NEW YORK, May 6, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF" or the "Company") today announced financial results for its first quarter ended March 31, 2026.
FIRST QUARTER 2026 HIGHLIGHTS
-- First quarter GAAP net investment income ("NII") per share of $0.37
-- First quarter adjusted NII per share of $0.29(1)
-- Dividends declared for the second quarter were $0.40 per share, including
a base dividend of $0.35 per share and a special dividend of $0.05 per
share declared in connection with the listing
-- Net asset value per share decreased to $16.49, as compared with $17.33
last quarter, primarily driven by unrealized losses from the impact of
credit spread widening on the portfolio
-- New investment commitments for the first quarter were $1.7 billion and
sales and repayments were $1.1 billion, as compared with $2.3 billion of
new investment commitments and $0.9 billion of sales and repayments for
the three months ended December 31, 2025
-- Net debt-to-equity ended at 0.85x, as compared with 0.75x as of
December 31, 2025
-- Investments on non-accrual represented 0.3% and 0.1% of the portfolio at
cost and fair value, respectively, as compared with 0.4% and 0.2% as of
December 31, 2025
-- OTF repurchased approximately $50.2 million of OTF common stock, which
was accretive to net asset value per share in the first quarter
-- Approximately 80% of each pre-listing shareholder's position has been
released from lock-up, with two remaining releases scheduled in equal
tranches of approximately 10.6% each month until June 12, 2026
"First quarter volatility in technology markets drove meaningful spread widening and pressured valuations across OTF's portfolio, reflecting broader market dynamics rather than underlying credit trends," said Craig W. Packer, Chief Executive Officer. "We continue to see solid credit performance across our portfolio of durable, mission-critical businesses with many already taking steps to adapt to the evolving AI environment. With over $2 billion of available liquidity, we believe the current dislocation is creating a more attractive opportunity set, allowing us to remain selective as we deploy capital, ramp leverage and support ROE expansion over time."
Stock Repurchases
On February 17, 2026, the Board of Directors (the "Board") approved a $300 million stock repurchase program, under which purchases may be made at management's discretion from time to time in open-market transactions, replacing the prior $200 million authorization. As of March 31, 2026, the Company repurchased approximately $50.2 million of OTF common stock, accretive to net asset value per share in the first quarter, with approximately $250 million remaining under its share repurchase program.
Dividend Declarations
The Board declared a second quarter 2026 base dividend of $0.35 per share for stockholders of record as of June 30, 2026, payable on or before July 15, 2026.
As previously announced, the Board also declared a series of five special dividends of $0.05 per share. A full schedule of the record and payment dates can be found on the Company's website at www.blueowltechnologyfinance.com.
Lock-Up Release Schedule
On November 4, 2025, the Board approved an amended lock-up release schedule that applies to shares currently subject to transfer restrictions. Under the new schedule, approximately 10.6% of these shares of the Company's common stock continue to be released each month until June 12, 2026.
As of today, approximately 80% of each shareholder's position has been released from lock-up. The remaining shares still subject to transfer restrictions will be released in accordance with the following schedule:
Approximate Percentage of Approximate Number of Shares
Shares Subject to Transfer Subject to Transfer
Release Date Restrictions Released Restrictions Released
-------------- ------------------------------ ------------------------------
May 20, 2026 10.6 % 49,096,350
June 12, 2026 10.6 % 49,099,234
(1) Adjusted to exclude any change in capital gains incentive fees accrued but
not paid. These fees are related to cumulative unrealized gains in excess of
cumulative net realized gains less any cumulative unrealized losses, less
capital gains incentive fees paid inception to date.
