Oaktree Specialty Lending Corp (OCSL)
NASDAQ:OCSL
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Oaktree Specialty Lending
(NASDAQ:OCSL)
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Rating:58Neutral
Price Target:
$12.50
▼(-4.73% Downside)
Action:Reiterated
Date:05/09/26
OCSL scores in the high-50s primarily due to mixed financial quality (earnings step-down, high leverage, and volatile cash flow) and a mixed earnings outlook (NAV/NII pressure despite improving nonaccruals and strong liquidity). The very high dividend yield supports the score, while technical indicators remain largely neutral.
Positive Factors
Strengthened liquidity and lower leverage
Robust liquidity and reduced net leverage provide durable financial flexibility for a BDC. With $671M available and leverage inside the target band, management can selectively deploy into higher spreads, withstand credit stress, fund realizations, and limit forced asset sales over the next several quarters.
Negative Factors
Elevated leverage and unsecured funding mix
While leverage near 1.0x is common for lending BDCs, high absolute leverage plus a heavy unsecured funding share increases refinancing and funding‑cost sensitivity. In a stress or dislocated funding market, this mix can constrain deployment and raise liquidity and covenant risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened liquidity and lower leverage
Robust liquidity and reduced net leverage provide durable financial flexibility for a BDC. With $671M available and leverage inside the target band, management can selectively deploy into higher spreads, withstand credit stress, fund realizations, and limit forced asset sales over the next several quarters.
Read all positive factors
Oaktree Specialty Lending (OCSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend Yield13.37%
Average Volume (3M)964.63K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth25.84%
EPS Growth338.26%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.57
Shares Outstanding88,085,526
10 Day Avg. Volume739,340
30 Day Avg. Volume964,635
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)0.77
Price to Sales (P/S)3.75
P/FCF Ratio7.89
Enterprise Value/Market Cap2.41
Enterprise Value/Revenue8.80
Enterprise Value/Gross Profit11.21
Enterprise Value/Ebitda19.45
Forecast
1Y Price Target
$11.75Price Target Upside-10.44% Downside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.51
Revenue Forecast (FY)$286.36M
Oaktree Specialty Lending Business Overview & Revenue Model
Company Description
Oaktree Specialty Lending Corporation is a business development company specializing in investments in middle market, bridge financing, first and second lien debt financing, unsecured and mezzanine loan, mezzanine debt, senior and junior secured d...
How the Company Makes Money
OCSL makes money primarily from investment income generated by its portfolio of loans and other investments. The core revenue stream is interest income earned on senior secured and other debt investments; this includes cash-pay interest and, where...
Oaktree Specialty Lending Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call balanced clear operational progress and defensive positioning with material near-term headwinds. Positive items include reduced nonaccruals, stronger liquidity ($671M, +$100M q/q), active realization activity ($334M in proceeds), and improving pricing and documentation in new deals (new deal spreads ~SOFR+500–550 bps; new-deal yields ~9.2%). Offsetting these positives were declines in NAV (from $16.30 to $15.69), a ~310 bps markdown in software loan marks, a drop in adjusted net investment income (to $0.38/sh), and a 36% q/q decline in new commitments. Management emphasized prudence, balance-sheet flexibility and the opportunity set created by wider spreads, resulting in a cautiously constructive tone but with notable risks that leave near-term performance mixed.Positive Updates
Nonaccruals Improved and Legacy Positions Monetized
Nonaccruals were 2.6% of the total debt portfolio at fair value, down from 3.1% last quarter and 4.6% a year ago. Post-quarter the company sold two legacy nonaccruals (Dominion Diagnostics and All Web Leads). Dominion generated $7 million in cash proceeds versus a $5 million mark as of December 31, 2025.
Negative Updates
NAV Decline Driven by Software Marks and Spread Widening
Net asset value per share fell to $15.69 from $16.30 last quarter. The decline was driven primarily by unrealized mark-to-market write-downs in software loans; the fair value of performing software loans declined by approximately 310 basis points during the quarter and the weighted average mark on the software portfolio was 96% (down ~310 bps q/q).
Read all updates
Q2-2026 Updates
Positive
Negative
Nonaccruals Improved and Legacy Positions Monetized
Nonaccruals were 2.6% of the total debt portfolio at fair value, down from 3.1% last quarter and 4.6% a year ago. Post-quarter the company sold two legacy nonaccruals (Dominion Diagnostics and All Web Leads). Dominion generated $7 million in cash proceeds versus a $5 million mark as of December 31, 2025.
