Blue Owl Technology Finance Corp. Announces March 31, 2026 Financial Results
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 endedDecember 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
$50.2 million of OTF common stock, which was accretive to net asset value per share in the first quarter - Approximately 80% of each pre-listing shareholder's position has been released from lock-up, with two remaining releases scheduled in equal tranches of approximately 10.6% each month until
June 12, 2026
"First quarter volatility in technology markets drove meaningful spread widening and pressured valuations across OTF's portfolio, reflecting broader market dynamics rather than underlying credit trends," said
Stock Repurchases
On
Dividend Declarations
The Board declared a second quarter 2026 base dividend of
As previously announced, the Board also declared a series of five special dividends of
Lock-Up Release Schedule
On
As of today, approximately 80% of each shareholder's position has been released from lock-up. The remaining shares still subject to transfer restrictions will be released in accordance with the following schedule:
|
Release Date |
Approximate Percentage of Shares Subject |
Approximate Number of Shares Subject to |
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10.6 % |
49,096,350 |
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10.6 % |
49,099,234 |
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(1) Adjusted to exclude any change in capital gains incentive fees accrued but not paid. These fees are related to cumulative unrealized gains in excess of cumulative net realized gains less any cumulative unrealized losses, less capital gains incentive fees paid inception to date. |
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SELECT FINANCIAL HIGHLIGHTS |
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As of and for the Three Months Ended |
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($ in thousands, except per share amounts) |
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GAAP results: |
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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 |
$ (0.47) |
|
$ 0.44 |
|
$ 0.33 |
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Capital gains incentive fee expense (benefit) per share |
$ (0.08) |
|
$ 0.03 |
|
$ (0.01) |
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Non-GAAP financial measures (1)(2) : |
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Adjusted net investment income per share |
$ 0.29 |
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$ 0.41 |
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Adjusted net increase (decrease) in net assets resulting from |
$ (0.56) |
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$ 0.33 |
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Total investments at fair value |
$ 14,068,239 |
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$ 14,286,039 |
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$ 12,070,858 |
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Total debt outstanding (net of unamortized debt issuance costs) |
$ 6,904,332 |
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$ 6,288,200 |
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$ 5,127,899 |
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Net assets |
$ 7,605,453 |
|
$ 8,041,598 |
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$ 7,946,723 |
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Net asset value per share |
$ 16.49 |
|
$ 17.33 |
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$ 17.09 |
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Net debt-to-equity |
0.85x |
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0.75x |
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0.53x |
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(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. |
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(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. |
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PORTFOLIO COMPOSITION
As of
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($ in thousands) |
Fair Value |
% of Total |
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Fair Value |
% of Total |
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Portfolio composition: |
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First-lien senior secured (1) |
$ 10,917,188 |
77.7 % |
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$ 10,979,070 |
76.8 % |
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Second-lien senior secured |
498,121 |
3.5 % |
|
568,641 |
4.0 % |
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Specialty finance debt |
38,000 |
0.3 % |
|
37,452 |
0.3 % |
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Unsecured |
456,403 |
3.2 % |
|
477,128 |
3.3 % |
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Preferred equity |
982,150 |
7.0 % |
|
1,072,481 |
7.5 % |
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Common equity |
615,910 |
4.4 % |
|
722,100 |
5.1 % |
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Specialty finance equity |
527,414 |
3.7 % |
|
375,812 |
2.6 % |
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Joint ventures |
33,053 |
0.2 % |
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53,355 |
0.4 % |
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Total investments |
$ 14,068,239 |
100.0 % |
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$ 14,286,039 |
100.0 % |
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(1) The Company considers 57% and 61% of first-lien senior secured debt investments to be unitranche loans as of |
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Number of portfolio companies |
203 |
|
199 |
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Percentage of debt investments at floating rates |
96.3 % |
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96.2 % |
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Percentage of senior secured debt investments |
81.5 % |
|
81.1 % |
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Weighted average spread over base rate of all floating rate debt investments |
5.3 % |
|
5.4 % |
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Weighted average total yield of accruing debt and income-producing |
9.5 % |
|
9.6 % |
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Weighted average total yield of accruing debt and income-producing |
9.2 % |
|
9.5 % |
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Percentage of investments on non-accrual of the portfolio at fair value |
0.1 % |