SELECT FINANCIAL HIGHLIGHTS
As of and for the Three Months Ended
---------------------------------------------------
($ in thousands,
except per share December 31,
amounts) March 31, 2026 2025 March 31, 2025
----------------- ---------------- --------------
GAAP results:
Net investment
income per share $ 0.37 $ 0.26 $ 0.41
Net realized and
unrealized gains
(losses) per share $ (0.84) $ 0.18 $ (0.08)
Net increase
(decrease) in net
assets resulting
from operations per
share $ (0.47) $ 0.44 $ 0.33
Capital gains
incentive fee
expense (benefit)
per share $ (0.08) $ 0.03 $ (0.01)
Non-GAAP financial
measures(1)(2) :
Adjusted net
investment income
per share $ 0.29 $0.30 $ 0.41
Adjusted net increase
(decrease) in net
assets resulting
from operations per
share $ (0.56) $0.47 $ 0.33
Total investments at
fair value $ 14,068,239 $ 14,286,039 $ 12,070,858
Total debt
outstanding (net of
unamortized debt
issuance costs) $ 6,904,332 $ 6,288,200 $ 5,127,899
Net assets $ 7,605,453 $ 8,041,598 $ 7,946,723
Net asset value per
share $ 16.49 $ 17.33 $ 17.09
Net debt-to-equity 0.85x 0.75x 0.53x
(1) See Non-GAAP Financial Measures for a description of the non-GAAP measures
and the reconciliations from the most comparable GAAP financial measures to
the Company's non-GAAP measures, including on a per share basis. The Company's
management utilizes these non-GAAP financial measures to internally analyze
and assess financial results and performance. These measures are also
considered useful by management as an additional resource for investors to
evaluate the Company's ongoing results and trends, as well as its performance,
excluding non-cash income and expenses. The presentation of non-GAAP measures
is not intended to be a substitute for financial results prepared in
accordance with GAAP and should not be considered in isolation.
(2) Adjusted to exclude any change in capital gains incentive fees accrued but
not payable. These fees are related to cumulative unrealized gains in excess
of cumulative net realized gains less any cumulative unrealized losses, less
capital gains incentive fees paid inception to date.
PORTFOLIO COMPOSITION
As of March 31, 2026, the Company had investments in 203 portfolio companies across 37 industries, with an aggregate portfolio size of $14.1 billion at fair value and an average investment size of $69.3 million at fair value.
March 31, 2026 December 31, 2025
------------------------- -------------------------
($ in thousands) Fair Value % of Total Fair Value % of Total
------------- ---------- ------------- ----------
Portfolio composition:
First-lien senior
secured (1) $ 10,917,188 77.7 % $ 10,979,070 76.8 %
Second-lien senior
secured 498,121 3.5 % 568,641 4.0 %
Specialty finance
debt 38,000 0.3 % 37,452 0.3 %
Unsecured 456,403 3.2 % 477,128 3.3 %
Preferred equity 982,150 7.0 % 1,072,481 7.5 %
Common equity 615,910 4.4 % 722,100 5.1 %
Specialty finance
equity 527,414 3.7 % 375,812 2.6 %
Joint ventures 33,053 0.2 % 53,355 0.4 %
------------- ---------- ------------- ----------
Total investments $ 14,068,239 100.0 % $ 14,286,039 100.0 %
============= ========== ============= ==========
(1) The Company considers 57% and 61% of first-lien senior secured debt
investments to be unitranche loans as of March 31, 2026 and December 31, 2025,
respectively.
March 31, 2026 December 31, 2025
-------------- -----------------
Number of portfolio companies 203 199
Percentage of debt investments at
floating rates 96.3 % 96.2 %
Percentage of senior secured debt
investments 81.5 % 81.1 %
Weighted average spread over base rate of
all floating rate debt investments 5.3 % 5.4 %
Weighted average total yield of accruing
debt and income-producing securities at
fair value 9.5 % 9.6 %
Weighted average total yield of accruing
debt and income-producing securities at
cost 9.2 % 9.5 %
Percentage of investments on non-accrual
of the portfolio at fair value 0.1 % 0.2 %
PORTFOLIO AND INVESTMENT ACTIVITY
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