Read all positive updates
Company Guidance
OCSL’s guidance stressed conservative balance‑sheet positioning and selective deployment into a repricing market: maintain long‑term target net leverage of 0.9x–1.25x (plan to run mid‑to‑low end) after ending Q2 at 1.04x (down from 1.07x), with available liquidity of $671M (up $100M q/q; $51M cash, $620M undrawn), total debt $1.5B and unfunded commitments ~ $250M; Q2 metrics included NAV $15.69 (vs $16.30), adjusted NII $33.7M or $0.38/sh (vs $36.1M/$0.41), adjusted total investment income $69.7M, weighted average yield on debt investments 9.3% (new debt yield 9.2%, +50bps), weighted average interest rate on debt 5.9% (from 6.1%), PIK ~5.5% of ATI (down from 6.3%), nonaccruals 2.6% of the debt portfolio (down from 3.1% q/q and 4.6% y/y) with two legacy nonaccruals sold post‑quarter, software marks ~96% (‑310bps q/q) with software exposure 21% (broad tech ~26%) and ARR exposure 76bps (from 214bps), portfolio 84% first‑lien, average position 0.7% (no single >2%), median portfolio EBITDA ~$182M, portfolio leverage/coverage ~5.2x/2.1x, JVs $521M across 130 companies (~10% ROE, 1.9x JV leverage), and a dividend framework setting base at $0.30/sh with supplemental =50% of excess ANII (total Q2 dividend $0.34/sh payable June 30; record June 15).Oaktree Specialty Lending Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
62
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 284.92M | 299.70M | 186.23M | 236.85M | 86.04M | 278.82M |
| Gross Profit | 223.67M | 261.37M | 57.61M | 125.20M | 39.11M | 248.31M |
| EBITDA | 128.90M | 151.02M | 57.80M | 119.06M | 32.86M | 240.84M |
| Net Income | 49.65M | 33.92M | 57.91M | 117.33M | 29.22M | 237.26M |
Balance Sheet | ||||||
| Total Assets | 2.89B | 3.00B | 3.20B | 3.22B | 2.65B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 51.26M | 79.63M | 63.97M | 136.45M | 23.53M | 29.33M |
| Total Debt | 1.48B | 1.49B | 1.64B | 1.60B | 1.30B | 1.27B |
| Total Liabilities | 1.51B | 1.54B | 1.71B | 1.70B | 1.40B | 1.32B |
| Stockholders Equity | 1.38B | 1.47B | 1.49B | 1.52B | 1.25B | 1.31B |
Cash Flow | ||||||
| Free Cash Flow | 12.52M | 142.40M | 19.08M | 228.76M | 22.39M | -230.52M |
| Operating Cash Flow | 12.52M | 142.40M | 19.08M | 228.76M | 22.39M | -230.52M |
| Investing Cash Flow | 57.13M | 85.98M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -127.59M | -229.35M | -86.77M | -110.41M | -26.82M | 224.19M |
Oaktree Specialty Lending Technical Analysis
Negative
13.12
Price Trends
11.94
Negative
11.86
Negative
12.19
Negative
Market Momentum
-0.10
Positive
41.21
Neutral
25.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCSL, the sentiment is Negative. The current price of 13.12 is above the 20-day moving average (MA) of 12.21, above the 50-day MA of 11.94, and above the 200-day MA of 12.19, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 41.21 is Neutral, neither overbought nor oversold. The STOCH value of 25.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OCSL.
Oaktree Specialty Lending Risk Analysis
Oaktree Specialty Lending disclosed 70 risk factors in its most recent earnings report. Oaktree Specialty Lending reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Oaktree Specialty Lending Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.16B | 5.42 | 15.80% | 5.20% | 4.05% | 8.52% | |
68 Neutral | $1.88B | 8.10 | 13.01% | 3.40% | 21.73% | 7.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $1.82B | 8.01 | 11.92% | ― | 17.38% | 237.98% | |
64 Neutral | $891.06M | 10.78 | 7.67% | 13.52% | -8.87% | -9.16% | |
60 Neutral | $163.33M | 28.48 | 0.54% | 10.37% | -1.41% | -98.13% | |
58 Neutral | $1.04B | -13.17 | 3.45% | 13.37% | 25.84% | 338.26% |
* Financial Sector Average
OCSL
Oaktree Specialty Lending
11.77
-0.66
-5.34%
AGM
Federal Agricultural
177.61
1.67
0.95%
BBDC
Barings BDC
8.51
0.53
6.70%
LC
LendingClub
15.63
5.77
58.52%
YRD
Yiren Digital
1.60
-4.43
-73.47%
FINV
FinVolution Group
4.49
-3.64
-44.77%
Oaktree Specialty Lending Corporate Events
Executive/Board ChangesPrivate Placements and FinancingShareholder Meetings
Oaktree Specialty Lending Holds Annual Meeting, Adjourns Special Vote
Neutral
Mar 4, 2026
On March 3, 2026, Oaktree Specialty Lending Corporation held its 2026 annual meeting of stockholders, where shareholders elected John B. Frank and Bruce Zimmerman to the board of directors to serve until the 2029 annual meeting. Stockholders also ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.