Oaktree Specialty Lending (NASDAQ: OCSL) trims non-accruals, keeps NAV at $15.70
Rhea-AI Filing Summary
Oaktree Specialty Lending Corporation reported third fiscal quarter 2026 results with GAAP and adjusted net investment income of $32,521 thousand, or $0.37 per share, compared with $34,362 thousand, or $0.39 per share, in the prior quarter. Total investment income was $69,433 thousand. Net realized and unrealized losses, net of taxes, were $1,581 thousand, leading to a net increase in net assets from operations of $30,940 thousand, or $0.35 per share. Net asset value per share was $15.70 as of June 30, 2026, essentially unchanged from $15.69 on March 31, 2026.
The Board declared a regular cash distribution of $0.30 per share and a supplemental cash distribution of $0.03 per share, payable on September 30, 2026 to stockholders of record on September 15, 2026. The investment portfolio totaled $2,741,814 thousand at fair value across 163 companies, with 95.0% in debt investments and a weighted average yield on debt investments of 9.3%; 91.4% of the debt portfolio was floating rate. Non-accrual debt investments represented 1.8% of the debt portfolio at fair value (six positions), improved from 2.6% in the prior quarter. Total debt-to-equity was 1.05x, net debt-to-equity was 1.02x, and liquidity was $699,000 thousand including $39,921 thousand of cash and $659,000 thousand of undrawn credit facility capacity.
Positive
- Credit quality improved: non-accrual debt investments fell to 1.8% of the debt portfolio at fair value (six positions) from 2.6% in the prior quarter, with non-accruals at cost declining from 5.9% to 4.2%.
Negative
- None.
Filing Explained
Part of the declared distribution could be treated as return of capital if full-year taxable earnings are insufficient.
This Form 8-K furnishes the company’s results for the quarter ended
The declared cash distributions may be treated partly as a return of capital if taxable earnings for the fiscal taxable year fall below the total distributions for that year.
During the quarter, the company reported
The filing also reports
8-K Event Classification
Key Figures
Key Terms
non-accrual investments financial
weighted average yield on debt investments financial
business development company regulatory
Part I incentive fee financial
undrawn capacity financial
Earnings Snapshot
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FAQ
What were Oaktree Specialty Lending (OCSL)'s key earnings results for Q3 2026?
What distributions did OCSL declare for the quarter ended June 30, 2026?
How did OCSL’s net asset value and leverage look as of June 30, 2026?
What is the size and composition of OCSL’s investment portfolio?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading |
Name of each exchange | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
On August 5, 2026, Oaktree Specialty Lending Corporation (the “Company”) issued a press release announcing its financial results for the fiscal quarter ended June 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1.
On August 5, 2026, the Company will host a conference call to discuss its financial results for the fiscal quarter ended June 30, 2026. In connection therewith, the Company provided an investor presentation on its website at http://www.oaktreespecialtylending.com. A copy of the investor presentation is attached hereto as Exhibit 99.2.
The information disclosed under this Item 2.02, including Exhibits 99.1 and 99.2 hereto, is being “furnished” and is not deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor is it deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 99.1 | Press release of Oaktree Specialty Lending Corporation dated August 5, 2026 | |
| 99.2 | Oaktree Specialty Lending Corporation Third Quarter 2026 Earnings Presentation | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
SIGNATURE
Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OAKTREE SPECIALTY LENDING CORPORATION | ||||||
| Date: August 5, 2026 | By: | /s/ Christopher McKown | ||||
| Name: | Christopher McKown | |||||
| Title: | Chief Financial Officer and Treasurer | |||||
Exhibit 99.1
Oaktree Specialty Lending Corporation Announces Third Fiscal Quarter 2026 Financial Results
LOS ANGELES, CA, August 5, 2026 - Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the third fiscal quarter ended June 30, 2026.
Financial Highlights for the Quarter Ended June 30, 2026
| • | Total investment income was $69.4 million ($0.79 per share) for the third fiscal quarter of 2026 as compared to $70.4 million ($0.80 per share) for the second fiscal quarter of 2026. Adjusted total investment income was $69.2 million ($0.79 per share) for the third fiscal quarter of 2026 as compared with $69.7 million ($0.79 per share) for the second fiscal quarter of 2026. The decrease was primarily driven by a lower average portfolio balance and a decrease in non-recurring income. This was partially offset by restoring one investment that was previously on non-accrual status to accrual status. |
| • | GAAP net investment income was $32.5 million ($0.37 per share) for the third fiscal quarter of 2026 as compared with $34.4 million ($0.39 per share) for the second fiscal quarter of 2026. The decrease for the quarter was primarily driven by lower total investment income and higher income-based (“Part I”) incentive fees (net of fees waived), partially offset by lower interest expense. |
| • | Adjusted net investment income was $32.2 million ($0.37 per share) for the third fiscal quarter of 2026 as compared with $33.7 million ($0.38 per share) for the second fiscal quarter of 2026. The decrease for the quarter was primarily driven by lower total investment income and higher income-based (“Part I”) incentive fees (net of fees waived), partially offset by lower interest expense. |
| • | Net asset value (“NAV”) per share was $15.70 as of June 30, 2026, compared with $15.69 as of March 31, 2026. |
| • | Originated $206.4 million of new investment commitments and received $262.8 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended June 30, 2026. The weighted average yield on new debt investments was 10.0%. |
| • | Total debt outstanding was $1,451.0 million as of June 30, 2026. The total debt to equity ratio was 1.05x, and the net debt to equity ratio was 1.02x, after adjusting for cash and cash equivalents. |
| • | Liquidity as of June 30, 2026 was composed of $39.9 million of unrestricted cash and cash equivalents and $659.0 million of undrawn capacity under the Company’s credit facility (subject to borrowing base and other limitations). Unfunded investment commitments were $235.4 million, or $208.3 million excluding unfunded commitments to the Company’s joint ventures. |
| • | Quarterly and supplemental cash distributions were declared of $0.30 per share and $0.03 per share, respectively, payable in cash on September 30, 2026 to stockholders of record on September 15, 2026. |
“We are pleased with the progress we made in reducing our non-accrual investments,” said Armen Panossian, Chief Executive Officer and Co-Chief Investment Officer of Oaktree Specialty Lending. “Net asset value per share was stable relative to the prior quarter, and we maintained conservative leverage while continuing to selectively redeploy capital into credits that we believe offer attractive risk-adjusted returns.”
Distribution Declaration
The Board of Directors declared quarterly and supplemental cash distributions of $0.30 per share and $0.03 per share, respectively, payable in cash on September 30, 2026 to stockholders of record on September 15, 2026.
