Blue Owl Technology Finance Corp.

OTF reported adjusted net investment income of $0.30 per share in Q2 2026 and net asset value of $16.48 per share. The company said nonaccruals were 10 basis points of fair value, or $20 million, and PIK income declined to approximately 12.5% of total investment income from 13.1% last quarter. Net leverage ended at 0.93x, and the company repurchased over $55 million of stock in the quarter, bringing total repurchases over the past three quarters to roughly $170 million. The board declared a Q3 base dividend of $0.35 per share plus a final quarterly special dividend of $0.05 per share, for total dividends of $0.40 per share. Management said it expects to cover the base dividend by the middle of next year and noted over $2 billion of total cash and available capacity across credit facilities.

Craig Packer framed the quarter as evidence that the portfolio is resilient despite market skepticism around software and private credit. He emphasized that borrowers are still producing steady organic revenue and EBITDA growth, that there are no material stress signs, and that repurchase activity supports NAV at current trading levels. His tone was confident and frustrated at the valuation disconnect, saying the market is implying a severe loss scenario that does not match actual portfolio performance.

Jonathan Lamm highlighted the financial backdrop: adjusted NII of $0.30 per share, NAV of $16.48, and net leverage of 0.93x after over $475 million of net funded investment activity. He said the company issued a $500 million unsecured bond, added $150 million of secured financing, and completed an amend-and-extend of its $2.7 billion revolver, with all 2026 maturities addressed and investment-grade ratings affirmed. He also said the company had over $2 billion of total cash and available capacity, and roughly $195 million remained under the $300 million share repurchase authorization.

Analysts focused on earnings power, leverage, and whether repurchased equity gains and the life sciences JV should be viewed as recurring. Management said the path to $0.35 per share is supported by higher leverage, better new-deal economics, repricing of existing assets, and rotation of about 7% of the portfolio currently in non-income-producing equity. On life sciences, management said the JV is a collection of multiple assets producing stable dividends, with one quarter benefiting from call protection, and described the performance as normal course rather than one-time. Questions also addressed software activity and AI disruption; management said volumes are muted but spreads are wider, documentation is tighter, and they are not seeing material AI-related disruption in the portfolio.