Annual Report by Investment Company (Form N-CSR)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-08062

Nicholas Equity Income Fund, Inc.

(Exact Name of Registrant as specified in charter)

411 East Wisconsin Avenue, Suite 2100, Milwaukee, Wisconsin 53202

(Address of Principal Executive Offices) (Zip Code)

Jennifer R. Kloehn, Senior Vice President and Treasurer

411 East Wisconsin Avenue, Suite 2100

Milwaukee, Wisconsin 53202

(Name and Address of Agent for Service)

Registrant's telephone number, including area code: 414-272-4650

Date of fiscal year end: 10/31/2025

Date of reporting period: 10/31/2025

Item 1. Report to Stockholders.

(a)

Nicholas Equity Income Fund, Inc. NSEIX

(b) Not applicable.

Item 2. Code of Ethics.

(a) The registrant has adopted a Code of Ethics that applies to the registrant's principal executive officer and principal financial officer.

(b) Not applicable.

(c) During the period covered by the report, there were no amendments to the provisions of the Code of Ethics adopted in Item 2(a) above.

(d) During the period covered by the report, no implicit or explicit waivers were made with respect to the provisions of the Code of Ethics adopted in Item 2(a) above.

(e) Not applicable.

(f) The registrant's Code of Ethics is attached as Exhibit 19(a)(1) to this Form N-CSR.

Item 3. Audit Committee Financial Expert.

The Fund's Board of Directors has determined that Mr. David P. Pelisek, an independent director, qualifies as an audit committee financial expert as that term is defined for purposes of this item. He was selected as the Fund's Audit Committee Financial Expert at the Fund's Board of Directors Meeting held on February 3, 2020.

Item 4. Principal Accountant Fees and Services.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Fund's principal accountant (the "Auditor") for the audit of the Fund's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $22,500 in the fiscal year ended 10/31/2025 and $34,362 in the fiscal year ended 03/31/2025.

(b) Audit-Related Fees. There were no fees billed in each of the last two fiscal years for assurance and related services rendered by the Auditor to the Fund that are reasonably related to the performance of the audit of the Fund's financial statements and are not reported under paragraph (a) of this Item 4.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $5,500 in the fiscal year ended 10/31/2025 and $6,520 in the fiscal year ended 03/31/2025. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

(d) All Other Fees. The aggregate fees billed for professional services rendered by the Auditor to the Fund's investment adviser were approximately $22,330 in 2024 and $21,680 in 2023. These services were for the audit of the investment adviser for the adviser's fiscal year ended 10/31/2024 and 10/31/2023, respectively.

(e) (1) Audit Committee Pre-Approval Policies and Procedures. The Fund's Board of Director's has not adopted any pre-approval policies and procedures as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. The Fund's Board of Directors meets with the Auditors and management to review and authorize the Auditor's engagements for audit and non-audit services to the Fund and its Adviser prior to each engagement.

(e) (2) The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(c) N/A

(d) N/A

(f) No disclosures are required by this Item 4(f).

(g) There were no non-audit fees billed in each of the last two fiscal years by the Auditor for services rendered to the Fund or the Fund's investment adviser that provides ongoing services.

(h) No disclosures are required by this Item 4(h).

(i) Not applicable.

(j) Not applicable.

Item 5. Audit Committee of Listed Registrants.

Not applicable to this filing.

Item 6. Investments.

The schedule of investments in securities of unaffiliated issuers is included as part of the financial statements and financial highlights for open-end management investment companies under Item 7 of this Form N-CSR.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a) and (b)