Distributions are paid primarily from distributable (taxable) income. To the extent taxable earnings for a fiscal taxable year fall below the total amount of distributions for that fiscal year, a portion of those distributions may be deemed a return of capital to the Company’s stockholders.
1
Results of Operations
| ($ in thousands, except per share data) | June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
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| GAAP operating results: |
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| Interest income |
$ | 61,636 | $ | 65,253 | $ | 69,390 | ||||||
| PIK interest income |
5,209 | 3,455 | 5,070 | |||||||||
| Fee income |
976 | 1,299 | 286 | |||||||||
| Dividend income |
1,612 | 378 | 525 | |||||||||
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| Total investment income |
69,433 | 70,385 | 75,271 | |||||||||
| Net expenses |
36,609 | 36,019 | 41,734 | |||||||||
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| Net investment income before taxes |
32,824 | 34,366 | 33,537 | |||||||||
| (Provision) benefit for taxes on net investment income |
(303) | (4) | (56) | |||||||||
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| Net investment income |
32,521 | 34,362 | 33,481 | |||||||||
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| Net realized and unrealized gains (losses), net of taxes |
(1,581) | (53,251) | 4,871 | |||||||||
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| Net increase (decrease) in net assets resulting from operations |
$ | 30,940 | $ | (18,889) | $ | 38,352 | ||||||
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| Total investment income per common share |
$ | 0.79 | $ | 0.80 | $ | 0.85 | ||||||
| Net investment income per common share |
$ | 0.37 | $ | 0.39 | $ | 0.38 | ||||||
| Net realized and unrealized gains (losses), net of taxes per common share |
$ | (0.02) | $ | (0.60) | $ | 0.06 | ||||||
| Earnings (loss) per common share — basic and diluted |
$ | 0.35 | $ | (0.21) | $ | 0.44 | ||||||
| Non-GAAP Financial Measures1: |
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| Adjusted total investment income |
$ | 69,152 | $ | 69,744 | $ | 74,297 | ||||||
| Adjusted net investment income |
$ | 32,240 | $ | 33,721 | $ | 32,507 | ||||||
| Adjusted net realized and unrealized gains (losses), net of taxes |
$ | (2,058) | $ | (52,692) | $ | 5,730 | ||||||
| Adjusted earnings (loss) |
$ | 30,182 | $ | (18,971) | $ | 38,237 | ||||||
| Adjusted total investment income per share |
$ | 0.79 | $ | 0.79 | $ | 0.84 | ||||||
| Adjusted net investment income per share |
$ | 0.37 | $ | 0.38 | $ | 0.37 | ||||||
| Adjusted net realized and unrealized gains (losses), net of taxes per share |
$ | (0.02) | $ | (0.60) | $ | 0.07 | ||||||
| Adjusted earnings (loss) per share |
$ | 0.34 | $ | (0.22) | $ | 0.43 | ||||||
1 See Non-GAAP Financial Measures below for a description of the non-GAAP measures and the reconciliations from the most comparable GAAP financial measures to the Company’s non-GAAP measures, including on a per share basis. The Company’s management uses these non-GAAP financial measures internally to analyze and evaluate financial results and performance and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance without giving effect to non-cash income/gain/loss resulting from the merger of Oaktree Strategic Income Corporation (“OCSI”) with and into the Company in March 2021 (the “OCSI Merger”) and the merger of Oaktree Strategic Income II, Inc. (“OSI2”) with and into the Company in January 2023 (the “OSI2 Merger”) and, in the case of adjusted net investment income, without giving effect to capital gains incentive fees. The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
| ($ in thousands, except per share data and ratios) | June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
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| Select balance sheet and other data: |
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| Cash and cash equivalents |
$ | 39,921 | $ | 51,261 | $ | 79,799 | ||||||
| Investment portfolio at fair value |
2,741,814 | 2,766,367 | 2,809,377 | |||||||||
| Total debt outstanding (net of unamortized financing costs) |
1,438,842 | 1,481,650 | 1,447,551 | |||||||||
| Net assets |
1,383,055 | 1,382,064 | 1,476,469 | |||||||||
| Net asset value per share |
15.70 | 15.69 | 16.76 | |||||||||
| Total debt to equity ratio |
1.05x | 1.08x | 0.99x | |||||||||
| Net debt to equity ratio |
1.02x | 1.04x | 0.93x | |||||||||
Adjusted total investment income for the quarter ended June 30, 2026 was $69.2 million and included $61.4 million of interest income from portfolio investments, $5.2 million of PIK interest income, $1.0 million of fee income and $1.6 million of dividend income. The $0.6 million quarterly decrease in adjusted total investment income was primarily driven by a lower average portfolio balance and a decrease in non-recurring income. This was partially offset by restoring one investment that was previously on non-accrual status to accrual status.
Net expenses for the quarter ended June 30, 2026 totaled $36.6 million, increased by $0.6 million from the quarter ended March 31, 2026. The increase for the quarter was primarily driven by higher Part I incentive fees (net of fees waived), partially offset by lower interest expense due to lower average borrowings outstanding during the quarter.
Adjusted net investment income was $32.2 million ($0.37 per share) for the quarter ended June 30, 2026, which was down from $33.7 million ($0.38 per share) for the quarter ended March 31, 2026. The decrease of $1.5 million primarily reflected $0.6 million of lower adjusted total investment income and $0.6 million of higher net expenses.
2
Adjusted net realized and unrealized losses, net of taxes, were $2.1 million for the quarter ended June 30, 2026, primarily reflecting realized and unrealized losses on certain debt and equity investments.
