Blue Owl Technology Finance Corp. (OTF)
NYSE:OTF
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Blue Owl Technology Finance Corp.
(NYSE:OTF)
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Rating:65Neutral
Price Target:
$13.50
▲(20.21% Upside)
Action:ReiteratedDate:02/25/26
The score is driven by attractive valuation (low P/E and high yield) and a generally positive earnings-call outlook (liquidity, funding cost improvements, deployment backlog, buybacks/dividends). These strengths are offset by weak technical momentum and, most importantly, concerns around earnings quality given volatile/negative operating cash flow and inconsistencies in reported 2025 line items.
Positive Factors
Large, high-quality portfolio
Scale and portfolio quality are durable advantages: a $14B+ portfolio across ~200 companies with low nonaccruals supports steady interest income and diversification. Scale enables deal sourcing, negotiation leverage and loss absorption, underpinning long-term yield generation and underwriting credibility.
Negative Factors
Volatile operating cash flow
Persistent swings in operating cash flow reduce predictability of distributable cash and increase reliance on external financing to fund dividends, buybacks and new investments. Structural cash conversion variability raises risk around sustainment of payouts and planned leverage growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, high-quality portfolio
Scale and portfolio quality are durable advantages: a $14B+ portfolio across ~200 companies with low nonaccruals supports steady interest income and diversification. Scale enables deal sourcing, negotiation leverage and loss absorption, underpinning long-term yield generation and underwriting credibility.
Read all positive factors
Blue Owl Technology Finance Corp. (OTF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.23B
Dividend Yield5.3%
Average Volume (3M)2.41M
Price to Earnings (P/E)8.3
Beta (1Y)>-0.01
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
EmployeesN/A
SectorTechnology
Sector Strength88
IndustryAsset Management
Share Statistics
EPS (TTM)0.30
Shares Outstanding465,330,000
10 Day Avg. Volume1,718,493
30 Day Avg. Volume2,406,689
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 Cap2.21
Enterprise Value/Revenue10.87
Enterprise Value/Gross Profit15.37
Enterprise Value/Ebitda12.40
Forecast
1Y Price Target
$14.29Price Target Upside27.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.3
Revenue Forecast (FY)$1.44B
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 securiti...
How the Company Makes Money
OTF makes money primarily by earning investment income on its portfolio of debt investments. The core revenue stream is interest income collected on loans (and, where applicable, original issue discount and other accretion related to debt investme...
Blue Owl Technology Finance Corp. Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong underlying portfolio quality, continued deployment momentum, capital flexibility and improving funding costs, with tangible near-term actions (repurchases, CLO/SPV, bond issuance) and attractive metrics (NAV growth, ~11% adjusted ROE, low nonaccruals). Headwinds include AI-driven public market volatility, a material market discount to NAV, some slowdown in software growth metrics (NRR), and timing-related pressure on near-term income. On balance, positives around fundamentals, liquidity, disciplined deployment and accretive buybacks materially outweigh the challenges called out.Positive Updates
Successful Public Listing and Distribution Policy
OTF completed its NYSE listing in June 2025 and became the largest publicly traded technology-focused BDC by total assets; Board declared a $0.35 regular quarterly dividend and five special dividends of $0.05 per share (paid quarterly through Sept 2026), supported by $0.40 of pre-listing spillover income.
Negative Updates
Market Volatility and AI-Related Sell-Off
Broad sell-off in tech and SaaS amid AI disruption concerns pressured equity markets and BDCs, contributing to OTF trading at a material discount (management cited stock prices in the '70s range, implying roughly a ~30% discount to NAV as referenced in Q&A).
Read all updates
Q4-2025 Updates
Positive
Negative
Successful Public Listing and Distribution Policy
OTF completed its NYSE listing in June 2025 and became the largest publicly traded technology-focused BDC by total assets; Board declared a $0.35 regular quarterly dividend and five special dividends of $0.05 per share (paid quarterly through Sept 2026), supported by $0.40 of pre-listing spillover income.
Read all positive updates
Company Guidance
The call guided that OTF is well positioned to ramp earnings as leverage increases, highlighting a portfolio of >$14 billion in investments, $6 billion of outstanding debt and $8 billion of total net assets with NAV per share $17.33 (up $0.06 q/q; NAV +35 bps q/q; +~16% since inception); Q4 adjusted net investment income was $0.30/share and adjusted net income $0.47/share (10.9% adjusted net income ROE, “nearly 11%”), net leverage finished the quarter at 0.75x (average 0.66x) with a target leverage range of 0.9–1.25x, and the firm deployed $2.3 billion of new commitments ($2.0 billion funded) with $881 million of repayments and a ~$900 million funding backlog; portfolio composition is ~70% software (apps ~50%, systems & infrastructure ~20%, fintech/payments ~5%), loans sit at low-30s LTVs with average durations of 3–5 years, the team includes >40 technology pros (120+ direct lending pros overall) and ~200 portfolio companies, liquidity/capacity totaled nearly $2.3 billion, the company repurchased $65 million of stock at 0.82x TBV (adding $0.03/share to NAV) and upsized a buyback program to $300 million, announced 5 special $0.05/share dividends (through Sep 2026) in addition to a $0.35/share base dividend (base dividend ≈ 11% yield at current market value), and expects pro forma funding actions (including a $400M unsecured bond) to yield ~ $10 million of annual interest savings.Blue Owl Technology Finance Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.07B | 536.94M | 587.43M | 176.15M | 537.05M |
| Gross Profit | 779.34M | 353.46M | 401.24M | 49.98M | 452.55M |
| EBITDA | 728.56M | 514.17M | 564.46M | 153.04M | 514.23M |
| Net Income | 720.37M | 319.23M | 369.14M | 19.00M | 424.81M |
Balance Sheet | |||||
| Total Assets | 14.72B | 6.72B | 6.65B | 6.66B | 6.29B |
| Cash, Cash Equivalents and Short-Term Investments | 667.00K | 257.00M | 469.02M | 203.29M | 107.03M |
| Total Debt | 6.29B | 2.91B | 2.95B | 3.16B | 2.64B |
| Total Liabilities | 6.67B | 3.10B | 3.12B | 3.28B | 2.76B |
| Stockholders Equity | 8.04B | 3.63B | 3.53B | 3.39B | 3.53B |
Cash Flow | |||||
| Free Cash Flow | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Operating Cash Flow | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Investing Cash Flow | -1.84B | -157.65M | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $5.23B | 8.26 | 9.00% | 5.30% | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
45 Neutral | $37.56M | -3.27 | -11.47% | ― | ― | ― | |
45 Neutral | $52.64M | -1.56 | -61.78% | ― | -6.34% | 98.60% | |
44 Neutral | $35.48M | -1.34 | -261.09% | ― | 36.85% | 98.78% | |
44 Neutral | $15.78M | ― | -994.64% | ― | -39.75% | -89.61% |
* Technology Sector Average
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Blue Owl Technology Finance Corp. Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Blue Owl Technology Finance Announces $400 Million Notes Issuance
Positive
Jan 23, 2026
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 semiannu...
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.