Blue Owl Technology Finance Reports Strong Q3, Following NYSE Debut

Blue Owl Technology Finance Corp. (NYSE: OTF) – a business development company focused on investing in U.S. upper middle-market technology companies – announced financial results for its third quarter ended Sept. 30, 2025, marking its first full quarter as a publicly listed company. The firm, which remains the largest publicly traded technology-focused BDC by total assets, reported an increase in net asset value and declared fourth quarter dividends.

OTF’s performance as of Sept. 30 was highlighted by the following:

• NAV Growth: The NAV per share rose to $17.27, up from $17.17 as of June 30, 2025. This increase was primarily driven by gains in certain equity investments within the portfolio.
• Investment income increased to $322.6 million, up from June 30’s $319.5 million, primarily due to an increase in interest income as a result of an increase in average leverage. Other income remained relatively consistent period-over-period, according to OTF.
• Net investment income, or NII: The company reported GAAP NII per share of $0.28 for the quarter, with adjusted NII per share reaching $0.32.
• Leverage: The net debt-to-equity ratio finished the quarter at 0.57x, a slight decrease from 0.58x in the previous quarter.

“OTF delivered solid performance in the third quarter, reflecting the continued strength of our differentiated technology portfolio,” said Craig W. Packer, chief executive officer. “Net asset value increased, continuing last quarter’s trend, and credit quality remains excellent with a non-accrual rate among the lowest in the BDC industry. Looking ahead, OTF is uniquely positioned to expand its earnings power through a variety of market environments, supported by our significant capacity to deploy capital into attractive, risk-adjusted opportunities.”

The BDC remained active in the market, although investment activity saw a slight moderation compared to the previous quarter. New investment commitments for the quarter totaled $1 billion across 12 new portfolio companies and 17 existing portfolio companies, while sales and repayments were $848 million. This compared to $1.5 billion in commitments and $756 million in sales and repayments in Q2 2025.

OTF declared a fourth quarter regular dividend of $0.35 per share. Based on the Sept. 30 NAV, the dividend represents an annualized yield of 9.3%. Also, in connection with its recent NYSE listing, the board declared a series of five special dividends of $0.05 per share, payable quarterly, with the first installment beginning this quarter.

In a move affecting liquidity for pre-listing shareholders, OTF’s board approved an amended lock-up release schedule. Effective Nov. 13, 2025, approximately 11% of the shares currently subject to transfer restrictions will be released each month until June 12, 2026.

As of the end of September, the company had investments in 185 portfolio companies across 38 industries, with an aggregate portfolio size of $12.9 billion at fair value and an average investment size of $69.6 million at fair value.

Total operating expenses increased to $189.6 million for the three months ended Sept. 30, from $159 million for the three months ended June 30. OTF said this was primarily due to an increase in management fees and incentive fees following the company’s public listing.

As of Sept. 30, OTF had $397.1 million in cash and restricted cash, $5 billion in total principal value of debt outstanding, including $2.8 billion of unsecured notes and $3.1 billion of undrawn capacity on its credit facilities. The funding mix was composed of 45% secured and 55% unsecured borrowings as of the end of Q3 2025.

OTF began trading on the New York Stock Exchange on June 12 at a price of $17.15 per share. At that day’s close, shares finished at $16.56, down 3.44%.

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