0001487918false2025FY11iso4217:USDxbrli:sharesxbrli:pureiso4217:USDxbrli:sharesofs:segmentofs:componentofs:investment00014879182025-01-012025-12-310001487918us-gaap:CommonStockMember2025-01-012025-12-310001487918ofs:A495PercentNotesDue2028Member2025-01-012025-12-310001487918ofs:A7.50PercentNotesDue2028Member2025-01-012025-12-3100014879182025-06-3000014879182026-02-260001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2025-01-012025-12-310001487918ofs:Security1CommonMember2025-12-310001487918ofs:Security1CommonMember2025-10-012025-12-310001487918ofs:Security1CommonMember2025-09-300001487918ofs:Security1CommonMember2025-07-012025-09-300001487918ofs:Security1CommonMember2025-06-300001487918ofs:Security1CommonMember2025-04-012025-06-300001487918ofs:Security1CommonMember2025-03-310001487918ofs:Security1CommonMember2025-01-012025-03-310001487918ofs:Security1CommonMember2024-12-310001487918ofs:Security1CommonMember2024-10-012024-12-310001487918ofs:Security1CommonMember2024-09-300001487918ofs:Security1CommonMember2024-07-012024-09-300001487918ofs:Security1CommonMember2024-06-300001487918ofs:Security1CommonMember2024-04-012024-06-300001487918ofs:Security1CommonMember2024-03-310001487918ofs:Security1CommonMember2024-01-012024-03-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918ofs:A475PercentNotesDue2026Member2025-12-310001487918ofs:A475PercentNotesDue2026Member2024-12-310001487918ofs:A475PercentNotesDue2026Member2023-12-310001487918ofs:A475PercentNotesDue2026Member2022-12-310001487918ofs:A475PercentNotesDue2026Member2021-12-310001487918ofs:A495PercentNotesDue2028Member2025-12-310001487918ofs:A495PercentNotesDue2028Member2025-01-012025-12-310001487918ofs:A495PercentNotesDue2028Member2024-12-310001487918ofs:A495PercentNotesDue2028Member2024-01-012024-12-310001487918ofs:A495PercentNotesDue2028Member2023-12-310001487918ofs:A495PercentNotesDue2028Member2023-01-012023-12-310001487918ofs:A495PercentNotesDue2028Member2022-12-310001487918ofs:A495PercentNotesDue2028Member2022-01-012022-12-310001487918ofs:A495PercentNotesDue2028Member2021-12-310001487918ofs:A495PercentNotesDue2028Member2021-01-012021-12-310001487918ofs:A7.50PercentNotesDue2028Member2025-12-310001487918ofs:A7.50PercentNotesDue2028Member2025-01-012025-12-310001487918ofs:A8.00PercentNotesDue2029Member2025-12-310001487918ofs:A6.25PercentNotesDue2023Member2020-12-310001487918ofs:A6.25PercentNotesDue2023Member2020-01-012020-12-310001487918ofs:A6375PercentNotesDue2025Member2020-12-310001487918ofs:A6375PercentNotesDue2025Member2020-01-012020-12-310001487918ofs:A6375PercentNotesDue2025Member2019-12-310001487918ofs:A6375PercentNotesDue2025Member2019-01-012019-12-310001487918ofs:A6375PercentNotesDue2025Member2018-12-310001487918ofs:A6375PercentNotesDue2025Member2018-01-012018-12-310001487918ofs:A650PercentNotesDue2025Member2020-12-310001487918ofs:A650PercentNotesDue2025Member2020-01-012020-12-310001487918ofs:A650PercentNotesDue2025Member2019-12-310001487918ofs:A650PercentNotesDue2025Member2019-01-012019-12-310001487918ofs:A650PercentNotesDue2025Member2018-12-310001487918ofs:A650PercentNotesDue2025Member2018-01-012018-12-310001487918ofs:A595PercentNotesDue2026Member2020-12-310001487918ofs:A595PercentNotesDue2026Member2020-01-012020-12-310001487918ofs:A595PercentNotesDue2026Member2019-12-310001487918ofs:A595PercentNotesDue2026Member2019-01-012019-12-310001487918ofs:BNPFacilityMember2025-12-310001487918ofs:BNPFacilityMember2024-12-310001487918ofs:BNPFacilityMember2023-12-310001487918ofs:BNPFacilityMember2022-12-310001487918ofs:BNPFacilityMember2021-12-310001487918ofs:BNPFacilityMember2020-12-310001487918ofs:BNPFacilityMember2019-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2025-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2024-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2023-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2022-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2021-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2020-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2019-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2018-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2017-12-310001487918ofs:BancOfCaliforniaCreditFacilityMember2016-12-310001487918ofs:SBADebenturesMember2023-12-310001487918ofs:SBADebenturesMember2022-12-310001487918ofs:SBADebenturesMember2021-12-310001487918ofs:SBADebenturesMember2020-12-310001487918ofs:SBADebenturesMember2019-12-310001487918ofs:SBADebenturesMember2018-12-310001487918ofs:SBADebenturesMember2017-12-310001487918ofs:SBADebenturesMember2016-12-3100014879182025-12-3100014879182024-12-3100014879182023-12-3100014879182022-12-3100014879182021-12-3100014879182020-12-3100014879182019-12-3100014879182018-12-3100014879182017-12-3100014879182016-12-310001487918ofs:BNPFacilityMember2025-01-012025-12-310001487918ofs:UnsecuredNotesMember2025-01-012025-12-310001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2024-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-12-310001487918us-gaap:UnsecuredDebtMember2024-12-310001487918srt:AffiliatedEntityMember2025-12-310001487918srt:AffiliatedEntityMember2024-12-310001487918us-gaap:NonrelatedPartyMember2025-12-310001487918us-gaap:NonrelatedPartyMember2024-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2025-01-012025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2024-01-012024-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMember2023-01-012023-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2025-01-012025-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2024-01-012024-12-310001487918us-gaap:InvestmentAffiliatedIssuerNoncontrolledMember2023-01-012023-12-3100014879182024-01-012024-12-3100014879182023-01-012023-12-310001487918us-gaap:InvestmentAffiliatedIssuerControlledMember2025-01-012025-12-310001487918us-gaap:InvestmentAffiliatedIssuerControlledMember2024-01-012024-12-310001487918us-gaap:InvestmentAffiliatedIssuerControlledMember2023-01-012023-12-310001487918us-gaap:CommonStockMember2022-12-310001487918us-gaap:AdditionalPaidInCapitalMember2022-12-310001487918us-gaap:RetainedEarningsMember2022-12-310001487918us-gaap:RetainedEarningsMember2023-01-012023-12-310001487918us-gaap:CommonStockMember2023-01-012023-12-310001487918us-gaap:AdditionalPaidInCapitalMember2023-01-012023-12-310001487918us-gaap:CommonStockMember2023-12-310001487918us-gaap:AdditionalPaidInCapitalMember2023-12-310001487918us-gaap:RetainedEarningsMember2023-12-310001487918us-gaap:RetainedEarningsMember2024-01-012024-12-310001487918us-gaap:AdditionalPaidInCapitalMember2024-01-012024-12-310001487918us-gaap:CommonStockMember2024-01-012024-12-310001487918us-gaap:CommonStockMember2024-12-310001487918us-gaap:AdditionalPaidInCapitalMember2024-12-310001487918us-gaap:RetainedEarningsMember2024-12-310001487918us-gaap:RetainedEarningsMember2025-01-012025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2025-01-012025-12-310001487918us-gaap:CommonStockMember2025-01-012025-12-310001487918us-gaap:CommonStockMember2025-12-310001487918us-gaap:AdditionalPaidInCapitalMember2025-12-310001487918us-gaap:RetainedEarningsMember2025-12-31000148791812 Interactive, LLC (D/B/A PerkSpot) | First Lien Debt 12025-12-31000148791812 Interactive, LLC | First Lien Debt 12025-12-31000148791812 Interactive, LLC (D/B/A PerkSpot) | First Lien Debt 22025-12-31000148791812 Interactive, LLC | First Lien Debt 22025-12-31000148791812 Interactive, LLC (D/B/A PerkSpot) | First Lien Debt (Revolver)2025-12-31000148791812 Interactive, LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:A12InteractiveLLCMember2025-12-31000148791824 Seven Holdco, LLC | First Lien Debt2025-12-310001487918AIDC IntermediateCo 2, LLC | First Lien Debt 12025-12-310001487918AIDC IntermediateCo 2, LLC | First Lien Debt 22025-12-310001487918ofs:AIDCIntermediateCo2LLCMember2025-12-310001487918Allen Media, LLC | First Lien Debt2025-12-310001487918Associated Spring, LLC | First Lien Debt2025-12-310001487918Associated Spring, LLC | First Lien Debt (Delayed Draw)2025-12-310001487918ofs:AssociatedSpringLLCMember2025-12-310001487918Asurion, LLC | First Lien Debt2025-12-310001487918Avison Young Inc. | First Lien Debt 12025-12-310001487918Avison Young Inc. | First Lien Debt 22025-12-310001487918Avison Young Inc. | First Lien Debt 32025-12-310001487918Avison Young Inc. | First Lien Debt 42025-12-310001487918Avison Young Inc. | First Lien Debt 52025-12-310001487918Avison Young Inc. | Common Equity2025-12-310001487918Avison Young Inc. | Preferred Equity2025-12-310001487918ofs:AvisonYoungInc.Member2025-12-310001487918BayMark Health Services, Inc. | Second Lien Debt 12025-12-310001487918BayMark Health Services, Inc. | Second Lien Debt 22025-12-310001487918ofs:BayMarkHealthServicesIncMember2025-12-310001487918Boca Home Care Holdings, Inc. | First Lien Debt 2025-12-310001487918Boca Home Care Holdings, Inc. | First Lien Debt (Revolver)2025-12-310001487918Boca Home Care Holdings, Inc. | Common Equity2025-12-310001487918Boca Home Care Holdings, Inc. | Preferred Equity2025-12-310001487918ofs:BocaHomeCareHoldingsIncMember2025-12-310001487918Clevertech Bidco, LLC | First Lien Debt2025-12-310001487918Clevertech Bidco, LLC | First Lien Debt (Revolver) 2025-12-310001487918ofs:ClevertechBidcoLLCMember2025-12-310001487918Constellis Holdings, LLC | Common Equity2025-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | First Lien Debt2025-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | First Lien Debt (Revolver)2025-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | Second Lien Debt 2025-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | Equity Participation Rights2025-12-310001487918ofs:EnvocoreHoldingLLCFKALRIHoldingLLCMember2025-12-310001487918Excelin Home Health, LLC | Second Lien Debt2025-12-310001487918GoTo Group (F/K/A LogMeIn, Inc.) | First Lien Debt 12025-12-310001487918GoTo Group (F/K/A LogMeIn, Inc.) | First Lien Debt 22025-12-310001487918ofs:GoToGroupFKALogMeInInc.Member2025-12-310001487918Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) | First Lien Debt2025-12-310001487918Honor HN Buyer Inc | First Lien Debt 12025-12-310001487918Honor HN Buyer Inc | First Lien Debt 22025-12-310001487918Honor HN Buyer Inc | First Lien Debt 32025-12-310001487918Honor HN Buyer Inc | First Lien Debt (Revolver)2025-12-310001487918Honor HN Buyer Inc | First Lien Debt (Delayed Draw) 2025-12-310001487918ofs:HonorHNBuyerIncMember2025-12-310001487918Idera Inc. | Second Lien Debt2025-12-310001487918Inergex Holdings, LLC | First Lien Debt2025-12-310001487918Inergex Holdings, LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:InergexHoldingsLLCMember2025-12-310001487918Integrated Energy Services, LLC | First Lien Debt2025-12-310001487918Integrated Energy Services, LLC | First Lien Debt (Delayed Draw)2025-12-310001487918Integrated Energy Services, LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:IntegratedEnergyServicesLLCMember2025-12-310001487918JP Intermediate B, LLC | First Lien Debt 12025-12-310001487918JP Intermediate B, LLC | First Lien Debt 22025-12-310001487918JP Intermediate B, LLC | Common Equity2025-12-310001487918ofs:JPIntermediateBLLCMember2025-12-310001487918Kreg LLC | First Lien Debt2025-12-310001487918Kreg LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:KregLLCMember2025-12-310001487918M2S Group Intermediate Holdings Inc. | First Lien Debt2025-12-310001487918Medrina LLC | First Lien Debt 12025-12-310001487918Medrina LLC | First Lien Debt 22025-12-310001487918Medrina LLC | First Lien Debt (Revolver) 2025-12-310001487918ofs:MedrinaLLCMember2025-12-310001487918Metasource, LLC | First Lien Debt2025-12-310001487918One GI LLC | First Lien Debt 12025-12-310001487918One GI LLC | First Lien Debt 22025-12-310001487918One GI LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:OneGILLCMember2025-12-310001487918Planet Bingo | LLC (F/K/A 3rd Rock Gaming Holdings, LLC), First Lien Debt2025-12-310001487918PM Acquisition LLC | Common Equity2025-12-310001487918PSB Group, LLC | First Lien Debt2025-12-310001487918PSB Group, LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:PSBGroupLLCMember2025-12-310001487918Redstone Holdco 2 LP (F/K/A RSA Security) | First Lien Debt2025-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12025-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22025-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | Warrants2025-12-310001487918ofs:RideNowGroupInc.Member2025-12-310001487918RPLF Holdings, LLC | Common Equity2025-12-310001487918Sentry Centers Holdings, LLC | Preferred Equity2025-12-310001487918Signal Parent, Inc. | First Lien Debt2025-12-310001487918SS Acquisition, LLC | First Lien Debt 12025-12-310001487918SS Acquisition, LLC | First Lien Debt (Revolver)2025-12-310001487918ofs:SSAcquisitionLLCMember2025-12-310001487918Staples, Inc. | First Lien Debt2025-12-310001487918TalentSmart Holdings, LLC | Common Equity2025-12-310001487918Tolemar Acquisition, INC. | First Lien Debt2025-12-310001487918Tolemar Acquisition, INC. | First Lien Debt (Revolver)2025-12-310001487918ofs:TolemarAcquisitionINCMember2025-12-310001487918United Biologics Holdings, LLC | Preferred Equity2025-12-310001487918Wellful Inc. (F/K/A KNS Acquisition Corp.) | First Lien Debt2025-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMemberofs:DebtAndEquityInvestmentsMember2025-12-310001487918Apex Credit CLO 2020 Ltd. | Subordinated Notes2025-12-310001487918Apex Credit CLO 2021 Ltd. | Subordinated Notes2025-12-310001487918Apex Credit CLO 2022-1 Ltd. | Subordinated Notes2025-12-310001487918Battalion CLO XI Ltd. | Mezzanine Debt - Class E2025-12-310001487918BlueMountain CLO XXXV Ltd. | Subordinated Notes2025-12-310001487918Brightwood Capital MM CLO 2023-1, Ltd. | Subordinated Notes2025-12-310001487918Canyon CLO 2019-1, Ltd. | Subordinated Notes2025-12-310001487918CBAMR 2017-1, Ltd. | Subordinated Notes2025-12-310001487918ICG US CLO 2021-3 Ltd | Subordinated Notes2025-12-310001487918LCM 42 Ltd. | Subordinated Notes2025-12-310001487918Madison Park Funding XXIX, Ltd. | Subordinated Notes2025-12-310001487918Trinitas CLO VIII, Ltd. | Subordinated Notes2025-12-310001487918Venture 45 CLO, Limited. | Mezzanine Debt - Class E2025-12-310001487918Voya CLO 2024-7, Ltd. | Subordinated Notes2025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-12-310001487918Contract Datascan Holdings, Inc. | Preferred Equity 12025-12-310001487918Contract Datascan Holdings, Inc. | Preferred Equity 22025-12-310001487918Contract Datascan Holdings, Inc. | Common Equity2025-12-310001487918Contract Datascan Holdings, Inc. | Warrants 12025-12-310001487918Contract Datascan Holdings, Inc. | Warrants 22025-12-310001487918ofs:ContractDatascanHoldingsIncMember2025-12-310001487918DRS Imaging Services, LLC | Common Equity2025-12-310001487918Pfanstiehl Holdings, Inc. | Common Equity2025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 12025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 22025-12-310001487918SSJA Bariatric Management LLC | Common Equity2025-12-310001487918ofs:SSJABariatricManagementLLCMember2025-12-310001487918First American Treasury Obligations Fund Class Z2025-12-310001487918Morgan Stanley Institutional Liquidity Funds - Government Portfolio Advisory Class2025-12-310001487918ofs:VariableRateLoansMember2025-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 12025-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 12025-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 22025-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 22025-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 32025-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 32025-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 42025-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 42025-12-310001487918JP Intermediate B, LLC | First Lien Debt2025-12-310001487918srt:MinimumMemberJP Intermediate B, LLC | First Lien Debt2025-12-310001487918srt:MaximumMemberJP Intermediate B, LLC | First Lien Debt2025-12-310001487918Kreg, LLC | First Lien Debt2025-12-310001487918srt:MinimumMemberKreg, LLC | First Lien Debt2025-12-310001487918srt:MaximumMemberKreg, LLC | First Lien Debt2025-12-310001487918srt:MinimumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12025-12-310001487918srt:MaximumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12025-12-310001487918srt:MinimumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22025-12-310001487918srt:MaximumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22025-12-310001487918srt:MinimumMemberWellful Inc. (F/K/A KNS Acquisition Corp.) | First Lien Debt2025-12-310001487918srt:MaximumMemberWellful Inc. (F/K/A KNS Acquisition Corp.) | First Lien Debt2025-12-31000148791824 Seven Holdco, LLC | First Lien Debt2024-12-310001487918AIDC IntermediateCo 2, LLC | First Lien Debt 12024-12-310001487918AIDC IntermediateCo 2, LLC | First Lien Debt 22024-12-310001487918ofs:AIDCIntermediateCo2LLCMember2024-12-310001487918Allen Media, LLC | First Lien Debt2024-12-310001487918Associated Spring, LLC | First Lien Debt2024-12-310001487918Associated Spring, LLC | First Lien Debt (Delayed Draw)2024-12-310001487918ofs:AssociatedSpringLLCMember2024-12-310001487918Avison Young Inc. | First Lien Debt 12024-12-310001487918Avison Young Inc. | First Lien Debt 22024-12-310001487918Avison Young Inc. | Common Equity2024-12-310001487918Avison Young Inc. | Preferred Equity2024-12-310001487918ofs:AvisonYoungInc.Member2024-12-310001487918BayMark Health Services, Inc. | Second Lien Debt 12024-12-310001487918BayMark Health Services, Inc. | Second Lien Debt 22024-12-310001487918ofs:BayMarkHealthServicesIncMember2024-12-310001487918BCPE North Star US Holdco 2, Inc. (F/K/A Dessert Holdings) | Second Lien Debt2024-12-310001487918Boca Home Care Holdings, Inc. | First Lien Debt 2024-12-310001487918Boca Home Care Holdings, Inc. | First Lien Debt (Revolver)2024-12-310001487918Boca Home Care Holdings, Inc. | Common Equity2024-12-310001487918Boca Home Care Holdings, Inc. | Preferred Equity2024-12-310001487918ofs:BocaHomeCareHoldingsIncMember2024-12-310001487918Clevertech Bidco, LLC | First Lien Debt2024-12-310001487918Clevertech Bidco, LLC | First Lien Debt (Revolver) 2024-12-310001487918ofs:ClevertechBidcoLLCMember2024-12-310001487918Constellis Holdings, LLC | Common Equity2024-12-310001487918Convergint Technologies Holdings, LLC | Second Lien Debt2024-12-310001487918Creation Technologies Inc. | First Lien Debt2024-12-310001487918East West Manufacturing LLC | First Lien Debt2024-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | First Lien Debt2024-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | First Lien Debt (Revolver)2024-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | Second Lien Debt2024-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) | Equity Participation Rights2024-12-310001487918ofs:EnvocoreHoldingLLCFKALRIHoldingLLCMember2024-12-310001487918Excelin Home Health, LLC | Second Lien Debt2024-12-310001487918First Brands Group, LLC | First Lien Debt 12024-12-310001487918First Brands Group, LLC | First Lien Debt 22024-12-310001487918ofs:FirstBrandsGroupLLCMember2024-12-310001487918GGC Aerospace Topco L.P. | Common Equity 12024-12-310001487918GGC Aerospace Topco L.P. | Common Equity 22024-12-310001487918ofs:GGCAerospaceTopcoLPMember2024-12-310001487918GoTo Group (F/K/A LogMeIn, Inc.) | First Lien Debt 12024-12-310001487918GoTo Group (F/K/A LogMeIn, Inc.) | First Lien Debt 22024-12-310001487918ofs:GoToGroupFKALogMeInInc.Member2024-12-310001487918Heritage Grocers Group, LLC. (F/K/A Tony's Fresh Market / Cardenas Markets) | First Lien Debt2024-12-310001487918Honor HN Buyer Inc | First Lien Debt 12024-12-310001487918Honor HN Buyer Inc | First Lien Debt 22024-12-310001487918Honor HN Buyer Inc | First Lien Debt (Revolver)2024-12-310001487918Honor HN Buyer Inc | First Lien Debt 32024-12-310001487918Honor HN Buyer Inc | First Lien Debt (Delayed Draw)2024-12-310001487918ofs:HonorHNBuyerIncMember2024-12-310001487918Idera Inc. | Second Lien Debt2024-12-310001487918Inergex Holdings, LLC | First Lien Debt2024-12-310001487918Inergex Holdings, LLC | First Lien Debt (Revolver)2024-12-310001487918ofs:InergexHoldingsLLCMember2024-12-310001487918Ivanti Software, Inc. | First Lien Debt2024-12-310001487918JP Intermediate B, LLC | First Lien Debt2024-12-310001487918Kreg LLC | First Lien Debt2024-12-310001487918Kreg LLC | First Lien Debt (Revolver)2024-12-310001487918ofs:KregLLCMember2024-12-310001487918Medrina LLC | First Lien Debt2024-12-310001487918Medrina LLC | First Lien Debt (Delayed Draw) 2024-12-310001487918Medrina LLC | First Lien Debt (Revolver) 2024-12-310001487918ofs:MedrinaLLCMember2024-12-310001487918Metasource, LLC | First Lien Debt2024-12-310001487918One GI LLC | First Lien Debt 12024-12-310001487918One GI LLC |First Lien Debt 22024-12-310001487918One GI LLC | First Lien Debt (Revolver)2024-12-310001487918ofs:OneGILLCMember2024-12-310001487918Planet Bingo, LLC (F/K/A 3rd Rock Gaming Holdings, LLC) | First Lien Debt2024-12-310001487918PM Acquisition LLC | Common Equity2024-12-310001487918Redstone Holdco 2 LP (F/K/A RSA Security) | First Lien Debt2024-12-310001487918Redstone Holdco 2 LP (F/K/A RSA Security) | Second Lien Debt2024-12-310001487918ofs:RedstoneHoldco2LPFKARSASecurityMember2024-12-310001487918RPLF Holdings, LLC | Common Equity2024-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12024-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22024-12-310001487918RideNow Group, Inc. (F/K/A RumbleOn, Inc.) | Warrants2024-12-310001487918ofs:RumbleOnIncMember2024-12-310001487918Sentry Centers Holdings, LLC | Preferred Equity2024-12-310001487918Signal Parent, Inc. | First Lien Debt2024-12-310001487918SS Acquisition, LLC | First Lien Debt 2024-12-310001487918SS Acquisition, LLC | First Lien Debt (Revolver)2024-12-310001487918ofs:SSAcquisitionLLCMember2024-12-310001487918SSJA Bariatric Management LLC | First Lien Debt 12024-12-310001487918SSJA Bariatric Management LLC | First Lien Debt 22024-12-310001487918SSJA Bariatric Management LLC | First Lien Debt 32024-12-310001487918SSJA Bariatric Management LLC | First Lien Debt (Revolver)2024-12-310001487918SSJA Bariatric Management LLC | Common Equity2024-12-310001487918ofs:SSJABariatricManagementLLCMember2024-12-310001487918Staples, Inc. | First Lien Debt2024-12-310001487918Tolemar Acquisition, INC. | First Lien Debt2024-12-310001487918Tolemar Acquisition, INC. | First Lien Debt (Revolver)2024-12-310001487918ofs:TolemarAcquisitionINCMember2024-12-310001487918TruGreen Limited Partnership | Second Lien Debt2024-12-310001487918United Biologics Holdings, LLC | Preferred Equity2024-12-310001487918Wellful Inc. (F/K/A KNS Acquisition Corp.) | First Lien Debt 12024-12-310001487918Wellful Inc. (F/K/A KNS Acquisition Corp.) | First Lien Debt 22024-12-310001487918ofs:WellfulInc.Member2024-12-310001487918us-gaap:InvestmentUnaffiliatedIssuerMemberofs:DebtAndEquityInvestmentsMember2024-12-310001487918Apex Credit CLO 2020 Ltd. | Subordinated Notes2024-12-310001487918Apex Credit CLO 2021 Ltd. | Subordinated Notes2024-12-310001487918Apex Credit CLO 2022-1 Ltd. | Subordinated Notes2024-12-310001487918Battalion CLO XI Ltd. | Mezzanine Debt - Class E2024-12-310001487918BlueMountain CLO XXXV Ltd. | Subordinated Notes2024-12-310001487918Brightwood Capital MM CLO 2023-1, Ltd. | Mezzanine Debt - Class E2024-12-310001487918Brightwood Capital MM CLO 2023-1, Ltd. | Subordinated Notes2024-12-310001487918ofs:BrightwoodCapitalMMCLO20231Ltd.Member2024-12-310001487918Canyon CLO 2019-1, Ltd. | Subordinated Notes2024-12-310001487918Dryden 76 CLO, Ltd. | Subordinated Notes2024-12-310001487918ICG US CLO 2021-3, Ltd. | Subordinated Notes2024-12-310001487918LCM 42 Ltd. | Subordinated Notes2024-12-310001487918Madison Park Funding XXIII, Ltd. | Subordinated Notes2024-12-310001487918Madison Park Funding XXIX, Ltd. | Subordinated Notes2024-12-310001487918Monroe Capital MML CLO X, Ltd. | Mezzanine Debt - Class E-R2024-12-310001487918Octagon Investment Partners 39, Ltd. | Subordinated Notes2024-12-310001487918Park Avenue Institutional Advisers CLO Ltd 2021-1 | Mezzanine Debt - Class D2024-12-310001487918THL Credit Wind River 2019‐3 CLO Ltd. | Subordinated Notes2024-12-310001487918Trinitas CLO VIII, Ltd. | Subordinated Notes2024-12-310001487918Venture 45 CLO Limited | Mezzanine Debt - Class E2024-12-310001487918ofs:StructuredFinanceSecuritiesMember2024-12-310001487918Contract Datascan Holdings, Inc. | Preferred Equity2024-12-310001487918Contract Datascan Holdings, Inc. | Common Equity2024-12-310001487918ofs:ContractDatascanHoldingsIncMember2024-12-310001487918DRS Imaging Services, LLC | Common Equity2024-12-310001487918Pfanstiehl Holdings, Inc. | Common Equity2024-12-310001487918TalentSmart Holdings, LLC | Common Equity2024-12-310001487918ofs:VariableRateLoansMember2024-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 12024-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 12024-12-310001487918srt:MinimumMemberAvison Young Inc. | First Lien Debt 22024-12-310001487918srt:MaximumMemberAvison Young Inc. | First Lien Debt 22024-12-310001487918srt:MinimumMemberInergex Holdings, LLC | First Lien Debt2024-12-310001487918srt:MaximumMemberInergex Holdings, LLC | First Lien Debt2024-12-310001487918srt:MinimumMemberInergex Holdings, LLC | First Lien Debt (Revolver)2024-12-310001487918srt:MaximumMemberInergex Holdings, LLC | First Lien Debt (Revolver)2024-12-310001487918srt:MinimumMemberKreg LLC | First Lien Debt2024-12-310001487918srt:MaximumMemberKreg LLC | First Lien Debt2024-12-310001487918srt:MinimumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12024-12-310001487918srt:MaximumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 12024-12-310001487918srt:MinimumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22024-12-310001487918srt:MaximumMemberRideNow Group, Inc. (F/K/A RumbleOn, Inc.) | First Lien Debt 22024-12-310001487918ofs:InvestmentAdvisoryAgreementMembersrt:AffiliatedEntityMember2025-12-310001487918ofs:InvestmentAdvisoryAgreementMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateQuarterlyMembersrt:AffiliatedEntityMember2024-01-012024-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateQuarterlyMembersrt:AffiliatedEntityMember2023-01-012023-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateQuarterlyMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateAnnualizedMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateAnnualizedMembersrt:AffiliatedEntityMember2023-01-012023-12-310001487918ofs:InvestmentAdvisoryAgreementBaseManagementFeeRateAnnualizedMembersrt:AffiliatedEntityMember2024-01-012024-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeMembersrt:AffiliatedEntityMember2025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRatePreIncentiveFeeNetIncomeMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateQuarterlyHurdleRateMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateAnnualizedHurdleRateMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRatePreIncentiveFeeNetInvestmentIncomeBelowCatchUpThresholdMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateQuarterlyCatchUpThresholdMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRatePreIncentiveFeeNetInvestmentIncomeExceedsCatchUpThresholdMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:InvestmentAdvisoryAgreementIncentiveFeeRateRealizedCapitalGainsMembersrt:AffiliatedEntityMember2025-01-012025-12-310001487918ofs:OFSCapitalCorporationMemberofs:AffiliatesOfOFSAdvisorMember2025-12-310001487918us-gaap:DebtSecuritiesMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMember2025-12-310001487918us-gaap:EquitySecuritiesMember2025-12-310001487918us-gaap:PreferredStockMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMember2025-12-310001487918ofs:FirstLienDebtInvestmentsUnitrancheMember2025-12-310001487918country:US2025-12-310001487918country:US2024-12-310001487918country:CA2025-12-310001487918country:CA2024-12-310001487918country:KY2025-12-310001487918country:KY2024-12-310001487918country:JE2025-12-310001487918country:JE2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:AdministrativeAndSupportAndWasteManagementAndRemediationServicesMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberus-gaap:ConstructionSectorMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:EducationServicesMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:FinanceAndInsuranceMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:HealthCareAndSocialAssistanceMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:InformationMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ManagementOfCompaniesAndEnterprisesMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ManufacturingMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:OtherServicesExceptPublicAdministrationMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ProfessionalScientificAndTechnicalServicesMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:PublicAdministrationMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RealEstateAndRentalAndLeasingMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RetailTradeMember2025-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:WholesaleTradeMember2025-12-310001487918us-gaap:DebtSecuritiesMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMember2024-12-310001487918us-gaap:EquitySecuritiesMember2024-12-310001487918us-gaap:PreferredStockMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMember2024-12-310001487918ofs:FirstLienDebtInvestmentsUnitrancheMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:AdministrativeAndSupportAndWasteManagementAndRemediationServicesMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberus-gaap:ConstructionSectorMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:EducationServicesMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:FinanceAndInsuranceMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:HealthCareAndSocialAssistanceMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:InformationMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ManagementOfCompaniesAndEnterprisesMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ManufacturingMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:ProfessionalScientificAndTechnicalServicesMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:PublicAdministrationMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RealEstateAndRentalAndLeasingMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:RetailTradeMember2024-12-310001487918ofs:DebtAndEquityInvestmentsMemberofs:WholesaleTradeMember2024-12-310001487918ofs:PfanstiehlHoldingsIncMember2025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:PfanstiehlHoldingsIncMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:PfanstiehlHoldingsIncMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:KregLLCMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:KregLLCMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:SSAcquisitionLLCMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:SSAcquisitionLLCMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:InergexHoldingsLLCMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:InvestmentConcentrationRiskMemberofs:InergexHoldingsLLCMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918ofs:PortfolioCustomersOverTenPercentMember2025-12-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:InvestmentConcentrationRiskMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:PortfolioCustomersOverTenPercentMemberofs:InvestmentConcentrationRiskMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918SS Acquisition, LLC, First Lien Debt2025-12-310001487918ofs:SingleAdviserMemberofs:AdviserConcentrationRiskMemberofs:InvestmentPortfolioFairValueMember2025-01-012025-12-310001487918ofs:SingleAdviserMemberofs:AdviserConcentrationRiskMemberofs:InvestmentPortfolioNetAssetsMember2025-01-012025-12-310001487918us-gaap:FairValueInputsLevel3Member2025-12-310001487918us-gaap:FairValueInputsLevel3Member2024-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2025-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2025-12-310001487918us-gaap:DebtSecuritiesMember2025-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2025-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2025-12-310001487918us-gaap:EquitySecuritiesMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel1Member2025-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel2Member2025-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel3Member2025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-12-310001487918us-gaap:FairValueInputsLevel1Member2025-12-310001487918us-gaap:FairValueInputsLevel2Member2025-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-12-310001487918us-gaap:DebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-12-310001487918us-gaap:DebtSecuritiesMember2024-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-12-310001487918us-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-12-310001487918us-gaap:EquitySecuritiesMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel1Member2024-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel2Member2024-12-310001487918ofs:StructuredFinanceSecuritiesMemberus-gaap:FairValueInputsLevel3Member2024-12-310001487918ofs:StructuredFinanceSecuritiesMember2024-12-310001487918us-gaap:FairValueInputsLevel1Member2024-12-310001487918us-gaap:FairValueInputsLevel2Member2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputQuotedPriceMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2025-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberofs:MeasurementInputNetAssetValueLiquidationMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputQuotedPriceMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesSubordinatedNotesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputDiscountMarginMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMezzanineDebtMemberofs:MeasurementInputRecoveryRateMemberus-gaap:FairValueInputsLevel3Memberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:WeightedAverageMember2024-12-310001487918us-gaap:PreferredStockMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918us-gaap:PreferredStockMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputEbitdaMultipleMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputEbitdaMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMemberus-gaap:MeasurementInputRevenueMultipleMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MinimumMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:MaximumMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberus-gaap:MeasurementInputRevenueMultipleMemberus-gaap:FairValueInputsLevel3Memberus-gaap:MarketApproachValuationTechniqueMembersrt:WeightedAverageMember2024-12-310001487918ofs:FirstLienDebtInvestmentsMember2024-12-310001487918ofs:SecondLienDebtInvestmentsMember2024-12-310001487918us-gaap:PreferredStockMember2024-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2024-12-310001487918ofs:StructuredFinanceSecuritiesMember2024-12-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2025-01-012025-12-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2025-01-012025-12-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2025-01-012025-12-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2025-01-012025-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2025-01-012025-12-310001487918ofs:FeeIncomeMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:FeeIncomeMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:FeeIncomeMember2025-01-012025-12-310001487918us-gaap:PreferredStockMemberofs:FeeIncomeMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:FeeIncomeMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:FeeIncomeMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMember2025-01-012025-12-310001487918ofs:SecondLienDebtInvestmentsMember2025-01-012025-12-310001487918us-gaap:PreferredStockMember2025-01-012025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-01-012025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-01-012025-12-310001487918ofs:FirstLienDebtInvestmentsMember2025-12-310001487918ofs:SecondLienDebtInvestmentsMember2025-12-310001487918us-gaap:PreferredStockMember2025-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2025-12-310001487918ofs:StructuredFinanceSecuritiesMember2025-12-310001487918ofs:FirstLienDebtInvestmentsMember2023-12-310001487918ofs:SecondLienDebtInvestmentsMember2023-12-310001487918us-gaap:SubordinatedDebtMember2023-12-310001487918us-gaap:PreferredStockMember2023-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2023-12-310001487918ofs:StructuredFinanceSecuritiesMember2023-12-310001487918ofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesRealizedGainLossMember2024-01-012024-12-310001487918ofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:DebtAndEquitySecuritiesUnrealizedGainLossMember2024-01-012024-12-310001487918ofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAmortizationOfNetLoanFeesMember2024-01-012024-12-310001487918ofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingAccretionOfInterestIncomeMember2024-01-012024-12-310001487918ofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:InterestIncomeOperatingCapitalizedPaidInKindInterestAndDividendsMember2024-01-012024-12-310001487918ofs:FeeIncomeMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMemberofs:FeeIncomeMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMemberofs:FeeIncomeMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMemberofs:FeeIncomeMember2024-01-012024-12-310001487918us-gaap:PreferredStockMemberofs:FeeIncomeMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMemberofs:FeeIncomeMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMemberofs:FeeIncomeMember2024-01-012024-12-310001487918ofs:FirstLienDebtInvestmentsMember2024-01-012024-12-310001487918ofs:SecondLienDebtInvestmentsMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMember2024-01-012024-12-310001487918us-gaap:PreferredStockMember2024-01-012024-12-310001487918ofs:CommonEquityWarrantsAndOtherMember2024-01-012024-12-310001487918ofs:StructuredFinanceSecuritiesMember2024-01-012024-12-310001487918us-gaap:SubordinatedDebtMember2024-12-310001487918us-gaap:DebtSecuritiesMember2025-01-012025-12-310001487918us-gaap:DebtSecuritiesMember2024-01-012024-12-310001487918us-gaap:EquitySecuritiesMember2025-01-012025-12-310001487918us-gaap:EquitySecuritiesMember2024-01-012024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel1Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel2Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Memberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918ofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel1Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel2Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:FairValueInputsLevel3Memberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMemberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMemberofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2024-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-12-310001487918us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310001487918us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-31000148791812 Interactive, LLC (D/B/A PerkSpot), First Lien Debt (Revolver)2025-12-310001487918Associated Spring, LLC, First Lien Debt (Delayed Draw)2025-12-310001487918Avison Young Inc. , First Lien Debt (Delayed Draw)2025-12-310001487918Boca Home Care Holdings, Inc., First Lien Debt (Revolver)2025-12-310001487918Clevertech Bidco, LLC, First Lien Debt (Revolver)2025-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC), First Lien Debt (Revolver)2025-12-310001487918Honor HN Buyer Inc., First Lien Debt (Revolver)2025-12-310001487918Honor HN Buyer Inc., First Lien Debt (Delayed Draw)2025-12-310001487918Integrated Energy Services, LLC, First Lien Debt (Delayed Draw)2025-12-310001487918Integrated Energy Services, LLC, First Lien Debt (Revolver)2025-12-310001487918Medrina LLC, First Lien Debt (Revolver)2025-12-310001487918PSB Group, LLC, First Lien Debt (Revolver)2025-12-310001487918SS Acquisition, LLC, First Lien Debt (Revolver)2025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt (Delayed Draw)2025-12-310001487918Tolemar Acquisition, Inc., First Lien Debt (Revolver)2025-12-310001487918Associated Spring, LLC , First Lien Debt (Delayed Draw)2024-12-310001487918Boca Home Care Holdings, Inc. , First Lien Debt (Revolver)2024-12-310001487918Clevertech Bidco, LLC , First Lien Debt (Revolver)2024-12-310001487918Envocore Holding, LLC (F/K/A LRI Holding, LLC) , First Lien Debt (Revolver)2024-12-310001487918Honor HN Buyer Inc. , First Lien Debt (Revolver)2024-12-310001487918Honor HN Buyer Inc. , First Lien Debt (Delayed Draw)2024-12-310001487918Kreg LLC , First Lien Debt (Revolver)2024-12-310001487918Medrina LLC , First Lien Debt (Revolver)2024-12-310001487918Medrina LLC , First Lien Debt (Delayed Draw)2024-12-310001487918SS Acquisition, LLC , First Lien Debt (Revolver)2024-12-310001487918Tolemar Acquisition, Inc. , First Lien Debt (Revolver)2024-12-310001487918Voya CLO 2024-7, Ltd. , Subordinated Notes2024-12-310001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-07-230001487918ofs:UnsecuredNotesDueJuly2028OverallotmentsMemberus-gaap:UnsecuredDebtMember2025-07-230001487918ofs:UnsecuredNotesDueJuly2028Memberus-gaap:UnsecuredDebtMember2025-07-232025-07-230001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-08-080001487918ofs:UnsecuredNotesDueAugust2029Memberus-gaap:UnsecuredDebtMember2025-08-082025-08-080001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2021-02-100001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2021-03-180001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-08-112025-08-110001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-08-212025-08-210001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMember2025-12-302025-12-300001487918ofs:UnsecuredNotesDueOctober2028Memberus-gaap:UnsecuredDebtMember2021-11-010001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2026-02-092026-02-090001487918us-gaap:UnsecuredDebtMember2025-01-012025-12-310001487918us-gaap:UnsecuredDebtMember2024-01-012024-12-310001487918us-gaap:UnsecuredDebtMember2023-01-012023-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2025-01-012025-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-140001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-150001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2023-12-152023-12-150001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2024-01-012024-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BancOfCaliforniaCreditFacilityMemberus-gaap:LineOfCreditMember2023-01-012023-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-08-190001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-08-200001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-08-202025-08-200001487918ofs:OFSCCFSMember2025-12-310001487918ofs:OFSCCFSMember2024-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2025-01-012025-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2024-01-012024-12-310001487918us-gaap:RevolvingCreditFacilityMemberofs:BNPFacilityMemberus-gaap:LineOfCreditMember2023-01-012023-12-310001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2025-01-012025-12-310001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2025-12-310001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2024-12-310001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2024-03-012024-03-010001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2023-01-012023-12-310001487918ofs:SBADebenturesMemberus-gaap:NotesPayableOtherPayablesMember2024-01-012024-12-310001487918ofs:OFSCCMBMember2025-12-310001487918ofs:OFSCCMBMember2024-12-310001487918ofs:ShortTermCapitalLossCarryforwardMember2025-12-310001487918ofs:ShortTermCapitalLossCarryforwardMember2024-12-310001487918ofs:LongTermCapitalLossCarryforwardMember2025-12-310001487918ofs:LongTermCapitalLossCarryforwardMember2024-12-310001487918ofs:RICEntitiesMember2025-12-310001487918ofs:RICEntitiesMember2024-12-310001487918ofs:TaxableBlockerSubsidiariesMember2025-12-310001487918ofs:TaxableBlockerSubsidiariesMember2024-12-3100014879182022-01-012022-12-3100014879182021-01-012021-12-310001487918ofs:O2025Q1AggregateDividendsMember2025-01-012025-12-310001487918ofs:O2025Q2AggregateDividendsMember2025-01-012025-12-310001487918ofs:O2025Q3AggregateDividendsMember2025-01-012025-12-310001487918ofs:O2025Q4AggregateDividendsMember2025-01-012025-12-310001487918ofs:O2024Q1AggregateDividendsMember2024-01-012024-12-310001487918ofs:O2024Q2AggregateDividendsMember2024-01-012024-12-310001487918ofs:O2024Q3AggregateDividendsMember2024-01-012024-12-310001487918ofs:O2024Q4AggregateDividendsMember2024-01-012024-12-310001487918ofs:O2023Q1AggregateDividendsMember2023-01-012023-12-310001487918ofs:O2023Q2AggregateDividendsMember2023-01-012023-12-310001487918ofs:O2023Q3AggregateDividendsMember2023-01-012023-12-310001487918ofs:O2023Q4AggregateDividendsMember2023-01-012023-12-3100014879182012-01-012025-12-3100014879182024-04-302024-04-300001487918Contract Datascan Holdings, Inc., Preferred Equity 12025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 12024-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 12025-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22024-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity 22025-12-310001487918Contract Datascan Holdings, Inc., Common Equity2025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Common Equity2024-12-310001487918Contract Datascan Holdings, Inc., Common Equity2025-12-310001487918Contract Datascan Holdings, Inc., Warrants 12025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Warrants 12024-12-310001487918Contract Datascan Holdings, Inc., Warrants 12025-12-310001487918Contract Datascan Holdings, Inc., Warrants 22025-01-012025-12-310001487918Contract Datascan Holdings, Inc., Warrants 22024-12-310001487918Contract Datascan Holdings, Inc., Warrants 22025-12-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2025-01-012025-12-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2024-12-310001487918ofs:ContractDatascanHoldingsIncMemberus-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918DRS Imaging Services, LLC, Common Equity2025-01-012025-12-310001487918DRS Imaging Services, LLC, Common Equity2024-12-310001487918DRS Imaging Services, LLC, Common Equity2025-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2025-01-012025-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2024-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 12025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 12024-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 22025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 22024-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 32025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 32024-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 32025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 42025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 42024-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 42025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 52025-01-012025-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 52024-12-310001487918SSJA Bariatric Management LLC, First Lien Debt 52025-12-310001487918SSJA Bariatric Management LLC, Common Equity 12025-01-012025-12-310001487918SSJA Bariatric Management LLC, Common Equity 12024-12-310001487918SSJA Bariatric Management LLC, Common Equity 12025-12-310001487918SSJA Bariatric Management LLC, Common Equity 22025-01-012025-12-310001487918SSJA Bariatric Management LLC, Common Equity 22024-12-310001487918SSJA Bariatric Management LLC, Common Equity 22025-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2025-01-012025-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2024-12-310001487918ofs:SSJABariatricManagementLLCMemberus-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918TalentSmart Holdings, LLC, Common Equity2025-01-012025-12-310001487918TalentSmart Holdings, LLC, Common Equity2024-12-310001487918TalentSmart Holdings, LLC, Common Equity2025-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2025-01-012025-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2024-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2025-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity2024-01-012024-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity2023-12-310001487918Contract Datascan Holdings, Inc., Preferred Equity2024-12-310001487918Contract Datascan Holdings, Inc., Common Equity2024-01-012024-12-310001487918Contract Datascan Holdings, Inc., Common Equity2023-12-310001487918ofs:ContractDatascanHoldingsIncMember2024-01-012024-12-310001487918ofs:ContractDatascanHoldingsIncMember2023-12-310001487918DRS Imaging Services, LLC, Common Equity2024-01-012024-12-310001487918DRS Imaging Services, LLC, Common Equity2023-12-310001487918Master Cutlery, LLC, Subordinated Debt2024-01-012024-12-310001487918Master Cutlery, LLC, Subordinated Debt2023-12-310001487918Master Cutlery, LLC, Subordinated Debt2024-12-310001487918Master Cutlery, LLC, Preferred Equity2024-01-012024-12-310001487918Master Cutlery, LLC, Preferred Equity2023-12-310001487918Master Cutlery, LLC, Preferred Equity2024-12-310001487918Master Cutlery, LLC, Common Equity2024-01-012024-12-310001487918Master Cutlery, LLC, Common Equity2023-12-310001487918Master Cutlery, LLC, Common Equity2024-12-310001487918ofs:MasterCutleryLLCMember2024-01-012024-12-310001487918ofs:MasterCutleryLLCMember2023-12-310001487918ofs:MasterCutleryLLCMember2024-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2024-01-012024-12-310001487918Pfanstiehl Holdings, Inc., Common Equity2023-12-310001487918TalentSmart Holdings, LLC, Common Equity2024-01-012024-12-310001487918TalentSmart Holdings, LLC, Common Equity2023-12-310001487918TRS Services, LLC., Preferred Equity2024-01-012024-12-310001487918TRS Services, LLC., Preferred Equity2023-12-310001487918TRS Services, LLC., Preferred Equity2024-12-310001487918TRS Services, LLC., Common Equity2024-01-012024-12-310001487918TRS Services, LLC., Common Equity2023-12-310001487918TRS Services, LLC., Common Equity2024-12-310001487918ofs:TRSServicesLLCMember2024-01-012024-12-310001487918ofs:TRSServicesLLCMember2023-12-310001487918ofs:TRSServicesLLCMember2024-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2024-01-012024-12-310001487918us-gaap:InvestmentAffiliatedIssuerMember2023-12-310001487918ofs:UnsecuredNotesDueFebruary2026Memberus-gaap:UnsecuredDebtMemberus-gaap:SubsequentEventMember2026-01-082026-01-080001487918us-gaap:RevolvingCreditFacilityMemberofs:NatixisFacilityMemberus-gaap:LineOfCreditMemberus-gaap:SubsequentEventMember2026-02-180001487918us-gaap:SubsequentEventMember2026-02-262026-02-2600014879182025-10-012025-12-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)


x			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2025


¨			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00813

OFS Capital Corporation

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


Delaware			46-1339639
(State or jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

