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Sep 30, 2025
Oaktree Q4 2025 Earnings Report
Oaktree Specialty Lending posted solid Q4 results with higher investment income and a stable net investment income amid market headwinds.
Key Takeaways
Oaktree Specialty Lending reported strong Q4 2025 results with an increase in adjusted net investment income and higher investment commitments, despite continued pressure on yields and portfolio valuation.
Total investment income was $77.3 million, up from the previous quarter.
Adjusted net investment income rose to $35.4 million or $0.40 per share.
Weighted average yield on debt investments decreased slightly to 9.8%.
NAV per share declined slightly to $16.64 due to unrealized depreciation.
Revenue by Segment
Forward Guidance
Management emphasized cautious capital deployment and disciplined underwriting going into a challenging market environment.
Positive Outlook
- Fully covered dividend with net investment income
- Higher prepayment and dividend income supported Q4 revenues
- Maintained strong liquidity with $79.6M in cash and $615M undrawn credit
- Continued strength in first lien debt with 83.5% portfolio share
- Strategic reduction in operating and interest expenses
Challenges Ahead
- NAV per share declined due to unrealized losses
- Non-accrual debt increased to 6.5% of portfolio cost
- Weighted average yield on debt declined slightly
- Unrealized depreciation on equity and JV investments
Historical Earnings Impact
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Avg. Return Before/After Earnings
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