Oaktree Specialty Lending Corporation (NASDAQ:OCSL) delivered a mixed set of fourth-quarter results on Tuesday, missing profit expectations even as revenue came in slightly ahead of analyst estimates.
The lender reported earnings per share of $0.28, falling $0.11 below the consensus estimate of $0.39. Quarterly revenue landed at $77.3 million, just above the projected $76.93 million.
For the fiscal fourth quarter ending September 30, 2025, adjusted net investment income rose to $35.4 million ($0.40 per share) from $32.5 million ($0.37 per share) in the prior quarter. The improvement was driven by higher investment income and reduced interest expenses, partly offset by higher Part I incentive fees.
“Our fourth quarter results demonstrate progress in stabilizing the investment portfolio despite an uneven market environment, and we fully covered our quarterly dividend with net investment income,” said Armen Panossian, Chief Executive Officer and Chief Investment Officer of Oaktree Specialty Lending. “In light of the uncertain outlook, we remain disciplined in our underwriting and selective in deploying capital.”
Net asset value per share slipped to $16.64 at quarter-end, compared with $16.76 at the end of the previous quarter and $18.09 a year earlier, reflecting unrealized markdowns on select investments.
During Q4, the company issued $208.2 million in new investment commitments, while receiving $177.0 million from repayments, exits, paydowns and sales. New debt investments carried an average yield of 9.7%.
The Board approved a $0.40 per share quarterly dividend, payable December 31, 2025, to shareholders of record on December 15, 2025.
As of September 30, 2025, Oaktree reported a total debt-to-equity ratio of 1.02x and a net debt-to-equity ratio of 0.97x after accounting for cash and equivalents.