Blue Owl Technology Finance Corp. (OTF) AI Stock Analysis

• Market Cap: $5.91B
• Dividend Yield: 5.3%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.68
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: N/A
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 0.30
• Shares Outstanding: 468,089,400
• 10 Day Avg. Volume: 2,286,073
• 30 Day Avg. Volume: 1,920,256
• PEG Ratio: 0.52
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 4.96
• P/FCF Ratio: -6.50
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: 12.92
• Enterprise Value/Gross Profit: 18.36
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $14.78
• Price Target Upside: 27.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $1.40B

• Rating: 63 Neutral
• Price Target: $13.50 ▲(16.18% Upside)
• Action: Downgraded Date: 02/19/26
• Date: Action: Downgraded 02/19/26

The score is held back primarily by inconsistent cash generation and data/disclosure discontinuities in 2025 despite strong reported profitability. Valuation is a key offset (low P/E and high yield), while technical indicators are bearish/soft and recent refinancing and buyback-related events are supportive but secondary.

Positive Factors

High profitability & 2025 revenue rebound

Very high historical net margins (about 59–79% 2020–2024, ~47% in 2025) and a marked 2025 revenue rebound indicate durable fee and interest economics from tech-focused lending. Sustained profitability supports internal capital for loss absorption, reinvestment in origination, and payout capacity over the medium term.

Refinancing extends maturities and lowers costs

Issuing $400M of unsecured notes to refinance borrowings provides longer-dated funding and can lower near-term rollover risk. Structural reduction in funding pressure and clearer maturity profile improve liquidity management and decrease sensitivity to short-term market dislocations for 2–5+ months and beyond.

Secured long-term financing via CLO and credit amendments

Major CLO refinancing and credit facility amendments expanded secured funding capacity and cut spreads while extending reinvestment periods. This structural funding flexibility lets the firm better match asset cash flows, scale originations, and manage regulatory risk-retention requirements, supporting durable portfolio growth capacity.

Negative Factors

Volatile, often negative operating cash flow

Frequent negative and highly variable operating cash flow despite reported net income signals weak cash conversion from underwriting and timing mismatches in portfolio collections. This raises reliance on capital markets for liquidity, increases refinancing risk for dividends and buybacks, and undermines sustained free cash generation.

Material 2025 reporting/disclosure discontinuities

Significant reporting anomalies in 2025 (zeroed operating profit fields and debt) reduce transparency into leverage and operating results. Persistent disclosure gaps impair investors' ability to assess credit risk, covenant exposure and capital adequacy, elevating structural governance and information-risk over the medium term.

Uneven revenue and return variability

Historically uneven revenue (drops in 2022 and 2024) and variable ROE indicate inconsistent origination results and credit outcomes in tech lending. Such outcome volatility undermines predictability of income, makes capital planning harder, and can amplify stress on distributions and growth when markets or credit cycles turn.

Blue Owl Technology Finance Corp. Business Overview & Revenue Model

Company Description

Blue Owl Technology Finance Corp. is a business development company specializes in upper middle-market, making debt and equity investments such as senior secured or unsecured loans, subordinated loans or mezzanine loans and equity-related securities including common equity, warrants, preferred stock and similar forms of senior equity. The firm prefers to invest in technology-related and software companies. It primarily makes investments in the United States. Blue Owl Technology Finance Corp. is founded in 2018 and is based in New York, New York.

How the Company Makes Money

Blue Owl Technology Finance Corp. Financial Statement Overview

Summary

Reported profitability is strong (historically very high net margins and a sharp revenue rebound in 2025), but earnings quality is a major concern due to highly volatile and often negative operating cash flow (including 2025) and notable 2025 reporting discontinuities (operating profit fields at zero; debt shown as zero versus prior years).

Income Statement

Profitability is strong across the historical annual periods, with very high net margins (about 59–79% from 2020–2024) and solid net income generation. Revenue momentum improved sharply in 2025 (annual revenue up ~21% to ~$1.10B vs. ~$0.54B in 2024), but the revenue path has been uneven (declines in 2022 and 2024). 2025 profitability still looks healthy at ~47% net margin, though several operating profit fields are reported as zero in 2025, which reduces confidence in the operating earnings picture for that year.

Balance Sheet

The balance sheet shows meaningful scale-up in 2025, with assets rising to ~$14.7B and equity to ~$8.0B. Leverage appears to improve materially in 2025 (debt shown as $0 and debt-to-equity at 0.0), but that is a major discontinuity versus 2020–2024 when debt-to-equity generally ran ~0.75–1.08, suggesting either a large deleveraging event or reporting classification differences. Returns on equity have been decent in most years (roughly 6–12% in 2020–2025, excluding a very weak 2022), but the variability points to a less stable earnings-to-capital profile.