Financial Highlights (NSEIX) For a share outstanding throughout each period

		Seven Months Ended				Years Ended March 31,
		10/31/2025*				2025				2024				2023				2022				2021
NET ASSET VALUE, BEGINNING OF PERIOD		$	21.68			$	21.94			$	19.84			$	21.57			$	21.75			$	15.14
INCOME (LOSS) FROM INVESTMENT OPERATIONS
Net investment income (1)			.22				.41				.44				.40				.36				.36
Net gain (loss) on securities (realized and unrealized)			1.30				.20				2.54				(1.35	)			2.02				7.23
Total from investment operations			1.52				.61				2.98				(.95	)			2.38				7.59
LESS DISTRIBUTIONS
From net investment income			(.30	)			(.41	)			(.45	)			(.38	)			(.36	)			(.29	)
From net capital gain			(.75	)			(.46	)			(.43	)			(.40	)			(2.20	)			(.69	)
Total distributions			(1.05	)			(.87	)			(.88	)			(.78	)			(2.56	)			(.98	)
NET ASSET VALUE, END OF PERIOD		$	22.15			$	21.68			$	21.94			$	19.84			$	21.57			$	21.75
TOTAL RETURN			7.39	%(2)			2.88	%			15.68	%			(4.31	)%			11.23	%			51.18	%
SUPPLEMENTAL DATA
Net assets, end of period (millions)		$	454.8			$	449.8			$	473.7			$	442.0			$	487.4			$	459.6
Ratio of expenses to average net assets			.70	%(3)			.70	%			.70	%			.70	%			.70	%			.72	%
Ratio of net investment income to average net assets			1.74	%(3)			1.88	%			2.22	%			2.00	%			1.65	%			1.92	%
Portfolio turnover rate			13.72	%(2)			28.42	%			11.98	%			18.75	%			18.11	%			33.58	%

*	The Fund changed its fiscal year end to October 31 during the period. The period is from April 1, 2025 to October 31, 2025.

(1)	Computed based on average shares outstanding.

(2)	Not annualized.

(3)	Annualized.

The accompanying notes to financial statements are an integral part of these highlights.

- 1 -

Schedule of Investments October 31, 2025

	Shares or Principal Amount					Value
COMMON STOCKS - 95.24%
				Consumer Discretionary - Consumer Discretionary Distribution & Retail - 5.39%
		20,300		Home Depot, Inc.		$	7,705,677
		82,220		TJX Companies Inc			11,522,311
		97,372		Tractor Supply Company			5,268,799
							24,496,787
				Consumer Discretionary - Consumer Durables & Apparel - 1.49%
		105,247		NIKE, Inc.			6,797,904
				Consumer Staples - Food, Beverage & Tobacco - 2.76%
		99,242		Coca-Cola Company			6,837,774
		99,729		Mondelez International, Inc. Class A			5,730,428
							12,568,202
				Consumer Staples - Household & Personal Products - 3.36%
		46,550		Procter & Gamble Company			6,999,723
		137,325		Unilever PLC Sponsored ADR			8,265,592
							15,265,315
				Energy - Energy - 5.46%
		79,795		Chevron Corporation			12,585,267
		70,843		ConocoPhillips			6,295,109
		119,100		Enterprise Products Partners L.P.			3,667,089
		39,830		Williams Companies, Inc.			2,304,962
							24,852,427
				Financials - Banks - 6.82%
		39,040		JPMorgan Chase & Co.			12,146,125
		52,800		PNC Financial Services Group, Inc.			9,638,640
		197,405		U.S. Bancorp			9,214,865
							30,999,630
				Financials - Financial Services - 9.99%
		8,444		BlackRock, Inc.			9,143,248
		41,510		Blackstone Inc.			6,087,026
		114,155		Charles Schwab Corp			10,789,931
		50,522		Cohen & Steers, Inc.			3,451,663
		94,685		Nasdaq, Inc.			8,094,621
		49,500		Raymond James Financial, Inc.			7,854,165
							45,420,654

The accompanying notes to financial statements are an integral part of this schedule.

- 2 -

Schedule of Investments (continued) October 31, 2025

	Shares or Principal Amount					Value
COMMON STOCKS - 95.24% (continued)
				Financials - Insurance - 1.54%
		25,350		Chubb Limited		$	7,020,429
				Health Care - Health Care Equipment & Services - 4.96%
		88,763		Abbott Laboratories			10,972,882
		65,660		Medtronic Plc			5,955,362
		16,490		UnitedHealth Group Incorporated			5,632,324
							22,560,568
				Health Care - Pharmaceuticals, Biotechnology & Life Sciences - 9.62%
		38,619		AbbVie, Inc.			8,420,487
		120,155		AstraZeneca PLC Sponsored ADR			9,900,772
		49,460		Johnson & Johnson			9,341,510
		49,007		Merck & Co., Inc.			4,213,622
		90,630		Novo Nordisk A/S			4,482,560
		145,885		Sanofi Sponsored ADR			7,378,863
							43,737,814
				Industrials - Capital Goods - 10.84%
		97,931		A. O. Smith Corporation			6,462,467
		6,825		Eaton Corporation plc			2,604,147
		38,845		IDEX Corporation			6,660,364
		23,595		Illinois Tool Works Inc.			5,755,292
		15,447		L3Harris Technologies Inc			4,465,728
		31,340		Lincoln Electric Holdings, Inc.			7,347,663
		15,620		Nordson Corporation			3,623,059
		40,460		Owens Corning			5,150,963
		19,584		Rockwell Automation, Inc.			7,213,962
							49,283,645
				Industrials - Commercial & Professional Services - 1.11%
		57,721		Booz Allen Hamilton Holding Corporation			5,030,962
				Industrials - Transportation - 2.29%
		47,292		Union Pacific Corporation			10,421,738