222 W. Adams Street, Suite 1850 Chicago, Illinois			60606
(Address of principal executive offices)			(Zip Code)

REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE:

(847) 734-2000

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	OFS	The Nasdaq Global Select Market
4.95% Notes due 2028	OFSSH	The Nasdaq Global Select Market
7.50% Notes due 2028	OFSSO	The Nasdaq Global Select Market

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated Filer

Accelerated Filer

Non-accelerated Filer

☒

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ¨

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act) Yes ¨ No x

The aggregate market value of the registrant’s voting shares of common stock held by non-affiliates of the registrant as of June 30, 2025, was approximately $87.5 million based on $8.44 per share, the last reported sale price of the shares of common stock on The Nasdaq Global Select Market. For the purpose of calculating this amount only, shares held by certain stockholders and by directors and executive officers of the registrant have been excluded. On February 26, 2026, there were 13,398,078 shares outstanding of the Registrant’s common stock, $0.01 par value.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive Proxy Statement relating to the registrant’s 2026 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission, are incorporated by reference in Part III of this Annual Report on Form 10-K as indicated herein.

TABLE OF CONTENTS


		Page
PART I
Item 1.	Business	4
Item 1A.	Risk Factors	28
Item 1B.	Unresolved Staff Comments	65
Item 1C.	Cybersecurity	65
Item 2.	Properties	66
Item 3.	Legal Proceedings	66
Item 4.	Mine Safety Disclosures	67

PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	68
Item 6.	Reserved	77
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	78
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	101
Item 8.	Financial Statements and Supplementary Data	103
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	163
Item 9A.	Controls and Procedures	163
Item 9B.	Other Information	163
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	163

PART III
Item 10.	Directors, Executive Officers and Corporate Governance	164
Item 11.	Executive Compensation	164
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	164
Item 13.	Certain Relationships and Related Transactions, and Director Independence	164
Item 14.	Principal Account ant Fees and Services	164

PART IV
Item 15.	Exhibits and Financial Statement Schedules	165
Item 16.	Form 10-K Summary	167
Signatures		168

OFS®, OFS Capital®, OFS Credit® and HPCI® are registered trademarks of Orchard First Source Asset Management, LLC.

OFS Capital Management™ is a trademark of Orchard First Source Asset Management, LLC.

All other trademarks or trade names referred to in this Annual Report on Form 10-K are the property of their respective owners.

Defined Terms

We have used “we,” “us,” “our,” and “the Company” to refer to OFS Capital Corporation in this report. We also have used several other terms in this report, which are explained or defined below:


Term			Explanation or Definition
1940 Act			Investment Company Act of 1940, as amended
Administration Agreement			Administration Agreement between the Company and OFS Services dated November 7, 2012
Advisers Act			Investment Advisers Act of 1940, as amended
Affiliated Account			An account, other than the Company, managed by OFS Advisor or an affiliate of OFS Advisor
Affiliated Fund			Certain other funds, including other BDCs and registered investment companies managed by OFS Advisor or by registered investment advisers controlling, controlled by, or under common control with, OFS Advisor
Annual Distribution Requirement			Distributions to our stockholders, for each taxable year, of at least 90% of our ICTI
ASC			Accounting Standards Codification, as issued by the Financial Accounting Standards Board
ASC Topic 820			ASC Topic 820, Fair Value Measurements and Disclosures
BDC			Business Development Company under the 1940 Act
BLA			Business Loan Agreement, as amended, with Banc of California, as lender, which provides the Company with a senior secured revolving credit facility
BNP Facility			A secured revolving credit facility, as amended, that provided for borrowings in an aggregate principal amount up to $80,000,000 during its reinvestment period, issued pursuant to a Revolving Credit and Security Agreement, as amended, 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 equityholder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator, which was fully repaid and terminated on February 18, 2026
Board			The Company’s board of directors
Banc of California Credit Facility			A senior secured revolving credit facility, as amended, with Banc of California (formerly known as Pacific Western Bank), as lender, that provides for borrowings to the Company in an aggregate principal amount up to $25,000,000
CLO			Collateralized loan obligation
Code			Internal Revenue Code of 1986, as amended
Company			OFS Capital Corporation and its consolidated subsidiaries
DRIP			Dividend reinvestment plan
EBITDA			Earnings before interest, taxes, depreciation and amortization
Exchange Act			Securities Exchange Act of 1934, as amended
GAAP			Accounting principles generally accepted in the United States
HPCI			Hancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC, for which OFS Advisor serves as investment adviser
ICTI			Investment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
Indicative Prices			Market quotations, prices from pricing services or bids from brokers or dealers
Investment Advisory Agreement			Investment Advisory and Management Agreement between the Company and OFS Advisor dated November 7, 2012
Natixis Facility			A secured revolving credit facility that provides for borrowings in an aggregate principal amount up to $80,000,000 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, Natixis, New York branch, as administrative agent, OFSCC-FS Holdings, LLC, a wholly owned subsidiary of the Company, as equityholder, the Company, as servicer, Citibank, N.A., as collateral agent and Virtus Group, LP, as collateral administrator
NAV			Net asset value. NAV is calculated as consolidated total assets less consolidated total liabilities and can be expressed in the aggregate or on a per share basis
Net Loan Fees			The cumulative amount of fees, such as origination fees, discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan
NII			Total investment income less total expenses
OCCI			OFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company, for which OFS Advisor serves as investment adviser


Term			Explanation or Definition
OFS			The collective activities and operations of OFSAM Holdings, its direct and indirect subsidiaries, and certain affiliates
OFS Advisor			OFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the Advisers Act, focusing primarily on investments in middle-market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments
OFSC			Orchard First Source Capital, Inc., a wholly owned subsidiary of OFSAM
OFS Services			OFS Capital Services, LLC, a wholly owned subsidiary of OFSAM and affiliate of OFS Advisor
OFSAM			Orchard First Source Asset Management, LLC, a subsidiary of OFSAM Holdings and a full-service provider of capital and leveraged finance solutions to U.S. corporations
OFSAM Holdings			Orchard First Source Asset Management Holdings, LLC, a holding company consisting of asset management businesses, including OFS Advisor, a registered investment adviser focusing primarily on investments in middle-market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments and OFS CLO Management, LLC, OFS CLO Management II, LLC and OFS CLO Management III, LLC, each a registered investment adviser focusing primarily on investments in broadly syndicated loans
OFSCC-FS			OFSCC-FS, LLC, an indirect wholly owned subsidiary of the Company
OFSCC-FS Assets			Assets held by the Company through OFSCC-FS
OFSCC-MB			OFSCC-MB, Inc., a wholly owned subsidiary taxed under subchapter C of the Code that generally holds the equity investments of the Company that are taxed as pass-through entities
OID			Original issue discount
Order			An exemptive relief order from the SEC to permit us to co-invest in portfolio companies with Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions
Parent			OFS Capital Corporation
PIK			Payment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income
Portfolio Company Investment			A debt or equity investment in a portfolio company. Portfolio Company Investments exclude Structured Finance Securities
RIC			Regulated investment company under the Code
Sarbanes-Oxley Act			The Sarbanes-Oxley Act of 2002
SBA			United States Small Business Administration
SBIC			A fund licensed under the SBA Small Business Investment Company Program
SBIC Acquisition			The Company’s acquisition of the remaining ownership interests in SBIC I LP and OFS SBIC I GP, LLC on December 4, 2013
SBIC I LP			OFS SBIC I, LP, a wholly owned subsidiary of the Company and former SBIC
SEC			United States Securities and Exchange Commission
Securities Act			Securities Act of 1933, as amended
SOFR			Secured Overnight Financing Rate
Securities Purchase Agreement			An agreement between the Company and an institutional accredited investor dated August 8, 2025 in which the Company sold, in a private placement, the Unsecured Note Due August 2029
Staffing Agreement			Staffing and Corporate Services Agreement between OFS Services and OFSC dated November 7, 2012
Stock Repurchase Program			The open market stock repurchase program for shares of the Company’s common stock under Rule 10b-18 of the Exchange Act
Structured Finance Securities			CLO mezzanine debt, CLO subordinated notes and CLO loan accumulation facility securities
Unsecured Notes			The Unsecured Notes Due February 2026, the Unsecured Notes Due July 2028, the Unsecured Notes Due October 2028 and the Unsecured Note Due August 2029
Unsecured Notes Due February 2026			The Company’s $125.0 million aggregate principal amount of 4.75% notes due February 10, 2026, which were partially redeemed on each of August 11, 2025, August 21, 2025 and December 30, 2025, and fully redeemed on February 9, 2026
Unsecured Notes Due July 2028			The Company’s $69.0 million aggregate principal amount of 7.50% notes due July 31, 2028


Term			Explanation or Definition
Unsecured Notes Due October 2028			The Company’s $55.0 million aggregate principal amount of 4.95% notes due October 31, 2028
Unsecured Note Due August 2029			The Company’s $25.0 million principal amount 8.00% note due August 8, 2029

PART I

As used in this Annual Report on Form 10-K, except as otherwise indicated, the terms “OFS Capital,” “the Company,” “we,” “us,” and “our” refer to OFS Capital Corporation and its consolidated subsidiaries.

Item 1. Business

GENERAL

We are an externally managed, closed-end, non-diversified management investment company and have elected to be treated as a BDC under the 1940 Act, which imposes certain investment restrictions on our portfolio. Our investment objective is to provide our stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. Our investment strategy is to maintain a credit investment portfolio focused primarily on middle-market companies in the United States. We use the term “middle-market” to refer to companies that may exhibit one or more of the following characteristics: number of employees between 150 and 2,000; revenues between $15 million and $300 million; annual EBITDA between $5 million and $50 million; generally, private companies owned by private equity firms or owners/operators; and enterprise value between $10 million and $500 million. For additional information about how we define the middle-market, see “—Investment Criteria/Guidelines.”

Our investment strategy focuses primarily on investments in middle-market companies in the United States, including investments in senior secured loans, which are comprised of first lien, second lien and unitranche loans, as well as investments in subordinated loans and, to a lesser extent, common stock, preferred stock and other equity securities. Our investments may be directly originated or may be purchased on a secondary basis in the U.S. leveraged loan market for Broadly Syndicated Loans (as defined below). As a BDC, we must not acquire any assets other than “qualifying assets” as specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant SEC rules, the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States. Conversely, we may invest up to 30% of our portfolio in opportunistic investments not otherwise eligible under BDC regulations. Specifically, as part of this 30% basket, we may consider investments in investment funds that are operating pursuant to certain exceptions to the 1940 Act and in advisers to similar investment funds, as well as in debt or equity of middle-market portfolio companies located outside of the United States, and debt and equity of public companies that do not meet the definition of eligible portfolio companies because their market capitalization of publicly traded equity securities exceeds the levels provided for in the 1940 Act. We have made, and may continue to make, opportunistic investments in Structured Finance Securities and other non-qualifying assets (discussed below), consistent with our investment strategy. As of December 31, 2025 and 2024, approximately 81% and 80% of our investments were qualifying assets, respectively.

As of December 31, 2025, the fair value of our debt investment portfolio totaled $179.8 million in 34 portfolio companies, of which 95% and 5% were comprised of first lien loans and second lien loans, respectively. As of December 31, 2025, the fair value of our equity investments totaled $100.6 million in 15 portfolio companies, and the fair value of our 14 Structured Finance Security investments totaled $61.6 million.

We execute on our investment strategy, in part, through OFSCC-FS, which established the Natixis Facility on February 18, 2026. 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 a stand-alone basis, OFSCC-FS held approximately $125.0 million and $151.0 million in total assets as of December 31, 2025 and 2024, respectively, which accounted for approximately 36% and 35% of our consolidated total assets, respectively.

We also execute our investment strategy, in part, by investing in Structured Finance Securities. We believe OFS Advisor is uniquely positioned, given its expertise in structured credit and managing CLOs, to make opportunistic investments in Structured Finance Securities, through which we aim to target attractive risk-adjusted returns. During the years ended December 31, 2025 and 2024, we purchased $19.6 million and $27.4 million of Structured Finance Securities, respectively.

We historically had executed our investment strategy, in part, through SBIC I LP, a former licensee under the SBA’s SBIC program. On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $31.9 million, and, on April 17, 2024, surrendered its license to operate as a SBIC.

A BDC is generally not permitted to incur indebtedness unless, immediately after such borrowing, it has an asset coverage ratio for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of its assets). However, Section 61(a)(2) of the 1940 Act permits BDCs to be subject to a minimum asset coverage ratio of 150%, if specific

conditions are satisfied, when issuing senior securities (i.e., the amount of debt may not exceed 66 2/3% of the value of its assets).

On May 3, 2018, our Board, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) thereof, approved the application of the reduced asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, effective May 3, 2019, our minimum required asset coverage ratio decreased from 200% to 150%. See “Part 1, Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.”

Consistent with our strategy to maintain a leveraged portfolio primarily comprised of credit investments, our total outstanding debt of $220.5 million and $248.4 million resulted in a statutory asset coverage ratio of 156% and 169% as of December 31, 2025 and December 31, 2024, respectively.

We have elected to be treated for tax purposes as a RIC under Subchapter M of the Code. To continue to qualify for tax treatment as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. Pursuant to this election, we generally are not required to pay corporate-level taxes on any income we distribute to our stockholders as dividends.

Our investment activities are managed by OFS Advisor and supervised by our Board, a majority of whom are independent of us, OFS Advisor and its affiliates. Under the Investment Advisory Agreement, we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed funds and including assets owned by any consolidated entity) as well as an incentive fee based on our investment performance. OFS Advisor also serves as the investment adviser to other funds, including HPCI and OCCI. Additionally, OFS Advisor provides advisory and sub-advisory services to various funds, including: (i) CMFT Securities Investments, LLC, a wholly owned subsidiary of CIM Real Estate Finance Trust, Inc., a corporation that qualifies as a real estate investment trust; and (ii) CIM Real Assets & Credit Fund, an externally managed registered investment company under the 1940 Act that operates as an interval fund and invests primarily in a combination of real estate, credit and related investments. See “Item 1A. Risk Factors—Risks Related to OFS Advisor and its Affiliates—We have potential conflicts of interest related to obligations that OFS Advisor or its affiliates may have to other clients.”

Also, we have entered into an Administration Agreement with OFS Services. Under our Administration Agreement, we have agreed to reimburse OFS Services for our allocable portion (subject to the review and approval of our Board) of overhead and other expenses incurred by OFS Services in performing its obligations under the Administration Agreement. See “—Management and Other Agreements—Administration Agreement.”

About OFS and Our Advisor

OFS is a full-service provider of capital and leveraged finance solutions to U.S. companies. As of December 31, 2025, OFS had 47 full-time employees. OFS is headquartered in Chicago, Illinois and also has offices in New York, New York and Los Angeles, California. Under the Staffing Agreement, OFSC makes experienced investment professionals available to OFS Advisor and provides OFS Advisor with access to the senior investment personnel of OFS and its affiliates. The Staffing Agreement also provides OFS Advisor with access to deal flow generated by OFS and its affiliates in the ordinary course of their businesses and commits the members of OFS Advisor’s investment committees to serve in that capacity.

Our investment activities are managed by OFS Advisor, an investment adviser that is registered with the SEC under the Advisers Act and a wholly owned subsidiary of OFSAM. OFS Advisor is responsible for sourcing potential investments, conducting research and diligence on potential investments and equity sponsors, analyzing investment opportunities, structuring our investments, and monitoring our investments and portfolio companies on an ongoing basis. As our investment adviser, OFS Advisor allocates investment opportunities among us and any other clients fairly and equitably over time in accordance with its allocation policy. See “Regulation—Exemptive Relief.”

Our relationship with OFS Advisor is governed by, and dependent on, the Investment Advisory Agreement and may be subject to conflicts of interest; see “Item 1A. Risk Factors—Risks Related to OFS Advisor and its Affiliates.” OFS Advisor provides us with advisory services in exchange for a base management fee and incentive fee. See “Management and Other Agreements—Investment Advisory Agreement”. Our base management fee includes assets purchased with borrowed funds and assets owned by any consolidated entity; therefore, OFS Advisor will benefit when we incur debt or use leverage. Our Board is charged with protecting stockholders’ interests by monitoring how OFS Advisor addresses these and other conflicts of interest associated with its management services and compensation. While our Board is not expected to review or approve each borrowing or incurrence of leverage, our independent directors periodically review OFS Advisor’s services and fees as well as its portfolio management decisions and portfolio performance.

OFS Advisor capitalizes on the deal origination and sourcing, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of OFS’s professionals. The senior management team of OFS provides services to OFS Advisor. These managers have developed a broad network of contacts within the investment

community, and possess an average of over 25 years of experience investing in debt and equity securities of middle-market companies. In addition, these managers have extensive experience investing in assets that constitute our primary focus and have expertise in investing across all levels of the capital structure of middle-market companies.

Competitive Strengths and Core Competencies

Deep Management Team Experienced in All Phases of Investment Cycle and Across All Levels of the Capital Structure. We are managed by OFS Advisor, which has access to the resources and expertise of OFS’s investment professionals through the Staffing Agreement with OFSC. As of December 31, 2025, OFS’s credit and investment professionals (including all investment committee members) employed by OFSC had an average of over 15 years of investment experience with strong institutional backgrounds.

Investment Capacity. The net proceeds of equity and debt offerings and borrowing capacity under our credit facilities should provide us with a sufficient amount of capital available for deployment into new investment opportunities in our targeted asset class.

Scalable Infrastructure Supporting the Entire Investment Cycle. We believe that our loan acquisition, origination and sourcing, underwriting, administration and management platform is scalable (that is, it can be expanded on a cost-efficient basis within a timeframe that meets the demands of business growth). Our platform extends beyond origination and sourcing and includes a regimented credit monitoring system. We believe that our careful approach, which involves ongoing review and analysis by an experienced team of professionals, should enable us to identify problems early and to assist borrowers before they face difficult liquidity constraints.

Extensive Loan Sourcing Capabilities. OFS Advisor gives us access to the deal flow of OFS. We believe OFS’s 25-year history as a middle-market lending platform, extensive relationships with potential borrowers and other lenders, and its market position make it a leading lender to many sponsors and other deal sources, especially in the currently under-served lending environment.

Structuring with a High Level of Service and Operational Orientation. We provide client-specific and creative financing structures to our portfolio companies. Based on our experience in lending to, and investing in, middle-market companies, we believe that the middle-market companies we target, as well as sponsor groups we may pursue, require a higher level of service, creativity and knowledge than has historically been provided by other service providers more accustomed to participating in commodity-like loan transactions.

Rigorous Credit Analysis and Approval Procedures. OFS Advisor utilizes an established, disciplined investment process of OFS for reviewing lending opportunities, structuring transactions and monitoring investments. Using a disciplined approach to lending, OFS Advisor seeks to minimize credit losses through effective underwriting, comprehensive due diligence investigations, structuring and, where appropriate, the implementation of restrictive debt covenants.

Our Administrator

We do not have any direct employees, and our day-to-day investment operations are managed by OFS Advisor. Currently, we have a chief executive officer, chief financial officer, chief compliance officer, corporate secretary and, to the extent necessary, our Board may elect to appoint additional officers going forward. Our officers are employees of OFSC, an affiliate of OFS Advisor, and a portion of the compensation paid to our officers is paid by us pursuant to the Administration Agreement.

OFS Services, an affiliate of OFS Advisor, provides the administrative services necessary for us to operate. OFS Services furnishes us with office facilities and equipment, necessary software licenses and subscriptions and clerical, bookkeeping and recordkeeping services at such facilities. OFS Services oversees our financial reporting as well as prepares our reports to stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority. OFS Services also manages the determination and publication of our NAV, the preparation and filing of our tax returns, and generally monitors the payment of our expenses and the performance of administrative and professional services rendered to us by others. OFS Services may retain third parties to assist in providing administrative services to us. To the extent that OFS Services outsources any of its functions, we will directly pay the fees associated with such services.

Market Opportunity

Our investment strategy is focused primarily on investments in middle-market companies in the United States. We find the middle-market attractive for the following reasons:

Large Target Market. According to the National Center for the Middle Market, as of the fourth quarter of 2025, there were approximately 200,000 companies in the United States with annual revenues between $10.0 million and $1.0 billion. We believe that these middle-market companies represent a significant growth segment of the U.S. economy and often require substantial capital investments to grow. Middle-market companies have historically constituted the bulk of OFS’s portfolio

companies since its inception and constituted 73% of our total portfolio at fair value as of December 31, 2025. We believe that this market segment will continue to produce significant investment opportunities for us.

Specialized Lending Requirements with High Barriers to Entry. We believe that several factors render many U.S. financial institutions ill-suited to lend to U.S. middle-market companies. For example, based on the experience of our management team, lending to private middle-market companies in the United States: (a) is generally more labor-intensive than lending to larger companies due to the smaller size of each investment and the fragmented nature of information for such companies; (b) requires due diligence and underwriting practices consistent with the demands and economic limitations of the middle-market; and (c) may also require more extensive ongoing monitoring by the lender. As a result, middle-market companies historically have been served by a limited segment of the lending community. Due to the unique challenges facing lenders to middle-market companies, we believe that there are high barriers to entry that a new lender must overcome.

Robust Demand for Debt Capital. We believe that private equity firms have significant committed but uncalled capital, a large portion of which is available for investment in the United States. Subject to market conditions, we expect the large amount of unfunded buyout commitments will drive demand for leveraged buyouts over the next several years, which should, in turn, create leveraged lending opportunities for us.

Competition

Our primary competitors include public and private funds, other BDCs, commercial and investment banks, commercial finance companies and, to the extent they provide an alternative form of financing, private equity and hedge funds. Many of our competitors are substantially larger and have considerably greater financial, technical, and marketing resources than we do. Many of these competitors have similar investment objectives to us, which may create additional competition for investment opportunities. Some competitors may have a lower cost of capital and access to funding sources that are not available to us, which may create competitive disadvantages for us with respect to our investment opportunity. In addition, some of our competitors may have higher risk tolerances or different risk assessments and investment strategies, which could allow them to consider a wider variety of investments and establish more relationships than us. Further, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC, or to the distribution and other requirements we must satisfy to maintain our RIC status.

We expect to continue to use the expertise of the investment professionals of OFS to whom we have access to assess investment risks and determine appropriate pricing for our investments in portfolio companies. In addition, we expect that the relationships of the senior members of OFS and its affiliates will enable us to learn about, and compete effectively for, financing opportunities with attractive middle-market companies in the industries in which we seek to invest. See “Item 1A. Risk Factors—Risks Related to Our Business and Structure—We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses” for additional information concerning the competitive risks we face.

Investment Criteria/Guidelines

Our investment objective is to provide our stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. We focus on investments in senior secured loans, including first lien, second lien, and unitranche loans, as well as subordinated loans and, to a lesser extent, common stock, preferred stock and Structured Finance Securities. In particular, we believe that structured equity with debt investments (i.e., typically senior secured unitranche loans, often with warrant coverage, and, at times, in companies with no financial sponsor) represent a strong relative value opportunity offering the borrower the convenience of dealing with one lender, which may result in a higher blended rate of interest to us than we might expect to receive under a traditional multi-tranche structure. We expect that our investments in the equity securities of portfolio companies, such as warrants, preferred stock, common stock and other equity interests, will principally be made in conjunction with our debt investments in those companies. Generally, we do not expect to make investments in companies or securities that OFS Advisor determines to be distressed investments (such as discounted debt instruments that have either experienced a default or have a significant potential for default), other than follow-on investments in portfolio companies of ours. We intend to continue to generate strong risk-adjusted net returns by assembling a diversified portfolio of investments across a broad range of industries.

We target U.S. middle-market companies through OFS’s access to a network of financial institutions, private equity sponsors, investment banks, consultants and attorneys, and our proprietary database of borrowers developed over OFS’s 25 year history of lending to middle-market companies. A typical targeted borrower will exhibit certain of the following characteristics:

•number of employees between 150 and 2,000;

•revenues between $15 million and $300 million;

•annual EBITDA between $5 million and $50 million;

•private companies owned by private equity firms or owners/operators;

•enterprise value between $10 million and $500 million;

•effective and experienced management teams;

•defensible market share;

•solid historical financial performance, including a steady stream of cash flow;

•high degree of recurring revenue;

•diversity of customers, markets, products and geography; and

•differentiated products or services.

While we believe that the characteristics listed above are important in identifying and investing in prospective portfolio companies, not all of these criteria will be met by each prospective portfolio company.

Due Diligence and Investment Process Overview

We employ a thorough and disciplined underwriting and due diligence process that is conducted in accordance with established credit policies and procedures and focused on investment recovery. Our process involves a comprehensive analysis of a prospective portfolio company’s market, operational, financial, and legal position, as well as its future prospects. In addition to our own analysis, we may use the services of third parties for environmental reviews, quality of earnings reports, industry surveys, background checks on key managers, and insurance reviews.

We seek to invest in companies that have experienced and incentivized management teams, stable and predictable cash flows, and defensible market positions. We underwrite the majority of our investments with the expectation that we will hold them for a number of years, and we structure and document, as applicable, our investments accordingly.

Our due diligence and underwriting process typically addresses the following elements (although certain elements may not be included in every due diligence undertaking):

Prospective Portfolio Company Characteristics – focusing on primary drivers of the company’s revenues and cash flows, including: (i) its key products and services; (ii) customer and supplier concentrations, and contractual relationships; (iii) depth, breadth, and quality of company management, as well as the extent to which the management team is appropriately compensated with equity incentives; and (iv) any regulatory, labor or litigation matters impacting the company.

Industry and Competitive Overview – evaluating: (i) industry size and the company’s position within it; (ii) growth potential and barriers to entry; (iii) governmental, regulatory, or technological issues potentially affecting the industry; and (iv) cyclicality or seasonality risks associated with the industry.

Financial Analysis – analyzing the company’s historical financial results, focusing on: (i) actual operating trends experienced over time, in order to forecast future performance, including in various sensitized performance scenarios; (ii) attention to projected cash flows, debt service coverage, and leverage multiples under such scenarios; and (iii) an assessment of enterprise valuations and debt repayment/investment recovery prospects given such sensitized performance scenarios.

Investment Documentation – focusing on obtaining the best legal protections available to us given our position within the capital structure, including, as appropriate: (i) financial covenants; (ii) collateral liens and stock pledges; (iii) review of loan documents of other of the prospective portfolio company’s creditors; and (iv) negotiation of inter-creditor agreements.

Portfolio Review/Risk Monitoring

We view active portfolio monitoring as a vital part of our investment process, and we benefit from a portfolio management system developed by OFS that includes daily, weekly, monthly, and quarterly components, and that involves comprehensive review of the performance of each of our portfolio companies. As part of the portfolio management process, OFS Advisor performs ongoing risk assessments on each of our investments and assigns each debt investment a credit rating based on OFS’s proprietary internal ratings scale.

Our debt investments generally are assigned a rating of 3 at origination or purchase (as described below). We categorize debt investments into the following risk categories based on relevant information about the ability of borrowers to service their debt:

1 (Low Risk) – The debt investment has mostly satisfactory asset quality and liquidity, as well as good leverage capacity. It maintains predictable and strong cash flows from operations. The trends and outlook for the portfolio company’s operations, balance sheet, and industry are neutral to favorable. Collateral, if appropriate, has maintained value and would be

capable of being liquidated on a timely basis. Overall, a debt investment with a 1 risk rating is considered to be of investment grade quality.

2 (Below Average Risk) – The debt investment has acceptable asset quality, moderate excess liquidity, and modest leverage capacity. It could have some financial/non-financial weaknesses which are offset by strengths; however, the credit demonstrates an ample current cash flow from operations. The trends and outlook for the portfolio company’s operations, balance sheet, and industry are generally positive or neutral to somewhat negative. Collateral, if appropriate, has maintained value and would be capable of being liquidated successfully on a timely basis.

3 (Average) – The debt investment has acceptable asset quality, somewhat strained liquidity, and minimal leverage capacity. It is at times characterized by acceptable cash flows from operations. Under adverse market conditions, the debt service could pose difficulties for the borrower. The trends and conditions of the portfolio company’s operations and balance sheet are neutral to slightly negative.

4 (Special Mention) – The debt investment has not lost, and is not expected to lose, principal or interest but it possesses credit deficiencies or potential weaknesses which deserve management’s close and continued attention. The portfolio company’s operations and/or balance sheet have demonstrated an adverse trend or deterioration which, while serious, has not reached the point where the liquidation of debt is jeopardized. These weaknesses are generally considered correctable by the borrower in the normal course of business but may weaken the asset or inadequately protect our credit position if not checked or corrected.

5 (Substandard) – The debt investment is inadequately protected by the current enterprise value or paying capacity of the obligor or of the collateral, if any. The portfolio company has well-defined weaknesses based upon objective evidence, such as recurring or significant decreases in revenue and cash flow. These investments are characterized by the possibility that we may sustain loss if the deficiencies are not corrected. The possibility that liquidation would not be timely (e.g., bankruptcy or foreclosure) requires a Substandard classification even if there is little likelihood of loss.

6 (Doubtful) – The debt investment has all the weaknesses inherent in those classified as Substandard, with the additional factor that the weaknesses are pronounced to the point that collection or liquidation in full, on the basis of currently existing facts, conditions and values, is deemed uncertain. The possibility of loss on a Doubtful investment is high but, because of certain important and reasonably specific pending factors which may strengthen the investment, its classification as an estimated loss is deferred until its more exact status can be determined.

7 (Loss) – The debt investment is considered almost fully uncollectible and of such little value that its continuance as an asset is not warranted. It is generally a credit that is no longer supported by an operating company, a credit where the majority of our investment has been liquidated or sold and a few assets remain to be sold over many months or even years, or a credit where the remaining collections are expected to be minimal.

See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Risk Monitoring” for the classification of our debt investments by risk category.

Investment Committees

OFS Advisor’s Pre-Allocation Investment Committee, Broadly Syndicated Investment Committee, Structured Credit Investment Committee and Middle-Market Investment Committee (collectively, the “Advisor Investment Committees”) are responsible for the overall asset allocation decisions and the evaluation and approval of investments of OFS Advisor’s advisory clients.

The Middle-Market Investment Committee, comprised of Richard Ressler (Chairman), Bilal Rashid and Kyde Sharp, is responsible for the evaluation and approval of all debt and equity investments made by us, including ultimate asset allocations to us.

The Broadly Syndicated Investment Committee, comprised of Messrs. Ressler (Chairman), Rashid and Kenneth A. Brown, assists with the review and evaluation of potential investments in Broadly Syndicated Loans made by us.

The Structured Credit Investment Committee, comprised of Messrs. Ressler (Chairman), Rashid, Brown and Glen Ostrander, assists with the review and evaluation of potential investments in Structured Finance Security investments made by us.

The Pre-Allocation Investment Committee, comprised of Messrs. Ressler (Chairman), Rashid, Ostrander, Tod K. Reichert and Manish Rajguru, is responsible for determining whether a prospective investment is appropriate for allocation to one or more clients managed by registered investment advisor subsidiaries of OFSAM, including OFS Advisor, and the allocation of such investment among groups of advisory clients.

The Broadly Syndicated Investment Committee, Structured Credit Investment Committee and Pre-Allocation Investment Committee are not responsible for the Middle Market Investment Committee’s investment approval of, or ultimate asset allocation decisions related to, our investments.

The process employed by the Advisor Investment Committees is intended to bring the diverse experience and perspectives of the committees’ members to the investment process. The Middle-Market Investment Committee serves to provide investment consistency and adherence to our core investment philosophy and policies. The Middle-Market Investment Committee also determines appropriate investment sizing and implements ongoing monitoring requirements of our investments.

In certain instances, management may seek the approval of our Board prior to making an investment. In addition to reviewing investments, the meetings of the Middle-Market Investment Committee, Broadly Syndicated Investment Committee and Structured Credit Investment Committee, where applicable, serve as a forum to discuss credit views and outlooks. Potential transactions and deal flows are also reviewed on a regular basis.

On January 28, 2025, Jeffrey A. Cerny notified our Board of his intention to retire. Mr. Cerny’s resignation as Chief Financial Officer and Treasurer was effective on March 31, 2025. As of March 31, 2025, Mr. Cerny was no longer a member of the Middle-Market Investment Committee, Broadly Syndicated Investment Committee, Structured Credit Investment Committee, or Pre-Allocation Investment Committee.

Investments

We pursue an investment strategy focused primarily on investments in middle-market companies in the United States. We focus on investments in loans, in which OFS Advisor’s investment professionals have expertise, including investments in first lien, unitranche, second lien, and subordinated loans and, to a lesser extent, equity securities and Structured Finance Securities. We seek to create a diverse portfolio by making investments in the securities of middle-market companies that we expect to range generally from $3.0 million to $25.0 million each, although we expect this investment size will vary proportionately with the size of our capital base.

Structure of Investments

We anticipate that our loan portfolio will continue to contain investments of the following types with the following characteristics:

Senior Secured First Lien Loans. First lien senior secured loans comprise, and are expected to continue to comprise, a significant portion of our investment portfolio. We obtain security interests in the assets of these portfolio companies as collateral in support of the repayment of these loans (in certain cases, subject to a payment waterfall). The collateral takes the form of first-priority liens on specified assets of the portfolio company borrower and, typically, first-priority pledges of the ownership interests in the borrower. Our first lien loans may provide for moderate loan amortization in the early years of the loan, with the majority of the amortization deferred until loan maturity.

Senior Secured First Lien Loans are categorized as First Lien Debt in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Senior Secured Unitranche Loans. Unitranche loans are loans that combine both senior and subordinated debt into one loan under which the borrower pays a single blended interest rate that is intended to reflect the relative risk of the secured and unsecured components. We typically structure our unitranche loans as senior secured loans. We obtain security interests in the assets of these portfolio companies as collateral in support of the repayment of these loans. This collateral takes the form of first-priority liens on the assets of a portfolio company and, typically, first-priority pledges of the ownership interests in the company. We believe that unitranche lending represents a significant growth opportunity for us, offering the borrower the convenience of dealing with one lender, which may result in a higher blended rate of interest to us than we might realize in a traditional multi-tranche structure. Unitranche loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases, we will be the sole lender, or we, together with our affiliates, will be the sole lender, of unitranche loans, which can afford us additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of under performance.

Senior Secured Unitranche Loans are categorized as First Lien Debt in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Senior Secured Second Lien Loans. Second lien senior secured loans obtain security interests in the assets of these portfolio companies as collateral in support of the repayment of such loans. This collateral typically takes the form of second-priority liens on the assets of a portfolio company, and we may enter into an inter-creditor agreement with the holders of the portfolio company’s first lien senior secured debt. These loans typically provide for no contractual loan amortization in the initial years of the facility, with all amortization deferred until loan maturity.

Senior Secured Second Lien Loans are categorized as Second Lien Debt in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Broadly Syndicated Loans. Broadly Syndicated Loans (whose features are similar to those described under “Senior Secured First Lien Loans” and “Senior Secured Second Lien Loans” above), also commonly referred to as leveraged loans, are typically originated and structured by banks on behalf of large corporate borrowers with employee counts, revenues, EBITDA and enterprise values larger than the middle-market characteristics described above (“Broadly Syndicated Loans”). The proceeds of Broadly Syndicated Loans are often used for leveraged buyout transactions, mergers and acquisitions, recapitalizations, refinancings and financing capital expenditures. Broadly Syndicated Loans are typically distributed by the arranging bank to a diverse group of investors primarily consisting of: CLOs; senior secured loan and high yield bond mutual funds; closed-end funds, hedge funds, banks and insurance companies; and finance companies. A borrower must comply with various covenants contained in a loan agreement or note purchase agreement between the borrower and the holders of the Broadly Syndicated Loan (the “Loan Agreement”). In a typical Broadly Syndicated Loan, an administrative agent (the “Agent”) administers the terms of the Loan Agreement. In such cases, the Agent is normally responsible for the collection of principal and interest payments from the borrower and the apportionment of these payments to the credit of all institutions that are parties to the Loan Agreement. We will generally rely upon the Agent or an intermediate participant to receive and forward to us our portion of the principal and interest payments on the Broadly Syndicated Loan. Additionally, we normally will rely on the Agent and the other loan investors to use appropriate credit remedies against the borrower. The Agent is typically responsible for monitoring compliance with covenants contained in the Loan Agreement based upon reports prepared by the borrower. The Agent may monitor the value of the collateral and, if the value of the collateral declines, may accelerate the Broadly Syndicated Loan, may give the borrower an opportunity to provide additional collateral or may seek other protection for the benefit of the participants in the Broadly Syndicated Loan. The Agent and other loan investors may also pursue a “priming transaction”, where the Loan Agreement can be amended to the detriment of other lenders, in order to move collateral, or in order to facilitate capital outflow to other parties/subsidiaries in a capital structure, any of which may result in the loss of all or a significant part of such investment. The Agent is compensated by the borrower for providing these services under a Loan Agreement, and such compensation may include special fees paid upon structuring and funding the Broadly Syndicated Loan and other fees paid on a continuing basis. The Broadly Syndicated Loans in which we invest may include loans that are considered “covenant-lite” loans, because of their lack of a full set of financial maintenance covenants.

