Key Highlights

  • Net asset value was USD 12.64 per share, versus USD 13.44 at June 30 and USD 9.23 a year earlier.
  • Net Assets were USD 334.7 million, and the net decrease from operations was USD 21.2 million.
  • The portfolio held 34 companies at Fair Value of USD 377.2 million, with the top five near 72%.
  • The board extended the share repurchase program with USD 25 million remaining, alongside new investments as a use of capital.

A Quarter of Reversed Marks

Neostellar Capital Corp. (NASDAQ:NSLR), the externally managed Investment company, reported net assets of USD 334.7 million, or USD 12.64 per share, at September 30, 2026. That compares with USD 13.44 per share at June 30, 2026 and USD 9.23 at September 30, 2025.

The quarterly net decrease in net assets resulting from operations was USD 21.2 million, or USD 0.80 per share, compared with a net increase of USD 7.4 million, or USD 0.30 per share, in the prior-year period. The components were a net investment loss of USD 4.0 million, or USD 0.15 per share, a net realized loss on investments of USD 7.7 million and a net change in unrealized Depreciation of USD 9.4 million. The prior-year quarter showed a net investment loss of USD 3.5 million, a realized gain of USD 5.2 million and unrealized appreciation of USD 5.7 million.

Analyst estimates were EPS of negative USD 0.15 against reported EPS of negative USD 0.80, and Revenue of USD 300 thousand against reported revenue of USD 272 thousand.

Income and Expenses

Total investment income was USD 0.27 million, down from USD 0.46 million a year earlier. Operating expenses included management fees of USD 1.59 million and administration costs of USD 0.28 million, with no such charges in the prior-year quarter. Compensation expense fell to USD 0.20 million from USD 1.68 million.

Chairman and Chief Executive Officer Mark Klein said the company formalized its Partnership with Magnetar through Neostellar Advisors during the quarter. He described it as widening resources for sourcing and Due Diligence and as giving more flexibility to structure investments, combining venture experience with Magnetar expertise in credit, structured capital and AI infrastructure.

Portfolio Concentration

At quarter end the company held 34 portfolio companies, 30 private and 4 public, with aggregate fair value of USD 377.2 million. The top five holdings were USD 270.3 million at fair value, or 71.7% of the portfolio, against a cost basis of USD 76.2 million. ARK Type One Deep Ventures Fund, which holds OpenAI Series A-2 preferred shares, was USD 59.4 million, or 15.8%. IH10, LLC, whose sole asset is an interest in VAST Data Series B Preferred Shares through a special purpose vehicle, was USD 34.0 million, or 9.0%.

Klein pointed to opportunity across computing and data infrastructure supporting AI adoption, citing investments in OpenAI, ClickHouse, TensorWave and CoreWeave. He said that as holdings mature the company balances remaining potential against realizing gains and managing concentration, with a focus on long-term value per share. Under the note repurchase program the company bought back 1,984 additional units of its 6.00% Notes due 2026 in the quarter, bringing cumulative repurchases to 1,568,791.

Whoop, Inc. was the largest holding at USD 143.3 million, or 38.0% of the portfolio, from a cost of USD 11.0 million.

Items to Follow

Valuation marks on the largest holdings, the share of expenses covered by income and any use of the repurchase authority are the items to follow.