The accompanying notes to financial statements are an integral part of this schedule.

- 3 -

Schedule of Investments (continued) October 31, 2025

	Shares or Principal Amount					Value
COMMON STOCKS - 95.24% (continued)
				Information Technology - Semiconductors & Semiconductor Equipment - 9.17%
		52,930		Analog Devices, Inc.		$	12,392,501
		38,047		Broadcom Inc.			14,063,313
		155,852		Microchip Technology Incorporated			9,728,282
		34,275		Texas Instruments Incorporated			5,534,041
							41,718,137
				Information Technology - Software & Services - 7.55%
		23,571		International Business Machines Corporation			7,245,961
		33,972		Microsoft Corporation			17,591,041
		36,182		Oracle Corporation			9,501,755
							34,338,757
				Information Technology - Technology Hardware & Equipment - 1.43%
		89,095		Cisco Systems, Inc.			6,513,735
				Materials - Materials - 2.69%
		23,829		Air Products and Chemicals, Inc.			5,780,677
		79,085		DuPont de Nemours, Inc.			6,457,290
							12,237,967
				Real Estate - Equity Real Estate Investment Trusts (REITs) - 3.33%
		33,905		American Tower Corporation			6,068,317
		10,750		Equinix, Inc.			9,094,607
							15,162,924
				Utilities - Utilities - 5.44%
		161,410		CMS Energy Corporation			11,871,706
		103,610		NextEra Energy, Inc.			8,433,854
		39,650		WEC Energy Group Inc			4,430,095
							24,735,655
				TOTAL COMMON STOCKS
				(cost $284,522,509)			433,163,250

The accompanying notes to financial statements are an integral part of this schedule.

- 4 -

Schedule of Investments (continued) October 31, 2025

	Shares or Principal Amount					Value
SHORT-TERM INVESTMENTS - 4.72%
				Money Market Demand Account - 0.77%
	$	3,489,357		U.S. Bank Money Market, 3.70%		$	3,489,357
				Money Market Fund - 1.32%
		6,000,000		First American Money Market Funds Government Obligations Fund - X Class, 7-day net yield, 3.987%			6,000,000
				U.S. Government Securities - 2.63%
		6,000,000		U.S. Treasury Bill 11/13/2025, 3.292%			5,993,516
		6,000,000		U.S. Treasury Bill 12/26/2025, 3.835%			5,965,527
							11,959,043
				TOTAL SHORT-TERM INVESTMENTS
				(cost $21,446,823)			21,448,400
				TOTAL INVESTMENTS
				(cost $305,969,332) - 99.96%			454,611,650
				OTHER ASSETS, NET OF LIABILITIES - 0.04%			191,092
				TOTAL NET ASSETS
				(basis of percentages disclosed above) - 100%		$	454,802,742

The accompanying notes to financial statements are an integral part of this schedule.

- 5 -

Statement of Assets and Liabilities October 31, 2025

ASSETS
Investments in securities at value (cost $305,969,332)		$	454,611,650
Receivables
Dividend and interest			563,285
Capital stock subscription			4,246
Total receivables			567,531
Other			28,227
Total assets			455,207,408
LIABILITIES
Payables
Due to adviser
Management fee			241,241
Accounting and administration fee			6,517
Total due to adviser			247,758
Capital stock redemption			100,009
Other payable and accrued expense			56,899
Total liabilities			404,666
Total net assets		$	454,802,742
NET ASSETS CONSIST OF
Paid in capital		$	299,380,166
Accumulated distributable earnings			155,422,576
Total net assets		$	454,802,742
NET ASSET VALUE PER SHARE ($.0001 par value, 250,000,000 shares authorized), offering price and redemption price (20,533,030 shares outstanding)		$	22.15

The accompanying notes to financial statements are an integral part of this statement.