Broadly Syndicated Loans are categorized as First Lien Debt or Second Lien Debt in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Subordinated Loans. These investments are typically structured as unsecured, subordinated loans that typically provide for relatively high, fixed interest rates that provide us with significant current interest income. These loans typically will have interest-only payments (often representing a combination of cash pay and PIK interest) in the early years, with amortization of principal deferred to maturity. Subordinated loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. Subordinated investments are generally more volatile than secured loans and may involve a greater risk of loss of principal. Subordinated loans often include a PIK feature (meaning a feature allowing for the payment of interest in the form of additional principal amount of the loan instead of in cash), which effectively operates as negative amortization of loan principal, thereby increasing credit risk exposure over the life of the loan.

Subordinated Loans are categorized as Subordinated Debt in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Equity Securities. Equity securities typically consist of either a direct minority equity investment in common or membership/partnership interests or preferred stock of a portfolio company, and are typically not control-oriented investments. Our preferred equity investments typically contain a fixed dividend yield based on the par value of the equity security. Preferred equity dividends may be paid in cash at a stipulated date, usually quarterly (if applicable), and may be participating and/or cumulative. We may structure such equity investments to include provisions protecting our rights as a minority-interest holder, as well as a “put,” or right to sell such securities back to the issuer, upon the occurrence of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may include demand and “piggyback” registration rights, which grants us the right to register our equity interest when either the portfolio company or another investor in the portfolio company files a registration statement with the SEC to issue securities. Our equity investments typically are made in connection with debt investments to the same portfolio companies.

Equity securities are categorized as Preferred Equity, Common Equity or Equity Participation Rights, which are contractual agreements entitling us to certain payments generally attributable to equity ownership and lack features enabling us to direct the operations of the entity (i.e., voting rights), in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Warrants. In some cases, we may receive nominally priced warrants to buy a minority equity interest in the portfolio company in connection with a loan. As a result, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. We may structure such warrants to include provisions protecting our rights as a minority-interest holder, as well as a put to sell such securities back to the issuer, upon the occurrence of specified events. In many cases, we may also seek to obtain registration rights in connection with these equity interests, which may include demand and “piggyback” registration rights.

These securities are categorized as Warrants in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

Structured Finance Securities. Structured Finance Securities include the mezzanine and subordinated note securities of a CLO, as well as loan accumulation facilities (colloquially referred to as “CLO warehouses”). Subordinated notes (colloquially referred to as “CLO equity securities”) and mezzanine debt (colloquially referred to as “CLO debt securities”), represent beneficial interests in portfolios consisting primarily of below-investment-grade senior secured loans with a large number of distinct underlying U.S. borrowers across various industry sectors. The subordinated note tranches of CLOs are unrated, represent the first loss position in a CLO structure, and are typically leveraged 9 to 13 times which translates to approximately 8% to 11% of a CLO’s capital structure. The high leverage can magnify our gains and losses on such investments. CLO subordinated note securities are entitled to recurring distributions which are generally equal to the residual cash flow of payments received from underlying securities after contractual payments to more senior CLO mezzanine debt holders and fund expenses. Economically, a CLO subordinated note security is equity-like in that it represents the residual interest in the CLO assets that bears the ultimate risk of loss and receives the benefits of success, but lacks features enabling its holders to direct the operations of the entity typically associated with equity instruments. Mezzanine debt represents the tranches immediately senior to the subordinated note, is usually rated BB to B, and represents approximately 4% to 7% of a CLO’s capital structure. Mezzanine debt tranches represent the second loss position, and can effectively become the residual interest if assets are insufficient to retire the mezzanine tranche at par.

CLO warehouses are short-to medium-term finance vehicles intended to aggregate loans for inclusion in a future CLO portfolio. Loan accumulation facilities are typically financed through income notes, representing the first-loss and residual interests in the vehicle, and senior debt. The senior debt of a loan accumulation facility typically leverages the income notes between three and six times prior to a CLO’s pricing and launch. Income notes of loan accumulation facilities have economic risks similar to those applicable to CLO subordinated notes insomuch as they pay returns equal to the income earned on the underlying portfolio less costs and fees incurred on senior financing, manager and other expenses, and bear losses on a first-dollar basis, but lack many of the contractual protections associated with a CLO indenture. Investing in a CLO warehouse does not create an obligation to participate in the CLO contemplated by the warehouse; however, we have often participated in the CLOs resulting from our CLO warehouse investments. Participation in a CLO warehouse investment may afford us the opportunity to enhance our returns through fee sharing agreements with the CLO collateral managers.

Structured Finance Securities are categorized as Subordinated Notes, Mezzanine Debt or a Loan Accumulation Facility in our consolidated schedules of investments included in “Part II, Item 8. Financial Statements and Supplementary Data.”

General Structuring Considerations. We tailor the terms of each investment to the facts and circumstances of the transaction and the prospective portfolio company, negotiating a structure that protects our rights and manages our risk while creating incentives for the portfolio company to achieve its business plan and improve its operating results. We seek to limit the downside potential of our investments by:

•selecting investments that we believe have a low probability of loss;

•requiring a total return on our investments (including both interest and potential equity appreciation) that we believe will compensate us appropriately for credit risk; and

•negotiating covenants in connection with our investments that afford our portfolio companies as much flexibility in managing their businesses as possible, consistent with the preservation of our capital. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control provisions and board rights, including either observation or rights to a seat on the board of directors under some circumstances.

We expect to hold most of our middle-market debt investments to maturity or repayment, but we may sell some of our investments earlier for various reasons, including, but not limited to, relative value decisions compared to other investment opportunities, liquidity needs and credit risk. In attractive interest rate environments, portfolio companies may also opportunistically refinance our loans prior to maturity.

MANAGEMENT AND OTHER AGREEMENTS

Investment Advisory Agreement

OFS Advisor is registered with the SEC as an investment adviser under the Advisers Act and is a wholly owned subsidiary of OFSAM. Pursuant to the Investment Advisory Agreement with and subject to the overall supervision of our Board and in accordance with the 1940 Act, OFS Advisor provides investment advisory services to us. Under the terms of the Investment Advisory Agreement, OFS Advisor:

•determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner of implementing such changes;

•assists us in determining what securities we purchase, retain or sell;

•identifies, evaluates and negotiates the structure of the investments we make (including performing due diligence on our prospective portfolio companies); and

•executes, closes, services and monitors the investments we make.

Management and Incentive Fee

OFS Advisor receives a fee from us consisting of two components—a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 1.75% based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity), adjusted for stock issuances and stock purchases, at the end of the two most recently completed calendar quarters. The base management fee is payable quarterly in arrears. Base management fees for any partial quarter are prorated based on the number of days in the quarter.

For the years ended December 31, 2025, 2024 and 2023, OFS Advisor agreed to reduce its base management fee attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. 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. During the years ended December 31, 2025, 2024 and 2023, this resulted in a reduction to our base management fee of $1.0 million, $1.1 million and $1.2 million, respectively.

The incentive fee has two parts. The first part of the incentive fee (the “Income Incentive Fee”) is calculated and payable quarterly in arrears based on our pre-incentive fee net investment income for the immediately preceding calendar quarter. “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 we receive 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 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 we have not yet received in cash.

Pre-incentive fee net investment income does not include any realized gains, realized losses, unrealized capital appreciation or unrealized capital depreciation. Because of the structure of the incentive fee, it is possible that we may pay an incentive fee in a quarter where we incur a loss. For example, if we receive pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, we will pay the applicable incentive fee even if we have incurred a loss in that quarter due to realized capital losses or unrealized investment depreciation.

Pre-incentive fee net investment income, expressed as a rate of return on the value of our net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 2.0% per quarter (8.0% annualized). If market interest rates rise, we may be able to invest our funds in debt instruments that provide for a higher return, which would increase our pre-incentive fee net investment income and make it easier for OFS Advisor to surpass the fixed hurdle rate and receive an incentive fee based on such net investment income. There is no accumulation of amounts on the hurdle rate from quarter to quarter and, accordingly, there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle rate, and there is no delay of payment if prior quarters are below the quarterly hurdle rate. Pre-incentive fee net investment income fees are prorated for any partial quarter based on the number of days in such quarter.

We pay OFS Advisor an incentive fee with respect to our pre-incentive fee net investment income in each calendar quarter as follows:

•no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle rate;

•100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5% in any calendar quarter. We refer to this portion of our pre-incentive fee net investment income (which exceeds the hurdle rate but is less than 2.5%) as the “catch-up” provision. The catch-up is meant to provide OFS Advisor with 20.0% of the pre-incentive fee net investment income as if a hurdle rate did not apply if this pre-incentive fee net investment income exceeds 2.5% in any calendar quarter; and

•20.0% of the amount of our pre-incentive fee net investment income, if any, that exceeds 2.5% in any calendar quarter.

The following is a graphical representation of the calculation of the income-related portion of the incentive fee:

Quarterly Incentive Fee Based on Net Investment Income

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) and is calculated at the end of each applicable year by subtracting (a) the sum of our cumulative aggregate realized capital losses and our aggregate unrealized capital depreciation from (b) our cumulative aggregate realized capital gains. If such amount is positive at the end of such year, then the Capital Gains Fee for such year is equal to 20.0% of such amount, less the aggregate amount of Capital Gains Fees paid in all prior years. If such amount is negative, then there is no Capital Gains Fee for such year. The Company accrues the Capital Gains Fee if, on a cumulative basis, the sum of net realized capital gains and (losses) plus net unrealized appreciation and (depreciation) is positive.

The cumulative aggregate realized capital gains are calculated as the sum of the differences, if positive, between (a) the net sales price of each investment in our portfolio when sold and (b) the accreted or amortized cost basis of such investment.

The cumulative aggregate realized capital losses are calculated as the sum of the amounts by which (a) the net sales price of each investment in our portfolio when sold is less than (b) the accreted or amortized cost basis of such investment.

The aggregate unrealized capital depreciation is calculated as the sum of the differences, if negative, between (a) the valuation of each investment in our portfolio as of the applicable Capital Gains Fee calculation date and (b) the accreted or amortized cost basis of such investments. Unrealized capital appreciation is accrued, but not paid until said appreciation is realized. We accrue the Capital Gains Fee if, on a cumulative basis, the sum of the net realized capital gains (and losses) plus net unrealized appreciation (and depreciation) is positive. OFS Advisor has excluded from the Capital Gains Fee calculation the realized gain with respect to the step acquisitions resulting from the SBIC Acquisition. The Capital Gains Fee for any partial year is prorated based on the number of days in such year.

Expenses recognized under the Investment Advisory Agreement with OFS Advisor for the years ended December 31, 2025, 2024 and 2023, are presented below (dollar amounts in thousands):


	Year Ended December 31,
	2025		2024		2023
Base management fees	$	5,769	$	5,993	$	7,218
Incentive fees:
Income Incentive Fee	1,758		4,178		5,040

Capital Gains Fee	—		—		—

Examples of Incentive Fee Calculation

Example 1—Income Related Portion of Incentive Fee:

Assumptions

•Hurdle rate(1) = 2.0%

•Base management fee(2) = 0.44%

•Other estimated expenses (legal, accounting, custodian, transfer agent, etc.)(3) = 0.20%

(1) Represents a quarter of the 8.0% annualized hurdle rate.

(2) Represents a quarter of the 1.75% annualized base management fee, which became effective October 31, 2013.

(3) Excludes offering costs associated with the issuance of equity securities.

Alternative 1

Additional Assumptions

•Investment income (including interest, dividends, fees, etc.) = 1.25%

•Pre-incentive fee net investment income (investment income – (base management fee + other expenses)) = 0.61%

Pre-incentive fee net investment income does not exceed the hurdle rate, therefore there is no incentive fee.

Alternative 2

Additional Assumptions

•Investment income (including interest, dividends, fees, etc.) = 2.80%

•Pre-incentive fee net investment income (investment income – (base management fee + other expenses)) = 2.16%

Pre-incentive fee net investment income exceeds hurdle rate, therefore there is an incentive fee.


Incentive Fee	=	100% × “Catch-Up” + the greater of 0% AND (20% × (pre-incentive fee net investment income – 2.5%))

	=	(100% ×(2.16% – 2.0%)) + 0%

	=	100% × 0.16%

	=	0.16%

Alternative 3

Additional Assumptions

•Investment income (including interest, dividends, fees, etc.) = 3.50%

•Pre-incentive fee net investment income (investment income – (base management fee + other expenses)) = 2.86%

Pre-incentive fee net investment income exceeds hurdle rate, therefore there is an incentive fee.



Incentive Fee	=	100% × “Catch-Up” + the greater of 0% AND (20% × (pre-incentive fee net investment income – 2.5%))

	=	(100% × (2.5% – 2.0%)) + (20% × (2.86% – 2.5%))

	=	0.5% + (20% × 0.36%)

	=	0.5% + 0.07%

	=	0.57%

Example 2—Capital Gains Portion of Incentive Fee:

Alternative 1

Assumptions

•Year 1: $20 million investment made in Company A (“Investment A”), and $30 million investment made in Company B (“Investment B”)

•Year 2: Investment A is sold for $50 million and fair market value (“FMV”) of Investment B determined to be $32 million

•Year 3: FMV of Investment B determined to be $25 million

•Year 4: Investment B sold for $31 million

The capital gains portion of the incentive fee, if any, would be:

•Year 1: None (no sales transactions)

•Year 2: $6 million (20% multiplied by $30 million realized capital gains on sale of Investment A)

•Year 3: None; $5 million (20% multiplied by $30 million cumulative realized capital gains less $5 million cumulative unrealized capital depreciation) less $6 million (Capital Gains Fee paid in Year 2)

•Year 4: $200,000; $6.2 million (20% multiplied by $31 million cumulative realized capital gains) less $6 million (Capital Gains Fee paid in Year 2)

Alternative 2

Assumptions

•Year 1: $20 million investment made in Company A (“Investment A”), $30 million investment made in Company B (“Investment B”) and $25 million investment made in Company C (“Investment C”)

•Year 2: Investment A sold for $50 million, FMV of Investment B determined to be $25 million and FMV of Investment C determined to be $25 million

•Year 3: FMV of Investment B determined to be $27 million and Investment C sold for $30 million

•Year 4: FMV of Investment B determined to be $35 million

•Year 5: Investment B sold for $20 million

The capital gains portion of the incentive fee, if any, would be:

•Year 1: None (no sales transactions)

•Year 2: $5 million (20% multiplied by $30 million realized capital gains on Investment A less $5 million unrealized capital depreciation on Investment B)

•Year 3: $1.4 million; $6.4 million (20% multiplied by $32 million ($35 million cumulative realized capital gains on Investment A and Investment C less $3 million cumulative unrealized capital depreciation on Investment B)) less $5 million (Capital Gains Fee paid in Year 2)

•Year 4: $0.6 million; $7 million (20% multiplied by $35 million (cumulative realized capital gains on Investment A and Investment C)) less $6.4 million (cumulative Capital Gains Fee paid in all prior years)

•Year 5: None; $5 million (20% multiplied by $25 million ($35 million cumulative realized capital gains on Investments A and C less $10 million realized capital losses on Investment B)) less $7 million (cumulative Capital Gains Fee paid in all prior years))

Payment of Our Expenses

All investment professionals of OFS Advisor and/or its affiliates, when and to the extent engaged in providing us with investment advisory and management services, and the compensation and routine overhead expenses of such personnel allocable to these services, are provided and paid for by OFS Advisor and not by us. We bear all other out-of-pocket costs and expenses of our operations and transactions including the allocable portion of compensation and overhead of personnel of OFS Services. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations.”

Duration and Termination

Unless terminated earlier as described below, the Investment Advisory Agreement will remain in effect from year to year if approved annually by our Board or by the affirmative vote of the holders of a majority of our outstanding voting securities, and, in either case, if also approved by a majority of our directors who are not “interested persons” as defined in the 1940 Act. The Investment Advisory Agreement automatically terminates in the event of its assignment, as defined in the 1940 Act, by OFS Advisor and may be terminated by either party without penalty upon not less than 60 days’ written notice to the other. The holders of a majority of our outstanding voting securities may also terminate the Investment Advisory Agreement without penalty upon not less than 60 days’ written notice. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are dependent upon the OFSC senior professionals for our future success and upon their access to the investment professionals and partners of OFSAM and its affiliates.”

Administration Agreement

Pursuant to the Administration Agreement, OFS Services, an affiliate of OFS Advisor, provides the administrative services necessary for us to operate. OFS Services furnishes us with office facilities and equipment, necessary software licenses and subscriptions and clerical, bookkeeping and record keeping services at such facilities. Under the Administration Agreement, OFS Services performs, or oversees the performance of, our required administrative services, which includes maintenance of financial records necessary for the production of reports to our stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority. In addition, OFS Services assists us in determining and publishing our NAV, oversees the preparation and filing of our tax returns and the printing and dissemination of reports to our stockholders, general supervision of the payment of our expenses, and the performance of administrative and professional services rendered to us by others. Under the Administration Agreement, OFS Services provides managerial assistance on our behalf to certain portfolio companies that accept our offer to provide such assistance. Payments under the Administration Agreement are equal to an amount based upon our allocable portion (subject to the review and approval of our Board) of OFS Services’ overhead in performing its obligations under the Administration Agreement, including rent, necessary software licenses and subscriptions, and our allocable portion of the cost of our officers, including our chief executive officer, chief financial officer, chief compliance officer and their respective staffs. The Administration Agreement may be renewed annually with the approval of our Board, including a majority of our directors who are not “interested persons.” The Administration Agreement may be terminated by either party without penalty upon 60 days’ written notice to the other party. To the extent that OFS Services outsources any of its functions, we pay the fees associated with such functions at cost without incremental profit to OFS Services.

Expenses recognized under the Administration Agreement with OFS Services for the years ended December 31, 2025, 2024 and 2023, are presented below (dollar amounts in thousands):


	Year Ended December 31,
	2025	2024	2023
Administration fees	$1,557	$1,521	$1,680

Indemnification

The Investment Advisory Agreement and the Administration Agreement both provide that OFS Advisor, OFS Services and their affiliates’ respective directors, officers, employees, members, managers, partners and stockholders are entitled to indemnification from us from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement or the Administration Agreement, except where attributable to willful misfeasance, bad faith or gross negligence in the performance of such person’s duties or reckless disregard of such person’s obligations and duties under the Investment Advisory Agreement or the Administration Agreement.

Board Approval of the Investment Advisory and Administrative Agreements

Our Board, including our independent directors, approved the continuation of the Investment Advisory Agreement at a meeting held on April 3, 2025. In reaching a decision to approve the continuation of the Investment Advisory Agreement, the Board reviewed a significant amount of information and considered, among other things:

•the nature, quality and extent of the advisory and other services to be provided to us by OFS Advisor;

•the fee structures of comparable externally managed BDCs that engage in similar investing activities;

•our projected operating expenses and expense ratio compared to BDCs with similar investment objectives;

•any existing and potential sources of indirect income to OFS Advisor from its relationship with us and the profitability of that relationship, including through the Investment Advisory Agreement;

•information about the services to be performed and the personnel performing such services under the Investment Advisory Agreement; and

•the organizational capability and financial condition of OFS Advisor and its affiliates.

Based on the information reviewed and the discussion thereof, the Board, including a majority of the non-interested directors, concluded that the investment advisory fee rates were reasonable in relation to the services to be provided and approved the Investment Advisory Agreement as being in the best interests of our stockholders.

Our Board also reviewed services provided under the Administrative Agreement, and approved its continuation at the April 3, 2025 meeting.

License Agreement

We have entered into a license agreement with OFSAM under which OFSAM has agreed to grant us a non-exclusive, royalty-free license to use the name “OFS”. Under this agreement, we have a right to use the “OFS” name for so long as OFS Advisor or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we have no legal right to the “OFS” name. This license agreement will remain in effect for so long as the Investment Advisory Agreement with OFS Advisor is in effect.

REGULATION

General

We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates (including any investment advisers or sub-advisers), principal underwriters and affiliates of those affiliates or underwriters and requires that a majority of the directors be persons other than “interested persons,” as that term is defined in the 1940 Act.

In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by “a majority of our outstanding voting securities” as defined in the 1940 Act. A majority of the outstanding voting securities of a company is defined under the 1940 Act as the lesser of: (a) 67% or more of such company’s voting securities present at a meeting if more than 50% of the outstanding voting securities of such company are present or represented by proxy; or (b) more than 50% of the outstanding voting securities of such company. We do not anticipate any substantial change in the nature of our business.

We generally cannot issue and sell our common stock at a price below net asset value per share. We may, however, issue and sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current NAV of our common stock if: (1) our Board determines that such sale is in our best interests and the best interests of our stockholders; and (2) our stockholders have approved our policy and practice of making such sales within the preceding 12 months. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our Board, closely approximates the market value of such securities. On July 30, 2025, our stockholders approved a proposal to authorize us, with approval of our Board, to sell or otherwise issue shares of our common stock (during a twelve-month period) at a price below our then-current NAV per share in one or more offerings, subject to certain limitations (including that the cumulative number of shares sold pursuant to such authority does not exceed 25% of our then outstanding common stock immediately prior to each such sale).

The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with certain affiliates absent an order from the SEC permitting the BDC to do so. On August 4, 2020, we received our existing Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions. We are generally permitted to co-invest with Affiliated Funds if, under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching by us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

We may invest up to 100% of our assets in securities acquired directly from issuers in privately negotiated transactions. With respect to such securities, we may, for the purpose of public resale, be deemed an “underwriter” as that term is defined in the Securities Act. Our intention is to not write (sell) or buy, put or call, options to manage risks associated with the publicly traded securities of our portfolio companies, except that we may enter into hedging transactions to manage the risks associated with interest rate fluctuations. However, we may purchase or otherwise receive warrants to purchase the common stock of our portfolio companies in connection with acquisition financing or other investments. Similarly, in connection with an acquisition, we may acquire rights to require the issuers of acquired securities or their affiliates to repurchase them under certain circumstances. We also do not intend to acquire securities issued by any investment company that exceed the 3%, 5% and 10% limits imposed by the 1940 Act without obtaining exemptive relief. With regard to that portion of our portfolio invested in securities issued by investment companies, it should be noted that such investments might subject our stockholders to additional expenses as they will be indirectly responsible for the costs and expenses of such companies. None of our investment policies are fundamental and may be changed without stockholder approval.

Qualifying Assets

Under the 1940 Act, a BDC may not acquire any asset other than those listed in section 55(a) of the 1940 Act, which are referred to as “qualifying assets,” unless, at the time of acquisition, qualifying assets represent at least 70% of the company’s total assets, as defined by the 1940 Act. The principal categories of qualifying assets relevant to our business include:

(a)Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company, or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC. An eligible portfolio company is defined in the 1940 Act as any issuer that:

•is organized under the laws of, and has its principal place of business in, the United States;

•is not an investment company (other than a small business investment company wholly owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and

•satisfies any of the following:

◦does not have any class of securities listed on a national securities exchange or has any class of securities listed on a national securities exchange subject to a $250 million market capitalization maximum; or

◦is controlled by a BDC or a group of companies including a BDC, the BDC actually exercises a controlling influence over the management or policies of the eligible portfolio company, and, as a result, the BDC has an affiliated person who is a director of the eligible portfolio company; or

◦is a small and solvent company having total assets of not more than $4 million and capital and surplus of not less than $2 million.

(b)Securities of any eligible portfolio company which we control;

(c)Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident to such a private transaction, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities, was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements;

(d)Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company;

(e)Securities received in exchange for or distributed on or with respect to securities described above, or pursuant to the exercise of warrants or rights relating to such securities; and

(f)Cash, cash equivalents, U.S. government securities or high-quality debt securities that mature in one year or less from the date of investment.

Control, as defined by the 1940 Act, is presumed to exist where a BDC beneficially owns more than 25% of the outstanding voting securities of the portfolio company.

The regulations defining qualifying assets may change over time. We may adjust our investment focus as needed to comply with and/or take advantage of any regulatory, legislative, administrative or judicial actions in this area.

Managerial Assistance to Portfolio Companies

A BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in (a), (b) or (c) above. However, in order to count portfolio securities as qualifying assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities (other than small and solvent companies described above) significant managerial assistance. Where the BDC purchases such securities in conjunction with one or more other persons acting together, the BDC will satisfy this test if one of the other persons in the group makes available such managerial assistance, although this may not be the sole method by which the BDC satisfies the requirement to make available managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

Temporary Investments

In addition to investing in other types of qualifying assets, as described above, our investments may include cash, cash equivalents, U.S. government securities, repurchase agreements and high-quality debt investments that mature in one year or less from the date of investment, which we refer to, collectively, as temporary investments, so that 70% of our assets, as defined by the 1940 Act, are qualifying assets or temporary investments. We may invest in highly rated commercial paper, U.S. Government agency notes, and U.S. Treasury bills or repurchase agreements relating to such securities that are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price that is greater than the purchase price by an amount that reflects an agreed-upon interest rate. Consequently, repurchase agreements are functionally similar to loans. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, the 1940 Act and certain diversification tests in order to qualify as a RIC for U.S. federal income tax purposes typically require us to limit the amount we invest with any one counterparty. Accordingly, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. OFS Advisor monitors the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

Warrants and Options

Under the 1940 Act, a BDC is subject to restrictions on the amount of warrants, options, restricted stock or rights to purchase shares of capital stock that it may have outstanding at any time. Under the 1940 Act, we may generally only offer warrants provided that: (i) the warrants expire by their terms within ten years; (ii) the exercise or conversion price is not less than the current market value at the date of issuance; (iii) our stockholders authorize the proposal to issue such warrants, and our Board approves such issuance on the basis that the issuance is in the best interests of OFS Capital and its stockholders; and (iv) if the warrants are accompanied by other securities, the warrants are not separately transferable unless no class of such warrants and the securities accompanying them has been publicly distributed. The 1940 Act also provides that the amount of our voting securities that would result from the exercise of all outstanding warrants, as well as options and rights, at the time of issuance may not exceed 25% of our outstanding voting securities. In particular, the amount of capital stock that would result from the conversion or exercise of all outstanding warrants, options or rights to purchase capital stock cannot exceed 25% of the BDC’s total outstanding shares of capital stock.

Senior Securities

A BDC generally is not permitted to incur indebtedness unless, immediately after such borrowing, it has an asset coverage ratio for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). However, Section 61(a)(2) of the 1940 Act provides that a BDC may reduce its asset coverage ratio, provided that certain conditions are met. Specifically, Section 61(a)(2) provides that in order for a BDC whose common stock is traded on a national securities exchange to be subject to 150% asset coverage, the BDC must either obtain: (i) approval of the required majority of its non-interested directors who have no financial interest in the proposal, which would become effective one year after the date of such approval; or (ii) obtain stockholder approval (of more than 50% of the votes cast for the proposal at a meeting in which quorum is present), which would become effective on the first day after the date of such stockholder approval.

We may borrow money when the terms and conditions available are favorable to do so and are aligned with our investment strategy and portfolio composition. The use of borrowed funds or the proceeds of preferred stock to make investments would have its own specific benefits and risks, and all of the costs of borrowing funds or issuing preferred stock would be borne by holders of our common stock.

For a discussion of the risks associated with leverage, see “Item 1A. Risk Factors—Risks Related to BDCs—Regulations governing our operation as a BDC affect our ability to and the way in which we raise additional capital. As a BDC, we will need to raise additional capital, which will expose us to risks, including the typical risks associated with leverage.”

Compliance with the Sarbanes-Oxley Act of 2002 and the Nasdaq Global Select Market Corporate Governance Regulations

The Sarbanes-Oxley Act imposes a wide variety of regulatory requirements on publicly held companies and their insiders, many of which affect us. The Sarbanes-Oxley Act has required us to review our policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor, and take actions necessary to ensure, our compliance with all future regulations that are adopted under the Sarbanes-Oxley Act.

In addition, The Nasdaq Global Select Market has adopted various corporate governance requirements as part of its listing standards. We believe we are in compliance with such corporate governance listing standards. We will continue to monitor, and take actions necessary to ensure, our compliance with all future listing standards.

Exemptive Relief

We are generally prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Board who are not interested persons and, in some cases, prior approval by the SEC. The SEC has interpreted the BDC prohibition on transactions with affiliates to prohibit all “joint transactions” between entities that share a common investment adviser. Further, the 1940 Act generally prohibits BDCs from making certain negotiated co-investments with certain affiliates absent an order from the SEC permitting the BDC to do so.

On August 4, 2020, we received our existing Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions. We are generally permitted to co-invest with Affiliated Funds if under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

In addition, we have submitted a new application for exemptive relief that, if granted, would supersede our existing Order and permit us to co-invest pursuant to a different set of conditions than those in our existing Order. However, there is no guarantee that the SEC will grant such application. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—Our ability to enter into transactions with our affiliates is restricted, which may limit the scope of investments available to us.”

The staff of the SEC has granted no-action relief permitting purchases of a single class of privately placed securities provided that the adviser negotiates no term other than price and certain other conditions are met. As a result, unless under the Order, we only expect to co-invest on a concurrent basis with certain funds advised by OFS Advisor when each of us will own the same securities of the issuer and when no term is negotiated other than price. Any such investment would be made, subject to compliance with existing regulatory guidance, applicable regulations and OFS Advisor’s allocation policy. If opportunities arise that would otherwise be appropriate for us and for another fund advised by OFS Advisor to invest in different securities of the same issuer, OFS Advisor will need to decide which fund will proceed with the investment. The decision by OFS Advisor to allocate an opportunity to another entity could cause us to forego an investment opportunity that we otherwise would have made. Moreover, except in certain circumstances, we will be unable to invest in any issuer in which another fund advised by OFS Advisor has previously invested.

Small Business Investment Company Regulations

On March 1, 2024, SBIC I LP fully repaid its outstanding SBA debentures totaling $31.9 million, and, on April 17, 2024, surrendered its license to operate as a SBIC.

Prior to surrendering our SBIC license on April 17, 2024, our use of cash held by SBIC I LP was restricted by SBA regulations, including limitations on the amount of cash SBIC I LP could distribute to us.

Other

We are subject to periodic examination by the SEC for compliance with the Exchange Act and the 1940 Act.

We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to OFS Capital or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office.

We and OFS Advisor each have adopted and implemented written policies and procedures reasonably designed to prevent violation of relevant federal securities laws, will review these policies and procedures annually for their adequacy and the effectiveness of their implementation, and have designated a chief compliance officer to be responsible for administering the policies and procedures.

Our internet address is www.ofscapital.com. We make available free of charge on our website our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and amendments to those reports as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The SEC also maintains a website at http://www.sec.gov that contains such information. We make our website content available for informational purposes only. It should not be relied upon for investment purposes, nor is it incorporated by reference into this Annual Report on Form 10-K.

Code of Ethics

We and OFS Advisor have each adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to either code may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the code’s requirements. Our code of ethics is available, free of charge, on our website at www.ofscapital.com. The code of ethics is available on the EDGAR Database on the SEC’s website at http://www.sec.gov. You may also obtain copies of the code of ethics, after paying a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.

Proxy Voting Policies and Procedures

We have delegated our proxy voting responsibility to OFS Advisor. The proxy voting policies and procedures of OFS Advisor are set out below. The guidelines are reviewed periodically by OFS Advisor and our directors who are not “interested persons,” and, accordingly, are subject to change. For purposes of these proxy voting policies and procedures described below, “we,” “our” and “us” refer to OFS Advisor.

Introduction. As an investment adviser registered under the Advisers Act, we have a fiduciary duty to act solely in the best interests of our clients. As part of this duty, we recognize that we must vote client securities in a timely manner free of conflicts of interest and in the best interests of our clients.

These policies and procedures for voting proxies for our investment advisory clients are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

Proxy Policies. We vote proxies relating to our portfolio securities in what we perceive to be the best interest of our clients. We review on a case-by-case basis each proposal submitted to a stockholder vote to determine its effect on the portfolio securities held by our clients. In most cases we will vote in favor of proposals that we believe are likely to increase the economic value of the underlying portfolio securities held by our clients. Although we will generally vote against proposals that may have a negative effect on our clients’ portfolio securities, we may vote for such a proposal if there exist compelling long-term reasons to do so.

Our proxy voting decisions are made by those senior officers who are responsible for monitoring each of our clients’ investments. To ensure that our vote is not the product of a conflict of interest, we require that: (1) anyone involved in the decision-making process disclose to our chief compliance officer any potential conflict that he or she is aware of and any contact that he or she has had with any interested party regarding a proxy vote; and (2) employees involved in the decision-making process or vote administration are prohibited from revealing how we intend to vote on a proposal in order to reduce any attempted influence from interested parties. Where conflicts of interest may be present, we will disclose such conflicts to our

client, including with respect to OFS Capital, those directors who are not interested persons, and we may request guidance from such persons on how to vote such proxies for their account.

Proxy Voting Records. You may obtain information about how we voted proxies for the Company free of charge, by making a written request for proxy voting information to: OFS Capital Corporation, 222 W. Adams Street, Suite 1850, Chicago, Illinois 60606, Attention: Investor Relations, or by calling OFS Capital Corporation at (847) 734-2084. The SEC also maintains a website at http://www.sec.gov that contains such information.

Privacy Principles

We are committed to maintaining the privacy of our stockholders and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information we collect, how we protect that information and why, in certain cases, we may share information with select other parties.

Generally, we do not receive any nonpublic personal information relating to our stockholders, although certain nonpublic personal information of our stockholders may become available to us. We do not disclose any nonpublic personal information about our stockholders or former stockholders to anyone, except as permitted by law or as is necessary in order to service stockholder accounts (for example, to a transfer agent or third-party administrator).

We restrict access to nonpublic personal information about our stockholders to employees of OFS Advisor and its affiliates with a legitimate business need for the information. We maintain physical, electronic and procedural safeguards designed to protect the nonpublic personal information of our stockholders.

Material U.S. Federal Income Tax Considerations

Election to be Taxed as a RIC. We have elected to be taxed as a RIC under Subchapter M of the Code. As a RIC, we are not required to pay corporate-level U.S. federal income taxes on any income that we distribute to our stockholders from our otherwise taxable earnings and profits. To maintain our qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements, as described below. In addition, to receive RIC tax treatment, we must meet the Annual Distribution Requirement. The excess of net long-term capital gains over net short-term capital losses, if any (“Net Capital Gains”), are not a component of the Annual Distribution Requirement, but impacts taxable income if not distributed as discussed below.

Taxation as a RIC. If we:

•maintain our qualification as a RIC; and

•satisfy the Annual Distribution Requirement;

then we will not be subject to U.S. federal income tax on the portion of our ICTI or Net Capital Gains we distribute to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any ICTI or Net Capital Gain not distributed to our stockholders. We may also retain Net Capital Gains for investment through a deemed distribution. If we make a deemed distribution, stockholders will be treated for U.S. federal income tax purposes as if they had received an actual distribution of Net Capital Gains, net of taxes.

We are also subject to a 4% nondeductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of: (1) 98% of our net ordinary income for each calendar year; (2) 98.2% of our capital gain net income (both long-term and short-term) for the one-year period ending October 31 in that calendar year (or, if we so elect, for that calendar year); and (3) any income and gains recognized, but not distributed, in preceding years and on which we paid no U.S. federal income tax (the “Excise Tax Avoidance Requirement”). We may choose to retain a portion of our ordinary income and/or capital gain net income in any year and pay the 4% U.S. federal excise tax on the retained amounts. For the years ended December 31, 2025, 2024 and 2023, we recognized U.S. federal excise tax expense of $0.0 million, $(0.1) million and $0.0 million, respectively.

In order to maintain our qualification as a RIC for U.S. federal income tax purposes, we must, among other things:

•continue to qualify as a BDC under the 1940 Act at all times during each taxable year;

•derive in each taxable year at least 90% of our gross income from dividends, interest, certain payments with respect to loans of stock and securities, gains from the sale or other disposition of stock, securities, or foreign currencies and other income (including but not limited to gains from options, futures or forward contracts) derived with respect to our business of investing in such stock, securities or currencies, and net income derived from interests in “qualified publicly traded partnerships,” as such term is defined in the Code (the “90% Income Test”); and

•diversify our holdings so that at the end of each quarter of the taxable year:

◦at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the value of our assets and 10% of the outstanding voting securities of such issuer; and

◦no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, of one issuer, of two or more issuers that we control (as determined under applicable tax rules) and that are engaged in the same, similar or related trades or businesses or of one or more qualified publicly traded partnerships (the “Diversification Tests”).

We may invest in partnerships, including qualified publicly traded partnerships, which may result in our being subject to state, local or foreign income taxes, franchise taxes, or withholding liabilities.

We are required to recognize ICTI in circumstances in which we have not received a corresponding payment in cash. For example, we hold debt obligations that are treated under applicable tax rules as issued with OID and debt instruments with PIK interest, and we must include in ICTI each year the portion of the OID and PIK interest that accrues for that year (as it accrues over the life of the obligation), irrespective of whether the cash representing such income is received by us in that taxable year. The continued recognition of non-cash ICTI may cause difficulty in meeting the Annual Distribution Requirement. We may be required to sell investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital, or forgo new investment opportunities to meet this requirement. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax.

We are authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, we are not permitted to make distributions to our stockholders while our debt obligations and other senior securities are outstanding unless certain “asset coverage” tests are met. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by: (1) the illiquid nature of our portfolio; and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous. See “Regulation—Senior Securities.”

Certain of our investment practices may be subject to special and complex U.S. federal income tax provisions that may, among other things: (1) treat dividends that would otherwise qualify for the dividends received deduction or constitute qualified dividend income as ineligible for such treatment; (2) disallow, suspend or otherwise limit the allowance of certain losses or deductions; (3) convert lower-taxed long-term capital gain into higher-taxed short-term capital gain or ordinary income; (4) convert an ordinary loss or a deduction into a capital loss (the deductibility of which is more limited); (5) cause us to recognize income or gain without receipt of a corresponding distribution of cash; (6) adversely affect the time as to when a purchase or sale of stock or securities is deemed to occur; (7) adversely alter the characterization of certain complex financial transactions; and (8) produce income that will not be considered “qualifying income” for purposes of the 90% Income Test. We will monitor our transactions and may make certain tax elections to mitigate the potential adverse effect of these provisions, but there can be no assurance that any adverse effects of these provisions will be mitigated.

Our investments in Structured Finance Securities are generally “passive foreign investment company” (“PFIC”) investments, which can subject us to U.S. federal income tax on our allocable share of a portion of any “excess distribution” received on, or any gain from the disposition of, such shares even if our allocable share of such income is distributed as a taxable dividend to our stockholders. Additional charges in the nature of interest generally would also be imposed on us for the deemed delay in our reporting of such excess distribution and the earning of such income by the underlying PFIC. However, we have elected, and expect to continue to elect, to treat our investments in PFICs as “qualified electing funds” under the Code (a “QEF”), and in lieu of the foregoing requirements, we will be required to include in income each year our proportionate share of the ordinary earnings and net capital gain of the QEF, even if such income is not distributed by the QEF. In lieu of a QEF election, we may in the future elect to mark-to-market at the end of each taxable year our shares in a PFIC; in this case, we will recognize as ordinary income our allocable share of any increase in the value of such shares, and as ordinary loss our allocable share of any decrease in such value to the extent that any such decrease does not exceed prior increases included in its income. Under either election, we may be required to recognize in a year income in excess of distributions from PFICs and proceeds from dispositions of PFIC stock during that year, and such income will nevertheless be subject to the Annual Distribution Requirement and will be taken into account for purposes of the 4% U.S. federal excise tax.

Some of the income and fees that we recognize may result in income that will not be considered “qualifying income” for the 90% Income Test. In order to ensure that such income and fees do not disqualify us as a RIC for a failure to satisfy the 90% Income Test, we may recognize such income and fees directly or indirectly through one or more entities taxed as corporations for U.S. federal income tax purposes. Such corporations are required to pay U.S. corporate income tax on their

earnings, which ultimately reduces our return on such income and fees. OFSCC-MB, our taxable C-corporation subsidiary, held equity investments with an aggregate fair value of $4.8 million and $4.6 million as of December 31, 2025 and 2024, respectively, to prevent such non-qualifying income from adversely affecting our RIC status.

Failure to Qualify as a RIC. If we are unable to maintain our qualification as a RIC, we will be subject to tax on all of our ICTI and Net Capital Gains at regular corporate rates; we will not receive a dividend deduction for any distributions to our stockholders. Distributions would not be required, and any distributions would be taxable to our stockholders as ordinary dividend income that would, for qualifying non-corporate U.S. stockholders, be eligible for the current 20% maximum rate to the extent of our current and accumulated earnings and profits (subject to limitations under the Code). Subject to certain limitations under the Code, corporate distributions would be eligible for the dividends-received deduction. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder’s tax basis (reducing that basis accordingly), and any remaining distributions would be treated as a capital gain. To qualify again to be taxed as a RIC in a subsequent year, we would be required to distribute to our stockholders our earnings and profits attributable to non-RIC years. In addition, if we failed to qualify as a RIC for a period greater than two taxable years, then we would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if we had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years, in order to qualify as a RIC in a subsequent year.

Conflicts of Interests

BDCs are generally prohibited under the 1940 Act from knowingly participating in certain transactions with their affiliates without the prior approval of their independent directors and, in some cases, of the SEC. Those transactions include purchases and sales, and so-called “joint” transactions, in which a BDC and one or more of its affiliates engage in certain types of profit-making activities. Any person that owns, directly or indirectly, five percent or more of a BDC’s outstanding voting securities will be considered an affiliate of the BDC for purposes of the 1940 Act, and a BDC generally is prohibited from engaging in purchases from, sales of assets to, or joint transactions with, such affiliates, absent the prior approval of the BDC’s independent directors. Additionally, without the approval of the SEC, a BDC is prohibited from engaging in purchases from, sales of assets to, or joint transactions with, the BDC’s officers, directors, and employees, and advisor (and its control affiliates).

