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Blue Owl Technology Finance Corp.
NYSE: OTF Financials AMC 🔎 Screen
$4.5B
Market Cap
8.3
P/E
0.05
PEG
ROCE
8.9%
ROE
0.78
D/E
OPM
-19.1%
% from 52W High
28
α RS
🔍 OTF is showing a notable setup because Sector RRG has Financials in the Improving quadrant with the trail still strengthening and it's within 19.1% of its 52-week high. Net: Partial signal stack, not a recommendation. ? RRG 52W High
Sources
Financials in Improving quadrant · 19.1% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for OTF including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

Blue Owl Technology Finance Corp. is a business development company specializes in upper middle-market, making debt and equity investments such as senior secured or unsecured loans, subordinated loans or mezzanine loans and equity-related securities including common equity, warrants, preferred stock and similar forms of senior equity, finance and business development company.

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3-Statement Financial Model
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📊 MIXED Blue Owl Technology Finance Corp Q1 2026: NII $0.29, NAV $16.49, 10bps non-accrual rate.
Revenue & Profitability
Adjusted net investment income was $0.29 per share for Q1 2026. Net asset value per share decreased to $16.49 from $17.33 in the prior quarter, primarily due to mark-to-market adjustments partially offset by realized gains and accretion from share repurchases. The board declared a regular dividend of $0.35 per share and a special dividend of $0.05 per share, totaling $0.40 per share. Spillover income stood at $0.50 per share, and the company repurchased $50 million of stock during the quarter.
Outlook
Management observed that the market's discussion around software and AI has become more balanced and nuanced, distinguishing between durable businesses and those more exposed to change. While remaining cautious on AI, they believe high-quality technology businesses display resilience and that volatility has created one of the most attractive investing environments in years, with significantly wider spreads and less available capital. The company expects software deal activity to remain tempered as the market recalibrates, but sees opportunity to enhance portfolio spread through refinancing known names and selectively targeting adjacent technology areas.
Growth Drivers
Key growth levers include deploying capital toward the target leverage range (0.9x-1.25x), which was 0.85x at quarter end, thereby increasing earnings from the portfolio. Additional growth drivers include expanding allocations to digital infrastructure (e.g., GPU and data center financings) and life sciences (via the LSI Financing platform), which currently comprise about 3% of the portfolio. The company also highlighted potential equity upside from co-investments in companies like Revolut and Stripe.
Balance Sheet & CapEx
As a BDC, OTF's capital expenditure is reflected in its investment activity. During Q1 2026, the company made $1.7 billion of new commitments and funded $1.3 billion, though most were from deals originated prior to the recent spread widening. Management noted ample dry powder and the ability to increase leverage toward the target range, positioning the company to capitalize on attractive opportunities in software, digital infrastructure, and life sciences. No specific CapEx guidance was provided.
Margins
Margins were impacted by headwinds including lower base rates from three rate cuts between September and December 2025, spread compression from earlier originations, and lighter non-recurring income (approximately $0.01 below historical averages). PIK income represented about 13% of total investment income, of which 7.6% was PIK interest and 5.4% was PIK dividends. Management noted that as newer originations come on at wider spreads, portfolio margins should improve over time, though the path to full dividend coverage may take longer than previously expected.
Key Risks
Key risks include ongoing uncertainty around AI's impact on software profitability and terminal values, which has driven market-driven valuation pressure on the portfolio (over 80% of the quarter's write-downs were mark-to-market, not credit-related). Other risks include slower deal activity potentially delaying earnings coverage of the base dividend, elevated repayments keeping leverage moderate, and the broader BDC sector headwinds from lower base rates and spread compression. Additionally, lock-up releases for OTF stock (80% of float released, remaining in May/June 2026) could create technical pressure.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Strong Q2 results featured stable NAV, robust earnings, and industry-leading credit quality. Wider spreads and improved market conditions support optimism for dividend coverage by mid-2027, with ongoing portfolio growth in software, digital infrastructure, and life sciences.
Q1 2026 Q1 2026 2026-05-07
Adjusted net investment income per share was $0.29, with NAV per share declining to $16.49 due to market-driven mark-to-market adjustments. The portfolio remains resilient, with strong credit metrics, ample liquidity, and a focus on high-quality technology assets, while management remains selective amid ongoing market volatility.
Q4 2025 Q4 2025 2026-02-19
Delivered strong Q4 and full-year results with robust portfolio growth, increased NAV, and disciplined capital deployment. Maintains a tech-focused, defensively constructed portfolio, confident in navigating AI-driven disruption and market volatility.
Q3 2025 Q3 2025 2025-11-06
Third-quarter results showed strong NAV growth, robust credit quality, and a 9.3% dividend yield. Portfolio performance was driven by senior secured technology investments, with low leverage and ample liquidity supporting future growth.
Q2 2025 Q2 2025 2025-08-07
Strong Q2 results featured rising NAV, robust credit quality, and a 9.3% dividend yield. The portfolio remains focused on upper-middle market software lending, with plans to increase leverage and optimize returns as deal flow improves.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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