Oaktree Specialty Lending (OCSL) - 2025 Q4 - Annual Results

Investment Income - Total investment income for Q4 2025 was $77.3 million ($0.88 per share), an increase from $75.3 million ($0.85 per share) in Q3 2025[2] - Full year total investment income was $316.8 million ($3.68 per share), down from $381.7 million ($4.75 per share) in 2024, primarily due to lower interest income and dividend income[2] - GAAP total investment income for the year ended September 30, 2025, was $316,801,000, with a per share amount of $3.68, compared to $381,665,000 and $4.75 per share for the previous year[32] - Adjusted total investment income for the three months ended September 30, 2025, was $76,866,000, representing a per share amount of $0.87, compared to $74,297,000 and $0.84 for the same period in 2024[32] Net Investment Income - GAAP net investment income for Q4 2025 was $35.8 million ($0.41 per share), compared to $33.5 million ($0.38 per share) in Q3 2025[2] - Adjusted net investment income for Q4 2025 was $35.4 million ($0.40 per share), up from $32.5 million ($0.37 per share) in Q3 2025[11] - Adjusted net investment income for the full year ended September 30, 2025, was $151.3 million ($1.76 per share), down from $179.3 million ($2.23 per share) for the previous year, reflecting a decline of $28.0 million[12] - Net investment income for the three months ended September 30, 2025, was $35,802 million, compared to $33,481 million in the previous quarter and $44,921 million in the same quarter last year[41] Investment Commitments - The company originated $208.2 million in new investment commitments during Q4 2025, with a weighted average yield of 9.7%[2] - New investment commitments for the quarter ended September 30, 2025, totaled $208.2 million, compared to $147.2 million in the previous quarter[14] Debt and Liquidity - Total debt outstanding was $1,495.0 million as of September 30, 2025, with a total debt to equity ratio of 1.02x[2] - Liquidity included $79.6 million in unrestricted cash and $615 million in undrawn capacity under the credit facility as of September 30, 2025[2] - The Company's total debt to equity ratio was 1.02x as of September 30, 2025, up from 0.99x as of June 30, 2025[26] - The Company had $79.6 million of unrestricted cash and cash equivalents and $615.0 million of undrawn capacity on its credit facility as of September 30, 2025[25] Asset Valuation - As of September 30, 2025, the fair value of the investment portfolio was $2.8 billion, consisting of investments in 143 companies, including 124 debt investments and 35 equity investments[17] - Total investments at fair value decreased to $2,847,782 as of September 30, 2025, from $3,021,279 on September 30, 2024, a decline of 5.7%[39] - Control investments at fair value decreased to $227,748 as of September 30, 2025, from $289,404 on September 30, 2024, a decline of 21.3%[39] Earnings and Expenses - Total expenses for the three months ended September 30, 2025, were $43,146 million, down from $47,093 million in the previous quarter and $51,742 million year-over-year[41] - The company reported a net increase in net assets resulting from operations of $24,578 million for the three months ended September 30, 2025, down from $38,352 million in the previous quarter and $36,913 million year-over-year[41] - Earnings per common share for the three months ended September 30, 2025, was $0.28, compared to $0.44 in the previous quarter and $0.45 year-over-year[41] Market Outlook and Risks - The company remains disciplined in underwriting and selective in deploying capital amid an uncertain market outlook[3] - Forward-looking statements indicate potential risks including economic disruptions, changes in laws, and geopolitical conflicts that could impact future performance[36] Company Information - Oaktree Specialty Lending Corporation focuses on providing customized credit solutions to companies with limited access to capital markets[35] - The company is regulated as a business development company under the Investment Company Act of 1940[35] - The company will host a conference call on November 18, 2025, to discuss its fourth fiscal quarter and full year results[33] - Investor relations contact for Oaktree Specialty Lending Corporation is Clark Koury at (213) 830-6222[37]