Third Quarter 2026
Filed Nov 3, 2026Neostellar Capital Corp. Reports Third Quarter 2026 Financial Results; Net Asset Value of $12.64 Per Share as of September 30, 2026; Board of Directors Approves Extension of Share Repurchase Program
The Company reported a quarterly net decrease in net assets resulting from operations of $ (21.2 ) million, driven by realized and unrealized investment losses, while net asset value per share remained materially above the prior-year level and the portfolio's fair value increased from December 31, 2025.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total investment income, three months ended September 30, 2026GAAP | $271.8B | – | – |
| Interest income, three months ended September 30, 2026GAAP | $271.8B | – | – |
| Dividend income, three months ended September 30, 2026GAAP | — | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $ 4,302,942 | – | – |
| Management fees, three months ended September 30, 2026GAAP | $ 1,585,769 | – | – |
| Costs incurred under Administration Agreement, three months ended September 30, 2026GAAP | $282.7B | – | – |
| Compensation expense, three months ended September 30, 2026GAAP | $197.4B | – | – |
| Directors’ fees, three months ended September 30, 2026GAAP | $146.3B | – | – |
| Interest expense, three months ended September 30, 2026GAAP | $ 1,353,844 | – | – |
| Professional fees, three months ended September 30, 2026GAAP | −$132.5B | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | — | – | – |
| Offering expenses, three months ended September 30, 2026GAAP | $573.0B | – | – |
| Other expenses, three months ended September 30, 2026GAAP | $296.6B | – | – |
| Net investment loss, three months ended September 30, 2026GAAP | $ (4,031,135 ) | – | – |
| Net investment loss per basic share, three months ended September 30, 2026GAAP | $ (0.15 ) | – | – |
| Net realized gain/(loss) on investments, three months ended September 30, 2026GAAP | $ (7,748,545 ) | – | – |
| Net realized gain/(loss) on investments per basic share, three months ended September 30, 2026GAAP | $ (0.29 ) | – | – |
| Realized loss on partial repurchase of 6.00% Notes due December 30, 2026, three months ended September 30, 2026GAAP | $ (11 ) | – | – |
| Net change in unrealized appreciation/(depreciation) of investments, three months ended September 30, 2026GAAP | $ (9,378,815 ) | – | – |
| Net change in unrealized appreciation/(depreciation) of investments per basic share, three months ended September 30, 2026GAAP | $ (0.35 ) | – | – |
| Net change in net assets resulting from operations, three months ended September 30, 2026GAAP | $ (21,158,506 ) | – | – |
| Net change in net assets resulting from operations per common share, basic, three months ended September 30, 2026GAAP | $ (0.80 ) | – | – |
| Net change in net assets resulting from operations per common share, diluted, three months ended September 30, 2026GAAP | $ (0.80 ) | – | – |
| Weighted-average common shares outstanding, basic, three months ended September 30, 2026GAAP | 26,473,222 | – | – |
| Weighted-average common shares outstanding, diluted, three months ended September 30, 2026GAAP | 26,473,222 | – | – |
| Net asset value per share at end of period, three months ended September 30, 2026GAAP | $ 12.64 | – | – |
| Per share market value at end of period, three months ended September 30, 2026other | $ 7.69 | – | – |
| Total return based on market value, three months ended September 30, 2026other | (38.68 )% | – | – |
| Total return based on net asset value, three months ended September 30, 2026other | (5.95 )% | – | – |
| Net assets at end of period, three months ended September 30, 2026GAAP | $ 334,698,480 | – | – |
| Total investment income, nine months ended September 30, 2026GAAP | $ 1,303,420 | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $ 32,667,731 | – | – |
| Net investment loss, nine months ended September 30, 2026GAAP | $ (31,364,311 ) | – | – |
| Net realized gain/(loss) on investments, nine months ended September 30, 2026GAAP | $ (1,808,512 ) | – | – |
| Net change in unrealized appreciation/(depreciation) of investments, nine months ended September 30, 2026GAAP | $ 148,946,715 | – | – |
| Net change in net assets resulting from operations, nine months ended September 30, 2026GAAP | $ 115,773,881 | – | – |
| Net change in net assets resulting from operations per common share, basic, nine months ended September 30, 2026GAAP | $ 4.46 | – | – |
| Net change in net assets resulting from operations per common share, diluted, nine months ended September 30, 2026GAAP | $ 3.89 | – | – |
| Total investments at fair value, September 30, 2026GAAP | $ 377,196,404 | – | – |
| Cash, September 30, 2026GAAP | 40,853,490 | – | – |
| Total assets, September 30, 2026GAAP | 419,063,525 | – | – |
| Total liabilities, September 30, 2026GAAP | 84,365,045 | – | – |
| Net assets, September 30, 2026GAAP | $ 334,698,480 | – | – |
Capital returns
- On October 28, 2026, the Board authorized an extension of the Share Repurchase Program until the earlier of October 31, 2027 or the repurchase of $64.3 million in aggregate amount of the Company’s common stock.
