Neostellar Capital Corp. Reports Third Quarter 2026 Financial Results

(NASDAQ:NSLR) (NASDAQ:SSSS) Neostellar Capital Corp. announced its financial results for the third quarter ended September 30, 2026. Net assets totaled approximately $334.7 million, or $12.64 per share, at September 30, 2026, compared to $13.44 per share at June 30, 2026, and $9.23 per share at September 30, 2025. The company held positions in 34 portfolio companies, with an aggregate fair value of approximately $377.2 million as of September 30, 2026. The top five portfolio company investments accounted for approximately 72% of the total portfolio at fair value. Whoop, Inc. had a cost basis of $11.0 million and a fair value of $143.3 million, representing 38.0% of the total portfolio. ARK Type One Deep Ventures Fund LLC had a cost basis of $17.9 million and a fair value of $59.4 million, or 15.8% of the portfolio. IH10, LLC had a cost basis of $12.3 million and a fair value of $34.0 million, or 9.0%. Magnetar Opportunity 2025-4 LP had a cost basis of $20.0 million and a fair value of $20.4 million, or 5.4%. Blink Health, Inc. had a cost basis of $15.0 million and a fair value of $13.1 million, or 3.5%. During the quarter, Neostellar made an investment of less than $0.1 million in Shogun Enterprises, Inc. (d/b/a Hearth), exercising 86,076 warrants and receiving 86,076 common shares. The company exited or received proceeds from several investments, including 143,655 common shares of GrabAGun Digital Holdings Inc. at an average net share price of $3.12, net proceeds of $0.4 million, and a realized gain of $0.3 million. Aventine Property Group, Inc. was exited on July 8, 2026, with 312,500 shares at $0.10 per share, net proceeds of less than $0.1 million, and a realized loss of $2.5 million. CW Opportunity 2 LP was exited on August 21, 2026, with net proceeds of $2.0 million and a realized gain of $1.4 million. Learneo, Inc. (f/k/a Course Hero, Inc.) was exited on September 21, 2026, with 2,421,168 shares at $3.88 per share, net proceeds of $9.4 million, and a realized loss of $5.6 million. CTN Holdings, Inc. (d/b/a Catona Climate, f/k/a Aspiration Partners, Inc.) was abandoned on September 25, 2026, with a realized loss of $1.3 million. For the quarter ended September 30, 2026, the company reported a net investment loss of $4.0 million, or $0.15 per share, a net realized loss on investments of $7.7 million, or $0.29 per share, and a net change in unrealized depreciation of $9.4 million, or $0.35 per share. The net decrease in net assets resulting from operations was $21.2 million, or $0.80 per share. Weighted-average common basic shares outstanding were approximately 26.5 million for the quarter ended September 30, 2026. As of September 30, 2026, there were 26,473,222 shares of common stock outstanding. On July 17, 2026, Neostellar received gross proceeds of $20.0 million from a Magnetar 6.50% redeemable promissory note due 2029, with interest payable semiannually in cash and maturing on July 16, 2029, unless earlier repaid through the issuance of shares upon transactions resulting in at least $230.0 million of gross proceeds. The Board approved an extension of the discretionary note repurchase program, allowing repurchase of up to an additional $40.0 million or the remaining aggregate principal amount of its 6.00% Notes due 2026. During the quarter, 1,984 of the 6.00% Notes were repurchased, and as of September 30, 2026, a total of 1,568,791 notes had been repurchased. The aggregate principal dollar amount of 6.00% Notes that may yet be repurchased is approximately $35.8 million. The Board also 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 common stock. The dollar value of shares that may yet be purchased under the program is approximately $25.0 million. Since inception in August 2017, over 6.0 million shares have been repurchased for an aggregate purchase price of approximately $39.3 million. A conference call and webcast for investors was scheduled for November 3, 2026.