Revenue instability remains a primary concern, with the firm reporting a -$2.4M top-line figure in 2026Q1 as valuation adjustments continue to overwhelm core interest income.
OFS Capital Corporation (OFS) annual income statement — 17-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Net Interest Income | 15.35M | 23.23M | 27.78M | 36.32M | 29.7M | 25.01M | 24.24M | 34M | 31.47M | 25.22M | 23.73M | 23.13M | 15.76M | 13.54M | 9.16M | 921K | 6.6M | 10.39M |
| NII Growth % | -170.63% | -16.39% | -23.51% | 22.31% | 18.73% | 3.2% | -28.72% | 8.03% | 24.81% | 6.29% | 2.59% | 46.76% | 16.36% | 47.8% | 894.9% | -86.04% | -36.5% | - |
| Net Interest Margin % | 5.04% | 6.7% | 6.49% | 7.73% | 5.7% | 4.4% | 5.01% | 6.32% | 7.13% | 7.05% | 7.78% | 7.85% | 4.61% | 4.85% | 3.73% | 1.42% | 4.28% | 4.55% |
| Interest Income | 28.05M | 39.74M | 44.43M | 55.8M | 46.72M | 42.53M | 43.04M | 49.83M | 40.71M | 31.03M | 29.03M | 30.09M | 21.34M | 16.93M | 13.33M | 1.75M | 10.25M | 17.52M |
| Interest Expense | 16.43M | 16.51M | 16.65M | 19.48M | 17.02M | 17.52M | 18.81M | 15.83M | 9.23M | 5.81M | 5.3M | 6.96M | 5.58M | 3.38M | 4.16M | 831K | 3.65M | 7.13M |
| Loan Loss Provision | -5.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -199K | -2.39M | 6.89M |
| Non-Interest Income | -28.97M | -51.55M | 5.09M | -31.53M | -34.03M | 43.22M | -13.9M | -19.88M | -17.43M | -13.53M | -6.1M | -854K | -1.88M | -1.33M | -3.98M | -1.5M | -1.65M | 11.53M |
| Non-Interest Income % | 212.75% | 182.03% | 15.49% | -658.15% | 785.87% | 63.34% | -134.55% | -140.86% | -124.09% | -115.82% | -34.6% | -3.83% | -13.55% | -10.94% | -76.79% | 258.79% | -33.23% | 52.6% |
| Total Net Revenue | -13.62M | -28.32M | 32.88M | 4.79M | -4.33M | 68.23M | 10.33M | 14.12M | 14.04M | 11.69M | 17.63M | 22.27M | 13.88M | 12.21M | 5.18M | -580K | 4.95M | 21.92M |
| Revenue Growth % | -194.54% | -186.14% | 586.18% | 210.65% | -106.35% | 560.33% | -26.8% | 0.51% | 20.2% | -33.71% | -20.86% | 60.49% | 13.68% | 135.54% | 993.62% | -111.71% | -77.41% | - |
| Non-Interest Expense | 6.22M | 4.77M | 4.43M | 5.26M | 3.26M | 11.37M | 6.64M | 4.56M | 4.47M | 3.77M | 3.8M | 4.04M | 3.94M | 4.53M | -750K | 1.81M | 2.1M | 11.81M |
| Efficiency Ratio | -45.68% | -16.86% | 13.48% | 109.71% | -75.2% | 16.66% | 64.25% | 32.33% | 31.85% | 32.31% | 21.55% | 18.15% | 28.38% | 37.13% | -14.47% | -311.38% | 42.48% | 53.89% |
| Operating Income | -23.4M | -33.09M | 28.44M | -465K | -7.59M | 56.86M | 3.69M | 9.55M | 9.57M | 7.91M | 13.83M | 18.23M | 9.94M | 7.67M | 5.93M | -2.19M | 5.24M | 3.22M |
| Operating Margin % | 171.83% | 116.86% | 86.52% | -9.71% | 175.2% | 83.34% | 35.75% | 67.67% | 68.15% | 67.69% | 78.45% | 81.85% | 71.62% | 62.87% | 114.47% | 377.07% | 105.77% | 14.7% |
| Operating Income Growth % | - | -216.35% | 6216.56% | 93.87% | -113.34% | 1439.36% | -61.33% | -0.2% | 21.01% | -42.8% | -24.15% | 83.41% | 29.51% | 29.36% | 371.28% | -141.74% | 62.6% | - |
| Pretax Income | -27.42M | -33.09M | 28.44M | -465K | -7.59M | 56.86M | 3.69M | 9.55M | 9.57M | 7.91M | 13.83M | 18.23M | 9.94M | 7.67M | 5.93M | -2.19M | 5.24M | 3.22M |
| Pretax Margin % | 201.34% | 116.86% | 86.52% | -9.71% | 175.2% | 83.34% | 35.75% | 67.67% | 68.15% | 67.69% | 78.45% | 81.85% | 71.62% | 62.87% | 114.47% | 377.07% | 105.77% | 14.7% |
| Income Tax | 344K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -36K |
| Effective Tax Rate % | -1.25% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -1.12% |
| Net Income | -27.76M | -33.09M | 28.44M | -465K | -7.59M | 56.86M | 3.69M | 9.55M | 9.57M | 7.91M | 13.83M | 18.23M | 9.94M | 7.67M | 6.22M | -2.19M | 5.24M | 3.26M |
| Net Margin % | 203.87% | 116.86% | 86.52% | -9.71% | 175.2% | 83.34% | 35.75% | 67.67% | 68.15% | 67.69% | 78.45% | 81.85% | 71.62% | 62.87% | 119.93% | 377.07% | 105.77% | 14.86% |
| Net Income Growth % | -370.99% | -216.35% | 6216.56% | 93.87% | -113.34% | 1439.36% | -61.33% | -0.2% | 21.01% | -42.8% | -24.15% | 83.41% | 29.51% | 23.47% | 384.23% | -141.74% | 60.8% | - |
| Net Income (Continuing) | -27.76M | -33.09M | 28.44M | -465K | -7.59M | 56.86M | 3.69M | 9.55M | 9.57M | 7.91M | 13.83M | 18.23M | 9.94M | 7.67M | 5.93M | -2.19M | 5.24M | 3.26M |