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0.2 % |
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended
For the three months ended
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For the Three Months Ended |
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($ in thousands) |
2026 |
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2025 (4) |
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New investment commitments: |
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Gross originations |
$ 1,700,654 |
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$ 823,820 |
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Less: Sell downs |
(11,389) |
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(4,217) |
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Total new investment commitments |
$ 1,689,265 |
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$ 819,603 |
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Principal amount of new investments funded: |
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First-lien senior secured debt investments |
$ 1,009,602 |
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$ 500,188 |
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Second-lien senior secured debt investments |
— |
|
2,900 |
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Unsecured debt investments |
629 |
|
138,285 |
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Specialty finance debt investments |
— |
|
3,266 |
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Preferred equity investments |
51,482 |
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— |
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Common equity investments |
19,695 |
|
9,519 |
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Specialty finance equity investments |
200,615 |
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10,049 |
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Joint venture investments |
(243) |
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274 |
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Total principal amount of new investments funded |
$ 1,281,780 |
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$ 664,481 |
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Drawdowns (repayments) on revolvers and delayed draw term loans, net |
$ 113,233 |
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$ 31,903 |
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Principal amount of investments sold or repaid: |
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First-lien senior secured debt investments(1) |
$ (969,114) |
|
$ (406,251) |
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Second-lien senior secured debt investments |
(10,833) |
|
(21,000) |
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Unsecured debt investments |
(30,590) |
|
(141,472) |
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Specialty finance debt investments |
— |
|
— |
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Preferred equity investments |
(36,280) |
|
(3,887) |
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Common equity investments |
(15,316) |
|
(50,006) |
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Specialty finance equity investments |
(49,000) |
|
(18,391) |
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Joint venture investments |
— |
|
— |
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Total principal amount of investments sold or repaid |
$ (1,111,133) |
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$ (641,007) |
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Number of new investment commitments in new portfolio companies (2) |
14 |
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12 |
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Average new investment commitment amount in new portfolio |
$ 51,242 |
|
$ 26,674 |
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Weighted average term for new investment commitments (in years) |
5.8 |
|
6.5 |
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Percentage of new debt investment commitments at floating rates |
100.0 % |
|
83.4 % |
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Percentage of new debt investment commitments at fixed rates |
— % |
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16.6 % |
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Weighted average interest rate of new investment commitments (3) |
8.4 % |
|
8.4 % |
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Weighted average spread over applicable base rate of new debt |
4.9 % |
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5.2 % |
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(1) |
Includes scheduled paydowns. |
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(2) |
Number of new investment commitments represents commitments to a particular portfolio company. |
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(3) |
Assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 3.68% and 4.29% as of |
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(4) |
On |
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RESULTS OF OPERATIONS FOR THE FIRST QUARTER ENDED
Investment Income
Investment income modestly increased to
Expenses
Total operating expenses decreased to
Liquidity and Capital Resources
As of
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on
Participants are also invited to access the conference call by dialing one of the following numbers:
- Domestic: (877) 407-8629
- International: +1 (201) 493-6715
All callers will need to reference "
Replay Information:
An archived replay will be available via a webcast link located on the News & Events section of OTF's website for one year, and via the dial-in numbers listed below for 14 days:
- Domestic: (877) 660-6853
- International: +1 (201) 612-7415
- Access ID: 13757814
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(1) Reflects undrawn debt, which is based on committed debt less debt outstanding as of 3/31/2026, and may not reflect the amount currently available due to borrowing base restrictions. |
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ABOUT
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OTF, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OTF's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OTF's filings with the
INVESTOR CONTACTS
Investor Contact:
BDC Investor Relations
credit-ir@blueowl.com
Media Contact:
media@blueowl.com
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FINANCIAL HIGHLIGHTS |
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For the Three Months Ended |
