Blue Owl Technology Finance Corp. Announces June 30, 2026 Financial Results

Blue Owl Technology Finance Corp. Announces June 30, 2026 Financial Results

PR Newswire

NEW YORK, Aug. 5, 2026

NEW YORK, Aug. 5, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF" or the "Company") today announced financial results for its second quarter ended June 30, 2026.

SECOND QUARTER 2026 HIGHLIGHTS Second quarter GAAP net investment income ("NII") per share of $0.30Second quarter adjusted NII per share(1) increased to $0.30, as compared to the prior quarter of $0.29Dividends totaled $0.40 per share, including a base dividend of $0.35 per share and a special dividend of $0.05 per share that was declared in connection with the listing, representing an annualized dividend yield of 9.7%(2)Net asset value ("NAV") per share was stable at $16.48, as compared to $16.49 as of March 31, 2026New investment commitments were $852 million and sales and repayments were $222 millionNet debt-to-equity ended at 0.93x, as compared with 0.85x as of March 31, 2026Investments on non-accrual represented 0.6% and 0.1% of the portfolio at cost and fair value, respectively, as compared to 0.3% and 0.1% as of March 31, 2026Repurchased $55 million of common stock during the quarter, which was accretive to NAV per share in the second quarterEnhanced funding flexibility through an amended and extended revolving credit facility with all banking partners renewing commitments, the issuance of $500 million of unsecured debt and the addition of $150 million through a secured financingOn June 12, 2026, all remaining pre-listing share lock-ups expired, resulting in 100% of OTF's float being available for trading"OTF's second quarter stability reflected the strong credit quality of our portfolio, with non-accruals among the lowest in the industry and borrower fundamentals remaining strong," said Craig W. Packer, Chief Executive Officer. "Despite a challenging market backdrop, OTF enhanced the flexibility and diversification of its capital structure through an unsecured bond issuance, new secured financing, and the extension of its revolving credit facility.""Today's market environment is increasingly supportive of ROE expansion over time, as spreads have widened and the rate outlook has improved. With leverage at the low end of our target range and more than $2 billion of available liquidity, OTF is well-positioned to deploy capital selectively across software and other technology-related areas where we have deep expertise and differentiated capabilities," added Erik Bissonnette, President.Dividend DeclarationsOn August 4, 2026, the Board declared a third quarter 2026 base dividend of $0.35 per share for stockholders of record as of September 30, 2026, payable on or before October 15, 2026.As previously announced, the Board also declared a series of five special dividends of $0.05 per share, with the final special dividend payable on October 6, 2026. A full schedule of the record and payment dates can be found on the Company's website at www.blueowltechnologyfinance.com. (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.(2)Dividend yield based on OTF's annualized Q2'26 base dividend of $0.35 per share payable to shareholders of record as of June 30, 2026 annualized Q2'26 special dividend of $0.05 per share payable to shareholders of record as of June 22, 2026, and Q2'26 NAV per share of $16.48.SELECT FINANCIAL HIGHLIGHTSAs of and for the Three Months Ended($ in thousands, except per share amounts)June 30, 2026March 31, 2026June 30, 2025GAAP results: Net investment income per share$ 0.30$ 0.37$ 0.34 Net realized and unrealized gains (losses) per share$ 0.03$ (0.84)$ 0.09 Net increase (decrease) in net assets resulting from operations per share$ 0.33$ (0.47)$ 0.43 Capital gains incentive fee expense (benefit) per share$ —$ (0.08)$ 0.01Non-GAAP financial measures(1)(2):Adjusted net investment income per share$ 0.30$ 0.29$ 0.36Adjusted net increase (decrease) in net assets resulting from operations per share$ 0.33$ (0.56)$ 0.45Total investments at fair value$ 14,680,538$ 14,068,239$ 12,728,642Total debt outstanding (net of unamortized debt issuance costs)$ 7,157,528$ 6,904,332$ 4,752,225Net assets$ 7,539,865$ 7,605,453$ 7,985,418Net asset value per share$ 16.48$ 16.49$ 17.17Net debt-to-equity0.93x0.85x0.58x(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 June 30, 2026, the Company had investments in 205 portfolio companies across 39 industries, with an aggregate portfolio size of $14.7 billion at fair value and an average investment size of $71.6 million at fair value.June 30, 2026March 31, 2026($ in thousands)Fair Value% of TotalFair Value% of TotalPortfolio composition: First-lien senior secured (1)$ 11,444,66177.8 %$ 10,917,18877.7 % Second-lien senior secured 478,7633.3 %498,1213.5 % Specialty finance debt 40,7740.3 %38,0000.3 % Unsecured 464,4783.2 %456,4033.2 % Preferred equity951,6966.5 %982,1507.0 % Common equity747,6695.1 %615,9104.4 % Specialty finance equity515,6173.5 %527,4143.7 % Joint ventures36,8800.3 %33,0530.2 %Total investments$ 14,680,538100.0 %$ 14,068,239100.0 %(1)The Company considers 56% and 57% of first-lien senior secured debt investments to be unitranche loans as of June 30, 2026 and March 31, 2026, respectively.June 30, 2026March 31, 2026Number of portfolio companies205203Percentage of debt investments at floating rates96.7 %96.1 %Percentage of senior secured debt investments81.4 %81.5 %Weighted average spread over base rate of floating rate debt investments5.3 %5.3 %Weighted average total yield of accruing debt and income-producing securities at fair value9.6 %9.5 %Weighted average total yield of accruing debt and income-producing securities at cost9.3 %9.2 %Percentage of investments on non-accrual of the portfolio at fair value0.1 %0.1 %PORTFOLIO AND INVESTMENT ACTIVITYFor the three months ended June 30, 2026, new investment commitments totaled $0.9 billion across 6 new portfolio companies and 7 existing portfolio companies. For the three months ended March 31, 2026, new investment commitments were $1.7 billion across 14 new portfolio companies and 12 existing portfolio companies.For the three months ended June 30, 2026, the principal amount of new investments funded totaled $0.6 billion and aggregate principal amount of sales and repayments was $0.2 billion. For the three months ended March 31, 2026, the principal amount of new investments funded totaled $1.3 billion and aggregate principal amount of sales and repayments was $1.1 billion.For the Three Months Ended June 30,($ in thousands)20262025New investment commitments:Gross originations$ 864,056$ 1,473,048Less: Sell downs(12,500)—Total new investment commitments$ 851,556$ 1,473,048Principal amount of new investments funded:First-lien senior secured debt investments$ 510,968$ 976,328Second-lien senior secured debt investments—130,219Unsecured debt investments——Specialty finance debt investments—2,336Preferred equity investments—32,375Common equity investments30,6671,807Specialty finance equity investments4,98943,387Joint venture investments4,7198,124Total principal amount of new investments funded$ 551,343$ 1,194,576Drawdowns (repayments) on revolvers and delayed draw term loans, net$ 148,515$ 84,243Principal amount of investments sold or repaid:First-lien senior secured debt investments(1)$ (164,447)$ (604,750)Second-lien senior secured debt investments—(101,007)Unsecured debt investments(2,389)(30,661)Specialty finance debt investments——Preferred equity investments(25,020)(7,616)Common equity investments(9,997)(7,148)Specialty finance equity investments(20,494)(5,089)Joint venture investments——Total principal amount of investments sold or repaid$ (222,347)$ (756,271)Number of new investment commitments in new portfolio companies(2)69Average new investment commitment amount in new portfolio companies$ 111,258$ 84,276Weighted average term for new investment commitments (in years)6.56.0Percentage of new debt investment commitments at floating rates100.0 %99.9 %Percentage of new debt investment commitments at fixed rates— %0.1 %Weighted average interest rate of new investment commitments(3)9.0 %9.8 %Weighted average spread over applicable base rate of new debt investment commitments at floating rates5.3 %5.5 %(1)Includes scheduled paydowns.(2)Number of new investment commitments represents commitments to a particular portfolio company.(3)Assumes each floating rate commitment is subject to the greater of the interest rate floor (if applicable) or 3-month SOFR, which was 3.73% and 4.29% as of June 30, 2026 and 2025, respectively.RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JUNE 30, 2026Investment IncomeInvestment income modestly increased to $338 million for the three months ended June 30, 2026 from $326 million for the three months ended March 31, 2026, primarily driven by net portfolio growth and higher dividend income related to a repayment. Other income remained relatively consistent period-over-period. The Company expects that investment income will vary based on a variety of factors including the pace of originations and repayments, spreads of new deployments, and base rate movements.ExpensesTotal operating expenses increased to $199 million for the three months ended June 30, 2026 from $153 million for the three months ended March 31, 2026, primarily due to the absence of the prior quarter's capital gains incentive fee reversal and to modestly higher interest expense, as average daily borrowings increased. As a percentage of total assets, professional fees, directors' fees and other general and administrative expenses remained relatively consistent period-over-period.Liquidity and Capital ResourcesAs of June 30, 2026, the Company had $214 million in cash, $7.3 billion in total principal value of debt outstanding, including $2.6 billion of unsecured notes and $1.8 billion of undrawn capacity(1) on the Company's credit facilities. The funding mix was composed of 63.8% secured and 36.2% unsecured borrowings as of June 30, 2026 on an outstanding basis. The Company was in compliance with all financial covenants under its credit facilities as of June 30, 2026. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to take advantage of market opportunities.(1)Reflects undrawn debt, which is based on committed debt less debt outstanding as of 6/30/2026, and may not reflect the amount currently available due to borrowing base restrictions.CONFERENCE CALL AND WEBCAST INFORMATIONConference Call Information:The conference call will be broadcast live on August 6, 2026 at 11:30 a.m. Eastern Time on the News & Events section of OTF's website at www.blueowltechnologyfinance.com. Please visit the website to test your connection before the webcast. To pre-register for the call, please use the following link: www.blueowltechnologyfinance.com/webcast-registration?event_id=16145. Please visit the website before the webcast to test your connection.Participants are also invited to access the conference call by dialing one of the following numbers:Domestic: (877) 407-8629International: +1 (201) 493-6715All callers will need to reference "Blue Owl Technology Finance Corp." once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.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) 660-6853International: +1 (201) 612-7415Access ID: 13761130ABOUT BLUE OWL TECHNOLOGY FINANCE CORP.Blue Owl Technology Finance Corp. (NYSE: OTF) is a specialty finance company focused on making debt and equity investments to U.S. technology-related companies, with a strategic focus on software. As of June 30, 2026, OTF had investments in 205 portfolio companies with an aggregate fair value of $14.7 billion. OTF has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. OTF is externally managed by Blue Owl Technology Credit Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Blue Owl's Credit platform.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 SEC. Investors should not place undue reliance on these forward-looking statements, which apply only as of the date on which OTF makes them. OTF does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.INVESTOR CONTACTSInvestor Contact:BDC Investor RelationsMichael Mosticchiocredit-ir@blueowl.com Media Contact:Head of CommunicationsAndrew Williamsmedia@blueowl.com FINANCIAL HIGHLIGHTSFor the Three Months Ended($ in thousands, except per share amounts)June 30, 2026March 31, 2026June 30, 2025Investments at fair value$ 14,680,538$ 14,068,239$ 12,728,642Total assets$ 15,054,901$ 14,868,606$ 13,042,932Net asset value per share$ 16.48$ 16.49$ 17.17GAAP results:Total investment income$ 338,032$ 325,940$ 319,467Net investment income$ 138,644$ 171,311$ 160,371Net increase (decrease) in net assets resulting from operations$ 154,222$ (219,891)$ 201,487Capital gains incentive fee expense (benefit) per share$ —$ (0.08)$ 0.01GAAP per share results:Net investment income $ 0.30$ 0.37$ 0.34Net realized and unrealized gains (losses) $ 0.03$ (0.84)$ 0.09Net increase (decrease) in net assets resulting from operations(1)$ 0.33$ (0.47)$ 0.43Capital gains incentive fee expense (benefit) per share$ —$ (0.08)$ 0.01Non-GAAP per share financial measures(2)(3):Adjusted net investment income$ 0.30$ 0.29$ 0.36Adjusted net increase (decrease) in net assets resulting from operations$ 0.33$ (0.56)$ 0.45Weighted average yield of accruing debt and income producing securities at fair value9.6 %9.5 %10.4 %Weighted average yield of accruing debt and income producing securities at amortized cost9.3 %9.2 %10.4 %Percentage of debt investments at floating rates96.7 %96.1 %97.3 %(1)Totals may not sum due to rounding(2)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.(3)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.CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES(Amounts in thousands, except share and per share amounts)As of June 30, 2026(Unaudited)As of December 31, 2025AssetsInvestments at fair valueNon-controlled, non-affiliated investments (amortized cost of $13,997,430 and $13,262,010, respectively)$ 13,643,875$ 13,363,077Non-controlled, affiliated investments (amortized cost of $854,843 and $736,415, respectively)728,216692,202Controlled, affiliated investments (amortized cost of $150,520 and $128,788, respectively)308,447230,760Total investments at fair value (amortized cost of $15,002,793 and $14,127,213, respectively)14,680,53814,286,039Cash (restricted cash of $— and $—, respectively)210,276282,257Foreign cash (cost of $3,435 and $709, respectively)3,230667Interest and dividend receivable114,96788,553Receivable from a controlled affiliate897720Prepaid expenses and other assets44,99356,775Total Assets$ 15,054,901$ 14,715,011LiabilitiesDebt (net of unamortized debt issuance costs of $95,067 and $84,123, respectively)$ 7,157,528$ 6,288,200Distribution