BDCs may, however, invest alongside certain related parties or their respective other clients in certain circumstances where doing so is consistent with current law and SEC staff interpretations. For example, a BDC may invest alongside such accounts consistent with guidance promulgated by the SEC staff permitting the BDC and such other accounts to purchase interests in a single class of privately placed securities so long as certain conditions are met, including that the BDC’s advisor, acting on the BDC’s behalf and on behalf of other clients, negotiates no term other than price. Co-investment with such other accounts is not permitted or appropriate under this guidance when there is an opportunity to invest in different securities of the same issuer or where the different investments could be expected to result in a conflict between the BDC’s interests and those of other accounts.

Conflicts Related to Portfolio Investments. Conflicts may arise when we make an investment in conjunction with an investment being made by an Affiliated Account, or in a transaction where an Affiliated Account has already made an investment. Investment opportunities are, from time to time, appropriate for more than one account in the same, different or overlapping securities of a portfolio company’s capital structure. Conflicts arise in determining the terms of investments, particularly where these accounts may invest in different types of securities in a single portfolio company. Questions arise as to whether payment obligations and covenants should be enforced, modified or waived, or whether debt should be restructured, modified or refinanced.

We may invest in debt and other securities of companies in which Affiliated Accounts hold those same securities or different securities, including equity securities. In the event that such investments are made by us, our interests will at times conflict with the interests of such Affiliated Accounts, particularly in circumstances where the underlying company is facing financial distress. Decisions about what action should be taken, particularly in troubled situations, raise conflicts of interest, including, among other things, whether or not to enforce claims, whether or not to advocate or initiate a restructuring or liquidation inside or outside of bankruptcy, and the terms of any work-out or restructuring. The involvement of Affiliated Accounts at both the equity and debt levels could inhibit strategic information exchanges among fellow creditors, including among us or Affiliated Accounts. In certain circumstances, we or an Affiliated Account may be prohibited from exercising voting or other rights and may be subject to claims by other creditors with respect to the subordination of their interest.

In the event that we or an Affiliated Account has a controlling or significantly influential position in a portfolio company, that account may have the ability to elect some or all of the board of directors of such a portfolio company, thereby controlling the policies and operations of such portfolio company, including the appointment of management, future issuances of securities, payment of dividends, incurrence of debt and entering into extraordinary transactions. In addition, a controlling account is likely to have the ability to determine, or influence, the outcome of operational matters and to cause, or prevent, a

change in control of such a company. Such management and operational decisions may, at times, be in direct conflict with other accounts that have invested in the same portfolio company that do not have the same level of control or influence over the portfolio company.

If additional capital is necessary as a result of financial or other difficulties, or to finance growth or other opportunities, the accounts may or may not provide such additional capital, and if provided, each account will supply such additional capital in such amounts, if any, as determined by OFS Advisor. In addition, a conflict arises in allocating an investment opportunity if the potential investment target could be acquired by us, an Affiliated Account, or a portfolio company of an Affiliated Account. Investments by more than one account of OFS Advisor or its affiliates in a portfolio company also raise the risk of using assets of an account of OFS Advisor or its affiliates to support positions taken by other accounts of OFS Advisor or its affiliates, or that an account may remain passive in a situation in which it is entitled to vote. In addition, there may be differences in timing of entry into, or exit from, a portfolio company for reasons such as differences in strategy, existing portfolio or liquidity needs, different account mandates or fund differences, or different securities being held. These variations in timing may be detrimental to us.

The application of our or an Affiliated Account’s governing documents and the policies and procedures of OFS Advisor are expected to vary based on the particular facts and circumstances surrounding each investment by two or more accounts, in particular when those accounts are in different classes of an issuer’s capital structure (as well as across multiple issuers or borrowers within the same overall capital structure) and, as such, there may be a degree of variation and potential inconsistencies, in the manner in which potential or actual conflicts are addressed.

Co-Investment with Affiliates. On August 4, 2020, we received our current Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions. We are generally permitted to co-invest with Affiliated Funds if under the terms of the Order, a "required majority" (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

When we invest alongside Affiliated Accounts, OFS Advisor will, to the extent consistent with applicable law, regulatory guidance, or the Order, allocate investment opportunities in accordance with its allocation policy. Under this allocation policy, if two or more investment vehicles with similar or overlapping investment strategies are in their investment periods, an available opportunity will be allocated based on the provisions governing allocations of such investment opportunities in the relevant organizational, offering or similar documents, if any, for such investment vehicles. In the absence of any such provisions, OFS Advisor will consider the following factors and the weight that should be given with respect to each of these factors:

•investment guidelines and/or restrictions, if any, set forth in the applicable organizational, offering or similar documents for the investment vehicles;

•the status of tax restrictions and tests and other regulatory restrictions and tests;

•risk and return profile of the investment vehicles;

•suitability/priority of a particular investment for the investment vehicles;

•if applicable, the targeted position size of the investment for the investment vehicles;

•level of available cash for investment with respect to the investment vehicles;

•total amount of funds committed to the investment vehicles; and

•the age of the investment vehicles and the remaining term of their respective investment periods, if any.

When not relying on the Order, priority as to opportunities will generally be given to clients that are in their “ramp-up” period, or the period during which the account has yet to reach sufficient scale such that its investment income covers its

operating expenses, over the accounts that are outside their ramp-up period but still within their investment or re-investment periods. However, application of one or more of the factors listed above, or other factors determined to be relevant or appropriate, may result in the allocation of an investment opportunity to a fund no longer in its ramp-up period over a fund that is still within its ramp-up period.

In situations where co-investment with Affiliated Accounts is not permitted or appropriate, OFS Advisor will need to decide which account will proceed with the investment. The decision by OFS Advisor to allocate an opportunity to another entity could cause us to forego an investment opportunity that we otherwise would have made. These restrictions, and similar restrictions that limit our ability to transact business with our officers or directors or their affiliates, may limit the scope of investment opportunities that would otherwise be available to us.

Item 1A. Risk Factors

RISK FACTORS

Investing in our securities involves a number of significant risks. In addition to the other information contained in this Annual Report on Form 10-K, you should consider carefully the following information before making an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us might also impair our operations and performance. If any of the following events occur, our business, financial condition and results of operations could be materially and adversely affected. In such case, our NAV and the trading price of our securities could decline, and you may lose all or part of your investment. The risk factors described below are the principal risk factors associated with an investment in our securities as well as those factors generally associated with an investment company with investment objectives, investment policies, capital structure or trading markets similar to ours.

Summary Risk Factors

We are subject to risks related to our business and structure.

•Global economic, political and market conditions may adversely affect our business, our ability to secure debt financing, and our results of operations and financial condition, including our revenue growth and profitability.

•Events outside of our control, including public health crises, rapidly changing interest and inflation rates and significant market volatility, have negatively affected, and could continue to negatively affect, our investments and our results of operations.

•Due to economic disruptions, we may not be able to increase our dividends and may reduce or defer our dividends and choose to incur U.S. federal excise tax in order to preserve cash and maintain flexibility.

•We are dependent upon the OFSC senior professionals for our future success and upon their access to the investment professionals and partners of OFSAM and its affiliates.

•A significant amount of our portfolio investments are recorded at fair value and OFS Advisor, our “valuation designee,” determines the fair value of our investments in good faith pursuant to Rule 2a-5 under the 1940 Act. As a result, there will be uncertainty as to the value of our portfolio investments and the participation of OFS Advisor’s professionals in our valuation process could result in a conflict of interest.

•We may finance our investments with borrowed money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us.

•Insufficient cash flows may increase our risk of default of our debt obligations, including under our Unsecured Notes, our Natixis Facility and our Banc of California Credit Facility.

•We will be subject to U.S. federal income tax at corporate rates if we are unable to maintain our tax treatment as a RIC.

•In the future, we may choose to pay distributions in our own stock and stockholders may be required to pay tax in excess of the cash they receive.

•Because we expect to distribute substantially all of our net ordinary income and net realized capital gains to our stockholders, we may need additional capital to finance our growth and such capital may not be available on favorable terms or at all.

•Changes in the laws or regulations governing our business, or changes in the interpretations thereof, and any failure by us to comply with these laws or regulations, could have a material adverse effect on our, and our portfolio companies’ business, results of operations or financial condition.

•Our Board may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

We are subject to risks related to OFS Advisor and its Affiliates.

•We have potential conflicts of interest related to obligations that OFS Advisor or its affiliates may have to other clients.

•We have potential conflicts of interest related to the purchases and sales that OFS Advisor makes on our behalf and/or on behalf of Affiliated Accounts.

•The valuation process for certain of our portfolio holdings may create a conflict of interest.

•Our ability to enter into transactions with our affiliates is restricted, which may limit the scope of investments available to us.

•Our incentive fee structure may create incentives for OFS Advisor that are not fully aligned with the interests of our stockholders.

•OFS Advisor’s liability is limited under the Investment Advisory Agreement, and we have agreed to indemnify OFS Advisor against certain liabilities, which may lead OFS Advisor to act in a riskier manner on our behalf than it would when acting for its own account.

•OFS Advisor can resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

We are subject to risks related to our investments.

•The effects of inflation may adversely affect the business, results of operations and financial condition of our portfolio companies.

•Fluctuations in interest rates could have a material adverse effect on our business and that of our portfolio companies.

•Any of our portfolio companies operating in the Health Care and Social Assistance industry are subject to extensive government regulation and certain other risks particular to that industry.

•Our investments in private and middle-market portfolio companies are generally considered lower credit quality obligations, are generally illiquid, are risky, and we could lose all or part of our investment.

•Our investments in Structured Finance Securities carry additional risks to the risks associated with investing in private debt.

•Our investments in Structured Finance Securities are more likely to suffer a loss of all or a portion of their value in the event of a default.

•We are a non-diversified management investment company within the meaning of the 1940 Act, and therefore we are not limited by the 1940 Act with respect to the proportion of our assets that may be invested in securities of a single issuer.

•If we make subordinated investments, the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.

•We and our investments are subject to interest rate risk.

We are subject to risks related to our securities and an investment in our common stock.

•There is a risk that stockholders may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

•The market price of our common stock may fluctuate and decrease significantly.

•Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.

•Our common stock may trade below its NAV per share, which limits our ability to raise additional equity capital.

Risks Related to Our Business and Structure

Global economic, political and market conditions may adversely affect our business, our ability to secure debt financing, and our results of operations and financial condition, including our revenue growth and profitability.

The uncertain state of the global economy, as well as various social, economic and political tensions in both the United States and around the world (including war, terrorist attacks and other forms of conflict), may contribute to increased market volatility, may have long term effects on the United States and worldwide financial markets, and may cause economic

uncertainties or deterioration in the United States and worldwide. For example, there is currently geopolitical, economic and financial market instability in the United States, the United Kingdom, the European Union and China, and as a result of the ongoing war between Russia and Ukraine and activity in South America.

In addition, the impact of recent shifts in U.S. trade policy has added further uncertainty to global economic conditions. The U.S. government has imposed, and may continue to impose, significant increases in tariffs and other trade restrictions on certain foreign goods imported into the U.S. Some foreign governments, including China, have instituted retaliatory tariffs, on certain U.S. goods. These actions, and the possibility of further changes to international trade agreements, trade policies and immigration policies, could add to price and wage pressures and may elevate inflation. Any disruptions in the capital markets, as a result of economic, political and market instability (including as a result of the current U.S. presidential administration, the prolonged November 2025 shutdown of U.S. government services and the risk of additional shutdowns, strikes, work stoppages, labor shortages, labor disputes, supply chain disruptions and accidents), may increase the spread between the yields realized on risk-free and higher risk securities and can result in illiquidity in parts of the capital markets, significant write-offs in the financial sector and re-pricing of credit risk in the broadly syndicated market. These and any other unfavorable economic conditions could increase our funding costs, limit our access to the capital markets and result in a decision by lenders not to extend credit to us.

The ongoing war between Russia and Ukraine and the resulting global responses, including economic sanctions by the United States, the European Union and other countries, and the escalated armed conflict and regional tensions in the Middle East and South America have increased, and could continue to increase, volatility and uncertainty in the financial markets and adversely affect regional and global economies. The extent and duration of the ongoing armed conflicts in Ukraine and the Middle East and the repercussions of such conflicts are impossible to predict, but could result in significant market disruptions and may further negatively affect global supply chains, energy prices, inflation and global growth.

The current inflationary environment may continue and some economists predict that the U.S. economy may enter an economic recession. The current economic and financial market instability as well as the risk of recession, may lead to financial institutions limiting their lending activity and refinancing transactions. It may become difficult for us to secure appropriate financing to finance the growth of our investments on acceptable economic terms. Market volatility is also likely to result in borrower defaults and/or restructuring of existing credit arrangements. Major public health incidents may lead to significant economic disruption in the economy of the United States and the economies of other nations. Any such disruption or future pandemics, as well as the generally negative economic impact of such events, may have adverse impacts on our business and our results of operations and financial condition. While certain markets have shown signs of stabilizing, market conditions remain uncertain and a period of deterioration and volatility could re-emerge.

Negative economic trends would also increase the likelihood that major financial institutions or other entities having a significant impact on the financial and credit markets may suffer a bankruptcy or insolvency. In addition, certain industries may feel the impact of such negative economic trends more than others. There is a material possibility that economic activity will be volatile or will slow significantly, and some obligors may be significantly and negatively impacted by these negative economic trends. There can be no assurance that the leveraged finance and CLO markets will not be adversely impacted by future economic downturns or market volatility.

The financial results of middle-market companies, in which we primarily invest, have experienced deterioration because of market volatility, which could ultimately lead to difficulty in meeting debt service requirements and an increase in defaults, and further deterioration will further depress the outlook for middle-market companies. Moreover, adverse economic conditions have decreased, and may in the future decrease, the value of collateral securing some of our loans and the value of our equity investments. Such conditions have required, and may in the future require, us to modify the payment terms of our investments, including changes in PIK interest provisions and/or cash interest rates. The performance of certain of our portfolio companies has been, and in the future may be, negatively impacted by these economic or other conditions, which can result in our receipt of reduced interest income from our portfolio companies and/or realized and unrealized losses related to our investments, and, in turn, may adversely affect distributable income and have a material adverse effect on our results of operations.

Significant disruption or volatility in the capital markets may also have a negative effect on the valuations of our investments. While most of our investments are not publicly traded, applicable accounting standards require us to assume as part of our valuation process that our investments are sold in a principal market to market participants (even if we plan on holding an investment through its maturity). Significant disruption or volatility in the capital markets may also affect the pace of our investment activity and the potential for liquidity events involving our investments. Thus, the illiquidity of our investments may make it difficult for us to sell such investments to access capital if required, and as a result, we could realize significantly less than the value at which we have recorded our investments if we were required to sell them for liquidity purposes. An inability to raise or access capital could have a material adverse effect on our business, financial condition or results of operations.

We may also be subject to risk arising from a default by one of several large institutions that are dependent on one another to meet their liquidity or operational needs, so that a default by one institution may cause a series of defaults by the other institutions. This is sometimes referred to as “systemic risk” and may adversely affect financial intermediaries with which we interact in the conduct of our business.

Overall uncertainty in the global and U.S. economic environment may adversely affect our business, ability to secure debt financing, results of operations and financial condition, including our revenue growth and profitability. We continuously monitor developments and seek to manage our investments in a manner consistent with achieving our investment objective, but there can be no assurance that we will be successful in doing so.

Events outside of our control, including public health crises, rapidly changing interest and inflation rates and significant market volatility, have negatively affected, and could continue to negatively affect, our investments and our results of operations.

Periods of market volatility may continue to occur in response to changes in interest rates and inflation rates, public health crises, or other events outside of our control. These types of events continue to lead to disruptions in local, regional, national and global markets and economies, may lead to a recession, and have adversely affected, and will continue to adversely affect, our operating results.

In the recent past, inflation rates and food and energy costs increased, reflecting labor market, supply chain and transportation disruptions. There is significant uncertainty about the future relationship between the United States and other countries with respect to trade policies, treaties and tariffs. These developments may have a material impact on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Beginning in the fall of 2024, the U.S. Federal Reserve lowered interest rates several times, and although the U.S. Federal Reserve has signaled the potential for additional federal funds rate cuts, uncertainty remains regarding their timing and extent, including in response to federal policy developments and evolving inflation data.

Any of the foregoing factors, or other cascading effects of changing interest and inflation rates, could materially increase our costs, negatively impact our investment income and damage our results of operations and liquidity position, possibly to a significant degree. These impacts, the duration of which remains uncertain, have affected and will continue to adversely affect the Company’s operating results.

Due to economic disruptions, we may not be able to increase our dividends and may reduce or defer our dividends and choose to incur U.S. federal excise tax in order to preserve cash and maintain flexibility.

As a BDC, we are not required to make any distributions to stockholders other than in connection with our election to be taxed as a RIC under subchapter M of the Code. In order to maintain our tax treatment as a RIC, we must distribute to stockholders for each taxable year at least 90% of our ICTI. If we qualify for taxation as a RIC, we generally will not be subject to corporate-level U.S. federal income tax on our ICTI and net capital gains (i.e., realized net long-term capital gains in excess of realized net short-term capital losses) that we timely distribute to stockholders. We will be subject to a 4% U.S. federal excise tax on undistributed earnings of a RIC unless we distribute each calendar year at least the sum of: (i) 98.0% of our ordinary income for the calendar year; (ii) 98.2% of our capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year; and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years and on which we paid no U.S. federal income tax.

Under the Code, we may satisfy certain of our RIC distributions with dividends paid after the end of the current year. In particular, if we pay a distribution in January of the following year that was declared in October, November, or December of the current year and is payable to stockholders of record in the current year, the dividend will be treated for all U.S. federal tax purposes as if it were paid on December 31 of the current year. In addition, under the Code, we may pay dividends, referred to as “spillover dividends,” that we: (i) declare on or before the later of the 15th day of the 9th month following the close of our taxable year or, in the case of an extension of time for filing our return for the taxable year, the due date for filing such return taking into account such extension; and (ii) pay during the following taxable year (but not later than the date of the first dividend payment of the same type of dividend made after such declaration). Such dividends will allow us to maintain our qualification for taxation as a RIC and eliminate our liability for corporate-level U.S. federal income tax. Under these spillover dividend procedures, we may defer distribution of income earned during the current year until December of the following year. For example, we may defer distributions of income earned during 2025 until as late as December 31, 2026. However, if we choose to pay a spillover dividend, we will still incur the 4% U.S. federal excise tax on some or all of the distribution.

Due to disruptions in the economy, including fluctuating interest rates and high inflation rates, we may take certain actions with respect to the timing and amounts of our distributions in order to preserve cash and maintain flexibility. For example, we may not be able to increase our dividends. In addition, we may reduce our dividends and/or defer our dividends to the following taxable year. If we defer our dividends, we may choose to utilize the spillover dividend rules discussed above and

incur the 4% U.S. federal excise tax on such amounts. To further preserve cash, we may combine these reductions or deferrals of dividends with one or more distributions that are payable partially in our stock. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—In the future, we may choose to pay distributions in our own stock and stockholders may be required to pay tax in excess of the cash they receive.”

We are dependent upon the OFSC senior professionals for our future success and upon their access to the investment professionals and partners of OFSAM and its affiliates.

OFS Advisor is a wholly owned subsidiary of OFSAM, has no employees of its own and depends upon access to the investment professionals and other resources of OFSC and its affiliates to fulfill its obligations to us under the Investment Advisory Agreement. OFS Advisor also depends upon OFSC to obtain access to deal flow generated by the professionals of OFSC and its affiliates. Under a staffing agreement between OFSC and OFS Advisor, OFSC has agreed to provide OFS Advisor with the following services to enable OFS Advisor to undertake and perform its business activities as an investment adviser: (i) the provision of staff necessary to meet all staffing requirements, including making available experienced investment professionals and access to the senior investment personnel of OFSC and its affiliates; and (ii) the services of certain named members of the investment committee of OFS Advisor. Experienced investment professionals include investment professionals with reasonable industry experience who are responsible for making investment decisions, conducting research and analysis, and managing risks to achieve their clients’ financial goals. Roles and titles of such individuals include, but are not limited to, directors, associates and analysts who evaluate, structure, monitor and review investments of OFS Advisor and its clients, including the Company. Senior investment personnel include investment professionals that have developed a broad network of contacts within the investment community and that have an average of over 25 years of investment experience, including experience with structuring and investing in CLOs, as well as investing in assets that constitute the underlying assets held by typical CLOs in which the Company will invest. Roles and titles of such individuals include president, chief executive officer, chief financial officer, senior managing director and managing director. To manage potential conflicts of interest that may arise as a result of the staffing agreement, OFS Advisor and its clients, including the Company, have jointly adopted a Code of Ethics that is designed to address potential conflicts of interest and establishes applicable policies, guidelines and procedures that promote ethical practices and conduct by all personnel of OFS Advisor and OFSC and prevent violations of applicable laws, including the Advisers Act and the 1940 Act.

The staffing agreement also provides for: (i) the identification of investment opportunities for OFS Advisor and its clients, and its affiliates and structured finance vehicles; (ii) evaluation (investment and credit analysis), structuring, monitoring and review of investments of OFS Advisor and its clients, and its affiliates and structured finance vehicles, and the negotiation and closing of investment transactions on behalf of OFS Advisor and its clients, and its affiliates and structured finance vehicles; (iii) legal, compliance and accounting functions; (iv) all other functions and duties of OFS Advisor and its affiliates that are customarily performed by other companies in similar businesses to OFS Advisor and its affiliates; and (v) such other services as may be agreed to from time to time between OFS Advisor and OFSC. We are not a party to this staffing agreement and cannot assure you that OFSC will fulfill its obligations under the agreement. If OFSC fails to perform, we cannot assure you that OFS Advisor will enforce the staffing agreement or that such agreement will not be terminated by either party or that we will continue to have access to the investment professionals of OFSC and its affiliates or their information and deal flow.

We do not have any internal management capacity or employees. We depend on the diligence, skill and network of business contacts of the OFSC senior professionals to achieve our investment objectives. Our future success will depend, to a significant extent, on the continued service and coordination of the OFSC senior management team, particularly Bilal Rashid, Glen Ostrander and Kenneth A. Brown (collectively, the “Senior Investment Team”). Each of these individuals is an employee at will of OFSC, and is not subject to an employment contract. In addition, we rely on the services of Richard Ressler, Chairman of the executive committee of OFSAM Holdings and Chairman of the Middle Market Investment Committee of OFS Advisor, Structured Credit Investment Committee of OFS Advisor and Broadly Syndicated Investment Committee of OFS Advisor pursuant to a consulting agreement with Orchard Capital Corporation. The departure of Mr. Ressler, any of the Senior Investment Team, any of the senior managers of OFSC, or of a significant number of its other investment professionals, could have a material adverse effect on our ability to achieve our investment objective.

We expect that OFS Advisor will continue to evaluate, negotiate, structure, close and monitor our investments in accordance with the terms of the Investment Advisory Agreement. We can offer no assurance, however, that OFSC senior professionals will continue to provide investment advice to us. If these individuals do not maintain their existing relationships with OFSC and its affiliates and do not develop new relationships with other sources of investment opportunities, we may not be able to grow our investment portfolio or achieve our investment objectives. In addition, individuals with whom the OFSC senior professionals have relationships are not obligated to provide us with investment opportunities. Therefore, we can offer no assurance that such relationships will generate investment opportunities for us.

The investment committees that oversee our investment activities are provided by OFS Advisor under the Investment Advisory Agreement. The loss of any member of the Advisor Investment Committees or of other OFSC senior professionals

could limit our ability to achieve our investment objective and operate as we anticipate. This could have a material adverse effect on our financial condition and results of operation.

Our business model depends to a significant extent upon strong referral relationships with financial institutions, sponsors and investment professionals. Any inability of OFS Advisor to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business.

We depend upon OFS Advisor to maintain relationships with financial institutions, sponsors and investment professionals, and we will continue to rely to a significant extent upon these relationships to provide us with potential investment opportunities. If OFS Advisor fails to maintain such relationships, or to develop new relationships with other sources of investment opportunities, we will not be able to grow our investment portfolio. In addition, individuals with whom the principals of OFS Advisor have relationships are not obligated to provide us with investment opportunities, and, therefore, we can offer no assurance that these relationships will generate investment opportunities for us in the future.

Our financial condition and results of operation will depend on our ability to manage our business effectively.

Our ability to achieve our investment objectives and to grow will depend on our ability to manage our business. This, in turn, will depend on the ability of the Advisor Investment Committees to identify, invest in and monitor companies that meet our investment criteria. Achieving our investment objectives on a cost-effective basis will depend upon the Advisor Investment Committees’ ability to execute our investment process, their ability to provide competent, attentive and efficient services to us and, to a lesser extent, our access to financing on acceptable terms. OFS Advisor has substantial responsibilities under the Investment Advisory Agreement. OFS Advisor’s senior professionals and other personnel of OFS Advisor’s affiliates, including OFSC, may be called upon to provide managerial assistance to our portfolio companies. These activities may distract them or slow our rate of investment. Any failure to manage our business and our future growth effectively could have a material adverse effect on our business, financial condition and results of operations.

To the extent PIK interest and PIK dividends constitute a portion of our income, we will be required to include such income in taxable and accounting income prior to receipt of cash representing such income.

Our investments may include contractual PIK interest or PIK dividends, which represents contractual interest or dividends added to a loan balance or equity security and are due at the end of such loan’s or equity security’s term. To the extent PIK interest and PIK dividends constitute a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash. Such risks include:

•The higher interest or dividend rates of PIK instruments reflect the payment deferral and increased risk associated with these instruments, and PIK instruments often represent a significantly higher risk than non-PIK instruments.

•Even if the accounting conditions for income accrual are met, the borrower could still default when our actual collection is supposed to occur at the maturity of the obligation.

•PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. PIK income may also create uncertainty about the source of our cash distributions.

•For accounting purposes, any cash distributions to stockholders representing PIK income are not treated as coming from paid-in capital. As a result, despite the fact that a distribution representing PIK income could be paid out of amounts invested by our stockholders, the 1940 Act does not require that stockholders be given notice of this fact by reporting it as a return of capital.

•PIK interest or dividends have the effect of generating investment income at a compounding rate, thereby further increasing the incentive fees payable to OFS Advisor. Similarly, all things being equal, the deferral associated with PIK interest or dividends also decreases the investment principal-to-value ratio at a compounding rate.

A significant amount of our portfolio investments are recorded at fair value and OFS Advisor, our “valuation designee,” determines the fair value of our investments in good faith pursuant to Rule 2a-5 under the 1940 Act. As a result, there will be uncertainty as to the value of our portfolio investments and the participation of OFS Advisor’s professionals in our valuation process could result in a conflict of interest.

Many of our portfolio investments take the form of securities that are not publicly traded and their fair value may not be readily determinable. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act (“Rule 2a-5”), which establishes requirements for good faith determinations of fair value, and addresses both the Board’s and the “valuation designee’s” roles and responsibilities relating to fair valuation. On September 7, 2022, pursuant to Rule 2a-5, our Board designated OFS Advisor, as valuation designee, to perform fair value determinations relating to our investments, for which market quotations are not

readily available. In order for the Board to maintain oversight, OFS Advisor implemented the requirements as prescribed in Rule 2a-5. The determination of fair value and, consequently, the amount of unrealized gains and losses in our portfolio, are, to a significant degree, subjective and dependent on a valuation process undertaken by OFS Advisor and overseen by our Board. Valuation of certain investments will also be based, in part, upon third-party valuation models which take into account various unobservable inputs.

A majority of our investments are classified as Level 3 under ASC Topic 820. This means that our portfolio valuations are based on unobservable inputs and assumptions about how market participants would price the asset or liability in question. Inputs into the determination of fair value of our portfolio investments require significant management judgment and estimation. Even if observable market data is available, such information may be the result of consensus pricing information or broker quotes, which include a disclaimer that the broker would not be held to such a price in an actual transaction. The non-binding nature of consensus pricing and/or quotes accompanied by disclaimers materially reduces the reliability of such information. We presently retain the services of independent service providers to prepare the valuation of the majority of these securities.

Certain factors that may be considered in determining the fair value of our investments include third-party yield benchmarks and comparison to publicly traded securities, including such factors as yield, maturity and measures of credit quality, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and cash flow, the markets in which the portfolio company does business and other relevant factors. The models, information and/or underlying assumptions utilized by OFS Advisor will not always allow OFS Advisor to correctly capture the fair value of an asset. Because such valuations, and particularly valuations of securities that are not publicly traded, like those we hold, are inherently uncertain, they may fluctuate materially over short periods of time and may be based on estimates. OFS Advisor’s determinations of fair value may differ materially from the values that would have been used if an active public market for these securities existed. OFS Advisor’s determinations of the fair value of our investments have a material impact on our net earnings through the recording of unrealized appreciation or depreciation of investments and may cause our NAV on a given date to understate or overstate, possibly materially, the value that we may ultimately realize on one or more of our investments.

The participation of OFS Advisor’s professionals in our valuation process could also result in a conflict of interest since OFS Advisor’s base management fee is based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity).

We may finance our investments with borrowed money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us.

The use of leverage magnifies the potential for gain or loss on amounts invested. The use of leverage is generally considered a speculative investment technique and increases the risks associated with investing in our securities. We may pledge up to 100% of our assets and may grant a security interest in all of our assets, other than assets held in OFSCC-FS, under the terms of any debt instruments we may enter into with lenders. In addition, under the terms of any credit facility or other debt instrument we enter into, we are likely to be required by its terms to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. If the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged, thereby magnifying losses or eliminating our equity stake in a leveraged investment. Similarly, any decrease in our revenue or income will cause our net income to decline more sharply than it would have, had we not borrowed. Such a decline would also negatively affect our ability to make dividend payments on our common stock or preferred stock, as applicable. Our ability to service our debt will depend largely on our financial performance and will be subject to prevailing economic conditions and competitive pressures. Moreover, because the base management fee payable to OFS Advisor is payable based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity), OFS Advisor has a financial incentive to cause us to incur leverage which may not be consistent with our stockholders’ interests. In addition, our common stockholders will bear the burden of any increase in our expenses as a result of our use of leverage, including interest expenses and any increase in the base management fee payable to OFS Advisor.

On May 3, 2018, the Board, including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the Board, approved the application of a reduced 150% asset coverage ratio; therefore, provided certain conditions are met, we became subject to the reduced asset coverage ratio as of May 3, 2019. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.” As of December 31, 2025, our asset coverage ratio was 156%.

The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.


	Assumed Return on Our Portfolio (Net of Expenses)
Assumed Return on Portfolio	(10)%	(5)%	0%	5%	10%
Corresponding return to common stockholder(1)	(39.3)%	(25.5)%	(11.6)%	2.3%	16.2%

(1) Assumes $342.0 million in investments at fair value, $220.5 million in outstanding debt, $123.2 million in net assets, and an average cost of funds of 6.47% as of December 31, 2025. Our investment portfolio must experience an annual return of 4.17% at least to cover interest payments on the outstanding debt.

This example is for illustrative purposes only, and actual interest rates on and the amount of our borrowings are likely to fluctuate. See “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Borrowings” for additional information.

Insufficient cash flows may increase our risk of default of our debt obligations, including under our Unsecured Notes, our Natixis Facility and our Banc of California Credit Facility.

Any default under the agreements governing our indebtedness, including under our Unsecured Notes, our Natixis Facility and our Banc of California Credit Facility, that is not waived and the remedies sought by the holders of such indebtedness could make us unable to pay principal, premium, if any, and interest on our other debt obligations. If we are unable to generate sufficient cash flow and are otherwise unable to obtain funds necessary to meet required payments of principal, premium, if any, and interest on our indebtedness, or if we otherwise fail to comply with the various covenants, including financial and operating covenants, in the instruments governing our indebtedness, we could be in default under the terms of the agreements governing such indebtedness. Our ability to generate sufficient cash flows in the future is, to some extent, subject to general economic, financial, competitive, legislative and regulatory factors as well as other factors that are beyond our control. We cannot assure our stockholders that our business will generate cash flows from operations to meet the payment obligations of our debt obligations under our Unsecured Notes, our Natixis Facility and our Banc of California Credit Facility.

We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.

The 1940 Act generally prohibits a BDC from incurring indebtedness unless, immediately after such borrowing, it has an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of its assets). However, Section 61(a)(2) of the 1940 Act allows a BDC to reduce its asset coverage ratio from 200% to 150% if certain requirements are met, thereby increasing the maximum amount of leverage it may incur.

On May 3, 2018, our Board approved the application of the reduced asset coverage ratio available to us under Section 61(a)(2) of the 1940 Act. As a result, effective May 3, 2019, we were able to increase our leverage up to an amount that reduces our asset coverage ratio from 200% to 150% (i.e., the amount of debt may not exceed 66 2/3% of the value of our assets). Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, our stockholders will experience increased risks of investing in our securities. If the value of our assets increases, then the additional leverage would cause the NAV attributable to our common stock to increase more sharply than it would have had we not increased our leverage. Conversely, if the value of our assets decreases, the additional leverage would cause NAV to decline more sharply than it otherwise would have had we not increased our leverage. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the additional leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not increased our leverage. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique. See “Item 1A. Risk Factors—Risks Related to Our Business and Structure—We may finance our investments with borrowed money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us.”

In addition, the ability of BDCs to increase their leverage will increase the capital available to them and thus intensify competition for the investments that we seek to make. This may negatively impact pricing on the investments that we do make and adversely affect our net investment income and results of operations.

Changes in interest rates will affect our cost of capital and net investment income.

To the extent we borrow money or issue preferred stock to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay dividends on preferred stock and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income in the event we use debt to finance our investments. In periods of elevated interest rates, our cost of funds would increase, which could reduce our net investment income. We may use interest

rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act.

A rise in the general level of interest rates typically leads to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates may result in an increase in the amount of incentive fees payable to OFS Advisor.

We may enter into reverse repurchase agreements, which are another form of leverage.

We may enter into reverse repurchase agreements as part of our management of our temporary investment portfolio. Under a reverse repurchase agreement, we will effectively pledge our assets as collateral to secure a short-term loan. Generally, the other party to the agreement makes the loan in an amount equal to a percentage of the fair value of the pledged collateral. At the maturity of the reverse repurchase agreement, we will be required to repay the loan and correspondingly receive back our collateral. While used as collateral, the assets continue to pay principal and interest which are for our benefit.

Our use of reverse repurchase agreements, if any, involves many of the same risks involved in our use of leverage, as the proceeds from reverse repurchase agreements generally will be invested in additional securities. There is a risk that the market value of the securities acquired in the reverse repurchase agreement may decline below the price of the securities that we have sold but remain obligated to purchase. In addition, there is a risk that the market value of the securities retained by us may decline. If a buyer of securities under a reverse repurchase agreement were to file for bankruptcy or experience insolvency, we may be adversely affected. Also, in entering into reverse repurchase agreements, we would bear the risk of loss to the extent that the proceeds of such agreements at settlement are less than the fair value of the underlying securities being pledged. In addition, due to the interest costs associated with reverse repurchase agreements transactions, our NAV would decline, and, in some cases, we may be worse off than if we had not used such instruments.

Our ability to enter into transactions involving derivatives and financial commitment transactions may be limited.

Under Rule 18f-4, BDCs that use derivatives are subject to a value-at-risk leverage limit, a derivatives risk management program, testing requirements and requirements related to board reporting. These requirements apply unless the BDC qualifies as a “limited derivatives user,” as defined in the rule. Under the rule, a BDC may enter into an unfunded commitment agreement that is not a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has, among other things, a reasonable belief at the time it enters into such an agreement that it will have sufficient cash and cash equivalents to meet all of its obligations under its unfunded commitment agreements as they become due. Collectively, these requirements may limit our ability to use derivatives and/or to enter into certain other financial contracts.

We may in the future determine to fund a portion of our investments with preferred stock, which would magnify the potential for gain or loss and the risks of investing in us in the same way as our borrowings.

Preferred stock is another form of leverage and presents the same risks to our common stockholders as borrowings because the dividends on any preferred stock we issue must be cumulative. Payment of such dividends and repayment of the liquidation preference of such preferred stock must take preference over any dividends or other payments to our common stockholders. Additionally, preferred stockholders are not subject to any of our expenses or losses and are not entitled to participate in any of our income or appreciation in excess of their stated preference.

We operate in a highly competitive market for investment opportunities, which could reduce returns and result in losses.

A number of entities compete with us to make the types of investments that we plan to make. We compete with public and private funds, other BDCs, commercial and investment banks, commercial finance companies and, to the extent they provide an alternative form of financing, private equity firms and hedge funds. Many of our competitors are substantially larger than we are and have considerably greater financial, technical and marketing resources than we do. For example, some of our competitors may have access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than us. Furthermore, many of our competitors are not subject to the regulatory restrictions imposed on us as a BDC under the 1940 Act or the source of income, asset diversification and distribution requirements necessary to maintain our RIC tax treatment. These advantages could allow our competitors to consider a wider variety of investment instruments, establish more extensive relationships and offer better pricing or more flexible structuring than we are able to. The competitive pressures we face may have a material adverse effect on our business, financial condition and results of operations. As a result of this competition, we may not be able to take advantage of attractive investment opportunities or make investments that are consistent with our investment objectives.

With respect to the investments we make, we will not seek to compete primarily on the basis of interest rates we will offer, and we believe that some of our competitors may make loans with interest rates that will be lower than the rates we offer. In the secondary market for acquiring existing loans, we expect to compete generally on the basis of pricing terms. With respect to all investments, we may lose some investment opportunities if we do not match the pricing, terms or structural features offered by our competitors. However, if we do match our competitors’ pricing, terms and structure, we may experience

decreased net interest income, lower yields and an increased risk of credit loss. We may also compete for investment opportunities with OFSAM Holdings and its affiliates or accounts managed by OFSAM Holdings’s affiliates. Although OFS Advisor will allocate opportunities in accordance with its policies and procedures, allocations to such other accounts will reduce the amount and frequency of opportunities available to us and may not align with the best interests of us and our stockholders. Moreover, the performance of any investment will not be known at the time allocation decisions are made.

We may suffer credit losses.

Investment in middle-market companies is highly speculative and involves a high degree of risk of credit loss, and therefore, our securities may not be suitable for someone with a low risk tolerance. These risks are likely to increase during volatile economic periods, such as the recent economic volatility in the United States, Europe and China.

We will be subject to U.S. federal income tax at corporate rates if we are unable to maintain our tax treatment as a RIC.

We have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually, as a RIC under Subchapter M of the Code, but no assurance can be given that we will be able to maintain our RIC status. As a RIC, we are not subject to U.S. federal income tax imposed at corporate rates on our income and capital gains that we timely distribute (or that we are deemed to distribute) to our stockholders. To maintain RIC status under the Code, we must meet certain source-of-income, asset diversification and distribution requirements. The source-of-income requirement will be satisfied if we obtain at least 90% of our gross income for each year from dividends, interest, gains from the sale of securities or similar sources. The asset diversification requirement will be satisfied if we meet certain asset composition requirements at the end of each calendar quarter. Failure to meet those requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because we expect most of our investments to be in illiquid securities, for which there will likely be no active public market, any such dispositions could be made at disadvantageous prices and could result in substantial losses.

We must also meet the Annual Distribution Requirement to qualify for RIC tax treatment. We will be subject, to the extent we use debt financing or preferred stock, to certain asset coverage ratio requirements under the 1940 Act and financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to qualify for tax treatment as a RIC. If we are unable to obtain cash from other sources, we could fail to maintain our qualification for the tax benefits available to RICs and, thus, become subject to U.S. federal income tax.

If we fail to qualify for tax treatment as a RIC for any reason, and certain cure provisions are not applicable, we would become subject to U.S. federal income tax imposed at corporate rates on all of our taxable income (including our net capital gains). The resulting taxes at corporate rates could substantially reduce our net assets, the amount of income available for distribution to stockholders and the amount of our distributions and the amount of funds available for new investments. Such a failure would have a material adverse effect on us and our stockholders. See “Item 1. Business—Material U.S. Federal Income Tax Considerations—Taxation as a RIC.”

Our subsidiaries and portfolio companies may be unable to make distributions to us that will enable us to meet RIC requirements, which could result in the imposition of an entity-level tax.

In order for us to maintain our tax treatment as a RIC and to minimize corporate-level taxes, we are required to distribute, on an annual basis, substantially all of our taxable income, which includes income from our subsidiaries and portfolio companies. Distributions from OFSCC-FS to us are restricted by the terms and conditions of the Natixis Facility. If our subsidiaries and portfolio companies are unable to make distributions to us, this may result in the loss of our RIC tax treatment and a consequent imposition of a corporate-level federal income tax on us.

We may have difficulty paying our required distributions if we recognize income before or without receiving cash representing such income.

For U.S. federal income tax purposes, we will include in income certain amounts that we have not yet received in cash, such as OID or market discount, which may arise if we acquire a debt security at a significant discount to par. Such discounts will be included in income before we receive any corresponding cash payments. We also may be required to include certain other amounts in income that we will not receive in cash. Since, in certain cases, we may recognize income before or without receiving cash representing such income, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain RIC tax treatment under the Code. Accordingly, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forego new investment opportunities for this purpose. If we are unable to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject to U.S. federal income taxes at corporate rates.

In the future, we may choose to pay distributions in our own stock and stockholders may be required to pay tax in excess of the cash they receive.