Portfolio and Investment Activity
| ($ in thousands) | June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
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| Investments at fair value |
$ | 2,741,814 | $ | 2,766,367 | $ | 2,809,377 | ||||||
| Number of portfolio companies |
163 | 163 | 149 | |||||||||
| Average portfolio company debt size |
$ | 17,585 | $ | 17,544 | $ | 19,400 | ||||||
| Asset class: |
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| First lien debt |
81.5 % | 83.7 % | 81.1 % | |||||||||
| Second lien debt |
3.0 % | 1.8 % | 2.3 % | |||||||||
| Unsecured debt |
5.9 % | 5.2 % | 4.9 % | |||||||||
| Equity |
3.9 % | 3.7 % | 5.5 % | |||||||||
| JV interests |
5.6 % | 5.6 % | 6.2 % | |||||||||
| Non-accrual debt investments: |
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| Non-accrual investments at fair value |
$ | 47,035 | $ | 69,473 | $ | 83,637 | ||||||
| Non-accrual investments at cost |
113,573 | 167,301 | 181,660 | |||||||||
| Non-accrual investments as a percentage of debt investments at fair value |
1.8 % | 2.6 % | 3.2 % | |||||||||
| Non-accrual investments as a percentage of debt investments at cost |
4.2 % | 5.9 % | 6.6 % | |||||||||
| Number of investments on non-accrual |
6 | 10 | 10 | |||||||||
| Interest rate type: |
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| Percentage floating-rate |
91.4 % | 91.0 % | 90.9 % | |||||||||
| Percentage fixed-rate |
8.6 % | 9.0 % | 9.1 % | |||||||||
| Yields: |
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| Weighted average yield on debt investments1 |
9.3 % | 9.3 % | 10.1 % | |||||||||
| Cash component of weighted average yield on debt investments |
8.2 % | 8.4 % | 9.1 % | |||||||||
| Weighted average yield on total portfolio investments2 |
9.1 % | 9.0 % | 9.6 % | |||||||||
| Investment activity: |
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| New investment commitments |
$ | 206,400 | $ | 204,100 | $ | 147,200 | ||||||
| New funded investment activity3 |
$ | 235,500 | $ | 198,600 | $ | 143,300 | ||||||
| Proceeds from prepayments, exits, other paydowns and sales |
$ | 262,800 | $ | 334,100 | $ | 249,400 | ||||||
| Net new investments4 |
$ | (27,300) | $ | (135,500) | $ | (106,100) | ||||||
| Number of new investment commitments in new portfolio companies |
7 | 10 | 5 | |||||||||
| Number of new investment commitments in existing portfolio companies |
7 | 5 | 6 | |||||||||
| Number of portfolio company exits |
7 | 15 | 8 | |||||||||
| 1 | Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company’s share of the return on debt investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see Non-GAAP Financial Measures below) for the assets acquired in connection with the OCSI Merger and OSI2 Merger. |
| 2 | Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including the Company’s share of the return on investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and OSI2 Merger. |
| 3 | New funded investment activity includes drawdowns on existing revolver and delayed draw term loan commitments. |
| 4 | Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales. |
As of June 30, 2026, the fair value of the investment portfolio was $2.7 billion and was composed of investments in 163 companies. These included debt investments in 141 companies, equity investments in 39 companies, and the Company’s joint venture investments in Senior Loan Fund JV I, LLC (“SLF JV I”) and OCSI Glick JV LLC (“Glick JV”). 20 of the equity investments were in companies in which the Company also had a debt investment.
As of June 30, 2026, 95.0% of the Company’s portfolio at fair value consisted of debt investments, including 81.5% of first lien loans, 3.0% of second lien loans and 10.5% of unsecured debt investments, including the debt investments in SLF JV I and Glick JV. This compared to 83.7% of first lien loans, 1.8% of second lien loans and 10.8% of unsecured debt investments, including the debt investments in SLF JV I and Glick JV, as of March 31, 2026.
3
As of June 30, 2026, there were six investments on non-accrual status, which represented 4.2% and 1.8% of the debt portfolio at cost and fair value, respectively. As of March 31, 2026, there were ten investments on non-accrual status, which represented 5.9% and 2.6% of the debt portfolio at cost and fair value, respectively.
SLF JV I
The Company’s investments in SLF JV I totaled $113.2 million at fair value as of June 30, 2026, increased by 0.4% from $112.8 million as of March 31, 2026. The increase was primarily driven by SLF JV I’s use of leverage and net unrealized appreciation in the underlying investment portfolio.
As of June 30, 2026, SLF JV I had $429.0 million in assets, including senior secured loans to 130 portfolio companies. This compared to $447.5 million in assets, including senior secured loans to 124 portfolio companies, as of March 31, 2026. SLF JV I generated cash interest income of $1.9 million for the Company during the quarter ended June 30, 2026, down from $3.0 million in the prior quarter. SLF JV I generated dividend income of $1.4 million for the Company during the quarter ended June 30, 2026, compared to no dividend income generated during the quarter ended March 31, 2026. As of June 30, 2026, SLF JV I had $17.5 million of undrawn capacity (subject to borrowing base and other limitations) on its $290 million senior revolving credit facility, and its debt to equity ratio was 2.1x.
Glick JV
The Company’s investments in Glick JV totaled $41.3 million at fair value as of June 30, 2026, down 0.5% from $41.5 million as of March 31, 2026. The decrease was primarily driven by Glick JV’s use of leverage and net realized losses in the underlying investment portfolio.
As of June 30, 2026, Glick JV had $142.5 million in assets, including senior secured loans to 131 portfolio companies. This compared to $142.2 million in assets, including senior secured loans to 121 portfolio companies, as of March 31, 2026. Glick JV generated cash interest income of $1.0 million for the Company during the quarter ended June 30, 2026 down slightly from $1.2 million in the prior quarter. As of June 30, 2026, Glick JV had $30.0 million of undrawn capacity (subject to borrowing base and other limitations) on its $120 million senior revolving credit facility, and its debt to equity ratio was 1.9x.
Liquidity and Capital Resources
As of June 30, 2026, the Company had total principal value of debt outstanding of $1,451.0 million, including $501.0 million of outstanding borrowings under its revolving credit facility and $950.0 million of unsecured notes payable. The funding mix was composed of 35% secured and 65% unsecured borrowings as of June 30, 2026. The Company was in compliance with all financial covenants under its syndicated credit facility as of June 30, 2026.
As of June 30, 2026, the Company had $39.9 million of unrestricted cash and cash equivalents and $659.0 million of undrawn capacity on its credit facility (subject to borrowing base and other limitations). As of June 30, 2026, unfunded investment commitments were $235.4 million, or $208.3 million excluding unfunded commitments to the Company’s joint ventures. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to invest in market opportunities as they arise.
As of June 30, 2026, the weighted average interest rate on debt outstanding, including the effect of the interest rate swap agreements was 5.9%, unchanged from the prior quarter.
The Company’s total debt to equity ratio was 1.05x and 1.08x as of June 30, 2026 and March 31, 2026, respectively. The Company’s net debt to equity ratio was 1.02x and 1.04x as of June 30, 2026 and March 31, 2026, respectively.
