitment
				$	166,667	$	—	Revolver Commitment
Full Repayment	April 30, 2026	Cerebro Buyer, LLC	Manufacturer of single-use electrodes for medical procedures	$	4,526,683	$	—	Senior Secured – First Lien
				$	376,902	$	—	Delayed Draw Term Loan Commitment

Credit Facility

The outstanding balance under the Credit Facility as of May 11, 2026 was $238.4 million.

Dividend Declared

On April 14, 2026, the Board declared a regular monthly dividend for each of April 2026, May 2026, and June 2026 as follows:


		Ex-Dividend		Record		Payment		Amount per
Declared		Date		Date		Date		Share
4/14/2026		4/30/2026		4/30/2026		5/15/2026		$	0.1133
4/14/2026		5/29/2026		5/29/2026		6/15/2026		$	0.1133
4/14/2026		6/30/2026		6/30/2026		7/15/2026		$	0.1133

Item 3.Quantitative and Qualitative Disclosures About Market Risk

We are subject to financial market risks, including changes in interest rates. In March 2022, the Federal Reserve raised interest rates for the first time since December 2018, and subsequently raised interest rates several times, most recently in July 2023, bringing the target for the federal funds rate to 5.25% - 5.50%, the highest since January 2001. In September 2024, the Federal Reserve began easing its policy, lowering the federal funds rate to a target range of 4.25% - 4.50% in December 2024, 4.00% - 4.25% in September 2025, 3.75% - 4.00% in October 2025 and 3.50% - 3.75% in December 2025. Since December 2025, the Federal Reserve has kept the interest rate at 3.50% - 3.75%. As of December 31, 2025 and December 31, 2024, 91.6% and 94.5% of the loans in our portfolio bore interest at floating rates, respectively. These floating rate loans typically bear interest in reference to SOFR, which is indexed to 30-day or 90-day SOFR rates, subject to an interest rate floor. As of March 31, 2026 and December 31, 2025, the weighted average interest rate floor on our floating rate loans was 1.42% and 1.46%, respectively.

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Assuming that the consolidated statement of assets and liabilities As of March 31, 2026 was to remain constant and no actions were taken to alter the existing interest rate sensitivity, the following table shows the annual impact on net income of changes in interest rates:


		($ in millions)
		Interest			Interest		Net Interest
Change in Basis Points⁽²⁾		Income			Expense⁽³⁾		Income⁽¹⁾
Up 200 basis points		$	16.7	$	(4.8)	$	11.9
Up 150 basis points			12.5		(3.6)		8.9
Up 100 basis points			8.4		(2.4)		6.0
Up 50 basis points			4.2		(1.2)		3.0
Down 50 basis points			(4.2)		1.2		(3.0)
Down 100 basis points			(8.4)		2.4		(6.0)
Down 150 basis points			(12.5)		3.6		(8.9)
Down 200 basis points			(16.7)		4.8		(11.9)

(1)	Excludes the impact of incentive fees based on pre-incentive fee net investment income. See Note 2 to the consolidated financial statements contained herein for more information on the incentive fee.

(2)	At March 31, 2026, the three-month SOFR rate was 368 basis points. This table assumes floating rates would not fall below zero.

(3)	Includes the impact of the 25 bps SOFR floor in place on the Credit Facility.

Although we believe that this measure is indicative of our sensitivity to interest rate changes, it does not adjust for potential changes in credit quality, size and composition of the assets on the balance sheet and other business developments that could affect net increase in net assets resulting from operations. Accordingly, no assurances can be given that actual results would not differ materially from the potential outcome simulated by this estimate. We may hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contacts subject to the requirements of the 1940 Act. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments. For the three months ended March 31, 2026 and 2025, we did not engage in hedging activities.

Item 4.Controls and Procedures

(a)	Evaluation of Disclosure Controls and Procedures

The Company’s management, under the supervision and with the participation of various members of management, including its Chief Executive Officer and its Chief Financial Officer, has evaluated the effectiveness of its disclosure controls and procedures (as defined in Rule 13a 15(e) or Rule 15d 15(e) of the Securities Exchange Act of 1934, as amended, as of the end of the period covered by this report. Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective as of the end of the period covered by this report.

(b)	Changes in Internal Control Over Financial Reporting

The Company’s management did not identify any change in the Company’s internal control over financial reporting that occurred during the three months ended March 31, 2026 that has materially affected, or is reasonable likely to materially affect, the Company’s internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1.Legal Proceedings

We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us or our subsidiaries. From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.

Item 1A.Risk Factors

Investing in our securities involves a number of significant risks. In addition to the other information set forth in this quarterly report on Form 10-Q, you should carefully consider the risk factors discussed in “Item 1A. Risk Factors” of Annual Report on Form 10-K filed with the SEC on March 11, 2026, all of which could materially affect our business, financial condition and/or results of operations. Although the risks described in our other SEC filings referenced above represent the principal risks associated with an investment in us, they are not the only risks we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, might materially and adversely affect our business, financial condition and/or results of operations.

During the three months ended March 31, 2026, there have been no material changes to the risk factors discussed in our SEC filings referenced above.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

We did not engage in unregistered sales of equity securities during the three months ended March 31, 2026.

No shares were issued under the distribution reinvestment program during either of the three months ended March 31, 2026 and 2025.

Item 3.Defaults Upon Senior Securities

Not applicable.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

(a)

None.

(b)

None.

(c)

Rule 10b5-1 Trading Plans

During the three months ended March 31, 2026, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement.”

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Item 6.Exhibits.

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits filed with the SEC:


Exhibit Number		Description
3.1		Articles of Amendment and Restatement (Incorporated by reference to Exhibit (a)(1) to the Registrant’s Registration Statement on Form N-2 (File No. 333-184195), filed on October 23, 2012).

3.2		Bylaws (Incorporated by reference to Exhibit (b)(1) to the Registrant’s Registration Statement on Form N-2 (File No. 333-184195), filed on October 23, 2012).

4.1		Form of Stock Certificate (Incorporated by reference to Exhibit (d) to the Registrant’s Registration Statement on Form N-2 (File No. 333-184195), filed on October 23, 2012).

4.2		Fourth Supplemental Indenture, dated as of April 1, 2025, by and between Stellus Capital Investment Corporation and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (Incorporated by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 814-00971), filed on April 2, 2025).

4.3		Form of Global Note with respect to the 7.250% Notes due 2030 (Incorporated by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 814-00971), filed on April 2, 2025).

31.1		Chief Executive Officer Certification pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

31.2		Chief Financial Officer Certification pursuant to Exchange Act Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*

32.1		Chief Executive Officer Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

32.2		Chief Financial Officer Certification pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

101.INS*		XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File — The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

*	Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: May 11, 2026	STELLUS CAPITAL INVESTMENT CORPORATION

	By:	/s/ Robert T. Ladd
		Name:	Robert T. Ladd
		Title:	Chief Executive Officer and President

	By:	/s/ W. Todd Huskinson
		Name:	W. Todd Huskinson
		Title:	Chief Financial Officer