EarningsQ3 2026 Earnings Report
DE:FFC0 Q3 2026 EPS Results
Actual EPS€0.33
Consensus EPS€0.32
Beat/MissBeat by +€0.01
One Year Ago EPS€0.34
DE:FFC0 Q3 2026 Revenue Results
Actual Revenue€17.75M
Expected Revenue€61.92M
Beat/MissMissed by -€44.17M
YoY Revenue Growth-67.83%
Earnings Announcement Details
QuarterQ3 2026
Date08/05/2026
TimeBefore Open
Conference CallWednesday, August 5, 2026
DE:FFC0 Upcoming Earnings
Oaktree Specialty Lending's next earnings date is estimated for November 24, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
DE:FFC0 Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
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.Company Guidance
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.
Thrasio Workout and Recoveries
Thrasio repaid ~$25 million (just over 80% of OCSL's loans): entire first‑out term loan paid off and ~75% of the second‑out repaid. Remaining second‑out was marked up from 80% to 99%, returned to accrual and expected to be fully repaid in the coming months — conversion of a non‑accrual into cash and an income‑producing loan.
Conservative and Flexible Balance Sheet
Net leverage ended the quarter at ~1.02x (down from 1.04x prior quarter) and below the midpoint of the 0.9x–1.25x target range. Available liquidity was nearly $700 million (approximately $699M), up about $30M quarter‑over‑quarter, including $40M cash and $659M undrawn capacity.
Stable NAV and Dividend Maintained
NAV per share was $15.70 as of June 30, 2026, essentially flat vs $15.69 at March 31, 2026. Board declared a total cash dividend of $0.33 per share (base $0.30 + supplemental $0.03) payable Sept 30, 2026.
Healthy New Origination Yield and Consistent Commitments
New investment commitments totaled $206M (stable vs $204M prior quarter). Weighted average yield on new debt investments increased to 10.0% from 9.2% in the prior quarter, reflecting higher spreads on new private originations.
Portfolio Quality and Diversification
82% of the portfolio at fair value was first‑lien senior secured debt. Weighted average yield on debt investments was 9.3%. No single position exceeded 2.1% of fair value and the average debt position represented ~65 basis points of the total portfolio at fair value.
Improved Operating Metrics Across Portfolio Companies
Median EBITDA of portfolio companies was ~$189M, up ~4% sequentially. Portfolio company weighted average leverage improved to 5.1x (from 5.2x) and interest coverage improved to 2.4x (from 2.1x).
Productive Joint Venture Performance
Joint ventures held ~$524M across 135 companies and generated aggregate returns on equity of ~11.3% during the quarter; management converted ~25% of the Kemper JV subordinated note into equity without material impact to total JV earnings.
DE:FFC0 Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed