What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-03 compared with 2025-03-04 · 606 added, 546 removed, 1556 unchanged (43% of the section changed)

27 unchanged sentences

Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

Such procedures also included confirmation of investments owned as of December 31, 2024 by correspondence with the custodians, agent banks, portfolio companies, or by other appropriate auditing procedures where replies were not received.

Such procedures also included confirmation of investments owned as of December 31, 2025 and 2024, by correspondence with the custodians, agent banks, portfolio companies, or by other appropriate auditing procedures.

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

45 unchanged sentences

Revolving lines of credit 55,450 68,350

SBA debentures (net of deferred debt issuance costs of $ 0 and $ 20 , respectively)

Unsecured Notes (net of discounts and deferred debt issuance costs of $ 2,812 and $ 1,688 , respectively)

23 unchanged sentences

Non-control/non-affiliate investments $ 37,017 $ 41,699 $ 53,208

Control investments — — 98

Affiliate investments 5 — —

Total interest income 37,022 41,699 53,208

2 unchanged sentences

Affiliate investments 1,407 1,098 1,136

Control investments — — 43

Total payment-in-kind interest and dividend income:

3 unchanged sentences

Affiliate investments 273 2,984 630

Control investments — — 45

Total dividend income 546 3,027 659

Non-control/non-affiliate investments 404 505 479

Control investments — — 6

Total fee income 505 479 1,073

Total investment income 40,691 47,964 56,943

2 unchanged sentences

Income Incentive Fee 1,758 4,178 5,040

Capital Gains Fee — — ( 1,916 )

Professional fees 1,623 1,630 1,681

6 unchanged sentences

Net realized loss on affiliate investments — ( 6,506 ) —

Net realized gain (loss) on control investments — ( 10,516 ) 278

Net realized loss on control investments — — ( 10,516 )

Income tax (expense) benefit on net realized gains on investments 1 ( 9 ) ( 51 )

1 unchanged sentence

Net unrealized appreciation (depreciation) on affiliate investments ( 16,515 ) 25,326 ( 10,961 )

Net unrealized appreciation (depreciation) on control investments — 9,056 ( 5,648 )

Deferred tax (expense) benefit on net unrealized appreciation (depreciation) ( 510 ) ( 69 ) 27

Net unrealized appreciation on control investments — — 9,056

Deferred tax expense on net unrealized appreciation ( 311 ) ( 510 ) ( 69 )

Net gain (loss) on investments ( 44,973 ) 11,730 ( 20,412 )

17 unchanged sentences

Loss on extinguishment of debt — — — — — ( 213 ) ( 213 )

Tax reclassifications of permanent differences — — — — ( 101 ) 101 —

Distributions to stockholders:

Common stock issued from reinvestment of stockholder distributions — — 17,919 — 179 — 179

Dividends declared — — — — — ( 17,954 ) ( 17,954 )

Repurchase of common stock — — ( 42,254 ) — ( 350 ) — ( 350 )

Net decrease for the year ended December 31, 2023 — — — — — ( 18,419 ) ( 18,419 )

Balances at December 31, 2023 — $ — 13,398,078 $ 134 $ 184,841 $ ( 22,971 ) $ 162,004

Net decrease in net assets resulting from operations:

Net investment income — — — — — 20,160 20,160

Net realized losses on investments, net of taxes — — — — — ( 11,405 ) ( 11,405 )

Net unrealized depreciation on investments, net of deferred taxes — — — — — ( 9,007 ) ( 9,007 )

Loss on extinguishment of debt — — — — — ( 213 ) ( 213 )

Dividends declared — — — — — ( 17,954 ) ( 17,954 )

Net decrease for the year ended December 31, 2023 — — — — — ( 18,419 ) ( 18,419 )

Balances at December 31, 2023 — $ — 13,398,078 $ 134 $ 184,841 $ ( 22,971 ) $ 162,004

Net increase in net assets resulting from operations:

6 unchanged sentences

Balances at December 31, 2024 — $ — 13,398,078 $ 134 $ 184,912 $ ( 12,821 ) $ 172,225

Net decrease in net assets resulting from operations:

Net investment income — — — — — 12,384 12,384

Net realized losses on investments, net of taxes — — — — — ( 12,158 ) ( 12,158 )

Net unrealized depreciation on investments, net of deferred taxes — — — — — ( 32,815 ) ( 32,815 )

Loss on extinguishment of debts — — — — — ( 504 ) ( 504 )

Tax reclassifications of permanent differences — — — — ( 1 ) 1 —

Distributions declared:

Distributions from net investment income — — — — — ( 5,228 ) ( 5,228 )

Distributions from tax return of capital — — — — ( 10,716 ) — ( 10,716 )

Net decrease for the year ended December 31, 2025 — — — — ( 10,717 ) ( 38,320 ) ( 49,037 )

Balances at December 31, 2025 — $ — 13,398,078 $ 134 $ 174,195 $ ( 51,141 ) $ 123,188

See Notes to Consolidated Financial Statements.

7 unchanged sentences

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:

Net realized loss on investments 17,112 11,354 1,885

Net realized loss on investments, net of taxes 12,158 17,121 11,405

Net unrealized (appreciation) depreciation on investments, net of deferred taxes 32,815 ( 28,851 ) 9,007

Income tax expense (benefit) from net realized gains on investments 9 51 ( 155 )

Loss on extinguishment of debt 504 — 213

22 unchanged sentences

Repayments under revolving lines of credit ( 40,350 ) ( 39,650 ) ( 40,750 )

Proceeds from Unsecured Notes issuances, net of commissions and discounts 91,870 — —

Redemption of Unsecured Notes ( 109,000 ) — —

Repayments of SBA debentures — ( 31,920 ) ( 19,000 )

1 unchanged sentence

Net cash used in financing activities ( 46,348 ) ( 72,291 ) ( 51,154 )

Net increase (decrease) in cash ( 39,281 ) 30,412 ( 28,111 )

Cash — beginning of year 45,349 14,937 43,048

Cash — end of year $ 6,068 $ 45,349 $ 14,937

Net increase (decrease) in cash and cash equivalents ( 2,709 ) ( 39,281 ) 30,412

Cash and cash equivalents — beginning of year 6,068 45,349 14,937

Cash and cash equivalents — end of year $ 3,359 $ 6,068 $ 45,349

Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for interest $ 15,660 $ 18,189 $ 15,214

Reinvestment of stockholder distributions — — 179

Cash paid for interest $ 15,865 $ 15,660 $ 18,189

Cash paid for taxes 21 182 31

Supplemental Disclosure of Non-Cash Activities:

Reclassification of deferred offering costs from the issuance of Unsecured Notes $ 52 $ — $ —

See Notes to Consolidated Financial Statements.

8 unchanged sentences

Non-control/Non-affiliate Investments

Debt and Equity Investments

12 Interactive, LLC (D/B/A PerkSpot) (21) Software Publishers

First Lien Debt 9.42 % SOFR+ 5.75 % 9/5/2025 9/5/2030 $ 1,453 $ 1,441 $ 1,453 1.2 %

First Lien Debt 9.42 % SOFR+ 5.75 % 9/5/2025 3/5/2027 1,120 1,110 1,120 0.9 %

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 5.75 % 9/5/2025 9/5/2030 — ( 3 ) ( 3 ) —

2,573 2,548 2,570 2.1

24 Seven Holdco, LLC (15) Temporary Help Services

8 unchanged sentences

First Lien Debt 8.59 % SOFR+ 4.75 % 12/10/2024 4/4/2030 2,219 2,183 2,212 1.8

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 5.75 % 12/10/2024 4/4/2030 — ( 9 ) ( 9 ) —

First Lien Debt (Delayed Draw) (5) 8.57 % SOFR+ 4.75 % 12/10/2024 4/4/2030 238 230 233 0.2

2,457 2,413 2,445 2.0

Asurion, LLC (14) (15) Communication Equipment Repair and Maintenance

First Lien Debt 7.97 % SOFR+ 4.25 % 10/28/2025 9/19/2030 1,496 1,493 1,498 1.2

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Avison Young Inc.

4 unchanged sentences

SOFR+ 7.35 % 12/18/2025 12/12/2027 231 231 234 0.2

First Lien Debt (11) (15) 5.49 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 1,669 1,670 1,452 1.2

First Lien Debt (6) (10) (11) (15) 5.60 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 329 213 249 0.2

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 8.50 % 12/18/2025 12/12/2027 — — — —

Common Equity ( 1,185 Class B units) (10) (13) (15)

8 unchanged sentences

8,950 8,892 447 0.4

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 11.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 3,667 3,407 3,546 2.1

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Boca Home Care Holdings, Inc.

1 unchanged sentence

First Lien Debt (15) 10.59 % SOFR+ 6.50 % 2/25/2022 2/25/2027 9,018 8,983 9,017 7.3

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.50 % 2/25/2022 2/25/2027 — ( 7 ) ( 9 ) —

First Lien Debt (Revolver) (5) 10.59 % SOFR+ 6.50 % 2/25/2022 2/25/2027 226 222 226 0.2

Common Equity ( 1,290 Class A units) (10)

5 unchanged sentences

First Lien Debt (15) 10.57 % SOFR+ 6.75 % 11/3/2023 12/30/2027 3,133 3,086 2,971 2.4

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.75 % 11/3/2023 12/30/2027 — ( 6 ) ( 4 ) —

First Lien Debt (Revolver) (5) 10.57 % SOFR+ 6.75 % 11/3/2023 12/30/2027 112 107 96 0.1

3,245 3,193 3,067 2.5

2 unchanged sentences

3/27/2020 703 33 —

Convergint Technologies Holdings, LLC Security Systems Services (except Locksmiths)

Second Lien Debt 11.22 % SOFR+ 6.75 % 9/28/2018 3/30/2029 5,938 5,878 5,938 3.4

Creation Technologies Inc.

(8) (15) Bare Printed Circuit Board Manufacturing

First Lien Debt 10.35 % SOFR+ 5.50 % 9/24/2021 10/5/2028 1,950 1,942 1,915 1.1

East West Manufacturing LLC (15) Fluid Power Pump and Motor Manufacturing

First Lien Debt 10.11 % SOFR+ 5.75 % 2/11/2022 12/22/2028 1,910 1,899 1,910 1.1

Envocore Holding, LLC (F/K/A LRI Holding, LLC) (17) Electrical Contractors and Other Wiring Installation Contractors

First Lien Debt 7.50 % N/A 6/30/2017 12/31/2025 6,231 6,231 6,231 3.6

First Lien Debt (Revolver) (5) 7.50 % N/A 11/29/2021 12/31/2025 899 899 899 0.5

Second Lien Debt (6) (10) 10.00 % PIK

N/A 6/30/2017 12/31/2026 8,677 6,584 2,018 1.2

Equity Participation Rights (7) (10) 12/31/2021 4,722 — —

15,807 18,436 9,148 5.3

Excelin Home Health, LLC Home Health Care Services

Second Lien Debt 18.00 % PIK

N/A 10/25/2018 10/1/2026 5,955 5,891 4,913 2.9

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

First Brands Group, LLC (14) (15) Other Motor Vehicle Parts Manufacturing

First Lien Debt 9.85 % SOFR+ 5.00 % 8/23/2024 3/30/2027 $ 3,343 $ 3,300 $ 3,148 1.8 %

First Lien Debt 9.85 % SOFR+ 5.00 % 8/26/2024 3/30/2027 1,632 1,614 1,533 0.9

4,975 4,914 4,681 2.7

GGC Aerospace Topco L.P.

(10) Other Aircraft Parts and Auxiliary Equipment Manufacturing

Common Equity ( 368,852 Class A units)

12/29/2017 450 — —

Common Equity ( 40,984 Class B units)

Envocore Holding, LLC (F/K/A LRI Holding, LLC) (17) Electrical Contractors and Other Wiring Installation Contractors

First Lien Debt 7.50 % N/A 6/30/2017 12/31/2027 $ 6,167 $ 6,167 $ 6,167 5.0 %

First Lien Debt (Revolver) (5) n/m (18) N/A 11/29/2021 12/31/2027 — — — —

Second Lien Debt (6) (10) 10.00 % PIK

N/A 6/30/2017 12/31/2028 9,590 6,584 2,382 1.9

Equity Participation Rights (7) (10) 12/31/2021 4,722 — —

15,757 17,473 8,549 6.9

Excelin Home Health, LLC (6) Home Health Care Services

Second Lien Debt 18.00 % PIK

N/A 10/25/2018 10/1/2026 7,119 6,765 4,079 3.3

GoTo Group (F/K/A LogMeIn, Inc.) (14) (15) Data Processing, Hosting, and Related Services

5 unchanged sentences

First Lien Debt 10.52 % SOFR+ 6.75 % 7/20/2022 8/1/2029 8,908 8,763 6,976 5.7

Honor HN Buyer Inc Services for the Elderly and Persons with Disabilities

Honor HN Buyer Inc.

Services for the Elderly and Persons with Disabilities

First Lien Debt (15) 9.57 % SOFR+ 5.75 % 10/15/2021 10/15/2027 3,132 3,114 3,132 2.5

First Lien Debt (15) 9.57 % SOFR+ 5.75 % 10/15/2021 10/15/2027 1,981 1,959 1,981 1.6

First Lien Debt (Revolver) (5) 12.25 % Prime+ 4.75 % 10/15/2021 10/15/2027 95 88 95 0.1

First Lien Debt (15) 9.57 % SOFR+ 5.75 % 3/31/2023 10/15/2027 2,204 2,182 2,204 1.8

First Lien Debt (Revolver) (5) 11.50 % Prime+ 4.75 % 10/15/2021 10/15/2027 47 45 47 —

First Lien Debt (Delayed Draw) (5) (15) n/m (18) SOFR+ 5.75 % 10/15/2024 10/15/2026 — ( 10 ) ( 10 ) —

3 unchanged sentences

Inergex Holdings, LLC (19) Other Computer Related Services

First Lien Debt 11.47 % cash / 2.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2026 14,784 14,658 14,784 8.6

First Lien Debt (Revolver) 11.74 % cash / 2.00 % PIK

SOFR+ 7.00 % 10/1/2018 10/1/2026 2,344 2,344 2,344 1.4

First Lien Debt 10.82 % SOFR+ 7.00 % 10/1/2018 10/1/2026 14,616 14,562 14,616 12.0

First Lien Debt (Revolver) 10.82 % SOFR+ 7.00 % 10/1/2018 10/1/2026 2,344 2,344 2,344 1.9

16,960 16,906 16,960 13.9

7 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Ivanti Software, Inc.