We distribute taxable distributions that are payable in cash or shares of our common stock at the election of each stockholder. In accordance with guidance issued by the Internal Revenue Service, a publicly traded RIC should generally be eligible to treat a distribution of its own stock as fulfilling its RIC distribution requirements if each stockholder is permitted to elect to receive his or her distribution either in cash or in stock of the RIC (even where there is a limitation on the percentage of the distribution payable in cash, provided that the limitation is at least 20%), subject to the satisfaction of certain guidelines. If too many stockholders elect to receive their distributions in cash, each such stockholder would receive a pro rata share of the total cash to be distributed and would receive the remainder of their distribution in shares of stock. If this and certain other requirements are met, for U.S. federal income tax purposes, the amount of the distribution paid in stock generally will be a taxable distribution in an amount equal to the amount of cash that could have been received instead of stock. If we decide to make any distributions consistent with this guidance that are payable in part in our stock, stockholders receiving such distribution would be required to include the full amount of the distribution (whether received in cash, our stock, or a combination thereof) as ordinary income (or as long-term capital gain to the extent such distribution is properly designated as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock received as a dividend in order to pay this tax, it may be subject to transaction fees (e.g., broker fees or transfer agent fees) and, depending on the market price of our stock at the time of the sale, the sales proceeds may be less than the amount included in income with respect to the dividend. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.

Because we expect to distribute substantially all of our net ordinary income and net realized capital gains to our stockholders, we may need additional capital to finance our growth and such capital may not be available on favorable terms or at all.

We have elected to be taxed for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. If we meet certain requirements, including source of income, asset diversification and distribution requirements, and if we continue to qualify as a BDC, we will continue to qualify for tax treatment as RIC under the Code and will not have to pay U.S. federal income taxes at corporate rates on income we distribute to our stockholders as dividends, allowing us to substantially reduce or eliminate our U.S. federal tax liability at corporate rates. Because we received the approval of our Board, we are generally required to meet a coverage ratio of total assets to total senior securities, which includes all of our borrowings and any preferred stock we may issue in the future, of at least 150% at the time we issue any debt or preferred stock. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.” This requirement limits the amount that we may borrow. Because we will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt or preferred stock and require us to raise additional equity at a time when it may be disadvantageous to do so. We cannot assure investors that debt and equity financing will be available to us on favorable terms, or at all, and debt financings may be restricted by the terms of any of our outstanding borrowings. In addition, as a BDC, we are generally not permitted to issue common stock priced below NAV without stockholder approval. If additional funds are not available to us, we could be forced to curtail or cease new lending and investment activities, and our NAV could decline.

Loss of tax treatment as a RIC would reduce our NAV and distributable income.

We have elected to be treated for U.S. federal income tax purposes, and intend to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, we do not have to pay federal income taxes on our income (including realized gains) that we distribute to our stockholders, provided that we satisfy certain distribution and other requirements. Accordingly, we are not permitted under accounting rules to establish reserves for taxes on our unrealized capital gains. If we fail to qualify for tax treatment as a RIC in any year, to the extent that we had unrealized gains, we would have to establish reserves for taxes, which would reduce our NAV and the amount potentially available for distribution. In addition, if we, as a RIC, were to decide to make a deemed distribution of net realized capital gains and retain the net realized capital gains, we would have to establish appropriate reserves for taxes that we would have to pay on behalf of stockholders. It is possible that establishing reserves for taxes could have a material adverse effect on the value of our common stock.

Our Banc of California Credit Facility contains various covenants and restrictions which, if not complied with, could accelerate our repayment obligations under the Banc of California Credit Facility or limit its use, thereby materially and adversely affecting our liquidity, financial condition, results of operations and ability to pay distributions.

The Banc of California Credit Facility provides us with a senior secured revolving line of credit of up to $25.0 million, with maximum availability equal to 50% of the aggregate outstanding principal amount of eligible loans included in the borrowing base and otherwise specified in the Banc of California Credit Facility. 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 our partnership interest in SBIC I LP. The Banc of California Credit Facility contains customary terms and conditions, including, without limitation, affirmative and negative covenants such as information reporting requirements, a minimum tangible NAV, a minimum quarterly net investment income after incentive fees and a maximum ratio of total liabilities divided by NAV. The Banc of California Credit Facility also contains customary events of default, including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, cross-default to other indebtedness, bankruptcy, change in investment advisor, and the occurrence of a material adverse change in our financial condition. The Banc of California Credit Facility permits us to fund additional investments as long as we are within the conditions set out in the Banc of California Credit Facility. Our continued compliance with these covenants depends on many factors, some of which are beyond our control, and there are no assurances that we will continue to comply with these covenants. Our failure to satisfy these covenants could result in foreclosure by our lender, which would accelerate our repayment obligations under the Banc of California Credit Facility and thereby have a material adverse effect on our business, liquidity, financial condition, results of operations and ability to pay distributions to our stockholders. As of December 31, 2025, the Banc of California Credit Facility had an outstanding balance of $4.5 million and an unused commitment of $20.5 million, subject to a borrowing base and other covenants.

Adverse developments in the credit markets may impair our ability to secure debt financing.

Economic recessions or downturns may result in a prolonged period of market illiquidity, which could have a material adverse effect on our business, financial condition and results of operations. In the event of a market downturn or recession, it may be difficult for us to obtain desired financing to finance the growth of our investments on acceptable economic terms, or at all.

Previous economic downturns have resulted in, among other things, increased draws by borrowers on revolving lines of credit and increased requests by borrowers for amendments, modifications and waivers of their credit agreements to avoid default or changed payment terms, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans. In addition, the duration and effectiveness of responsive measures implemented by governments and central banks to slow the effects of economic downturns cannot be predicted. The commencement, continuation, or cessation of government and central bank policies and economic stimulus programs, including changes in monetary policy involving interest rate adjustments or governmental policies, may contribute to the development of, or result in an increase in, market volatility, illiquidity and other adverse effects that could negatively impact the credit markets and us.

If we are unable to consummate credit facilities on commercially reasonable terms, our liquidity may be reduced significantly. If we are unable to repay amounts outstanding under any facility we may enter into and are declared in default or are unable to renew or refinance any such facility, it would limit our ability to initiate significant originations or to operate our business in the normal course. These situations may arise due to circumstances that we may be unable to control, such as inaccessibility of the credit markets, a severe decline in the value of the U.S. dollar, an economic downturn or an operational problem that affects third parties or us, and could materially damage our business. Moreover, we are unable to predict when economic and market conditions may be favorable or if adverse conditions in particular sectors of the financial markets could adversely impact our business.

Ongoing developments in the banking sector could materially affect the success of our activities and investments.

Ongoing developments involving insolvency, closure, receivership or other financial distress or difficulty and related events experienced by certain U.S. and non-U.S. banks (each, a “Distress Event”), have generally caused uncertainty and fear of instability in the global financial system. In addition, eroding market sentiment and speculation of potential future Distress Events have caused other financial institutions — in particular smaller and/or regional banks — to experience volatile stock prices and significant losses in their equity value, and there is concern that depositors at these institutions have withdrawn, or may withdraw in the future, significant sums from their accounts at these institutions, potentially triggering the occurrence of additional Distress Events. Notwithstanding intervention by certain U.S. and non-U.S. governmental agencies to protect the uninsured depositors of banks that have recently experienced Distress Events, there is no guarantee that depositors (which depositors could include us and/or portfolio companies) that have assets in excess of the Federal Deposit Insurance Corporation insurance limit on deposit with a financial institution that experiences a Distress Event will be made whole or, even if made whole, that such deposits will become available for withdrawal or other usage on a timely basis. For example, we regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit Insurance Corporation insurance

limit. If a depository institution fails to return these deposits or is otherwise subject to adverse conditions in the financial or credit markets, our access to invested cash or cash equivalents could be limited which would adversely impact our results of operations or financial condition.

There is a risk that other banks, other lenders, or other financial institutions (including such financial institutions in their respective capacities as brokers, hedging counterparties, custodians, loan servicers, administrators, intermediary or other service providers) may be similarly impacted, and it is uncertain what steps (if any) government or other regulators may take in such circumstances. As a consequence, for example, we may be delayed or prevented from accessing funds or other assets, making any required payments under debt or other contractual obligations, paying distributions or pursuing key strategic initiatives. In addition, such banks’ or other financial institutions’ Distress Events and/or attendant instability could adversely affect, in certain circumstances, the ability of co-lenders or other parties to undertake and/or execute transactions with us, which in turn may result in fewer investment opportunities being made available to us or being consummated by us, result in shortfalls or defaults under existing investments, or impact our ability to provide additional follow-on support to portfolio companies.

In addition, in the event that a financial institution that provides credit facilities and/or other financing to us and/or one or more of our portfolio companies closes or experiences any other Distress Event, there can be no assurance that such financial institution will honor its obligations to provide such financing or that we or such portfolio company will be able to secure replacement financing or credit accommodations at all or on similar terms, or be able to do so without suffering delays or incurring losses or significant additional expenses. Similarly, if a Distress Event leads to a loss of access to a financial institution’s other services (in addition to financing and other credit accommodations), it is also possible that we will incur additional expenses or delays in putting in place alternative arrangements or that such alternative arrangements will be less favorable than those formerly in place (with respect to economic terms, service levels, access to capital, or otherwise). We are subject to similar risks if a financial institution utilized by our investors or by vendors, brokers, dealers, custodians, loan and portfolio servicers, hedging and other service providers or other counterparties becomes subject to a Distress Event, which could have a material adverse effect on us.

Uncertainty caused by recent bank failures — and general concern regarding the financial health and outlook for other financial institutions — could have an overall negative effect on banking systems and financial markets generally. These recent developments may also have other implications for broader economic and monetary policy, including interest rate policy. For the foregoing reasons, there can be no assurances that conditions in the banking sector and in global financial markets will not worsen and/or adversely affect us or our financial performance.

Changes in the laws or regulations governing our business, or changes in the interpretations thereof, and any failure by us to comply with these laws or regulations, could have a material adverse effect on our, and our portfolio companies’ business, results of operations or financial condition.

We and our portfolio companies are subject to regulation by laws at the U.S. federal, state and local levels, including those that govern BDCs, RICs, or non-depository commercial lenders. These laws and regulations, including applicable accounting standards and related interpretations, may change from time to time, including as the result of directives from the U.S. President and other executive branch officials and new laws, regulations, accounting standards and interpretations may also come into effect. A single political party currently controls both the executive and legislative branches of government, which increases the likelihood that legislation may be adopted that could significantly affect the regulation of U.S. financial markets. Regulatory changes could result in greater competition from banks and other lenders with whom we compete for lending and other investment opportunities. The United States may also potentially withdraw from or renegotiate various trade agreements and take other actions that would change current trade policies of the United States. This could impose greater costs on all sectors and on financial services companies in particular and could have a material adverse effect on our business.

We are also subject to judicial and administrative decisions that affect our operations, including our loan originations, maximum interest rates, fees and other charges, disclosures to portfolio companies, the terms of secured transactions, collection and foreclosure procedures and other trade practices. If these laws, regulations or decisions change, or if we expand our business into jurisdictions that have adopted more stringent requirements than those in which we currently conduct business, we may have to incur significant expenses in order to comply, or we might have to restrict our operations. If we do not comply with applicable laws, regulations and decisions, we may lose licenses needed for the conduct of our business and may be subject to civil fines and criminal penalties.

In addition, in June 2024, the U.S. Supreme Court reversed its longstanding approach under the Chevron doctrine, which provided for judicial deference to regulatory agencies. As a result of this decision, there may be increased challenges to existing agency regulations and it is unclear how lower courts will apply the decision in the context of other regulatory schemes without more specific guidance from the U.S. Supreme Court. For example, the decision could significantly impact regulatory constructs relating to consumer protection, advertising, privacy, artificial intelligence, anti-corruption and anti-money laundering practices and other areas applicable to our business. Any such regulatory developments could result in uncertainty

about and changes in the ways such regulations apply to us and our portfolio companies, and may require additional resources to ensure our continued compliance. We cannot predict which, if any, of these actions will be taken or, if taken, their effect on the financial stability of the United States. Such actions could have a significant adverse effect on our business, financial condition and results of operations.

Over the last several years, there has been an increase in regulatory attention to the extension of credit outside of the traditional banking sector, raising the possibility that some portion of the non-bank financial sector will be subject to new or different regulation. While it cannot be known at this time whether these regulations will be implemented or what form they will take, increased regulation of non-bank credit extension could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect our business.

We cannot predict how new tax legislation will affect us, our investments, or our stockholders, and any such legislation could adversely affect our business.

Legislative or other actions relating to taxes, including changes in how existing tax laws are interpreted or enforced, could have a negative effect on us. The laws dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. The effect of any changes implemented by the current U.S. presidential administration, Congress or taxing authorities could be complex and far-reaching, and these laws and regulations and any future laws or regulations or changes thereto could negatively impact our operations, cash flows or financial condition, impose additional costs on us, intensify the regulatory supervision of us or otherwise adversely affect our business, financial condition and results of operations. For example, on July 4, 2025, the United States enacted “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” (the “Act”), also known as the “One Big Beautiful Bill,” which includes significant amendments to the Code. The Act did not have a material impact on our consolidated financial statements. We also cannot predict with certainty how any future changes in the tax laws might affect us, our investors or our portfolio investments, but new legislation and any U.S. Treasury regulations, administrative interpretations or court decisions interpreting such legislation could significantly and negatively affect our ability to qualify for tax treatment as a RIC or the U.S. federal income tax consequences to us and our investors of such qualification, or could have other adverse consequences. Investors are urged to consult with their tax advisor regarding tax legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our common stock.

Changes to U.S. tariff and import/export regulations may have a negative effect on our portfolio companies and, in turn, harm us.

The United States has recently enacted, and may continue to enact, significant new tariffs and U.S. trade policy with the rest of the world remains uncertain with respect to taxes, tariffs and import/export regulations, especially in response to the current U.S. presidential administration and Congress. Among other possible changes, changes in U.S. administrative policy may lead to significant increases in tariffs for imported goods. These developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors could depress economic activity and restrict our portfolio companies’ access to suppliers or customers and have a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us. Although the Supreme Court recently invalidated the tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”), certain tariff rates and obligations established through trade agreements that were negotiated during active IEEPA tariffs remain in effect, and the current administration has announced widely applicable tariffs pursuant to the Trade Act of 1974, effective February 24, 2026. The administration has indicated that it will continue seeking to implement tariffs through other statutory authorities as well. The scope of the Supreme Court's decision may create market uncertainty as it relates to the availability of refunds for prior tariffs and the imposition of new tariffs to replace those imposed under IEEPA.

The effect of global climate change or the legal, regulatory or market responses to such change may impact the operations of our portfolio companies.

There may be evidence of global climate change and the long-term effects of it are difficult to predict. Climate change creates physical and financial risk and some of our portfolio companies may be adversely affected by climate change. For example, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies’ financial condition, through decreased revenues. Extreme weather conditions in general require more systems backup, adding to costs, and can contribute to increased systems stress, including service interruptions.

Regulatory and voluntary initiatives launched by international, federal, state, and regional policymakers and regulatory authorities as well as private actors seeking to reduce greenhouse gas emissions may expose our investments to other types of transition risks, such as: (i) political and policy risks (including changing regulatory incentives, and legal requirements, including with respect to greenhouse gas emissions, that could result in increased costs or changes in business operations); (ii) regulatory and litigation risks (including changing legal requirements that could result in increased permitting, tax and compliance costs, changes in business operations, or the discontinuance of certain operations, and litigation seeking monetary or injunctive relief from impacts related to climate change); (iii) technology and market risks (including a declining market for investments in industries seen as greenhouse gas intensive or less effective than alternatives in reducing greenhouse gas emissions); (iv) business trend risks (including the increased attention to environmental, social and governance (“ESG”) considerations by our investors in their investment decisions); and (v) potential harm to our reputation if our stockholders believe that we are not adequately or appropriately responding to climate change and/or climate risk management, including through the way in which we operate our business, the composition of our portfolio, our new investments or the decisions we make to continue to conduct or change our activities in response to climate change considerations.

Our Board may change our investment objectives, operating policies and strategies without prior notice or stockholder approval.

Our Board has the authority to modify or waive certain of our operating policies and strategies without prior notice and without stockholder approval, except as provided otherwise in the 1940 Act. However, absent stockholder approval, we may not change the nature of our business so as to cease to be, or withdraw our election as, a BDC. Under Delaware law, we also cannot be dissolved without prior stockholder approval except by judicial action. We cannot predict the effect any changes to our current operating policies and strategies would have on our business, operating results and the price value of our common stock. Nevertheless, any such changes could adversely affect our business and impair our ability to make distributions.

Efforts to comply with the Sarbanes-Oxley Act involve significant expenditures, and non-compliance with Section 404 of the Sarbanes-Oxley Act, including a failure to maintain effective internal controls over financial reporting in accordance therewith, may adversely affect us and the market price of our securities.

Under current SEC rules, we are required to report on our internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act and related rules and regulations of the SEC. We are required to review our internal control over financial reporting on an annual basis, and evaluate and disclose changes in our internal control over financial reporting on a quarterly and annual basis.

As a result, we expect to continue to incur additional expenses that may negatively impact our financial performance and our ability to make distributions. This process also results in a diversion of management’s time and attention. In the event that we are unable to maintain compliance with Section 404 of the Sarbanes-Oxley Act and related rules, we and the market price of our securities may be adversely affected.

Risks Related to OFS Advisor and its Affiliates

We have potential conflicts of interest related to obligations that OFS Advisor or its affiliates may have to other clients.

OFS Advisor and its affiliates manage other assets, including those of other BDCs, registered investment companies, separately managed accounts, accounts for which OFS Advisor or its affiliates may serve as a sub-advisor and CLOs, and may manage the assets of other entities in the future. These other funds and entities may have similar or overlapping investment strategies. Our executive officers, directors and members of the Advisor Investment Committees serve as officers, directors or principals of entities that operate in the same or a related line of business as we do, or of investment funds or other investment vehicles managed by OFS Advisor or its affiliates. Accordingly, they may have obligations to investors in those entities, the fulfillment of which might not be in our or our stockholders’ best interests or may require them to devote time to services for other entities, which could interfere with the time available to provide services to us. For example, OFS Advisor currently serves as the investment adviser to HPCI, a non-traded BDC that invests in senior secured loans of middle-market companies in the United States, similar to those we target for investment, including first lien, second lien and unitranche loans as well as subordinated loans and, to a lesser extent, common stock, preferred stock and other equity securities. OFS Advisor also serves as the investment adviser to OCCI, a closed-end management investment company that primarily invests in CLO debt and subordinated securities. Therefore, many investment opportunities will satisfy the investment criteria for both HPCI and us and, in certain instances, investment opportunities may be appropriate for OCCI and us. HPCI operates as a distinct and separate entity and any investment in our common stock will not be an investment in HPCI. In addition, our executive officers serve in substantially similar capacities for HPCI and OCCI and certain of our independent directors serve in a similar capacity for HPCI or OCCI. Similarly, OFS Advisor and/or its affiliates may have other clients with, similar, different or competing investment objectives. In serving in these multiple capacities, our executive officers and directors, OFS Advisor and/or its affiliates, and members of the Advisor Investment Committees may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the best interests of us or our stockholders.

OFS Advisor and OFSAM Holdings have procedures and policies in place designed to manage the potential conflicts of interest between OFS Advisor’s fiduciary obligations to us and its fiduciary obligations to other clients. For example, such policies and procedures are designed to ensure that investment opportunities are allocated in a fair and equitable manner among us and other clients of OFS Advisor. An investment opportunity that is suitable for clients of OFS Advisor may not be capable of being shared among some or all of such clients due to the limited scale of the opportunity or other factors, including regulatory restrictions imposed by the 1940 Act.

There can be no assurance that we will be able to participate in all investment opportunities that are suitable for us. OFS Advisor will seek to allocate investment opportunities among eligible accounts in a manner that is fair and equitable over time and consistent with its allocation policy.

We have potential conflicts of interest related to the purchases and sales that OFS Advisor makes on our behalf and/or on behalf of Affiliated Accounts.

Conflicts may arise when we make an investment in conjunction with an investment being made by Affiliated Accounts, or in a transaction where another Affiliated Account has already made an investment. Investment opportunities are, from time to time, appropriate for more than one Affiliated Account in the same, different or overlapping securities of a portfolio company’s capital structure. Conflicts arise in determining the terms of investments, particularly where these Affiliated Accounts may invest in different types of securities in a single portfolio company. Questions arise as to whether payment obligations and covenants should be enforced, modified or waived, or whether debt should be restructured, modified or refinanced.

We may invest in debt and other securities of companies in which other Affiliated Accounts hold those same securities or different securities, including equity securities. In the event that we make such investments, our interests will at times conflict with the interests of such other Affiliated Accounts, particularly in circumstances where the underlying company is facing financial distress. Decisions about what action should be taken, particularly in troubled situations, raise conflicts of interest, including, among other things, whether or not to enforce claims, whether or not to advocate or initiate a restructuring or liquidation inside or outside of bankruptcy, and the terms of any work-out or restructuring. The involvement of multiple Affiliated Accounts at both the equity and debt levels could inhibit strategic information exchanges among fellow creditors, including among us and other Affiliated Accounts. In certain circumstances, we or other Affiliated Accounts may be prohibited from exercising voting or other rights and may be subject to claims by other creditors with respect to the subordination of their interests.

For example, in the event that one Affiliated Account has a controlling or significantly influential position in a portfolio company, that Affiliated Account may have the ability to elect some or all of the board of directors of such a portfolio company, thereby controlling its policies and operations, including the appointment of management, future issuances of securities, payment of dividends, incurrence of debt and entering into extraordinary transactions. In addition, a controlling Affiliated Account is likely to have the ability to determine, or influence, the outcome of operational matters and to cause, or prevent, a change in control of such a portfolio company. Such management and operational decisions may, at times, be in direct conflict with us or other Affiliated Accounts that have invested in the same portfolio company that do not have the same level of control or influence over the portfolio company.

If additional capital is necessary as a result of financial or other difficulties, or to finance growth or other opportunities, we or other Affiliated Accounts may or may not provide such additional capital, and if provided, each Affiliated Account will supply such additional capital in such amounts, if any, as determined by OFS Advisor and/or OFS Advisor’s affiliates. Investments by more than one Affiliated Account in a portfolio company also raises the risk of using assets of an Affiliated Account of OFS Advisor to support positions taken by other Affiliated Accounts, or that a client may remain passive in a situation in which it is entitled to vote. In addition, there may be differences in timing of entry into, or exit from, a portfolio company for reasons such as differences in strategy, existing portfolio or liquidity needs, different Affiliated Account mandates or fund differences, or different securities being held. These variations in timing may be detrimental to us.

The application of our investment mandate as compared to investment mandates of other Affiliated Accounts and the policies and procedures of OFS Advisor and OFS Advisor's affiliates are expected to vary based on the particular facts and circumstances surrounding each investment by two or more Affiliated Accounts, in particular when those Affiliated Accounts are in different classes of an issuer’s capital structure (as well as across multiple issuers or borrowers within the same overall capital structure) and, as such, there may be a degree of variation and potential inconsistencies in the manner in which potential or actual conflicts are addressed.

Our independent directors may face conflicts of interest related to their obligations to the Affiliated Funds for which they also serve as independent directors.

All of the independent directors of our Board also serve as independent directors of the board of directors of HPCI or OCCI, each of which is an Affiliated Fund managed by OFS Advisor. In their capacities as directors for an Affiliated Fund

board, the independent directors have a duty to make decisions on behalf of that Affiliated Fund that are in the best interests of that Affiliated Fund and its stockholders. Accordingly, our independent directors may face conflicts of interest when making a decision on behalf of one Affiliated Fund that may not be in the best interest of the other Affiliated Fund(s). For example, the SEC has granted exemptive relief to us, OFS Advisor, HPCI, OCCI, and certain other of our affiliates to co-invest in certain transactions that would otherwise be prohibited by the 1940 Act. In accordance with that relief, the independent directors must make certain findings on behalf of each Affiliated Fund with respect to initial co-investment transactions, including that the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Affiliated Fund and its stockholders and do not involve overreaching in respect of the Affiliated Fund or its stockholders on the part of any of the other participants in the proposed transaction. Under such circumstances, the independent directors may face conflicts of interest when making these determinations on behalf of us, HPCI and OCCI.

Members of the Advisor Investment Committees, OFS Advisor or its affiliates may, from time to time, possess material non-public information, limiting our investment discretion.

OFSC senior professionals and members of the Advisor Investment Committees may serve as directors of, or in a similar capacity with, companies in which we invest, the securities of which are purchased or sold on our behalf. In the event that material non-public information is obtained with respect to such companies, or we become subject to trading restrictions under the internal trading policies of those companies or as a result of applicable law or regulations, we could be prohibited for a period of time from purchasing or selling the securities of such companies, and this prohibition may have an adverse effect on us and our stockholders.

The valuation process for certain of our portfolio holdings may create a conflict of interest.

Many of our portfolio investments are made in the form of securities that are not publicly traded. The fair value of securities and other investments that are not publicly traded may not be readily determinable. On September 7, 2022, pursuant to Rule 2a-5, our Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to our investments. As valuation designee, OFS Advisor determines the fair value of our portfolio investments in good faith, and, as a result, there may be uncertainty as to the value of our portfolio investments. In addition, certain members of our Board who are not independent directors have a substantial indirect pecuniary interest in OFS Advisor. The participation of OFS Advisor in our valuation process, and the indirect pecuniary interest in OFS Advisor by those members of our Board, could result in a conflict of interest since OFS Advisor’s base management fee is based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity).

We may have additional conflicts related to other arrangements with OFS Advisor or its affiliates.

We have entered into a license agreement with OFSAM under which OFSAM has granted us a non-exclusive, royalty-free license to use the name “OFS.” See “Item 1. Business—Management and Other Agreements—License Agreement.” In addition, we rent office space from a subsidiary of OFSAM and pay that subsidiary our allocable portion of overhead and other expenses incurred in performing its obligations under the Administration Agreement, such as rent and our allocable portion of the cost of our officers, including our chief executive officer, chief financial officer and chief compliance officer. This creates conflicts of interest that our Board must monitor.

The Investment Advisory Agreement with OFS Advisor and the Administration Agreement with OFS Services were not negotiated on an arm’s length basis and may not be as favorable to us as if they had been negotiated with an unaffiliated third party.

The Investment Advisory Agreement and the Administration Agreement were negotiated between related parties. Consequently, their terms, including fees payable to OFS Advisor, may not be as favorable to us as if they had been negotiated with an unaffiliated third party. In addition, we could choose not to enforce, or to enforce less vigorously, our rights and remedies under these agreements because of our desire to maintain our ongoing relationship with OFS Advisor, OFS Services and their respective affiliates. Any such decision, however, would breach our fiduciary obligations to our stockholders.

Our ability to enter into transactions with our affiliates is restricted, which may limit the scope of investments available to us.

BDCs generally are prohibited under the 1940 Act from knowingly participating in certain transactions with their affiliates without the prior approval of the SEC. Those transactions include purchases and sales, and so-called “joint” transactions, in which a registered investment company and one or more of its affiliates engage in certain types of profit-making activities. Any person that owns, directly or indirectly, five percent or more of a registered investment company’s outstanding voting securities will be considered an affiliate of the registered investment company for purposes of the 1940 Act, and a BDC generally is prohibited from engaging in purchases or sales of assets or joint transactions with such affiliates, absent the prior approval of the SEC. Additionally, without the approval of the SEC, a registered investment company is prohibited from

engaging in purchases or sales of assets or joint transactions with the registered investment company’s officers, directors, and employees, and advisor (and its affiliates).

BDCs may, however, invest alongside certain affiliates in certain circumstances where doing so is consistent with current law and SEC staff interpretations. For example, a BDC may invest alongside such affiliates consistent with guidance promulgated by the SEC staff permitting the registered investment company and such other accounts to purchase interests in privately placed securities so long as certain conditions are met, including that the BDC’s advisor, acting on the registered investment company’s behalf and on behalf of other clients, negotiates no term other than price. Co-investment with such other accounts is not permitted or appropriate under this guidance when there is an opportunity to invest in different securities of the same issuer or where the different investments could be expected to result in a conflict between the BDC’s interests and those of other accounts.

On August 4, 2020, we received the Order from the SEC, which superseded our prior co-investment exemptive order issued on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions. The Order permits us to co-invest in portfolio companies with certain other funds managed by OFS Advisor or investment advisers controlling, controlled by, or under common control with OFS Advisor provided we comply with certain conditions. Pursuant to the Order, we are generally permitted to co-invest with such funds if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transactions, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, other affiliates that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

When we invest alongside OFSAM Holdings and its affiliates or their respective other clients, OFS Advisor will, to the extent consistent with applicable law, regulatory guidance, and/or the Order, allocate investment opportunities in accordance with its allocation policy. Under this allocation policy, if two or more investment vehicles with similar or overlapping investment strategies are in their investment periods, an available opportunity will be allocated based on the provisions governing allocations of such investment opportunities in the relevant organizational, offering or similar documents, if any, for such investment vehicles. In the absence of any such provisions, OFS Advisor will consider the following factors and the weight that should be given with respect to each of these factors:

•investment guidelines and/or restrictions, if any, set forth in the applicable organizational, offering or similar documents for the investment vehicles;

•the status of tax restrictions and tests and other regulatory restrictions and tests;

•risk and return profile of the investment vehicles;

•suitability/priority of a particular investment for the investment vehicles;

•if applicable, the targeted position size of the investment for the investment vehicles;

•level of available cash for investment with respect to the investment vehicles;

•total amount of funds committed to the investment vehicles; and

•the age of the investment vehicles and the remaining term of their respective investment periods, if any.

When not relying on the Order, priority as to opportunities will generally be given to accounts that are in their “ramp-up” period, or the period during which the account has yet to reach sufficient scale such that its investment income covers its operating expenses, over the accounts that are outside their ramp-up period but still within their investment or re-investment periods. However, application of one or more of the factors listed above, or other factors determined to be relevant or appropriate, may result in the allocation of an investment opportunity to a fund no longer in its ramp-up period over a fund that is still within its ramp-up period.

In situations where co-investment with other accounts is not permitted or appropriate, OFS Advisor will need to decide which account will proceed with the investment. The decision by OFS Advisor to allocate an opportunity to another entity could cause us to forego an investment opportunity that we otherwise would have made. These restrictions, and similar

restrictions that limit our ability to transact business with our officers or directors or their affiliates, may limit the scope of investment opportunities that would otherwise be available to us.

Our base management fee may induce OFS Advisor to cause us to incur leverage.

Our base management fee is payable based upon our total assets, other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity. This fee structure may encourage OFS Advisor to cause us to borrow money to finance additional investments. The utilization of higher (or additional) leverage may increase the likelihood of default, which would disfavor holders of our common stock. Given the subjective nature of the investment decisions made by OFS Advisor on our behalf, our Board may not be able to monitor this potential conflict of interest effectively.

Our incentive fee may induce OFS Advisor to make certain investments, including speculative investments.

The incentive fee payable by us to OFS Advisor may create an incentive for OFS Advisor to make investments on our behalf that are riskier or more speculative than would be the case in the absence of such compensation arrangement. The way in which the incentive fee payable to OFS Advisor is determined may encourage OFS Advisor to use leverage to increase the return on our investments. Under certain circumstances, the use of leverage may increase the likelihood of default, which would disfavor our stockholders.

OFS Advisor receives an incentive fee based, in part, upon net capital gains realized on our investments. Unlike that portion of the incentive fee based on income, there is no hurdle rate applicable to the portion of the incentive fee based on net capital gains. As a result, OFS Advisor may have a tendency to invest more capital in investments that are likely to result in capital gains as compared to income producing securities. Such a practice could result in our investing in more speculative securities than would otherwise be the case, which could result in higher investment losses, particularly during economic downturns.

We may invest, to the extent permitted by law, in the securities and instruments of other investment companies, including private funds, and, to the extent we so invest, will bear our ratable share of any such investment company’s expenses, including management and performance fees. We remain obligated to pay management and incentive fees to OFS Advisor with respect to the assets invested in the securities and instruments of other investment companies. With respect to each of these investments, each of our stockholders will bear his or her share of the management and incentive fee of OFS Advisor as well as indirectly bearing the management and performance fees and other expenses of any investment companies in which we invest.

Our Board is charged with protecting our interests by monitoring how OFS Advisor addresses these and other conflicts of interest associated with its management services and compensation. While our Board is not expected to review or approve each borrowing or incurrence of leverage, our independent directors will periodically review OFS Advisor’s services and fees. In connection with these reviews, our independent directors will consider whether our fees and expenses (including those related to leverage) remain appropriate.

Our incentive fee structure may create incentives for OFS Advisor that are not fully aligned with the interests of our stockholders.

In the course of our investing activities, we will pay management and incentive fees to OFS Advisor. The base management fee is based on our total assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts and including assets owned by any consolidated entity). As a result, investors in our common stock will invest on a “gross” basis and receive distributions on a “net” basis after expenses, resulting in a lower rate of return than one might achieve through direct investments. Because these fees are based on our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including any assets owned by any consolidated entity), OFS Advisor will benefit when we incur debt or use leverage. Our Board is charged with protecting our interests by monitoring how OFS Advisor addresses these and other conflicts of interest associated with its management services and compensation. While our Board is not expected to review or approve each borrowing or incurrence of leverage, our independent directors will periodically review OFS Advisor’s services and fees as well as its portfolio management decisions and portfolio performance. In connection with these reviews, our independent directors will consider whether our fees and expenses (including those related to leverage) remain appropriate. Nevertheless, as a result of this arrangement, OFS Advisor or its affiliates may from time to time have interests that differ from those of our stockholders, giving rise to potential conflicts.

We may pay an incentive fee on income we do not receive in cash.

The portion of the incentive fee payable to OFS Advisor that relates to our pre-incentive fee net investment income is computed and paid on income that may include interest or other income that has been accrued but not yet received in cash. This fee structure may be considered to involve a conflict of interest for OFS Advisor to the extent that it may encourage OFS Advisor to favor debt financings that provide for deferred interest, rather than current cash payments of interest. OFS Advisor may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the

opportunity to continue to earn the incentive fee even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because OFS Advisor is not obligated to reimburse us for any incentive fees received even if we subsequently incur losses or never receive previously accrued deferred income in cash.

OFS Advisor’s liability is limited under the Investment Advisory Agreement, and we have agreed to indemnify OFS Advisor against certain liabilities, which may lead OFS Advisor to act in a riskier manner on our behalf than it would when acting for its own account.

Under the Investment Advisory Agreement, OFS Advisor will not assume any responsibility to us other than to render the services called for under that agreement, and it will not be responsible for any action of our Board in following or declining to follow OFS Advisor’s advice or recommendations. Under the terms of the Investment Advisory Agreement, OFS Advisor and its affiliates, and its and their respective directors, officers, employees, members, managers, partners and stockholders, will not be liable to us or any subsidiary of ours, or our or their respective directors, officers, employees, members, managers, partners, or stockholders, for acts or omissions performed in accordance with and pursuant to the Investment Advisory Agreement, except those resulting from acts constituting willful misfeasance, bad faith, gross negligence or reckless disregard of such person’s duties under the Investment Advisory Agreement. In addition, we have agreed to indemnify OFS Advisor and its affiliates, and its and their respective directors, officers, employees, members, managers, partners, and stockholders, from and against any claims or liabilities, including reasonable legal fees and other expenses reasonably incurred, arising out of or in connection with our business and operations or any action taken or omitted on our behalf pursuant to authority granted by the Investment Advisory Agreement, except where attributable to willful misfeasance, bad faith, gross negligence or reckless disregard of such person’s duties under the Investment Advisory Agreement. These protections may lead OFS Advisor to act in a riskier manner when acting on our behalf than it would when acting for its own account.

OFS Advisor can resign on 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

OFS Advisor has the right, under the Investment Advisory Agreement, to resign at any time upon not less than 60 days’ written notice, regardless of whether we have found a replacement or not. If OFS Advisor resigns, we may not be able to find a new investment advisor or hire internal management with similar expertise and the ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, and our financial condition, business and results of operations, as well as our ability to pay distributions, are likely to be adversely affected, which may cause the value of our shares to decline. In addition, the coordination of our internal management and investment activities is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise currently provided by OFS Advisor and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objectives may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations.

OFS Services can resign from its role as our Administrator under the Administration Agreement, and we may not be able to find a suitable replacement, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.

OFS Services has the right to resign under the Administration Agreement, regardless of whether we have found a replacement or not. If OFS Services resigns, we may not be able to find a new administrator or hire internal management with similar expertise and the ability to provide the same or equivalent services on acceptable terms, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, and our financial condition, business and results of operations, as well as our ability to pay distributions, are likely to be adversely affected, which may cause the value of our shares to decline. In addition, the coordination of our internal management and administrative activities is likely to suffer if we are unable to identify and reach an agreement with a service provider or individuals with the expertise currently provided by OFS Services. Even if we are able to retain a comparable service provider or individuals to perform such services, whether internal or external, their integration into our business and lack of familiarity with our investment objectives may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations.

Risks Related to BDCs

Regulations governing our operation as a BDC affect our ability to and the way in which we raise additional capital. As a BDC, we will need to raise additional capital, which will expose us to risks, including the typical risks associated with leverage.

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as “senior securities,” up to the maximum amount permitted by the 1940 Act. Under the provisions of the 1940 Act, as a BDC, we are permitted to issue senior securities only to the extent that, after each issuance of senior securities, our asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets, less all liabilities and indebtedness not represented by senior securities. If the value of our assets declines, we may be unable to satisfy this test. In that circumstance, we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when such sales may be disadvantageous. In addition, any amounts that we use to service our indebtedness would not be available for distributions to our common stockholders. If we issue senior securities, we will be exposed to the typical risks associated with leverage, including an increased risk of loss.

On May 3, 2018, the Board, including a “required majority” (as such term is defined in section 57(o) of the 1940 Act) of the Board, approved the application of a reduced 150% asset coverage ratio and, as a result, the minimum asset coverage ratio applicable to us was decreased from 200% to 150% effective May 3, 2019. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur.”

As of December 31, 2025, we had $220.5 million of debt outstanding. Our ability to incur additional debt while continuing to remain in compliance with the asset coverage test will be limited. We may seek an additional credit facility to finance investments or to support working capital requirements. There can be no assurance that we will be able to obtain such financing on favorable terms or at all.

If we issue preferred stock, the preferred stock would rank “senior” to common stock in our capital structure, preferred stockholders would have separate voting rights on certain matters and might have other rights, preferences or privileges more favorable than those of our common stockholders, and the issuance of preferred stock could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our common stock or otherwise be in our stockholders’ best interest. Holders of our common stock will directly or indirectly bear all of the costs associated with offering and servicing any preferred stock that we issue. In addition, any interests of preferred stockholders may not necessarily align with the interests of holders of our common stock and the rights of holders of shares of preferred stock to receive dividends would be senior to those of holders of shares of our common stock. We are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current NAV per share of our common stock if our Board determines that such sale is in the best interests of us and our stockholders, and if our stockholders approve any such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of such securities (less any distributing commission or discount). On July 30, 2025, our stockholders approved a proposal that authorizes us to issue shares of our common stock at a price below our current NAV, subject to certain limitations, for up to 12 months from such approval. If we raise additional funds by issuing common stock or senior securities convertible into, or exchangeable for, our common stock, then the percentage ownership of our stockholders at that time will decrease, and our stockholders might experience dilution.

Our ability to invest in public companies may be limited in certain circumstances.

To maintain our status as a BDC, we are not permitted to acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets (with certain limited exceptions). Subject to certain exceptions for follow-on investments and distressed companies, an investment in an issuer that has outstanding securities listed on a national securities exchange may be treated as a qualifying asset only if such issuer has a common equity market capitalization of less than $250 million at the time of such investment and meets the other specified requirements.

If we do not invest a sufficient portion of our assets in qualifying assets, we could fail to continue to qualify as a BDC or be precluded from investing according to our current business strategy.

As a BDC, we may not acquire any assets other than “qualifying assets” unless, at the time of and after giving effect to such acquisition, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets.

We believe that most of the investments that we may acquire in the future will constitute qualifying assets. However, we may be precluded from investing in what we believe are attractive investments if such investments are not qualifying assets for purposes of the 1940 Act. For example, investments we make in CLO securities are generally made in non-U.S. entities and

thus are deemed to be non-qualifying assets. If a sufficient portion of our assets are not qualifying assets, we could violate the 1940 Act provisions applicable to BDCs. As a result of such violation, specific rules under the 1940 Act could prevent us, for example, from making follow-on investments in existing portfolio companies (which could result in the dilution of our position) or could require us to dispose of investments at inappropriate times in order to come into compliance with the 1940 Act. If we need to dispose of such investments quickly, it could be difficult to dispose of such investments on favorable terms. We may not be able to find a buyer for such investments and, even if we do find a buyer, we may have to sell the investments at a substantial loss. Any such outcomes would have a material adverse effect on our business, financial condition and results of operations.

If we do not maintain our status as a BDC, we would be subject to regulation as a registered closed-end investment company under the 1940 Act. As a registered closed-end fund, we would be subject to substantially more regulatory restrictions under the 1940 Act which would significantly decrease our operating flexibility.

Risks Related to Our Investments

Economic recessions or downturns could impair our portfolio companies and harm our operating results.

Many of our portfolio companies are susceptible to economic slowdowns or recessions and may be unable to repay our loans during these periods. Therefore, our non-performing assets are likely to increase and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions may also decrease the value of collateral securing some of our loans and the value of our equity investments. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions could further increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its assets, which could trigger cross-defaults under other agreements and jeopardize our portfolio company’s ability to meet its obligations under the debt securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, lenders in certain cases can be subject to lender liability claims for actions taken by them when they become too involved in the borrower’s business or exercise control over a borrower. It is possible that we could become subject to a lender liability claim, including as a result of actions taken if we render significant managerial assistance to the borrower. Furthermore, if one of our portfolio companies were to file for bankruptcy protection, even if we have structured our investment as senior secured debt, a bankruptcy court could, depending on the facts and circumstances — including the extent to which we provided managerial assistance to that portfolio company — re-characterize our debt investment and subordinate all or a portion of our claim to those of other creditors.

Our investments in the debt instruments of leveraged portfolio companies may be risky and, due to the significant volatility of such companies, we could lose all or part of our investment in bankruptcy proceedings or otherwise.