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($ in thousands, except per share amounts) |
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Investments at fair value |
$ 14,068,239 |
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$ 14,286,039 |
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$ 12,070,858 |
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Total assets |
$ 14,868,606 |
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$ 14,715,011 |
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$ 13,219,010 |
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Net asset value per share |
$ 16.49 |
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$ 17.33 |
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$ 17.09 |
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GAAP results: |
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Total investment income |
$ 325,940 |
|
$ 320,575 |
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$ 182,817 |
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Net investment income |
$ 171,311 |
|
$ 123,813 |
|
$ 97,332 |
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Net increase (decrease) in net assets resulting from operations |
$ (219,891) |
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$ 205,817 |
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$ 78,132 |
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Capital gains incentive fee expense (benefit) per share |
$ (0.08) |
|
$ 0.03 |
|
$ (0.01) |
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GAAP per share results: |
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Net investment income |
$ 0.37 |
|
$ 0.26 |
|
$ 0.41 |
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Net realized and unrealized gains (losses) |
$ (0.84) |
|
$ 0.18 |
|
$ (0.08) |
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Net increase (decrease) in net assets resulting from operations |
$ (0.47) |
|
$ 0.44 |
|
$ 0.33 |
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Capital gains incentive fee expense (benefit) per share |
$ (0.08) |
|
$ 0.03 |
|
$ (0.01) |
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Non-GAAP per share financial measures (1)(2) : |
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Adjusted net investment income |
$ 0.29 |
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$ 0.30 |
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$ 0.41 |
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Adjusted net increase (decrease) in net assets resulting from |
$ (0.56) |
|
$ 0.47 |
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$ 0.33 |
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Weighted average yield of accruing debt and income |
9.5 % |
|
9.6 % |
|
10.6 % |
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Weighted average yield of accruing debt and income |
9.2 % |
|
9.5 % |
|
10.6 % |
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Percentage of debt investments at floating rates |
96.3 % |
|
96.2 % |
|
97.2 % |
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(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. |
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(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. |
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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
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(Amounts in thousands, except share and per share amounts) |
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As of March 31, 2026 (Unaudited) |
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As of December 31, 2025 |
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Assets |
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Investments at fair value |
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Non-controlled, non-affiliated investments (amortized cost of |
$ 13,057,271 |
|
$ 13,363,077 |
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Non-controlled, affiliated investments (amortized cost of |
778,795 |
|
692,202 |
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Controlled, affiliated investments (amortized cost of |
232,173 |
|
230,760 |
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Total investments at fair value (amortized cost of |
14,068,239 |
|
14,286,039 |
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Cash (restricted cash of $— and $—, respectively) |
487,336 |
|
282,257 |
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Foreign cash (cost of |
827 |
|
667 |
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Interest and dividend receivable |
99,571 |
|
88,553 |
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Receivable from a controlled affiliate |
693 |
|
720 |
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Prepaid expenses and other assets |
211,940 |
|
56,775 |
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Total Assets |
$ 14,868,606 |
|
$ 14,715,011 |
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Liabilities |
|
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Debt (net of unamortized debt issuance costs of |
$ 6,904,332 |
|
$ 6,288,200 |
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Distribution payable |
184,579 |
|
185,749 |
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Management fee payable |
54,018 |
|
48,556 |
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Incentive fee payable |
28,119 |
|
68,085 |
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Payables to affiliates |
2 |
|
64 |
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Payable for investments purchased |
4,287 |
|
3,006 |
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Accrued expenses and other liabilities |
87,816 |
|
79,753 |
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Total Liabilities |
$ 7,263,153 |
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$ 6,673,413 |
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Commitments and contingencies(1) |
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Net Assets |
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Common shares |
$ 4,611 |
|
$ 4,640 |
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Additional paid-in-capital |
7,514,237 |
|
7,573,712 |
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Total accumulated undistributed earnings |
86,605 |
|
463,246 |
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Total Net Assets |
7,605,453 |
|
8,041,598 |
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Total Liabilities and Net Assets |
$ 14,868,606 |
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$ 14,715,011 |