(14) (15) Software Publishers

Integrated Energy Services, LLC Computer Systems Design Services

First Lien Debt (15) 9.20 % SOFR+ 5.50 % 12/18/2025 12/19/2030 $ 525 $ 516 $ 516 0.4 %

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 5.50 % 12/18/2025 12/19/2030 — ( 5 ) ( 5 ) —

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 5.50 % 12/18/2025 12/19/2030 — ( 3 ) ( 3 ) —

525 508 508 0.4

JP Intermediate B, LLC Drugs and Druggists' Sundries Merchant Wholesalers

First Lien Debt 14.00 % Prime+ 6.50 % 1/14/2021 11/20/2027 4,638 4,491 2,102 1.2

First Lien Debt 10.67 % SOFR+ 7.00 % 10/2/2025 9/30/2030 335 335 335 0.3

First Lien Debt (11) 5.17 % cash / 4.00 % PIK

SOFR+ 5.50 % 1/14/2021 3/31/2031 1,499 1,499 1,474 1.2

Common Equity ( 12,663 units) (10) (15)

9/30/2025 2,992 — —

1,834 4,826 1,809 1.5

Kreg LLC (20) Other Ambulatory Health Care Services

1 unchanged sentence

SOFR+ 6.25 % 12/20/2021 12/20/2026 17,256 17,233 16,773 13.6

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.25 % 12/20/2021 12/20/2026 — ( 4 ) ( 66 ) —

First Lien Debt (Revolver) (5) 10.09 % SOFR+ 6.25 % 12/20/2021 12/20/2026 1,337 1,335 1,300 1.1

18,593 18,568 18,073 14.7

M2S Group Intermediate Holdings Inc.

(14) (15) Plastics Packaging Film and Sheet (including Laminated) Manufacturing

First Lien Debt 8.59 % SOFR+ 4.75 % 10/28/2025 8/25/2031 1,500 1,483 1,493 1.2

Medrina LLC All Other Outpatient Care Centers

First Lien Debt (15) 9.69 % SOFR+ 6.00 % 10/20/2023 10/20/2029 2,190 2,155 2,190 1.8

First Lien Debt (Delayed Draw) (5) (15) n/m (18) SOFR+ 6.00 % 10/20/2023 10/20/2029 — ( 1 ) 4 —

First Lien Debt (15) 10.22 % SOFR+ 6.00 % 10/20/2023 10/20/2029 367 364 367 0.3

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.00 % 10/20/2023 10/20/2029 — ( 5 ) — —

3 unchanged sentences

SOFR+ 6.25 % 5/17/2022 5/17/2027 2,727 2,708 2,645 2.1

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2025

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

One GI LLC Offices of Other Holding Companies

8 unchanged sentences

9/30/2017 231 1,181 1.0

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Redstone Holdco 2 LP (F/K/A RSA Security) (15) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

PSB Group, LLC (19) Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)

First Lien Debt (15) 10.47 % SOFR+ 6.75 % 4/17/2025 4/17/2030 7,882 7,848 7,879 6.4

Second Lien Debt 12.60 % SOFR+ 7.75 % 4/16/2021 4/27/2029 4,450 4,415 2,563 1.5

6,165 6,125 3,602 2.1

RPLF Holdings, LLC (10) (13) Software Publishers

Common Equity ( 345,339 Class A units)

First Lien Debt (Revolver) (5) 10.47 % SOFR+ 6.75 % 4/17/2025 4/17/2030 406 401 405 0.3

8,288 8,249 8,284 6.7

RumbleOn, Inc.

(8) (15) Other Industrial Machinery Manufacturing

Redstone Holdco 2 LP (F/K/A RSA Security) (15) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

First Lien Debt 8.85 % SOFR+ 4.75 % 4/16/2021 4/27/2028 1,715 1,711 1,289 1.0

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) (8) (15) Other Industrial Machinery Manufacturing

First Lien Debt (11) 10.85 % Cash / 1.00 % PIK

5 unchanged sentences

3,104 3,276 3,061 2.6

Sentry Centers Holdings, LLC (10) (13) Other Professional, Scientific, and Technical Services

Preferred Equity ( 1,603 Series B units)

9/4/2020 160 1 —

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 7.96 % SOFR+ 3.50 % 3/25/2021 4/3/2028 1,785 1,776 1,605 0.9

SS Acquisition, LLC Sports and Recreation Instruction

First Lien Debt 10.35 % SOFR+ 6.00 % 12/20/2024 12/20/2029 12,464 12,402 12,402 7.2

First Lien Debt (15) 10.35 % SOFR+ 6.00 % 12/20/2024 12/20/2029 4,500 4,478 4,478 2.6

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.00 % 12/20/2024 12/20/2029 — ( 9 ) ( 9 ) —

RPLF Holdings, LLC (10) (13) Software Publishers

Common Equity ( 345,339 Class A units)

1/17/2018 — 1,462 1.2

7 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

SSJA Bariatric Management LLC (10) (15) (19) Offices of Physicians, Mental Health Specialists

First Lien Debt (6) 9.73 % SOFR+ 5.25 % 8/26/2019 4/30/2025 $ 10,649 $ 9,563 $ 6,624 3.8 %

Sentry Centers Holdings, LLC (10) (13) Convention and Trade Show Organizers

Preferred Equity ( 1,603 Series B units)

9/4/2020 $ 160 $ 1 — %

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 7.44 % SOFR+ 3.50 % 3/25/2021 4/3/2028 $ 1,518 1,513 1,096 0.9

SS Acquisition, LLC (19) Sports and Recreation Instruction

First Lien Debt (15) 9.42 % SOFR+ 5.75 % 12/20/2024 12/20/2029 16,795 16,728 16,828 13.6

First Lien Debt (Revolver) (5) 9.42 % SOFR+ 5.75 % 12/20/2024 12/20/2029 500 493 500 0.4

Common Equity ( 867,591 Class F units) (13)

17,295 17,221 17,328 14.0

14,996 13,462 9,328 5.3

Staples, Inc.

1 unchanged sentence

First Lien Debt 9.60 % SOFR+ 5.75 % 5/23/2024 9/4/2029 2,539 2,468 2,418 2.0

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Common Equity ( 670 Class A shares)

10/11/2019 670 695 0.6

Tolemar Acquisition, Inc.

4 unchanged sentences

15,009 14,946 10,645 8.6

TruGreen Limited Partnership Landscaping Services

Second Lien Debt 13.35 % SOFR+ 8.50 % 5/13/2021 11/2/2028 4,500 4,573 4,293 2.5

United Biologics Holdings, LLC (10) (13) Medical Laboratories

2 unchanged sentences

(F/K/A KNS Acquisition Corp.) (11) (15) Electronic Shopping and Mail-Order Houses

First Lien Debt 9.48 % SOFR+ 5.00 % 12/19/2024 4/19/2030 2,844 2,844 2,844 1.7

First Lien Debt 10.72 % SOFR+ 6.25 % 4/16/2021 10/19/2030 4,354 4,354 4,354 2.5

7,198 7,198 7,198 4.2

First Lien Debt 8.33 % cash / 1.75 % PIK

SOFR+ 6.25 % 4/16/2021 10/19/2030 4,361 4,361 3,738 3.0

Total Debt and Equity Investments $ 216,070 $ 223,115 $ 180,465 146.7 %

Structured Finance Securities (8)

Apex Credit CLO 2020 Ltd.

Subordinated Notes 18.21 % N/A 11/16/2020 4/20/2035 $ 11,080 $ 9,388 $ 7,717 4.5 %

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Structured Finance Securities (8)

Apex Credit CLO 2020 Ltd.

2 unchanged sentences

Subordinated Notes 6.51 % N/A 5/28/2021 7/18/2034 8,630 5,585 3,170 2.6

Apex Credit CLO 2022-1 Ltd.

Subordinated Notes 20.68 % N/A 4/28/2022 10/22/2038 17,074 9,807 7,929 6.4

Battalion CLO XI Ltd.

3 unchanged sentences

Brightwood Capital MM CLO 2023-1, Ltd.

Mezzanine Debt - Class E 15.02 % SOFR+ 10.36 % 9/28/2023 10/15/2035 2,133 1,965 2,177 1.3

Subordinated Notes 24.50 % N/A 9/28/2023 10/15/2035 5,494 4,273 4,493 3.6

7,627 6,924 6,638 3.9

Canyon CLO 2019-1, Ltd.

Subordinated Notes 21.30 % N/A 8/22/2024 7/15/2037 18,453 9,581 8,539 6.9

Dryden 76 CLO, Ltd.

CBAMR 2017-1, Ltd.

Subordinated Notes 21.02 % N/A 8/12/2025 1/20/2038 5,100 1,880 1,647 1.3

2 unchanged sentences

Subordinated Notes 18.54 % N/A 12/19/2024 1/15/2038 3,500 3,048 2,727 2.2

Madison Park Funding XXIII, Ltd.

Subordinated Notes 12.68 % N/A 1/8/2020 7/27/2047 10,000 4,559 4,140 2.4

Madison Park Funding XXIX, Ltd.

Subordinated Notes 6.34 % N/A 12/22/2020 10/18/2047 9,500 4,866 3,604 2.1

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Monroe Capital MML CLO X, Ltd.

Mezzanine Debt - Class E-R 13.27 % SOFR+ 8.75 % 4/22/2022 5/20/2034 $ 1,000 $ 978 $ 1,000 0.6 %

Octagon Investment Partners 39, Ltd.

Subordinated Notes 0.00 % N/A 1/23/2020 10/20/2030 7,000 2,997 1,234 0.7

Park Avenue Institutional Advisers CLO Ltd 2021-1

Mezzanine Debt - Class D 12.18 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 986 998 0.6

THL Credit Wind River 2019‐3 CLO Ltd.

Madison Park Funding XXIX, Ltd.

Subordinated Notes 17.42 % N/A 12/22/2020 3/25/2038 $ 10,971 $ 5,223 $ 3,697 3.0 %

Trinitas CLO VIII, Ltd.

(4) (9) (10) (16)

Subordinated Notes 0.00 % N/A 3/4/2021 7/20/2117 5,200 2,318 163 0.1

1 unchanged sentence

Mezzanine Debt - Class E 11.58 % SOFR+ 7.70 % 4/18/2022 7/20/2035 3,000 2,963 2,607 2.1

Voya CLO 2024-7, Ltd.

Subordinated Notes 16.31 % N/A 1/7/2025 1/20/2038 4,275 3,886 3,581 2.9

Total Structured Finance Securities $ 123,327 $ 77,633 $ 61,605 49.8 %

5 unchanged sentences

8/5/2015 $ 9,613 $ 9,201 7.5 %

Preferred Equity ( 2,750 Series C shares) 14 % PIK

8/21/2025 2,890 2,884 2.3

Common Equity ( 11,273 shares) (10)

6/28/2016 104 — —

Warrants (warrants to purchase 224 Series A preferred equity shares) (10)

8/21/2025 8/20/2035 (12) — — —

Warrants (warrants to purchase 1,946 shares of common equity) (10)

8/21/2025 8/20/2035 (12) — — —

12,607 12,085 9.8

DRS Imaging Services, LLC (10) (13) (19) Data Processing, Hosting, and Related Services

1 unchanged sentence

3/8/2018 1,135 2,671 2.2

Pfanstiehl Holdings, Inc.

(19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

1/1/2014 217 79,421 64.5

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Pfanstiehl Holdings, Inc.

(19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

SSJA Bariatric Management LLC (19) Offices of Physicians, Mental Health Specialists

First Lien Debt (5) 9.24 % SOFR+ 5.25 % 10/31/2025 10/31/2028 $ 234 $ 232 $ 235 0.2 %

First Lien Debt (15) 9.24 % PIK

SOFR+ 5.25 % 12/31/2020 10/31/2028 3,804 3,804 3,804 3.1

Common Equity ( 52,763 Class A units) (15)

10/31/2025 — 9,657 1,729 1.4

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Common Equity ( 1,595,238 Class A shares)

4,038 13,693 5,768 4.7

1 unchanged sentence

Total Investments $ 343,435 $ 328,400 $ 342,015 277.6 %

Cash Equivalents (23)

First American Treasury Obligations Fund Class Z 3.66 % N/A $ 74 $ 74 $ 74 0.1 %

Morgan Stanley Institutional Liquidity Funds - Government Portfolio Advisory Class 3.48 % N/A 235 235 235 0.2 %

Total Cash Equivalents $ 309 $ 309 $ 309 0.3 %

Total Investments and Cash Equivalents $ 343,744 $ 328,709 $ 342,324 277.9 %

(1) Equity ownership may be held in shares or units of companies affiliated with the portfolio company.

10 unchanged sentences

The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans.

(6) Investment was on non-accrual status as of December 31, 2024, meaning the Company suspended recognition of all or a portion of income on the investment.

(6) Investment was on non-accrual status as of December 31, 2025.

See Note 2 for further details.

5 unchanged sentences

The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation.

The estimated effective yield and investment cost may ultimately not be realized.

Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments.

(10) Non-income producing.

OFS Capital Corporation and Subsidiaries

2 unchanged sentences

(Dollar amounts in thousands)

estimated effective yield and investment cost may ultimately not be realized.

(10) Non-income producing.

The Company has not recognized income on the security during the prior twelve-month period preceding the period-end date.

(11) The interest rate on these investments contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision.

10 unchanged sentences

5.20 % to 11.05 %

Inergex Holdings, LLC First Lien Debt 2.00 % 0 % to 2.00 %

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

5.49 % to 11.99 %

Inergex Holdings, LLC First Lien Debt (Revolver) 2.00 % 0 % to 2.00 %

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

5.60 % to 12.10 %

JP Intermediate B, LLC First Lien Debt 4.00 % 0 % to 4.00 %

5.17 % to 9.17 %

Kreg, LLC First Lien Debt 0.50 % 0 % to 0.50 %

10.07 % to 10.57 %

RumbleOn, Inc.

First Lien Debt 1.50 % 0 % to 1.50 %

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) First Lien Debt 1.00 % 0 % to 1.00 %

10.85 % to 11.85 %

RumbleOn, Inc.

First Lien Debt 1.50 % 0 % to 1.50 %

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) First Lien Debt 1.00 % 0 % to 1.00 %

10.85 % to 11.85 %

(F/K/A KNS Acquisition Corp.) First Lien Debt 1.75 % 0 % to 1.75 %

8.33 % to 10.08 %

(12) Represents expiration date of the warrants.

(13) All or portion of investment held by a wholly owned subsidiary subject to income tax.

(13) All or a portion of investment held by a wholly owned subsidiary subject to income tax.

(14) Fair value was determined by reference to observable inputs other than quoted prices in active markets and are considered Level 2 under GAAP.

See Note 5 for further details.

(15) Investments (or portion thereof) held by OFSCC-FS.

(15) Investments (or a portion thereof) held by OFSCC-FS.

These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.

2 unchanged sentences

(17) The Company holds at least one seat on the portfolio company’s board of directors.

(18) Not meaningful as there is no outstanding balance on the revolver or delayed draw loan.

(18) Not meaningful as there is no outstanding balance on the revolver or delayed draw facility.

The Company generally earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

1 unchanged sentence

(20) Portfolio company at fair value represents greater than 5% of total assets at December 31, 2025.

(21) The Company has the right to receive certain information provided to the board of directors.

(22) These investments became contractually due on December 22, 2025.

The lending group has entered into a forbearance agreement extending the maturity date of the investments.

During this period, the Company continues to accrue interest and receive principal amortization payments on the investments.

(23) Represents cash equivalents held in a money market fund as of December 31, 2025.

The Company also had cash deposits of $ 3,050 as of December 31, 2025.

See Notes to Consolidated Financial Statements.

10 unchanged sentences

First Lien Debt 10.50 % SOFR+ 6.00 % 1/28/2022 11/16/2027 $ 8,730 $ 8,698 $ 8,730 5.1 %

Advantage Sales & Marketing Inc.

