In its Q1 2026 10-Q, OFS Capital reported a reduction in non-accrual loans and completed a significant financing transition from its BNP Facility to a new Natixis revolving credit facility, extending maturities and enhancing liquidity. The company maintains its core strategy of investing across first lien, second lien, unitranche loans, subordinated debt, and equity securities focused on U.S. middle-market companies, leveraging regulatory frameworks that allow favorable tax treatment and income distributions. While competitive pressures within the BDC space and credit quality risks persist, OFS Capital's refined capital structure and disciplined portfolio management position it for sustained net investment income growth. Key risks include middle-market credit illiquidity and management conflicts due to shared advisory arrangements.