Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025

, /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended September 30, 2025. Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended September 30, 2025, in which we earned U.S. GAAP net investment income of $0.32 per share, core net investment income of $0.34 per share and net realized income of $0.42 per share. During the quarter, we funded $64 million of investments and received $39 million of repayments, resulting in a total portfolio of $1.01 billion at fair value. I'm also pleased to report that our investors have received a total of $318 million in distributions, equivalent to $17.75 per share, since we began operations." FINANCIAL HIGHLIGHTS ($ in millions, except data relating to per share amounts and shares outstanding) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net investment income $9.14 $0.32 $10.26 $0.39 $28.48 $1.01 $32.29 $1.29 Core net investment income(1) 9.65 0.34 10.62 0.40 29.93 1.06 33.59 1.34 Net realized gain (loss) on investments 2.86 0.10 (3.30) (0.13) (3.96) (0.14) (21.69) (0.87) Net realized loss on foreign currency translation (0.01) — (0.02) — (0.06) — (0.08) — Loss on debt extinguishment (0.16) (0.01) — — (0.16) (0.01) — — Total realized income(2) $11.83 $0.41 $6.94 $0.26 $24.30 $0.86 $10.52 $0.42 Distributions (11.43) (0.40) (10.63) (0.40) (33.89) (1.20) (30.32) (1.21) Net unrealized change in (depreciation) appreciation on investments (5.14) (0.18) 8.51 0.33 (2.51) (0.08) 26.44 1.05 Net unrealized change in appreciation on foreign currency translation — — 0.01 — 0.04 — — — Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries — — — — — — 0.19 0.01 Net increase in net assets resulting from operations $6.69 $0.23 $15.46 $0.59 $21.83 $0.78 $37.15 $1.48 Weighted average shares outstanding 28,480,472 26,326,426 28,168,527 25,066,626 (1) Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements. (2) Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all U.S. GAAP measures. PORTFOLIO ACTIVITY ($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies) As of As of September 30, 2025 December 31, 2024 Investments at fair value $1,010.2 $953.5 Total assets $1,028.6 $980.9 Net assets $377.7 $369.9 Shares outstanding 28,947,254 27,481,118 Net asset value per share $13.05 $13.46 Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 New investments $63.8 $17.8 $142.0 $112.6 Repayments of investments (39.0) (15.5) (85.6) (87.3) Net activity $24.8 $2.3 $56.4 $25.3 As of As of September 30, 2025 December 31, 2024 Number of portfolio company investments 115 105 Number of debt investments 100 92 Weighted average yield of debt and other income producing investments (3) Cash 9.0 % 9.5 % Payment-in-kind ("PIK") 0.6 % 0.4 % Fee amortization 0.4 % 0.4 % Total 10.0 % 10.3 % Weighted average yield of total investments(4) Cash 8.4 % 8.9 % PIK 0.6 % 0.4 % Fee amortization 0.4 % 0.4 % Total 9.4 % 9.7 % (3) The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors. (4) The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status. Results of Operations Investment income for the three months ended September 30, 2025 and 2024 totaled $26.3 million and $26.5 million, respectively, most of which was interest income from portfolio investments. Gross operating expenses for the three months ended September 30, 2025 and 2024 totaled $17.6 million and $16.2 million, respectively. For the same respective periods, base management fees totaled $4.4 million and $3.9 million, income incentive fees totaled $2.2 million and $2.6 million, fees and expenses related to our borrowings totaled $8.9 million and $8.0 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.6 million and $0.5 million, income tax totaled $0.5 million and $0.4 million and other expenses totaled $1.0 million and $0.8 million. The Company waived $0.5 million and $0.0 million of income incentive fees due to the total return limitation pursuant to the terms of the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended September 30, 2025 and 2024, respectively, for net operating expenses of $17.1 million and $16.2 million, respectively. Net investment income was $9.1 million and $10.3 million, or $0.32 and $0.39 per common share based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes capital gains incentive fees (reversals) and income tax expense accruals, for the three months ended September 30, 2025 and 2024 was $9.7 million and $10.6 million, or $0.34 and $0.40 per share, respectively. For the three months ended September 30, 2025 and 2024, the Company's investment portfolio had a net change in unrealized (depreciation) appreciation of ($5.1) million and $8.5 million, respectively, and the Company had net realized gains (losses) of $2.9 million and ($3.3) million, respectively. Net increase in net assets resulting from operations totaled $6.7 million and $15.5 million, or $0.23 and $0.59 per common share, based on 28,480,472 and 26,326,426 weighted average common shares outstanding for the three months ended September 30, 2025 and 2024, respectively. Liquidity and Capital Resources As of September 30, 2025, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $335.0 million on a committed basis. As of September 30, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $365.0 million and $350.0 million, respectively. As of September 30, 2025 and December 31, 2024, the Company had $167.6 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively. The Company issued 531,106 shares during the three months ended September 30, 2025 under the at-the-market equity program ("ATM Program") for gross proceeds of $7.4 million. The average per share offering price of shares issued under the ATM Program during the three months ended September 30, 2025 was $14.00. Distributions For both the three months ended September 30, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for both periods ($11.4 million and $10.6 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital. Recent Portfolio Activity The Company invested in the following portfolio companies during the three months ended September 30, 2025: Activity Type Date Company Name Company Description Investment Amount Instrument Type Add-On Investment July 28, 2025 Equine Network, LLC* Hosts competitions and provides services for the U.S. equine industry $ 2,122,453 Senior Secured – First Lien New Investment July 31, 2025 The Millennium Alliance, LLC Facilitator of peer-to-peer events connecting companies withtechnology solution providers $ 11,500,000 Senior Secured – First Lien $ 100,000 Revolver Commitment $ 515,556 Equity New Investment July 31, 2025 Elder Care Opco LLC Provider of homecare services $ 7,785,007 Senior Secured – First Lien $ 2,500,000 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 910,966 Equity Add-On Investment August 4, 2025 Guidant Corp.* Provider of liquid metering products and integrated solutions to theenergy infrastructure sector $ 66,030 Equity Add-On Investment August 5, 2025 MedLearning Group, LLC* Provider of continuing medical education services $ 1,000,000 Senior Secured – First Lien Add-On Investment August 21, 2025 Invincible Boat Company LLC* Manufacturer and marketer of ultra-premium saltwater fishing boats $ 531,915 Revolver Commitment New Investment August 22, 2025 DMD Systems Recovery, LLC Provider of IT asset disposition services $ 6,100,000 Senior Secured – First Lien $ 1,000,000 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 180,000 Equity Add-On Investment August 29, 2025 Compost 360 Acquisition, LLC* Organic waste recycler and producer of compost, mulch, and engineered soils $ 27,630 Equity New Investment September 19, 2025 Champion Services Acquireco LLC Provider of commercial re-roofing and restoration services $ 12,000,000 Senior Secured – First Lien $ 100,000 Revolver Commitment $ 268,889 Equity New Investment September 22, 2025 DFO Enterprises, LLC Manufacturer of fiber optic cable assembly equipment, consumables, and precision components $ 11,580,474 Senior Secured – First Lien $ 100,000 Revolver Commitment $ 412,252 Equity *Existing portfolio company The Company realized investments in the following portfolio companies during the three months ended September 30, 2025: Activity Type Date Company Name Company Description Proceeds Received Realized Gain (Loss) Instrument Type Full Realization July 3, 2025 EOS Fitness Holdings, LLC Gym