Blue Owl Technology Finance Corp. (OTF) reported its fourth‑quarter and full‑year 2025 financial results, posting a net investment income of $320.6 million for the quarter and a net asset value per share of $17.33. The company’s portfolio remains heavily weighted toward first‑lien senior secured loans, with 97% floating‑rate exposure.
Adjusted earnings per share came in at $0.30, falling short of the consensus estimate of $0.32. The miss was driven by a lower than expected net investment income per share of $0.26 versus the projected $0.30, reflecting modest pressure on fee income and a slight increase in credit losses.
Revenue for the quarter was $320.6 million, also below the analyst consensus of $326.3 million. The shortfall was largely attributable to a 1.5% decline in investment income from the technology‑focused loan portfolio, offset by a modest increase in fee income from new credit agreements.
The company’s investment portfolio grew to $14.3 billion as of December 31 2025, nearly doubling from $6.4 billion a year earlier. New commitments of $2.3 billion in Q4 2025 helped drive this expansion, while the company maintained a net debt‑to‑equity ratio of 0.75x, indicating a deliberate move to leverage for growth.
OTF’s board approved a new $300 million stock‑repurchase program, replacing the prior $200 million authorization. The program gives management discretion to repurchase shares at any time, a move that could support the share price and signal confidence in the company’s valuation.
The board also declared a regular dividend of $0.35 per share for the first quarter of 2026 and a series of five special dividends of $0.05 per share, underscoring its commitment to shareholder returns.
An amended lock‑up release schedule, effective November 13 2025, now allows 47% of pre‑listing shareholders’ positions to be released, with the remaining shares scheduled to be released monthly through June 12 2026. The schedule is designed to increase liquidity while preserving the company’s capital structure.
Management emphasized that the portfolio continues to demonstrate excellent credit quality, with non‑accruals at fair value below 0.2%, and that the company remains on track to achieve its target leverage. The company’s focus on technology investments and floating‑rate exposure positions it well to benefit from rising interest rates.
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