Oaktree Specialty Lending Corp (OCSL)

Price$13.06Cached quoteAs of 2026-09-04 23:44 UTC

AI: Undervalued

Price checkThe shares look undervalued if recent asset values and lending income broadly hold.

The market values each share at about 81% of its latest $15.70 net asset value, implying a roughly 19% discount. Annualizing the latest adjusted net investment income—loan and fee income left after borrowing and operating costs—produces about $1.48 per share, or roughly 8.6 times the market value. The current $1.32 annualized distribution represents a cash yield near 10.4%. Those measures support an undervalued verdict, provided further loan losses do not consume the discount.

Big pictureLoan income still covers the payout, but that cushion has steadily narrowed.

Fiscal revenue fell 17% from $381.7 million in 2024 to $316.8 million in 2025. More recently, adjusted net investment income per share declined from $0.41 in December 2025 to $0.38 in March and $0.37 in June. The latest amount still covered the $0.33 distribution by about 12%. Reported profit is much less stable because changing loan values create gains and losses: net income swung from a $18.9 million loss in March to a $30.9 million profit in June.

Business strengthSenior loans and ample borrowing capacity help, though leverage magnifies borrower losses.

The $2.7 billion portfolio covered 163 companies, and 81.5% was first-lien lending, which has the earliest claim on collateral. Loans no longer recording interest fell from 2.6% to 1.8% of debt at estimated market value between March and June. Liquidity totaled about $699 million against $235 million of unfunded commitments. However, debt equaled 1.05 times equity, so write-downs hit shareholders more sharply; troubled loans were still 4.2% of debt at original cost, signaling incomplete recovery.

What could change the storyCredit recovery offers upside, while falling rates and costly refinancing threaten income.

The bull case strengthens if troubled loans keep declining and repayments are reinvested near June’s 10% new-loan yield. The bear case is lower income as market interest rates fall: 91% of debt investments had floating rates in March. The new 7% notes also cost more than the 5.744% revolving debt they initially replace, although they extend funding. Shares grew 7.1% during fiscal 2025 but have since stayed flat; future issuance below net asset value would dilute holders, while larger buybacks would add value at today’s discount. Fiscal 2025 buybacks were only $10.7 million.

AI: News

Long-term debt refinancingNew long-term debt extends funding but carries a meaningfully higher borrowing cost.

On September 9, OCSL agreed to issue $300 million of unsecured notes paying 7% and maturing in 2031. Expected proceeds of $296.5 million will initially reduce revolving borrowings; that facility carried a 5.744% average rate and had $501 million outstanding in June. The transaction does not issue shares. It improves funding duration and flexibility, but refinancing cheaper revolving debt—or the $350 million of 2.7% notes due in January 2027—would raise interest expense unless asset yields compensate.

Credit quality improvedTroubled loans improved and book value steadied, while lending income edged lower.

Results released August 5 showed June net asset value holding at $15.70 per share versus $15.69 in March. Loans no longer recording interest declined from ten investments and 2.6% of debt value to six and 1.8%. Adjusted net investment income slipped from $0.38 to $0.37 per share, while the distribution eased from $0.34 to $0.33. Shares rose 5.5% the following session; the timing suggests a favorable reading but does not prove the release caused the move.

Dividend reset followed lossesA dividend cut acknowledged weaker income after another quarter of investment losses.

On May 5, OCSL reported March-quarter adjusted net investment income of $0.38 per share, down from $0.41, as lower market interest rates and fewer one-time fees reduced revenue. Net asset value fell from $16.30 to $15.69 after $52.7 million of adjusted realized and unrealized investment losses. Management reduced the quarterly distribution from $0.40 to $0.34. The reset protected coverage, but it confirmed that falling loan income and credit write-downs were reaching shareholder cash returns.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$316.8M	$381.7M	$379.3M	$262.5M	$209.4M
Operating expenses	−$10.2M	−$185,000	$6.1M	$6.3M	—
Net income	$33.9M	$57.9M	$117.3M	$29.2M	$237.3M
Net profit margin	10.71%	15.17%	30.93%	11.13%	113.31%
Basic EPSper basic share	$0.39	$0.72	$1.63	$0.48	$4.39
Diluted EPSper diluted share	$0.39	$0.72	$1.63	$0.48	$4.39

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

8.94%of listed shares

OAKTREE CAPITAL MANAGEMENT LP7.87M shares · Jun 30, 2026

View holders

Top 20 reported holders of OCSL
Holder	% owned
OAKTREE CAPITAL MANAGEMENT LP	8.94%7.87M shares
PRIVATE MANAGEMENT GROUP INC	4.39%3.87M shares
ROYAL BANK OF CANADA	3.32%2.92M shares
BRUNI J V & CO /CO	2.81%2.47M shares
MORGAN STANLEY	2.73%2.4M shares
ARES MANAGEMENT LLC	2.50%2.2M shares
VAN ECK ASSOCIATES CORP	2.49%2.2M shares
Generali Asset Management SPA SGR	2.36%2.08M shares
UBS Group AG	2.36%2.08M shares
Claret Asset Management Corp	1.90%1.67M shares
Russell Investments Group, Ltd.	1.20%1.05M shares
Legal & General Group Plc	0.85%752.4K shares
Melia Wealth LLC	0.83%729.24K shares
Beach Point Capital Management LP	0.51%453.52K shares
RAYMOND JAMES FINANCIAL INC	0.51%450.27K shares
WELLS FARGO & COMPANY/MN	0.42%366.89K shares
TWO SIGMA INVESTMENTS, LP	0.39%340.28K shares
Muzinich & Co., Inc.	0.38%334.74K shares
BlackRock, Inc.	0.38%334K shares
Sumitomo Mitsui Trust Group, Inc.	0.35%310.88K shares

Percentages use 88.09M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys17$734.7K disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 16, 2026Form 4	CALDWELL PHYLLIS RDirector	BuyCommon Stock, par value $0.01 per share	2.5K	$10.77	$26.9K	23.5K
Mar 16, 2026Form 4	Gero Deborah AnnDirector	BuyCommon Stock, par value $0.01 per share	2.0K	$10.78	$21.6K	24.4K
Sep 15, 2025Form 4	CALDWELL PHYLLIS RDirector	BuyCommon Stock, par value $0.01 per share	975	$13.20	$12.9K	21.0K
Sep 15, 2025Form 4	CALDWELL PHYLLIS RDirector	BuyCommon Stock, par value $0.01 per share	25	$13.19	$329.75	20.0K
Sep 15, 2025Form 4	CALDWELL PHYLLIS RDirector	BuyCommon Stock, par value $0.01 per share	2.0K	$13.19	$26.4K	20.0K