franchise operator $ 2,799,098 $ 2,799,098 Equity Full Repayment July 31, 2025 Rogers Mechanical Contractors, LLC HVAC and plumbing designer,installer, and service provider for new/existing data centers, fulfilment sortation facilities, and warehouses $ 8,272,652 $ — Senior Secured – First Lien Full Repayment August 21, 2025 CompleteCase, LLC Provider of online uncontested divorce solutions $ 6,287,212 $ — Senior Secured – First Lien Full Repayment September 18, 2025 Cafe Valley, Inc. Wholesale bakery serving thein-store bakery, food service, club, mass, C-store and internationalchannels $ 15,284,524 $ — Senior Secured – First Lien *Existing portfolio company Events Subsequent to September 30, 2025 The Company's management has evaluated subsequent events through November 10, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below. Investment Portfolio The Company invested in the following portfolio companies subsequent to September 30, 2025: Activity Type Date Company Name Company Description Investment Amount Instrument Type Add-On Investment October 1, 2025 The Hardenbergh Group, Inc.* Provider of patient safety, clinical risk mitigation, andhealthcare compliance solutions $ 500,000 Senior Secured – First Lien Add-On Investment October 3, 2025 EH Real Estate Services, LLC* Offers residential property brokerage, title & settlement, and property and casualty insurance brokerage services to home buyers and sellers $ 183,470 Senior Secured – First Lien Add-On Investment October 17, 2025 J.R. Watkins, LLC* Manufacturer and distributor of home and personal care products $ 18,000 Priority Revolver Commitment New Investment October 17, 2025 Fidus Systems Inc. Provider of outsourced electronic product development and engineering services $ 4,759,099 Senior Secured – First Lien $ 3,172,733 Delayed Draw Term Loan Commitment $ 100,000 Revolver Commitment $ 267,728 Equity Add-On Investment November 6, 2025 Mobotrex Acquisition, LLC* Distributor and manufacturer of intelligent traffic solution equipment $ 3,523,787 Senior Secured – First Lien $ 1,549,698 Delayed Draw Term Loan Commitment $ 73,776 Revolver Commitment Add-On Investment November 6, 2025 Ad.Net Acquisition, LLC* A digital marketing company that targetshigh-conversion consumers through cost-per-click digitalmedia advertising $ 1,896,568 Senior Secured – First Lien $ 85,027 Equity *Existing portfolio company The Company realized investments in the following portfolio companies subsequent to September 30, 2025: Activity Type Date Company Name Company Description Proceeds Received Realized Gain Instrument Type Full Repayment October 25, 2025 Heartland Business Systems, LLC End-to-end information technologies solutions provider $ 9,725,000 $ — Senior Secured – First Lien $ 48,875 $ — Delayed Draw Term Loan Full Repayment November 3, 2025 NuSource Financial Acquisition, Inc. Provider of technology integrationand installation of teller machines, maintenance services, and securitysolutions $ 7,014,746 $ — Unsecured Full Realization $ 1,066,715 $ 1,066,715 Warrants Credit Facility The outstanding balance under the Credit Facility as of November 10, 2025 was $182.8 million. Distributions Declared On October 8, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of October 2025, November 2025, and December 2025 as follows: Ex-Dividend Record Payment Amount per Declared Date Date Date Share 10/8/2025 10/31/2025 10/31/2025 11/14/2025 $ 0.1333 10/8/2025 11/28/2025 11/28/2025 12/15/2025 $ 0.1333 10/8/2025 12/31/2025 12/31/2025 1/15/2026 $ 0.1333 Conference Call Information Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, November 12, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary. For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 118871. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, November 26, 2025 by dialing (877) 481-4010 and entering passcode 53167. The replay will also be available on the Company's website. For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days. About Stellus Capital Investment Corporation The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) with a focus on investing through first lien (including unitranche) loans, often with a corresponding equity investment. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab. Forward-Looking Statements Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. Contacts Stellus Capital Investment CorporationW. Todd Huskinson, Chief Financial Officer(713) 292-5414[email protected] STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES September 30, 2025 (unaudited) December 31, 2024 ASSETS Controlled investments at fair value (amortized cost of $33,202,703 and $17,934,808, respectively) $ 13,568,095 $ 7,652,436 Non-controlled, non-affiliated investments, at fair value (amortized cost of $986,914,541 and $943,853,898, respectively) 996,641,541 945,845,252 Cash and cash equivalents 9,024,020 20,058,594 Receivable for sales and repayments of investments 437,552 335,689 Interest receivable 7,047,686 4,947,765 Income tax receivable 1,522,198 1,301,965 Other receivables 99,111 87,995 Related party receivable 22,500 3,687 Prepaid expenses 281,634 666,866 Total Assets $ 1,028,644,337 $ 980,900,249 LIABILITIES Notes Payable $ 172,522,707 $ 99,444,355 Credit Facility payable 163,995,602 172,314,315 SBA-guaranteed debentures 295,805,634 321,251,939 Dividends payable 3,858,669 3,663,233 Management fees payable 4,401,305 4,034,109 Income incentive fees payable 2,642,033 3,109,560 Interest payable 5,912,375 5,281,343 Related party payable 136,535 — Unearned revenue 640,637 548,626 Administrative services payable 507,139 393,513 Other accrued expenses and liabilities 491,374 937,316 Total Liabilities $ 650,914,010 $ 610,978,309 Commitments and contingencies (Note 7) Net Assets $ 377,730,327 $ 369,921,940 NET ASSETS Common stock, par value $0.001 per share (100,000,000 shares authorized; 28,947,254and 27,481,118 shares issued and outstanding, respectively) $ 28,947 $ 27,481 Paid-in capital 399,410,630 379,549,272 Total distributable loss (21,709,250) (9,654,813) Net Assets $ 377,730,327 $ 369,921,940 Total Liabilities and Net Assets $ 1,028,644,337 $ 980,900,249 Net Asset Value Per Share $ 13.05 $ 13.46 STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) For the three months ended For the nine months ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 INVESTMENT INCOME From controlled investments: Interest income $ — $ — $ — $ 81,636 From non-controlled, non-affiliated investments Interest income 23,634,587 24,403,375 69,923,357 72,969,302 Payment-in-kind interest income 1,378,166 934,986 3,870,717 2,490,854 Other income 1,262,956 1,159,898 3,129,895 3,579,415 Total Investment Income $ 26,275,709 $ 26,498,259 $ 76,923,969 $ 79,121,207 OPERATING EXPENSES Management fees $ 4,401,305 $ 3,959,554 $ 12,735,472 $ 11,664,020 Valuation fees 172,364 151,535 368,760 343,753 Administrative services expenses 592,409 469,274 1,515,991 1,441,436 Income incentive fees 2,166,047 2,564,922 6,460,613 7,616,562 Professional fees 395,098 312,034 1,125,937 847,866 Directors' fees 93,250 93,250 297,750 315,750 Insurance expense 99,248 126,362 295,006 376,840 Interest expense and other fees 8,949,075 7,956,403 25,892,109 23,840,473 Income tax expense 515,686 360,192 1,444,184 1,304,948 Other general and administrative expenses 227,037 245,043 945,690 908,185 Total Operating Expenses $ 17,611,519 $ 16,238,569 $ 51,081,512 $ 48,659,833 Income incentive fee waiver (471,251) — (2,643,020) (1,826,893) Total Operating Expenses, net of fee waivers $ 17,140,268 $ 16,238,569 $ 48,438,492 $ 46,832,940 Net Investment Income $ 9,135,441 $ 10,259,690 $ 28,485,477 $ 32,288,267 Net realized loss on controlled investments $ — $ — $ (1,132,576) $ — Net realized gain (loss) on non-controlled, non-affiliated investments 2,867,155 (3,297,615) (2,827,517) (21,689,864) Net realized loss on foreign currency translations (9,422) (22,095) (59,080) (76,990) Loss on debt extinguishment (164,762) — (164,762) — Net change in unrealized appreciation on controlledinvestments 51,367 248,746 1,397,134 923,505 Net change in unrealized (depreciation) appreciation onnon-controlled, non-affiliated investments (5,187,426) 8,255,272 (3,906,233) 25,512,422 Net change in unrealized (depreciation) appreciation onforeign currency translations (325) 14,588 38,540 5,099 Benefit for taxes on net unrealized depreciation on