4
Non-GAAP Financial Measures
On a supplemental basis, the Company is disclosing certain adjusted financial measures, each of which is calculated and presented on a basis of methodology other than in accordance with GAAP (“non-GAAP”). The Company’s management uses these non-GAAP financial measures internally to analyze and evaluate financial results and performance and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance without giving effect to non-cash income/gain/loss resulting from the OCSI Merger and the OSI2 Merger and in the case of adjusted net investment income, without giving effect to capital gains incentive fees. The presentation of the below non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
5
| • | “Adjusted Total Investment Income” and “Adjusted Total Investment Income Per Share” – represents total investment income excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger. |
| • | “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” – represents net investment income, excluding (i) any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger and (ii) capital gains incentive fees (“Part II incentive fees”). |
| • | “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes” and “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share” – represents net realized and unrealized gains (losses) net of taxes excluding any net realized and unrealized gains (losses) resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger. |
| • | “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” – represents the sum of (i) Adjusted Net Investment Income and (ii) Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes and includes the impact of Part II incentive fees1, if any. |
The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues (“ASC 805”). The consideration paid to each of the stockholders of OCSI and OSI2 were allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than “non-qualifying” assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired investments prior to the OCSI Merger or the OSI2 Merger, as applicable. Additionally, immediately following the completion of the Mergers, the acquired investments were marked to their respective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation/depreciation. The new cost basis established by ASC 805 on debt investments acquired will accrete/amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation/depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete/amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain/loss with a corresponding reversal of the unrealized appreciation/depreciation on disposition of such equity investments acquired.
The Company’s management uses the non-GAAP financial measures described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investments pursuant to ASC 805. The Company’s management believes “Adjusted Total Investment Income”, “Adjusted Total Investment Income Per Share”, “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” are useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to the income resulting from the new cost basis of the investments acquired in the Mergers because these amounts do not impact the fees payable to Oaktree Fund Advisors, LLC (the “Adviser”) under its investment advisory agreement (as amended and restated from time to time, the “A&R Advisory Agreement”), and specifically as its relates to “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share”, without giving effect to Part II incentive fees. In addition, the Company’s management believes that “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes”, “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share”, “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” are useful to investors as they exclude the non-cash income and gain/loss resulting from the Mergers and are used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics more closely align the Company’s key financial measures with the calculation of incentive fees payable to the Adviser under the A&R Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the benefit of the Adviser absent such exclusion).
The following table provides a reconciliation of total investment income (the most comparable U.S. GAAP measure) to adjusted total investment income for the periods presented:
1 Adjusted earnings (loss) includes accrued Part II incentive fees. As of and for the three months ended June 30, 2026, there was no accrued Part II incentive fee liability. Part II incentive fees are contractually calculated and paid at the end of the fiscal year in accordance with the A&R Advisory Agreement, which differs from Part II incentive fees accrued under GAAP. For the three months ended June 30, 2026, no Part II incentive fees were payable under the A&R Advisory Agreement.
6
| For the three months ended | ||||||||||||||||||||||||
| June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
||||||||||||||||||||||
| ($ in thousands, except per share data) |
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| GAAP total investment income |
$ | 69,433 | $ | 0.79 | $ | 70,385 | $ | 0.80 | $ | 75,271 | $ | 0.85 | ||||||||||||
| Interest income amortization (accretion) related to merger accounting adjustments |
(281) | — | (641) | (0.01) | (974) | (0.01) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted total investment income |
$ | 69,152 | $ | 0.79 | $ | 69,744 | $ | 0.79 | $ | 74,297 | $ | 0.84 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented:
| For the three months ended | ||||||||||||||||||||||||
| June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
||||||||||||||||||||||
| ($ in thousands, except per share data) |
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| GAAP net investment income |
$ | 32,521 | $ | 0.37 | $ | 34,362 | $ | 0.39 | $ | 33,481 | $ | 0.38 | ||||||||||||
| Interest income amortization (accretion) related to merger accounting adjustments |
(281) | — | (641) | (0.01) | (974) | (0.01) | ||||||||||||||||||
| Part II incentive fee |
— | — | — | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted net investment income |
$ | 32,240 | $ | 0.37 | $ | 33,721 | $ | 0.38 | $ | 32,507 | $ | 0.37 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The following table provides a reconciliation of net realized and unrealized gains (losses), net of taxes (the most comparable U.S. GAAP measure) to adjusted net realized and unrealized gains (losses), net of taxes for the periods presented:
| For the three months ended | ||||||||||||||||||||||||
| June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
||||||||||||||||||||||
| ($ in thousands, except per share data) |
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| GAAP net realized and unrealized gains (losses), net of taxes |
$ | (1,581) | $ | (0.02) | $ | (53,251) | $ | (0.60) | $ | 4,871 | $ | 0.06 | ||||||||||||
| Net realized and unrealized gains (losses) related to merger accounting adjustments |
(477) | (0.01) | 559 | 0.01 | 859 | 0.01 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted net realized and unrealized gains (losses), net of taxes |
$ | (2,058) | $ | (0.02) | $ | (52,692) | $ | (0.60) | $ | 5,730 | $ | 0.07 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
The following table provides a reconciliation of net increase (decrease) in net assets resulting from operations (the most comparable U.S. GAAP measure) to adjusted earnings (loss) for the periods presented:
| For the three months ended | ||||||||||||||||||||||||
| June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
June 30, 2025 (unaudited) |
||||||||||||||||||||||
| ($ in thousands, except per share data) |
Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 30,940 | $ | 0.35 | $ | (18,889) | $ | (0.21) | $ | 38,352 | $ | 0.44 | ||||||||||||
| Interest income amortization (accretion) related to merger accounting adjustments |
(281) | — | (641) | (0.01) | (974) | (0.01) | ||||||||||||||||||
| Net realized and unrealized gains (losses) related to merger accounting adjustments |
(477) | (0.01) | 559 | 0.01 | 859 | 0.01 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Adjusted earnings (loss) |
$ | 30,182 | $ | 0.34 | $ | (18,971) | $ | (0.22) | $ | 38,237 | $ | 0.43 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
7
Conference Call Information
Oaktree Specialty Lending will host a conference call to discuss its third fiscal quarter ended June 30, 2026 results at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on August 5, 2026. The conference call may be accessed by dialing (833) 461-5787 (U.S. callers). All callers will need to provide the meeting ID, 843 537 670, and reference “Oaktree Specialty Lending” once connected with the operator. Alternatively, a live webcast of the conference call can be accessed through the Investors section of Oaktree Specialty Lending’s website, www.oaktreespecialtylending.com. During the conference call, the Company intends to refer to an investor presentation that will be available on the Investors section of its website.
For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, beginning approximately one hour after the broadcast.
About Oaktree Specialty Lending Corporation
Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company’s investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions, including first and second lien loans, unsecured and mezzanine loans, bonds and preferred and common equity, including equity co-investments. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended, and is externally managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending’s website at www.oaktreespecialtylending.com.