(F/K/A Karman Buyer Corp) (14) (15) Advertising Agencies

First Lien Debt 10.18 % SOFR+ 4.50 % 3/2/2022 10/28/2027 2,260 2,238 2,249 1.4

AIDC IntermediateCo 2, LLC (15) Computer Systems Design Services

4 unchanged sentences

First Lien Debt 9.98 % SOFR+ 5.50 % 3/2/2021 2/10/2027 3,691 3,688 2,596 1.5

All Star Auto Lights, Inc.

(4) (15) (20) Motor Vehicle Parts (Used) Merchant Wholesalers

First Lien Debt 10.97 % SOFR+ 5.50 % 12/19/2019 8/20/2025 22,861 22,719 22,853 14.1

Associated Spring, LLC (15) Spring Manufacturing

First Lien Debt 10.33 % SOFR+ 5.75 % 12/10/2024 4/4/2030 2,276 2,231 2,231 1.3

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 5.75 % 12/10/2024 4/4/2030 — ( 9 ) ( 9 ) —

2,276 2,222 2,222 1.3

Astro One Acquisition Corporation (6) Other Miscellaneous Nondurable Goods Merchant Wholesalers

Second Lien Debt 14.11 % SOFR+ 8.50 % 1/31/2022 9/14/2029 3,000 2,596 110 0.1

Avison Young Inc.

(8) (15) Nonresidential Property Managers

First Lien Debt (15) 12.11 % SOFR+ 6.50 % 11/25/2021 1/31/2026 3,925 3,903 1,063 0.7

First Lien Debt 12.64 % SOFR+ 7.00 % 8/19/2022 1/31/2026 794 757 215 0.1

First Lien Debt (11) 6.15 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 1,564 1,564 1,405 0.8

First Lien Debt (6) (10) (11) 6.15 % cash / 6.50 % PIK

SOFR+ 8.00 % 11/25/2021 3/12/2029 527 474 197 0.1

Common Equity ( 1,185 Class B units) (10) (13)

3/12/2024 1,400 — —

Preferred Equity ( 1,715 Class A units) 12.5 % PIK (10) (13)

3/12/2024 1,269 — —

2,091 4,707 1,602 0.9

BayMark Health Services, Inc.

3 unchanged sentences

8,950 8,882 8,378 4.9

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 11.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 3,667 3,407 3,546 2.1

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

BCPE North Star US Holdco 2, Inc.

(F/K/A Dessert Holdings) Ice Cream and Frozen Dessert Manufacturing

Second Lien Debt 12.72 % SOFR+ 7.25 % 2/2/2022 6/8/2029 $ 1,667 $ 1,645 $ 1,474 0.9 %

Boca Home Care Holdings, Inc.

19 unchanged sentences

First Lien Debt 10.35 % SOFR+ 5.50 % 9/24/2021 10/5/2028 1,950 1,942 1,915 1.1

Diamond Sports Group, LLC (6) (14) (15) Television Broadcasting

Second Lien Debt 10.71 % SOFR+ 5.25 % 11/19/2019 8/24/2026 1,935 1,935 92 0.1

East West Manufacturing LLC (15) Fluid Power Pump and Motor Manufacturing

First Lien Debt 10.11 % SOFR+ 5.75 % 2/11/2022 12/22/2028 1,910 1,899 1,910 1.1

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Electrical Components International, Inc.

Current-Carrying Wiring Device Manufacturing

Second Lien Debt 13.96 % SOFR+ 8.50 % 4/8/2021 6/26/2026 $ 3,679 $ 3,452 $ 3,561 2.2 %

Envocore Holding, LLC (F/K/A LRI Holding, LLC) (17) Electrical Contractors and Other Wiring Installation Contractors

First Lien Debt 7.50 % N/A 6/30/2017 12/31/2025 6,231 6,231 6,231 3.6

First Lien Debt (Revolver) (5) 7.50 % N/A 11/29/2021 12/31/2025 899 899 899 0.5

Second Lien Debt (6) (10) 10.00 % PIK

N/A 6/30/2017 12/31/2026 8,677 6,584 2,018 1.2

First Lien Debt (Revolver) (5) n/m (18) N/A 11/29/2021 12/31/2025 — — — —

Equity Participation Rights (7) (10) 12/31/2021 4,722 — —

3 unchanged sentences

N/A 10/25/2018 10/1/2026 5,955 5,891 4,913 2.9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

First Brands Group, LLC (14) (15) Other Motor Vehicle Parts Manufacturing

First Lien Debt 9.85 % SOFR+ 5.00 % 8/23/2024 3/30/2027 $ 3,343 $ 3,300 $ 3,148 1.8 %

First Lien Debt 9.85 % SOFR+ 5.00 % 8/26/2024 3/30/2027 1,632 1,614 1,533 0.9

4,975 4,914 4,681 2.7

GGC Aerospace Topco L.P.

6 unchanged sentences

First Lien Debt 9.30 % SOFR+ 4.75 % 3/26/2021 4/28/2028 936 936 855 0.5

First Lien Debt 9.30 % SOFR+ 4.75 % 3/26/2021 4/28/2028 1,293 1,292 594 0.3

2,229 2,228 1,449 0.9

Heritage Grocers Group, LLC.

5 unchanged sentences

First Lien Debt (Revolver) (5) 12.25 % Prime+ 4.75 % 10/15/2021 10/15/2027 95 88 95 0.1

First Lien Debt (Delayed Draw) (5) (15) 11.50 % SOFR+ 6.00 % 3/31/2023 10/15/2027 2,706 2,682 2,706 1.7

First Lien Debt (15) 10.23 % SOFR+ 5.75 % 3/31/2023 10/15/2027 4,503 4,469 4,503 2.6

First Lien Debt (Delayed Draw) (5) (15) n/m ( 18 ) SOFR+ 5.75 % 10/15/2024 10/15/2026 — ( 22 ) — —

15,045 14,880 15,045 8.8

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

6 unchanged sentences

17,128 17,002 17,128 10.0

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Ivanti Software, Inc.

2 unchanged sentences

JP Intermediate B, LLC (6) (15) Drugs and Druggists' Sundries Merchant Wholesalers

First Lien Debt 11.14 % SOFR+ 5.50 % 1/14/2021 11/20/2027 4,697 4,513 3,368 2.1

First Lien Debt 14.00 % Prime+ 6.50 % 1/14/2021 11/20/2027 4,638 4,491 2,102 1.2

Kreg LLC Other Ambulatory Health Care Services

11 unchanged sentences

SOFR+ 6.25 % 5/17/2022 5/17/2027 2,741 2,708 2,593 1.5

First Lien Debt (Delayed Draw) (5) n/m (18) SOFR+ 6.25 % 5/17/2022 5/17/2027 — ( 4 ) ( 69 ) —

2,755 2,729 2,528 1.6

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

One GI LLC Offices of Other Holding Companies

1 unchanged sentence

First Lien Debt (15) 11.21 % SOFR+ 6.75 % 12/13/2021 12/22/2025 3,877 3,857 3,764 2.2

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.75 % 12/13/2021 12/22/2025 — ( 14 ) ( 71 ) —

First Lien Debt (Revolver) 11.25 % SOFR+ 6.75 % 12/13/2021 12/22/2025 1,444 1,437 1,403 0.8

12,677 12,614 12,310 7.1

4 unchanged sentences

9/30/2017 499 1,196 0.7

Reception Purchaser LLC (15) Transportation and Warehousing

First Lien Debt 11.50 % SOFR+ 6.00 % 4/28/2022 3/24/2028 2,523 2,495 2,257 1.4

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Redstone Holdco 2 LP (F/K/A RSA Security) (15) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

5 unchanged sentences

1/17/2018 — 1,834 1.1

RumbleOn, Inc.

(15) (21) Other Industrial Machinery Manufacturing

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) (8) (15) Other Industrial Machinery Manufacturing

First Lien Debt (11) 12.10 % Cash / 1.50 % PIK

2 unchanged sentences

SOFR+ 8.75 % 8/31/2021 8/31/2026 787 778 747 0.4

Warrants (warrants to purchase up $ 218,000 in common stock) (10)

Warrants (warrants to purchase up to $ 218,000 in common stock) (10)

8/31/2021 8/14/2028 (12) 200 34 —

3,396 3,527 3,257 1.8

Sentry Centers Holdings, LLC (10) (13) Other Professional, Scientific, and Technical Services

Sentry Centers Holdings, LLC (10) (13) Convention and Trade Show Organizers

Preferred Equity ( 1,603 Series B units)

9/4/2020 160 1 —

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 7.96 % SOFR+ 3.50 % 3/25/2021 4/3/2028 1,785 1,776 1,605 0.9

SS Acquisition, LLC (19) Sports and Recreation Instruction

First Lien Debt (15) 10.35 % SOFR+ 6.00 % 12/20/2024 12/20/2029 16,964 16,880 16,880 9.8

First Lien Debt (Revolver) (5) n/m (18) SOFR+ 6.00 % 12/20/2024 12/20/2029 — ( 9 ) ( 9 ) —

16,964 16,871 16,871 9.8

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Signal Parent, Inc.

(14) (15) New Single-Family Housing Construction (except For-Sale Builders)

First Lien Debt 8.96 % SOFR+ 3.50 % 3/25/2021 4/3/2028 $ 1,803 $ 1,791 $ 1,616 1.0 %

Spear Education Holdings, LLC (15)

First Lien Debt Professional and Management Development Training 13.00 % SOFR+ 7.50 % 2/10/2023 12/15/2027 1,485 1,455 1,484 0.9

SSJA Bariatric Management LLC (10) (15) (19) Offices of Physicians, Mental Health Specialists

3 unchanged sentences

First Lien Debt (Revolver) (6) 9.73 % SOFR+ 5.25 % 8/26/2019 4/30/2025 297 266 185 0.1

Common Equity ( 867,591 Class F units) (13)

4/10/2024 — — —

SS Acquisition, LLC (8) (15) Sports and Recreation Instruction

First Lien Debt 12.41 % SOFR+ 6.75 % 12/30/2021 12/30/2026 3,042 3,023 3,042 1.9

First Lien Debt 13.10 % SOFR+ 7.45 % 12/30/2021 12/30/2026 1,460 1,449 1,460 0.9

14,996 13,462 9,328 5.3

1 unchanged sentence

(14) (15) Business to Business Electronic Markets

First Lien Debt 10.46 % L+ 5.00 % 6/24/2019 4/16/2026 2,870 2,841 2,728 1.7

STS Operating, Inc.

Industrial Machinery and Equipment Merchant Wholesalers

Second Lien Debt 13.46 % SOFR+ 8.00 % 5/15/2018 4/30/2026 9,073 9,072 9,073 5.6

First Lien Debt 10.18 % SOFR+ 5.75 % 5/23/2024 9/4/2029 2,565 2,473 2,458 1.4

Tolemar Acquisition, Inc.

Motorcycle, Bicycle, and Parts Manufacturing

First Lien Debt (15) 11.75 % SOFR+ 6.00 % 10/14/2021 10/14/2026 15,347 15,304 14,334 8.8

First Lien Debt (15) 10.46 % Cash / 1.00 % PIK

SOFR+ 6.00 % 10/14/2021 10/14/2026 15,302 15,248 14,460 8.4

First Lien Debt (Revolver) (5) 10.55 % SOFR+ 6.00 % 10/14/2021 10/14/2026 1,029 1,024 944 0.5

2 unchanged sentences

Second Lien Debt 13.35 % SOFR+ 8.50 % 5/13/2021 11/2/2028 4,500 4,573 4,293 2.5

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

United Biologics Holdings, LLC (10) (13) Medical Laboratories

3 unchanged sentences

First Lien Debt 9.48 % SOFR+ 5.00 % 12/19/2024 4/19/2030 2,844 2,844 2,844 1.7

First Lien Debt 10.72 % SOFR+ 6.25 % 4/16/2021 10/19/2030 4,354 4,354 4,354 2.5

7,198 7,198 7,198 4.2

Total Debt and Equity Investments $ 260,122 $ 263,106 $ 228,367 132.6 %

2 unchanged sentences

Subordinated Notes 18.21 % N/A 11/16/2020 4/20/2035 $ 11,080 $ 9,388 $ 7,717 4.5 %

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2024

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Apex Credit CLO 2021 Ltd.

2 unchanged sentences

Subordinated Notes 13.26 % N/A 4/28/2022 4/22/2033 10,726 8,598 6,213 3.6

Ares L CLO Ltd.

Mezzanine Debt - Class E 11.31 % SOFR+ 5.65 % 2/17/2022 1/15/2032 6,000 5,832 5,474 3.4

Barings CLO 2019-I Ltd.

Mezzanine Debt - Class E 12.52 % SOFR+ 6.86 % 2/23/2022 4/15/2035 8,000 7,918 7,725 4.8

Battalion CLO XI Ltd.

Mezzanine Debt - Class E 11.75 % SOFR+ 6.85 % 4/25/2022 4/24/2034 6,000 5,981 5,659 3.3

BlueMountain CLO XXXV Ltd.

Subordinated Notes 15.30 % N/A 10/30/2024 10/22/2037 5,800 4,270 4,217 2.4

Brightwood Capital MM CLO 2023-1, Ltd.

Mezzanine Debt - Class D 11.85 % SOFR+ 6.46 % 9/28/2023 10/15/2035 915 888 888 0.5

Mezzanine Debt - Class E 15.02 % SOFR+ 10.36 % 9/28/2023 10/15/2035 2,133 1,965 2,177 1.3

1 unchanged sentence

7,627 6,924 6,638 3.9

OFS Capital Corporation and Subsidiaries

Consolidated Schedule of Investments (continued)

December 31, 2023

(Dollar amounts in thousands)

Portfolio Company (1)

Investment Type Industry Interest Rate (2) Spread Above

Index (2) Initial Acquisition Date Maturity Principal

Amount Amortized Cost Fair Value (3) Percent of

Dryden 53 CLO, LTD.

Subordinated Notes - Income 8.04 % N/A 10/26/2020 1/15/2031 $ 2,700 $ 1,280 $ 622 0.3 %

Canyon CLO 2019-1, Ltd.

Subordinated Notes 23.97 % N/A 8/22/2024 7/15/2037 18,453 9,492 10,296 6.0

4,859 2,326 1,119 0.7

Dryden 76 CLO, Ltd.

Subordinated Notes 10.31 % N/A 9/27/2019 10/15/2037 5,352 3,131 2,210 1.3

Flatiron CLO 18, Ltd.

ICG US CLO 2021-3, Ltd.

Subordinated Notes 30.03 % N/A 8/8/2024 10/20/2034 16,750 8,082 9,734 5.7

Subordinated Notes 16.91 % N/A 12/19/2024 1/15/2038 3,500 2,993 2,993 1.7

Madison Park Funding XXIII, Ltd.

3 unchanged sentences

Monroe Capital MML CLO X, Ltd.

Mezzanine Debt - Class E-R 14.12 % SOFR+ 8.75 % 4/22/2022 5/20/2034 1,000 961 967 0.6

Octagon Investment Partners 39, Ltd.

Subordinated Notes 4.98 % N/A 1/23/2020 10/20/2030 7,000 3,962 2,171 1.3

Park Avenue Institutional Advisers CLO Ltd 2021-1

Mezzanine Debt - Class D 12.98 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 982 982 0.6

Redding Ridge 4 Ltd.