- 6 -

Statements of Operations For the seven months ended October 31, 2025 and the year ended March 31, 2025

		Seven Months Ended 10/31/2025 (*)				Year Ended 3/31/2025
INCOME
Dividend (net of foreign taxes of $14,615 and $51,757, respectively)		$	6,080,408			$	10,993,200
Interest			402,042				1,094,652
Total income			6,482,450				12,087,852
EXPENSES
Management fee			1,622,512				2,865,648
Administration services			43,813				77,430
Transfer agent fees			40,993				78,196
Accounting & pricing services			30,588				54,352
Registration fees			28,808				42,310
Audit and tax fees			27,810				41,500
Custodian fees			13,230				23,659
Directors' fees			11,565				23,130
Insurance			10,801				18,043
Printing			9,623				12,166
Legal fees			9,087				12,383
Postage and mailing			3,096				7,431
Other operating expenses			9,628				11,595
Total expenses			1,861,554				3,267,843
Net investment income			4,620,896				8,820,009
NET REALIZED GAIN ON INVESTMENTS			9,895,788				18,248,575
CHANGE IN NET UNREALIZED APPRECIATION/DEPRECIATION ON INVESTMENTS			17,403,059				(13,519,052	)
Net realized and unrealized gain (loss) on investments			27,298,847				4,729,523
Net increase (decrease) in net assets resulting from operations		$	31,919,743			$	13,549,532

(*)	The Fund changed its fiscal year end to October 31 during the period. The period is from April 1, 2025 to October 31, 2025.

The accompanying notes to financial statements are an integral part of this statement.

- 7 -

Statements of Changes in Net Assets For the seven months ended October 31, 2025 and the years ended March 31, 2025 and March 31, 2024

		Seven Months Ended 10/31/2025 (*)				Year Ended 3/31/2025				Year Ended 3/31/2024
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
Net investment income		$	4,620,896			$	8,820,009			$	9,778,290
Net realized gain on investments			9,895,788				18,248,575				8,021,159
Change in net unrealized appreciation/depreciation on investments			17,403,059				(13,519,052	)			47,477,423
Net increase (decrease) in net assets resulting from operations			31,919,743				13,549,532				65,276,872
DISTRIBUTIONS TO SHAREHOLDERS FROM
Investment operations			(21,796,819	)			(18,680,087	)			(19,498,942	)
CAPITAL SHARE TRANSACTIONS
Proceeds from shares issued (209,086, 470,978 and 1,058,011 shares, respectively)			4,572,782				10,254,929				20,792,088
Reinvestment of distributions (456,151, 597,603 and 775,290 shares, respectively)			9,476,563				12,824,318				14,944,269
Cost of shares redeemed (882,228, 1,912,855 and 2,520,264 shares, respectively)			(19,211,696	)			(41,826,656	)			(49,815,961	)
Change in net assets derived from capital share transactions			(5,162,351	)			(18,747,409	)			(14,079,604	)
Total increase (decrease) in net assets			4,960,573				(23,877,964	)			31,698,326
NET ASSETS
Beginning of period			449,842,169				473,720,133				442,021,807
End of period		$	454,802,742			$	449,842,169			$	473,720,133

(*)	The Fund changed its fiscal year end to October 31 during the period. The period is from April 1, 2025 to October 31, 2025.

The accompanying notes to financial statements are an integral part of these statements.

- 8 -

Notes to Financial Statements October 31, 2025

(1)	Summary of Significant Accounting Policies -

Nicholas Equity Income Fund, Inc. (the "Fund") is organized as a Maryland corporation and is registered as an open-end, diversified management investment company under the Investment Company Act of 1940, as amended. The primary objective of the Fund is to produce reasonable income with moderate long-term growth as a secondary consideration.