Investments in leveraged companies involve a number of significant risks. Leveraged companies in which we invest may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold due to the significant volatility of such companies. Negative developments may be accompanied by deterioration of the value of any collateral and a reduction in the likelihood of our realizing any guarantees that we may have obtained in connection with our investment. Such developments may ultimately result in the leveraged companies in which we invest entering into bankruptcy proceedings, which have a number of inherent risks. Many events in a bankruptcy proceeding are the product of contested matters and adversary proceedings and are beyond the control of creditors. A bankruptcy filing by an issuer may adversely and permanently affect the issuer. If the proceeding is converted to a liquidation, the value of the issuer may not equal the liquidation value that was believed to exist at the time of the investment. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor’s return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective. The administrative costs in connection with a bankruptcy proceeding are frequently high and would be paid out of the debtor’s estate prior to any return to creditors. Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is difficult to estimate the extent of, or even to identify, any contingent claims that might be made. Certain claims that have priority by law (for example, claims for taxes) may be substantial. In addition, our subordinated loans are generally subordinated to senior loans and are generally unsecured, other creditors may rank senior to us in the event of a bankruptcy proceeding.

Our investments in debt instruments may include “covenant-lite” loans. Covenants are contractual restrictions that lenders place on companies to limit the corporate actions a company may pursue. Generally, the loans in which we expect to invest will have financial maintenance covenants, which are used to proactively address materially adverse changes in a

portfolio company’s financial performance. However, we may invest in “covenant-lite” loans. We use the term “covenant-lite” to refer generally to loans that do not have a complete set of financial maintenance covenants. Generally, “covenant-lite” loans provide borrower companies more freedom to negatively impact lenders because their financial covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower’s financial condition. Accordingly, to the extent we invest in “covenant-lite” loans, we may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in or exposure to loans with financial maintenance covenants.

The effects of inflation may adversely affect the business, results of operations and financial condition of our portfolio companies.

Certain of our portfolio companies may operate in industries that have been, or may be, impacted by the effects of persistent or fluctuating inflation. Although U.S. inflation rates have fluctuated in recent periods, they remain above long-term historic levels over the past several decades. Such inflationary pressures have increased the costs of labor, energy and raw materials and have adversely affected consumer spending, economic growth and our portfolio companies’ operations. If such portfolio companies are unable to pass increased costs of their operations to their customers, their operating results could be adversely affected. Such conditions would increase the risk of default on their obligations as a borrower. Portfolio companies with revenue streams that adjust slowly or are unable to adjust to changes in inflation may experience margin compression even if input costs stabilize. In addition, any projected future decreases in our portfolio companies’ operating results due to the effects of inflation could adversely impact the fair value of those investments. Inflationary pressures may also contribute to currency fluctuations and influence monetary policy decisions, which could indirectly affect the fair value of our investments. Any decreases in the fair value of our investments could result in future unrealized losses and therefore reduce our net assets resulting from operations.

Fluctuations in interest rates could have a material adverse effect on our business and that of our portfolio companies.

Fluctuations in interest rates could have a dampening effect on overall economic activity, the financial condition of our portfolio companies and the financial condition of the end customers who ultimately create demand for the capital we supply, all of which could negatively affect our business, financial condition or results of operations. Although the Federal Reserve has signaled the potential for additional federal funds rate cuts, there remains uncertainty around the rate and timing of any such decreases, including as a result of the current U.S. presidential administration. Uncertainty surrounding future Federal Reserve actions may have a material effect on our business, making it particularly difficult for us to obtain financing at attractive rates impacting our ability to execute on our growth strategies or future acquisitions.

Any of our portfolio companies operating in the Health Care and Social Assistance industry are subject to extensive government regulation and certain other risks particular to that industry.

We invest in companies in the Health Care and Social Assistance industry. Our investments in portfolio companies that operate in this sector are subject to significant risks particular to that industry. The laws and rules governing the business of healthcare companies and interpretations of those laws and rules are subject to frequent change. Existing or future laws and rules could force our portfolio companies engaged in healthcare to change how they do business, restrict revenue, increase costs, change reserve levels and change business practices. Healthcare companies often must obtain and maintain regulatory approvals to market many of their products and change prices for certain regulated products. Delays in obtaining or failing to obtain or maintain these approvals could reduce revenue or increase costs. Policy changes on the local, state and federal levels, such as the expansion of the government’s role in the healthcare arena and alternative assessments and tax increases specific to the healthcare industry or healthcare products as part of federal health care reform initiatives, could fundamentally change the dynamics of the healthcare industry. In particular, health insurance reform could have a significant effect on our portfolio companies in this industry, and may force our portfolio companies in this industry to change how they do business. We can give no assurance that our portfolio companies will be able to adapt successfully in response to these changes.

Portfolio companies in the Health Care and Social Assistance industry may also have a limited number of suppliers of necessary components or a limited number of manufacturers for their products, and therefore face a risk of disruption to their manufacturing process if they are unable to find alternative suppliers when needed.

Any of these factors could materially adversely affect the operations of a portfolio company in this industry and, in turn, impair our ability to collect principal and interest payments owed to us in a timely manner.

The documents governing our Broadly Syndicated Loans, the loans to our portfolio companies and the loans underlying our CLO investments may allow for “priming transactions.”

The documents governing our Broadly Syndicated Loans, the loans to our portfolio companies and the loans underlying our CLO investments may allow for “priming transactions,” where majority lenders or debtors can amend the documents to the detriment of other lenders, in order to move collateral, or in order to facilitate capital outflow to other parties/

subsidiaries in a capital structure, any of which may adversely affect our rights and security priority with respect to such loans or result in the loss of all or a significant part of such investment.

Our investments in private and middle-market portfolio companies are generally considered lower credit quality obligations, are generally illiquid, are risky, and we could lose all or part of our investment.

Investments in private and middle-market companies involve a number of significant risks. Generally, little public information exists about these companies, and we rely on the ability of OFS Advisor’s investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make fully informed investment decisions, and we may lose money on our investments. Middle-market companies may have limited financial resources and may be unable to meet their obligations under their debt securities that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of our realizing any guarantees we may have obtained in connection with our investment. Such companies typically have shorter operating histories, narrower product lines and smaller market shares than larger businesses, which tend to render them more vulnerable to competitors’ actions, market conditions and general economic downturns.

Middle-market companies are more likely to be considered lower grade investments, commonly called “junk bonds,” which are either rated below investment grade by one or more nationally-recognized statistical rating agencies at the time of investment, or may be unrated but determined by OFS Advisor to be of comparable quality. Lower grade securities or comparable unrated securities are considered predominantly speculative regarding the issuer’s ability to pay interest and principal, and are susceptible to default or decline in market value due to adverse economic and business developments. The market values for lower grade debt tend to be very volatile and are less liquid than investment grade securities. For these reasons, an investment in the Company is subject to the following specific risks: (i) increased price sensitivity due to a deteriorating economic environment; (ii) greater risk of loss due to default or declining credit quality; (iii) the inability to make interest and/or principal payments due to adverse company-specific events; and (iv) depression of the price and liquidity of lower grade securities if a negative perception of the lower grade debt market develops. This negative perception could last for a significant period of time.

Additionally, middle-market companies are more likely to depend on the management talents and efforts of a small group of persons. Therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on our portfolio companies and, in turn, on us. Middle-market companies may also be parties to litigation and may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence. In addition, our executive officers, directors and OFS Advisor may, in the ordinary course of business, be named as defendants in litigation arising from our investments in middle-market companies.

Investments in equity securities involve a substantial degree of risk.

We have purchased, and may purchase in the future, common stock and other equity securities, including warrants, in various portfolio companies. Although equity securities historically have generated higher average total returns than debt securities over the long term, equity securities may experience more volatility in those returns than debt securities. The equity securities we acquire may fail to appreciate, decline in value or lose all value, and our ability to recover our investment will depend on the portfolio company’s success. Investments in equity securities involve a number of significant risks, including the risk of further dilution in the event the portfolio company issues additional securities or the inability to transfer or sell these positions, which could erode the value of these securities. Investments in preferred securities involve special risks, such as the risk of deferred distributions, illiquidity and limited voting rights.

Our equity ownership in a portfolio company may represent a control investment. Our ability to exit a control investment in a timely manner could result in a realized loss on the investment.

If we obtain a control investment in a portfolio company, our ability to divest ourselves from a debt or equity investment could be restricted due to illiquidity in a private stock, limited trading volume of a public company’s stock, inside information on a company’s performance, insider blackout periods, the governing documents of such an investment or other factors that could prohibit us from disposing of the investment as we would if it were not a control investment. Additionally, we may choose not to take certain actions to protect a debt investment in a control investment portfolio company. As a result, we could experience a decrease in the value of our portfolio company holdings and potentially incur a realized loss on the investment.

Our investments in Structured Finance Securities carry additional risks to the risks associated with investing in private debt.

In addition to the general risks associated with debt securities and structured products discussed herein, CLOs carry additional risks, including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that the

investments in CLOs are subordinate to other classes or tranches thereof; (iv) the potential for spread compression in the underlying loans of the CLO, which could reduce credit enhancement in the CLOs; and (v) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results. CLO equity securities that we may acquire are subordinated to more senior tranches of CLO debt. CLO equity securities are subject to increased risks of default relative to the holders of more senior priority interests in the same securities. In addition, at the time of issuance, CLO equity securities are under-collateralized in that the liabilities of a CLO at inception exceed its total assets. When we invest in a CLO, we may be in a first loss or subordinated position with respect to realized losses on the CLO’s assets. In addition, we may recognize phantom taxable income from our investments in the subordinated tranches of CLOs.

Between the closing date and the effective date of a CLO, the CLO collateral manager will generally expect to purchase additional collateral obligations for the CLO. During this period, the price and availability of these collateral obligations may be adversely affected by a number of market factors, including price volatility and availability of investments suitable for the CLO, which could hamper the ability of the collateral manager to acquire a portfolio of collateral obligations that will satisfy specified concentration limitations and allow the CLO to reach the initial par amount of collateral prior to the effective date. An inability or delay in reaching the target initial par amount of collateral may adversely affect the timing and amount of interest or principal payments received by the holders of the CLO debt securities and distributions of the CLO on equity securities and could result in early redemptions which may cause CLO debt and equity investors to receive less than the face value of their investment.

In addition, the portfolios of certain CLOs in which we may invest may contain “covenant-lite” loans. Accordingly, to the extent we are exposed to “covenant-lite” loans, we may have a greater risk of loss on such investments as compared to investments in, or exposure to, loans with financial maintenance covenants. Separately, we may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting CLO or any other investment we may make. If any of these occur, it could adversely affect our operating results and cash flows.

Our CLO investments will be exposed to leveraged credit risk. If a CLO does not meet certain minimum collateral value ratios and/or interest coverage ratios, primarily due to senior secured loan defaults, then cash flow that otherwise would have been available to pay us distributions may instead be used to redeem any senior notes or to purchase additional senior secured loans, until the ratios again exceed the minimum required levels or senior notes are repaid in full.

Our investments in Structured Finance Securities are more likely to suffer a loss of all or a portion of their value in the event of a default.

We may invest in Structured Finance Securities that comprise the equity tranche of CLOs, which are junior in priority of payment and are subject to certain payment restrictions generally set forth in an indenture governing such investments. In addition, Structured Finance Securities generally do not benefit from any creditors’ rights or the ability to exercise remedies under the indenture governing such investments. Structured Finance Securities are not guaranteed by another party and are subject to greater risk than the secured notes issued by the CLO. CLOs are typically highly leveraged, utilizing up to approximately 9-13 times leverage, and therefore Structured Finance Securities are subject to a risk of total loss. There can be no assurance that distributions on the assets held by the CLO will be sufficient to make any distributions or that the yield on the Structured Finance Securities will meet our expectations.

CLOs generally may make payments on Structured Finance Securities only to the extent permitted by the payment priority provisions of an indenture governing the notes issued by the CLO. CLO indentures generally provide that principal payments on Structured Finance Securities may not be made on any payment date unless all amounts owing under the secured notes are paid in full.

We will have no influence on the management of underlying investments managed by non-affiliated third-party CLO collateral managers.

We are not responsible for, and have no influence over, the asset management of the portfolios underlying the Structured Finance Securities we hold, as those portfolios are managed by non-affiliated third-party CLO collateral managers. Similarly, we are not responsible for, and have no influence over, the day-to-day management, administration or any other aspect of the issuers of the CLOs. As a result, the values of the portfolios underlying our Structured Finance Securities could decrease as a result of decisions made by third-party CLO collateral managers.

We may suffer a loss if a portfolio company defaults on a loan and the underlying collateral is not sufficient.

We will, at times, take a security interest in the available assets of our portfolio companies, including the equity interests of their subsidiaries and, in some cases, the equity interests of our portfolio companies held by their stockholders. In the event of a default by a portfolio company on a secured loan, we will only have recourse to the assets collateralizing the loan.

There is a risk that the collateral securing our loans may: (i) decrease in value over time; (ii) be difficult to sell in a timely manner; (iii) be difficult to appraise; and (iv) fluctuate in value based upon the success or deterioration of the business and market conditions, including as a result of the inability of a portfolio company to raise additional capital. Additionally, in the case of certain of our investments, we do not have a first lien position on the collateral and may not receive the full value of the collateral upon liquidation. If the underlying collateral value is less than the loan amount, we will suffer a loss.

In the event of bankruptcy of a portfolio company, we may not have full recourse to its assets in order to satisfy our loan, or our loan may be subject to equitable subordination. In addition, certain of our loans are subordinate to other debt of the portfolio company. If a portfolio company defaults on our loan or on debt senior to our loan, or in the event of a portfolio company bankruptcy, our loan will be satisfied only after the senior debt receives payment. Where debt senior to our loan exists, the presence of inter-creditor arrangements may limit our ability to amend our loan documents, assign our loans, accept prepayments, exercise our remedies (through “standstill” periods) and control decisions made in bankruptcy proceedings relating to the portfolio company. Bankruptcy and portfolio company litigation can significantly increase collection losses and the time needed for us to acquire the underlying collateral in the event of a default, during which time the collateral may decline in value, causing us to suffer losses.

Borrowers of Broadly Syndicated Loans may be permitted to designate unrestricted subsidiaries under the terms of their financing agreements, which would exclude such unrestricted subsidiaries from restrictive covenants under the financing agreement with the borrower. This would allow the borrower to take various actions with respect to the unrestricted subsidiary including, among other things, incurring debt, granting security on its assets, selling assets, paying dividends or distributing shares of the unrestricted subsidiary to the borrower’s stockholders. Any of these actions could increase the amount of leverage that the borrower is able to incur and increase the risk involved in our investments in Broadly Syndicated Loans accordingly.

If the value of the collateral underlying our loan declines or interest rates increase during the term of our loan, a portfolio company may not be able to obtain the necessary funds to repay our loan at maturity through refinancing. Decreasing collateral value and/or increasing interest rates may hinder a portfolio company’s ability to refinance our loan because the underlying collateral cannot satisfy the debt service coverage requirements necessary to obtain new financing. If a borrower is unable to repay our loan at maturity, we could suffer a loss which may adversely impact our financial performance.

The lack of liquidity in our investments may adversely affect our business.

Most of our assets are presently invested in illiquid securities, and a substantial portion of our investments in leveraged companies is subject to legal and other restrictions on resale or is otherwise less liquid than more broadly traded public securities. The illiquidity of these investments may make it difficult for us to sell such investments if the need arises. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we have previously recorded these investments. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we, OFS Advisor, OFSAM Holdings or any of its other affiliates have material non-public information regarding such portfolio company.

Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our NAV through increased net unrealized depreciation.

As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at fair value as determined in good faith by OFS Advisor, as our valuation designee. In determining the fair value of our investments, OFS Advisor may consider the following types of factors, as relevant:

•comparisons of the portfolio company’s securities to publicly traded securities;

•the enterprise value of the portfolio company;

•the nature and realizable value of any collateral;

•the portfolio company’s ability to make payments, its earnings profile and discounted cash flow;

•the markets in which the portfolio company does business; and

•changes in the interest rate environment and broader credit market conditions that may affect the price at which similar investments may be made in the future and other relevant factors.

When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, OFS Advisor will use the pricing indicated by that external event to corroborate the valuation. We will record decreases in the market values or fair values of our investments as unrealized depreciation. Pricing declines and reduced liquidity in the corporate debt markets may result in significant net unrealized depreciation in our portfolio. The effect of all of these factors on our portfolio may also reduce our NAV by increasing net unrealized depreciation in our portfolio. Depending on market conditions, we could incur

substantial realized losses and may suffer additional unrealized losses in future periods, which could have a material adverse effect on our business, financial condition and results of operations.

We are a non-diversified management investment company within the meaning of the 1940 Act, and therefore we are not limited by the 1940 Act with respect to the proportion of our assets that may be invested in securities of a single issuer.

We are classified as a non-diversified management investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. To the extent that we assume large positions in the securities of a small number of issuers, our NAV may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market’s assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our asset diversification requirements as a RIC under the Code, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies.

Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies default on their obligations under any of their debt instruments or if there is a downturn in a particular industry.

Our portfolio is, and may in the future be, concentrated in a limited number of portfolio companies and industries. As a result, the aggregate returns we realize may be significantly adversely affected if a small number of investments underperform or if we are required to write down the value of any individual investment. Additionally, while we are not targeting investments in any specific industries, our investments may be concentrated in relatively few industries. As a result, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize.

As of December 31, 2025, our common equity investment in Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ingredients, based on its fair value of $79.4 million, $79.2 million of which represents unrealized appreciation, accounted for 23.2% of our total investment portfolio at fair value, or 64.5% of total net assets. A deterioration in this portfolio company’s operating performance or other factors underlying the valuation of this investment could have a material impact on our NAV.

Our failure to make follow-on investments in our portfolio companies could impair the value of our portfolio.

Following an initial investment in a portfolio company, we may make additional “follow-on” investments in that portfolio company in order to:

•increase or maintain, in whole or in part, our position as a creditor or equity ownership percentage;

•exercise warrants, options or convertible securities that were acquired in the original or subsequent financing; or

•preserve or enhance the value of our investment.

We have discretion to make follow-on investments, subject to the availability of capital resources. The failure on our part to make follow-on investments may, in some circumstances, jeopardize the continued viability of a portfolio company and our initial investment, or may result in a missed opportunity for us to increase our participation in a successful operation. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because: (i) we may not want to increase our level of risk; (ii) we prefer other opportunities; or (iii) we are constrained by BDC regulatory requirements or the desire to maintain our RIC status. Our ability to make follow-on investments may also be limited by OFS Advisor’s allocation policy.

Because we generally do not hold controlling equity interests in our portfolio companies, we may not be able to exercise control over our portfolio companies or prevent decisions by management of our portfolio companies that could decrease the value of our investments.

We generally do not hold controlling equity positions in our portfolio companies. As a result, we are subject to the risk that a portfolio company may make business decisions with which we disagree, and that the management and/or stockholders of a portfolio company may take risks or otherwise act in ways that are adverse to our interests. Due to the lack of liquidity of the debt and equity investments that we typically hold in our portfolio companies, we may not be able to dispose of our investments in the event we disagree with the actions of a portfolio company and may therefore suffer a decrease in the value of our investments.

Defaults by our portfolio companies will harm our operating results.

A portfolio company’s failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, the acceleration or termination of its loans and foreclosure on its assets. This could trigger cross-defaults under other agreements and jeopardize such portfolio company’s ability to meet its obligations under the debt or equity

securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting portfolio company.

Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.

We have invested a substantial portion of our capital in senior secured, unitranche, second lien and subordinated loans issued by our portfolio companies. The portfolio companies may be permitted to incur other debt that ranks equally with, or senior to, the debt securities in which we invest. By their terms, such debt instruments may provide that the holders are entitled to receive payment of interest or principal on or before the dates on which we are entitled to receive payments in respect of the debt securities in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution in respect of our investment. After repaying senior creditors, the portfolio company may not have any remaining assets to use to repay its obligation to us. In the case of debt ranking equally with debt securities in which we invest, we would have to share any distributions on an equal and ratable basis with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Additionally, certain loans that we make to portfolio companies may be secured on a second-priority basis by the same collateral securing first-priority debt of such companies. The senior-secured liens on the collateral will secure the portfolio company’s obligations under any outstanding senior debt and may secure certain other future debt that may be permitted to be incurred by the portfolio company under the agreements governing the loans. The holders of obligations secured by first-priority liens on the collateral will generally control the liquidation of, and be entitled to receive proceeds from, any realization of the collateral to repay their obligations in full before us. In addition, the value of the collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of all of the collateral would be sufficient to satisfy the loan obligations secured by the second-priority liens after payment in full of all obligations secured by the first-priority liens on the collateral. If such proceeds were not sufficient to repay amounts outstanding under the loan obligations secured by the second-priority liens, then we, to the extent we are not repaid from the proceeds of the sale of the collateral, would only have an unsecured claim against the portfolio company’s remaining assets, if any.

The rights we may have with respect to the collateral securing the loans we make to our portfolio companies with more senior debt outstanding may also be limited pursuant to the terms of one or more intercreditor agreements that we enter into with the holders of such senior debt. Under a typical intercreditor agreement, at any time that obligations that have the benefit of the first-priority liens are outstanding, any of the following actions that may be taken in respect of the collateral will be at the direction of the holders of the obligations secured by the first-priority liens:

•the ability to cause the commencement of enforcement proceedings against the collateral;

•the ability to control the conduct of such proceedings;

•the approval of amendments to collateral documents;

•releases of liens on the collateral; and

•waivers of past defaults under collateral documents.

We may not have the ability to control or direct such actions, even if our rights are adversely affected.

We may also make unsecured loans to portfolio companies, meaning that such loans will not benefit from any interest in collateral of such companies. Liens on such portfolio companies’ collateral, if any, will secure the portfolio company’s obligations under its outstanding secured debt and may secure certain future debt that is permitted to be incurred by the portfolio company under its secured loan agreements. The holders of obligations secured by such liens will generally control the liquidation of, and be entitled to receive proceeds from, any realization of such collateral to repay their obligations in full before us. In addition, the value of such collateral in the event of liquidation will depend on market and economic conditions, the availability of buyers and other factors. There can be no assurance that the proceeds, if any, from sales of such collateral would be sufficient to satisfy our unsecured loan obligations after payment in full of all secured loan obligations. If such proceeds were not sufficient to repay the outstanding secured loan obligations, then our unsecured claims would rank equally with the unpaid portion of such secured creditors’ claims against the portfolio company’s remaining assets, to the extent any such assets remain.

If we make subordinated investments, the portfolio companies may not generate sufficient cash flow to service their debt obligations to us.

We make subordinated investments that rank below other obligations of the obligor in right of payment. Subordinated investments are subject to greater risk of default than senior obligations as a result of adverse changes in the financial condition of the obligor or in general economic conditions. If we make a subordinated investment in a portfolio company, the portfolio company may be highly leveraged, and its relatively high debt-to-equity ratio may create increased risks that its operations might not generate sufficient cash flow to service all of its debt obligations.

The disposition of our investments may result in contingent liabilities.

A significant portion of our investments involve private securities. In connection with the disposition of an investment in private securities, we may be required to make representations about the business and financial affairs of the portfolio company that are typical of those made in connection with the sale of a business. We may also be required to indemnify the purchasers of such investment to the extent that any such representations turn out to be inaccurate, or we may be required to repurchase the securities, in each case resulting in potential liabilities. These arrangements may result in contingent liabilities that ultimately create funding obligations that we must satisfy through our return of distributions previously made to us.

We may expose ourselves to risks if we engage in hedging transactions.

While we do not currently engage in hedging transactions, if we were to engage in hedging transactions, we would expose ourselves to risks associated with such transactions. We may utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions arising from changes in currency exchange rates and market interest rates.

Hedging against a decline in the values of our portfolio positions does not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions increase. Moreover, it may not be possible to hedge against an exchange rate or interest rate fluctuation at an acceptable price for anticipated fluctuations.

The success of our hedging transactions will depend on our ability to correctly predict movements in currencies and interest rates. Therefore, while we may enter into such transactions to seek to reduce currency exchange rate and interest rate risks, unanticipated changes in currency exchange rates or interest rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions being hedged may vary. Moreover, for a variety of reasons, we may not seek to (or be able to) establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations.

Investments in securities of foreign companies, if any, may involve significant risks in addition to the risks inherent in U.S. investments.

The 1940 Act generally requires that 70% of our investments be in issuers that are organized under the laws of, and have their principal place of business in, any state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands or any other possession of the United States. We expect that these investments would focus on the same debt investments that we make in U.S. middle-market companies and/or Broadly Syndicated Loans and, accordingly, would be complementary to our overall strategy and enhance the diversity of our holdings. However, our investments in CLO securities are generally made in non-U.S. entities.

Investing in non-U.S. portfolio companies may expose us to additional risks not typically associated with investing in U.S. companies, including changes in exchange control regulations, political and social instability, expropriation and imposition of foreign taxes. In addition, any investments that we make that are denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Factors such as trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments may affect currency values. We may employ hedging techniques to minimize these risks, but we cannot assure you that we will, in fact, hedge currency risk, or, that if we do, such strategies will be effective. Further, we may have difficulty enforcing creditor’s rights in non-U.S. jurisdictions.

We may not realize gains from our equity investments.

When we invest in senior secured, unitranche, second lien and subordinated loans, we may acquire warrants or other equity securities of portfolio companies as well. We may also invest in equity securities directly. To the extent we hold equity investments, we will attempt to dispose of them and realize gains upon our disposition of them. However, the equity interests we invest in may not appreciate in value and may decline in value. As a result, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

We and our investments are subject to interest rate risk.

Since we may incur leverage to make investments, our net investment income depends, in part, on the difference between the rate at which we borrow funds and the rate at which we invest those funds.

In a fluctuating interest rate environment, any leverage that we incur may bear a higher or lower interest rate than previously incurred. There may not, however, be a corresponding change in our investment income. In the event that our interest expense were to increase relative to income, it might reduce our ability to service the interest obligations on, and to repay the principal of, our indebtedness, and our net investment income could be adversely impacted, as well as our capacity to pay distributions to our stockholders.

The fair value of certain of our investments may be significantly affected by changes in interest rates. Although senior secured loans are generally floating rate instruments, our investments in senior secured loans through CLOs are sensitive to interest rate levels and volatility. Although CLOs are generally structured to mitigate the risk of interest rate mismatch, there may be some difference between the timing of interest rate resets on the assets and liabilities of a CLO. Such a mismatch in timing could have a negative effect on the amount of funds distributed to CLO equity investors. In addition, CLOs may not be able to enter into hedge agreements, even if it may otherwise be in the best interests of the CLO to hedge such interest rate risk. Furthermore, in a fluctuating interest rate environment and/or economic downturn, loan defaults may increase, resulting in losses for the CLOs in which we invest and result in credit losses that may adversely affect our cash flow, fair value of our assets and operating results.

In addition, fluctuating interest rates may influence prepayment rates, as corporate borrowers seek to avoid escalating interest payments or to refinance floating rate loans. Further, a general rise in interest rates will increase the financing costs of CLOs.

SOFR Floor Risk. Because CLOs generally issue debt on a floating rate basis, an increase in the Secured Overnight Financing Rate (“SOFR”) will increase the financing costs of CLOs. Many of the senior secured loans held by these CLOs have SOFR floors such that, when SOFR is below the stated SOFR floor, the stated SOFR floor (rather than SOFR itself) is used to determine the interest payable under the loans. Therefore, if SOFR increases but stays below the average SOFR floor rate of the senior secured loans held by a CLO, there would not be a corresponding increase in the investment income of such CLOs. The combination of increased financing costs without a corresponding increase in investment income in such a scenario would result in smaller distributions to equity holders of a CLO.

Reference Rate Risk. As of September 30, 2024, no settings of the London Interbank Offered Rate (“LIBOR”) continue to be published. On March 15, 2022, the Consolidation Appropriations Act of 2022, which includes the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”), was signed into law in the United States. This legislation established a uniform benchmark replacement process for certain financial contracts that matured after June 30, 2023 and that do not contain clearly defined or practicable LIBOR fallback provisions. The Federal Reserve Board adopted a final rule in December 2022 implementing the LIBOR Act and specified benchmarks based on SOFR.

Although the transition process away from LIBOR has become increasingly well-defined, the transition process remains complex. SOFR appears to be the preferred replacement for U.S. dollar LIBOR, but it is unclear if other benchmarks may emerge. These developments and the use of SOFR or other alternative reference rates could have adverse impacts on our business, financial condition and results of operations, including, among other things, increased volatility or illiquidity in markets for instruments that continue to rely on LIBOR or which have been transitioned away from LIBOR to a different rate like SOFR and, in any case, could result in a reduction in the value of certain investments held by us.

Benchmark Rate Mismatch. Many underlying corporate borrowers can elect to pay interest based on 1-month term SOFR, 3-month term SOFR and/or other term SOFR or benchmark rates in respect of the loans held by CLOs in which we are invested, in each case plus an applicable spread, whereas CLOs generally pay interest to holders of the CLO’s debt tranches based on 3-month term SOFR plus a spread. The 3-month term SOFR rate may fluctuate in excess of other potential term SOFR or other benchmark rates, which may result in many underlying corporate borrowers electing to pay interest based on a shorter or different, but in any event, lower term SOFR or other benchmark rate. This mismatch in the rate at which CLOs earn interest and the rate at which they pay interest on their debt tranches negatively impacts the cash flows on a CLO’s equity tranche,

which may in turn adversely affect our cash flows and results of operations. Unless spreads are adjusted to account for such increases, these negative impacts may worsen as the amount by which the 3-month term rate exceeds such other chosen term SOFR or other benchmark rate.

Relatedly, a decrease in interest income generated by senior secured loans held by the CLO Portfolio Companies might lower the cash flows available to the Company from its CLO investments, particularly its equity tranches. Lower interest rates may result in increased loan prepayments and reinvestment of proceeds at reduced yields. As a result, a declining interest rate environment could negatively impact the Company’s net investment income and the amount of dividends the Company is able to distribute to stockholders. Additionally, given the structure of the incentive fee payable to OFS Advisor, a general increase in interest rates will likely have the effect of making it easier for OFS Advisor to meet the quarterly hurdle rate for payment of income incentive fees under the Investment Advisory Agreement without any corresponding increase in relative performance on the part of OFS Advisor.

Risks Related to Our Securities and an Investment in our Common Stock

There is a risk that stockholders may not receive distributions or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

We have made distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure stockholders that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in this Annual Report on Form 10-K. In addition, due to the asset coverage test applicable to us under the 1940 Act as a BDC, we may be limited in our ability to make distributions.

When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated taxable (or tax-basis) earnings and profits. Distributions in excess of current and accumulated earnings and profits will be treated as a non-taxable return of capital to the extent of an investor’s basis in our stock and, assuming that an investor holds our stock as a capital asset, thereafter as a capital gain. A return of capital represents a return to stockholders of a portion of their original investment in us rather than income or capital gains.

The market price of our common stock may fluctuate and decrease significantly.

As with any stock, the market price of our common stock will fluctuate with market conditions and other factors. Our common stock is intended for long-term investors and should not be treated as a trading vehicle. Shares of BDCs frequently trade at a discount from their NAV. The market price and liquidity in the market for shares of our common stock may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

•significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which is not necessarily related to the operating performance of these companies;

•exclusion of our common stock from certain market indices, such as the Russell 2000 Financial Services Index, which could reduce the ability of certain investment funds to own our common stock and create short-term selling pressure on our common stock;

•changes in regulatory policies or tax guidelines, particularly with respect to RICs or BDCs;

•loss of RIC or BDC status;

•our origination activity, including the pace of, and competition for, new investment opportunities;

•our ability to incur additional leverage pursuant to Section 61(a)(2) of the 1940 Act and the impact of such leverage on our net investment income and results of operations;

•changes, or perceived changes, in earnings or variations in operating results;

•changes, or perceived changes, in the value of our portfolio of investments, including upon the sale or disposition of any such investments;

•changes in accounting guidelines governing the valuation of our investments;

•any shortfall in revenue or net income or any increase in losses from levels expected by investors or securities analysts;

•the inability to secure additional debt or equity capital or to exit portfolio company investments;

•potential future sales of common stock or debt securities convertible into or exchangeable or exercisable for our common stock or the conversion of such securities;

•departure of OFS Advisor’s, OFSC’s or any of their affiliates’ key personnel;

•operating performance of companies comparable to us;

•general economic trends and other external factors; and/or

•loss of a major funding source.

Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.

The shares of our common stock beneficially owned by our principal stockholders, including OFSAM Holdings, are generally available for resale, subject to the provisions of Rule 144 promulgated under the Securities Act unless they are registered for sale under the Securities Act. OFSAM Holdings is entitled to the benefits of a registration rights agreement granting OFSAM Holdings the right to require us to register its shares for resale. Sales of substantial amounts of our common stock, or the availability of such common stock for sale, could adversely affect the prevailing market prices for our common stock. If this occurs and continues, it could impair our ability to raise additional capital through the sale of securities should we desire to do so.

Certain provisions of the Delaware General Corporation Law and our Certificate of Incorporation and Bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.

The Delaware General Corporation Law, our Certificate of Incorporation and our Bylaws contain provisions that may have the effect of discouraging a third-party from making an acquisition proposal for us. We have also adopted measures that may make it difficult for a third-party to obtain control of us, including provisions of our Certificate of Incorporation dividing our Board into three classes with the term of one class expiring at each annual meeting of stockholders. These anti-takeover provisions may inhibit a change in control in circumstances that could provide the holders of our common stock with the opportunity to realize a premium over the market price of our common stock.

Our common stock may trade below its NAV per share, which limits our ability to raise additional equity capital.

If our common stock is trading below its NAV per share, we will generally not be able to issue additional shares of our common stock at its market price without first obtaining the approval for such issuance from our stockholders and our independent directors. Shares of BDCs, including shares of our common stock, have historically traded at discounts to their NAVs. As of December 31, 2025, our NAV per share was $9.19 and the closing price of our common shares on The Nasdaq Global Select Market was $4.76. If our common stock trades below NAV, the higher the cost of equity capital may result in it being unattractive to raise new equity, which may limit our ability to grow. The risk of trading below NAV is separate and distinct from the risk that our NAV per share may decline. We cannot predict whether shares of our common stock will trade above, at or below our NAV.

If we issue preferred stock, debt securities or convertible debt securities, the NAV of our common stock may become more volatile.

We cannot assure the holders of our common stock that the issuance of preferred stock and/or debt securities would result in a higher yield or return to the holders of our common stock. The issuance of preferred stock, debt securities or convertible debt would likely cause the NAV of our common stock to become more volatile. If the dividend rate on the preferred stock, or the interest rate on the debt securities, were to approach the net rate of return on our investment portfolio, the benefit of leverage to the holders of our common stock would be reduced. If the dividend rate on the preferred stock, or the interest rate on the debt securities, were to exceed the net rate of return on our portfolio, the use of leverage would result in a lower rate of return to the holders of common stock than if we had not issued the preferred stock or debt securities. Any decline in the NAV of our investments would be borne entirely by the holders of our common stock. Therefore, if the market value of our portfolio were to decline, leverage would result in a greater decrease in NAV to the holders of our common stock than if we were not leveraged through the issuance of preferred stock.

There is also a risk that, in the event of a sharp decline in the value of our net assets, we would be in danger of: (i) failing to maintain the required asset coverage ratios which may be required by the preferred stock, debt securities, convertible debt or units; (ii) a downgrade in the ratings of the preferred stock, debt securities, convertible debt or units; or (iii) our current investment income not being sufficient to meet the dividend requirements on the preferred stock or the interest payments on the debt securities. If we do not maintain our required asset coverage ratios, we may not be permitted to declare dividends. In order to counteract such an event, we might need to liquidate investments in order to fund redemption of some or all of the preferred stock, debt securities or convertible debt. In addition, we would pay (and the holders of our common stock would bear) all costs and expenses relating to the issuance and ongoing maintenance of the preferred stock, debt securities, convertible debt or any combination of these securities. Holders of preferred stock, debt securities or convertible debt may have different interests than holders of common stock and may, at times, have disproportionate influence over our affairs.

Holders of any preferred stock that we may issue will have the right to elect members of our Board and have class voting rights on certain matters.

The 1940 Act requires that holders of shares of preferred stock be entitled as a class to elect two directors at all times and to elect a majority of the directors if dividends on such preferred stock are in arrears by two years or more, until such arrearage is eliminated. In addition, certain matters under the 1940 Act require the separate vote of the holders of any issued and outstanding preferred stock, including changes in fundamental investment restrictions and conversion to open-end status and, accordingly, preferred stockholders could veto any such changes. Restrictions imposed on the declarations and payment of dividends or other distributions to the holders of our common stock and preferred stock, both by the 1940 Act and by requirements imposed by rating agencies, might impair our ability to maintain our tax treatment as a RIC for U.S. federal income tax purposes.

Our Unsecured Notes are effectively subordinated to any secured indebtedness we have currently incurred or may incur in the future and will rank pari passu with, or equal to, all outstanding and future unsecured, unsubordinated indebtedness issued by us and our general liabilities.

Our Unsecured Notes are not secured by any of our assets or any of the assets of any of our subsidiaries. As a result, the Unsecured Notes are effectively subordinated to any secured indebtedness we or our subsidiaries have outstanding (including the Banc of California Credit Facility and the Natixis Facility) or that we or our subsidiaries may incur in the future (or any indebtedness that is initially unsecured and to which we subsequently grant a security interest) to the extent of the value of the assets securing such indebtedness. In any liquidation, dissolution, bankruptcy or other similar proceeding, the holders of any of our secured indebtedness or secured indebtedness of our subsidiaries may assert rights against the assets pledged to secure that indebtedness in order to receive full payment of their indebtedness before the assets may be used to pay other creditors, including the holders of the Unsecured Notes.

The Unsecured Notes are structurally subordinated to the indebtedness and other liabilities of our subsidiaries.

The Unsecured Notes are obligations exclusively of the Company, and not of any of our subsidiaries. None of our subsidiaries are a guarantor of the Unsecured Notes, and the Unsecured Notes will not be required to be guaranteed by any subsidiary we may acquire or create in the future. Any assets of our subsidiaries will not be directly available to satisfy the claims of our creditors, including holders of the Unsecured Notes. Except to the extent we are a creditor with recognized claims against our subsidiaries, all claims of creditors of our subsidiaries will have priority over our equity interests in such entities (and therefore the claims of our creditors, including holders of the Unsecured Notes) with respect to the assets of such entities. Even if we are recognized as a creditor of one or more of these entities, our claims would still be effectively subordinated to any security interests in the assets of any such entity and to any indebtedness or other liabilities of any such entity senior to our claims. Consequently, the Unsecured Notes will be structurally subordinated to all indebtedness and other liabilities, including trade payables, of any of our existing or future subsidiaries, including SBIC I LP and OFSCC-FS. Certain of these entities currently serve as guarantors under the Banc of California Credit Facility or the Natixis Facility, and in the future our subsidiaries may incur substantial additional indebtedness, all of which is and would be structurally senior to the Unsecured Notes.

The indenture under which the Unsecured Notes were issued contains limited protection for holders of the Unsecured Notes.

The indenture under which the Unsecured Notes were issued offers limited protection to holders of the Unsecured Notes. The terms of the indenture and the Unsecured Notes do not restrict our or any of our subsidiaries’ ability to engage in, or otherwise be a party to, a variety of corporate transactions, circumstances or events that could have a material adverse impact on your investment in the Unsecured Notes. In particular, the terms of the indenture and the Unsecured Notes will not place any restrictions on our or our subsidiaries’ ability to:

• issue securities or otherwise incur additional indebtedness or other obligations, including: (i) any indebtedness or other obligations that would be equal in right of payment to the Unsecured Notes; (ii) any indebtedness or other obligations that would be secured and therefore rank effectively senior in right of payment to the Unsecured Notes to the extent of the values of the assets securing such debt; (iii) our indebtedness that is guaranteed by one or more of our subsidiaries and which therefore is structurally senior to the Unsecured Notes; and (iv) securities, indebtedness or obligations issued or incurred by our subsidiaries that would be senior to our equity interests in those entities and therefore rank structurally senior to the Unsecured Notes with respect to the assets of our subsidiaries, in each case other than an incurrence of indebtedness or other obligation that would cause a violation of Section 18(a)(1)(A), as modified by the provisions of Section 61(a), of the 1940 Act as may be applicable to us from time to time, or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in each case, to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% (now 150%, effective since May 3, 2019)

after such borrowings. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur”;

• pay dividends on, or purchase or redeem or make any payments in respect of, capital stock or other securities ranking junior in right of payment to the Unsecured Notes, including subordinated indebtedness, in each case, other than dividends, purchases, redemptions or payments that would cause our asset coverage to fall below the threshold specified in Section 18(a)(1)(B), as modified by the provisions of Section 61(a), of the 1940 Act as may be applicable to us from time to time, or any successor provisions, giving effect to: (i) any exemptive relief granted to us by the SEC; and (ii) any no-action relief granted by the SEC to another BDC (or to us if we determine to seek such similar no-action or other relief) permitting the BDC to declare any cash dividend or distribution notwithstanding the prohibition contained in Section 18(a)(1)(B), as modified by the provisions of Section 61(a), of the 1940 Act as may be applicable to us from time to time in order to maintain the BDC’s status as a RIC under Subchapter M of the Code. These provisions generally prohibit us from declaring any cash dividend or distribution upon any class of our capital stock, or purchasing any such capital stock if our asset coverage, as defined in the 1940 Act, is below 200% (now 150%, effective since May 3, 2019) at the time of the declaration of the dividend or distribution or the purchase and after deducting the amount of such dividend, distribution or purchase. See “Item 1A. Risk Factors—Risks Related to our Business and Structure—We are subject to reduced asset coverage for borrowings, which increases the maximum amount of leverage we may incur”;

• sell assets (other than certain limited restrictions on our ability to consolidate, merge or sell all or substantially all of our assets);

• enter into transactions with affiliates;

• create liens (including liens on the shares of our subsidiaries) or enter into sale and leaseback transactions;

• make investments; or

• create restrictions on the payment of dividends or other amounts to us from our subsidiaries.

In addition, the indenture does not require us to make an offer to purchase the Unsecured Notes in connection with a change of control or any other event.

Furthermore, the terms of the indenture and the Unsecured Notes do not protect holders of the Unsecured Notes in the event that we experience changes (including significant adverse changes) in our financial condition, results of operations or credit ratings, if any, as they do not require that we or our subsidiaries adhere to any financial tests or ratios or specified levels of net worth, revenues, income, cash flow, or liquidity.