Subordinated Notes 7.46 % N/A 3/4/2021 4/15/2030 1,300 910 544 0.3

Regatta XXII Funding Ltd

Mezzanine Debt - Class E 12.61 % SOFR+ 7.19 % 5/6/2022 7/20/2035 3,000 2,977 3,007 1.9

THL Credit Wind River 2019‐3 CLO Ltd.

Subordinated Notes 10.59 % N/A 4/5/2019 4/15/2031 7,000 4,883 2,941 1.8

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

Mezzanine Debt - Class E-R 13.27 % SOFR+ 8.75 % 4/22/2022 5/20/2034 $ 1,000 $ 978 $ 1,000 0.6 %

Octagon Investment Partners 39, Ltd.

Subordinated Notes 0.00 % N/A 1/23/2020 10/20/2030 7,000 2,997 1,234 0.7

Park Avenue Institutional Advisers CLO Ltd 2021-1

Mezzanine Debt - Class D 12.18 % SOFR+ 7.30 % 1/26/2021 1/20/2034 1,000 986 998 0.6

THL Credit Wind River 2019‐3 CLO Ltd.

Subordinated Notes 0.00 % N/A 4/5/2019 4/15/2031 7,000 3,923 1,618 0.9

Trinitas CLO VIII, Ltd.

2 unchanged sentences

Mezzanine Debt - Class E 12.32 % SOFR+ 7.70 % 4/18/2022 7/20/2035 3,000 2,952 2,739 1.6

Wellfleet CLO 2018-2, Ltd.

Subordinated Notes 9.99 % N/A 3/4/2021 10/20/2031 1,000 627 270 0.2

Total Structured Finance Securities $ 137,618 $ 88,983 $ 76,875 44.6 %

11 unchanged sentences

3/8/2018 1,135 1,190 0.7

Master Cutlery, LLC (4) (10) (19) Sporting and Recreational Goods and Supplies Merchant Wholesalers

Subordinated Debt (6) (11) 13.00 % PIK

N/A 4/17/2015 5/25/2024 9,749 4,680 — —

Preferred Equity ( 3,723 Series A units), 8 % PIK

4/17/2015 3,483 — —

Common Equity ( 15,564 units)

4/17/2015 — — —

9,749 8,163 — —

Pfanstiehl Holdings, Inc.

(4) (19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

1/1/2014 217 70,927 43.8

OFS Capital Corporation and Subsidiaries

6 unchanged sentences

Amount Amortized Cost Fair Value (3) Percent of

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Pfanstiehl Holdings, Inc.

(19) (20) Pharmaceutical Preparation Manufacturing

Common Equity ( 400 Class A shares)

1/1/2014 $ 217 $ 89,298 51.8 %

TRS Services, LLC (4) (19) Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Preferred Equity ( 1,937,191 Class A units), 11 % PIK

12/10/2014 97 2,507 1.5

Common Equity ( 3,000,000 units) (10)

12/10/2014 572 1,285 0.8

TalentSmart Holdings, LLC (10) (13) (19) Professional and Management Development Training

Common Equity ( 1,595,238 Class A shares)

10/11/2019 1,595 1,604 0.9

3 unchanged sentences

The Company’s investments are generally classified as “restricted securities” as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.

(2) As of December 31, 2023, the Company held loans with an aggregate fair value of $ 230,185 , or 92 % of the total loan portfolio, that bore interest at a variable rate indexed to LIBOR (L), Prime or SOFR, and reset monthly, quarterly, or semi-annually.

(2) As of December 31, 2024, the Company held loans and mezzanine debt investments with an aggregate fair value of $ 215,559 that bore interest at a variable rate indexed to SOFR or Prime, and reset monthly, quarterly, or semi-annually.

For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect as of December 31, 2024.

2 unchanged sentences

See Note 5 for further details.

(4) Investments (or portion thereof) held by SBIC I LP.

These assets were pledged as collateral of the SBA debentures and could not be pledged under any debt obligation of the Company.

(4) As of December 31, 2024, the effective accretable yield was estimated to be 0 %, as the aggregate amount of projected distributions, including projected distributions related to liquidation of the underlying portfolio upon the security's anticipated optional redemption, was less than current amortized cost.

Projected distributions are periodically monitored and re-evaluated.

All actual distributions were recognized as reductions to amortized cost until such time, if and when occurring, a future aggregate amount of then-projected distributions exceeds the security's then-current amortized cost.

(5) Subject to unfunded commitments.

(6) Investment was on non-accrual status as of December 31, 2023, meaning the Company suspended recognition of all or a portion of income on the investment.

The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans.

(6) Investment was on non-accrual status as of December 31, 2024.

See Note 2 for further details.

(7) Equity participation rights issued by unaffiliated third party fully covered with underlying positions in the portfolio company.

(8) The Company entered into a contractual arrangement with co‑lenders whereby, subject to certain conditions, it agreed to receive its payment after the repayment of certain co‑lenders pursuant to a payment waterfall.

The table below provides additional details as of December 31, 2023:

Portfolio Company Reported Interest Rate Interest Rate per Credit Agreement Additional Interest per Annum

SS Acquisition, LLC 12.41 % 11.89 % 0.51 %

SS Acquisition, LLC 13.10 % 11.89 % 1.21 %

(8) Non-qualifying assets under Section 55(a) of the 1940 Act.

Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets.

As of December 31, 2024, approximately 80 % of the Company's assets were qualifying assets.

(9) The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter.

13 unchanged sentences

Option Range of Cash

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

6.15 % to 12.65 %

Avison Young Inc.

First Lien Debt 6.50 % 0 % to 6.50 %

6.15 % to 12.65 %

Inergex Holdings, LLC First Lien Debt 2.00 % 0 % to 2.00 %

4 unchanged sentences

8.73 % to 10.73 %

Master Cutlery, LLC Subordinated Debt 13.00 % 0 % to 13.00 %

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) First Lien Debt 1.50 % 0 % to 1.50 %

12.10 % to 13.60 %

RumbleOn, Inc.

First Lien Debt 0.50 % 0 % to 0.50 %

RideNow Group, Inc.

(F/K/A RumbleOn, Inc.) First Lien Debt 1.50 % 0 % to 1.50 %

12.10 % to 13.60 %

3 unchanged sentences

See Note 5 for further details.

(15) Investments (or portion thereof) held by OFSCC-FS.

(15) Investments (or a portion thereof) held by OFSCC-FS.

These assets are pledged as collateral of the BNP Facility and cannot be pledged under any other debt obligation of the Company.

3 unchanged sentences

(18) Not meaningful as there is no outstanding balance on the revolver or delayed draw loan.

The Company earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

The Company generally earns unfunded commitment fees on undrawn revolving lines of credit balances, which are reported in fee income.

(19) The Company has an observer seat on the portfolio company’s board of directors.

(20) Portfolio company at fair value represents greater than 5% of total assets at December 31, 2024.

(21) Non-qualifying assets under Section 55(a) of the 1940 Act.

Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets.

As of December 31, 2023, approximately 81 % of the Company's assets were qualifying assets.

See Notes to Consolidated Financial Statements.

15 unchanged sentences

Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and as the sub-advisor to investment companies managed by an affiliate.

The Company may make investments through OFSCC-FS, LLC (“OFSCC-FS”), a wholly owned and consolidated special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments;

The Company may make investments through OFSCC-FS, LLC (“OFSCC-FS”), an indirect wholly owned and consolidated special-purpose vehicle formed in April 2019 for the purpose of acquiring senior secured loan investments;

and through OFSCC-MB, Inc.

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The Company evaluates the issuers of its Control Investments for significance in accordance with Rules 3-09 and 4-08(g) of Regulation S-X.

As of December 31, 2024 and 2023, the Company did not have any investments classified as Control Investments, and as of December 31, 2022, no issuers of Control Investments were considered a significant subsidiary under these rules.

As of December 31, 2025, 2024 and 2023, the Company did not have any investments classified as Control Investments.

Use of estimates:

2 unchanged sentences

Reportable segments:

In November 2023, the FASB issued Accounting Standards Update (“ASU”) No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

ASU 2023-07 enhances the disclosures required for reportable segments on an annual and interim basis.

ASU 2023-07 is effective on a retrospective basis for annual periods beginning after December 15, 2023, for interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.

The Company adopted ASU 2023-07 as of December 31, 2024.

The Company determined it operates through a single operating and reporting segment with a single investment objective to provide its stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments.

Pursuant to ASU 2023-07, the Company identified its Chief Executive Officer as the chief operating decision maker (“CODM”).

The Company identified its Chief Executive Officer as the chief operating decision maker (“CODM”).

The CODM assesses the performance and makes operating decisions of the Company on a consolidated basis primarily based on the Company’s net increase (decrease) in net assets resulting from operations.

1 unchanged sentence

Cash and cash equivalents:

The Company’s cash balances are maintained with member banks of the Federal Deposit Insurance Corporation (“FDIC”), and, such balances generally exceed the FDIC insurance limits.

The Company does not believe its cash balances are exposed to any significant credit risk.

Cash and cash equivalent balances are held in US Bank Trust Company, National Association and Citibank N.A.

money market deposit accounts.

In addition, the Company’s use of cash and cash equivalents held by OFSCC-FS is limited by the terms and conditions of the BNP Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings.

Cash represents cash deposits held at U.S.

Bank Trust Company, National Association and Citibank N.A., and cash equivalents consist of highly liquid money market funds.

Cash equivalents are classified as Level 1 assets and are carried at amortized cost which approximates fair value.

The Company’s cash and cash equivalents are maintained with member banks of the Federal Deposit Insurance Corporation (“FDIC”), and, such balances generally exceed the FDIC insurance limits.

The Company does not believe its cash and cash equivalent balances are exposed to any significant credit risk.

In addition, the Company’s use of cash and cash equivalents held by OFSCC-FS was limited by the terms and conditions of the BNP Facility, including but not limited to, the payment of interest expense and principal on the outstanding borrowings.

The Company had the following cash and cash equivalents as of December 31, 2025 and 2024:

Cash $ 3,050 $ 5,524

Cash equivalents 309 544

Total cash and cash equivalents $ 3,359 $ 6,068

Revenue recognition:

3 unchanged sentences

Certain of the Company’s investments contain a payment-in-kind interest income provision (“PIK interest”).

The PIK interest, computed at the contractual rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash.

The PIK interest, computed at the contractual

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

rate specified in the applicable investment agreement, is added to the principal balance of the investment, rather than being paid in cash.

PIK interest on such investments is generally due at the maturity of the investment.

2 unchanged sentences

See Non-Accrual Loans section.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Loan origination fees, original issue discount (“OID”), market discount or premium, and loan amendment fees (collectively, “Net Loan Fees”) are recorded as an adjustment to the amortized cost of the investment, and accreted or amortized as an adjustment to interest income over the life of the respective debt investment using a method that approximates the effective interest method.

7 unchanged sentences

The Company monitors the estimated cash flows from its CLO subordinated notes, and the accretable yields are generally established at purchase, and re-evaluated upon the receipt of the initial distribution and each subsequent quarter thereafter.

Expected cash flows inherent in the Company’s estimates of accretable yields are based on expectations of defaults and loss-on-default severity, as well as other loan-performance assumptions, impacting the loans in the underlying CLO portfolios, as well as the estimated timing of redemption and the associated liquidation price of the terminal principal payment upon redemption.

Expected cash flows inherent in the Company’s estimates of accretable yields are based on expectations of defaults and loss-on-default severity, prepayment timing, reinvestment parameters, as well as other loan-performance assumptions, impacting the loans in the underlying CLO portfolios, as well as the estimated timing of redemption and the associated liquidation price of the terminal principal payment upon redemption.

These assumed cash flows represent significant estimates and are subject to a reasonable possibility of near-term change due to economic and credit market conditions, and the effect of these changes could be material.

20 unchanged sentences

Primary market new issue trades are recorded on the closing and issuance of the security.

Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the amortized cost basis of the investment on the trade date.

Investments are reported at fair value in accordance with ASC 820 as determined in good faith by OFS Advisor, as the valuation designee, under the active supervision of the Board.

The Company reports changes in the fair value of investments, relative to the amortized cost of investments, as net unrealized appreciation (depreciation) on investments in the consolidated statements of operations.

Realized gains or losses on investments are measured by the difference between the net proceeds from

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

the disposition and the amortized cost basis of the investment on a specific-identification basis.

Investments are reported at fair value in accordance with ASC 820 as determined in good faith by OFS Advisor, as the valuation designee, under the active supervision of the Board.

Non-accrual loans :

1 unchanged sentence

When a loan is placed on non-accrual status, accrued and unpaid cash interest is reversed.

PIK income that has been contractually capitalized to the principal balance of the investment prior to the non-accrual designation date is not reserved against interest or dividend income, but rather is assessed through the valuation of the investment with corresponding adjustments to unrealized appreciation/depreciation, as applicable.

Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status.

Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost.

Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment.

See Note 4 for further information on loans on non-accrual status as of December 31, 2024 and December 31, 2023.

Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments or until a restructuring occurs and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment.

See the Company’s schedule of investments and Note 4 for further information on loans on non-accrual status as of December 31, 2025 and December 31, 2024.

Income taxes:

19 unchanged sentences

federal and most state tax authorities.

In December 2023, the Financial Accounting Standards Board issued Income Taxes (Topic 740), Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 amended Topic 740 to, among other things, require on an annual basis, the disclosure of additional income tax information related to the Company’s effective tax rate reconciliation and income taxes paid.

The Company has adopted ASU 2023-09 on a prospective basis for its fiscal year ending December 31, 2025.

See Note 8 for further information.

Distributions:

9 unchanged sentences

Distributions paid by the Company in accordance with RIC requirements are subject to re-characterization for tax purposes.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of any distributions the Company declares in cash on behalf of its stockholders, unless a stockholder elects to receive cash.

3 unchanged sentences

Deferred debt issuance costs represent underwriting discounts, fees and other direct incremental costs incurred in connection with the Company’s borrowings.

Deferred debt issuance costs are presented as a direct reduction of the related debt liability on the consolidated statements of assets and liabilities, except for deferred debt issuance costs

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

associated with the Company’s revolving line of credit arrangements, which are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities.

Deferred debt issuance costs are presented as a direct reduction of the related debt liability on the consolidated statements of assets and liabilities, except for deferred debt issuance costs associated with the Company’s revolving line of credit arrangements, which are included in prepaid expenses and other assets on the consolidated statements of assets and liabilities.

Unamortized deferred debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2025 and 2024, were $ 125 and $ 681 , respectively.

11 unchanged sentences

The Company places cash deposits only with high credit quality institutions which OFS Advisor believes will mitigate the risk of loss due to credit risk.

If borrowers completely fail to perform according to the terms of the contracts, the amount of loss due to credit risk from the Company’s investments is equal to the sum of the Company’s recorded investment and the unfunded commitments disclosed in Note 6 .

New Accounting Pronouncements and Rule Issuances

In December 2023, the FASB issued Income Taxes (Topic 740), Improvements to Income Tax Disclosures (“ASU 2023-09”).

ASU 2023-09 amend Topic 740 to, among other things, require on an annual basis, the disclosure of additional income tax information related to the Company’s effective tax rate reconciliation and income taxes paid.

ASU 2023-09 is intended to enhance the transparency by providing more detailed income tax disclosures that would be useful in making capital allocation decisions.

ASU 2023-09 amendments are effective for annual periods beginning after December 15, 2024.

