Oaktree Specialty Lending Corporation Announces Fourth Fiscal Quarter and Full Year 2025 Financial Results

Core Insights - Oaktree Specialty Lending Corporation reported financial results for the fourth fiscal quarter and full year ended September 30, 2025, showing progress in stabilizing its investment portfolio despite market challenges [1][3]. Financial Highlights - Total investment income for Q4 2025 was $77.3 million ($0.88 per share), compared to $75.3 million ($0.85 per share) in Q3 2025, while full-year total investment income was $316.8 million ($3.68 per share), down from $381.7 million ($4.75 per share) in 2024 [6][9]. - Net investment income for Q4 2025 was $35.8 million ($0.41 per share), an increase from $33.5 million ($0.38 per share) in Q3 2025, but down from $175.1 million ($2.18 per share) for the full year 2024 to $152.6 million ($1.77 per share) in 2025 [6][13]. - The company declared a quarterly distribution of $0.40 per share, payable on December 31, 2025 [3][6]. Operational Results - The company originated $208.2 million in new investment commitments and received $177.0 million from prepayments and exits during Q4 2025 [6][18]. - The weighted average yield on new debt investments was 9.7% [6][19]. - As of September 30, 2025, the fair value of the investment portfolio was $2.8 billion, consisting of investments in 143 companies [18][19]. Balance Sheet and Debt - Total debt outstanding was $1,495.0 million, with a total debt to equity ratio of 1.02x and a net debt to equity ratio of 0.97x [6][26]. - The company had $79.6 million in unrestricted cash and cash equivalents and $615 million in undrawn capacity under its credit facility [25][26]. Investment Activity - The investment portfolio included 94.6% in debt investments, with 83.5% in first lien loans [19][20]. - There were ten investments on non-accrual status, representing 6.5% of the debt portfolio at cost [20][21]. Performance Metrics - Adjusted total investment income for Q4 2025 was $76.9 million, reflecting a $2.6 million increase from Q3 2025, primarily due to higher prepayment fees and dividend income [6][9]. - 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 [12][13].