Core Insights - The article highlights the extensive experience of Roberts Berzins in financial management, particularly in shaping financial strategies for top-tier corporates and executing large-scale financings [1] - It emphasizes Berzins' contributions to institutionalizing the REIT framework in Latvia, aimed at enhancing the liquidity of pan-Baltic capital markets [1] - The article also notes Berzins' involvement in developing national SOE financing guidelines and frameworks to channel private capital into affordable housing [1] Group 1 - Roberts Berzins has over a decade of experience in financial management [1] - He has significantly contributed to the institutionalization of the REIT framework in Latvia [1] - Berzins is a CFA Charterholder and holds an ESG investing certificate [1] Group 2 - He has worked on developing national SOE financing guidelines [1] - Berzins has focused on creating frameworks for channeling private capital into affordable housing [1] - He is actively involved in thought-leadership activities to support pan-Baltic capital markets [1]

Core Insights - Oaktree Specialty Lending (OCSL) reported a solid start to fiscal 2026, with adjusted net investment income (NII) rising to $36.1 million or $0.41 per share, compared to $35.4 million or $0.40 per share in the prior quarter, indicating stable earnings despite lower base rates [2][4] - The company declared a quarterly cash dividend of $0.40 per share, fully covered by earnings, reflecting a commitment to returning value to shareholders [1][4] Financial Performance - Adjusted total investment income decreased to $74.5 million from $76.9 million in the previous quarter, primarily due to lower interest income from reduced reference rates [1] - Net expenses decreased modestly, aided by a $4 million reduction in Part I incentive fees [1] - Net asset value (NAV) per share fell to $16.30 from $16.64, largely due to markdowns, with Pluralsight being the largest detractor [4][11] Portfolio Deployment and Metrics - New funded investments totaled $314 million, increasing the portfolio size to approximately $2.95 billion, with a weighted average yield on debt of about 9.3% [4][5][6] - Non-accruals represented 3.1% of the debt portfolio, with management focused on reducing these and reinvesting proceeds [3][8] - The average position in the portfolio represents less than 1% of fair value, with no single position exceeding 2% [6] Market Conditions and Strategy - Private credit conditions reflect a bifurcation in the economy, with strong companies retaining access to capital while weaker ones face challenges [12] - Management believes private credit spreads have bottomed at SOFR plus 450 to 475 basis points, with potential for stability in 2026 [13] - The company has emphasized a disciplined approach to payment-in-kind (PIK) interest, which represented 6.3% of adjusted total investment income in the quarter [14] Software and AI Focus - Software investments accounted for approximately 23% of the portfolio, with a focus on high-switching-cost providers and a coherent AI roadmap [15] - The firm has become more selective in its software underwriting, adding criteria to assess risk related to AI [15][16] Liquidity and Leverage - OCSL ended the quarter with approximately $576 million in liquidity, including $81 million in cash and $495 million in undrawn revolving credit capacity [17] - Net leverage increased to 1.07x from 0.97x, reflecting higher deployment, while the long-term target leverage range remains between 0.9x and 1.25x [17]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Adjusted Net Investment Income for Q1 2026 was $36.1 million, or $0.41 per share, up from $35.4 million or $0.40 per share in the prior quarter [4][19] - NAV per share decreased to $16.30 from $16.64 in the previous quarter due to unrealized depreciation on certain investments [19] - Adjusted total investment income decreased to $74.5 million from $76.9 million in the prior quarter, primarily due to lower interest income [19][20] Business Line Data and Key Metrics Changes - New funded investments totaled $314 million, up from $220 million in the prior quarter, reflecting a 42% sequential increase [6][16] - Non-accruals represented 3.1% of the total debt portfolio, stable sequentially and down nearly 85 basis points year-over-year [7][18] - The weighted average yield on debt investments was 9.3%, with first lien senior secured debt comprising 85% of the total portfolio [15][21] Market Data and Key Metrics Changes - Current trends in private credit show a bifurcation in the economy, with companies of scale having ample access to capital while struggling companies face limited access [9] - Spreads in private credit have bottomed out at SOFR +450-475 basis points, with expectations for stability in 2026 [10] - The median portfolio EBITDA increased from $150 million to $190 million sequentially, driven by new originations in larger companies [30] Company Strategy and Development Direction - The company remains focused on disciplined capital deployment into income-generating assets and reducing non-accruals to improve earnings power [5][6] - Oaktree is prioritizing loans to businesses with resilient models and defensible market positions, particularly in the software sector [10][12] - The company is monitoring the impact of AI on private credit and is cautious about potential disruptions in the software industry [11][38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding middle-market M&A activity improving over the year, despite current lower volumes [9] - The company is focused on maintaining strong alignment with shareholders while navigating an evolving credit landscape [8] - Concerns were raised about the long-term refinanceability of loans in the software sector due to potential AI disruptions [38][39] Other Important Information - The company ended the quarter with over $576 million in available liquidity, including $81 million in cash [21][22] - The joint ventures held $511 million of investments, generating ROEs of 12% in aggregate [22] Q&A Session Summary Question: Can you provide insight into the portion of the portfolio that is underperforming? - Management indicated that underperforming assets include non-accruals and positions trading below par, with most below-par loans being public positions [24][25] Question: What drove the increase in median portfolio EBITDA? - The increase was primarily driven by new originations funded in the fourth quarter, which were larger companies, contributing to a mix shift [30] Question: Can you discuss the unrealized appreciation and markdowns in the quarter? - Pluralsight was the largest driver of markdowns, accounting for about 38% of the total mark, with some smaller marks in other private positions [32] Question: How is the company characterizing top-line growth and EBITDA trends in the software sector? - Management noted that it is too early to see performance degradation in software names, but concerns exist regarding long-term refinanceability due to AI risks [36][38]