The Company is currently evaluating the impact, if any, ASU 2023-09 will have on its 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 this guidance, however, the Company does not expect a material impact on its consolidated financial statements.

Related Party Transactions

4 unchanged sentences

OFS Advisor is a wholly owned subsidiary of OFSAM and a registered investment advisor under the Investment Advisers Act of 1940, as amended.

OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to the Company and OFS Advisor is free to furnish similar services to other entities, including other BDCs affiliated with OFS Advisor, so long as its services to the Company are not impaired.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Company are not impaired.

OFS Advisor also serves as the investment adviser or sub-adviser to various clients, including HPCI and OCCI.

4 unchanged sentences

OFS Advisor’s base management fee reduction is renewable on an annual basis and OFS Advisor is not entitled to recoup the amount of the base management fee reduced with respect to the OFSCC-FS Assets.

OFS Advisor most recently renewed the agreement to reduce its base management fee for the 2025 calendar year on January 8, 2025.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The incentive fee has two parts.

The first part of the incentive fee (“Income Incentive Fee”) is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter.

For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination and sourcing, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee).

For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, syndication and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement (as defined below) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee).

Pre-incentive fee net investment income includes, in the case of investments with a deferred interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.

9 unchanged sentences

The second part of the incentive fee (the “Capital Gains 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), commencing on December 31, 2012, and equals 20.0 % of the Company’s aggregate realized capital gains, if any, on a cumulative basis from the date of the election to be a BDC through the end of each calendar year, computed net of all realized capital losses, losses on extinguishment of debt, income taxes from realized capital gains and unrealized capital depreciation through the end of such year, less all previous amounts paid in respect of the Capital Gains Fee.

provided that the incentive fee determined as of December 31, 2012, was calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses and unrealized capital depreciation for the period beginning on the date of the Company’s election to be a BDC and ending December 31, 2012.

The incentive fee determined as of December 31, 2012, was calculated for a period of shorter than twelve calendar months to take into account any realized capital gains computed net of all realized capital losses and unrealized capital depreciation for the period beginning on the date of the Company’s election to be a BDC and ending December 31, 2012.

The Company accrues the Capital Gains Fee if, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) is positive.

An accrued Capital Gains Fee relating to net unrealized appreciation is deferred, and not due to OFS Advisor, until the close of the year in which such gains are realized.

An accrued Capital Gains Fee relating to net unrealized appreciation is

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

deferred, and not due to OFS Advisor, until the close of the year in which such gains are realized.

If, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) decreases during a period, the Company will reverse any excess Capital Gains Fee previously accrued such that the amount of Capital Gains Fee accrued is no more than 20 % of the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation).

As of December 31, 2025 and December 31, 2024, there were no accrued Capital Gains Fees.

License Agreement:

4 unchanged sentences

Under the Administration Agreement, OFS Services performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others.

In addition, OFS Services assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others.

Under the Administration Agreement, OFS Services also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance.

Payment under the Administration Agreement is equal to an amount based upon the Company’s allocable portion of OFS Services’s overhead in performing its obligations under the Administration Agreement, including, but not limited to, rent, information technology services and the Company’s allocable portion of the cost of its officers, including its chief executive officer, chief financial officer, chief compliance officer, chief accounting officer, and their respective staffs.

To the extent that OFS Services outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services.

5 unchanged sentences

$ 5,769 $ 5,993 $ 7,218

Incentive fees:

Income Incentive Fee 1,758 4,178 5,040

Capital Gains Fee (2)

— — ( 1,916 )

Administration fees 1,557 1,521 1,680

1 unchanged sentence

(1) For the years ended December 31, 2025, 2024 and 2023, the Company’s base management fee on OFSCC-FS Assets was reduced by $ 1,008 , $ 1,130 and $ 1,221 , respectively, pursuant to the fee reduction agreed to by OFS Advisor on such assets.

(2) During the year ended December 31, 2022, the Company reversed previously accrued Capital Gains Fees of $ 1,916 due to a reduction in net unrealized appreciation on the investment portfolio.

OFS Capital Corporation and Subsidiaries

14 unchanged sentences

Structured Finance Securities 77,633 23.6 63.0 61,605 18.0 49.8

Total $ 363,547 100.0 % 211.2 % $ 409,665 100.0 % 237.9 %

Total investments $ 328,400 100.0 % 266.5 % $ 342,015 100.0 % 277.6 %

(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $ 130,270 and $ 116,279 , respectively.

Unitranche loans generally provide leverage levels comparable to a combination of first lien and second lien or subordinated loans.

Investments in “last out” pieces of unitranche loans will be similar to second lien loans in that such investments will be junior in priority to the “first out” piece of the same unitranche loan with respect to payment of principal and interest.

Includes secondary priority debt investments governed under a first lien credit agreement.

(2) Includes the Company’s investment in Pfanstiehl Holdings, Inc.

23 unchanged sentences

Health Care and Social Assistance 68,571 20.9 55.7 48,653 14.3 39.6

Information 24,071 6.6 14.1 16,242 4.0 9.5

Management of Companies and Enterprises 12,614 3.5 7.3 12,309 3.0 7.1

Manufacturing 34,899 9.6 20.4 122,234 29.8 71.1

OFS Capital Corporation and Subsidiaries

3 unchanged sentences

Industry Amortized Cost Amortized Cost Net Assets Fair Value Fair Value Net Assets

Information $ 23,651 7.2 % 19.2 % $ 18,136 5.3 % 14.7 %

Management of Companies and Enterprises 12,562 3.8 10.2 11,419 3.3 9.3

Manufacturing 22,336 6.8 18.1 97,061 28.4 78.8

Other Services (except Public Administration) 1,493 0.5 1.2 1,498 0.4 1.2

Professional, Scientific, and Technical Services 19,384 5.9 15.7 19,451 5.7 15.8

14 unchanged sentences

Second lien debt investments 42,313 11.6 24.6 34,331 8.4 19.9

Subordinated debt investments 4,680 1.2 2.9 — — —

Preferred equity 10,190 2.8 5.9 12,248 3.0 7.1

Common equity, warrants and other (2)

12,365 3.4 7.2 96,337 23.5 56.0

Total debt and equity investments $ 274,564 75.5 % 159.5 % $ 332,790 81.2 % 193.3 %

Structured Finance Securities 88,983 24.5 51.7 76,875 18.8 44.6

Total $ 403,530 100.0 % 249.0 % $ 420,287 100.0 % 259.4 %

Total investments $ 363,547 100.0 % 211.2 % $ 409,665 100.0 % 237.9 %

(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $ 128,147 and $ 119,169 , respectively.

At December 31, 2023, the Company had loans on non-accrual status with an aggregate amortized cost and fair value of $ 34,568 and $ 12,140 , respectively.

Unitranche loans generally provide leverage levels comparable to a combination of first lien and second lien or subordinated loans.

(2) Includes the Company’s investment in Pfanstiehl Holdings, Inc.

See “Note 4—Portfolio Concentration” for additional information.

As of December 31, 2024, the Company had loans on non-accrual status with an aggregate amortized cost and fair value of $ 39,124 and $ 20,803 , respectively.

OFS Capital Corporation and Subsidiaries

12 unchanged sentences

Manufacturing 34,899 9.6 20.4 122,234 29.8 71.1

Other Services (except Public Administration) 670 0.2 0.4 3,792 0.9 2.3

Professional, Scientific, and Technical Services 18,822 5.2 11.0 19,133 4.7 11.1

2 unchanged sentences

Retail Trade 16,511 4.5 9.6 16,985 4.1 9.9

Transportation and Warehousing 2,495 0.7 1.5 2,257 0.5 1.6

Wholesale Trade 15,773 4.3 9.1 10,845 2.7 6.2

8 unchanged sentences

Common Equity Manufacturing $ 217 $ 79,421 23.2 % 64.5 %

Kreg LLC First Lien Debt Health Care and Social Assistance 18,568 18,073 5.3 14.7

SS Acquisition, LLC (1)

First Lien Debt Education Services 17,221 17,328 5.1 14.0

Inergex Holdings, LLC First Lien Debt Professional, Scientific, and Technical Services 16,906 16,960 5.0 13.9

Total $ 52,912 $ 131,782 38.6 % 107.1 %

(1) As of December 31, 2025, the Company had an outstanding commitment of $ 1,286 to fund the portfolio company’s undrawn revolver facility.

As of December 31, 2025, approximately 4.9 % and 13.6 % of the Company’s total portfolio at fair value and net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.

A deterioration in the operating performance of these portfolio investments, or other factors underlying the valuation of these investments, could have a material impact on the Company’s NAV.

Fair Value of Financial Instruments

2 unchanged sentences

The Company engages third-party valuation firms to provide assistance to OFS Advisor in determining the fair value for a majority of its investments.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

2 unchanged sentences

The three levels of inputs in the fair value hierarchy are described below:

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

15 unchanged sentences

Investments for which sufficient Indicative Prices exist are generally valued consistent with such Indicative Prices.

Transfers between levels during the reporting periods were due to the availability of reliable Indicative Prices in those periods.

In addition, each quarter, the Company assesses whether an arm’s length transaction occurred in the same security, including the Company’s new investments during the quarter, the cost of which (“Transaction Prices”), may be considered a reasonable indication of fair value for a period of time, generally up to three months after the transaction date or until the initial payment date, in the case of new issue Structured Finance Securities.

5 unchanged sentences

The fair value of Structured Finance Securities are also estimated primarily by discounted cash flow techniques.

In valuing such investments, the Company considers CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and estimated market yields as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the Indicative Prices provided by broker-dealers in its estimate of the fair value of such investments.

The Company also considers operating metrics, typically included in the governing documents of CLO vehicles, including collateralization tests, concentration limits, defaults, restructuring activity and prepayment rates on the underlying loans, if applicable.

The fair value of the Company’s equity investments, as well as certain of its impaired debt investments, are generally estimated through analysis of the portfolio company's enterprise value under a market approach.

Enterprise value means the entire value of the portfolio company to a market participant, including the sum of the values of debt and equity securities used to capitalize the enterprise at a point in time.

In valuing such investments, the Company considers underlying CLO performance metrics, including prepayment rates, default rates, loss-on-default and recovery rates, and estimated market yields as a primary source for discounted cash flow fair value estimates, supplemented by actual trades executed in the market at or around period-end, as well as the Indicative Prices provided by broker-dealers in its estimate of the fair value of such investments.

The Company also considers operating metrics, typically included in

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue.

the governing documents of CLO vehicles, including collateralization tests, concentration limits, defaults, restructuring activity and prepayment rates on the underlying loans, if applicable.

The primary method for determining enterprise value under the market approach involves an analysis, whereby appropriate multiples are applied to an earnings metric of the portfolio company, typically earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) or revenue.

EBITDA and revenue multiples are typically determined based upon review of market comparable transactions and publicly traded comparable companies, if any.

5 unchanged sentences

If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company might realize significantly less than the value at which such investment had previously been recorded and incur a realized capital loss.

and international banking systems, the agenda of the new U.S.

presidential administration, including the potential impact of tariff enactment and tax reductions, the risk of recession or a shutdown of U.S.

The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, the escalated armed conflict and heightened regional tensions in the Middle East, activity in South America, instability in the U.S.

and international banking systems, the agenda of the U.S.

presidential administration, including the impact of tariff enactment and tax reductions, trade disputes with other countries, the risk of recession or the impact of the prolonged shutdown of U.S.

government services, and related market volatility.

1 unchanged sentence

The Company’s investments are also subject to interest rate risk.

Changes in interest rates, including any potential interest rate reductions approved by the U.S.

Changes in interest rates, including any further potential interest rate reductions approved by the U.S.

Federal Reserve, may impact both its cost of funding and the valuation of its investment portfolio.

32 unchanged sentences

Recovery rate 65.00 % - 65.00 % ( 65.00 %)

2,993 Market approach Transaction Price

Mezzanine debt (2)

2 unchanged sentences

Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Subordinated notes 163 Market approach Net asset value liquidation (3)

Equity investments:

Preferred equity 12,448 Market approach EBITDA multiples 7.25 x - 8.50 x ( 8.46 x)

119 Market approach Revenue multiples 0.50 x - 0.50 x ( 0.50 x)

Common equity, warrants and other 88,029 Market approach EBITDA multiples 6.00 x - 14.75 x ( 12.33 x)

Common equity, warrants and other — Market approach Revenue multiples 0.00 x - 0.40 x ( 0.40 x)

— Market approach Revenue multiples 0.35 x - 0.50 x ( 0.44 x)

(1) Weighted average is calculated based on the fair value of investments.

(2) The cash flows utilized in the discounted cash flow calculations assume:

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and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.

(3) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

OFS Capital Corporation and Subsidiaries

9 unchanged sentences

Second lien 27,400 Discounted cash flow Discount rates 10.84 % - 33.45 % ( 15.31 %)

4,913 Market approach EBITDA multiples 8.43 x - 8.43 x ( 8.43 x)

2,018 Market approach Revenue multiples 0.40 x - 0.40 x ( 0.40 x)

3,850 Market approach Transaction Price

Subordinated — Market approach NAV liquidation (2)

Structured Finance Securities (2) :

Subordinated notes (1)

44,965 Discounted cash flow Discount rates 16.00 % - 50.00 % ( 28.64 %)

Subordinated notes 61,308 Discounted cash flow Discount rates 15.00 % - 40.00 % ( 22.25 %)

Constant default rate 2.00 % - 3.00 % ( 2.07 %)

Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Mezzanine debt (1)

26,245 Discounted cash flow Discount margin 7.15 % - 10.60 % ( 8.36 %)

2,993 Market approach Transaction Price

Mezzanine debt 12,574 Discounted cash flow Discount margin 7.60 % - 9.90 % ( 8.89 %)

Constant default rate 2.00 % - 3.00 % ( 2.25 %)

Recovery rate 65.00 % - 65.00 % ( 65.00 %)

Subordinated notes 5,018 Market Approach Transaction Price

Mezzanine debt 2,817 Market Approach Transaction Price

Equity investments:

Preferred equity 12,248 Market approach EBITDA multiples 7.00 x - 8.50 x ( 8.46 x)

Preferred equity 77 Market approach Revenue multiples 0.13 x - 3.25 x ( 3.25 x)

Common equity, warrants and other (3)

70,927 Discounted cash flow Discount rates 11.50 % - 11.50 % ( 11.50 %)

Market approach EBITDA multiples 12.00 x - 13.25 x ( 12.63 x)

Common equity, warrants and other 96,337 Market approach EBITDA multiples 5.85 x - 15.75 x ( 13.66 x)

Common equity, warrants and other 393 Market approach Revenue multiples 0.40 x - 0.70 x ( 0.70 x)

— Market approach Revenue multiples 0.00 x - 0.40 x ( 0.40 x)

(1) Weighted average is calculated based on the fair value of investments.

(2) The cash flows utilized in the discounted cash flow calculations assume:

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and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.

(2) NAV liquidation represents the fair value, or estimated expected residual value, of the investment.

(3) Two valuation techniques were weighted to determinate the fair value.

Averages in the preceding two tables were weighted by the fair value of the related instruments.

Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in enterprise value and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate.

Changes in enterprise value and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in enterprise value and/or EBITDA multiples, and in inverse relation to changes in the discount rate.

