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Blue Owl Technology Finance Corp.
(NYSE:OTF)
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Rating:62Neutral
Price Target:
$9.50
â–¼(-16.74% Downside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by mixed financial performance: strong recent revenue/profitability is tempered by negative and highly volatile cash flow and some balance-sheet clarity concerns. Valuation is a clear positive (low P/E and high yield), but technicals remain weak, keeping the overall rating in the low-60s despite supportive earnings-call and liquidity-related developments.
Positive Factors
Revenue and profitability
Strong TTM revenue expansion and healthy profitability indicate meaningful portfolio income growth and operating scale. If these results remain supported by lending activity, they can strengthen internal capital generation, support dividends, and improve the platform’s ability to fund future portfolio expansion.
Negative Factors
Volatile cash generation
The sharp swing from strong prior-year cash generation to negative TTM operating and free cash flow weakens confidence in internally generated funding. Persistent volatility could increase reliance on borrowings or asset sales and constrain the consistency of distributions and reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and profitability
Strong TTM revenue expansion and healthy profitability indicate meaningful portfolio income growth and operating scale. If these results remain supported by lending activity, they can strengthen internal capital generation, support dividends, and improve the platform’s ability to fund future portfolio expansion.
Read all positive factors
Blue Owl Technology Finance Corp. (OTF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.08B
Dividend Yield18.08%
Average Volume (3M)2.11M
Price to Earnings (P/E)6.8
Beta (1Y)0.55
Revenue Growth94.72%
EPS Growth-55.36%
CountryUS
EmployeesN/A
SectorGeneral
Sector StrengthN/A
IndustryAsset Management
Share Statistics
EPS (TTM)1.30
Shares Outstanding458,185,400
10 Day Avg. Volume2,149,784
30 Day Avg. Volume2,107,818
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 Cap2.87
Enterprise Value/Revenue8.49
Enterprise Value/Gross Profit10.97
Enterprise Value/Ebitda17.34
Forecast
1Y Price Target
$12.86Price Target Upside12.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.29
Revenue Forecast (FY)$1.38B
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. The core revenue stream is interest income on loans it originates or acquires (including cash-pay interest and, where applicable, payment-in-kind (PIK) ...
Blue Owl Technology Finance Corp. Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized multiple substantive strengths: stable NAV, very low nonaccruals (10 bps), improving earnings momentum (adjusted NII $0.30), strong liquidity (> $2 billion cash/capacity), constructive financing actions (issued $500M unsecured bond, $150M secured facility, revolver extended), active share repurchases (~$55M this quarter) and a clear path to cover the base dividend by mid next year. Management also highlighted attractive deployment opportunities from wider spreads and higher forward rates, plus niche growth in life sciences and digital infrastructure. Headwinds include a large and persistent market valuation discount, muted primary deal flow (especially in software), slower repayments, and ongoing AI-related uncertainty in parts of the market. On balance, the positive operational, credit and liquidity indicators materially outweigh the external valuation and market-technical challenges described by management.Positive Updates
Adjusted Net Investment Income and Dividends
Adjusted net investment income (adjusted NII) of $0.30 per share in Q2. Board declared Q3 base dividend of $0.35 and a final quarterly special dividend of $0.05, bringing total dividends to $0.40 per share for the quarter. Management expects to cover the base dividend by the middle of next year.
Negative Updates
Large Market Valuation Discount
Stock trading at a significant discount to NAV; management noted the market-implied discount equates to an implied nearly $3 billion of credit losses (management characterized this as an extreme scenario). Management is disappointed by the disconnect between market valuation and portfolio fundamentals.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted Net Investment Income and Dividends
Adjusted net investment income (adjusted NII) of $0.30 per share in Q2. Board declared Q3 base dividend of $0.35 and a final quarterly special dividend of $0.05, bringing total dividends to $0.40 per share for the quarter. Management expects to cover the base dividend by the middle of next year.
