Revenue exhibits significant cyclicality, fluctuating between $14.0M and $25.2M over the last ten quarters, while gross margins have swung from 40.8% to 77.9% due to interest rate sensitivity.
| 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 |
|---|
| Sales/Revenue | 77.03M | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 45.05M | 32.01M | 51.21M | 21.23M | 20.95M | 42.66M | 25.88M | 31.69M | 17.29M | 21M | 20.17M | 4.54M | 7.44M | 14.68M | 6.34M |
| Gross Margin % | 58.48% | 47.81% | 61.91% | 39.87% | 46.13% | 69.5% | 61.87% | 67.91% | 55.68% | 77.05% | 76.25% | 43.74% | 58.83% | 77.58% | 100% |
| Gross Profit Growth % | - | -37.49% | 141.27% | 1.31% | -50.89% | 64.83% | -18.33% | 83.27% | -17.68% | 4.12% | 344.25% | -38.93% | -49.34% | 131.62% | - |
| Operating Expenses | 11.01M | 3.39M | 3.75M | 5.22M | 5.08M | 5.54M | 4.69M | 4.28M | 4.25M | 4.65M | 3.63M | 2.62M | 2.17M | 1.37M | 3.76M |
| OpEx % of Revenue | - | 5.06% | 4.53% | 9.8% | 11.19% | 9.02% | 11.22% | 9.17% | 13.69% | 17.08% | 13.72% | 25.22% | 17.18% | 7.27% | 59.39% |
| Selling, General & Admin | 1.06T | 6.47M | 5.57M | 5.53M | 5.08M | 5M | 4.69M | 4.28M | 4.25M | 4.24M | 3.63M | 3.26M | 3.57M | 3.16M | 3.07M |
| SG&A % of Revenue | - | 9.67% | 6.74% | 10.38% | 11.19% | 8.14% | 11.22% | 9.17% | 13.69% | 15.55% | 13.72% | 31.44% | 28.25% | 16.71% | 48.48% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 34.04M | 28.63M | 47.46M | 16.01M | 15.87M | 37.12M | 21.19M | 27.41M | 34.91M | 17.97M | 17.31M | 16.55M | 15.11M | 14.22M | 3.26M |
| Operating Margin % | 44.19% | 42.75% | 57.38% | 30.07% | 34.93% | 60.48% | 50.65% | 58.74% | 112.42% | 65.92% | 65.44% | 159.38% | 119.58% | 75.18% | 51.52% |
| Operating Income Growth % | - | -39.69% | 196.53% | 0.88% | -57.26% | 75.2% | -22.69% | -21.5% | 94.28% | 3.8% | 4.62% | 9.49% | 6.25% | 335.66% | - |
| EBITDA | 34M | 28.63M | 47.46M | 16.01M | 15.87M | 37.12M | 21.19M | 27.41M | 54.58M | 31.4M | 20.89M | 22.08M | 20.43M | 17.35M | 0 |
| EBITDA Margin % | 44.14% | 42.75% | 57.38% | 30.07% | 34.93% | 60.48% | 50.65% | 58.74% | 175.74% | 115.18% | 78.95% | 212.65% | 161.63% | 91.69% | - |
| EBITDA Growth % | -13.36% | -39.69% | 196.53% | 0.88% | -57.26% | 75.2% | -22.69% | -49.78% | 73.82% | 50.33% | -5.39% | 8.08% | 17.76% | - | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 19.66M | 13.43M | 3.57M | 5.53M | 5.32M | 3.12M | -3.26M |
| EBIT | 34M | 28.63M | 47.46M | 16.01M | 15.87M | 37.12M | 21.19M | 27.41M | 38.81M | 30.46M | 30.82M | 13.94M | 15.49M | 20.67M | 1.3M |
| Net Interest Income | 58.48M | 59.1M | 64.12M | 65.77M | 44.91M | 38M | 35.78M | 38.8M | -12.34M | -7.86M | -7.99M | -6.18M | -5.32M | -3.12M | 0 |
| Interest Income | 94.01M | 94.04M | 95.63M | 97.78M | 69.38M | 56.72M | 51.73M | 53.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 35.53M | 34.94M | 31.51M | 32.01M | 24.47M | 18.72M | 15.95M | 14.98M | 12.34M | 7.86M | 7.99M | 6.18M | 5.32M | 3.12M | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 25.15M | 28.63M | 47.46M | 16.01M | 15.87M | 37.12M | 21.19M | 27.41M | 26.81M | 22.6M | 22.83M | 7.76M | 10.47M | 17.54M | 2.23M |
| Pretax Margin % | 32.65% | 42.75% | 57.38% | 30.07% | 34.93% | 60.48% | 50.65% | 58.74% | 86.31% | 82.92% | 86.28% | 74.78% | 82.82% | 92.73% | 35.13% |
| Income Tax | 1.44M | 1.58M | 1.62M | -1.53M | 1.37M | 3.55M | 996.01K | 970.66K | 611.03K | -8.59K | -373.13K | 93.6K | 288.12K | 0 | -1.04M |
| Effective Tax Rate % | 5.73% | 5.52% | 3.41% | -9.54% | 8.67% | 9.56% | 4.7% | 3.54% | 2.28% | -0.04% | -1.63% | 1.21% | 2.75% | 0% | -46.68% |
| Net Income | 23.71M | 27.05M | 45.84M | 17.53M | 14.49M | 33.57M | 20.19M | 26.44M | 26.19M | 22.61M | 23.2M | 7.67M | 10.18M | 17.54M | 2.23M |
| Net Margin % | 30.78% | 40.39% | 55.42% | 32.93% | 31.91% | 54.7% | 48.27% | 56.66% | 84.35% | 82.96% | 87.69% | 73.88% | 80.54% | 92.73% | 35.13% |
| Net Income Growth % | -37.1% | -41.01% | 161.47% | 20.99% | -56.83% | 66.26% | -23.62% | 0.93% | 15.84% | -2.53% | 202.44% | -24.64% | -41.98% | 688.23% | - |
| Net Income (Continuing) | 23.71M | 27.05M | 45.84M | 17.53M | 14.49M | 33.57M | 20.19M | 26.44M | 26.19M | 22.61M | 23.2M | 7.67M | 10.18M | 17.54M | 1.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.82 | 0.95 | 1.79 | 0.80 | 0.74 | 1.72 | 1.04 | 1.45 | 1.64 | 1.52 | 1.86 | 0.61 | 0.83 | 1.45 | 0.18 |
| EPS Growth % | -41.75% | -46.93% | 123.75% | 8.11% | -56.98% | 65.38% | -28.28% | -11.59% | 7.89% | -18.28% | 204.92% | -26.51% | -42.76% | 705.56% | - |
| EPS (Basic) | - | 0.95 | 1.79 | 0.80 | 0.74 | 1.72 | 1.04 | 1.45 | 1.64 | 1.52 | 1.86 | 0.61 | 0.83 | 1.45 | 0.18 |
| Diluted Shares Outstanding | 28.95M | 28.36M | 25.6M | 22M | 19.55M | 19.49M | 19.47M | 18.28M | 15.95M | 14.87M | 12.48M | 12.48M | 12.28M | 12.06M | 12.06M |
| Basic Shares Outstanding | 28.95M | 28.36M | 25.6M | 22M | 19.55M | 19.49M | 19.47M | 18.28M | 15.95M | 14.87M | 12.48M | 12.48M | 12.28M | 12.06M | 12.04M |
| Dividend Payout Ratio | - | 167.37% | 81.93% | 202.63% | 183.51% | 62.68% | 120.55% | 93.34% | 82.44% | 88.14% | 73.14% | 221.22% | 154.13% | 88.34% | 159.15% |
Portfolio Yield Volatility
As indicated by the quarterly income statements, SCM's revenue exhibits significant fluctuations, ranging from $14.0M to $25.2M over the last ten quarters, suggesting that the firm's top-line performance is highly sensitive to the timing of loan originations and repayments within its lower-middle market portfolio.
The inconsistent revenue trajectory appears to be a byproduct of the firm's niche focus on smaller EBITDA companies, where deal flow is inherently lumpy. Investors should monitor whether this volatility reflects a strategic de-risking of the portfolio or an inability to maintain consistent deployment levels in a competitive credit environment.
Based on the reported financial data, SCM's gross margins have demonstrated notable variance, swinging from a low of 40.8% in 2025Q1 to a high of 77.9% in 2026Q1, which highlights the firm's exposure to shifting interest rate environments and the underlying credit quality of its borrowers.
This margin instability suggests that the firm's pricing power is not entirely insulated from broader market pressures. The wide range in gross profitability warrants further investigation into whether recent margin expansion is sustainable or merely a temporary result of favorable non-recurring interest income or prepayment fees.
According to the provided income statements, SCM maintains an operating margin that has fluctuated between 34.0% and 62.8%, indicating that the firm's ability to scale operating income relative to gross profit is constrained by its fixed-cost structure and the inherent variability of its investment income.
The lack of consistent operating leverage suggests that the firm's internal cost base does not perfectly align with the cyclical nature of its revenue. This may imply that management faces challenges in optimizing overhead during periods of lower investment activity, potentially impacting the firm's overall profitability profile.
As reported in financial statements, SCM's net income has shown extreme volatility, with net margins ranging from 6.9% to 64.1%, a trend that likely reflects the impact of non-cash unrealized gains and losses on the fair value of its Level 3 investment portfolio.
The significant disparity between operating income and net income suggests that headline earnings may not be a reliable indicator of the firm's core cash-generating capability. Analysts should prioritize Net Investment Income over net income to better assess the sustainability of the dividend and the underlying health of the business.
Based on the observed trend of declining EPS in several recent quarters, there is a potential risk that SCM's current dividend payout levels may become increasingly difficult to support if the firm cannot stabilize its net investment income and mitigate the impact of portfolio-level credit stress.
The sharp contraction in EPS growth during multiple periods suggests that the firm's earnings power is under pressure, which could force management to choose between dividend cuts or increased risk-taking. Investors should monitor the non-accrual rate closely, as any uptick could further erode the firm's ability to maintain its current distribution policy.
Quick answers to the most common questions about buying SCM stock.
Stellus Capital Investment Corporation (SCM) is profitable, generating $27.0M in net income for the fiscal year ending 2025 with a net profit margin of 40.4%.
Stellus Capital Investment Corporation (SCM) reported an operating income of $28.6M, resulting in an operating profit margin of 42.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Stellus Capital Investment Corporation (SCM) generated $32.0M in gross profit for the year, representing a gross profit margin of 47.8%. This demonstrates the company's core pricing power and production efficiency.