Due to the wide

Due to the wide range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.

The following tables present changes in investments measured at fair value using Level 3 inputs for the years ended December 31, 2025 and 2024:

1 unchanged sentence

First Lien Debt

Investments Second Lien Debt Investments Subordinated

Investments Preferred Equity Common Equity and Warrants Structured Finance Securities Total

Investments Second Lien Debt Investments Preferred Equity Common Equity and Warrants Structured Finance Securities Total

Level 3 assets, December 31, 2024 $ 168,037 $ 34,331 $ 12,248 $ 96,337 $ 76,875 $ 387,828

11 unchanged sentences

Transfers from Level 2 to Level 3 1,289 — — — — 1,289

Transfers from Level 3 to Level 2 ( 8,591 ) — — — — — ( 8,591 )

Level 3 assets, December 31, 2025 $ 155,596 $ 9,409 $ 12,567 $ 88,029 $ 61,605 $ 327,206

7 unchanged sentences

Level 3 assets, December 31, 2023 $ 186,831 $ 48,429 $ — $ 13,240 $ 76,689 $ 79,045 $ 404,234

Net realized loss on investments ( 68 ) ( 185 ) ( 9,210 ) — ( 844 ) ( 1,257 ) ( 11,564 )

Net realized gain (loss) on investments ( 2,663 ) ( 2,136 ) ( 4,376 ) ( 2,911 ) 807 ( 3,518 ) ( 14,797 )

Net change in unrealized appreciation (depreciation) on investments ( 18 ) ( 498 ) 4,680 221 18,820 5,967 29,172

7 unchanged sentences

Distributions received from portfolio investments — — — — — ( 15,595 ) ( 15,595 )

Conversion from debt investments to equity investments ( 2,669 ) — — 1,269 1,400 — —

Transfers from Level 2 to Level 3 2,596 — — — — — 2,596

Transfers from Level 3 to Level 2 ( 8,591 ) — — — — — ( 8,591 )

Level 3 assets, December 31, 2024 $ 168,037 $ 34,331 $ — $ 12,248 $ 96,337 $ 76,875 $ 387,828

8 unchanged sentences

The Company believes that the carrying amounts of its other financial instruments such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such financial instruments.

The senior secured revolving credit facility between the Company and Banc of California (formally known as Pacific Western Bank), as lender (“Banc of California Credit Facility”) and the secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $ 150,000 issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equity holder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator (“BNP Facility”) are variable rate instruments and fair value is approximately book value.

The senior secured revolving credit facility between the Company and Banc of California (formally known as Pacific Western Bank), as lender (“Banc of California Credit Facility”) and the secured revolving credit facility that provided for borrowings in an aggregate principal amount up to $ 80,000 during its reinvestment period, issued pursuant to a Revolving Credit and Security Agreement by and among OFSCC-FS, the lenders from time to time parties thereto, BNP Paribas, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equity holder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator (“BNP Facility”) are variable rate instruments and fair value is approximately book value.

OFS Capital Corporation and Subsidiaries

12 unchanged sentences

70,877 — — 70,877

OFS Capital Corporation 4.95 % Notes due 2028

52,118 — — 52,118

OFS Capital Corporation 8.00 % Note due 2029

— — 25,333 25,333

Total debt $ 122,995 $ — $ 96,744 $ 219,739

9 unchanged sentences

49,698 — — 49,698

SBA-guaranteed debentures

— — 30,904 30,904

Total debt $ 49,698 $ — $ 189,676 $ 239,374

12 unchanged sentences

67,498 70,877 — —

SBA-guaranteed debentures — — 31,900 30,904

OFS Capital Corporation 4.95 % Notes due 2028

54,420 52,118 54,215 49,698

OFS Capital Corporation 8.00 % Note due 2029

24,282 25,333 — —

Total debt $ 217,638 $ 219,739 $ 246,662 $ 239,374

7 unchanged sentences

Portfolio Company Investment Type Commitment

12 Interactive, LLC (D/B/A PerkSpot) First Lien Debt (Revolver) $ 660

Associated Spring, LLC First Lien Debt (Delayed Draw) 1,483

Avison Young Inc.

First Lien Debt (Delayed Draw) 34

Boca Home Care Holdings, Inc.

6 unchanged sentences

First Lien Debt (Delayed Draw) 3,062

Integrated Energy Services, LLC First Lien Debt (Delayed Draw) 300

Integrated Energy Services, LLC First Lien Debt (Revolver) 150

Medrina LLC First Lien Debt (Revolver) 319

PSB Group, LLC First Lien Debt (Revolver) 653

SS Acquisition, LLC First Lien Debt (Revolver) 1,286

SSJA Bariatric Management LLC First Lien Debt (Delayed Draw) 157

Tolemar Acquisition, Inc.

First Lien Debt (Revolver) 978

In accordance with ASC 820, the Company considers undrawn amounts in the determination of fair value on its revolving lines of credit and delayed draw term loans.

As of December 31, 2025, the Company had cash and cash equivalents of $ 3,359 and an unused commitment of $ 20,500 under its Banc of California Credit Facility, which is subject to a borrowing base and other covenants, to fund these outstanding commitments to portfolio companies.

The following table shows the Company’s outstanding commitments to fund investments in portfolio companies as of December 31, 2024:

Portfolio Company Investment Type Commitment

Associated Spring, LLC First Lien Debt (Delayed Draw) $ 1,724

Boca Home Care Holdings, Inc.

First Lien Debt (Revolver) 1,290

Clevertech Bidco, LLC First Lien Debt (Revolver) 294

Envocore Holding, LLC (F/K/A LRI Holding, LLC) First Lien Debt (Revolver) 1,670

Honor HN Buyer Inc.

First Lien Debt (Revolver) 664

Honor HN Buyer Inc.

First Lien Debt (Delayed Draw) 5,000

Kreg LLC First Lien Debt (Revolver) 1,337

7 unchanged sentences

(1) Represents a primary market new issue trade that was recorded in January 2025 upon the closing and issuance of the security.

As of December 31, 2024, the Company had cash and cash equivalents of $ 6,068 and unused commitments of $ 24,000 under its Banc of California Credit Facility and $ 82,650 under its BNP Facility, each of which is subject to a borrowing base and other covenants, to fund these outstanding commitments to portfolio companies.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Legal and regulatory proceedings:

6 unchanged sentences

The Company believes the risk of any material obligation under these indemnifications to be low.

Unsecured Notes:

The Company’s 4.75 % notes due February 10, 2026 (“Unsecured Notes Due February 2026”), 7.50 % notes due July 31, 2028 (“Unsecured Notes Due July 2028”), 4.95 % notes due October 31, 2028 (“Unsecured Notes Due October 2028”) and the 8.00 % note due August 8, 2029 (“Unsecured Note Due August 2029”), (together, the “Unsecured Notes”), totaled $ 165,000 and $ 180,000 in aggregate principal debt at December 31, 2025 and 2024, respectively.

Unsecured Notes Due July 2028 (Nasdaq:

On July 23, 2025, the Company closed the public offering of $ 69,000 aggregate principal amount of its Unsecured Notes Due July 2028, which included $ 9,000 of aggregate principal amount related to the underwriters’ option to cover overallotments.

The net proceeds to the Company from the Unsecured Notes Due July 2028, after deducting underwriting fees of $ 1,380 and offering expenses of $ 326 , was $ 67,294 .

The Unsecured Notes Due July 2028 bear interest at a stated rate of 7.50 % and will mature on July 31, 2028.

The Company may redeem the Unsecured Notes Due July 2028 in whole or in part at any time, or from time to time, on or after July 31, 2026.

Unsecured Note Due August 2029 :

On August 8, 2025, the Company entered into an agreement with an institutional accredited investor in which the Company sold, in a private placement, a $ 25,000 principal amount Unsecured Note Due August 2029 (the “Securities Purchase Agreement”).

The net proceeds to the Company from the Unsecured Note Due August 2029, after deducting discounts of $ 750 and offering expenses of $ 48 , was $ 24,202 .

The Unsecured Note Due August 2029 bears interest at a stated rate of 8.00 % and will mature on August 8, 2029.

The Company may redeem the Unsecured Note Due August 2029 in whole or in part at any time.

The Securities Purchase Agreement contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC within the meaning of the 1940 Act and minimum asset coverage ratio.

Unsecured Notes Due February 2026 :

On February 10, 2021, the Company closed the public offering of $ 100,000 aggregate principal amount of its Unsecured Notes Due February 2026, and on March 18, 2021, the Company closed an additional public offering of $ 25,000 aggregate principal amount of its Unsecured Notes Due February 2026.

On July 11, 2025, the Company issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of its option to redeem on August 11, 2025, $ 25,000 of the issued and outstanding amount of such notes, plus accrued interest of $ 3 and a make-whole premium payment of $ 4 .

The Company recognized a loss on extinguishment of debt of $ 86 related to the acceleration of unamortized deferred debt issuance costs and make-whole premium payment on the redeemed notes.

On July 22, 2025, the Company issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of its option to redeem on August 21, 2025, $ 69,000 of the issued and outstanding amount of such notes, plus accrued interest of $ 100 and a make-whole premium payment of $ 32 .

The Company recognized a loss on extinguishment of debt of $ 224 related to the acceleration of unamortized deferred debt issuance costs and make-whole premium payment on the redeemed notes.

On November 28, 2025, the Company issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of its option to redeem on December 30, 2025 $ 15,000 of the issued and outstanding amount of such notes, plus accrued interest of $ 277 .

The Company recognized a loss on extinguishment of debt of $ 12 related to the acceleration of unamortized deferred debt issuance costs on the redeemed notes.

As of December 31, 2025, the Company had $ 16,000 of outstanding Unsecured Notes Due February 2026, which were redeemed in full on February 9, 2026.

See “ Note 12—Subsequent Events” for additional information.

Unsecured Notes Due October 2028 (Nasdaq:

On October 28, 2021 and November 1, 2021, the Company issued $ 55,000 in aggregate principal of unsecured notes.

The Unsecured Notes Due October 2028 bear interest at a rate of 4.95 % per

OFS Capital Corporation and Subsidiaries

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(Dollar amounts in thousands, except per share data)

SBA Debentures:

The SBIC Program enabled SBIC I LP to obtain leverage by issuing SBA-guaranteed debentures, subject to issuance of a capital commitment by the SBA and customary procedures.

These debentures were non-recourse to the Company, had a ten-year maturity and a fixed interest rate at a market-driven spread over ten-year U.S.

Treasury Notes.

As of December 31, 2024 and 2023, SBIC I LP had outstanding SBA debentures of $ 0 and $ 31,920 , respectively.

Redemptions during the years ended December 31, 2024, 2023 and 2022

On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $ 31,920 that were contractually due March 1, 2025, and, on April 17, 2024, surrendered its license to operate as a SBIC.

During the year ended December 31, 2023, SBIC I LP redeemed $ 19,000 of SBA debentures that were contractually due March 1, 2025.

The Company recognized a loss on extinguishment of debt of $ 213 related to the acceleration of unamortized deferred borrowing costs and prepaid (or breakage) interest on the redeemed debentures.

During the year ended December 31, 2022, SBIC I LP redeemed $ 19,000 of SBA debentures that were contractually due March 1, 2025 and September 1, 2025.

The Company recognized a loss on extinguishment of debt of $ 144 related to the acceleration of unamortized deferred borrowing costs and prepaid (or breakage) interest on the redeemed debentures.

For the years ended December 31, 2024, 2023 and 2022, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the SBA debentures were as follows:

Year Ended December 31,

2024 2023 2022

Stated interest expense $ 151 $ 1,236 $ 1,552

Amortization of debt issuance costs 20 162 188

Total interest and debt financing costs $ 171 $ 1,398 $ 1,740

Cash paid for interest expense $ 457 $ 1,418 $ 1,739

Effective interest rate 3.26 % 3.25 % 3.22 %

Average outstanding balance $ 5,233 $ 43,046 $ 53,991

Unsecured Notes:

The Unsecured Notes Due February 2026 and the Unsecured Notes Due October 2028 (together, the “Unsecured Notes”), totaled $ 180,000 and $ 180,000 in aggregate principal debt at December 31, 2024 and 2023, respectively.

During the years ended December 31, 2024, 2023 and 2022, the Company did not issue, redeem or repurchase any Unsecured Notes.

year payable semi-annually and mature on October 31, 2028.

The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time.

The indenture governing the Unsecured Notes Due July 2028 and Unsecured Notes Due October 2028 contain certain covenants, including:

(i) prohibiting additional borrowings, including through the issuance of additional debt securities, unless the Company's asset coverage, as defined in the 1940 Act, after giving effect to any exemptive relief granted to the Company by the SEC, equals at least 150 % after such borrowings;

and (ii) prohibiting (a) the declaration of any cash dividend or distribution upon any class of the Company’s capital stock (except to the extent necessary for the Company to maintain its treatment as a RIC under Subchapter M of the Code), or (b) the purchase of any capital stock unless the Company’s asset coverage, as defined in the 1940 Act, is at least 150 % at the time of such capital transaction and after deducting the amount of such transaction.

The Unsecured Notes are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company.

Because the Unsecured Notes are not secured by any of the Company’s assets, they are effectively subordinated to all existing and future secured unsubordinated indebtedness (or any indebtedness that is initially unsecured as to which the Company subsequently grants a security interest), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the Banc of California Credit Facility.

As of December 31, 2025, the Unsecured Notes had the following terms and balances:

Unsecured Notes Principal Unamortized Discount and Issuance Costs Stated Interest Rate (1)

Unsecured Notes Principal Unamortized Debt Issuance Costs Stated Interest Rate (1)

Effective Interest Rate (2)

Unsecured Notes Due February 2026 $ 125,000 $ 903 4.75 % 5.39 % February 10, 2026

Unsecured Notes Due October 2028 55,000 785 4.95 % 5.32 % October 31, 2028

Optional Redemption Date Maturity Date

Unsecured Notes Due February 2026 (3)

$ 16,000 $ 12 4.75 % 5.44 % Callable February 10, 2026

Unsecured Notes Due July 2028 69,000 1,502 7.50 % 8.34 % July 31, 2026 July 31, 2028

Unsecured Notes Due October 2028 55,000 580 4.95 % 5.32 % Callable October 31, 2028

Unsecured Note Due August 2029 25,000 718 8.00 % 8.80 % Callable August 8, 2029

Total $ 165,000 $ 2,812

1 unchanged sentence

(2) The effective interest rate on the Unsecured Notes includes deferred debt issuance cost amortization.

(3) The Company may redeem the Unsecured Notes Due February 2026 in whole or in part at any time, or from time to time.

The Company is required to pay a “make-whole” premium if the redemption date is prior to November 10, 2025.

The Company may redeem the Unsecured Notes Due October 2028 in whole or in part at any time, or from time to time.

The Unsecured Notes are direct unsecured obligations and rank equal in right of payment with all current and future unsecured indebtedness of the Company.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The indenture governing the Unsecured Notes contains certain covenants, including:

(3) On February 9, 2026, the Company redeemed the remaining $ 16,000 in aggregate principal amount of its Unsecured Notes Due February 2026.

For the years ended December 31, 2025, 2024 and 2023, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the Unsecured Notes were as follows:

9 unchanged sentences

The Company is party to a business loan agreement (“BLA”) with Banc of California, as lender, to provide the Company with a $ 25,000 senior secured revolving credit facility.