Financial Data and Key Metrics Changes - Adjusted Net Investment Income for Q1 2026 was $36.1 million, or $0.41 per share, up from $35.4 million or $0.40 per share in the prior quarter [4][21] - NAV per share decreased to $16.30 from $16.64 in the previous quarter due to unrealized depreciation on certain investments [21] - Adjusted total investment income decreased to $74.5 million from $76.9 million, primarily due to lower interest income [22][23] Business Line Data and Key Metrics Changes - New funded investments totaled $314 million, up from $220 million in the prior quarter, reflecting a 42% sequential increase [6][17] - Non-accruals represented 3.1% of the total debt portfolio, stable sequentially and down nearly 85 basis points year-over-year [7][20] - The average all-in spread and yield of new private investments was 525 basis points and 9%, respectively [6] Market Data and Key Metrics Changes - Current trends in private credit show a bifurcation in the economy, with companies of scale having ample access to capital while struggling companies face limited access [9] - After the Fed rate cut in September, spreads in private credit have stabilized at SOFR plus 450-475 basis points [10] - The median portfolio EBITDA increased from $150 million to $190 million sequentially, driven by new originations in larger companies [34] Company Strategy and Development Direction - The company is focused on deploying capital into income-generating assets and reducing non-accruals to improve earnings power [5][6] - There is a commitment to disciplined underwriting and selectivity in investment opportunities, particularly in resilient market-leading businesses [11][12] - The company is monitoring the impact of AI on private credit and the broader economy, emphasizing the importance of execution and speed of adoption [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the stability of spreads in 2026 and the potential for increased middle-market M&A activity [10][12] - Concerns were raised about the long-term impact of AI on software companies, particularly regarding their refinanceability [40][42] - The company remains constructive on the long-term outlook for private credit, emphasizing the importance of active portfolio management [13] Other Important Information - The company declared a quarterly cash dividend of $0.40 per share, payable on March 31, 2026 [5] - The weighted average interest rate on debt outstanding was 6.1%, down from 6.5% in the prior quarter [24] - The company has approximately $576 million in liquidity, including $81 million in cash and $495 million in undrawn capacity on its credit facility [24] Q&A Session Summary Question: Can you provide insight into the portion of the portfolio that is underperforming? - Management indicated that underperforming assets include non-accruals and positions trading below par, with most below-par loans being public positions [27][28] Question: What drove the increase in median portfolio EBITDA? - The increase was primarily driven by new originations funded in the fourth quarter, which were larger companies, contributing to a mix shift [34][35] Question: Can you discuss the unrealized appreciation and markdowns in the quarter? - The largest driver of unrealized depreciation was Pluralsight, accounting for about 38% of the total mark, with some smaller marks in other private positions [36][37] Question: How does the company view top-line growth and EBITDA trends in the software sector? - Management believes it is too early to see performance degradation in software names, but concerns exist regarding long-term refinanceability due to potential AI disruption [40][42]

