Blue Owl Technology Finance Corp. (OTF)

Price$10.86Cached quoteAs of 2026-09-18 08:03 UTC

AI: Undervalued

Price checkThe shares look undervalued because a deep asset-value discount outweighs current dividend and software-credit risks.

The market values OTF at about 70% of its $16.48 net asset value, meaning the estimated portfolio value left for shareholders after liabilities. Adjusted investment earnings were $0.30 per share in the second quarter, putting the shares near ten times that annualized rate. The $0.35 regular quarterly dividend is not yet fully covered. Even allowing a 15% haircut to reported asset value leaves meaningful upside, so the discount provides a reasonable margin of safety.

Big pictureRecurring lending income remains positive, although merger effects and portfolio marks make reported profit unusually noisy.

The supplied history shows revenue rising from $684 million in 2024 to $1.15 billion in 2025, while total assets more than doubled. Much of that step-up reflects the March 2025 merger with Blue Owl Technology Finance II rather than purely organic growth. In the first half of 2026, adjusted investment earnings were $0.29 and $0.30 per share even though reported net income swung sharply because portfolio values moved. Cash-flow statements are also less useful here because buying and repaying loans creates large investing movements.

Business strengthCredit quality and liquidity are strong, while discounted buybacks help offset the risks created by leverage.

At June quarter-end, OTF held $14.7 billion of investments across 205 companies; 81% were senior secured and 97% of debt investments had floating rates. Loans on non-accrual, where borrowers have stopped paying normally, were only 0.1% of portfolio value. Net debt was 0.93 times equity and available liquidity exceeded $2 billion. OTF repurchased about $105 million of shares during the first half. The huge 2025 share-count increase mainly came from issuing shares for the OTF II merger, not routine dilution.

What could change the storyBetter dividend coverage could unlock the discount, while software losses or falling rates could justify it.

The strongest bull signal would be adjusted investment earnings reaching the $0.35 regular dividend while net asset value remains stable. Wider lending spreads, selective new investments and buying shares below asset value can all help. The bear case is concentrated technology exposure combined with lower interest rates: almost all debt investments float with market rates, so falling rates can reduce income. Software disruption from artificial intelligence could also weaken borrowers. A renewed decline in asset value or rising non-accruals would materially weaken the undervaluation case.

AI: News

Second-quarter stabilizationStable asset values and very low troubled loans eased fears that the technology portfolio was deteriorating.

On August 5, OTF reported adjusted investment earnings of $0.30 per share, up slightly from the first quarter, while net asset value held almost unchanged at $16.48. Loans on non-accrual remained just 0.1% of portfolio value, and the company repurchased $55 million of shares. The stock rose about 8.7% in the next trading session. That timing strongly suggests investors welcomed the stabilization, although it does not prove the results alone caused the rally.

First-quarter markdown shockA sharp portfolio markdown raised concerns about software exposure and whether earnings could fully support the dividend.

On May 6, OTF said net asset value fell 4.8% from the previous quarter to $16.49 per share, mainly because wider credit spreads reduced marked portfolio values. Adjusted investment earnings were only $0.29 per share versus the $0.35 regular dividend. Management said most markdowns reflected market pricing rather than borrower deterioration. Shares fell about 6% the following day, a reaction consistent with concern over asset values and dividend coverage, though other market factors may also have contributed.

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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

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018
Revenue	$1.15B	$684.0M	$683.8M	$494.8M	$354.1M	—	—	—
Operating expenses	$50.8M	$22.8M	$13.6M	$23.1M	—	—	—	—
EBITDA	—	$514.2M	$564.5M	$153.0M	$514.2M	—	—	—
EBITDA margin	—	75.17%	82.55%	30.93%	145.21%	—	—	—
Net income	$720.4M	$319.2M	$369.1M	$19.0M	$424.8M	—	—	—
Net profit margin	62.89%	46.67%	53.98%	3.84%	119.96%	—	—	—
Basic EPSper basic share	$1.76	$1.52	$1.80	$0.09	$3.05	—	—	—
Diluted EPSper diluted share	$1.76	$1.52	$1.80	$0.09	$3.05	—	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

9.53%of listed shares

REGENTS OF THE UNIVERSITY OF CALIFORNIA43.62M shares · Jun 30, 2026

View holders

Top 20 reported holders of OTF
Holder	% owned
REGENTS OF THE UNIVERSITY OF CALIFORNIA	9.53%43.62M shares
Mubadala Investment Co PJSC	6.51%29.79M shares
Orange County Employees Retirement System	4.44%20.3M shares
Cresset Asset Management, LLC	2.61%11.96M shares
CAZ INVESTMENTS LP	1.97%9.03M shares
State of New Jersey Common Pension Fund E	1.37%6.27M shares
Cliffwater LLC	1.29%5.91M shares
Capricorn Investment Group LLC	1.23%5.65M shares
VAN ECK ASSOCIATES CORP	0.97%4.42M shares
RIVERNORTH CAPITAL MANAGEMENT, LLC	0.83%3.79M shares
TEXAS TREASURY SAFEKEEPING TRUST CO	0.75%3.41M shares
Auto-Owners Insurance Co	0.67%3.08M shares
UBS Group AG	0.66%3.03M shares
FRANKLIN RESOURCES INC	0.61%2.78M shares
JPMORGAN CHASE & CO	0.57%2.63M shares
CITADEL ADVISORS LLC	0.55%2.52M shares
Arax Advisory Partners	0.53%2.44M shares
ARES MANAGEMENT LLC	0.43%1.97M shares
Requisite Capital Management, LLC	0.41%1.89M shares
GCM Grosvenor Holdings, LLC	0.39%1.8M shares

Percentages use 457.61M 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

Buys9$576.5K disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 22, 2026Form 4	Temple ChrisDirector	BuyCommon Stock	7.0K	$10.71	$75.0K	12.0K
May 13, 2026Form 4	Weiler MelissaDirector	BuyCommon Stock	10.0K	$10.90	$109.0K	10.0K
May 11, 2026Form 4	Kaye Eric A.Director	BuyCommon Stock	1.0K	$10.74	$10.7K	2.0K
Feb 25, 2026Form 4	Kaye Eric A.Director	BuyCommon Stock	699	$11.45	$8.0K	1.0K
Feb 25, 2026Form 4	Kaye Eric A.Director	BuyCommon Stock	301	$11.42	$3.4K	301