Forward-Looking Statements
Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of the Company and distribution projections; business prospects of the Company and the prospects of its portfolio companies; and the impact of the investments that the Company expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) changes or potential disruptions in the Company’s operations, the economy, financial markets or political environment, including those caused by tariffs and trade disputes with other countries, inflation and an elevated interest rate environment; (ii) risks associated with possible disruption in the operations of the Company, the operations of its portfolio companies or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies; and (iv) other considerations that may be disclosed from time to time in the Company’s publicly disseminated documents and filings. The Company has based the forward-looking statements included in this press release on information available to it on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that the Company in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Contacts
Investor Relations:
Oaktree Specialty Lending Corporation
Alison Mermey
(213) 830-6946
ocsl-ir@oaktreecapital.com
Media Relations:
Financial Profiles, Inc.
Moira Conlon
(310) 478-2700
mediainquiries@oaktreecapital.com
8
Oaktree Specialty Lending Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except per share amounts)
| June 30, 2026 (unaudited) |
March 31, 2026 (unaudited) |
September 30, 2025 |
||||||||||
| ASSETS | ||||||||||||
| Investments at fair value: |
||||||||||||
| Control investments (cost June 30, 2026: $343,242; cost March 31, 2026: $378,041; cost September 30, 2025: $377,709) | $ | 199,896 | $ | 210,855 | $ | 227,748 | ||||||
| Affiliate investments (cost June 30, 2026: $43,826; cost March 31, 2026: $78,141; cost September 30, 2025: $58,344) | 39,872 | 73,337 | 54,999 | |||||||||
| Non-control/Non-affiliate investments (cost June 30, 2026: $2,609,629; cost March 31, 2026: $2,611,720; cost September 30, 2025: $2,639,069) | 2,502,046 | 2,482,175 | 2,565,035 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total investments at fair value (cost June 30, 2026: $2,996,697; cost March 31, 2026: $3,067,902; cost September 30, 2025: $3,075,122) | 2,741,814 | 2,766,367 | 2,847,782 | |||||||||
| Cash and cash equivalents |
39,921 | 51,261 | 79,630 | |||||||||
| Interest, dividends and fees receivable |
22,965 | 22,886 | 31,868 | |||||||||
| Due from portfolio companies |
237 | 297 | 3,186 | |||||||||
| Receivables from unsettled transactions |
36,627 | 20,515 | 4,949 | |||||||||
| Due from broker |
1,750 | 15,550 | 15,550 | |||||||||
| Deferred financing costs |
8,023 | 8,558 | 9,675 | |||||||||
| Deferred offering costs |
43 | 43 | 143 | |||||||||
| Derivative assets at fair value |
5,815 | 7,859 | 8,713 | |||||||||
| Other assets |
997 | 1,081 | 1,495 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total assets |
$ | 2,858,192 | $ | 2,894,417 | $ | 3,002,991 | ||||||
|
|
|
|
|
|
|
|||||||
| LIABILITIES AND NET ASSETS | ||||||||||||
| Liabilities: |
||||||||||||
| Accounts payable, accrued expenses and other liabilities |
$ | 2,629 | $ | 1,852 | $ | 1,538 | ||||||
| Base management fee and incentive fee payable |
9,419 | 7,107 | 12,515 | |||||||||
| Due to affiliate |
1,957 | 2,113 | 1,569 | |||||||||
| Interest payable |
10,584 | 10,346 | 12,067 | |||||||||
| Payables from unsettled transactions |
4,943 | 3,260 | 15,011 | |||||||||
| Derivative liabilities at fair value |
6,699 | 5,733 | 7,329 | |||||||||
| Deferred tax liability |
64 | 292 | 269 | |||||||||
| Credit facilities payable |
501,000 | 540,000 | 545,000 | |||||||||
| Unsecured notes payable (net of $4,954, $5,490 and $6,561 of unamortized financing costs as of June 30, 2026, March 31, 2026 and September 30, 2025 respectively) |
937,842 | 941,650 | 941,880 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
1,475,137 | 1,512,353 | 1,537,178 | |||||||||
| Commitments and contingencies |
||||||||||||
| Net assets: |
||||||||||||
| Common stock, $0.01 par value per share, 250,000 shares authorized; 88,086 shares issued and outstanding as of June 30, 2026, March 31, 2026 and September 30, 2025, respectively |
881 | 881 | 881 | |||||||||
| Additional paid-in-capital |
2,350,075 | 2,350,075 | 2,350,075 | |||||||||
| Accumulated overdistributed earnings |
(967,901) | (968,892) | (885,143) | |||||||||
|
|
|
|
|
|
|
|||||||
| Total net assets (equivalent to $15.70, $15.69 and $16.64 per common share as of June 30, 2026, March 31, 2026 and September 30, 2025, respectively) | 1,383,055 | 1,382,064 | 1,465,813 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities and net assets | $ | 2,858,192 | $ | 2,894,417 | $ | 3,002,991 | ||||||
|
|
|
|
|
|
|
|||||||
9
Oaktree Specialty Lending Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
| Three months ended June 30, 2026 (unaudited) |
Three months ended March 31, 2026 (unaudited) |
Three months ended June 30, 2025 (unaudited) |
Nine months ended June 30, 2026 (unaudited) |
Nine months ended June 30, 2025 (unaudited) |
||||||||||||||||
| Interest income: |
||||||||||||||||||||
| Control investments |
$ | 3,271 | $ | 4,794 | $ | 5,165 | $ | 12,963 | $ | 15,275 | ||||||||||
| Affiliate investments |
1,475 | 848 | 277 | 2,863 | 602 | |||||||||||||||
| Non-control/Non-affiliate investments |
56,032 | 58,566 | 62,441 | 175,155 | 198,165 | |||||||||||||||
| Interest on cash and cash equivalents |
858 | 1,045 | 1,507 | 2,831 | 4,293 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total interest income |
61,636 | 65,253 | 69,390 | 193,812 | 218,335 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| PIK interest income: |
||||||||||||||||||||
| Control investments |
— | — | — | — | 830 | |||||||||||||||
| Affiliate investments |
217 | 281 | 28 | 945 | 83 | |||||||||||||||
| Non-control/Non-affiliate investments |
4,992 | 3,174 | 5,042 | 11,567 | 14,416 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total PIK interest income |
5,209 | 3,455 | 5,070 | 12,512 | 15,329 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Fee income: |
||||||||||||||||||||
| Affiliate investments |
— | — | — | 4 | — | |||||||||||||||
| Non-control/Non-affiliate investments |
976 | 1,299 | 286 | 5,243 | 3,707 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total fee income |
976 | 1,299 | 286 | 5,247 | 3,707 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Dividend income: |
||||||||||||||||||||
| Control investments |
1,400 | — | 525 | 1,925 | 1,925 | |||||||||||||||
| Non-control/Non-affiliate investments |
27 | 23 | — | 50 | 190 | |||||||||||||||
|
Non-control/Non-affiliate investments - PIK |
185 | 355 | — | 1,368 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total dividend income |
1,612 | 378 | 525 | 3,343 | 2,115 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total investment income |
69,433 | 70,385 | 75,271 | 214,914 | 239,486 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Expenses: |
||||||||||||||||||||
| Base management fee |
7,046 | 7,107 | 7,195 | 21,697 | 22,854 | |||||||||||||||
| Part I incentive fee |
2,373 | — | 5,767 | 3,561 | 20,413 | |||||||||||||||
| Professional fees |
1,627 | 1,288 | 1,388 | 4,329 | 3,682 | |||||||||||||||
| Directors fees |
160 | 160 | 160 | 480 | 480 | |||||||||||||||
| Interest expense |
24,139 | 25,626 | 31,061 | 76,424 | 89,814 | |||||||||||||||
| Administrator expense |
623 | 663 | 525 | 1,856 | 1,350 | |||||||||||||||
| General and administrative expenses |
641 | 1,175 | 997 | 2,657 | 2,860 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total expenses |
