Blue Owl Technology Finance Corp. (OTF)
NYSE:OTF
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Blue Owl Technology Finance Corp.
(NYSE:OTF)
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Rating:62Neutral
Price Target:
$12.00
â–¼(-1.32% Downside)
Action:Reiterated
Date:06/06/26
The score is driven primarily by uneven financial quality—excellent profitability and strong TTM revenue growth are offset by volatile/negative TTM cash flow and leverage risk. Valuation is supportive (moderate P/E and very high yield), while technicals are only mildly positive. Earnings-call commentary is cautiously constructive on credit and liquidity, but NAV pressure and dividend coverage shortfall temper the outlook.
Positive Factors
Revenue growth & high margins
Sustained top-line re-acceleration and very high net income margins materially enhance the firm's ability to generate distributable earnings over time. For a BDC focused on debt income, durable margin strength supports earnings resilience and capacity for payouts despite episodic portfolio mark volatility.
Negative Factors
Volatile cash generation
Highly variable cash conversion undermines predictable funding for dividends and investment activity. Negative TTM operating/free cash flow forces reliance on balance-sheet liquidity, realized gains, or new financing to cover distributions and growth, increasing financing and execution risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & high margins
Sustained top-line re-acceleration and very high net income margins materially enhance the firm's ability to generate distributable earnings over time. For a BDC focused on debt income, durable margin strength supports earnings resilience and capacity for payouts despite episodic portfolio mark volatility.
Read all positive factors
Blue Owl Technology Finance Corp. (OTF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.26B
Dividend Yield5.3%
Average Volume (3M)2.15M
Price to Earnings (P/E)12.5
Beta (1Y)0.12
Revenue Growth134.47%
EPS Growth-36.39%
CountryUS
EmployeesN/A
SectorTechnology
Sector Strength88
IndustryAsset Management
Share Statistics
EPS (TTM)1.83
Shares Outstanding462,642,200
10 Day Avg. Volume2,380,283
30 Day Avg. Volume2,153,284
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)0.74
Price to Sales (P/S)5.55
P/FCF Ratio6.44
Enterprise Value/Market Cap2.29
Enterprise Value/Revenue8.91
Enterprise Value/Gross Profit11.52
Enterprise Value/Ebitda17.51
Forecast
1Y Price Target
$13.30Price Target Upside9.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)1.25
Revenue Forecast (FY)$1.39B
Blue Owl Technology Finance Corp. Business Overview & Revenue Model
Company Description
Blue Owl Technology Finance Corp. (BOTF) functions as a Business Development Company (BDC), concentrating its efforts on providing financial backing to established, growth-oriented businesses within the upper middle-market segment. The firm primar...
How the Company Makes Money
OTF primarily makes money by earning investment income from its portfolio of debt investments. Key revenue streams generally include (1) interest income collected on loans (including cash-pay interest and, where applicable, non-cash components suc...
Blue Owl Technology Finance Corp. Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a balanced but constructive view: credit fundamentals remained strong (very low non-accruals, senior-secured positions, sizable EBITDA of borrowers), management highlighted ample liquidity and successful realizations (notably SpaceX) and positioned the firm to deploy into attractive opportunities as software valuations stabilize. Offsetting these positives were material mark-to-market declines that reduced NAV (~4.8%), adjusted earnings ($0.29/sh) that currently trail distributions ($0.40/sh), spread compression and elevated repayments that slowed the leverage ramp. Management emphasized these were market-driven rather than credit-driven moves and reiterated disciplined underwriting, which supports a cautiously optimistic outlook.Positive Updates
Strong Credit Performance and Low Non-Accruals
Non-accrual rate remained extremely low at 10 basis points of the portfolio at fair value with no new non-accruals this quarter; management emphasized historically strong credit metrics and one of the lowest non-accrual levels in the BDC space.
Negative Updates
NAV Decline and Mark-to-Market Pressure
Net asset value per share fell to $16.49 from $17.33 last quarter, a decline of approximately 4.8%, primarily driven by mark-to-market adjustments across technology and software assets; over 80% of the quarter's write-downs were market-driven rather than credit-driven.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Credit Performance and Low Non-Accruals
Non-accrual rate remained extremely low at 10 basis points of the portfolio at fair value with no new non-accruals this quarter; management emphasized historically strong credit metrics and one of the lowest non-accrual levels in the BDC space.