Change in Fiscal and Tax Year Ends: On February 10, 2025, the Fund's Board of Directors approved that the Fund's fiscal and tax year ends be changed from March 31 to October 31. The following is a summary of the significant accounting policies of the Fund:

(a)

Equity securities traded on a stock exchange will ordinarily be valued on the basis of the last sale price on the date of valuation on the securities principal exchange, or if in the absence of any sale on that day, the closing bid price. For securities principally traded on the NASDAQ market, the Fund uses the NASDAQ Official Closing Price. Investments in shares of open-end mutual funds, including money market funds, are valued at their daily closing net asset value. Debt securities, excluding short-term investments, are valued at their current evaluated bid price as determined by an independent pricing service, which generates evaluations on the basis of dealer quotes for normal institutional-sized trading units, issuer analysis, bond market activity and various other factors. Short-term investments are valued using evaluated bid prices. Securities for which market quotations may not be readily available are valued at their fair value as determined in good faith by procedures adopted by the Board of Directors. The Board of Directors has delegated fair value responsibilities to Nicholas Company, Inc., the Fund's adviser. The Fund did not maintain any positions in derivative instruments or engage in hedging activities during the period. Investment transactions for financial statement purposes are recorded on trade date.

In accordance with Accounting Standards Codification ("ASC") 820-10, "Fair Value Measurement" ("ASC 820-10"), fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. ASC 820-10 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value such as a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the

- 9 -

Notes to Financial Statements (continued) October 31, 2025

asset or liability based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.

Level 1 -

quoted prices in active markets for identical investments

Level 2 -

other significant observable inputs (including quoted prices for similar investments, interest rates, benchmark yields, bids, offers, transactions, spreads and other relationships observed in the markets among market securities, underlying equity of the issuer, proprietary pricing models, credit risk, etc.)

Level 3 -

significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of October 31, 2025 in valuing the Fund's investments carried at value:

Valuation Inputs		Investments in Securities
Level 1 -
Common Stocks(1)		$	433,163,250
Money Market Deposit Account			3,489,357
Money Market Fund			6,000,000
Level 2 -
U.S. Government Securities			11,959,043
Level 3 -
None			-
Total		$	454,611,650

(1)

See Schedule of Investments for further detail by industry.

The Fund did not hold any Level 3 investments during the period.

(b)

Net realized gain (loss) on portfolio securities was computed on the basis of specific identification.

(c)

Dividend income is recorded on the ex-dividend date, and interest income is recognized on an accrual basis. Non-cash dividends, if any, are recorded at value on date of distribution. Generally, discounts and premiums on long-term debt security purchases, if any, are amortized over the expected lives of the respective securities using the effective yield method.

(d)

Provision has not been made for federal income taxes or excise taxes since the Fund has elected to be taxed as a "regulated investment company" and intends to distribute substantially all net investment income and net realized capital gains on

- 10 -

Notes to Financial Statements (continued) October 31, 2025

sales of investments to its shareholders and otherwise comply with the provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies.

(e)

Dividends and distributions paid to shareholders are recorded on the ex-dividend date. Distributions from net investment income are generally declared and paid at least quarterly. Distributions of net realized capital gain, if any, are declared and paid at least annually.

The amount of distributions from net investment income and net realized capital gain are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles ("U.S. GAAP") for financial reporting purposes. Financial reporting records are adjusted for permanent book-to-tax differences to reflect tax character. These reclassifications have no effect on net assets or net asset value per share. At October 31, 2025, reclassifications were recorded to decrease undistributed ordinary income by $35,332, increase accumulated net realized capital gains by $57,119, and decrease paid in capital by $21,787.

The tax character of distributions paid during the seven months ended October 31, 2025 and the years ended March 31, 2025 and March 31, 2024, was as follows:

		10/31/2025				03/31/2025				03/31/2024
Distributions paid from:
Ordinary income		$	6,273,809			$	8,737,323			$	10,016,329
Long-term capital gain			15,523,010				9,942,764				9,482,613
Total distributions paid		$	21,796,819			$	18,680,087			$	19,498,942

As of October 31, 2025, investment cost for federal tax purposes was $304,721,781 and the tax basis components of net assets were as follows:

Unrealized appreciation		$	159,632,529
Unrealized depreciation			(9,742,660	)
Net unrealized appreciation			149,889,869
Undistributed ordinary income			390,057
Accumulated undistributed net realized capital gains			9,952,886
Other Temporary Differences			(4,810,236	)
Paid in capital			299,380,166
Net assets		$	454,802,742

The differences between U.S. GAAP financial statement and tax-basis cost is attributable primarily to the Fund's holdings in partnership interests.

The Fund had no material uncertain tax positions and has not recorded a liability for unrecognized tax benefits as of October 31, 2025. Also, the Fund recognized no interest and penalties related to uncertain tax benefits during the period ended

- 11 -

Notes to Financial Statements (continued) October 31, 2025

October 31, 2025. At October 31, 2025, the fiscal years 2022 through 2025 remain open to examination in the Fund's major tax jurisdictions.

