Dividend sustainability is under pressure as distributions of $226.7M in 2026Q4 consumed approximately 91% of the fund's $249.0M in operating cash flow.
| Metric | Mar'26 | Mar'25 | Mar'24 | Mar'23 | Mar'22 | Mar'21 | Mar'20 | Mar'19 | Mar'18 | Mar'17 | Mar'16 | Mar'15 | Mar'14 | Mar'13 |
|---|
| Cash from Operations | 696.2M | -703.8M | -123.79M | -91.56M | 547.45M | 124.01M | 122.8M | 91.56M | -71.15M | -844.22K | 65.22M | -32.69M | -15.45M | -1.09M |
| Operating CF Margin % | 177.71% | -734.91% | -40.35% | -34.91% | 274.68% | 97.38% | 100.53% | 102.42% | -95.1% | -1.46% | 109.48% | -70.1% | -49.85% | -7.78% |
| Operating CF Growth % | 198.92% | -468.52% | -35.2% | -116.73% | 341.47% | 0.98% | 34.12% | 228.69% | -8327.54% | -101.29% | 299.5% | -111.63% | -1321.88% | - |
| Net Income | -585.09M | 48.46M | 235.11M | -171.29M | 125.88M | 289.93M | -291.13M | -20.98M | 38.01M | 105.2M | -85.78M | 3.33M | 22.66M | 24.31M |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.29B | -768.84M | -360.59M | 72.86M | 425.48M | -161.38M | 413.76M | 115.85M | -111M | -108.71M | 145.06M | -28.17M | -36.15M | -25.01M |
| Working Capital Changes | -10.61M | 16.59M | 1.7M | 6.87M | -3.91M | -4.54M | 174.17K | -3.31M | 1.84M | 2.67M | 5.94M | -7.86M | -1.96M | -395.29K |
| Change in Receivables | 2.49M | 3.81M | -5.04M | 1.9M | -6.31M | -6.11M | -2.52M | -3.29M | 566.04K | 1.38M | 6.72M | -9.51M | -3.03M | -1.23M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -8.04M | 5.09M | 4.79M | 5.23M | 2.69M | 1.29M | 2.65M | 440.56K | 610.9K | 492.78K | -621.34K | 1.72M | 841.1K | 412.2K |
| Cash from Investing | -620.77M | 0 | 0 | 0 | -932.95M | -131.95M | -394.02M | -174.96M | 0 | 0 | -35.5M | -105.31M | -60.9M | -56.11M |
| Capital Expenditures | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | 0% | 0% | - | - | - | 0% | 0% | - | 0% |
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Investments | 1.71B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 0 | 1.56B | 546.96M | 472.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -274.07M | 956.17M | 145.03M | 78.63M | 329.3M | 87.14M | 261.41M | 84.54M | 77.46M | -5.5M | -17.1M | 42.42M | 163.49M | 71.75M |
| Debt Issued (Net) | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Equity Issued (Net) | 110.4M | 982.57M | 315.16M | 205.17M | 324.39M | 105.91M | 347.9M | 138.77M | 79.94M | 44.44M | 20.21M | 74.98M | 183.7M | 82.5M |
| Dividends Paid | -451.04M | -308.53M | -166.6M | -122.53M | -85.6M | -75.09M | -83.99M | -54.24M | -41.52M | -48.9M | -37.31M | -32.55M | -20.21M | -10.75M |
| Share Repurchases | -20.47M | 0 | 0 | 0 | 0 | -6.38M | -30M | 0 | -50.5M | -15.31M | -44.82M | -1.05M | 0 | 0 |
| Other Financing | -171.87K | -17.87M | -3.54M | -65.35M | -9.49M | 0 | 0 | 0 | -1.09M | -1.04M | 0 | 0 | 0 | 0 |
| Net Change in Cash | -198.65M | 252.37M | 21.23M | -12.93M | -56.19M | 79.2M | -9.81M | 1.14M | 6.32M | -6.35M | 12.63M | -95.58M | 87.14M | 14.56M |
| Free Cash Flow | 696.2M | -703.8M | -123.79M | -91.56M | 547.45M | 124.01M | 122.8M | 91.56M | -71.15M | -844.22K | 65.22M | -32.69M | -15.45M | -1.09M |
| FCF Margin % | 177.71% | -734.91% | -40.35% | -34.91% | 274.68% | 97.38% | 100.53% | 102.42% | -95.1% | -1.46% | 109.48% | -70.1% | -49.85% | -7.78% |
| FCF Growth % | 198.92% | -468.52% | -35.2% | -116.73% | 341.47% | 0.98% | 34.12% | 228.69% | -8327.54% | -101.29% | 299.5% | -111.63% | -1321.89% | - |
