Blue Owl Technology Finance Corp. (BOTF) functions as a Business Development Company (BDC), concentrating its efforts on providing financial backing to established, ...
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$1.40 per share
Est. EPS $0.32 · Revenue $351.77M · 5 analysts
$1.40 per share
Est. EPS $0.32 · Revenue $365.00M · 4 analysts
EPS $0.86 · Revenue $294.87M
| Metric | Latest | YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength. | QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes. |
|---|---|---|---|
| RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three). | $1.1B | +99.8% | -24.6% |
| Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day. | $720.4M | +125.7% | +170.1% |
| Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials. | +72.6% | +10.3% | -17.5% |
| Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on). | +67.9% | +10.3% | +398.6% |
| Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales. | +67.1% | +12.9% | +193.0% |
| Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock. | $924.0M | +316.6% | -637.4% |
| FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine. | +86.1% | +108.5% | -878.0% |
| Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe. | 78.2% | -2.7% | +4.6% |
| Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking. | — | — | — |
| Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground. | $14.7B | +118.9% | +1.3% |
| Metric | Annual (A vs E) | Annual Surprise | Quarter (A vs E) | Quarter Surprise |
|---|---|---|---|---|
| EPS Surprise | 1.76 vs 1.34 | +30.9% | 0.33 vs 0.32 | +4.4% |
| Revenue Surprise | $1.1B vs $1.2B | -6.8% | $321.7M vs $351.8M | -8.6% |
| Date | Executive | Title | Security | Side | Shares | Price |
|---|---|---|---|---|---|---|
| Aug 28, 2026 | Kaye Eric A. | director | Common Stock | A | 1,000 | $11.37 |
| May 22, 2026 | Temple Chris | director | Common Stock | A | 7,000 | $10.71 |
| May 13, 2026 | Weiler Melissa | director | Common Stock | A | 10,000 | $10.90 |
| May 11, 2026 | Kaye Eric A. | director | Common Stock | A | 1,000 | $10.74 |
| Feb 25, 2026 | Kaye Eric A. | director | Common Stock | A | 699 | $11.45 |
Operator: Good morning, everyone, and welcome to the Blue Owl Technology Finance Corp. Q2 2026 Earnings Call. As a reminder, this call is being recorded. At this time, I'd like to turn the call over to Mike Mosticchio, Head of BDC Investor Relations. Mike, please go ahead. Michael Mosticchio: Thank you, operator, and welcome to Blue Owl Technology Finance Corp.'s Second Quarter 2026 Earnings Conference Call. Joining us on the call today are Craig Packer, Chief Executive Officer; Erik Bissonnette, President; and Jonathan Lamm, Chief Financial Officer. I'd like to remind listeners that remarks made during today's call may contain forward-looking statements, which are not guarantees of future performance or results and involve a number of risks and uncertainties that are outside of the company's control. Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described in OTF's filings with the SEC. The company assumes no obligation to update any forward-looking statements. We'd also like to remind everyone that we'll refer to non-GAAP measures on this call, which are reconciled to GAAP figures in our earnings presentation available on the Events and Presentations section of our website. Certain information discussed on this call and in the company's earnings materials, including information related to portfolio companies, was derived from third-party sources and has not been independently verified. The company makes no such representations or warranties with respect to this information. Yesterday, OTF issued its financial results for the second quarter ended June 30, 2026, reporting adjusted net investment income per share of $0.30 and net asset value per share of $16.48. During the call today, we will be referencing materials, including the earnings press release, earnings presentation and 10-Q, which are available on the News and Events section of OTF's website. With that, I'll turn the call over to Craig. Craig Packer: Thanks, Mike. Good morning, everyone, and thank you all for joining us today. OTF delivered another strong quarter with stable net asset value, continued earnings growth and excellent credit quality, including nonaccrual rates that remain among the lowest in the industry. This performance was a direct result of the strength and resiliency of our borrowers' underlying fundamentals. Across the portfolio, our borrowers continue to generate steady organic growth in revenues and EBITDA, and we are not seeing any material signs of stress in the portfolio today. We continue to support NAV per share through ongoing share repurchase activity, which we believe remains prudent at current trading levels. We also made good progress ramping earnings during the quarter. Adjusted NII increased, supported by continued deployment and growth in net leverage. Since our direct listing in June 2025, net leverage has increased by 0.4 of a turn and sits just inside the low end of …
| Name | Title | Gender | Year Born | Status |
|---|---|---|---|---|
Matthew Swatt | Co-Chief Accounting Officer, Co-Treasurer & Co-Controller | Male | 1988 | Active |
Jonathan Lamm | Chief Financial Officer & Chief Operating Officer | Male | 1974 | Active |
Shari Withem | Co-Chief Accounting Officer, Co-Treasurer & Co-Controller | Female | 1983 | Active |
Karen Hager | Chief Compliance Officer | Female | 1972 | Active |
Neena Ann Reddy | Vice President & Secretary | Female | 1978 | Active |
Craig William Packer | Chief Executive Officer & Director | Male | 1966 | Active |
Erik J. Bissonnette | President | Male | 1979 | Active |
BDCs face a 25% P/NAV discount, largely due to fears of AI-driven SaaS disruption. Current data shows no systemic SaaS defaults or rising credit risk in BDC portfolios. Many of the SaaS giants have been delivering stable and strong results.
Externally managed BDCs face structural challenges, notably high fees and misaligned incentives, making them difficult portfolio inclusions. I favor internally managed BDCs for long-term value, but selectively own some external names as well. There could be two motives for owning external ones: 1) tactical trades (high risk, high retur) and 2) long-term income compounding.
OTF trades at a deep discount to NAV after a 25% stock price drop in just 1 year. OTF's portfolio targets upper middle-market tech companies with mission-critical, sticky products, mitigating AI disruption risks despite 70% software exposure. In my eyes, the current 13% dividend yield is unsustainable due to weak NII coverage. But the management targets coverage improvement by mid-next year.
Blue Owl Technology Finance Corp (OTF) delivered a strong Q2, with a 2.4% total NAV return and robust share repurchases boosting NAV accretion. OTF's 13.9% dividend yield will reset lower as special dividends end, but NII yield is expected to rise through mid-2025 on wider tech loan spreads and higher leverage. Management is upbeat, citing improved technicals, wider spreads in tech lending, and catalysts such as portfolio rotation and increased leverage to drive future income.
Blue Owl Technology Finance offers a compelling 32% discount to NAV, driven by AI disruption fears and OBDC's merger missteps. OTF's portfolio is tech-focused, with 97% variable-rate loans and a best-in-class 0.1% non-accrual ratio, signaling strong asset quality. Dividend coverage is weaker than peers, but OTF continues regular and special dividends, supported by undistributed taxable income.