Our ability to recapitalize, incur additional debt (including additional debt that matures prior to the maturity of the Unsecured Notes), and take a number of other actions that are not limited by the terms of the Unsecured Notes may have important consequences for holders of the Unsecured Notes, including making it more difficult for us to satisfy our obligations with respect to the Unsecured Notes or negatively affecting the trading value of the Unsecured Notes.

Other debt we issue or incur in the future could contain more protections for its holders than the indenture and the Unsecured Notes, including additional covenants and events of default. The issuance or incurrence of any such debt with incremental protections could affect the market for, trading levels, and prices of the Unsecured Notes.

We may choose to redeem the Unsecured Notes when prevailing interest rates are relatively low.

We may choose to redeem the Unsecured Notes Due July 2028, the Unsecured Notes Due October 2028, or the Unsecured Note due August 2029, each without a prepayment penalty, at any time prior to their respective maturities, especially if prevailing interest rates are lower than the rate borne by the Unsecured Notes. If prevailing rates are lower at the time of redemption, and we redeem the Unsecured Notes, Unsecured Note holders would likely not be able to reinvest the redemption proceeds in a comparable security at an effective interest rate as high as the interest rate on the Unsecured Notes being redeemed. Our redemption right may also adversely impact Unsecured Note holders’ ability to sell the Unsecured Notes.

General Risk Factors

We may experience fluctuations in our quarterly operating results.

We could experience fluctuations in our quarterly operating results due to a number of factors, including the interest rate payable on the debt securities we acquire, the default rate on such securities, the level of our expenses, variations in the timing and recognition of realized and unrealized gains or losses, variations in the timing and recognition of any non-recurring fee or dividend income, distributions from portfolio companies, the degree to which we encounter competition in our markets and general economic conditions. In light of these factors, results for any period should not be relied upon as being indicative of performance in future periods.

We incur significant costs as a result of being a publicly traded company.

As a publicly traded company, we incur legal, accounting and other expenses, including costs associated with the periodic reporting requirements applicable to a company whose securities are registered under the Exchange Act, as well as additional corporate governance requirements, including requirements under the Sarbanes-Oxley Act and other rules implemented by the SEC.

We are subject to risks related to corporate social responsibility, and compliance with ESG-related regulations may impose additional capital and operational expenditures on our business.

Our business faces increasing public scrutiny related to ESG activities, which are often perceived to contribute to the long-term sustainability of a company’s performance. A variety of organizations measure the performance of companies on ESG topics, and the results of these assessments are widely publicized.

ESG integration and responsible investing practices are rapidly evolving, and there are different principles, frameworks, methodologies and tracking tools being developed and implemented. Our adherence to these principles, frameworks, methodologies and tools may vary over time. We risk damage to our brand and reputation if we fail to act (or are perceived to not act) responsibly in a number of areas, such as diversity, equity and inclusion, environmental stewardship, corporate governance, support for local communities, transparency and the consideration of ESG factors in our investment processes. Adverse incidents related to ESG activities could impact the value of our brand, the cost of our operations and our relationships with investors, any of which could adversely affect our business and results of operations. At the same time, there are various approaches to responsible investing and divergent views on the consideration of ESG topics. These differing views increase the risk that any action or lack thereof with respect to any ESG activities may be perceived negatively. Political and legal scrutiny of ESG practices has intensified, and “anti-ESG” sentiment has gained momentum across the U.S., with several states having enacted or proposed “anti-ESG” policies and legislation or issued related legal opinions. Other jurisdictions have adopted or proposed mandatory ESG disclosure regimes or investment restrictions. If investors subject to such legislation view any of our ESG activities as being inconsistent with such “anti-ESG” policies, legislation or legal opinions, those investors may not invest in us and this could negatively affect the price of our common stock.

We may be subject to disclosure laws and regulations related to a range of sustainability matters, including greenhouse gas emissions; climate change risks; diversity, equity and inclusion; and human rights matters. For example, in 2023, California passed the Climate Corporate Data Accountability Act and Climate-Related Financial Risk Act, which will impose broad climate-related disclosure obligations on U.S.-organized entities that meet certain revenue thresholds and do business in California, as well as the Voluntary Carbon Market Disclosures Act, which is focused on the voluntary carbon market for carbon credits but also includes disclosure requirements for companies with a required nexus to California making certain climate-related claims. Other jurisdictions have also enacted or are considering enacting mandatory climate and sustainability reporting laws and laws requiring disclosure of other ESG topics, such as human capital. Compliance with such laws, if they survive any legal challenges, may require implementing or modifying systems and procedures for the collection and processing of relevant data and related internal and external controls, changes to management and/or operational obligations, and dedication of substantial time and financial resources. The compliance burden and related costs may increase over time. Failure to comply with applicable laws may lead to investigations and audits, fines, other enforcement actions, liabilities or reputational damage.

There are a number of different principles, frameworks, and/or methodologies for integrating sustainability-related incentives, mandates, and/or reporting requirements into financing arrangements. Any principles, frameworks, and/or methodologies which we anticipate referencing or utilizing may not align with our peers and/or those preferred by prospective investors. In addition, unless otherwise stated in our regulatory disclosures, no assurance is given that any of our financing arrangements will align with particular market frameworks.

Regulatory initiatives related to ESG, and the scope and timing of these initiatives, could also adversely affect our business. Compliance with any new laws or regulations increases our regulatory burden and could make compliance more difficult and expensive, affect the manner in which we or our investments conduct business and adversely affect our profitability.

Cybersecurity risks and cyber incidents may adversely affect our business or the business of our portfolio companies by causing a disruption to our operations or the operations of our portfolio companies, a compromise or corruption of our confidential information or the confidential information of our portfolio companies and/or damage to our business relationships or the business relationships of our portfolio companies, any of which could negatively impact the business, financial condition and operating results of us or our portfolio companies.

The efficient operation of our business is dependent on computer hardware and software systems, as well as data processing systems and the secure processing, storage and transmission of information, which, despite the implementation of a variety of security measures, are vulnerable to security breaches and cybersecurity incidents. A cybersecurity incident is any

adverse event that threatens the confidentiality, integrity or availability of the information resources of us or our portfolio companies. These incidents may be intentional attacks or unintentional events and could involve gaining unauthorized access to our information systems or those of our portfolio companies or third-party vendors to misappropriate assets, steal confidential information, corrupt data or cause operational disruption. The risk of a security breach or disruption, particularly through cyber-attacks or cyber intrusions, including by computer hackers, nation-state affiliated actors, and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have increased. Our information technology systems and the information technology systems of our portfolio companies and our third-party vendors, may be vulnerable to security breaches and cyber-attacks, which may result in disrupted operations, misstated or unreliable financial data, liability for stolen assets or information, increased cybersecurity protection and insurance costs, litigation damage to business relationships and damage to our competitiveness, stock price, and long-term stockholder value. The costs related to cyber or other security threats or disruptions may not be fully insured or indemnified by other means. As our, our portfolio companies’ and our third-party vendors’ reliance on technology, which may also include embedded artificial intelligence (“AI”), has increased, so too have the risks posed to our information systems, both internally and those provided by OFS Services and third-party service providers, and the information systems of our portfolio companies. OFS Advisor has implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber incident, cannot guarantee that a cyber incident will not occur or that our financial results, operations or confidential information will not be adversely impacted by such an incident.

In addition, cybersecurity has become a top priority for regulators around the world, including the SEC, and some jurisdictions have enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal data. Even the most well-protected information, networks, systems and facilities may remain vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases, are designed to not be detected and, in fact, may not be detected. Accordingly, we and our service providers may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us and our service providers to entirely mitigate this risk. Cybersecurity risks require continuous and increasing attention and other resources from us to, among other actions, identify and quantify these risks and upgrade and expand our technologies, systems and processes to adequately address such risks. Such attention diverts time and other resources from other activities and there is no assurance that our efforts will be effective. If we fail to comply with relevant laws and regulations, we could suffer financial losses, a disruption of our businesses, liability to investors, regulatory intervention or reputational damage. Further, the increased use of mobile and cloud technologies as remote and flexible work arrangements have expanded our and our portfolio companies’ vulnerability to a cybersecurity risk or incident. Reliance on mobile or cloud technology or any failure by mobile technology and cloud service providers to adequately safeguard systems could disrupt our operations, the operations of a portfolio company or the operations of our or their service providers and result in misappropriation, corruption or loss of personal, confidential or proprietary information or the inability to conduct business operations. In addition, remote work, whether by us, our portfolio companies, or our service providers, may strain technology resources, introduce operational risks and otherwise heighten the risks described above.

Increased data protection regulation may result in greater complexities and risk in connection with the operation of our business.

We operate in businesses that are highly dependent on information systems and technology. The costs related to cyber or other security threats or disruptions may not be fully insured or otherwise indemnified. Cybersecurity has become a priority for regulators in the U.S. and globally. Many jurisdictions in which we or our portfolio companies may operate have laws and regulations relating to data privacy, cybersecurity and protection of personal information, and these laws and regulations can be inconsistent across jurisdictions and are subject to evolving and, at times, conflicting interpretations. Government officials and regulators, privacy advocates and class-action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. This scrutiny can lead to new and shifting interpretations of existing laws, which may further impact our business. For example, the General Data Protection Regulation in the European Economic Area and the United Kingdom continues to be interpreted by European and UK courts in novel ways, leading to shifting requirements, country specific differences in application and uncertain enforcement priorities. More recently, new and emerging state laws in the United States on privacy, data and related technologies, such as the California Consumer Privacy Act and the California Privacy Rights Act, as well as industry self-regulatory codes and regulatory requirements, create new privacy and security compliance obligations and expand the scope of potential liability, either jointly or severally with our customers and suppliers. As a security example, pursuant to the SEC’s Rules on Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure, we are required to make certain disclosures related to material cybersecurity incidents and the reasonably likely impact of such an incident on Form 8-K and will be required to make certain other cybersecurity disclosures, including in this Annual Report on Form 10-K. Determining whether a cybersecurity incident is notifiable or reportable may not be straightforward and any such mandatory disclosures could be costly and lead to negative publicity, loss of customer confidence in the effectiveness of our security measures, diversion of management’s attention and governmental investigations. Non-compliance with any of the

aforementioned laws, rules or regulations or other similar laws, rules and regulations, represents a serious risk to our business. Some jurisdictions have also enacted laws requiring companies to notify individuals of data security breaches involving certain types of personal data. Breaches in security could potentially jeopardize our, our employees’ or our investors’ or counterparties’ confidential and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our, our employees’, our investors’, our counterparties’ or third parties’ operations, which could result in significant losses, increased costs, disruption of our business, liability to our investors and other counterparties, regulatory intervention or reputational damage. Furthermore, if we fail to comply with the relevant laws and regulations, it could result in regulatory investigations or penalties.

We are subject to risks associated with artificial intelligence and machine learning technology.

Recent technological advances in AI and machine learning technology (“Machine Learning Technology”), including the rapid growth and widespread availability of generative AI applications, could pose new or heightened risks to us, OFS Advisor and any third parties with whom we engage. AI and Machine Learning Technology have the potential to result in significant and disruptive changes in companies, sectors or industries, including those in which we invest, and such disruptions could render certain assumptions underlying our or OFS Advisor’s underwriting, valuation or portfolio monitoring models less reliable or obsolete. We could be exposed to the risks associated with AI and Machine Learning Technology if third-party service providers or any counterparties, whether or not known to us, use such technologies in their business activities. We and OFS Advisor are not in a position to control the use of AI and Machine Learning Technology in third-party products or services. Use of AI and Machine Learning Technology could include the input of confidential information in contravention of applicable policies, contractual or other obligations or restrictions, resulting in such confidential information becoming improperly disseminated. AI and Machine Learning Technology and their applications, including in the private investment and financial sectors, continue to develop rapidly, and we cannot predict the risks that may arise from such developments. In addition, many jurisdictions have passed or are considering laws and regulations concerning AI and Machine Learning Technology, the impact of which is unknown.

A failure to effectively adopt or utilize AI to improve productivity or the analytical abilities of our investment professionals may put us at a competitive disadvantage and affect our business and results of operations. The implementation, development, maintenance and ongoing operation of AI and Machine Learning Technology, whether internally developed or procured through third‑party service providers, may be costly, complex, and subject to unforeseen defects, errors or performance issues, and such costs may be borne by us. AI and Machine Learning Technology are generally highly reliant on the collection and analysis of large amounts of data. Certain data in such models will inevitably contain a degree of inaccuracy and error and could otherwise be inadequate or flawed, which would likely degrade the effectiveness of AI and Machine Learning Technology. Furthermore, even when such models rely on accurate data, AI and Machine Learning Technology may nonetheless generate results that are partially or wholly inaccurate, biased, or misleading, and such errors may be difficult or impossible to detect or correct. To the extent we are exposed to the risks of AI and Machine Learning Technology use, any such inaccuracies or errors could adversely impact us and our business.

We are subject to risks in using custodians, counterparties, administrators and other agents.

We depend on the services of custodians, counterparties, administrators and other agents to carry out certain transactions and other administrative services, including compliance with regulatory requirements in U.S. and non-U.S. jurisdictions. We are subject to risks of errors and mistakes made by these third parties, which may be attributed to us and subject us or our stockholders to reputational damage, penalties or losses. We depend on third parties to provide primary and backup communications and information systems. Any failure or interruption of those systems, including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, portfolio monitoring, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control. The terms of the contracts with third-party service providers are often customized and complex, and many of these arrangements occur in markets or relate to products that are not subject to regulatory oversight. Accordingly, we may be unsuccessful in seeking reimbursement or indemnification from these third-party service providers. In addition, we rely on a select number of third-party service providers and replacing any one of our service providers could be difficult and result in operational disruption and additional expense.

Increased geopolitical unrest, terrorist attacks, acts of war, global health emergencies or natural disasters may impact the businesses in which we invest and harm our business, operating results and financial condition.

Terrorist activity and the continued threat of terrorism and acts of civil or international hostility, acts of war, global health emergencies or natural disasters, including recent increases in geopolitical tensions in several regions, as well as government responses to these types of threats, may disrupt our operations, as well as the operations of the businesses in which we invest. Such acts have created, and continue to create, economic and political uncertainties and have contributed to global economic instability. Future terrorist activities, acts of war, global health emergencies or natural disasters could further affect

the domestic and global economies and create additional uncertainties, which may negatively impact the businesses in which we invest directly or indirectly and, in turn, could have a material adverse impact on our business, operating results and financial condition. Losses from terrorist attacks, global health emergencies and natural disasters are generally uninsurable.

Further downgrades of the U.S. credit rating, impending automatic spending cuts or a government shutdown could negatively impact our liquidity, financial condition and earnings.

U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns, or a recession in the United States. Although U.S. lawmakers have passed legislation to raise the federal debt ceiling on multiple occasions, ratings agencies have previously lowered, or threatened to lower, the long-term sovereign credit rating of the United States.

The impact of this or any further downgrades to the U.S. government’s sovereign credit rating or its perceived creditworthiness could adversely affect the U.S. and global financial markets and economic conditions. Absent quantitative easing by the Federal Reserve, these developments could cause interest rates and borrowing costs to rise, which may negatively impact our ability to access the debt markets on favorable terms. In addition, disagreement over the federal budget has caused the U.S. federal government to shut down for periods of time and may lead to additional U.S. federal government shutdowns. The impact of the prolonged November 2025 shutdown of the U.S. government services, the risk of additional shutdowns and continued adverse political and economic conditions could have a material adverse effect on our business, financial condition and results of operations.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 1C. Cybersecurity

Our Cybersecurity Risk Management Approach

OFS Advisor utilizes the IT department (“IT Department”) of CIM Group, LLC (“CIM Group”), an affiliate, as its IT administrator. The IT Department is responsible for the design and implementation of OFS Advisor’s IT environment and controls, including policies and procedures to identify, assess and manage material risks from cybersecurity threats, which are integrated into OFS Advisor’s internal controls and IT systems.

In collaboration with the IT Department, OFS Advisor’s cybersecurity strategy prioritizes detection, analysis and response to known, anticipated or unexpected threats, effective management of security risks and resiliency against incidents. The IT Department’s cybersecurity risk management policies and procedures include, among other things: enterprise-wide hardware and software management and security controls; employee training; security assessments; penetration testing; security audits and ongoing risk assessments; due diligence on, and monitoring and oversight of, key third-party providers; vulnerability management; and management oversight to assess, identify and manage material risks from cybersecurity threats. The IT Department’s controls leverage the National Institute of Standards and Technology Cyber Security Framework. The IT Department also utilizes industry and government associations, the results from regular internal and third-party audits and other similar resources to inform its cybersecurity processes and to allocate resources, including resources allocated to OFS Advisor.

In addition, OFS Advisor’s employees receive mandatory training on cybersecurity matters at such employee’s new hire and annually thereafter, periodic training and information updates that address new cybersecurity threats and trends, and quarterly “phishing” and social engineering testing to evaluate the effectiveness of the cybersecurity training program and raise employee awareness of cybersecurity threats.

In 2025, we did not identify any cybersecurity threats that have materially affected or are reasonably likely to materially affect our business strategy, results of operations, or financial condition. However, despite our efforts, we cannot eliminate all risks from cybersecurity threats, or provide assurances that we have not experienced undetected cybersecurity incidents.

While we do not believe that our business strategy, result of operations or financial condition have been materially adversely affected by any cybersecurity incidents, for further discussion of cybersecurity risks, see “Item 1A. Risk Factors—Risk Related to Our Securities and an Investment in our Common Stock—Cybersecurity risks and cyber incidents may adversely affect our business or the business of our portfolio companies by causing a disruption to our operations or the operations of our portfolio companies, a compromise or corruption of our confidential information or the confidential information of our portfolio companies and/or damage to our business relationships or the business relationships of our portfolio companies, all of which could negatively impact the business, financial condition and operating results of us or our portfolio companies.”

Management Oversight of Cybersecurity Risk Management

Management’s role in assessing and managing material cybersecurity risks includes various management positions, committees and subcommittees responsible for assessing such risks. The IT Department’s internal processes require escalation of material cybersecurity risks to its management and its Cybersecurity Committee (the “Committee”) for evaluation and, where appropriate, for escalation to the Board. The Committee consists of CIM Group’s 1st Vice President, Head of Enterprise Technology (the “HET”), CIM Group’s Managing Director, Head of Transformation, CIM Group’s Chief Compliance Officer (the “CCO”), as well as representatives from CIM Group’s operations, technology, compliance and accounting departments. The Committee is also responsible for implementing our cybersecurity strategy and overseeing and managing our cybersecurity risk.

In addition to the Committee’s responsibilities, OFS Advisor has established a Cybersecurity Subcommittee (the “Subcommittee”). The Subcommittee consists of the CCO, a designee from CIM Group’s technology department (which may be the HET, CIM Group’s Head of Transformation, or another designated representative), OFS Advisor’s General Counsel, who has received a CERT Certificate in Cyber Oversight through the Cyber Oversight Program of the National Association of Corporate Directors, and the chief financial officer of each of OFS Advisor’s public clients, including our Chief Financial Officer. The Subcommittee is responsible for overseeing our cybersecurity-related public disclosure obligations and ensuring our management and the Board is informed of material cybersecurity incidents affecting us and OFS Advisor. The Committee is chaired by the HET, and the Subcommittee is co-chaired by OFS Advisor’s General Counsel and the designee from CIM Group's technology department (which may be the HET, CIM Group’s Head of Transformation, or another designated representative).

The Committee and Subcommittee each conduct both regular quarterly and as-needed meetings throughout the year during which members of the IT Department provide updates and report on meaningful cybersecurity risks, threats, incidents and vulnerabilities in accordance with the Committee’s and the Subcommittee’s respective reporting frameworks, as well as related priorities, mitigation and remediation activities, financial and employee resource levels, regulatory compliance, technology trends and third-party provider risks. To help inform this reporting framework, the IT Department and OFS Advisor maintain incident response plans and other policies and procedures designed to respond to, mitigate and remediate cybersecurity incidents based on the potential impact to our business, IT systems, network or data, including data held by third parties, or to the IT or other critical services provided by third-party vendors and service providers.

The IT Department’s management responsible for developing and executing both OFS Advisor’s and our cybersecurity policies, and is comprised of individuals with either formal education and degrees in IT or cybersecurity, or with experience working in IT and cybersecurity, including relevant industry experience in security related industries.

We believe that the processes, policies and procedures established by the Committee and the Subcommittee provide guidance for consistent and effective incident handling and response and set standards for internal notifications and escalations, as well as external notification considerations with respect to a cybersecurity event or incident requiring disclosure or notification in accordance with applicable laws.

Board of Directors Oversight of Cybersecurity Risk Management

Our Board has ultimate oversight of cybersecurity risks as part of our enterprise risk management program, including oversight of the processes implemented by OFS Advisor and the IT Department to identify, assess, manage and mitigate cybersecurity risks. The Board receives quarterly updates from senior management of OFS Advisor and the IT Department with respect to the effectiveness of the cyber readiness and cybersecurity program that the IT Department administers on our behalf. This oversight includes briefing and a report by CIM Group’s Head of Transformation or CIM Group’s Head of Operations, as well as a discussion of any cybersecurity breaches detected by the IT Department and a summary of, among other things, the current cybersecurity threat landscape, defensibility measures implemented by the IT Department, the health of our information security system, effectiveness of our cybersecurity controls and recoverability and business continuity testing.

Item 2. Properties

We do not own or lease any real estate or other physical properties material to our operation. Our headquarters are located at 222 W. Adams Street, Suite 1850, Chicago, IL, 60606, and are provided by OFS Services pursuant to the Administration Agreement. Additional operations are conducted from offices in New York, New York and Los Angeles, California, which are also provided by OFS Services pursuant to the Administration Agreement. We believe that our office facilities are suitable and adequate for our business as we contemplate continuing to conduct it.

Item 3. Legal Proceedings

We, OFS Advisor and OFS Services, are not currently subject to any material pending legal proceedings threatened against us as of December 31, 2025. From time to time, we may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. Furthermore, third

parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition, results of operations or cash flows.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

COMMON STOCK AND HOLDERS

Our common stock is traded on The Nasdaq Global Select Market under the symbol “OFS”. The last reported sale price for our common stock on The Nasdaq Global Select Market on February 25, 2026 was $4.08 per share. As of February 25, 2026, there were three holders of record of the common stock, one of which was OFSAM Holdings. A holder of record does not identify stockholders for whom shares are held beneficially in “nominee” or “street name”.

The following table lists the high and low intraday sale price for our common stock, NAV per share, and the cash distributions per share that we have declared on our common stock for each fiscal quarter during the last two most recently completed fiscal years. The stock quotations are inter-dealer quotations and do not include markups, markdowns or commissions.


	NAV Per Share(1)		Price Range				Premium (Discount) of High Sales Price to NAV		Premium (Discount) of Low Sales Price to NAV		Cash Distribution per Share
Period			High		Low
Fiscal 2025
Fourth Quarter	$	9.19	$	7.81	$	4.44	-15.0	%	-51.7	%	$	0.17
Third Quarter	$	10.17	$	8.99	$	7.58	-11.6	%	-25.5	%	$	0.34
Second Quarter	$	10.91	$	9.52	$	7.88	-12.7	%	-27.8	%	$	0.34
First Quarter	$	11.97	$	9.80	$	7.92	-18.1	%	-33.8	%	$	0.34
Fiscal 2024
Fourth Quarter	$	12.85	$	8.98	$	7.81	-30.1	%	-39.2	%	$	0.34
Third Quarter	$	11.29	$	9.35	$	7.75	-17.2	%	-31.4	%	$	0.34
Second Quarter	$	11.51	$	10.14	$	8.42	-11.9	%	-26.8	%	$	0.34
First Quarter	$	11.08	$	12.07	$	9.53	8.9	%	-14.0	%	$	0.34

(1)NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of each period.

Issuer Purchases of Equity Securities

Stock Repurchase Program

On May 22, 2018, the Board authorized the Stock Repurchase Program under which we could acquire up to $10.0 million of our outstanding common stock through the two-year period ending May 22, 2020. On each of May 4, 2020 and May 3, 2022, the Board extended the Stock Repurchase Program for additional two-year periods. On April 30, 2024, the Board extended the Stock Repurchase Program for an additional two-year period through May 22, 2026. Under the extended Stock Repurchase Program, we are authorized to repurchase shares in open-market transactions, including through block purchases, depending on prevailing market conditions and other factors. We expect the Stock Repurchase Program to be in place through May 22, 2026, or until the approved dollar amount has been used to repurchase shares. The Stock Repurchase Program does not obligate us to acquire any specific number of shares, and all repurchases will be made in accordance with SEC Rule 10b-18, which sets certain restrictions on the method, timing, price and volume of stock repurchases. Any decision to repurchase shares under the Stock Repurchase Program is evaluated by the Board based on a variety of factors, including available liquidity, leverage considerations, investment opportunities, and prevailing market conditions. The Stock Repurchase Program may be extended, modified or discontinued at any time for any reason. We have provided our stockholders with notice of our intention to repurchase shares of our common stock in accordance with 1940 Act requirements. We retire all shares of common stock that we purchase in connection with the Stock Repurchase Program.

During the years ended December 31, 2025, 2024 and 2023, we did not make any repurchases of our 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 $9.6 million.

Dividend Reinvestment Plan (DRIP)

During the year ended December 31, 2025, there were $0.3 million of distributions reinvested under the DRIP. For additional information concerning the DRIP, see Note 10 of our consolidated financial statements in “Part II, Item 8. Financial Statements and Supplementary Data.”

Sales of Unregistered Securities

We did not sell any securities during the period covered by this Annual Report that were not registered under the Securities Act.

Stock Performance Graph

This graph compares the total return on our common stock against total returns of the Standard & Poor’s (“S&P”) 500 Stock Index, the Russell 1000 Index and the S&P BDC Index, for the last 10 fiscal years. The graph assumes a $10,000 investment in each of our common stock, the S&P 500 Stock Index, the Russell 1000 Index and the S&P BDC Index on December 31, 2015. The total returns on the graph are calculated based on changes in stock price and the reinvestment of all dividends and distributions, prior to any tax effect.


	Annualized Total Returns
	1 Year		5 Year		10 Year		10 Year - Cumulative
OFS Capital Corporation	(31.3)	%	4.4	%	3.9	%	46.8	%
S&P 500	17.9	%	14.4	%	14.8	%	298.3	%
S&P BDC Index	(3.5)	%	12.3	%	9.3	%	142.7	%
Russell 1000	17.4	%	13.6	%	14.6	%	290.3	%

The graph and other information under the heading “Stock Performance Graph” in Part II Item 5 of this Annual Report on Form 10-K is “furnished” and shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, or to the liabilities of Section 18 of the Exchange Act and shall not be deemed incorporated by reference in any filing under the Exchange Act. The stock price performance included in the above graph is not necessarily indicative of future stock price performance. The table does not reflect the deduction of taxes that a stockholder would pay on fund distributions or the sale of fund shares.

Fees and Expenses

The following table is intended to assist you in understanding the costs and expenses that you will bear directly or indirectly. We caution you that the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Annual Report on Form 10-K contains a reference to fees or expenses paid by “us,” “the Company” or “OFS Capital,” or that “we” will pay fees or expenses, you will indirectly bear such fees or expenses as an investor in OFS Capital.


Stockholder transaction expenses:
Sales load borne by us (as a percentage of offering price)	—	%	(1)
Offering expenses borne by us (as a percentage of offering price)	—	%	(2)
DRIP fees (per sales transaction fee)	$15.00		(3)
Total Stockholder transaction expenses (as a percentage of offering price)	—	%

Estimated annual expenses (as a percentage of net assets attributable to common stock):(4)
Base management fees payable under the Investment Advisory Agreement	5.50	%	(5)
Incentive fees payable under the Investment Advisory Agreement	1.43	%	(6)
Interest payments on borrowed funds	12.16	%	(7)
Other expenses	3.47	%	(8)
Total annual expenses	22.56	%	(9)

(1) The amounts set forth in this table do not reflect the impact of any sales load borne by the Company and its stockholders. If applicable, the prospectus supplement relating to an offering of our common stock will disclose the applicable sales load borne by the Company and its common stockholders as a percentage of the offering price and the following “Example” will be updated accordingly.

(2) The related prospectus supplement will also disclose the applicable offering expenses and total stockholder transaction expenses.

(3) The expenses of the DRIP are included in “other expenses.” The plan administrator’s fees will be paid by us. There will be no brokerage charges or other charges to stockholders who participate in the plan except that, if a participant elects by written notice to the plan administrator to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.10 per share brokerage commission from the proceeds.

(4) Estimated annual expense captions presented in the table above are computed relative to our net asset value of $123.2 million as of December 31, 2025.

(5) Our base management fee is 1.75% of the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and assets owned by any consolidated entity). This item represents projected base management fees for the next twelve months assuming that the base management fee expense remains consistent with the base management fee incurred during the year ended December 31, 2025. The estimated base management fee used for the calculation in the table above excludes the fee reduction on OFSCC-FS Assets agreed to by OFS Advisor for the year ended December 31, 2025. See “Management and Other Agreements—Investment Advisory Agreement.”

(6) The incentive fee assumes that the Income Incentive Fee we will incur during the next twelve months remains consistent with the actual amounts incurred for the Income Incentive Fee for the year ended December 31, 2025. The Capital Gains Fee will be accrued, but not necessarily become payable, if, on a cumulative basis, the sum of net realized capital gains and losses plus net unrealized appreciation and depreciation is positive. The amount set forth in the table assumed the Capital Gains Fee is 0.0%.

The two parts of the incentive fee follows:

•The Income Incentive Fee, payable quarterly in arrears, equals 20.0% of our pre-incentive fee net investment income (including income that is accrued but not yet received in cash), subject to a 2.0% quarterly (8.0% annualized) hurdle rate and a “catch-up” provision measured as of the end of each calendar quarter. Under this provision, in any calendar quarter, OFS Advisor receives no incentive fee until our pre-incentive fee net investment income equals the hurdle rate of 2.0% but then receives, as a “catch-up,” 100% of our pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 2.5%. The effect of this provision is that, if pre-incentive fee net investment income exceeds 2.5% in any calendar quarter, OFS Advisor will receive 20.0% of our pre-incentive fee net investment income as if a hurdle rate did not apply. There is no accumulation of amounts on the hurdle rate from quarter to quarter and accordingly there is no clawback of amounts

previously paid if subsequent quarters are below the quarterly hurdle rate and there is no delay of payment if prior quarters are below the quarterly hurdle rate.

•The Capital Gains Fee, payable annually in arrears, equals 20.0% of our realized capital gains on a cumulative basis, if any (or upon the termination of the Investment Advisory Agreement, as of the termination date), computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fees. The incentive fee is determined on a consolidated basis. We accrue the Capital Gains Fee if, on a cumulative basis, the sum of net realized capital gains and losses plus net unrealized appreciation and depreciation is positive. See “Management and Other Agreements—Investment Advisory Agreement.”

(7) Interest payments on borrowed funds represent interest expenses to be incurred on our $220.5 million of outstanding debt as of December 31, 2025. Borrowing costs also include amortization of deferred debt issuance costs related to the issuance of our outstanding debt. As of December 31, 2025, our asset coverage ratio was 156% as permitted under Section 61(a)(2) of the 1940 Act, and assumes a weighted-average effective interest rate of 7.1%, which is equal to the weighted-average effective interest rate of our $220.5 million of debt outstanding as of December 31, 2025.

We may borrow additional funds from time to time to make investments to the extent we determine that the economic situation is conducive to doing so. As of December 31, 2025, availability under the Banc of California Credit Facility was $20.5 million, based on the stated advance rate of 50% under the borrowing base and the $4.5 million outstanding. Our stockholders will bear directly or indirectly the costs of borrowings under any debt instruments we may enter into.

(8) “Other expenses” assumes that other expenses we incur during the next twelve months remain consistent with the actual amounts incurred during the year ended December 31, 2025. “Other expenses” includes our overhead expenses, including services under the Administration Agreement based on our allocable portion of overhead and other expenses incurred by OFS Services. See “Management and Other Agreements—Administration Agreement.” “Other expenses” also includes ongoing professional expenses to our independent accountants, legal counsel, other professional service providers and compensation of independent directors.

(9) Our stockholders indirectly bear the expenses of underlying funds or other investment vehicles in which we invest that would be investment companies under section 3(a) of the 1940 Act but for the exceptions to that definition provided for in sections 3(c)(1) and 3(c)(7) of the 1940 Act. We do not currently invest in underlying funds or other investment companies and therefore do not expect to incur any acquired fund fees and expenses. The indirect expenses that will be associated with our Structured Finance Securities are not included in the fee table presentation, but if such expenses were included in the fee table presentation then our total annual expenses would have been 22.73%.

Example. The following example demonstrates the projected dollar amount of total cumulative expenses over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed we would have no additional leverage and that our annual operating expenses would remain at the levels set forth in the table above, except that the incentive fee has been assumed as 0% as further described below, resulting in an assumed total annual expense ratio of 21.13% of net assets. The expense amounts assume an annual base management fee of 1.75% as described in footnote 4 above, or 5.50% of net assets, for each year. Transaction expenses are not included in the following example.


	1 Year	3 Years	5 Years	10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return	$194	$494	$704	$997

While the example assumes a 5.0% annual return, as required by the applicable rules of the SEC, our performance will vary and may result in a return greater or less than 5.0%. The incentive fee under the Investment Advisory Agreement is subject to an annual rate of return hurdle rate of 8.0% annualized. Therefore, assuming a 5.0% annual return as in the example above, the incentive fee would either not be payable or would have an insignificant impact on the expense amounts shown above, is not included in the above example. The above illustration assumes that we will not realize any capital gains (computed net of all realized capital losses and unrealized capital depreciation) in any of the indicated time periods. If we achieve sufficient returns on our investments, including through the realization of capital gains, to trigger an incentive fee of a material amount, our expenses and returns to our investors would be higher. For example, if we assumed that we received our 5.0% annual return completely in the form of net realized capital gains on our investments, computed net of all cumulative unrealized depreciation on our investments, the projected dollar amount of total cumulative expenses set forth in the above illustration would be as follows:


	1 Year	3 Years	5 Years	10 Years
You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return resulting entirely from net realized capital gains (all of which is subject to our incentive fee on capital gains)	$204	$519	$741	$1,048

While the examples assume reinvestment of all distributions at NAV, participants in our DRIP will receive a number of shares of our common stock determined by dividing the total dollar amount of the distribution payable to a participant by the market price per share of our common stock at the close of trading on the dividend payment date. The market price per share of our common stock may be at, above or below NAV. The example should not be considered a representation of future expenses, and actual expenses may be greater or less than those shown.

SENIOR SECURITIES

Information about our senior securities (including preferred stock, debt securities and other indebtedness) is shown in the following table for each year in the ten-year period ended December 31, 2025. The senior securities table as of December 31, 2025, 2024, 2023, 2022, 2021, 2020 and 2019 was audited by KPMG LLP and the senior securities table as of December 31, 2018, 2017 and 2016 was audited by our former independent registered public accounting firm. The “ — ” indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities. KPMG LLP’s report on the senior securities table as of December 31, 2025 is included within the Report of Independent Registered Public Accounting Firm included in this Annual Report on Form 10-K.


(dollar amounts in thousands, except per unit data) Class and Year	Total Amount Outstanding(1)		Asset Coverage Per Unit(2)		Involuntary Liquidating Preference Per Unit(3)	Average Market Value Per Unit(4)
4.75% Notes due 2026(5)
December 31, 2025	$	16,000	$	21,477	—	N/A
December 31, 2024	$	125,000	$	3,365	—	N/A
December 31, 2023	$	125,000	$	3,460	—	N/A
December 31, 2022	$	125,000	$	3,721	—	N/A
December 31, 2021	$	125,000	$	3,870	—	N/A

4.95% Notes due 2028
December 31, 2025	$	55,000	$	6,248	—	$	23.06
December 31, 2024	$	55,000	$	7,647	—	$	22.20
December 31, 2023	$	55,000	$	7,864	—	$	21.82
December 31, 2022	$	55,000	$	8,457	—	$	23.27
December 31, 2021	$	55,000	$	8,795	—	$	25.51

7.50% Notes due 2028
December 31, 2025	$	69,000	$	4,980	—	$	25.45

8.00% Note due 2029
December 31, 2025	$	25,000	$	13,746	—	N/A

6.25% Notes due 2023
December 31, 2020	$	25,000	$	14,754	—	$	24.82

6.375% Notes due 2025
December 31, 2020	$	50,000	$	7,377	—	$	22.66
December 31, 2019	$	50,000	$	7,519	—	$	25.30
December 31, 2018	$	50,000	$	5,645	—	$	24.84

6.50% Notes due 2025
December 31, 2020	$	48,525	$	7,601	—	$	22.80
December 31, 2019	$	48,525	$	7,747	—	$	25.29
December 31, 2018	$	48,525	$	5,817	—	$	24.43

5.95% Notes due 2026
December 31, 2020	$	54,325	$	6,790	—	$	21.89
December 31, 2019	$	54,325	$	6,920	—	$	24.75

BNP Facility
December 31, 2025	$	50,950	$	6,745	—	N/A


(dollar amounts in thousands, except per unit data) Class and Year	Total Amount Outstanding(1)		Asset Coverage Per Unit(2)		Involuntary Liquidating Preference Per Unit(3)	Average Market Value Per Unit(4)
December 31, 2024	$	67,350	$	6,245	—	N/A
December 31, 2023	$	90,500	$	4,779	—	N/A
December 31, 2022	$	104,700	$	4,442	—	N/A
December 31, 2021	$	100,000	$	4,837	—	N/A
December 31, 2020	$	31,450	$	11,728	—	N/A
December 31, 2019	$	56,450	$	6,659	—	N/A

Banc of California Credit Facility
December 31, 2025	$	4,500	$	76,364	—	N/A
December 31, 2024	$	1,000	$	420,574	—	N/A
December 31, 2023	$	—	$	—	—	N/A
December 31, 2022	$	—	$	—	—	N/A
December 31, 2021	$	—	$	—	—	N/A
December 31, 2020	$	600	$	614,760	—	N/A
December 31, 2019	$	—	$	—	—	N/A
December 31, 2018	$	12,000	$	23,521	—	N/A
December 31, 2017	$	17,600	$	11,540	—	N/A
December 31, 2016	$	9,500	$	15,821	—	N/A

SBA debentures (SBIC I LP)(6)
December 31, 2023	$	31,920	$	—	—	N/A
December 31, 2022	$	50,920	$	—	—	N/A
December 31, 2021	$	69,920	$	—	—	N/A
December 31, 2020	$	105,270	$	—	—	N/A
December 31, 2019	$	149,880	$	—	—	N/A
December 31, 2018	$	149,880	$	—	—	N/A
December 31, 2017	$	149,880	$	—	—	N/A
December 31, 2016	$	149,880	$	—	—	N/A

Total Senior Securities(7)
December 31, 2025	$	220,450	$	1,559	—	N/A
December 31, 2024	$	248,350	$	1,693	—	N/A
December 31, 2023	$	302,420	$	1,599	—	N/A
December 31, 2022	$	335,620	$	1,634	—	N/A
December 31, 2021	$	349,920	$	1,728	—	N/A
December 31, 2020	$	315,170	$	1,757	—	N/A
December 31, 2019	$	359,180	$	1,796	—	N/A
December 31, 2018	$	260,405	$	2,554	—	N/A
December 31, 2017	$	167,480	$	11,540	—	N/A
December 31, 2016	$	159,380	$	15,821	—	N/A

(1) Total amount of each class of senior securities outstanding at the end of the period presented.

(2) The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by the class of senior securities representing indebtedness. This asset coverage ratio is multiplied by $1,000 to determine the “Asset Coverage Per Unit.” The calculation presented for individual classes of senior securities does not include the impact of other classes of senior securities outstanding as of a particular date. Refer to the Asset Coverage Per Unit for Total Senior Securities below.

(3) The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it.

(4) Average market value per unit for our unsecured notes represents the average of the daily closing prices as reported on the Nasdaq Market during the period presented. Not applicable to our 4.75% Notes due 2026, 8.00% Note due 2029, the Banc of California Credit Facility, BNP Facility or SBA debentures because these senior securities are not registered for public trading.

(5) On January 8, 2026, we issued notices to the holders of the 4.75% Notes due 2026 regarding the exercise of our option to redeem on February 9, 2026 the remaining $16.0 million of outstanding notes at 100% of their principal amount, plus the accrued and unpaid interest.

(6) The SBA debentures were not subject to the asset coverage requirements of the 1940 Act as a result of exemptive relief granted to us by the SEC.

(7) The Asset Coverage Per Unit does not include the SBA debentures as described in footnote (6) above.

FINANCIAL HIGHLIGHTS

The following is a schedule of financial highlights for each year in the ten-year period ended December 31, 2025. The financial highlights as of December 31, 2025, 2024, 2023, 2022, 2021, 2020 and 2019 were audited by KPMG LLP and the financial highlights for each year in the three-year period ended December 31, 2018 are derived from our consolidated financial statements that were audited by our former independent registered public accounting firm. The data should be read in conjunction with our consolidated financial statements and notes thereto and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” which are included elsewhere in this Annual Report.