(f)

The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting Standards Board ("FASB") ASC 946, "Financial Services - Investment Companies." U.S. GAAP guidance requires management to make estimates and assumptions that effect the amounts reported in the financial statements and accompanying notes. Actual results could differ from estimates.

(g)

In the normal course of business the Fund enters into contracts that contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims against the Fund that have not yet occurred. Based on experience, the Fund expects the risk of loss to be remote.

(h)

In connection with the preparation of the Fund's financial statements, management evaluated subsequent events after the date of the Statement of Assets and Liabilities of October 31, 2025. There have been no material subsequent events since October 31, 2025 that would require adjustment to or additional disclosure in these financial statements.

(2)	Related Parties -

(a)

Investment Adviser and Management Agreement -

The Fund has an agreement with Nicholas Company, Inc. (with whom certain officers and directors of the Fund are affiliated) (the "Adviser") to serve as investment adviser and manager. Under the terms of the agreement, a monthly fee is paid to the Adviser based on an annualized fee of 0.70% of the average net asset value up to and including $50 million and 0.60% of the average net asset value in excess of $50 million.

The Adviser may be paid for accounting and administration services rendered by its personnel, subject to the following guidelines: (i) up to five basis points, on an annual basis, of the average net asset value of the Fund up to and including $2 billion and up to three basis points, on an annual basis, of the average net asset value of the Fund greater than $2 billion, based on the average net asset value of the Fund as determined by valuations made at the close of each business day of each month, and (ii) where the preceding calculation results in an annual payment of less than $50,000, the Adviser, in its discretion, may charge the Fund up to $50,000 for such services.

(b)

Legal Counsel -

A director of the Adviser is affiliated with a law firm that provides services to the Fund. The Fund incurred expenses of $5,141 for the period ended October 31, 2025 for legal services rendered by this law firm.

- 12 -

Notes to Financial Statements (continued) October 31, 2025

(3)	Investment Transactions -

For the period ended October 31, 2025, the cost of purchases and the proceeds from sales of investment securities, other than short-term obligations, aggregated $59,929,320 and $90,502,498, respectively.

(4)	Operating Segments -

The Fund has adopted FASB Accounting Standards Update 2023-07, Segment Reporting ("Topic 280") - Improvements to Reportable Segment Disclosures. The standard impacts financial statement disclosures only and does not affect the Fund's financial position or the results of its operations. An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The management committee of the Fund's adviser acts as the Fund's CODM. The Fund represents a single operating segment, as the CODM monitors the operating results of the Fund as a whole and the Fund's long-term strategic asset allocation is pre-determined in accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Fund's portfolio managers. The financial information in the form of the Fund's portfolio investments, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess the segment's performance versus the Fund's comparative benchmarks and to make resource allocation decisions for the Fund's single segment, is consistent with that presented within the Fund's financial statements. Segment assets are reflected on the accompanying statement of assets and liabilities as "total assets" and significant segment expenses are listed on the accompanying statement of operations.

- 13 -

Report of Independent Registered Public Accounting Firm

To the shareholders and the Board of Directors of Nicholas Equity Income Fund, Inc.

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of Nicholas Equity Income, Inc. ( the "Fund"), including the schedule of investments, as of October 31, 2025, the related statements of operations, statements of changes in net assets, financial highlights for the periods indicated in the table below, and the related notes (collectively referred to as the "financial statements and financial highlights"). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of October 31, 2025, and the results of its operations, the changes in its net assets, and the financial highlights for the periods listed in the table below in conformity with accounting principles generally accepted in the United States of America.

Fund	Statements of Operations	Statements of Changes in Net Assets	Financial Highlights
Nicholas Equity Income, Inc.	For the period from April 1, 2025 through October 31, 2025 and for the year ended March 31, 2025	For the period from April 1, 2025 through October 31, 2025 and for the years ended March 31, 2025 and 2024	For the period from April 1, 2025 through October 31, 2025 and for the years ended March 31, 2025, 2024, 2023, 2022, and 2021

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements

- 14 -

Report of Independent Registered Public Accounting Firm (continued)

and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2025, by correspondence with the custodian. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP
Milwaukee, Wisconsin
December 22, 2025

We have served as the Company's auditor since 1977.

