Want to see OCSL full AI Analyst Report?
Top Page
Oaktree Specialty Lending
(NASDAQ:OCSL)
Select Model
Select Model
Rating:69Neutral
Price Target:
$13.00
â–²(11.30% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial performance (strong margins and improved recent cash generation) and a constructive earnings update (lower non-accruals, conservative leverage, ample liquidity, stable NAV). The very high dividend yield supports valuation, while technical signals are only mildly positive and near-term earnings/credit items (slightly lower NII, realized losses, higher PIK, and a 2027 note maturity) temper the upside.
Positive Factors
Portfolio Quality & First‑lien Focus
A portfolio concentrated in first‑lien senior secured loans materially reduces loss severity in credit downturns and supports predictable recovery rates. Broad diversification (small average position, no single >2.1%) lowers idiosyncratic risk and preserves NAV resilience over multi‑quarter cycles.
Negative Factors
Near‑term Refinancing Risk
A large upcoming unsecured maturity and a high share of unsecured debt increase refinancing exposure to market rates and appetite. If market conditions or credit spreads remain elevated, refinancing costs or term roll‑over risks could pressure earnings and constrain new originations over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Quality & First‑lien Focus
A portfolio concentrated in first‑lien senior secured loans materially reduces loss severity in credit downturns and supports predictable recovery rates. Broad diversification (small average position, no single >2.1%) lowers idiosyncratic risk and preserves NAV resilience over multi‑quarter cycles.
Read all positive factors
Oaktree Specialty Lending (OCSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.14B
Dividend Yield12.15%
Average Volume (3M)505.83K
Price to Earnings (P/E)26.8
Beta (1Y)0.68
Revenue Growth-8.10%
EPS Growth-12.87%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.48
Shares Outstanding88,085,526
10 Day Avg. Volume464,214
30 Day Avg. Volume505,829
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)0.77
Price to Sales (P/S)3.75
P/FCF Ratio7.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$12.75Price Target Upside9.16% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)1.5
Revenue Forecast (FY)$284.36M
Oaktree Specialty Lending Business Overview & Revenue Model
Company Description
Oaktree Specialty Lending Corporation (OCSL) functions as a business development company (BDC), dedicated to providing capital solutions for middle-market businesses. Its investment strategy involves a diverse array of financing types, including i...
How the Company Makes Money
OCSL makes money primarily by earning investment income on a portfolio of debt investments made to middle-market borrowers. The core revenue stream is interest income from loans it holds—typically floating-rate senior secured loans—where OCSL rece...
Oaktree Specialty Lending Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presented several clear positives: meaningful progress reducing non‑accruals, a successful Thrasio workout, conservative leverage (net leverage ~1.02x), ample liquidity (~$699M), stable NAV, higher yields on new originations (10.0%) and improved portfolio operating metrics (median EBITDA +4%, interest coverage 2.4x). Offsetting these were modest near‑term headwinds: a small decline in adjusted NII, ~ $15M of realized losses, lower proceeds from exits, industry‑wide deal flow contraction and refinancing/AI risk concentrated in certain cohorts, and an upcoming $350M unsecured note maturity. On balance, the positive balance‑sheet and portfolio improvements and demonstrated workout capabilities outweigh the challenges discussed, but management remains cautious and focused on capital allocation and liquidity management.Positive Updates
Material Reduction in Non-Accruals
Non-accruals were approximately 1.8% of the total debt portfolio at fair value, down 80 basis points sequentially and down 140 basis points year‑over‑year; management also noted a ~280 basis point decline from the March 2025 peak. Exited 5 non‑accrual positions in the last two quarters, leaving 6 investments on non‑accrual.
Negative Updates
Quarterly Earnings Slightly Weaker
Adjusted net investment income was $32.2M, or ~$0.37 per share, down from $33.7M or ~$0.38 per share in the prior quarter. Adjusted total investment income was $69.2M vs $69.7M prior quarter.
Read all updates
Q3-2026 Updates
Positive
Negative
Material Reduction in Non-Accruals
Non-accruals were approximately 1.8% of the total debt portfolio at fair value, down 80 basis points sequentially and down 140 basis points year‑over‑year; management also noted a ~280 basis point decline from the March 2025 peak. Exited 5 non‑accrual positions in the last two quarters, leaving 6 investments on non‑accrual.