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Net Asset Value Per Share |
$ 16.49 |
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$ 17.33 |
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(1) Refer to 10-Q Note 8 "Commitments and Contingencies". |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts in thousands, except share and per share amounts) |
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Three Months Ended |
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2026 |
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2025 |
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Investment Income |
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Investment income from non-controlled, non-affiliated investments: |
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Interest income |
$ 268,322 |
|
$ 143,358 |
|
Payment-in-kind ("PIK") interest income |
24,057 |
|
15,281 |
|
Dividend income |
525 |
|
— |
|
PIK dividend income |
14,344 |
|
8,400 |
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Other income |
3,176 |
|
4,639 |
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Total investment income from non-controlled, non-affiliated investments |
310,424 |
|
171,678 |
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Investment income from non-controlled, affiliated investments: |
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Interest income |
1,029 |
|
621 |
|
PIK interest income |
778 |
|
1,176 |
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Dividend income |
9,627 |
|
6,153 |
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PIK dividend income |
3,367 |
|
3,083 |
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Other income |
22 |
|
51 |
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Total investment income from non-controlled, affiliated investments |
14,823 |
|
11,084 |
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Investment income from controlled, affiliated investments: |
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Dividend income |
693 |
|
55 |
|
Total investment income from controlled, affiliated investments |
693 |
|
55 |
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Total Investment Income |
325,940 |
|
182,817 |
|
Operating Expenses |
|
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Interest expense |
$ 103,825 |
|
$ 51,686 |
|
Management fees, net(1) |
53,913 |
|
15,876 |
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Performance based incentive fees |
(10,685) |
|
9,441 |
|
Professional fees |
2,741 |
|
3,368 |
|
Directors' fees |
274 |
|
259 |
|
Other general and administrative |
3,286 |
|
1,503 |
|
Total Operating Expenses |
153,354 |
|
82,133 |
|
Net Investment Income (Loss) Before Taxes |
172,586 |
|
100,684 |
|
Income tax expense (benefit), including excise tax expense (benefit) |
1,275 |
|
3,352 |
|
Net Investment Income (Loss) After Taxes |
171,311 |
|
97,332 |
|
Net Realized and Change in Unrealized Gain (Loss) |
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Net change in unrealized gain (loss): |
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|
|
|
Non-controlled, non-affiliated investments |
$ (448,584) |
|
$ (19,985) |
|
Non-controlled, affiliated investments |
(43,775) |
|
(759) |
|
Controlled, affiliated investments |
1,656 |
|
2 |
|
Translation of assets and liabilities in foreign currencies and other transactions |
(3,659) |
|
1,074 |
|
Income tax (provision) benefit |
79 |
|
(795) |
|
Total Net Change in Unrealized Gain (Loss) |
(494,283) |
|
(20,463) |
|
Net realized gain (loss): |
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|
|
|
Non-controlled, non-affiliated investments |
$ 123,823 |
|
$ 1,847 |
|
Non-controlled, affiliated investments |
(23,156) |
|
— |
|
Foreign currency transactions |
2,414 |
|
(584) |
|
Total Net Realized Gain (Loss) |
103,081 |
|
1,263 |
|
Total Net Realized and Change in Unrealized Gain (Loss) |
$ (391,202) |
|
$ (19,200) |
|
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ (219,891) |
|
$ 78,132 |
|
Earnings Per Share - Basic and Diluted |
$ (0.47) |
|
$ 0.33 |
|
Weighted Average Shares Outstanding - Basic and Diluted |
464,266,454 |
|
235,351,119 |
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(1) |
Refer to "Note 3 — Agreements and Related Party Transactions" for additional details on management fee waiver. |
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NON-GAAP FINANCIAL MEASURES
On a supplemental basis, the Company is disclosing certain adjusted financial measures, each of which is calculated and presented on a basis of methodology other than in accordance with GAAP ("non-GAAP"). 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.
- "Adjusted Net Investment Income" and "Adjusted Net Investment Income Per Share": represent net investment income, excluding 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.
- "Adjusted Net Increase (Decrease) in Net Assets Resulting from Operations" and "Adjusted Net Increase (Decrease) in Net Assets Resulting from Operations Per Share": represent net income, excluding any change in capital gains incentive fees accrued but not payable.
The following table provides a reconciliation of net investment income (the most comparable
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For the Three Months Ended |
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($ in millions, except per share amounts) |
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|
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Net investment income |
$ 171 |
$ 0.37 |
|
$ 124 |
$ 0.26 |
|
$ 97 |
$ 0.41 |
|
Plus: Change in capital gains incentive fees accrued |
(39) |
(0.08) |
|
14 |
0.03 |
|
(1) |
(0.01) |
|
Adjusted net investment income(1) |
$ 133 |
$ 0.29 |
|
$ 138 |
$ 0.30 |
|
$ 96 |
$ 0.41 |
The following table provides a reconciliation of net increase (decrease) in net assets resulting from operations (the most comparable
|
|
For the Three Months Ended |
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|
($ in millions, except per share amounts) |
|
|
|
|
|
|||
|
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Net increase (decrease) in net assets resulting from |
$ (220) |
$ (0.47) |
|
$ 206 |
$ 0.44 |
|
$ 78 |
$ 0.33 |
|
Plus: Change in capital gains incentive fees accrued |
(39) |
(0.08) |
|
14 |
0.03 |
|
(1) |
(0.01) |
|
Adjusted net increase (decrease) in net assets |
$ (259) |
$ (0.56) |
|
$ 220 |
$ 0.47 |
|
$ 77 |
$ 0.33 |
|
|
|
|
|
|
|
(1) Totals may not sum due to rounding. |
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View original content:https://www.prnewswire.com/news-releases/blue-owl-technology-finance-corp-announces-march-31-2026-financial-results-302764668.html
SOURCE