- The dollar value of shares that may yet be purchased under the Share Repurchase Program is approximately $25.0 million.
- Since inception of the Share Repurchase Program in August 2017, the Company has repurchased over 6.0 million shares of its common stock for an aggregate purchase price of approximately $39.3 million.
- During the quarter ended September 30, 2026, the Company repurchased an additional 1,984 of the 6.00% Notes under the Note Repurchase Program.
- As of September 30, 2026, the Company had repurchased 1,568,791 of the 6.00% Notes under the Note Repurchase Program.
- The aggregate principal dollar amount of 6.00% Notes that may yet be repurchased is approximately $35.8 million, or the remaining aggregate principal amount, of its 6.00% Notes.
What drove it
- The Company formalized its partnership with Magnetar through Neostellar Advisors, expanding resources for sourcing and due diligence and flexibility to evaluate and structure investments.
- The Company cited computing and data infrastructure supporting broader AI adoption, including investments in OpenAI, ClickHouse, TensorWave and CoreWeave.
- The Company held positions in 34 portfolio companies, consisting of 30 privately held and 4 publicly held companies, with aggregate fair value of approximately $377.2 million.
- Whoop, Inc. had fair value of $ 143.3 million and represented 38.0 % of the total portfolio as of September 30, 2026.
- The top five portfolio company investments had fair value of $ 270.3 million and represented 71.7 % of the total portfolio as of September 30, 2026.
Concerns
- The quarterly net change in net assets resulting from operations was $ (21,158,506 ), compared with $ 7,417,093 in the prior-year quarter.
- The quarter included net realized loss on investments of $ (7,748,545 ) and net change in unrealized appreciation/(depreciation) of investments of $ (9,378,815 ).
- Net asset value per share was $12.64 at September 30, 2026, compared with $13.44 at June 30, 2026.
- The top five portfolio investments accounted for approximately 72% of total portfolio fair value.
- Net investment loss was $ (4,031,135 ) for the quarter and $ (31,364,311 ) for the nine months ended September 30, 2026.
What to watch
- Deployment under the extended Share Repurchase Program, which has approximately $25.0 million remaining.
- The outcome of the Company’s investments in computing and data infrastructure supporting broader AI adoption.
- Portfolio concentration in the top five investments, including Whoop, Inc., ARK Type One Deep Ventures Fund LLC and IH10, LLC.
- The remaining approximately $35.8 million aggregate principal amount of 6.00% Notes eligible for repurchase.
- Liquidity and financial flexibility following the $20.0 million redeemable promissory note financing.
Balance sheet and cash flow
- Cash was 40,853,490 at September 30, 2026, compared with 49,034,154 at December 31, 2025.
- Total investments at fair value were $ 377,196,404 at September 30, 2026, compared with $ 225,511,505 at December 31, 2025.