The Banc of California Credit Facility is available for general corporate purposes including investment funding and is scheduled to mature on February 28, 2026.

The maximum availability of the Banc of California Credit Facility is equal to 50 % of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities and as otherwise specified in the BLA.

The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS and SBIC I LP, and the Company’s partnership interests in SBIC I LP.

The Banc of California Credit Facility bears interest at a variable rate of the Prime Rate plus a 0.25 % margin, with a 5.00 % floor, and includes an annual commitment fee of $ 125 .

The Banc of California Credit Facility is available for general corporate purposes including investment funding.

The Banc of California Credit Facility is guaranteed by OFSCC-MB and secured by all of our and OFSCC-MB’s current and future assets, excluding assets held by OFSCC-FS and the Company’s partnership interests in SBIC I LP.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The Banc of California Credit Facility bears interest at a variable rate of the United States Prime interest rate plus a 0.25 % margin, with a 5.00 % floor, and includes an annual commitment fee of 0.50 % of the maximum commitment amount of $ 25,000 .

As of December 31, 2025, the stated interest rate of the Banc of California Credit Facility was 7.00 %.

2 unchanged sentences

As of December 31, 2025 and 2024, the Company had $ 4,500 and $ 1,000 outstanding debt under the Banc of California Credit Facility, respectively, and $ 20,500 and $ 24,000 of unused commitments, respectively, subject to a borrowing base and other covenants.

Amendments during the years ended December 31, 2024, 2023 and 2022

On December 15, 2023, the Company amended the Banc of California Credit Facility to:

2 unchanged sentences

and (iii) eliminate the 0.50 % unused line fee and replace it with an annual commitment fee of 0.50 %.

On December 15, 2022, the Company amended the Banc of California Credit Facility to:

(i) reduce the maximum amount available under the Banc of California Credit Facility from $ 35,000 to $ 25,000 ;

and (ii) eliminate the No Net Losses covenant, which restricted net losses (defined as income after adjustments to the investment portfolio for gains and losses, realized and unrealized, also shown as net increase (decrease) in net assets resulting from operations) in more than two quarters during the prior four quarters then ended.

On April 22, 2022, the Company amended the Banc of California Credit Facility to:

(i) increase the maximum amount available under the Banc of California Credit Facility from $ 25,000 to $ 35,000 ;

and (ii) extend the maturity date of the Banc of California Credit Facility from February 28, 2023 to February 28, 2024.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

On January 9, 2026, the Company amended the Banc of California Credit Facility to extend the maturity date from February 28, 2026 to February 28, 2028.

Fees and legal costs incurred in connection with the Banc of California Credit Facility are deferred and amortized over the life of the facility.

11 unchanged sentences

Average outstanding balance $ 1,482 $ 39 $ 1,249

(1) For the years ended December 31, 2023 and 2022, stated interest expense includes unused fees.

Effective December 15, 2023, the 0.50 % unused line fee was replaced with an annual commitment fee of 0.50 %, which is included in amortization of debt issuance costs for the year ended December 31, 2024.

(1) For the year ended December 31, 2023, stated interest expense includes unused fees.

Effective December 15, 2023, the 0.50 % unused line fee was replaced with an annual commitment fee of 0.50 %, which is included in amortization of debt issuance costs for the years ended December 31, 2025 and 2024.

(2) Not meaningful due to a minimal average outstanding balance relative to the size of the total commitment and the amount of unused or commitment fees incurred during the periods.

BNP Facility:

OFSCC-FS is party to the BNP Facility, which provides for borrowings in an aggregate principal amount up to $ 150,000 .

Borrowings under the BNP Facility bear interest at a variable rate of SOFR plus a variable margin ( 2.65 % floor), which is determined on the basis of industry-recognized portfolio company metrics at the time of funding.

The BNP Facility will mature on the earlier of June 20, 2027 or upon certain other events defined in the credit agreement which result in accelerated maturity.

The reinvestment period of the BNP Facility ends on June 20, 2025, upon which the ability to access the unused commitment of the facility terminates.

As of December 31, 2024 and 2023, the Company had $ 67,350 and $ 90,500 , respectively, outstanding debt under the BNP Facility, and $ 82,650 and $ 59,500 , respectively, of availability, subject to the terms of the borrowing base.

OFSCC-FS also pays an unused fee up to 0.75 % depending on the size of the unused portion of the BNP Facility.

Borrowings under the BNP Facility are secured by substantially all of the assets held by OFSCC-FS, which were $ 151,039 and $ 158,308 , or 35 % and 34 % of the Company’s total consolidated assets at December 31, 2024 and 2023, respectively.

OFSCC-FS and the Company have each made customary representations and warranties and are required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

At December 31, 2024, the stated interest rate on the BNP Facility was 7.16 %.

OFSCC-FS incurred fees to the lenders as well as legal costs to establish and amend the BNP Facility, which are deferred and amortized over the expected life of the facility.

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2024 and 2023 were $ 560 and $ 941 , respectively.

Amendments during the years ended December 31, 2024, 2023 and 2022

On June 24, 2022, OFSCC-FS amended the BNP Facility to, among other things:

(i) extend the reinvestment period under the BNP Facility for three years from June 20, 2022 to June 20, 2025;

(ii) extend the maturity date under the BNP Facility from

OFSCC-FS was party to the BNP Facility, which provided for borrowings in an aggregate principal amount up to $ 80,000 during its reinvestment period.

Borrowings under the BNP Facility bore interest at a variable rate of SOFR plus a variable margin ( 2.65 % floor), which was determined on the basis of industry-recognized portfolio company metrics at the time of funding.

On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility.

All liens securing the BNP Facility were released upon such repayment.

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

June 20, 2024 to June 20, 2027;

(iii) convert the benchmark interest rate from LIBOR to SOFR;

(iv) increase the applicable margin by 0.40 % on all classes of loans;

and (v) increase the applicable margin floor from 1.925 % to 2.65 %.

Amendments during the years ended December 31, 2025, 2024 and 2023

On June 18, 2025, OFSCC-FS executed an amendment to the BNP Facility to extend the reinvestment period under the facility from June 20, 2025 to August 31, 2025.

On August 25, 2025, OFSCC-FS executed an amendment to the BNP Facility to extend the reinvestment period under the facility from August 31, 2025 to September 30, 2025.

The reinvestment period of the BNP Facility expired on September 30, 2025, after which the ability to access the unused commitment of the facility terminated.

On August 20, 2025, OFSCC-FS elected to reduce the maximum facility amount from $ 150,000 to $ 80,000 under its revolving credit and security agreement.

The reduction was made pursuant to the terms of the BNP Facility, which permitted OFSCC-FS to voluntarily reduce the unused amount of the facility upon notice to the administrative agent and other applicable parties.

The Company recognized a loss on extinguishment of debt of $ 147 related to the acceleration of deferred borrowing costs on the commitment reduction.

On November 20, 2025, OFSCC-FS amended the BNP Facility to, among other things:

(i) amend and restate the definition of “Portfolio Advance Rate Adjustment” to reflect updated percentages based on the Diversity Score, with different tables applicable across the following periods:

(A) from the Closing Date to but excluding the effective date of the Amendment;

(B) from the effective date of the Amendment to and including December 15, 2025;

and (C) after December 15, 2025;

(ii) permit the Borrower to purchase additional Collateral Loans during and after the Reinvestment Period, subject to certain conditions;

and (iii) permit the Equityholder, with the consent of the Administrative Agent, to contribute certain Eligible Collateral Loans to the Borrower.

As of December 31, 2025 and 2024, the Company had $ 50,950 and $ 67,350 , respectively, outstanding debt under the BNP Facility.

As of December 31, 2025, the unused commitment under the BNP Facility was $ 0 , following the expiration of the reinvestment period on September 30, 2025.

Borrowings under the BNP Facility were secured by substantially all of the assets held by OFSCC-FS, which were $ 125,004 and $ 151,039 , or 36 % and 35 % of the Company’s total consolidated assets at December 31, 2025 and 2024, respectively.

At December 31, 2025, the stated interest rate on the BNP Facility was 6.47 %.

OFSCC-FS incurred fees to the lenders as well as legal costs to establish and amend the BNP Facility, which were deferred and amortized over the expected life of the facility.

Unamortized debt issuance costs included in prepaid expenses and other assets on the consolidated statements of assets and liabilities as of December 31, 2025 and 2024 were $ 125 and $ 560 , respectively.

8 unchanged sentences

Average outstanding balance $ 63,285 $ 75,520 $ 100,062

(1) Stated interest expense includes unused fees.

(1) Stated interest expense includes unused commitment fees.

In connection with the expiration of the reinvestment period, and effective September 30, 2025, the Company is no longer subject to an unused commitment fee on the facility.

SBA Debentures:

The SBIC Program enabled SBIC I LP to obtain leverage by issuing SBA-guaranteed debentures, subject to issuance of a capital commitment by the SBA and customary procedures.

These debentures were non-recourse to the Company, had a ten-year maturity and a fixed interest rate at a market-driven spread over ten-year U.S.

Treasury Notes.

As of December 31, 2025 and 2024, SBIC I LP had no outstanding SBA debentures.

Redemptions during the years ended December 31, 2024, and 2023

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

During the year ended December 31, 2023, SBIC I LP redeemed $ 19,000 of SBA debentures that were contractually due March 1, 2025.

The Company recognized a loss on extinguishment of debt of $ 213 related to the acceleration of unamortized deferred borrowing costs and prepaid (or breakage) interest on the redeemed debentures.

For the years ended December 31, 2025, 2024, and 2023, the components of interest expense, cash paid for interest, effective interest rates and average outstanding balances for the SBA debentures were as follows:

Year Ended December 31,

2025 2024 2023

Stated interest expense $ — $ 151 $ 1,236

Amortization of debt issuance costs — 20 162

Total interest and debt financing costs $ — $ 171 $ 1,398

Cash paid for interest expense $ — $ 457 $ 1,418

Effective interest rate — % 3.26 % 3.25 %

Average outstanding balance $ — $ 5,233 $ 43,046

The average dollar borrowings and average interest rate for all Company debt during the years ended December 31, 2025, 2024 and 2023, were as follows:

5 unchanged sentences

Principal Due by Year

Debt liabilities Total 2025 2026 2027 2028 2029

Debt liabilities Total 2026 2027 2028 2029 Thereafter

Banc of California Credit Facility (1)

1 unchanged sentence

BNP Facility (2)

50,950 — 50,950 — — —

Unsecured Notes (3)

165,000 16,000 — 124,000 25,000 —

Total $ 220,450 $ 20,500 $ 50,950 $ 124,000 $ 25,000 $ —

(1) On January 9, 2026, the Company amended the Banc of California Credit Facility to extend the maturity date from February 28, 2026 to February 28, 2028.

(2) On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility.

The Natixis Facility has a maturity date of February 18, 2031, subject to the occurrence of certain other events that result in accelerated maturity under the Natixis Facility.

(3) On February 9, 2026, the Company redeemed the remaining $ 16,000 in aggregate principal amount of its Unsecured Notes Due February 2026.

See “ Note 12—Subsequent Events” for additional information.

Federal Income Tax

6 unchanged sentences

Maintenance of the Company's RIC status also requires adherence to certain source of income and asset diversification requirements.

OFSCC-MB, an entity taxed as a corporation under Subchapter C of the Code, is consolidated in the Company’s GAAP financial statements but is not included in the determination of ICTI or the RIC compliance requirements of the Company.

The income of OFSCC-MB, net of applicable income taxes, is not included in the Company’s ICTI until distributed by OFSCC-MB, which may result in timing and character differences between the Company’s GAAP and tax-basis net investment income and realized gains and losses.

Taxable income and distributions:

As of December 31, 2024, the Company met the source of income and asset diversification requirements, and intends to continue to meet these requirements.

As of December 31, 2024, the Company has accrued refunds of $ 121 related to tax-year 2022 and 2023 excise tax overpayments.

The Company’s ICTI differs from the net increase

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

(decrease) in net assets resulting from operations primarily due to differences in income recognition on the unrealized appreciation/depreciation of investments, income recognition for CLO subordinated note investments, income from Company’s equity investments in pass-through entities, capital gains and losses and the net creation or utilization of capital loss carryforwards.

OFSCC-MB and OFSCCFS-NYBG, Inc., entities taxed as corporations under Subchapter C of the Code (collectively, the “Taxable Blocker Subsidiaries”), are consolidated in the Company’s GAAP financial statements but are not included in the determination of ICTI or the RIC compliance requirements of the Company.

The income of the Taxable Blocker Subsidiaries, net of applicable income taxes, is not included in the Company’s ICTI until distributed by the Taxable Blocker Subsidiaries, which may result in timing and character differences between the Company’s GAAP and tax-basis net investment income and realized gains and losses.

Taxable income and distributions:

As of December 31, 2025, the Company met the source of income and asset diversification requirements, and intends to continue to meet these requirements.

As of December 31, 2025, the Company has accrued refunds of $ 121 related to prior years’ excise tax overpayments.

The Company’s ICTI differs from the net increase (decrease) in net assets resulting from operations primarily due to differences in income recognition on the unrealized appreciation/depreciation of investments, income recognition for CLO subordinated note investments, income from the Company’s equity investments in pass-through entities, capital gains and losses and the net creation or utilization of capital loss carryforwards.

The distributions paid to stockholders are reported as ordinary income, long-term capital gains and returns of capital.

23 unchanged sentences

These reclassifications have no effect on total net assets or net asset value per common share.

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

The estimated tax-basis cost of investments and associated tax-basis gross unrealized appreciation (depreciation) inherent in the fair value of investments as of December 31, 2025 and 2024, were as follows:

5 unchanged sentences

Deferred taxes:

The Company recognizes deferred taxes on the unrealized appreciation or depreciation of securities held through OFSCC-MB and other basis differences, including available loss carry forwards and suspended interest expense deductions reported by portfolio companies.

The Company recognizes deferred taxes on the unrealized appreciation or depreciation of securities held through its Taxable Blocker Subsidiaries and other basis differences, including available loss carry forwards and suspended interest expense deductions reported by portfolio companies.

Deferred tax assets and liabilities are measured using enacted corporate federal tax rates and estimated state tax burdens expected to apply to taxable income in the years in which those unrealized gains and losses are realized.

The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

more likely than not that any portion of the deferred tax asset will not be realized on the basis of the projected taxable income or other taxable events in OFSCC-MB.

The recoverability of deferred tax assets is assessed and a valuation allowance is recorded to the extent that it is more likely than not that any portion of the deferred tax asset will not be realized on the basis of the projected taxable income or other taxable events in OFSCC-MB.

The tax-basis unrealized appreciation (depreciation) of investments by tax entity inherent in the fair value of investments as of December 31, 2025 and 2024, were as follows:

Total net unrealized appreciation on investments held by RIC entities $ 49,423 $ 21,453

OFSCC-MB (C-Corp):

Total tax-basis net unrealized appreciation on investments held by RIC entities $ 27,890 $ 49,423

Taxable Blocker Subsidiaries (C-Corps):

Gross unrealized appreciation on investments 3,131 2,041

Gross unrealized depreciation on investments ( 7,938 ) ( 9 )

Total net unrealized appreciation (depreciation) on investments on investments held by OFSCC-MB 2,032 ( 222 )

Total net unrealized appreciation (depreciation) on investments on investments held by Taxable Blocker Subsidiaries ( 4,807 ) 2,032

Total tax-basis net unrealized appreciation on investments $ 23,083 $ 51,455

4 unchanged sentences

Deferred tax liabilities and assets with tax basis unrealized gain and losses differs from the amount that would have resulted from applying the federal rate of 21% to unrealized gains and losses because of state income taxes, net of the associated federal tax benefit.

