OTF · Blue Owl Technology Finance Corp.

Blue Owl Technology Finance Corp. reported first quarter 2026 results reflecting market volatility in technology sectors, with GAAP net investment income per share rising to $0.37 from $0.26 in the prior quarter, driven by modestly higher investment income of $326 million versus $321 million, due to portfolio growth from net fundings despite lower base rates on floating-rate assets. Adjusted NII per share of $0.29 edged down from $0.30 amid stable interest expenses offset by higher debt balances. However, net realized and unrealized losses per share widened to $(0.84) from $0.18, primarily from credit spread widening impacting valuations, leading to a net decrease in net assets from operations of $(0.47) per share and adjusted $(0.56), contrasting the prior quarter's gains. NAV per share declined 4.8% to $16.49 from $17.33, underscoring portfolio pressure. Portfolio activity showed new commitments of $1.7 billion across 26 companies (14 new), funded $1.3 billion principally in first-lien senior secured debt, with $1.1 billion in sales/repayments, resulting in a stable $14.1 billion fair value across 203 companies, 81.5% senior secured and 96.3% floating-rate debt yielding 9.5% at fair value. Non-accruals improved to 0.1% at fair value. Balance sheet remains solid with net debt-to-equity at 0.85x, $488 million cash, $1.8 billion undrawn capacity, and compliance with covenants. Management highlighted solid credit performance in mission-critical tech businesses adapting to AI, viewing dislocations as opportunities with $2 billion liquidity to deploy selectively and ramp leverage for ROE expansion. The board approved a $300 million buyback, repurchasing $50.2 million accretive to NAV, and declared Q2 dividends of $0.40 per share ($0.35 base + $0.05 special), signaling confidence. Lock-up releases continue, with 80% completed and final tranches through June 2026.