Read all positive updates
Company Guidance
Management guided that OTF expects to cover its $0.35 quarterly base dividend by mid‑2027, noting Q2 adjusted NII of $0.30 and a Q3 dividend of $0.35 plus a $0.05 special (total $0.40) supported by $0.32 of spillover gains; they plan to grow earnings by moving net leverage up from 0.93x (about +0.4 turns since the June 2025 listing and at the low end of a 0.9–1.25x target) toward the midpoint while rotating ~7% of non‑income equity into income assets. Recent activity to support that path included ~ $850M of new commitments and $550M funded (>$475M net funded), ~$222M of sales/repayments, $55M of share repurchases in the quarter (≈$170M over 3 quarters; ~$195M remaining of a $300M program), issuance of a $500M unsecured bond, $150M of secured financing, an amend/extend of a $2.7B revolver, and >$2B of cash/available capacity; portfolio metrics cited were NAV $16.48, nonaccruals $20M (10 bps), weighted‑avg EBITDA ~ $300M, software ~70% of the book, life sciences ~2%, weighted‑avg LTV ~40%, revolver utilization ~10%, PIK income ~12.5% of investment income (7.5% interest, 5% dividends, ~98% structured at origination), and roughly $4.7B of loans currently below S+500 that could be repriced into higher spreads.Blue Owl Technology Finance Corp. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.07B | 536.94M | 587.43M | 176.15M | 537.05M |
| Gross Profit | 1.07B | 779.34M | 353.46M | 401.24M | 49.98M | 452.55M |
| EBITDA | 675.74M | 728.56M | 514.17M | 564.46M | 153.04M | 514.23M |
| Net Income | 375.08M | 720.37M | 319.23M | 369.14M | 19.00M | 424.81M |
Balance Sheet | ||||||
| Total Assets | 15.05B | 14.72B | 6.72B | 6.65B | 6.66B | 6.29B |
| Cash, Cash Equivalents and Short-Term Investments | 3.23M | 667.00K | 257.00M | 469.02M | 203.29M | 107.03M |
| Total Debt | 7.16B | 6.29B | 2.91B | 2.95B | 3.16B | 2.64B |
| Total Liabilities | 7.52B | 6.67B | 3.10B | 3.12B | 3.28B | 2.76B |
| Stockholders Equity | 7.54B | 8.04B | 3.63B | 3.53B | 3.39B | 3.53B |
Cash Flow | ||||||
| Free Cash Flow | -302.58M | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Operating Cash Flow | -302.58M | 924.03M | 221.80M | 708.36M | -295.28M | -2.62B |
| Investing Cash Flow | -1.94B | -1.84B | -157.65M | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 1.60B | 941.88M | -276.17M | -442.63M | 391.55M | 2.64B |
Blue Owl Technology Finance Corp. Technical Analysis
Negative
11.41
Price Trends
10.15
Negative
10.09
Negative
10.54
Negative
Market Momentum
-0.33
Positive
28.30
Positive
10.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTF, the sentiment is Negative. The current price of 11.41 is above the 20-day moving average (MA) of 9.42, above the 50-day MA of 10.15, and above the 200-day MA of 10.54, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 10.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OTF.
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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $13.29B | 13.63 | 6.78% | 10.43% | 10.38% | -34.10% | |
65 Neutral | $3.05B | 7.78 | 17.21% | 11.99% | 44.00% | 36.72% | |
64 Neutral | $3.11B | 21.78 | 3.82% | 11.52% | -8.83% | -54.08% | |
63 Neutral | $5.44B | 18.39 | 4.78% | 13.18% | -14.94% | -55.20% | |
62 Neutral | $4.08B | 6.81 | 4.80% | 18.08% | 94.72% | -55.36% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | $2.79B | -7.47 | -6.65% | 20.24% | -35.39% | -272.02% |
* General Sector Average
OTF
Blue Owl Technology Finance Corp.
8.85
-3.41
-27.83%
GBDC
Golub Capital Bdc
11.98
-0.65
-5.13%
HTGC
Hercules Capital, Inc.
16.27
0.64
4.11%
ARCC
Ares Capital
18.40
0.34
1.88%
FSK
FS KKR Capital
10.08
-2.64
-20.75%
BXSL
Blackstone Secured Lending Fund
23.37
0.08
0.33%
Blue Owl Technology Finance Corp. Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Technology Finance Expands Loan Financing Facility
Positive
Sep 15, 2026
On September 11, 2026, Athena Funding III LLC, a subsidiary of Blue Owl Technology Finance Corp., executed a First Amendment to its Loan Financing and Servicing Agreement with a syndicate of lenders and institutional agents. The amendment increase...
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Technology Finance Bolsters Liquidity With New Notes
Positive
Sep 4, 2026
On September 3, 2026, Blue Owl Technology Finance Corp. closed a $150 million private placement of 7.60% senior unsecured notes due 2032, guaranteed by certain subsidiaries and ranking pari passu with its other unsecured unsubordinated debt. The n...
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Technology Finance Raises Additional 2029 Notes
Positive
Aug 20, 2026
On August 14, 2026, Blue Owl Technology Finance Corp. subsidiary Athena Funding IV LLC entered into a $250 million revolving credit agreement with Natixis and other lenders, secured by a first-priority interest in Athena’s assets and subject...
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.