Deferred tax assets are recognized to the extent the Company believes it is more likely than not that such assets will be realized.

The realization of deferred tax assets is dependent upon the generation of sufficient future taxable income during the periods in which the related temporary differences become deductible.

As of December 31, 2025, the Company recorded a valuation allowance of $ 2,260 against its deferred tax assets, resulting in net deferred tax assets of $ 0 .

The valuation allowance primarily relates to deferred tax assets associated with deductible temporary differences for which the Company concluded that realization is not more likely than not.

If the Company’s assessment of the need for a valuation allowance were to change, such change could have a material impact on the Company’s effective tax rate in the period of the change.

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

The Company adopted ASU 2023-09 on a prospective basis for the year ended December 31, 2025 and has included the following table as a result of its adoption, which presents income taxes paid (net of refunds received) for the year ended December 31, 2025:

Year Ended December 31, 2025

federal income taxes $ 17

state and local income taxes 4

Total cash paid for income taxes $ 21

Financial Highlights

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( 0.04 ) — ( 0.02 ) ( 0.01 ) ( 0.34 )

Loss on impairment of goodwill (1)

— — — — ( 0.08 )

Total from operations ( 2.47 ) 2.12 ( 0.04 ) ( 0.56 ) 4.24

Distributions declared:

Distributions from net investment income ( 0.39 ) ( 1.36 ) ( 1.34 ) ( 1.16 ) ( 0.91 )

Distributions from tax return of capital ( 0.80 ) — — — —

Issuance/repurchase of common stock (2)

— — 0.01 — ( 0.03 )

Net asset value per share at end of year $ 9.19 $ 12.85 $ 12.09 $ 13.47 $ 15.18

14 unchanged sentences

$ 12,384 $ 16,712 $ 20,160 $ 18,352 $ 13,450

Ratio of total expenses, net to average net assets (6)

19.8 % 21.2 % 15.7 % 19.2 % 22.4 %

Ratio of total expenses, net and losses on impairment of goodwill and extinguishment of debt to average net assets (7)

19.8 % 21.4 % 15.7 % 21.8 % 23.7 %

Ratio of total expenses to average net assets 19.2 % 19.8 % 21.2 % 15.7 % 19.2 %

Ratio of total expenses and loss on extinguishment of debt to average net assets 19.5 % 19.8 % 21.4 % 15.7 % 21.8 %

Ratio of net investment income to average net assets 8.4 % 10.6 % 11.6 % 9.5 % 7.5 %

10.6 % 11.6 % 9.5 % 7.5 % 8.3 %

Ratio of goodwill impairment loss to average net assets — % — % — % — % 0.7 %

Ratio of loss on extinguishment of debt to average net assets 0.3 % — % 0.1 % 0.1 % 2.6 %

5 unchanged sentences

(4) Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested at the Company’s DRIP for the respective distributions.

(5) Based on the average of the net asset value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

(6) Ratio of total expenses before incentive fee waiver to average net assets was 22.7 % for the year ended December 31, 2020.

(7) Ratio of total expenses before incentive fee waiver and losses on impairment of goodwill and extinguishment of debt to average net assets was 24.0 % for the year ended December 31, 2020.

(8) Ratio of net investment income before incentive fee waiver to average net assets was 8.0 % for the year ended December 31, 2020.

(9) Portfolio turnover rate is calculated using the lesser of year-to-date sales, Structured Finance Security distributions and principal payments or year-to-date purchases over the average of portfolio investments at fair value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

(5) Based on the average of the net asset value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

(6) Portfolio turnover rate is calculated using the lesser of year-to-date sales, Structured Finance Security distributions and principal payments or year-to-date purchases over the average of portfolio investments at fair value at the beginning of the indicated period and the end of each calendar quarter within the period indicated.

Capital Transactions

5 unchanged sentences

The Company may be limited in its ability to make distributions to stockholders due to the BDC asset coverage requirements of the 1940 Act.

In addition, distributions from OFSCC-FS to the Company are restricted by the terms and conditions of the BNP Facility.

In addition, distributions from OFSCC-FS to the Company were restricted by the terms and conditions of the BNP Facility.

At December 31, 2025, OFSCC-FS had cash of $ 2,443 , of which $ 0 was available for distribution to the Company.

3 unchanged sentences

Distribution DRIP Shares

Issued DRIP Shares

Year ended December 31, 2025

6 unchanged sentences

February 28, 2024 March 18, 2024 March 28, 2024 $ 0.34 $ 4,555 — $ —

May 2, 2023 June 23, 2023 June 30, 2023 0.33 4,422 — — (1)

August 1, 2023 September 22, 2023 September 29, 2023 0.34 4,555 — — (1)

April 30, 2024 June 18, 2024 June 28, 2024 0.34 4,556 — —

July 30, 2024 September 20, 2024 September 30, 2024 0.34 4,555 — —

October 29, 2024 December 20, 2024 December 31, 2024 0.34 4,555 — —

1 unchanged sentence

Year ended December 31, 2023

March 1, 2022 March 24, 2022 March 31, 2022 $ 0.28 $ 3,719 3,016 $ 39

February 28, 2023 March 24, 2023 March 31, 2023 $ 0.33 $ 4,421 — $ —

May 2, 2023 June 23, 2023 June 30, 2023 0.33 4,422 — —

August 1, 2023 September 22, 2023 September 29, 2023 0.34 4,555 — —

November 1, 2022 December 23, 2022 December 30, 2022 0.30 3,967 5,026 51

October 31, 2023 December 22, 2023 December 29, 2023 0.34 4,556 — —

$ 1.34 $ 17,954 — $ —

8 unchanged sentences

Distributions in excess of the Company’s current and accumulated ICTI would be treated first as a return of capital to the extent of a stockholder’s tax basis, and any remaining distributions would be treated as a capital gain.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

Each year, if required, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.

For the year ended December

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

31, 2025, the Company’s estimated distributions paid to stockholders were comprised of a tax return of capital of 67.2 % and ordinary income of 32.8 %.

The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI and distributions paid for the full year.

Each year, if required, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.

The calculation of 2025 U.S.

federal taxable income is based on certain estimated amounts, including information received from third parties and, as a result, actual 2025 U.S.

federal taxable income will not be finally determined until the Company’s 2025 U.S.

federal tax return is filed in 2026.

Stock repurchase program:

4 unchanged sentences

The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason.

The following table summarizes the shares of common stock the Company repurchased under the Stock Repurchase Program during the years ended December 31, 2024, 2023 and 2022 (amount in thousands except shares):

Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of the Program Maximum Dollar Value of Shares That May Yet be Purchased Under the Program Weighted Average Discount to NAV Prior to Repurchase

January 1, 2022 through December 31, 2022 42,254 $ 8.30 42,254 $ 9,642 41.6 %

January 1, 2023 through December 31, 2023 — — — 9,642 —

January 1, 2024 through December 31, 2024 — — — 9,642 —

Total 42,254 $ 8.30 42,254

During the years ended December 31, 2025, 2024 and 2023, the Company did not make any repurchases of its common stock on the open market under the Stock Repurchase Program.

As of December 31, 2025, the approximate dollar value of shares remaining that may be repurchased under the program was $ 9,642 .

OFS Capital Corporation and Subsidiaries

13 unchanged sentences

$ — $ ( 3,896 ) $ — $ 1,207 $ — $ 1,207 $ 11,890 $ 1,207 $ ( 3,896 ) $ 9,201

Preferred Equity (7)

— ( 6 ) — 140 — 140 — 2,890 ( 6 ) 2,884

Common Equity (6)

1 unchanged sentence

— — — — — — — — — —

DRS Imaging Services, LLC Common Equity (6)

— — — — — — — — — —

Master Cutlery, LLC Subordinated Debt (6)

— ( 4,343 ) — 1,347 — 1,347 12,331 4,097 ( 4,343 ) 12,085

Preferred Equity (6)

DRS Imaging Services, LLC Common Equity (6)

— 1,481 — — — — 1,190 1,481 — 2,671

Pfanstiehl Holdings, Inc.

Common Equity — ( 9,877 ) — 273 — 273 89,298 — ( 9,877 ) 79,421

SSJA Bariatric Management LLC (8)

First Lien Debt — 1 5 — — 5 — 236 ( 1 ) 235

First Lien Debt — 2,939 60 — — 60 — 13,367 ( 9,563 ) 3,804

First Lien Debt (6)

— 317 — — — — — 1,033 ( 1,033 ) —

First Lien Debt (6)

— 797 — — — — — 2,600 ( 2,600 ) —

Pfanstiehl Holdings, Inc.

First Lien Debt (6)

— 81 — — — — — 266 ( 266 ) —

Common Equity (6)

TalentSmart Holdings, LLC Common Equity (6)

— — — — — — — — — —

TRS Services, Inc.

Preferred Equity 572 ( 2,410 ) — 1,891 — 1,891 2,507 — ( 2,507 ) —

Common Equity (6)

1 unchanged sentence

— ( 3,793 ) 65 — — 65 — 27,159 ( 21,391 ) 5,768

Total Affiliate Investments $ ( 6,506 ) $ 25,326 $ — $ 4,082 $ — $ 4,082 $ 86,831 $ 29,547 $ ( 11,955 ) $ 104,423

OFS Capital Corporation and Subsidiaries

1 unchanged sentence

(Dollar amounts in thousands, except per share data)

Year Ended December 31, 2025

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net Change in Unrealized Appreciation/ (Depreciation) Interest Dividends Fees Total Income (2)

December 31, 2024, Fair Value (5)

Additions (3)

Reductions (4)

December 31, 2025, Fair Value (5)

TalentSmart Holdings, LLC (9)

Common Equity (6)

$ — $ 17 $ — $ — $ — $ — $ 1,604 $ — $ ( 1,604 ) $ —

Total Affiliate Investments $ — $ ( 16,515 ) $ 65 $ 1,620 $ — $ 1,685 $ 104,423 $ 32,737 $ ( 37,215 ) $ 99,945

(1) Principal balance of debt investments and ownership detail for equity investments are shown in the consolidated schedule of investments.

2 unchanged sentences

(3) Gross additions include increases in cost basis resulting from a new portfolio investment, PIK interest, fees and dividends, accretion of OID, and net increases in unrealized net appreciation or decreases in net unrealized depreciation.

(4) Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales, and net decreases in net unrealized appreciation or net increases in net unrealized depreciation.

Gross additions also include transfers of portfolio companies, at fair value, out of the non-affiliate/non-control classification to the affiliate classification during the period.

(4) Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales, exchange of securities related to restructurings, and net decreases in net unrealized appreciation or net increases in net unrealized depreciation.

Gross reductions also include transfers of portfolio companies, at fair value, out of the affiliate classification to the non-affiliate/non-control classification during the period.

(5) Fair value was determined using significant unobservable inputs.

1 unchanged sentence

(6) Non-income producing.

The Company has not recognized income on the security during the prior twelve-month period preceding the period-end date.

(7) Dividends credited to income include dividends contractually earned but not declared (i.e., PIK dividends).

(8) During the year ended December 31, 2025, the Company restructured its investments in the portfolio company which resulted in the portfolio company transferring to an affiliate classification as of December 31, 2025.

(9) As of December 31, 2025, the portfolio company is no longer classified as an affiliate investment due to the Company’s partial sale of its common equity investment during the year ended December 31, 2025.

OFS Capital Corporation and Subsidiaries

8 unchanged sentences

December 31, 2024, Fair Value (5)

Control Investment

Eblens Holdings, Inc.

Subordinated Debt (6)

$ ( 4,605 ) $ 3,501 $ — $ — $ — $ — $ 1,104 $ — $ ( 1,104 ) $ —

Subordinated Debt (6)

( 4,605 ) 4,605 — — — — — — — —

Common Equity (6)

( 1,306 ) 950 — — — — — 356 ( 356 ) —

( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

Total Control Investment ( 10,516 ) 9,056 — — — — 1,104 356 ( 1,460 ) —

Affiliate Investments

15 unchanged sentences

Common Equity — 18,371 — 1,093 — 1,093 70,927 18,371 — 89,298

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

Year Ended December 31, 2023

Name of Portfolio Company Investment Type (1)

Net Realized Gain (Loss) Net Change in Unrealized Appreciation/ (Depreciation) Interest Dividends Fees Total Income (2)

December 31, 2022, Fair Value (5)

Additions (3)

Reductions (4)

December 31, 2023, Fair Value (5)

TalentSmart Holdings, LLC Common Equity (6)

— 468 — — — — 1,136 468 — 1,604

TRS Services, Inc.

Preferred Equity (7)

TRS Services, LLC Preferred Equity (7)

572 ( 2,410 ) — 1,891 — 1,891 2,507 — ( 2,507 ) —

3 unchanged sentences

Total Affiliate Investments $ ( 6,506 ) $ 25,326 $ — $ 4,082 $ — $ 4,082 $ 86,831 $ 29,547 $ ( 11,955 ) $ 104,423

Total Control and Affiliate Investments $ ( 10,516 ) $ ( 1,905 ) $ — $ 1,766 $ — $ 1,766 $ 97,805 $ 6,596 $ ( 17,570 ) $ 86,831

OFS Capital Corporation and Subsidiaries

Notes to Consolidated Financial Statements

(Dollar amounts in thousands, except per share data)

(1) Principal balance of debt investments and ownership detail for equity investments are shown in the consolidated schedule of investments.

10 unchanged sentences

(Dollar amounts in thousands, except per share data)

Subsequent Events Not Disclosed Elsewhere

Subsequent Events

On January 8, 2026, the Company issued notices to the holders of the Unsecured Notes Due February 2026 regarding the exercise of its option to redeem on February 9, 2026 $ 16,000 , which was equal to the remainder of the outstanding Unsecured Notes Due February 2026, plus accrued interest of $ 378 .

On January 9, 2026, the Company amended the Banc of California Credit Facility to extend the maturity date from February 28, 2026 to February 28, 2028.

On February 18, 2026, OFSCC-FS entered into the Natixis Facility, which provides for borrowings in an aggregate principal amount up to $ 80,000 .

Borrowings under the Natixis Facility will bear interest at a rate based on SOFR for the applicable one- or three-month interest period, plus an applicable spread.

Interest is payable quarterly in arrears.

Any amounts borrowed under the Natixis Facility will mature, and all accrued and unpaid interest thereunder will be due and payable, on the earlier of:

(i) February 18, 2031;

or (ii) upon the occurrence of certain other events that result in accelerated maturity under the Natixis Facility.

On February 18, 2026, in connection with the closing of the Natixis Facility, OFSCC-FS repaid in full all outstanding obligations due, and terminated all commitments, under the BNP Facility.

All liens securing the BNP Facility were released upon such repayment.

On February 26, 2026, the Company’s Board declared a distribution of $ 0.17 per share for the first quarter of 2026, payable on March 31, 2026 to stockholders of record as of March 20, 2026.

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data