36,609 | 36,019 | 47,093 | 111,004 | 141,453 | |||||||||||||||
| Management fees waived |
— | — | — | — | (933) | |||||||||||||||
| Part I incentive fees waived |
— | — | (5,359) | — | (18,469) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net expenses |
36,609 | 36,019 | 41,734 | 111,004 | 122,051 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net investment income before taxes |
32,824 | 34,366 | 33,537 | 103,910 | 117,435 | |||||||||||||||
| (Provision) benefit for taxes on net investment income |
(303) | (4) | (56) | (324) | (597) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net investment income |
32,521 | 34,362 | 33,481 | 103,586 | 116,838 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Unrealized appreciation (depreciation): |
||||||||||||||||||||
| Control investments |
23,840 | (8,265) | (2,024) | 6,615 | (62,940) | |||||||||||||||
| Affiliate investments |
850 | (663) | (246) | 1,145 | (568) | |||||||||||||||
| Non-control/Non-affiliate investments |
21,987 | (32,736) | 18,905 | (35,283) | (17,268) | |||||||||||||||
| Foreign currency forward contracts |
1,533 | 2,326 | 1,937 | 3,977 | (2,289) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net unrealized appreciation (depreciation) |
48,210 | (39,338) | 18,572 | (23,546) | (83,065) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Realized gains (losses): |
||||||||||||||||||||
| Control investments |
(24,337) | — | — | (24,337) | 13 | |||||||||||||||
| Affiliate investments |
4,849 | 169 | 145 | 5,070 | 190 | |||||||||||||||
| Non-control/Non-affiliate investments |
(30,544) | (17,393) | 1,705 | (47,861) | (16,898) | |||||||||||||||
| Foreign currency forward contracts |
493 | 3,614 | (15,282) | 5,321 | (7,342) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net realized gains (losses) |
(49,539) | (13,610) | (13,432) | (61,807) | (24,037) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (Provision) benefit for taxes on realized and unrealized gains (losses) |
(252) | (303) | (269) | (574) | (394) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net realized and unrealized gains (losses), net of taxes |
(1,581) | (53,251) | 4,871 | (85,927) | (107,496) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Net increase (decrease) in net assets resulting from operations |
$ | 30,940 | $ | (18,889) | $ | 38,352 | $ | 17,659 | $ | 9,342 | ||||||||||
|
|
|
|
|
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| Net investment income per common share — basic and diluted |
$ | 0.37 | $ | 0.39 | $ | 0.38 | $ | 1.18 | $ | 1.37 | ||||||||||
| Earnings (loss) per common share — basic and diluted |
$ | 0.35 | $ | (0.21) | $ | 0.44 | $ | 0.20 | $ | 0.11 | ||||||||||
| Weighted average common shares outstanding — basic and diluted |
88,086 | 88,086 | 88,086 | 88,086 | 85,402 | |||||||||||||||
10
Exhibit 99.2 Earnings Presentation NASDAQ: OCSL Third Quarter 2026
Forward Looking Statements & Legal Disclosures Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, “Oaktree”) to implement Oaktree’s future plans with respect to our business and to achieve our investment objective; the ability of Oaktree and its affiliates to attract and retain highly talented professionals; our business prospects and the prospects of our portfolio companies; the impact of the investments that we expect to make; the ability of our portfolio companies to achieve their objectives; our expected financings and investments and additional leverage we may seek to incur in the future; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our portfolio companies; the cost or potential outcome of any litigation to which we may be a party; and the impact of current global economic conditions, including those caused by inflation, an elevated interest rate environment and geopolitical events or all of the foregoing. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this presentation involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Risk Factors” and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2025 and our quarterly report on Form 10-Q for the quarter ended June 30, 2026. Other factors that could cause actual results to differ materially include: changes or potential disruptions in our operations, the economy, financial markets and political environment, including those caused by tariffs and trade disputes with other countries, inflation and an elevated interest rate environment; risks associated with possible disruption in our operations, the operations of our portfolio companies or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; and other considerations disclosed from time to time in our publicly disseminated documents and filings. We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Calculation of Assets Under Management References to total assets under management or AUM represent assets managed by Oaktree, a proportionate amount of the AUM reported by DoubleLine Capital LP ( DoubleLine Capital ), and other minority corporate investments. Oaktree's methodology for calculating AUM includes (i) the net asset value (NAV) of assets managed directly by Oaktree, (ii) the leverage on which management fees are charged, (iii) undrawn capital that Oaktree is entitled to call from investors in Oaktree funds pursuant to their capital commitments, (iv) for collateralized loan obligation vehicles ( CLOs ), the aggregate par value of collateral assets and principal cash, (v) for publicly-traded business development companies, gross assets (including assets acquired with leverage), net of cash, and (vi) Oaktree's pro rata portion (20%) of the AUM reported by DoubleLine Capital and other minority corporate investments. This calculation of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts managed and is not calculated pursuant to regulatory definitions. Unless otherwise indicated, data provided herein are as of June 30, 2026. Third Quarter 2026 Earnings Presentation NASDAQ: OCSL
Financial Highlights for the Quarter Ended June 30, 2026 • GAAP net investment income of $0.37 per share and adjusted net investment income of $0.37 per share for the quarter ended June 30, 2026, as compared with $0.39 per share and $0.38 per share, respectively, in the prior quarter 1 • Declared cash distributions of $0.33 per share Earnings Summary • Distributions will be payable on September 30, 2026, to stockholders of record as of September 15, 2026 • NAV of $15.70 per share, up slightly compared with $15.69 per share as of March 31, 2026 • Portfolio Update • $2.7 billion at fair value across 163 portfolio companies • 9.3% weighted average yield on debt investments • 85% senior secured, including 82% first lien loans • 91% of debt portfolio was floating rate • Non-Accrual Update Portfolio and Investment Activity Update • Non-accruals as a percentage of debt investments at fair value of 1.8% compared to 2.6% as of March 31, 2026. • Received proceeds of $22 million from non-accrual investments • Investment Activity • $206 million of new investment commitments, with $235 million of new investment fundings • Received $263 million of proceeds from prepayments, exits, other paydowns and sales • 10.0% weighted average yield on new debt investments • 1.02x net debt to equity ratio, down from 1.04x in the prior quarter • Below the midpoint of our leverage range of 0.90x to 1.25x Liquidity and Capital Structure Update • Weighted average interest rate on debt outstanding of 5.9% inclusive of interest rate swaps • Liquidity of $699 million which includes $40 million of cash and $659 million of undrawn capacity on our credit facility 2 1. See appendix for a description of non-GAAP measures.