investments — — — 188,893 Benefit for taxes on net realized loss on investments — 2,221 — 2,221 Net Increase in Net Assets Resulting from Operations $ 6,692,028 $ 15,460,807 $ 21,830,983 $ 37,153,553 Net Investment Income Per Share—basic and diluted $ 0.32 $ 0.39 $ 1.01 $ 1.29 Net Increase in Net Assets Resulting from OperationsPer Share – basic and diluted $ 0.23 $ 0.59 $ 0.78 $ 1.48 Weighted Average Shares of Common Stock Outstanding—basic and diluted 28,480,472 26,326,426 28,168,527 25,066,626 Distributions Per Share—basic and diluted $ 0.40 $ 0.40 $ 1.20 $ 1.21 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, 2023 24,125,642 $ 24,125 $ 335,918,984 $ (16,003,321) $ 319,939,788 Net investment income — — — 10,235,916 10,235,916 Net realized loss on investments — — — (20,384,731) (20,384,731) Net realized loss on foreign currency translations — — — (25,106) (25,106) Net change in unrealized appreciation on investments — — — 23,518,590 23,518,590 Net change in unrealized depreciation on foreign currency translations — — — (3,602) (3,602) Provision for taxes on unrealized appreciation on investments — — — (192,607) (192,607) Distributions from net investment income — — — (9,647,844) (9,647,844) Balances at March 31, 2024 24,125,642 $ 24,125 $ 335,918,984 $ (12,502,705) $ 323,440,404 Net investment income — — — 11,792,661 11,792,661 Net realized gain on investments — — — 1,992,482 1,992,482 Net realized loss on foreign currency translations — — — (29,789) (29,789) Net change in unrealized depreciation on investments — — — (5,586,681) (5,586,681) Net change in unrealized depreciation on foreign currency translations — — — (5,887) (5,887) Benefit for taxes on unrealized depreciation on investments — — — 381,500 381,500 Distributions from net investment income — — — (10,049,073) (10,049,073) Issuance of common stock, net of offering costs(1) 1,855,356 1,856 25,248,020 — 25,249,876 Balances at June 30, 2024 25,980,998 $ 25,981 $ 361,167,004 $ (14,007,492) $ 347,185,493 Net investment income — — — 10,259,690 10,259,690 Net realized loss on investments — — — (3,297,615) (3,297,615) Net realized loss on foreign currency translation — — — (22,095) (22,095) Net change in unrealized appreciation on investments — — — 8,504,018 8,504,018 Net change in unrealized appreciation on foreign currency translations — — — 14,588 14,588 Benefit for taxes on net realized loss on investments — — — 2,221 2,221 Distributions from net investment income — — — (10,625,512) (10,625,512) Issuance of common stock, net of offering costs(1) 1,058,366 1,058 14,263,441 — 14,264,499 Balances at September 30, 2024 27,039,364 $ 27,039 $ 375,430,445 $ (9,172,197) $ 366,285,287 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 Net investment income — — — 9,561,227 9,561,227 Net realized loss on investments — — — (860,027) (860,027) Net realized loss on foreign currency translations — — — (20,003) (20,003) Net change in unrealized appreciation on investments — — — 1,433,667 1,433,667 Net change in unrealized appreciation on foreign currency translations — — — 30,546 30,546 Distributions from net investment income — — — (11,363,618) (11,363,618) Issuance of common stock, net of offering costs(1) 278,945 279 3,822,637 — 3,822,916 Balances at June 30, 2025 28,416,148 $ 28,416 $ 392,309,339 $ (16,966,865) $ 375,370,890 Net investment income — — — 9,135,441 9,135,441 Net realized gain on investments — — — 2,867,155 2,867,155 Net realized loss on foreign currency translations — — — (9,422) (9,422) Loss on debt extinguishment — — — (164,762) (164,762) Net change in unrealized depreciation on investments — — — (5,136,059) (5,136,059) Net change in unrealized depreciation on foreign currency translations — — — (325) (325) Distributions from net investment income — — — (11,434,413) (11,434,413) Issuance of common stock, net of offering costs(1) 531,106 531 7,101,291 — 7,101,822 Balances at September 30, 2025 28,947,254 $ 28,947 $ 399,410,630 $ (21,709,250) $ 377,730,327 STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) For the nine months ended September 30, 2025 September 30, 2024 Cash Flows from Operating Activities Net increase in net assets resulting from operations $ 21,830,983 $ 37,153,553 Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: Purchases of investments (141,983,167) (112,624,812) Proceeds from sales and repayments of investments 85,635,632 87,308,914 Net change in unrealized depreciation (appreciation) on investments 2,509,099 (26,435,927) Net change in unrealized appreciation on foreign currency translations (37,811) (5,099) Increase in investments due to PIK (3,870,717) (2,490,856) Amortization of premium and accretion of discount, net (2,172,972) (2,045,992) Deferred tax benefit — (188,893) Amortization of loan structure fees 954,033 825,891 Amortization of deferred financing costs 447,751 335,345 Amortization of discount on Notes Payable 63,395 — Amortization of loan fees on SBA-guaranteed debentures 553,695 784,763 Net realized loss on investments 3,960,093 21,689,864 Loss on debt extinguishment 164,762 — Changes in other assets and liabilities Increase in interest receivable (2,099,921) (1,389,856) Increase in income tax receivable (220,233) (228,663) Increase in other receivables (11,116) (25,000) Increase in related party receivables (18,813) — Decrease in prepaid expenses 385,232 349,950 Increase in management fees payable 367,196 1,041,018 (Decrease) increase in income incentive fees payable (467,527) 269,396 Increase (decrease) in administrative services payable 113,626 (1,118) Increase (decrease) in interest payable 631,032 (3,988,133) Increase in related party payable 136,535 1,898,854 Increase in unearned revenue 92,011 152,623 (Decrease) increase in other accrued expenses and liabilities (445,942) 718,139 Net Cash (Used) Provided in Operating Activities $ (33,483,144) $ 3,103,961 Cash Flows from Financing Activities Proceeds from the issuance of common stock $ 20,588,960 $ 40,370,901 Sales load for common stock issued (308,998) (606,145) Offering costs paid for common stock issued (417,138) (243,067) Stockholder distributions paid (33,689,984) (26,718,082) Proceeds from issuance of Notes Payable 125,000,000 — Repayment of Notes Payable (50,000,000) — Premium from issuance of Notes Payable 648,000 — Discount from issuance of Notes Payable (770,250) — Financing costs paid on Notes Payable (2,475,306) — Repayments of SBA-guaranteed debentures (26,000,000) — Financing costs paid on Credit Facility (1,525,014) (101,348) Borrowings under Credit Facility 198,900,000 122,400,000 Repayments of Credit Facility (207,501,700) (125,751,700) Net Cash Provided by Financing Activities $ 22,448,570 $ 9,350,559 Net (Decrease) Increase in Cash and Cash Equivalents $ (11,034,574) $ 12,454,520 Cash and Cash Equivalents Balance at Beginning of Period $ 20,058,594 $ 26,125,741 Cash and Cash Equivalents Balance at End of Period $ 9,024,020 $ 38,580,261 Supplemental and Non-Cash Activities Cash paid for interest expense $ 24,940,287 $ 25,882,607 Income and excise tax paid 1,664,417 1,533,611 Exchange of investments 1,663,301 8,256,411 Reconciliation of Core Net Investment Income (1) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net investment income $9,135,441 $10,259,690 $28,485,477 $32,288,267 Income tax expense 515,686 360,192 1,444,184 1,304,948 Core net investment income $9,651,127 $10,619,882 $29,929,661 $33,593,215 Per share amounts: Net investment income per share $0.32 $0.39 $1.01 $1.29 Core net investment income per share $0.34 $0.40 $1.06 $1.34 Reconciliation of Realized Net Investment Income (2) (Unaudited) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net investment income $9,135,441 $10,259,690 $28,485,477 $32,288,267 Net realized gain (loss) on investments 2,867,155 (3,297,615) (3,960,093) (21,689,864) Net realized loss on foreign currency translation (9,422) (22,095) (59,080) (76,990) Benefit for taxes on net realized loss on investments — 2,221 — 2,221 Loss on debt extinguishment (164,762) — (164,762) — Total realized net investment income $11,828,412 $6,942,201 $24,301,542 $10,523,634 Per share amounts: Net investment income per share $0.32 $0.39 $1.01 $1.29 Realized net investment income per share $0.42 $0.26 $0.86 $0.42 SOURCE Stellus Capital Investment Corporation

Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025

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