$OTF earnings report

OTF reported steady core earnings but a lower sequential NII result. Total investment income was $ 341,285, compared with $ 338,032 in the prior quarter, which the Company attributed primarily to modestly higher average leverage. Total operating expenses were $ 208,544 versus $ 198,966, primarily due to increased average daily borrowings. This left GAAP net investment income after taxes at $ 130,609 and GAAP NII per share at $ 0.29, compared with $ 138,644 and $ 0.30 per share in the prior quarter. Adjusted NII per share was also $ 0.29, compared with $ 0.30 in the prior quarter and $ 0.32 in the prior-year quarter.

Total returns improved materially from the prior quarter. Net realized and unrealized gains were $ 88,648, versus $ 15,578 in the prior quarter, and net increase in net assets resulting from operations was $ 219,257, or $ 0.48 per share, compared with $ 154,222, or $ 0.33 per share. NAV per share increased to $ 16.62 from $ 16.48 as of June 30, 2026, although it remained below $ 17.27 as of September 30, 2025. The Company attributed the NAV improvement to market recovery, borrower health, and accretive share repurchases.

Portfolio activity slowed sequentially. Total new investment commitments were $ 441,246, compared with $ 851,556 in the prior quarter and $ 1,007,828 in the prior-year quarter. New investments funded totaled $ 316,559, while investments sold or repaid totaled $ (334,259). The portfolio remained predominantly senior secured, with first-lien senior secured investments of $ 11,555,643, representing 78.0 % of total investments. Floating-rate debt represented 96.1 % of debt investments, and the weighted average yield of accruing debt and income producing securities at fair value was 9.8 %.

Credit performance requires attention. Investments on non-accrual represented 1.8% and 1.1% of the portfolio at cost and fair value, respectively, compared with 0.6% and 0.1% as of June 30, 2026. The filing reports 207 portfolio companies, compared with 205 in the prior quarter. New debt commitments shifted toward fixed-rate investments, which represented 45.3 % of new debt investment commitments, while floating-rate commitments represented 54.7 %.

Capital allocation and funding activity were active. OTF repurchased $55 million of common stock during the quarter, which the Company stated was accretive to NAV per share, and dividends totaled $0.40 per share. The Board subsequently declared a fourth quarter 2026 base dividend of $0.35 per share. The Company raised $900 million of new debt capital and ended the period with $221 million in cash, $2.6 billion of undrawn capacity, and net debt-to-equity of 0.94x. Management highlighted approximately $2.9 billion of liquidity and expects higher base rates to support earnings as floating-rate loans reset.

This filing does not report third-quarter 2026 earnings. It announces that OTF will release results for the third quarter ended September 30, 2026 on Wednesday, November 4, 2026 after market close, followed by a webcast and conference call on Thursday, November 5, 2026 at 11:30 a.m. Eastern Time.

Accordingly, the filing provides no reported total investment income, expenses, net investment income, net increase or decrease in net assets from operations, net asset value, earnings per share, or comparison with a prior period. It also provides no information on third-quarter portfolio originations, repayments, sales, realized gains or losses, or unrealized valuation changes.

The sole portfolio disclosure is historical background information: as of June 30, 2026, OTF had investments in 205 portfolio companies with an aggregate fair value of $14.7 billion. The filing describes the investment focus as U.S. technology-related companies, with a strategic focus on software, but provides no period-specific demand, mix or credit-performance commentary.

No dividend, repurchase, cash, debt, leverage, operating cash flow, free cash flow or forward financial guidance is reported. The November 4 results release is therefore the relevant event for assessing OTF's September-quarter operating performance, portfolio valuations and capital allocation.

OTF reported stable second-quarter operating results alongside expanding portfolio assets. GAAP net investment income per share was $0.30, below $0.37 in the prior quarter and $0.34 in the prior-year quarter. Adjusted net investment income per share was $0.30, compared with $0.29 in the prior quarter and $0.36 in the prior-year quarter. Investment income increased to $338 million from $326 million in the first quarter, driven primarily by net portfolio growth and higher dividend income related to a repayment.

Expenses were the principal quarter-over-quarter pressure point. Total operating expenses increased to $199 million from $153 million, principally because the prior quarter included a capital gains incentive fee reversal and because average daily borrowings increased interest expense. The absence of the capital gains incentive fee benefit also explains the difference between GAAP and adjusted comparisons. GAAP net realized and unrealized gains were $0.03 per share, following a $(0.84) loss per share in the prior quarter, while net asset value per share was essentially stable sequentially at $16.48 compared with $16.49.

Portfolio assets grew to $14,680,538 at fair value from $14,068,239 at March 31, 2026. The portfolio remained concentrated in first-lien senior secured investments, which were $11,444,661 and represented 77.8 % of total investments. Credit indicators remained low at fair value, with non-accrual investments at 0.1 % of the portfolio, unchanged from the prior quarter. However, non-accruals at cost were 0.6%, compared with 0.3% as of March 31, 2026. The weighted average total yield of accruing debt and income-producing securities at fair value increased to 9.6 % from 9.5 %.

Investment activity moderated sequentially. New investment commitments were $0.9 billion across 6 new and 7 existing portfolio companies, compared with $1.7 billion across 14 new and 12 existing companies in the first quarter. The principal amount of new investments funded was $0.6 billion, while sales and repayments were $0.2 billion. New debt investment commitments were entirely floating rate, and their weighted average spread over the applicable base rate was 5.3 %, although their weighted average interest rate was 9.0 %, compared with 9.8 % in the prior-year period.

Capital allocation included $55 million of common-stock repurchases and $0.40 per share of dividends, including a $0.35 base dividend and a $0.05 special dividend. Funding capacity expanded through an amended and extended revolving credit facility, $500 million of unsecured debt issuance, and $150 million of secured financing. At quarter-end, OTF had $214 million in cash, $1.8 billion of undrawn credit capacity, and $7.3 billion in total principal debt outstanding. Net debt-to-equity increased to 0.93x from 0.85x in the prior quarter, while the Company said it had more than $2 billion of available liquidity and that leverage was at the low end of its target range. The release provided no operating financial guidance.