Read all positive updates
Company Guidance
The call reiterated guidance to prioritize reducing non‑accruals and maintaining a flexible balance sheet: non‑accruals were ~1.8% of the debt portfolio at fair value (down 80 bps sequentially, 140 bps YoY and ~280 bps from the March 2025 peak), with 6 positions on non‑accrual after exiting 5 in the last two quarters (Thrasio repaid ~ $25M, ~80% of loans; remaining second‑out marked up from 80% to 99% and returned to accrual), while net leverage ended the quarter at ~1.02x (down from 1.04x), inside the 0.9x–1.25x target range, total debt was $1.45B, weighted average interest on debt 5.9%, unsecured debt 65% of total, available liquidity nearly $700M ($40M cash, $659M undrawn), unfunded commitments ~ $208M, and management plans to address $350M of unsecured notes maturing Jan 2027 over the next several quarters; third‑quarter operating metrics included adjusted total investment income $69.2M, adjusted net investment income $32.2M (~$0.37/sh) vs $33.7M ($0.38) prior, a $0.33/share dividend ($0.30 base + $0.03 supplemental), NAV $15.70 (stable), portfolio was 82% first‑lien senior secured with weighted average yield on debt investments 9.3% (new debt yield 10.0%), median EBITDA ~$189M, portfolio leverage 5.1x, interest coverage 2.4x, PIK ~7.8% of investment income, new commitments $206M (vs $204M), proceeds $263M (vs $334M), average position ~65 bps of the portfolio, and no single position >2.1%.Oaktree Specialty Lending Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 279.10M | 299.70M | 186.23M | 236.85M | 86.04M | 278.82M |
| Gross Profit | 224.78M | 261.37M | 57.61M | 125.20M | 39.11M | 248.31M |
| EBITDA | 195.39M | 151.02M | 57.80M | 119.06M | 32.86M | 240.84M |
| Net Income | 42.24M | 33.92M | 57.91M | 117.33M | 29.22M | 237.26M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 3.00B | 3.20B | 3.22B | 2.65B | 2.64B |
| Cash, Cash Equivalents and Short-Term Investments | 39.92M | 79.63M | 63.97M | 136.45M | 23.53M | 29.33M |
| Total Debt | 1.44B | 1.49B | 1.64B | 1.60B | 1.30B | 1.27B |
| Total Liabilities | 1.48B | 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 | 189.27M | 142.40M | 19.08M | 228.76M | 22.39M | -230.52M |
| Operating Cash Flow | 189.27M | 142.40M | 19.08M | 228.76M | 22.39M | -230.52M |
| Investing Cash Flow | -6.61M | 85.98M | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -220.21M | -229.35M | -86.77M | -110.41M | -26.82M | 224.19M |
Oaktree Specialty Lending Technical Analysis
Positive
11.68
Price Trends
11.87
Positive
11.76
Positive
11.81
Positive
Market Momentum
0.15
Negative
68.79
Neutral
85.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OCSL, the sentiment is Positive. The current price of 11.68 is below the 20-day moving average (MA) of 12.05, below the 50-day MA of 11.87, and below the 200-day MA of 11.81, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 68.79 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $965.40M | 10.13 | 9.59% | 13.85% | 11.07% | -12.44% | |
75 Outperform | $1.18B | 3.72 | 5.33% | 6.44% | 0.84% | -12.02% | |
69 Neutral | $1.14B | 26.79 | 2.98% | 13.48% | -8.10% | -12.87% | |
69 Neutral | $2.49B | 12.82 | 13.13% | 2.96% | 31.16% | 7.63% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
54 Neutral | $110.05M | -0.36 | -7.18% | 37.29% | -13.83% | -154.13% |
* Financial Sector Average
OCSL
Oaktree Specialty Lending
12.96
1.08
9.05%
AGM
Federal Agricultural
235.54
62.69
36.27%
BBDC
Barings BDC
9.22
0.72
8.45%
YRD
Yiren Digital
1.26
-4.23
-77.05%
FINV
FinVolution Group
4.86
-3.60
-42.55%
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.