Portfolio Summary 1 1,2 Senior Secured Emphasis Diverse Portfolio Industry Composition (As % of total portfolio at fair value; $ in millions) 4% 6% 14% 20% 18% 6% 3% 4% Top 25 average 4% position size of 1.5% 5% 16% 18% 5% 64% 7% 10% 7% 82% 8% Software & Services Top 10 Investments First Lien – $2,235 Second Lien – $82 Health Care Equipment & Services Next 15 Investments Capital Goods Unsecured Debt – $163 Joint Ventures – $155 Pharmaceuticals, Biotechnology & Life Sciences Other Media & Entertainment Equity – $108 Commercial & Professional Services Financial Services Consumer Services Food, Beverage & Tobacco Transportation Other $2.7 Billion in Total 9.3% Weighted Average Median Portfolio EBITDA of 163 Portfolio Companies 3 Investments Yield on Debt Investments $189 million As of June 30, 2026 Note: Numbers may not sum due to rounding. 1. Excludes multi-sector holdings, which is primarily composed of investments in Senior Loan Fund JV I LLC (the “Kemper JV”) and OCSI Glick JV LLC (the “Glick JV”), joint ventures that invest primarily in senior secured loans of middle market companies. 2. Based on GICS industry group classification. 3. Excludes investments in negative EBITDA borrowers, life sciences lending, royalty interest financings, structured products, non-accruals, recurring revenue businesses and other non-EBITDA borrowers. 3
Portfolio Highlights As of ($ in thousands, at fair value) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investments at Fair Value $2,741,814 $2,766,367 $2,949,092 $2,847,782 $2,809,377 Number of Portfolio Companies 163 163 167 143 149 Average Portfolio Company Debt Investment Size $17,585 $17,544 $18,068 $20,500 $19,400 Asset Class: First Lien 81.5% 83.7% 84.8% 83.5% 81.1% Second Lien 3.0% 1.8% 1.6% 2.4% 2.3% Unsecured Debt 5.9% 5.2% 3.7% 3.2% 4.9% Equity 3.9% 3.7% 4.4% 5.0% 5.5% Joint Venture Interests 5.6% 5.6% 5.6% 6.0% 6.2% Interest Rate Type for Debt Investments: % Floating-Rate 91.4% 91.0% 91.3% 90.7% 90.9% % Fixed-Rate 8.6% 9.0% 8.7% 9.3% 9.1% Yields: 1 Weighted Average Yield on Debt Investments 9.3% 9.3% 9.3% 9.8% 10.1% Cash Component of Weighted Average Yield on Debt Investments 8.2% 8.4% 8.5% 8.9% 9.1% 2 Weighted Average Yield on Total Portfolio Investments 9.1% 9.0% 9.1% 9.4% 9.6% Note: Numbers may not sum due to rounding. 1. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the mergers of Oaktree Strategic Income Corporation (the “OCSI Merger”) and Oaktree Strategic Income II, Inc. (the “OSI2 Merger”). See appendix for a description of the non-GAAP financial measures. 2. Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including the Company's share of the return on debt investments in the Kemper JV and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and the OSI2 4 Merger. See appendix for a description of the non-GAAP financial measures.
3Q 2026 Investment Activity New Investment Highlights Historical Funded Originations and Exits ($ in millions) ($ in millions) $400 $334 $314 $263 $300 $235 Total Commitments $220 $199 $206 $177 $179 $200 7 new borrowers $100 Existing Borrowers $70 $0 09/30/2025 12/31/2025 03/31/2026 06/30/2026 1 2 New Funded Investments Investment Exits 10.0% Private Investment Paydowns weighted average yield on new debt commitments New Borrowers $136 $115mm $111mm Proceeds Fair Value at Prior Quarter End 100% 100.4 97.0 also held by other Average Exit Price Average Mark at Prior Quarter End Oaktree funds As of June 30, 2026 Note: Numbers rounded to the nearest million or percentage point and may not sum as a result. 1. New funded investments includes drawdowns on existing delayed draw and revolver commitments. 5 2. Investment exits includes proceeds from prepayments, exits, other paydowns and sales.
