In its Q2 2026 filing, OFS Capital Corp demonstrates meaningful reductions in non-accrual loans, notably within first lien debt, signaling improved portfolio credit quality. The company's income generation remains driven primarily by interest and fee income from a diversified mix of first lien, second lien debt, and structured finance securities. Leverage levels remain controlled with total debt around $185.8 million at quarter-end, supported by sound liquidity. These operating trends position OFS Capital to navigate ongoing interest rate volatility and credit market challenges common in the middle-market lending sector.