| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 72 | 25.9x | 17.6x | Top tier | |
Growth | 61 | 157.2% | 7.1% | Around median | |
Quality | 32 | — | — | Bottom tier | |
Safety | 62 | — | — | Around median | |
Capital Return | 82 | 3.22% | 2.15% | Top tier | |
Momentum | 57 | -6.6% | 2.3% | Around median | |
Sentiment | 90 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Oaktree Specialty Lending Corporation is a publicly traded business development company that invests in private credit and generates its income primarily from interest on loans and returns on investments provided to portfolio companies. As of June 30, 2026, first-lien senior secured debt represented 82% of the portfolio at fair value, and the weighted average yield on debt investments was 9.3%, while the joint ventures held investments worth $524 million across 135 companies and generated a return on equity of approximately 11.3% during fiscal Q3 2026.
In fiscal Q3 2026, the financial statements showed revenue of $61.6 million, gross profit of $37.5 million, and net income of $30.9 million, equivalent to earnings per share of $0.35; this equates to a gross profit margin of approximately 60.9% and a net income margin of approximately 50.2%. On an adjusted operating basis, total investment income was $69.2 million, and adjusted net investment income was $32.2 million, or $0.37 per share, compared with $33.7 million, or $0.38 per share, in fiscal Q2 2026.
Net leverage was 1.02x as of June 30, 2026, within the target range of 0.9x to 1.25x, with liquidity of $699 million, including $40 million in cash and $659 million of undrawn facilities. Net asset value remained stable at $15.70 per share, compared with $15.69 as of March 31, 2026, while the board of directors declared total cash distributions of $0.33 per share, consisting of a $0.30 base distribution and a $0.03 supplemental distribution, payable on September 30, 2026, to shareholders of record on September 15, 2026.
Automated analysis for informational purposes only — not investment advice.
The average analyst target is $13, with both the highest and lowest targets matching at $13 and a consensus rating of neutral, reflecting the absence of visible dispersion in the available estimates more than broad bullish conviction. The target is approximately 9.2% below the 52-week range high of $14.31 and approximately 22.3% above its low of $10.63; this range balances improving non-accruals and stable net asset value on one hand against declining adjusted net investment income, realized losses, and refinancing risks on the other.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
The financial statements reported revenue of $61.6 million and net income of $30.9 million, equivalent to earnings per share of $0.35. On an adjusted operating basis, total investment income was $69.2 million and net investment income was $32.2 million, or $0.37 per share. Adjusted net investment income declined from $33.7 million, or $0.38 per share, in fiscal Q2 2026 due to lower leverage, lower non-recurring income, and the return of a portion of incentive fees.
Thrasio had been on non-accrual status since December 2023 following an excessive growth strategy after the COVID pandemic. During the June 2026 quarter, asset sales enabled the repayment of approximately $25 million, or slightly more than 80% of OCSL's loans, including the sale of the Hate Stains brand to Church & Dwight as part of a transaction with an aggregate price of $325 million. OCSL raised the valuation of the remaining second-lien loan from 80% to 99% and restored it to accrual status, converting part of the distressed position into cash and returning the remainder to income generation.
The board of directors declared total cash distributions of $0.33 per share for fiscal Q3 2026, divided between a $0.30 base distribution and a $0.03 supplemental distribution. Adjusted net investment income was $0.37 per share, which was $0.04 per share above the declared distribution. The distributions are payable on September 30, 2026, to shareholders of record on September 15, 2026, and the supplemental portion equals 50% of adjusted net investment income in excess of the base distribution under the company's policy.
Software represented 20% of the portfolio at fair value as of June 30, 2026, slightly lower than in the previous quarter. Management estimated high-risk software exposure to artificial intelligence at approximately 3% of the performing debt portfolio at fair value. Concerns are concentrated in companies combining susceptibility to business model disruption with high leverage, weak cash flow, and refinancing maturities in 2027 and 2028.
Net leverage was 1.02x as of June 30, 2026, compared with 1.04x as of March 31, 2026, and within the target range of 0.9x to 1.25x. Liquidity reached $699 million, consisting of $40 million in cash and $659 million of undrawn facilities, compared with unfunded commitments of $208 million excluding the joint ventures. Conversely, the company must address $350 million of unsecured notes maturing in January 2027, while total outstanding debt was $1.45 billion with a weighted average interest rate of 5.9%.
OCSL, together with other Oaktree funds, financed approximately 60% of a private secondary securitization facility to support Zayo Group's acquisition of Crown Castle's fiber network in May 2026. The facility carries a rate equal to SOFR plus 675 basis points and is supported by fiber network assets and a corporate guarantee from a parent entity that ranks ahead of the sponsor's equity in the support structure. OCSL had previously purchased Zayo's first-lien senior loan below par, after which a portion was repaid and the value of the remaining position increased to approximately par.