	Year Ended December 31,
	2025			2024			2023			2022			2021			2020			2019			2018			2017			2016
Per share operating performance:
Net asset value per share at beginning of year	$	12.85		$	12.09		$	13.47		$	15.18		$	11.85		$	12.46		$	13.10		$	14.12		$	14.82		$	14.76



Net investment income(1)	0.92			1.25			1.50			1.37			1.00			0.92			1.43			1.38			1.28			1.46





Net realized gain (loss), net of taxes(1)	(0.91)			(1.28)			(0.85)			(0.13)			(1.54)			(0.75)			(0.29)			(0.36)			0.55			0.25



Net unrealized appreciation (depreciation), net of deferred taxes(1)	(2.44)			2.15			(0.67)			(1.79)			5.12			0.25			(0.42)			(0.31)			(1.19)			(0.29)
Loss on extinguishment of debt(1)	(0.04)			—			(0.02)			(0.01)			(0.34)			(0.06)			—			—			—			—
Loss on impairment of goodwill(1)	—			—			—			—			—			(0.08)			—			—			—			—
Total from operations	(2.47)			2.12			(0.04)			(0.56)			4.24			0.28			0.72			0.71			0.64			1.42
Distributions from net investment income	(0.39)			(1.36)			(1.34)			(1.16)			(0.91)			(0.86)			(1.36)			(1.35)			(1.14)			(1.25)
Distributions from long term capital gains	—			—			—			—			—			—			—			(0.38)			(0.22)			(0.02)
Distributions from tax return of capital	(0.80)			—			—			—			—			—			—			—			—			(0.09)
Issuance/repurchase of common stock(2)	—			—			—			0.01			—			(0.03)			—			—			0.02			—
Net asset value per share at end of year	$	9.19		$	12.85		$	12.09		$	13.47		$	15.18		$	11.85		$	12.46		$	13.10		$	14.12		$	14.82

Per share market value, end of period	$	4.76		$	8.07		$	11.70		$	10.15		$	10.90		$	7.15		$	11.17		$	10.60		$	11.90		$	13.76
Total return based on market value(3)	(31.3)		%	(19.7)		%	30.2		%	4.4		%	66.8		%	(24.0)		%	18.3		%	3.5		%	(4.7)		%	32.3		%
Total return based on net asset value(4)	(16.7)		%	23.7		%	1.4		%	(0.6)		%	40.2		%	13.6		%	6.7		%	7.8		%	5.0		%	10.9		%
Shares outstanding at end of period	13,398,078			13,398,078			13,398,078			13,398,078			13,422,413			13,409,559			13,376,836			13,357,337			13,340,217			9,700,297
Weighted-average shares outstanding	13,398,078			13,398,078			13,398,078			13,417,410			13,413,861			13,394,005			13,364,244			13,348,203			12,403,706			9,693,801
Ratio/Supplemental Data (in thousands except ratios)
Average net asset value(5)	$	147,661		$	157,621		$	173,265		$	194,068		$	178,628		$	148,175		$	171,889		$	182,468		$	171,631		$	142,818
Net asset value at end of year	$	123,188		$	172,225		$	162,004		$	180,423		$	203,744		$	158,956		$	166,627		$	175,023		$	188,336		$	143,778
Net investment income	$	12,384		$	16,712		$	20,160		$	18,352		$	13,450		$	12,295		$	19,098		$	18,385		$	15,877		$	14,145
Ratio of total expenses, net to average net assets(6)	19.2		%	19.8		%	21.2		%	15.7		%	19.2		%	22.4		%	19.4		%	13.4		%	10.2		%	11.9		%
Ratio of total expenses, net and losses on impairment of goodwill and extinguishment of debt to average net assets(7)	19.5		%	19.8		%	21.4		%	15.7		%	21.8		%	23.7		%	—		%	—		%	—		%	—		%
Ratio of net investment income to average net assets(8)	8.4		%	10.6		%	11.6		%	9.5		%	7.5		%	8.3		%	11.1		%	10.5		%	8.4		%	9.8		%
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		%	0.6		%	—		%	—		%	—		%	—		%
Portfolio turnover(9)	13.2		%	23.1		%	8.8		%	28.0		%	54.9		%	28.1		%	21.2		%	41.9		%	50.4		%	18.1		%

(1)Calculated on the average share method.

(2)The issuance/repurchase of common stock on a per share basis reflects the net asset value change as a result of DRIP issuances, shares repurchased pursuant to the Stock Repurchase Program, the follow-on public offering of 3,625,000 shares during 2017, the anti-dilutive (dilutive) impact from changes in weighted-average shares outstanding during the period, and the difference between the per share amount distributed to common stockholders of record and the per share amount distributed based on the weighted-average shares of common stock outstanding during the applicable period.

(3)Calculated as ending market value less beginning market value, adjusted for distributions reinvested at prices based on the Company’s DRIP for the respective distributions.

(4)Calculated as ending net asset value less beginning net asset value, adjusted for distributions reinvested in 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% and 13.4% for the years ended December 31, 2020 and December 31, 2018, respectively.

(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% and 10.5% for the years ended December 31, 2020 and December 31, 2018, respectively.

(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.

Item 6. Reserved.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current and prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

•our ability and experience operating a BDC, or maintaining our tax treatment as a RIC under Subchapter M of the Code;

•our dependence on key personnel;

•our ability to maintain or develop referral relationships;

•our ability to replicate historical results;

•the ability of OFS Advisor to identify, invest in and monitor companies that meet our investment criteria;

•the belief that the carrying amounts of our financial instruments, such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such instruments and that such financial instruments are held with high credit quality institutions to mitigate the risk of loss due to credit risk;

•actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM Holdings;

•constraint on investment due to access to material nonpublic information;

•restrictions on our ability to enter into transactions with our affiliates;

•the use of borrowed money to finance a portion of our investments;

•the creation of leveraged lending opportunities as a result of the large amount of unfunded buyout commitments driving demand for leveraged buyouts over the next several years;

•our ability to incur additional leverage pursuant to Section 61(a)(2) of the 1940 Act and the impact of such leverage on our net investment income and results of operations;

•competition for investment opportunities;

•the belief that the seniority of our debt investments in a borrower’s capital structure may provide greater downside protection against adverse economic changes, including those caused by the impacts of 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 on our business, our portfolio companies, our industry and the global economy;

•the percentage of investments that will bear interest on a floating rate or fixed rate basis;

•the holding period of our investments;

•the impact of alternative reference rates on our business, including potential additional interest rate reductions approved by the U.S. Federal Reserve, which may impact our investment income, cost of funding and the valuation of our investments;

•our ability to raise debt or equity capital as a BDC;

•the timing, form and amount of any distributions from our portfolio companies;

•the impact of a protracted decline in the liquidity of credit markets on our business;

•the impact of current political, economic and industry conditions, including changes in the interest rate environment, inflation, significant market volatility, supply chain and labor market disruptions, including those as

a result of strikes, work stoppages or accidents, resource shortages and other conditions affecting the financial and capital markets, which, in turn, impacts our business prospects and the prospects of our portfolio companies;

•the general uncertainty surrounding the financial and political stability of the United States, the United Kingdom, the Middle East, the European Union, South America and China;

•the general economy and its impact on the industries in which we invest;

•the belief that we have sufficient levels of liquidity to support our existing portfolio companies;

•the belief that our cash and cash equivalent balances are not exposed to any significant credit risk;

•our ability to consummate credit facilities in the future on commercially reasonable terms, if at all;

•the effect of laws or regulations, including accounting pronouncements and rule issuances, governing our operations;

•the ability to continue generating strong risk-adjusted net returns by assembling a diversified portfolio of investments across a broad range of industries;

•the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, cybersecurity attacks and the increasing use of artificial intelligence and machine learning technology;

•the need and availability of additional capital on favorable terms to finance growth given our expectation to distribute substantially all of our net ordinary income and net realized capital gains to our stockholders;

•the fluctuation of the fair value of our investments due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value; and

•the ability to secure financial maintenance covenants in the loans we invest.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Annual Report on Form 10-K should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include, among others, those described or identified in “Part 1, Item 1A. Risk Factors” in this Annual Report on Form 10-K. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Annual Report on Form 10-K.

We have based the forward-looking statements on information available to us on the date of this Annual Report on Form 10-K. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The forward-looking statements and projections contained in this annual report on Form 10-K are excluded from the safe harbor protection provided by Section 21E of the Securities Exchange Act.

The following analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes thereto contained elsewhere in this Annual Report on Form 10-K.

Overview

Key performance metrics per common share are presented below:


	December 31, 2025		December 31, 2024
Net asset value	$	9.19	$	12.85


	Year Ended December 31,
	2025		2024		2023
Net investment income	$	0.92	$	1.25	$	1.50
Net increase (decrease) in net assets resulting from operations	(2.47)		2.12		(0.04)
Distributions declared	1.19		1.36		1.34

Our NAV per common share decreased from $12.85 at December 31, 2024 to $9.19 at December 31, 2025, primarily due to net losses on our investment portfolio of $45.0 million, or $3.35 per common share. For the year ended December 31, 2025, our aggregate distributions of $1.19 per common share exceeded our net investment income of $0.92 per common share.

During the year ended December 31, 2025, net investment income decreased $4.3 million compared to the prior year. During the year ended December 31, 2025, total investment income decreased by $7.3 million, primarily due to a decrease in interest income of $4.9 million, while total expenses decreased by $2.9 million, primarily due to a decrease in incentive fees of $2.4 million. See “—Results of Operations” for additional details.

Our weighted-average performing income yield on interest-bearing investments increased from 13.4% during the year ended December 31, 2024 to 13.6% during the year ended December 31, 2025. The increase in our income yield was primarily due to an increase in the effective yield of our Structured Finance Security portfolio, and partially offset by a decrease in the yield of our debt investments. See “—Portfolio Composition and Investment Activity’ for additional details.

Our total outstanding debt decreased from $248.4 million at December 31, 2024 to $220.5 million at December 31, 2025, primarily due to decreases in the outstanding debt balances of our BNP Facility and Unsecured Notes. Our weighted-average debt interest costs increased from 6.4% during the year ended December 31, 2024 to 6.6% for the year ended December 31, 2025, primarily due to the redemption of the 4.75% Unsecured Notes Due February 2026 and the issuance of $69.0 million of 7.50% Unsecured Notes Due July 2028 and a $25.0 million 8.00% Unsecured Note Due August 2029. See “—Liquidity and Capital Resources—Contractual Obligations and Off-Balance Sheet Arrangements” and “—Recent Developments” for additional details.

During the year ended December 31, 2025, our portfolio experienced net losses of $45.0 million, comprised of net unrealized depreciation, net of deferred tax expense, of $32.8 million and net realized losses, net of tax expense, of $12.2 million. During the year ended December 31, 2025, our net unrealized depreciation of $32.8 million was primarily driven by net unrealized depreciation of $23.0 million on our equity investments and net unrealized depreciation of $8.9 million on our current non-accrual loans. During the year ended December 31, 2025, our net realized loss was primarily due to net realized losses of $6.9 million and $4.8 million related to the sale of Structured Finance Securities and debt investments, respectively. As of December 31, 2025, our portfolio had non-accrual loans with an aggregate fair value of $14.4 million, or 4.2% of our total investments at fair value, compared to non-accrual loans with an aggregate fair value of $20.8 million, or 5.1% of our total investments at fair value, at December 31, 2024.

As of December 31, 2025, our common equity investment in Pfanstiehl Holdings, Inc., a global manufacturer of high-purity pharmaceutical ingredients, accounted for 23.2% of our portfolio at fair value and 64.5% of our total net assets, respectively. During the year ended December 31, 2025, the fair value of our investment in the common equity of Pfanstiehl Holdings, Inc. decreased by $9.9 million, or $0.74 per common share, to $79.4 million. The value of this investment is substantially comprised of unrealized appreciation of $79.2 million. The valuation’s unobservable inputs incorporate discounts for the minority-interest and illiquid nature of the security; however, the valuation, in accordance with fair value concepts, is based on assumptions applicable to an orderly transaction between market participants and does not reflect the impact of a forced sale or entity-specific liquidity constraints. As a result, there can be no assurance that we would be able to realize this value in a timely manner, or at all. A deterioration or improvement in the operating performance of the company or other factors underlying the valuation of this investment could have a material impact on our NAV.

As of December 31, 2025, the aggregate amount outstanding of the senior securities issued by us was $220.5 million, for which our asset coverage was 156%, exceeding our minimum asset coverage requirement of 150% under the 1940 Act. As of December 31, 2025, we remained in compliance with all applicable covenants under our outstanding debt facilities. As of December 31, 2025, we had an unused commitment of $20.5 million under our Banc of California Credit Facility, subject to the terms of the borrowing base and other covenants. As of December 31, 2025, we had unfunded investment commitments of $13.2 million to fund outstanding commitments to portfolio companies.

On February 26, 2026, the 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.

Critical Accounting Policies and Significant Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. Critical accounting policies are those that require management to make subjective or complex judgments about the effect of matters that are inherently uncertain and may change in subsequent periods. Changes that may be required in the underlying assumptions or estimates in these areas could have a material impact on our current and future financial condition and results of operations.

Our critical accounting policies and estimates are those relating to revenue recognition and fair value estimates. Management has discussed the development and selection of each critical accounting policy and estimate with the Audit Committee of the Board. For a description of our revenue recognition and fair value policies, see “Item 8. Financial Statements and Supplementary Data—Note 2” of this report.

Revenue recognition. Interest Income: Our recognition of interest income from our loan and CLO debt investments is recognized on an accrual basis based upon the outstanding principal amount and contractual interest terms of the debt investment. Net Loan Fees are amortized or accreted into interest income over the life, or estimated life in the case of CLO debt securities, of the respective debt investment. Upon the prepayment of a debt investment, we accelerate the remaining Net Loan Fees into interest income.

PIK Income: Our recognition of PIK interest and dividends includes ongoing assessment of collectibility. We discontinue accrual of PIK income when there is reasonable doubt that the income will ultimately be collected. This includes assessments of the fair value of the investment relative to par or cost and other judgments of management. PIK income is included in our ICTI and, therefore, affects the amount we are required to pay to our stockholders in the form of distributions in order to maintain our tax treatment as a RIC, even though we may have not yet collected the cash.

CLO Subordinated Notes and Loan Accumulation Facilities: Interest income on our CLO subordinated note securities is recognized in accordance with ASC Subtopic 325-40, Beneficial Interests in Securitized Financial Assets (“ASC 325-40”), which contemplates estimating an effective yield to expected redemption utilizing estimated future cash flows from the investment. The expected cash flows of the underlying portfolio and to our security are developed utilizing a number of assumptions, including, among others, estimates of default rates, prepayment rates, redemption timing, reinvestment prices, and liquidation-redemption price. These assumptions, and correspondingly the estimated cash flows and accretable yields, are reviewed and updated at each payment date, generally quarterly. These assumed cash flows represent significant estimates and are subject to a reasonable possibility of near-term changes due to economic and credit market conditions, and the effect of these changes could be material. We ultimately may not realize income accreted on CLO subordinated note securities. The valuation of our Structured Finance Securities makes use of similar assumptions, plus a discount rate assumption, to develop estimated cash flows that are discounted to estimated net present value.

Interest income from our investments in Loan Accumulation Facilities is recognized on an accrual basis based on an estimated yield. Income notes associated with our Loan Accumulation Facility investments generally earn returns equal to the actual income earned on facility assets less costs of senior financing and manager costs. We periodically evaluate the realizability of such amounts and, if necessary, subsequently adjust the estimated yield.

An optional redemption feature of a CLO allows a majority of the holders of the CLO subordinated notes issued by the CLO issuer, after the end of a specified non-call period, to cause the redemption of the CLO subordinated notes issued by the CLO with proceeds paid through either the liquidation of the CLO’s assets or through a refinancing with new debt. The optional redemption is effectively a voluntary prepayment of the CLO subordinated notes issued by the CLO prior to the stated maturity of such securities. When the optional redemption feature has been exercised on a CLO subordinated note, distributions received are first recorded as a return of capital until its cost basis is reduced to zero and recorded as realized gains thereafter. The principal amount of the CLO subordinated notes is not reduced for distributions received until the security is fully redeemed. Commencing on the optional redemption date, we cease accruing income on our CLO subordinated notes that will be redeemed. CLO subordinated notes that have been optionally redeemed are realized when the deal has been fully liquidated and discharged.

Non-Accrual Loans: We review, for placement on non-accrual status, all loans and CLO mezzanine debt investments when they become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected. 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. Interest income and 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 or until a restructuring occurs, and, in management’s judgment, it is probable that we will collect all principal and interest from the investment.

Acquisition Cost of Investments: Our lending activities may involve the acquisition of multiple financial instruments or rights either in an initial transaction, or in subsequent or “follow-on” transactions, including amendments to existing securities. These financial instruments can include loans, preferred and common stock, warrants, or membership interests in limited liability companies. Acquired rights can include fixed or variable fees that can be either guaranteed or contingent upon operating performance of the underlying portfolio companies. Moreover, these fees may be payable in cash or additional securities. The revenue recognized on these instruments is a function of the fee or other consideration allocated to them, including amounts allocated to loan syndication fees at the time of acquisition.

These allocations are generally based on the relative fair value of the instruments at the time of the transaction, a process involving fair value estimates which is also a critical accounting policy and significant estimate. Once determined, these

allocations directly affect the discount/premium and yield on debt securities, the cost and net gains/losses on equity securities, and ICTI. These allocations require an understanding of the terms and conditions of the underlying agreements and requires significant management judgment.

Fair value estimates. As of December 31, 2025, total investments of $342.0 million, representing approximately 99% of our total assets, were carried at fair value on the consolidated statements of assets and liabilities. As discussed more fully in “Item 8. Financial Statements and Supplementary Data—Note 2”, GAAP requires us to categorize fair value measurements according to a three-level valuation hierarchy. The hierarchy gives the highest priority to quoted, active market prices for identical assets and liabilities (Level 1) and the lowest priority to valuation techniques that require significant management judgment because one or more of the significant inputs are unobservable in the market place (Level 3). All of our investments carried at fair value are classified as either Level 2 and Level 3, with 96% of our investments classified as Level 3 as of December 31, 2025. In accordance with our investment strategy, we typically do not hold equity securities or other instruments that are actively traded on an exchange (Level 1).

On September 7, 2022, pursuant to Rule 2a-5, our Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to our investments for which market quotations are not readily available, and, as prescribed in Rule 2a-5, the Board maintains oversight of OFS Advisor in its capacity as valuation designee. We have engaged third-party valuation firms to provide assistance to OFS Advisor in determining the fair value of the majority of our investments.

As described in “Item 8. Financial Statements and Supplementary Data—Note 5”, under the oversight of the Board, we follow a process to determine these unobservable inputs used in the fair value estimates of our investments. The most significant unobservable inputs in the Level 3 fair value measurements are the discount rates (discounted cash flows approach) and EBITDA or revenue multiples (market approach). Investments classified as Level 2 are measured on the basis of Indicative Prices provided by pricing services.

Our discounted cash flow valuations involve a determination of discount rate commensurate with the risk inherent in each investment. OFS Advisor, with the assistance of independent third-party valuation firms, uses two primary methods to estimate discount rates on Portfolio Company Investments, as applicable: a method based upon a hypothetical recapitalization of the entity given its current operating performance and current market conditions; and a synthetic debt rating method, which assigns a surrogate debt rating to the entity based on known industry standards for assigning such ratings and then estimates the discount rate based on observed market yields for actual rated debt. OFS Advisor may also use a relative value method to estimate yields, which involves estimating the discount rate of non-traded subject debt investments based on an expected or assumed relationship between Indicative Prices on traded debt and the subject debt for a portfolio company. All methods for estimating the discount rate generally involve calibration of unobservable inputs utilized in estimating the discount rate on the subject investment to its internal rate of return at close or purchase date. These methods generally produce a range of discount rates, and we generally select the midpoint of the range for use in fair value measures, subject to considerations of any prepayment fees associated with the debt.

Our market approach valuations, generally applied to equity investments and investments in impaired debt, involve a determination of an enterprise value multiple to a financial performance metric of the portfolio company, generally trailing historical EBITDA or revenue. These determinations are based on identification of a comparable set of publicly traded companies and determination of a public-to-private liquidity adjustment factor, generally through calibration to transaction prices in the subject investment instrument. We may also utilize other portfolio-company earnings metrics to determine enterprise value, such as forecast EBITDA or revenue, or a weighting of multiple factors. At times, we may also use a discounted cash flow technique in valuing our equity securities or a combination of multiple valuation approaches. These methods generally produce a range of multiplier values and we generally select the midpoint of the range for fair value measures.

The following table illustrates the impact of our fair value measures if we selected the low or high end of the range for all investments at December 31, 2025 (in thousands):


	Fair Value at December 31, 2025		Range of Fair Value
Investment Type			Low-end		High-end
Debt investments:
First lien	$	170,405	$	166,657	$	174,483
Second lien	9,409		8,803		11,900


Structured Finance Securities:
Subordinated notes	53,531		50,261		56,475
Mezzanine debt	8,074		7,925		8,222


Equity investments:
Preferred equity	12,567		10,504		14,869
Common equity, warrants and other	88,029		80,871		95,408
	$	342,015	$	325,021	$	361,357

Related Party Transactions

We have entered into a number of business relationships with affiliated or related parties, including the following:

•The Investment Advisory Agreement with OFS Advisor to manage our operating and investment activities. Under the Investment Advisory Agreement, we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) as well as an incentive fee based on our investment performance. See “Part 1, Item 1—Management and Other Agreements” and “Item 8—Financial Statements and Supplementary Data—Note 3.”

•The Administration Agreement with OFS Services, an affiliate of OFS Advisor, to provide us with the office facilities and administrative services necessary to conduct our operations. See “Part 1, Item 1—Management and Other Agreements” and “Item 8–Financial Statements and Supplementary Data—Note 3.”

•A license agreement with OFSAM, the parent company of OFS Advisor, under which OFSAM has agreed to grant us a non-exclusive, royalty-free license to use the name “OFS.” Under this agreement, we have a right to use the “OFS” name for so long as OFS Advisor or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we have no legal right to the “OFS” name. This license agreement will remain in effect for so long as the Investment Advisory Agreement with OFS Advisor is in effect.

For the years ending December 31, 2025, 2024 and 2023, OFS Advisor agreed to reduce its base management fee attributable to all of the OFSCC-FS Assets to 0.25% per quarter (1.00% annualized) of the average value of the OFSCC-FS Assets (other than cash and cash equivalents but including assets purchased with borrowed amounts) at the end of the two most recently completed calendar quarters. 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’s services under the Investment Advisory Agreement are not exclusive to us and OFS Advisor is free to furnish similar services to other entities, including other funds advised or sub-advised by OFS Advisor, so long as its services to us are not impaired. OFS Advisor also serves as the investment adviser to other funds, including HPCI and OCCI. Additionally, OFS Advisor provides sub-advisory services to: (i) CMFT Securities Investments, LLC, a wholly owned subsidiary of CIM Real Estate Finance Trust, Inc., a corporation that qualifies as a real estate investment trust; and (ii) CIM Real Assets & Credit Fund, an externally managed registered investment company that operates as an interval fund that invests primarily in a combination of real estate, credit and related investments.

The 1940 Act generally prohibits BDCs from knowingly participating in certain transactions with their affiliates without the prior approval of their independent directors and, in some cases, of the SEC. Those transactions include purchases and sales, and so-called “joint” transactions, in which a BDC and one or more of its affiliates engage in certain types of profit-making activities. Any person that owns, directly or indirectly, five percent or more of a BDC’s outstanding voting securities will be considered an affiliate of the BDC for purposes of the 1940 Act, and a BDC generally is prohibited from engaging in purchases from, sales of assets to, or joint transactions with, such affiliates, absent the prior approval of the BDC’s independent

directors. Additionally, without the approval of the SEC, a BDC is prohibited from engaging in purchases from, sales of assets to, or joint transactions with, the BDC’s officers, directors, and employees, and advisor (and its control affiliates).

The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with certain affiliates absent an order from the SEC permitting the BDC to do so. On August 4, 2020, we received our existing Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions. We are generally permitted to co-invest with Affiliated Funds if, under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.

Conflicts may arise when we make an investment in conjunction with an investment being made by an Affiliated Account, or in a transaction where an Affiliated Account has already made an investment. Investment opportunities are, from time to time, appropriate for more than one account in the same, different or overlapping securities of a portfolio company’s capital structure. Conflicts arise in determining the terms of investments, particularly where these accounts may invest in different types of securities in a single portfolio company. Potential conflicts arise when addressing, among other things, questions as to whether payment obligations and covenants should be enforced, modified or waived, or whether debt should be restructured, modified or refinanced. See “Item 1. Business—Regulations—Conflicts of Interest” and “Item 1A. Risk Factors—Risks Related to OFS Advisor and its Affiliates—We have potential conflicts of interest related to the purchases and sales that OFS Advisor makes on our behalf and/or on behalf of Affiliated Accounts.”

Portfolio Composition and Investment Activity

Our portfolio consists of debt and equity investments, as well as indirect investments in such securities through investment in other investment companies including Structured Finance Securities.

Portfolio Composition. As of December 31, 2025, the fair value of our debt investment portfolio totaled $179.8 million in 34 portfolio companies, of which 95% and 5% were first lien and second lien loans, respectively. We also held equity investments in 15 portfolio companies with a fair value of $100.6 million and 14 investments in Structured Finance Securities with a fair value of $61.6 million. Certain portfolio investments represent a larger percentage of our total assets or net assets and may involve longer expected holding periods or more limited liquidity alternatives than smaller positions, which management and the Board consider in connection with portfolio monitoring and valuation.

Portfolio Yields. The following table presents weighted-average yield metrics for our portfolio:


	Year Ended December 31,
	2025		2024
Weighted-average performing income yield(1):
Debt investments	12.2	%	13.2	%
Structured Finance Securities	16.9	%	13.9	%
Interest-bearing investments	13.6	%	13.4	%

Weighted-average realized yield:
Interest-bearing investments(2)	11.7	%	11.8	%

(1) Performing income yield is calculated as (a) the actual amount earned on performing interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total performing interest-bearing investments at amortized cost.

(2) Realized yield is calculated as (a) the actual amount earned on interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total interest-bearing investments at amortized cost, in each case, including debt investments on non-accrual status and non-performing Structured Finance Securities.

For the year ended December 31, 2025, our weighted-average performing income yield increased 0.2% compared to the prior year, primarily due to an increase in the effective yield of our CLO subordinated note securities, partially offset by a decrease in the income yield on our debt investments as a result of lower SOFR rates driven by Federal Reserve rate reductions.

The weighted-average yield of our investments is not the same as a return on investment for our stockholders, but rather the gross investment income from our investment portfolio before the payment of all of our fees and expenses. There can be no assurance that the weighted-average yield will remain at its current level. As of December 31, 2025, 89% of our total loan portfolio, at fair value, consisted of variable rate investments, generally indexed to SOFR. See additional information under “Item 7A. Quantitative and Qualitative Disclosures About Market Risk.”

Debt and Equity Investments. The following table summarizes the composition of our debt and equity investments by type as of December 31, 2025 and 2024 (dollar amounts in thousands):


	December 31, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
First lien debt investments(1)	$	188,236	$	170,405	$	209,696	$	189,874
Second lien debt investments	24,924		9,409		42,313		34,331

Preferred equity	14,287		12,567		10,190		12,248
Common equity, warrants and other	23,320		88,029		12,365		96,337
Total debt and equity investments	$	250,767	$	280,410	$	274,564	$	332,790
Number of portfolio companies	43		43		46		46

(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position), as of December 31, 2025, with an amortized cost and fair value of $130.3 million and $116.3 million, respectively. As of December 31, 2024, the amortized cost and fair value of unitranche investments was $128.1 million and $119.2 million, 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.

As of December 31, 2025, 100% of our loan portfolio and 53% of our total portfolio consisted of first lien and second lien loans, based on fair value.

As of December 31, 2025, the three largest industries of our debt and equity investments by fair value, were (1) Manufacturing (34.6%), (2) Health Care and Social Assistance (17.5%) and (3) Real Estate and Rental and Leasing (8.0%), totaling approximately 60.1% of our debt and equity investment portfolio. For a full summary of our investment portfolio by industry, see “Note 4, Investments” to the consolidated financial statements included in “Item 8. Financial Statements and Supplementary Data” of this report.

The following table presents our ten largest investments by issuer based on fair value as of December 31, 2025 (dollar amounts in thousands):


Issuer Name	Type	Amortized Cost		Fair Value		% of Total Portfolio, at Fair Value		% of Net Assets, at Fair Value
Pfanstiehl Holdings, Inc.	Equity	$	217	$	79,421	23.2	%	64.5	%
Kreg LLC	Debt	18,568		18,073		5.3		14.7
SS Acquisition, LLC	Debt	17,221		17,328		5.1		14.0
Inergex Holdings, LLC	Debt	16,906		16,960		5.0		13.9
Contract Datascan Holdings, Inc.	Equity	12,607		12,085		3.5		9.8
One GI LLC	Debt	12,561		11,419		3.3		9.3
Tolemar Acquisition, Inc.	Debt	14,946		10,645		3.1		8.6
Boca Home Care Holdings, Inc.	Debt and Equity	10,840		10,374		3.0		8.4
Envocore Holding, LLC (F/K/A LRI Holding, LLC)	Debt and Equity	17,473		8,549		2.5		6.9
Canyon CLO 2019-1, Ltd.	Structured Finance Security	9,581		8,539		2.5		6.9
Total		$	130,920	$	193,393	56.5	%	157.0	%

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

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

Structured Finance Securities. The following table summarizes our Structured Finance Securities as of December 31, 2025 and December 31, 2024 (dollar amounts in thousands):


	December 31, 2025				December 31, 2024
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Subordinated notes	$	68,670	$	53,531	$	76,122	$	64,301
Mezzanine debt	8,963		8,074		12,861		12,574

Total Structured Finance Securities	$	77,633	$	61,605	$	88,983	$	76,875
Number of Structured Finance Securities	14		14		18		18

Non-performing Structured Finance Securities are securities that have not been optionally redeemed and have an effective yield of 0.0%, as remaining residual distributions are anticipated to be recognized as a return of capital. As of December 31, 2025, the amortized cost and fair value of non-performing Structured Finance Securities were $2.3 million and $0.2 million, respectively.

As of December 31, 2025, we had no Structured Finance Securities that have been optionally redeemed.

During the year ended December 31, 2025, we sold certain Structure Finance Securities for aggregate net proceeds of $12.0 million, resulting in an aggregate net realized loss of $6.9 million, of which $1.5 million was recognized in the current year net of reversal for previously recognized unrealized depreciation.

Investment Activity. The following is a summary of our cash investment activity for the years ended December 31, 2025 and 2024 (dollar amounts in millions):


	Year Ended December 31,
	2025		2024
Investments in debt and equity securities	$	30.9	$	66.0
Investments in Structured Finance Securities	19.6		27.4
Total investment purchases and originations	$	50.5	$	93.4
Proceeds from principal payments on portfolio investments	$	26.9	$	67.1
Proceeds from sales or redemptions of portfolio investments	46.8		46.1
Proceeds from distributions received from portfolio investments	14.9		15.6
Total proceeds from principal payments, sales or redemptions, and distributions received from portfolio investments	$	88.6	$	128.8

Non-cash Investment Activity

During the year ended December 31, 2025, we restructured our first lien debt investment in JP Intermediate B, LLC to, among other things, exchange our first lien debt investment for new first lien debt and common equity investments. The cost of the existing first lien debt investment was ascribed to the new investments received in the exchange, and no realized loss was recognized. As of December 31, 2025, these restructured investments had an amortized cost of and fair value of $4.5 million and $1.5 million, respectively. In connection with the completion of the restructuring transaction, we also invested $0.3 million in a new first lien facility.

During the year ended December 31, 2025, we restructured our first lien debt and common equity investments in SSJA Bariatric Management LLC, to, among other things, exchange our first lien debt and common equity investments for new first lien debt and common equity. The cost of the existing first lien debt and common equity investments was ascribed to the new investments received in the exchange, and no realized loss was recognized. As of December 31, 2025, these investments had an amortized cost and fair value of $13.5 million and $5.5 million, respectively. In connection with the completion of the restructuring transaction, we also invested $0.2 million in a new first lien facility.

See “Part 1, Item 1A. Risk Factors—Risks Related to Our Investments—The documents governing our Broadly Syndicated Loans, the loans to our portfolio companies and the loans underlying our CLO investments may allow for “priming transactions.”

Risk Monitoring

We categorize debt investments into seven risk categories based on relevant information about the ability of borrowers to service their debt. For additional information regarding our risk categories, see “Part 1, Item 1. Business—Portfolio Review/Risk Monitoring.” The following table shows the classification of our debt investments portfolio by risk category as of December 31, 2025 and 2024 (dollar amounts in thousands):


	Debt Investments as of December 31,
	2025						2024
Risk Category	Amortized Cost		Fair Value		% of Debt Investments, at Fair Value		Amortized Cost		Fair Value		% of Debt Investments, at Fair Value
1 (Low Risk)	$	—	$	—	—	%	$	—	$	—	—	%
2 (Below Average Risk)	—		—		—		—		—		—
3 (Average)	131,812		128,363		71.4		160,017		157,941		70.5
4 (Special Mention)	67,235		44,209		24.6		73,388		57,003		25.4
5 (Substandard)	14,113		7,242		4.0		14,113		7,159		3.2
6 (Doubtful)	—		—		—		4,491		2,102		0.9
7 (Loss)	—		—		—		—		—		—
	$	213,160	$	179,814	100.0	%	$	252,009	$	224,205	100.0	%

Non-Accrual Loans

As of December 31, 2025

The following table shows the classification of our debt investments on non-accrual status (dollar amounts in thousands):


	December 31, 2025
	Amortized Cost		Fair Value
First lien debt	$	14,326	$	7,491
Second lien debt	22,241		6,909

Total	$	36,567	$	14,400

As of December 31, 2024

The following table shows the classification of our debt investments on non-accrual status (dollar amounts in thousands):


	December 31, 2024
	Amortized Cost		Fair Value
First lien debt	$	32,540	$	18,785
Second lien debt	6,584		2,018

Total	$	39,124	$	20,803

Results of Operations

Key Financial Measures. The following is a discussion of the key financial measures that management employs in reviewing the performance of our operations.

Net Investment Income. NII is a key performance metric in obtaining part of our investment objective of providing current income to stockholders. NII can be a general indicator of ICTI and the amount of distributions that will be required to be made due to RIC requirements. One of our main objectives is to increase NII, and, in turn, increase distributions to stockholders.

Net Gain (Loss) on Investments. Net gain (loss) on investments consists of the sum of: (a) realized gains and losses from the sale, redemption or write-off of portfolio investments, net of taxes; and (b) net unrealized appreciation or depreciation on portfolio investments, net of deferred taxes. In the period in which a realized gain or loss is recognized, such gain or loss will be offset by the reversal of previously recognized unrealized appreciation or depreciation, and the net gain (loss) recognized in that period will generally be smaller. The net unrealized appreciation or depreciation on debt securities is also reversed when those investments are redeemed or paid off prior to maturity.

Net Increase (Decrease) in Net Assets Resulting From Operations: Net increase (decrease) in net assets resulting from operations is a key metric in assessing our performance and the overall profit or loss of our operations.

Net Asset Value: NAV is a key performance metric related to our investment objective to provide our stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. NAV per share is increased (decreased) by our net increase (decrease) in net assets resulting from operations, decreased by distributions paid to common stockholders, and increased (decreased) by any capital share transactions depending on if the price transacted is accretive or dilutive to NAV, as applicable. As a result, annual comparisons of net increase (decrease) in net assets resulting from operations may not be meaningful.

Portfolio Yield: Portfolio yield is a key financial metric of our investment portfolio in order to achieve our investment objective of providing current income to stockholders. Portfolio yield is a gross figure and does not contemplate changes in our costs, including on our debt and other expenses. See “Portfolio Composition and Investment Activity—Portfolio Yields” for additional information.

We do not believe that our historical operating performance is necessarily indicative of our future results of operations that we expect to report in future periods. Our investment strategy is to maintain a leveraged credit investment portfolio, primarily focused on investments in middle-market companies in the United States, including debt investments and, to a lesser extent, equity investments, including warrants and other minority equity securities. Moreover, as a BDC and a RIC, we are also subject to certain constraints on our operations, including, but not limited to, limitations imposed by the 1940 Act and the Code. For the reasons described above, the results of operations described below may not necessarily be indicative of the results we expect to report in future periods.

Comparison of years ended December 31, 2025, 2024 and 2023. Consolidated operating results for the years ended December 31, 2025, 2024 and 2023 are as follows (in thousands):


	Year Ended December 31,
	2025		2024		2023
Investment income
Interest income:
Cash interest income	$	24,010	$	30,454	$	39,915
PIK interest income	1,373		1,635		1,461
Net Loan Fee amortization	988		1,626		1,730
Accretion of interest income on CLO subordinated notes	11,558		8,731		10,857
Other interest income	466		888		706
Total interest income	38,395		43,334		54,669
Dividend income:
Cash dividends	546		3,027		659
PIK dividends	1,346		1,098		1,136
Total dividend income	1,892		4,125		1,795
Fee income:
Prepayment and other fees	118		136		383
Syndication fees	286		369		96
Total fee income	404		505		479
Total investment income	40,691		47,964		56,943
Total expenses	28,307		31,252		36,783
Net investment income	12,384		16,712		20,160
Net gain (loss) on investments	(44,973)		11,730		(20,412)
Loss on extinguishment of debt	(504)		—		(213)

Net increase (decrease) in net assets resulting from operations	$	(33,093)	$	28,442	$	(465)

Comparison of investment income for the years ended December 31, 2025 and 2024.

Total interest income decreased $4.9 million during the year ended December 31, 2025 compared to the prior year, primarily due to a decrease in cash interest income, partially offset by an increase in accretion of interest income on CLO subordinated notes. The decrease in cash interest income compared to the prior year was primarily due to a smaller average investment portfolio, at cost, and the impact of lower SOFR rates driven by the U.S. Federal Reserve rate cuts.

During the year ended December 31, 2025, dividend income decreased $2.2 million compared to the prior year. The decrease in cash dividends was primarily due to non-recurring dividends of $1.9 million recognized during the prior year related to the sale of a preferred equity investment.

During the year ended December 31, 2025, we recognized total PIK income of $2.7 million, which represented 6.7% of total investment income. During the year ended December 31, 2024, we recognized total PIK income of $2.7 million, which represented 5.7% of total investment income.

Fee income is primarily comprised of unused fees, prepayment fees and syndication fees that generally result from periodic transactions rather than from holding portfolio investments, and are considered non-recurring. We may receive syndication fees on investments where OFS Advisor sources, structures and arranges the lending group. During the year ended December 31, 2025, total fee income decreased $0.1 million compared to the prior year, primarily due to a decrease in syndication fees.

Comparison of investment income for the years ended December 31, 2024 and 2023.

Total interest income decreased $11.3 million during the year ended December 31, 2024 compared to the prior year, primarily due to a decrease in cash interest income of $9.5 million. The decrease in cash interest income was primarily due a smaller average investment portfolio, at cost.

During the year ended December 31, 2024, dividend income increased $2.3 million compared to the prior year, primarily due to an increase of $2.4 million in cash dividends. The increase in cash dividends was primarily due to non-recurring dividends of $1.9 million from TRS Services, LLC recognized upon the sale of our preferred equity investment, as well as a $0.5 million increase in dividends from our common equity investment in Pfanstiehl Holdings, Inc.

During the year ended December 31, 2024, we recognized total PIK income of $2.7 million, which represented 5.7% of total investment income. During the year ended December 31, 2023, we recognized total PIK income of $2.6 million, which represented 4.6% of total investment income. During the year ended December 31, 2024, we recognized $1.0 million of PIK interest on a second lien debt investment that has a loan contract comprised of only PIK interest.

Fee income is primarily comprised of unused loan commitment fees, prepayment fees and syndication fees that generally result from periodic transactions rather than from holding portfolio investments, and are considered non-recurring. We may receive syndication fees on investments where OFS Advisor sources, structures and arranges the lending group. During the year ended December 31, 2024, total fee income remained stable compared to the prior year.

Expenses. Operating expenses for the years ended December 31, 2025, 2024 and 2023, are presented below (in thousands):


	Year Ended December 31,
	2025		2024		2023
Interest expense	$	16,510	$	16,648	$	19,482
Base management fees	5,769		5,993		7,218
Income Incentive Fee	1,758		4,178		5,040

Professional fees	1,623		1,630		1,681
Administration fees	1,557		1,521		1,680
Other expenses	1,090		1,282		1,682
Total expenses	$	28,307	$	31,252	$	36,783

Comparison of expenses for the years ended December 31, 2025 and 2024.

Interest expense for the year ended December 31, 2025 decreased $0.1 million compared to the prior year, primarily due to a decrease of $9.1 million in our average outstanding debt balances compared to the prior year, partially offset by an increase in the weighted-average effective interest rate of our outstanding debt related to the partial redemption of the 4.75% Unsecured Notes Due February 2026 and the issuance of $69.0 million of 7.50% Unsecured Notes Due July 2028 and a $25.0 million 8.00% Unsecured Note Due August 2029.

Base management fee expense for the year ended December 31, 2025 decreased $0.2 million compared to the prior year, primarily due to our average investment portfolio at fair value decreasing from $404.7 million during the year ended December 31, 2024 to $381.5 million during the year ended December 31, 2025.

The Income Incentive Fee for the year ended December 31, 2025 decreased $2.4 million compared to the prior year, primarily due to a decrease in net investment income.

Comparison of expenses for the years ended December 31, 2024 and 2023.

Interest expense for the year ended December 31, 2024 decreased $2.8 million compared to the prior year, primarily due to a decrease of $63.6 million in our average outstanding debt balances compared to the prior year. During the year ended December 31, 2024, we fully repaid our outstanding SBA debentures totaling $31.9 million and reduced the total amount outstanding under the BNP Facility by $23.2 million.

Base management fee expense for the year ended December 31, 2024 decreased $1.2 million compared to the prior year, primarily due to our average investment portfolio at fair value decreasing from $474.5 million during the year ended December 31, 2023 to $404.7 million during the year ended December 31, 2024.

The Income Incentive Fee for the year ended December 31, 2024 decreased $0.9 million compared to the prior year, primarily due to a decrease in our average interest-bearing investment portfolio, at cost, which reduced our net investment income return on net assets during the current year.

Other expenses for the year ended December 31, 2024 decreased $0.4 million compared to the prior year, primarily due to the reduction in intangible asset amortization of $0.3 million related to the full repayment of our outstanding SBA debentures in March 2024.

Net realized and unrealized gain (loss) on investments. Net realized and unrealized gain (loss) on investments, by investment type, for the years ended December 31, 2025, 2024 and 2023, are presented below (in thousands):


	Year Ended December 31,
	2025		2024		2023
Debt investments	$	(10,292)	$	(7,340)	$	(5,174)
Equity investments	(23,517)		17,118		(9,744)
Structured Finance Securities	(10,853)		2,471		(5,374)
Current/deferred income tax expense	(310)		(519)		(120)
Net gain (loss) on investments	$	(44,972)	$	11,730	$	(20,412)

Year ended December 31, 2025

OFS Capital Corp 10-K