Equus Total Return, Inc. (EQS) reported a third‑quarter net asset value of $1.90 per share as of September 30, 2025, down from $2.51 per share at the end of the second quarter. The $0.61 decline represents a 24% drop in per‑share value and signals a contraction in the fund’s underlying portfolio.
The decline is sharper than the 20% year‑over‑year drop from Q3 2024, when the NAV was $2.96 per share. Energy holdings, which accounted for 86.2% of the NAV, were the main driver of the erosion. A $5.4 million fall in the fair value of General Enterprise Ventures, Inc. (GEVI) holdings, caused by a sharp drop in GEVI’s stock price and the conversion of a promissory note into common stock, accounted for the largest portion of the decline.
In addition to the GEVI hit, EQS recorded a $1.7 million liability after reclassifying investor warrants from equity to liabilities. The equity investment in Morgan E&P, Inc. remained stable at $12.35 million, but the concentration in that single energy asset magnifies the impact of any valuation swing.
Management disclosed that “substantial doubt exists about the Fund’s ability to continue as a going concern without new financing or asset sales.” With only $0.3 million of cash on hand, the fund faces a liquidity crunch that could force asset sales or additional debt to sustain operations. The combination of a steep NAV decline, high concentration risk, and a clear going‑concern warning signals significant downside risk for investors.
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