payable183,068185,749Management fee payable53,94948,556Incentive fee payable29,31668,085Payables to affiliates—64Payable for investments purchased1,5583,006Accrued expenses and other liabilities89,61779,753Total Liabilities$ 7,515,036$ 6,673,413Commitments and contingencies (Note 8)Net AssetsCommon shares $0.01 par value, 1,000,000,000 shares authorized; 457,612,537 and 464,047,623 shares issued and outstanding, respectively$ 4,576$ 4,640Additional paid-in-capital7,477,5307,573,712Total accumulated undistributed earnings57,759463,246Total Net Assets7,539,8658,041,598Total Liabilities and Net Assets$ 15,054,901$ 14,715,011Net Asset Value Per Share$ 16.48$ 17.33(1)Refer to 10-Q Note 8 "Commitments and Contingencies".CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except share and per share amounts)For the Three Months Ended June 30,For the Six Months Ended June 30,2026202520262025Investment IncomeInvestment income from non-controlled, non-affiliated investments:Interest income$ 273,492$ 264,998$ 541,814$ 408,356Payment-in-kind ("PIK") interest income24,96922,64849,02637,929Dividend income453539978539PIK dividend income13,65715,45528,00123,855Other income4,1674,1057,3438,744Total investment income from non-controlled, non-affiliated investments316,738307,745627,162479,423Investment income from non-controlled, affiliated investments:Interest income1,6411,6122,6702,233PIK interest income2559551,0332,131Dividend income15,0735,86624,70012,019PIK dividend income3,4053,1196,7726,202Other income23324583Total investment income from non-controlled, affiliated investments20,39711,58435,22022,668Investment income from controlled, affiliated investments:Dividend income8971381,590193Total investment income from controlled, affiliated investments8971381,590193Total Investment Income338,032319,467663,972502,284Operating ExpensesInterest expense$ 108,791$ 87,327$ 212,616$ 139,013Management fees, net(1)53,94832,540107,86148,416Performance based incentive fees29,31628,05218,63137,493Professional fees3,0902,8415,8316,209Listing advisory fees—4,821—4,821Directors' fees420314694573Other general and administrative3,4013,0556,6874,558Total Operating Expenses198,966158,950352,320241,083Net Investment Income (Loss) Before Taxes139,066160,517311,652261,201Income tax expense (benefit), including excise tax expense (benefit)4221461,6973,498Net Investment Income (Loss) After Taxes138,644160,371309,955257,703Net Realized and Change in Unrealized Gain (Loss)Net change in unrealized gain (loss):Non-controlled, non-affiliated investments$ 11,954$ 19,330$ (436,630)$ (655)Non-controlled, affiliated investments(38,635)19,194(82,410)18,435Controlled, affiliated investments54,29914,68455,95514,686Translation of assets and liabilities in foreign currencies and other transactions7,10224,8943,44325,968Income tax (provision) benefit—(48)79(843)Total Net Change in Unrealized Gain (Loss)34,72078,054(459,563)57,591Net realized gain (loss):Non-controlled, non-affiliated investments$ (14,349)$ (12,106)$ 109,474$ (10,259)Non-controlled, affiliated investments(2,020)—(25,176)—Foreign currency transactions(2,773)(24,832)(359)(25,416)Total Net Realized Gain (Loss)(19,142)(36,938)83,939(35,675)Total Net Realized and Change in Unrealized Gain (Loss)$ 15,578$ 41,116(375,624)21,916Net Increase (Decrease) in Net Assets Resulting from Operations$ 154,222$ 201,487$ (65,669)$ 279,619Earnings Per Share - Basic and Diluted$ 0.33$ 0.43$ (0.14)$ 0.80Weighted Average Shares Outstanding - Basic and Diluted460,878,695465,124,070462,563,216350,872,326Refer to "Note 3 — Agreements and Related Party Transactions" for additional details on management fee waiver.NON-GAAP FINANCIAL MEASURESOn 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 U.S. GAAP measure) to adjusted net investment income for the periods presented:For the Three Months Ended($ in millions, except per share amounts)June 30, 2026March 31, 2026June 30, 2025AmountPer ShareAmountPer ShareAmountPer ShareNet investment income$ 139$ 0.30$ 171$ 0.37$ 160$ 0.34Plus: Change in capital gains incentive fees accrued but not payable——(39)(0.08)60.01Adjusted net investment income(1)$ 139$ 0.30$ 133$ 0.29$ 167$ 0.36The following table provides a reconciliation of net increase (decrease) in net assets resulting from operations (the most comparable U.S. GAAP measure, or net income) to adjusted net increase (decrease) in net assets resulting from operations (or adjusted net income) for the periods presented:For the Three Months Ended($ in millions, except per share amounts)June 30, 2026March 31, 2026June 30, 2025AmountPer ShareAmountPer ShareAmountPer ShareNet increase (decrease) in net assets resulting from operations$ 154$ 0.33$ (220)$ (0.47)$ 201$ 0.43Plus: Change in capital gains incentive fees accrued but not payable——(39)(0.08)60.01Adjusted net increase (decrease) in net assets resulting from operations(1)$ 154$ 0.33$ (259)$ (0.56)$ 208$ 0.45(1)Totals may not sum due to rounding.