| EPS (Diluted) | -2.07 | -2.47 | 2.12 | -0.03 | -0.58 | 4.24 | 0.28 | 0.71 | 0.72 | 0.64 | 1.43 | 1.89 | 1.03 | 0.80 | 0.65 | -0.23 | 0.55 | 0.34 |
| EPS Growth % | -314.29% | -216.51% | 6209.51% | 94.02% | -113.68% | 1414.29% | -60.56% | -1.39% | 12.5% | -55.24% | -24.34% | 83.5% | 28.75% | 23.08% | 382.61% | -141.82% | 61.76% | - |
| EPS (Basic) | - | -2.47 | 2.12 | -0.03 | -0.58 | 4.24 | 0.28 | 0.71 | 0.72 | 0.64 | 1.43 | 1.89 | 1.03 | 0.80 | 0.65 | -0.23 | 0.55 | 0.34 |
| Diluted Shares Outstanding | 13.4M | 13.4M | 13.4M | 13.4M | 13.42M | 13.41M | 13.39M | 13.36M | 13.35M | 12.4M | 9.69M | 9.67M | 9.63M | 9.62M | 9.58M | 9.58M | 9.58M | 9.58M |
Quick answers to the most common questions about buying OFS stock.
For fiscal year 2025, OFS Capital Corporation (OFS) reported total revenue of $-28.3M. This represents a 229.2% decline compared to $21.9M in 2009.
OFS Capital Corporation (OFS) reported a net loss of $33.1M for the fiscal year ending 2025.
OFS Capital Corporation (OFS) reported an operating income of $-33.1M, resulting in an operating profit margin of 280.2%. This margin reflects the operational efficiency of the business before interest and taxes.
OFS Capital Corporation (OFS) generated $-28.3M in gross profit for the year, representing a gross profit margin of 239.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Portfolio Valuation Volatility
Metrics are mathematically derived from official filings.
Revenue Volatility Masks Underlying Stress
As evidenced by the quarterly income statement data, OFS has experienced extreme revenue instability, with multiple periods of negative top-line figures, including a -$2.4M result in 2026Q1, which suggests that unrealized valuation adjustments are currently overwhelming the firm's core interest-based income generation capabilities.
The recurring appearance of negative revenue suggests that the firm's portfolio is subject to significant mark-to-market volatility, likely driven by the fair value assessment of Level 3 assets. Investors should monitor whether these valuation swings represent temporary market dislocations or a fundamental deterioration in the credit quality of the underlying lower-middle-market borrowers.
Structural Margin Distortion From Write-downs
Based on reported financial filings, the company's gross margin metrics have exhibited erratic behavior, frequently oscillating into negative territory, which indicates that the firm's cost of capital and portfolio depreciation are currently outpacing the interest income generated from its senior secured and unitranche loan investments.
The lack of consistent positive gross margins highlights the difficulty in maintaining profitability when the investment portfolio is subject to frequent downward revaluations. This pattern suggests that the firm's pricing power is insufficient to offset the credit risks inherent in its specific niche of the lower-middle market.
Non-Cash Items Obscure Operating Reality
According to the provided income statement history, the divergence between operating income and net income is minimal, yet both metrics are heavily impacted by non-operating valuation adjustments, rendering traditional EPS analysis largely ineffective for assessing the true cash-generating capacity of the firm's investment platform.
The reliance on internal fair value models for Level 3 assets means that reported earnings are highly sensitive to management's subjective valuation inputs. Analysts should focus on Net Investment Income (NII) rather than GAAP net income to better understand the actual cash flow available for distribution to shareholders.
Sustainability of Current Operating Model
While the firm maintains a low debt-to-equity ratio of 1.77%, the persistent negative revenue trends and recurring net losses suggest that the current operating model may be unsustainable without a significant improvement in the credit performance of the underlying portfolio companies or a shift in strategy.
Short-sellers would likely focus on the potential for further NAV erosion if the current trend of negative revenue continues, as this could force a reduction in dividend payouts. The lack of consistent profitability warrants further investigation into whether the Orchard First Source platform can effectively mitigate the risks currently manifesting in the portfolio.