Cash Flow

Cash generation is the key weak spot: operating cash flow is volatile and frequently negative (notably 2021 at about -$2.62B, 2022 at about -$0.30B, and 2025 at about -$0.92B), despite positive net income in each of those years. While 2023 and 2024 show positive operating/free cash flow (~$0.71B and ~$0.22B, respectively), the swings and the 2025 step-down raise questions around working capital/portfolio cash timing and the durability of cash conversion.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	908.05M	1.20B	536.94M	587.43M	176.15M	537.05M
Gross Profit	639.19M	919.34M	353.46M	401.24M	49.98M	452.55M
EBITDA	873.21M	1.04B	514.17M	564.46M	153.04M	514.23M
Net Income	615.25M	720.37M	319.23M	369.14M	19.00M	424.81M
Balance Sheet
Total Assets	13.40B	14.72B	6.72B	6.65B	6.66B	6.29B
Cash, Cash Equivalents and Short-Term Investments	397.13M	667.00K	257.00M	469.02M	203.29M	107.03M
Total Debt	4.97B	6.29B	2.91B	2.95B	3.16B	2.64B
Total Liabilities	5.35B	6.67B	3.10B	3.12B	3.28B	2.76B
Stockholders Equity	8.06B	8.04B	3.63B	3.53B	3.39B	3.53B
Cash Flow
Free Cash Flow	520.17M	-915.95M	221.80M	708.36M	-295.28M	-2.62B
Operating Cash Flow	520.17M	-915.95M	221.80M	708.36M	-295.28M	-2.62B
Investing Cash Flow	-67.68M	-3.76B	-157.65M	0.00	0.00	0.00
Financing Cash Flow	-241.83M	941.88M	-276.17M	-442.63M	391.55M	2.64B

Blue Owl Technology Finance Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTF	63 Neutral	$5.91B	7.18	12.35%	5.30%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASTI	48 Neutral	$49.85M	-1.49	-241.51%	―	36.85%	98.78%
UAVS	45 Neutral	$44.42M	-0.27	-110.92%	―	-6.34%	98.60%
SURG	44 Neutral	$19.45M	-0.39	-313.72%	―	-39.75%	-89.61%
PHUN	43 Neutral	$36.54M	-3.03	-18.69%	―	―	―

Blue Owl Technology Finance Corp. Corporate Events

Blue Owl Technology Finance Announces $400 Million Notes Issuance

On January 23, 2026, Blue Owl Technology Finance Corp. entered into a supplemental indenture with Deutsche Bank Trust Company Americas covering a new $400 million issuance of 6.125% unsecured notes due January 23, 2031, which pay interest semiannually starting July 23, 2026 and feature make-whole and par-call redemption options, as well as change-of-control repurchase protections tied to credit ratings. The transaction, which closed on January 23, 2026 following an underwriting agreement signed on January 20, 2026, is expected to be used primarily to pay down existing debt, including borrowings under the company’s senior secured revolving credit facility maturing in 2029, effectively refinancing a portion of its balance sheet while operating under indenture covenants linked to investment company leverage limits and ongoing financial disclosure obligations.

The most recent analyst rating on (OTF) stock is a Buy with a $17.00 price target. To see the full list of analyst forecasts on Blue Owl Technology Finance Corp. stock, see the OTF Stock Forecast page.

Blue Owl Technology Finance Completes Major CLO Refinancing

On December 16, 2025, Blue Owl Technology Finance Corp., through its consolidated subsidiary Athena CLO II, LLC, completed a $615.1 million term debt securitization refinancing via a collateralized loan obligation backed by middle market loans and related participation interests, with the new secured debt maturing on January 18, 2039. As part of the refinancing, the issuer placed multiple classes of floating-rate secured notes, borrowed $250 million under new Class A-LR loans, issued approximately $52.8 million of additional subordinated preferred shares all purchased by the company, and expanded the pool of collateral by selling and contributing about $217.963 million in additional middle market loans under an amended loan sale agreement, thereby reinforcing regulatory risk-retention requirements and providing long-dated, secured financing capacity for general corporate purposes while maintaining the adviser’s role as collateral manager under updated fee arrangements.

The most recent analyst rating on (OTF) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Blue Owl Technology Finance Corp. stock, see the OTF Stock Forecast page.

Blue Owl Technology Finance Amends and Extends Credit Facility

On December 17, 2025, Blue Owl Technology Finance Corp.’s subsidiary ORTF Funding I LLC amended its existing secured credit facility with Goldman Sachs Bank USA and other parties, extending the reinvestment period to November 16, 2028 and the scheduled maturity date to November 16, 2030, while also reducing the interest spread from 2.400% to 2.00%. These changes are expected to enhance the subsidiary’s funding flexibility and lower its borrowing costs, potentially improving the company’s competitive position in technology-focused lending and benefiting stakeholders through more efficient capital deployment over a longer horizon.

The most recent analyst rating on (OTF) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Blue Owl Technology Finance Corp. stock, see the OTF Stock Forecast page.

Blue Owl Technology Finance Expands Credit Agreement

On December 11, 2025, Athena Funding I LLC executed the Sixth Amendment to its Credit Agreement, originally dated July 15, 2022. This amendment increases the total commitment from $925 million to $1.1 billion, reduces the interest spread from 2.50% to 2.05%, and extends both the Reinvestment Period and the Stated Maturity by several years, potentially enhancing Athena Funding I’s financial flexibility and operational capacity.

The most recent analyst rating on (OTF) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Blue Owl Technology Finance Corp. stock, see the OTF Stock Forecast page.

Blue Owl Technology Sees Significant Insider Stock Purchases

In November, Blue Owl Technology Finance Corp. saw over $15 million in its common stock purchased by executives and employees of Blue Owl Capital Inc. or through its existing share repurchase program. This activity is part of OTF’s authorized plan to repurchase up to $200 million of its common stock, indicating strong internal confidence in the company’s value and potential positive implications for its market positioning.

The most recent analyst rating on (OTF) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Blue Owl Technology Finance Corp. stock, see the OTF Stock Forecast page.