Oaktree Specialty Lending (OCSL) Q3 2026 earnings summary

Executive summary

• Net investment income for the quarter was $32.5 million ($0.37 per share), down from $33.7 million ($0.38 per share) in the prior quarter, with adjusted net investment income also at $32.2 million ($0.37 per share).

• Net asset value (NAV) per share was stable at $15.70 as of June 30, 2026, compared to $15.69 last quarter.

• Portfolio investments at fair value were $2.74 billion across 163 companies, with a weighted average yield on debt investments of 9.3%.

• Board declared total cash distributions of $0.33 per share, including a $0.03 supplemental dividend, payable September 30, 2026.

• Non-accruals reduced to 1.8% of the debt portfolio at fair value, down from 2.6% last quarter and 3.2% a year ago.

Financial highlights

• Adjusted total investment income was $69.2 million, slightly down from $69.7 million last quarter and $69.4 million for Q3 2026.

• Net realized losses were $49.5 million for the quarter, mainly from legacy assets, while net unrealized appreciation was $48.2 million.

• Weighted average yield on new debt investments was 10.0%, up from 9.2% last quarter.

• Weighted average interest rate on debt outstanding was 5.9%.

• Portfolio company weighted average leverage was 5.1x, improved from 5.2x last quarter.

Outlook and guidance

• Management expects continued volatility and opportunity in private credit, with spreads wider than six months ago but not at peak levels.

• Focus remains on disciplined underwriting, portfolio management, and maintaining balance sheet flexibility.

• Plans to address $350 million of unsecured notes maturing in January 2027 over the next several quarters.

• Leverage and liquidity position support continued investment and portfolio growth.

• Management continues to monitor macroeconomic headwinds, including inflation, elevated interest rates, and geopolitical risks.