- Net assets were $ 334,698,480 at September 30, 2026, compared with $ 205,316,251 at December 31, 2025.
- 6.00% Notes due December 30, 2026 were 35,733,362 at September 30, 2026.
- 6.50% Convertible Notes due August 14, 2029 were 26,473,554 at September 30, 2026.
- 6.50% Redeemable Promissory Note due July 16, 2029 was 19,898,229 at September 30, 2026.
- On July 17, 2026, the Company received gross proceeds of $20.0 million pursuant to a redeemable promissory note issued to a Magnetar-affiliated entity.
- The redeemable promissory note bears interest at 6.50% per annum, payable semiannually in cash, and matures on July 16, 2029, unless earlier repaid through the issuance of common stock upon specified financing transactions.
- Operating cash flow and free cash flow were not reported.
Analysis
Neostellar Capital reported a quarterly net decrease in net assets resulting from operations of $ (21,158,506 ), or $ (0.80 ) per basic and diluted common share, compared with a net increase of $ 7,417,093 in the prior-year quarter. The quarterly result reflected a $ (4,031,135 ) net investment loss, a $ (7,748,545 ) net realized loss on investments and a $ (9,378,815 ) net change in unrealized appreciation/(depreciation) of investments. Investment income was $ 271,807, while total operating expenses were $ 4,302,942.
Net asset value per share ended the quarter at $12.64, versus $13.44 at June 30, 2026 and $9.23 at September 30, 2025. Net assets were $ 334,698,480, and total investments at fair value were $ 377,196,404 at September 30, 2026. The filing reported cash of 40,853,490. For the nine months ended September 30, 2026, net change in net assets resulting from operations was $ 115,773,881, supported by $ 148,946,715 of net change in unrealized appreciation/(depreciation) of investments despite a $ (31,364,311 ) net investment loss.
The portfolio remains concentrated. The Company held 34 portfolio companies, and its top five investments represented 71.7 % of total portfolio fair value. Whoop, Inc. represented 38.0 % of the portfolio, with fair value of $ 143.3 million. During the quarter, the Company exited or received proceeds from several investments, including proceeds of $9.4 million from Learneo, Inc. and $2.0 million from CW Opportunity 2 LP. The Company also made an investment in Shogun Enterprises, Inc. of <$0.1 million.
Capital allocation included an extension of the Share Repurchase Program through the earlier of October 31, 2027 or repurchases of $64.3 million in aggregate common stock. Approximately $25.0 million remained available under that program. The Company also received gross proceeds of $20.0 million on July 17, 2026 from a 6.50% redeemable promissory note due July 16, 2029. Management identified the Magnetar partnership and investment opportunities in computing and data infrastructure supporting AI adoption as strategic areas of focus. The release provided no forward financial guidance.
Management, verbatim
During the third quarter, we formalized our partnership with Magnetar through Neostellar Advisors, expanding our resources for sourcing and due diligence and giving us greater flexibility to evaluate and structure investments.
Mark Klein, Chairman and Chief Executive Officer of Neostellar Capital
We continue to see significant opportunity across the computing and data infrastructure supporting broader AI adoption, reflected in our investments in OpenAI, ClickHouse, TensorWave and CoreWeave.
Mark Klein, Chairman and Chief Executive Officer of Neostellar Capital
Not in the filing
stated, not guessed- Forward revenue, gross margin, operating-expense, tax-rate, earnings or NAV guidance was not provided.
- Prior-quarter figures were not reported for most income-statement metrics.
- Year-over-year and quarter-over-quarter percentage changes were not reported for the income-statement metrics.
- Total revenue was not reported; the filing reports total investment income.
- Gross profit, gross margin, operating income, net income and conventional EPS were not reported.
- Non-GAAP metrics and non-GAAP reconciliations were not reported.
- Operating cash flow and free cash flow were not reported.
- Reportable operating segments and segment revenue were not reported.
- A prior earnings outlook was not provided, so no comparison with prior guidance is available.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.