Read all positive updates
Company Guidance
Management guided that fundamentals remain strong and the company is well positioned to be selective and deploy into the dislocated software market: Q1 adjusted net investment income was $0.29/share and NAV was $16.49 (down from $17.33), with no new non‑accruals and a non‑accrual rate of just 10 bps; the portfolio is ~70% software with a weighted‑average EBITDA of nearly $300M and weighted‑average LTV up to 40% (from 34%), three‑ to five‑rated names at 8.5% of fair value, revolver utilization just under 10%, PIK income 13% of investment income (7.6% PIK interest, 5.4% PIK dividends), net leverage 0.85x (target 0.90x–1.25x) and ample liquidity with over $2.3B of cash/available capacity; activity included $1.1B of repayments, $1.7B commitments ($1.3B funded), $284M net funded investment activity, ~$50M of buybacks this quarter (total $115M over two quarters) under a $300M repurchase authorization (~$250M remaining), spillover income of $0.50/share supporting the $0.35 regular and $0.05 special dividends, and an average debt spread of ~530 bps with average loan marked at ~$0.97—management emphasized the ability to increase leverage toward target, a high underwriting bar, and confidence in continued opportunity creation as spreads remain wider.Blue Owl Technology Finance Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.07B | 536.94M | 587.43M | 176.15M | 537.05M |
| Gross Profit | 1.05B | 779.34M | 353.46M | 401.24M | 49.98M | 452.55M |
| EBITDA | 687.99M | 728.56M | 514.17M | 564.46M | 153.04M | 514.23M |
| Net Income | 422.35M | 720.37M | 319.23M | 369.14M | 19.00M | 424.81M |
Balance Sheet | ||||||
| Total Assets | 14.87B | 14.72B | 6.72B | 6.65B | 6.66B | 6.29B |
| Cash, Cash Equivalents and Short-Term Investments | 827.00K | 667.00K | 257.00M | 469.02M | 203.29M | 107.03M |
| Total Debt | 6.90B | 6.29B | 2.91B | 2.95B | 3.16B | 2.64B |
| Total Liabilities | 7.26B | 6.67B | 3.10B | 3.12B | 3.28B | 2.76B |
| Stockholders Equity | 7.61B | 8.04B | 3.63B | 3.53B | 3.39B | 3.53B |
Cash Flow | ||||||
| Free Cash Flow | -260.16M | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Operating Cash Flow | -260.16M | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Investing Cash Flow | -1.40B | -1.84B | -157.65M | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 1.14B | 941.88M | -276.17M | -442.63M | 391.55M | 2.64B |
Blue Owl Technology Finance Corp. Risk Analysis
Blue Owl Technology Finance Corp. disclosed 21 risk factors in its most recent earnings report. Blue Owl Technology Finance Corp. reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blue Owl Technology Finance Corp. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $2.85B | 8.39 | 15.11% | 10.00% | 14.32% | 36.84% | |
68 Neutral | $13.48B | 11.72 | 8.11% | 9.64% | 14.51% | -20.45% | |
62 Neutral | $5.26B | 12.49 | 5.33% | 5.30% | 134.47% | -36.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $3.40B | 16.72 | 5.24% | 11.70% | 6.69% | -31.63% | |
56 Neutral | $5.44B | 12.38 | 7.05% | 11.44% | -10.53% | -39.73% | |
52 Neutral | $2.98B | -5.42 | -9.39% | 18.52% | -38.13% | -203.38% |
* Technology Sector Average
OTF
Blue Owl Technology Finance Corp.
11.36
-3.45
-23.31%
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-5.66%
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FSK
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BXSL
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-5.05
-17.76%
Blue Owl Technology Finance Corp. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Technology Finance Issues $500M Unsecured Notes
Positive
Jun 5, 2026
On June 5, 2026, Blue Owl Technology Finance Corp. issued $500 million of 6.500% unsecured notes due October 15, 2029, under a supplemental indenture with Deutsche Bank Trust Company Americas, with semiannual interest payments beginning October 15...
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Technology Finance Launches New Revolving Credit Facility
Positive
May 28, 2026
On May 21, 2026, Blue Owl Technology Finance Corp. subsidiary Athena Funding III LLC entered into a Loan Financing and Servicing Agreement establishing a revolving credit facility initially capped at $150 million, expandable to $250 million, with ...
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.