| FCF per Share | 7.13 | -7.77 | -2.95 | -3.05 | 26.09 | 6.71 | 8.73 | 11.13 | -13.95 | -0.19 | 17.39 | -10.23 | -5.07 | -0.71 |
| FCF Conversion (FCF/Net Income) | -1.19x | -14.52x | -0.53x | 0.53x | 4.35x | 0.43x | -0.42x | -4.36x | -1.87x | -0.01x | -0.76x | -9.81x | -0.68x | -0.04x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
CLO equity valuation volatility
As reported in recent financial filings, OXLC's OCF/NI ratio reached -0.41 in 2026Q4, illustrating a profound disconnect where net losses of $606.0M coexist with positive operating cash flows of $249.0M, highlighting the reliance on non-cash accounting adjustments rather than pure operational cash generation.
The persistent divergence between net income and operating cash flow suggests that GAAP earnings are heavily influenced by mark-to-market volatility inherent in CLO equity tranches. Investors should interpret this gap as a signal that reported profitability metrics may not accurately reflect the fund's actual ability to sustain its dividend distributions.
Based on historical cash flow data, OXLC's free cash flow has fluctuated significantly, peaking at $485.9M in 2025Q2 before declining to $249.0M by 2026Q4, indicating that the fund's ability to generate excess cash is highly sensitive to the underlying credit cycle and CLO distribution schedules.
The erratic trajectory of free cash flow suggests that the fund's liquidity is subject to the timing of cash distributions from its junior CLO holdings. This volatility warrants caution, as the fund's dividend payments appear to be increasingly reliant on cash flows that may not be stable over long-term horizons.
According to quarterly cash flow statements, OXLC's dividend payments of $226.7M in 2026Q4 consumed nearly 91% of the $249.0M in operating cash flow, signaling a tightening margin of safety for the fund's distribution policy in the face of ongoing market volatility.
The high payout ratio relative to operating cash flow suggests that management is prioritizing shareholder distributions despite significant unrealized losses in the portfolio. This capital allocation strategy may become unsustainable if the underlying CLO equity tranches experience further cash flow compression or credit defaults.
Analysis of the 10-quarter cumulative data reveals a consistent pattern where operating cash flow frequently exceeds net income, as evidenced by the -21.53 OCF/NI ratio in 2025Q4, suggesting that the fund's cash-generating capacity is structurally distinct from its reported GAAP earnings performance.
This long-term divergence implies that the fund's accounting earnings are frequently suppressed by non-cash valuation adjustments, which may mask the underlying cash-generating potential of the CLO portfolio. However, the reliance on these cash flows to fund dividends suggests that any structural impairment in the underlying loan pools could lead to a rapid deterioration in liquidity.
Quick answers to the most common questions about buying OXLC stock.
Oxford Lane Capital Corp. (OXLC) generated $696.2M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Oxford Lane Capital Corp. (OXLC) generated $696.2M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Oxford Lane Capital Corp. (OXLC) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Oxford Lane Capital Corp. (OXLC) returned $451.0M to shareholders via cash dividends and spent $20.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.