NEW YORK, Feb. 18, 2026 /PRNewswire/ -- Blue Owl Technology Finance Corp. (NYSE: OTF) ("OTF" or the "Company") today announced financial results for its fourth quarter and year ended December 31, 2025.
FOURTH QUARTER 2025 HIGHLIGHTS
-- Fourth quarter GAAP net investment income ("NII") per share of $0.26
-- Fourth quarter adjusted NII per share of $0.30(1)
-- Dividends declared for the first quarter were $0.40 per share,
representing an annualized dividend yield of 9.2%(2) based on net asset
value ("NAV") per share as of December 31, 2025
-- In connection with the listing, the Board of Directors (the "Board")
declared five special dividends of $0.05 per share to be paid quarterly
through September 2026
-- NAV per share increased to $17.33, as compared with $17.27 as of
September 30, 2025, driven primarily by unrealized and realized gains in
certain equity investments and accretive share repurchases
-- New investment commitments for the fourth quarter were $2.3 billion and
sales and repayments were $881 million, as compared with $1.0 billion of
new investment commitments and $848 million of sales and repayments for
the three months ended September 30, 2025
-- Net debt-to-equity ended at 0.75x, as compared with 0.57x as of September
30, 2025
-- Investments on non-accrual represented 0.4% and 0.2% of the portfolio at
cost and fair value, respectively, as compared with 0.2% and less than
0.1% as of September 30, 2025
-- OTF repurchased approximately $64.6 million of OTF common stock at 82% of
price-to-book value
-- The Board approved a new $300 million share repurchase program, replacing
the prior $200 million authorization
-- Approximately 47% of each pre-listing shareholder's position has been
released from lock-up, with the remainder scheduled to be released in
equal tranches of approximately 10.6% each month until June 12, 2026
"OTF delivered another strong quarter, marked by NAV growth and steady progress towards our target leverage," said Craig W. Packer, Chief Executive Officer. "The portfolio continues to demonstrate excellent credit quality, reinforcing the durability of our technology investing strategy."
Erik Bissonnette, President, added, "Our software credits remain the strongest-performing segment of our direct lending platform and, on average, have delivered strong revenue and EBITDA growth across all market environments. As AI reshapes the technology landscape, we have revisited our underwriting assumptions and assessed that mission-critical solutions with data moats and operating in low risk-tolerance environments, where our portfolio is focused, are well-positioned to adopt and benefit from AI."
Stock Repurchases
On November 4, 2025, the Board approved a $200 million stock repurchase program, for which purchases may be made at management's discretion from time to time in open market transactions. As of December 31, 2025, the Company repurchased approximately $64.6 million of OTF common stock at 82% price-to-book value, accretive to net asset value per share in the fourth quarter.
On February 18, 2026 the Board approved a new repurchase program of up to $300 million of the Company's common stock, replacing the prior $200 million authorization.
Dividend Declarations
The Board declared a first quarter 2026 regular dividend of $0.35 per share for stockholders of record as of March 31, 2026, payable on or before April 15, 2026.
As previously announced, the Board also declared a series of five special dividends of $0.05 per share. A full schedule of the record and payment dates can be found on the Company's website at www.blueowltechnologyfinance.com.
Lock-Up Release Schedule
On November 4, 2025, the Board approved an amended lock-up release schedule, effective as of November 13, 2025, that applies to shares currently subject to transfer restrictions. Under the new schedule, approximately 10.6% of these shares of the Company's common stock continue to be released each month until June 12, 2026.
As of today, approximately 47% of each shareholder's position has been released from lock-up. Following the previously announced amendment, the remaining shares still subject to transfer restrictions will be released in accordance with the following schedule:
Approximate Percentage of Approximate Number of Shares
Shares Subject to Transfer Subject to Transfer
Release Date Restrictions Released Restrictions Released
------------------ ---------------------------- ----------------------------
February 20, 2026 10.6 % 49,096,350
March 9, 2026 10.6 % 49,096,350
April 20, 2026 10.6 % 49,096,350
May 20, 2026 10.6 % 49,096,350
June 12, 2026 10.6 % 49,099,234
(1) Adjusted to exclude any change in capital gains incentive fees accrued
but not paid. These fees are related to cumulative unrealized gains in
excess of cumulative net realized gains less any cumulative unrealized
losses, less capital gains incentive fees paid inception to date.
(2) Annualized dividend yield calculated as Q4 2025 annualized regular
dividend of $0.35 per share and Q4 2025 annualized special dividend of
$0.05 per share payable to shareholders of record as of December 31, 2025
divided by Q4 2025 net asset value per share of $17.33.
SELECT FINANCIAL HIGHLIGHTS
As of and for the Three Months Ended
---------------------------------------------------------------------------
($ in thousands,
except per share December 31, September 30, December 31,
amounts) 2025 2025 2024
------------------------ ----------------------- ------------------------
GAAP results:
Net investment
income per share $ 0.26 $ 0.28 $ 0.41
Net realized and
unrealized gains
(losses) per
share $ 0.18 $ 0.22 $ 0.06
Net increase
(decrease) in net
assets resulting
from operations
per share $ 0.44 $ 0.50 $ 0.48
Capital gains
incentive fee
expense (benefit)
per share $ 0.03 $ 0.04 $ 0.01
Non-GAAP financial
measures(1)(2) :
Adjusted net
investment income
per share $0.30 $0.32 $ 0.42
Adjusted net
increase (decrease)
in net assets
resulting from
operations per
share $0.47 $0.54 $ 0.48
Total investments at
fair value $ 14,286,039 $ 12,884,046 $ 6,407,466
Total debt
outstanding (net of
unamortized debt
issuance costs) $ 6,288,200 $ 4,966,719 $ 2,914,509
Net assets $ 8,041,598 $ 8,055,224 $ 3,625,150
Net asset value per
share $ 17.33 $ 17.27 $ 17.09
Net debt-to-equity 0.75x 0.57x 0.74x
(1) See Non-GAAP Financial Measures for a description of the non-GAAP
measures and the reconciliations from the most comparable GAAP financial
measures to the Company's non-GAAP measures, including on a per share
basis. The Company's management utilizes these non-GAAP financial
measures to internally analyze and assess financial results and
performance. These measures are also considered useful by management as
an additional resource for investors to evaluate the Company's ongoing
results and trends, as well as its performance, excluding non-cash income
and expenses. The presentation of non-GAAP measures is not intended to be
a substitute for financial results prepared in accordance with GAAP and
should not be considered in isolation.
(2) Adjusted to exclude any change in capital gains incentive fees accrued
but not payable. These fees are related to cumulative unrealized gains in
excess of cumulative net realized gains less any cumulative unrealized
losses, less capital gains incentive fees paid inception to date.
PORTFOLIO COMPOSITION
As of December 31, 2025, the Company had investments in 199 portfolio companies across 39 industries, with an aggregate portfolio size of $14.3 billion at fair value and an average investment size of $71.8 million at fair value.
December 31, 2025 September 30, 2025
-------------------------- ---------------------------
($ in thousands) Fair Value % of Total Fair Value % of Total
-------------- ---------- --------------- ----------
Portfolio
composition:
First-lien senior
secured (1) $ 10,979,070 76.8 % $ 9,885,010 76.8 %
Second-lien senior
secured 568,641 4.0 % 426,867 3.3 %
Specialty finance
debt 37,452 0.3 % 36,755 0.3 %
Unsecured 477,128 3.3 % 468,887 3.6 %
Preferred equity 1,072,481 7.5 % 1,096,622 8.5 %
Common equity 722,100 5.1 % 633,523 4.9 %
Specialty finance
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