Financial Data and Key Metrics Changes - Adjusted Net Investment Income for Q1 2026 was $36.1 million, or $0.41 per share, a modest increase from $35.4 million or $0.40 per share in the prior quarter [3][20] - NAV per share decreased to $16.30 from $16.64 in the previous quarter due to unrealized depreciation on certain investments [20] - Adjusted total investment income decreased to $74.5 million from $76.9 million, primarily due to lower interest income [20][21] - Net leverage ratio increased to 1.07 times from 0.97 times, reflecting strong deployments during the quarter [22] Business Line Data and Key Metrics Changes - New funded investments totaled $314 million, up from $220 million in the prior quarter, indicating a 42% sequential increase [5][16] - Non-accruals represented 3.1% of the total debt portfolio, stable sequentially and down nearly 85 basis points year-over-year [5][19] - The weighted average yield on debt investments was 9.3%, with first lien senior secured debt comprising 85% of the total portfolio [15][22] Market Data and Key Metrics Changes - The private credit market is experiencing a bifurcation, with companies of scale and profitability having ample access to capital, while struggling companies face limited access [8] - Spreads in private credit have bottomed out at SOFR plus 450-475 basis points, with expectations for stability in 2026 [9][10] - Median portfolio EBITDA increased from $150 million to $190 million sequentially, driven by new originations of larger companies [33] Company Strategy and Development Direction - The company is focused on disciplined capital deployment into income-generating assets and reducing non-accruals to improve earnings power [4][5] - There is a commitment to strong alignment with shareholders while navigating an evolving credit landscape [6] - The company is prioritizing loans to businesses with resilient models and defensible market positions, particularly in the software sector [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the middle-market M&A activity improving over the year, despite current lower volumes [8] - The impact of AI on private credit is being closely monitored, with expectations of uneven outcomes across different players [10][11] - The company remains constructive on the long-term outlook for private credit, emphasizing disciplined underwriting and active portfolio management [12] Other Important Information - The company declared a quarterly cash dividend of $0.40 per share, payable on March 31, 2026 [4] - The company ended the quarter with over $576 million in available liquidity, including $81 million in cash [23] Q&A Session Summary Question: Can you provide insight into the portion of the portfolio that is underperforming? - Management indicated that underperforming assets include non-accruals and positions trading below par, with most stress observed in public positions [26][27] Question: What drove the increase in median portfolio EBITDA? - The increase was primarily driven by new originations funded in the fourth quarter, which were larger companies, contributing to a mix shift [33] Question: Can you elaborate on the unrealized appreciation and markdowns in the quarter? - The largest driver of unrealized depreciation was Pluralsight, accounting for about 38% of the total mark, with some smaller marks in other private positions [35] Question: How does the company view top-line growth and EBITDA trends in the software sector? - Management noted that it is too early to see performance degradation in software names, but concerns exist regarding long-term refinanceability due to potential AI disruption [39][40]

Earnings Presentation NASDAQ: OCSL First Quarter 2026 Forward Looking Statements & Legal Disclosures Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to impl ...

分组1 - Oaktree Specialty Lending (OCSL) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $0.54 per share a year ago, representing an earnings surprise of +8.84% [1] - The company posted revenues of $75.1 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.32%, and down from $86.65 million year-over-year [2] - Oaktree Specialty Lending shares have declined approximately 4.7% since the beginning of the year, while the S&P 500 has gained 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $74.58 million, and for the current fiscal year, it is $1.54 on revenues of $300.09 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 36% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Oaktree Specialty Lending Corporation Announces First Fiscal Quarter 2026 Financial Results Exhibit 99.1 LOS ANGELES, CA, February 4, 2026 - Oaktree Specialty Lending Corporation (NASDAQ: OCSL) ("Oaktree Specialty Lending" or the "Company"), a specialty finance company, today announced its financial results for the first quarter ended December 31, 2025. Financial Highlights for the Quarter Ended December 31, 2025 "We delivered solid results in the first fiscal quarter of 2026 including adjusted net investme ...

LOS ANGELES--(BUSINESS WIRE)--Oaktree Specialty Lending Corporation (NASDAQ: OCSL) ("Oaktree Specialty Lending†or the "Company†), a specialty finance company, today announced its financial results for the first quarter ended December 31, 2025. Financial Highlights for the Quarter Ended December 31, 2025 Total investment income was $75.1 million ($0.85 per share) for the first fiscal quarter of 2026 as compared to $77.3 million ($0.88 per share) for the fourth fiscal quarter of 2025. Adjusted t. ...