- 15 -

Approval of Investment Advisory Contract (unaudited)

A discussion of the Approval by the Board of Directors of the Fund's Investment Advisory Contract can be found in the Fund's Semiannual Financial Statements and Other Information dated September 30, 2025.

Information on Proxy Voting (unaudited)

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request by calling 800-544-6547 or 414-276-0535. It also appears in the Fund's Statement of Additional Information, which can be found on the SEC's website, www.sec.gov. A record of how the Fund voted its proxies for the most recent twelve-month period ended June 30, also is available on the Fund's website, www.nicholasfunds.com, and the SEC's website, www.sec.gov.

- 16 -

Nicholas Funds Services Offered (unaudited)

●

IRAs

●	Traditional	●	SEP
●	Roth	●	SIMPLE

●	Coverdell Education Savings Accounts

●	Automatic Investment Plan

●	Direct Deposit of Dividend and Capital Gain Distributions

●	Systematic Withdrawal Plan

●	Monthly Automatic Exchange between Funds

●	Telephone Purchase and Redemption

●	Telephone Exchange

●	24-hour Automated Account Information (800-544-6547)

●	24-hour Internet Account Access (www.nicholasfunds.com)

Please call a shareholder representative for further information on the above services or with any other questions you may have regarding the Nicholas Funds.

Directors and Officers

DAVID O. NICHOLAS, President and Director

JOHN A. HAUSER, Director

DAVID P. PELISEK, Director

JULIE M. VAN CLEAVE, Director

JENNIFER R. KLOEHN, Senior Vice President,
Treasurer and Chief Compliance Officer

LAWRENCE J. PAVELEC, Senior Vice President and Secretary

PAUL J. KNYCH, Vice President

Investment Adviser

NICHOLAS COMPANY, INC.

Milwaukee, Wisconsin

www.nicholasfunds.com

414-276-0535 or 800-544-6547

Accountant
Dividend Disbursing Agent
Transfer Agent

U.S. BANCORP FUND SERVICES, LLC

Milwaukee, Wisconsin

414-276-0535 or 800-544-6547

Distributor

QUASAR DISTRIBUTORS, LLC

Portland, Maine

Custodian

U.S. BANK N.A.

Milwaukee, Wisconsin

Independent Registered Public Accounting Firm

DELOITTE & TOUCHE LLP

Milwaukee, Wisconsin

Counsel

MICHAEL BEST & FRIEDRICH LLP

Milwaukee, Wisconsin

The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company, and they may be obtained by calling 1-800-544-6547 or visiting www.nicholasfunds.com. Please read the prospectus carefully before investing.

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

There have been no such changes in or disagreements with accountants as contemplated by Item 304 of Regulation S-K.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable for this reporting period.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

The remuneration paid to directors, officers, and others is disclosed in the Statement of Operations included under Item 7.(a) Financial Statements and Financial Highlights for Open-End Management Investment Companies of this Report.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

The basis for approval of the investment advisory contract is included under Item 7.(a) Financial Statements and Financial Highlights for Open-End Management Investment Companies of this Report.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Applicable only to closed-end funds.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Applicable only to closed-end funds.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Applicable only to closed-end funds.

Item 15. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors.

Item 16. Controls and Procedures.

(a) The Fund's principal executive officer and principal financial officer, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") are effective, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Applicable only to closed-end funds.

Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable to this filing.

Item 19. Exhibits.

(a)(1) Sarbanes-Oxley Code of Ethics for Principal Executive and Senior Financial Officers (that is the subject of the disclosure required by Item 2), attached hereto as EX-99.CODE ETH.

(a)(2) Not applicable to this filing.

(a)(3) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, attached hereto as EX-99.CERT.

(a)(4) Not applicable to this filing.

(a)(5) Change in the registrant's independent public accountant.

Not applicable to this filing.

(b) Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, attached hereto as EX-99.906 CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Nicholas Equity Income Fund, Inc.

By:	/s/ David O. Nicholas
Name:	David O. Nicholas
Title:	Principal Executive Officer
Date:	December 19, 2025

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ David O. Nicholas
Name:	David O. Nicholas
Title:	Principal Executive Officer
Date:	December 19, 2025

By:	/s/ Jennifer R. Kloehn
Name:	Jennifer R. Kloehn
Title:	Principal Financial Officer
Date:	December 19, 2025