Oaktree Specialty Lending Corporation (NASDAQ:OCSL) reported fiscal first-quarter 2026 results that missed market expectations, with earnings pressured by sizable investment losses despite relatively stable operating income.
The business development company posted earnings per share of $0.06, well below the consensus estimate of $0.38. Quarterly revenue totaled $75.1 million, slightly under analysts’ forecast of $75.27 million. Shares slipped 0.16% in after-hours trading following the release.
Adjusted net investment income for the quarter came in at $36.1 million, or $0.41 per share, compared with $35.4 million, or $0.40 per share, in the prior quarter. However, overall results were weighed down by $31.1 million in net realized and unrealized losses, which had a material impact on reported earnings.
Net asset value per share declined to $16.30 as of December 31, 2025, from $16.64 at the end of September, largely reflecting unrealized depreciation across certain debt and equity holdings.
“We delivered solid results in the first fiscal quarter of 2026 including adjusted net investment income of $36.7 million, or $0.41 per share, and fully covered our dividend,” said Armen Panossian, Chief Executive Officer and Chief Investment Officer of Oaktree Specialty Lending.
During the quarter, Oaktree originated $316.6 million in new investment commitments, while receiving $178.5 million from repayments, exits, and paydowns. The weighted average yield on new debt investments stood at 8.7%, reflecting the impact of a lower interest rate environment.
Total investment income declined to $75.1 million from $77.3 million in the previous quarter, primarily due to reduced interest income linked to lower reference rates and less original issue discount acceleration. This was partially offset by higher fee income.
The company reaffirmed its quarterly cash dividend of $0.40 per share, payable on March 31, 2026, to shareholders of record as of March 16, 2026.