Recent Investment Activity As of ($ in thousands) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investments in Oaktree Specialty Lending Corporation New Investment Commitments $206,400 $204,100 $316,600 $208,200 $147,200 Funded $180,100 $166,200 $287,200 $176,600 $108,100 Unfunded $26,300 $37,900 $29,400 $31,600 $39,100 Fundings of Previously Unfunded Commitments $55,400 $32,400 $26,600 $43,800 $35,200 Sales and Repayments ($262,800) ($334,100) ($178,500) ($177,000) ($249,400) 1 Net Funded Investment Activity ($27,300) ($135,500) $135,300 $43,400 ($106,100) New Investment Commitments in New Portfolio Companies 7 10 28 9 5 New Investment Commitments in Existing Portfolio Companies 7 5 13 10 6 Portfolio Company Exits 7 15 4 15 8 Weighted Average Yield at Cost on New Debt Investment 10.0% 9.2% 8.7% 9.7% 9.1% Commitments 6 1. Net funded investment activity includes drawdowns on existing revolver commitments. I n v e s t o r P r e s e n ta
Recent Investment Activity New Investment Commitment Detail ($ in millions) Security Type Market Investment Unsecured Private Primary Secondary Avg. Secondary Fiscal Quarter Number of Deals First LienSecond Lien Commitments & Other Placement (Public) (Public) Purchase Price 2Q2022 $228 25 $163 $17 $48 $162 $26 $40 96% 3Q2022 $132 28 $100 $6 $25 $63 $5 $63 91% 4Q2022 $97 11 $65 -- $32 $71 $22 $4 92% 1Q2023 $250 25 $214 $10 $26 $188 $49 $14 82% 2Q2023 $124 9 $124 -- -- $118 $5 $1 81% 3Q2023 $251 10 $227 $24 $0.2 $224 $20 $7 85% 4Q2023 $87 6 $87 -- -- $76 $12 -- N/A 1Q2024 $370 24 $354 -- $16 $302 -- $68 90% 2Q2024 $396 35 $364 -- $32 $205 $99 $92 98% 3Q2024 $339 20 $302 $3 $34 $256 $58 $24 97% 4Q2024 $259 19 $252 $5 $2 $227 $32 -- N/A 1Q2025 $198 13 $198 -- -- $198 -- -- N/A 2Q2025 $407 32 $357 $11 $39 $230 $60 $117 98% 3Q2025 $147 11 $147 -- -- $147 -- -- N/A 4Q2025 $208 19 $182 $22 $4 $136 $9 $63 95% 1Q2026 $317 41 $290 -- $27 $191 $17 $109 93% 2Q2026 $204 15 $116 $35 $53 $149 $39 $17 98% 3Q2026 $206 14 $138 $32 $37 $188 -- $18 100% 7 Note: Numbers may not sum due to rounding. Excludes any positions originated, purchased and sold within the same quarter and the assets acquired in the OSI2 Merger.
Our Approach to Software Investing 1 Software Performance in OCSL AI Risk Scorecard $517mm 26 Business Resilience Framework Fair Value of Software Portfolio Number of Portfolio Companies Market Position Mission Criticality Switching Costs and Scale 96% 0.77% First Lien ARR Loan at Fair Value Management / Network Effect / Sponsor Readiness Ecosystem Size of Market / 1.2% Customer ROI / Pricing 4 Growth Profile Software PIK as a % of Total Portfolio Companies Electing PIK Investment Income Financial and Operational Considerations Financial Capital Structure Operating KPIs 1,2 Performance Software Portfolio Metrics Portfolio Metrics LTM Median EBITDA $180 million Oaktree uses a risk framework to assess portfolio company Approximate Median EBITDA Growth (%) High Teens exposure to AI-related disruption, scoring and categorizing each Since Deal Inception investment into high, medium and low AI risk categories Approximate Median EBITDA Margin ~40% Weighted Average LTV 56% Weighted Average Interest Coverage 1.9x As of June 30, 2026. 1. Based on GICS industry group classification. Excludes equity holdings. 2. Based on most recently available financials. Excludes investments in negative EBITDA borrowers, non-accruals, recurring revenue businesses and restructured positions. 8 I n v e s t o r P r e s e n a t
Financial Highlights Operating Results 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 GAAP Net Investment Income per Share $0.37 $0.39 $0.42 $0.41 $0.38 1 Adjusted Net Investment Income per Share $0.37 $0.38 $0.41 $0.40 $0.37 Net Realized and Unrealized Gains (Losses), Net of Taxes per Share ($0.02) ($0.60) ($0.35) ($0.13) $0.06 1 Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes per Share ($0.02) ($0.60) ($0.34) ($0.12) $0.07 Earnings (Loss) per Share $0.35 ($0.21) $0.06 $0.28 $0.44 1 Adjusted Earnings (Loss) per Share $0.34 ($0.22) $0.06 $0.28 $0.43 Quarterly Distributions per Share $0.30 $0.30 $0.40 $0.40 $0.40 Quarterly Supplemental Distributions per Share $0.03 $0.04 -- -- -- Total Quarterly Distributions per Share $0.33 $0.34 $0.40 $0.40 $0.40 NAV per Share $15.70 $15.69 $16.30 $16.64 $16.76 Weighted Average Shares Outstanding 88,086 88,086 88,086 88,086 88,086 Balance Sheet Investment Portfolio (at Fair Value) $2,741,814 $2,766,367 $2,949,092 $2,847,782 $2,809,377 Cash and Cash Equivalents $39,921 $51,261 $80,813 $79,630 $79,799 Total Assets $2,858,192 $2,894,417 $3,098,251 $3,002,991 $2,964,212 2 Total Debt Outstanding $1,438,842 $1,481,650 $1,610,022 $1,486,880 $1,447,551 Net Assets $1,383,055 $1,382,064 $1,436,187 $1,465,813 $1,476,469 Total Debt to Equity Ratio 1.05x 1.08x 1.12x 1.02x 0.99x Net Debt to Equity Ratio 1.02x 1.04x 1.07x 0.97x 0.93x 3 Weighted Average Interest Rate on Debt Outstanding 5.9% 5.9% 6.1% 6.5% 6.6% 1. See appendix for a description of the non-GAAP measures. 2. Net of unamortized financing costs. 9 I n 3. Includes effect of the interest rate swap agreements the Company entered into in connection with the issuance of our unsecured notes. v e s t o r P r e s e n a t
Net Asset Value Per Share Bridge $18.00 Adjusted Net Realized and Unrealized $17.50 Adjusted NII Gains (Losses), Net of Taxes $0.37 ($0.02) $17.00 $16.50 -$0.01 -$0.01 $0.00 $0.00 $16.00 $0.37 -$0.34 $15.50 $15.00 $15.70 $15.69 $14.50 $14.00 3/31/2026 NAV GAAP Net Interest Income Net Unrealized Net Realized Net Realized & Quarterly 6/30/2026 NAV 1 Investment Accretion Appreciation / Gain / (Loss) Unrealized Loss Distribution 1 Income Related to (Depreciation) Related to Merger Merger Accounting Accounting Adjustments Adjustments Note: Numbers may not sum due to rounding. Net asset value per share amounts are based on the shares outstanding at each respective quarter end. Net investment income per share, net unrealized appreciation / (depreciation), and net realized gain / (loss) are based on the weighted average number of shares outstanding for the period. See appendix for a description of the non-GAAP measures. 10 1. Excludes reclassifications of net unrealized appreciation / (depreciation) to net realized gains / (losses) as a result of investments exited during the quarter. I n v e s t o r P r e s e n a t
Capital Structure Overview Funding Sources Facility 6/30/26 0.90x to 1.25x ($ in millions) Size Outstanding Interest Rate Maturity Target Leverage Ratio Secured Debt Corporate Revolver $1,160 $501 SOFR + 1.875% Apr-30 Secured Debt Subtotal $1,160 $501 Investment Unsecured Debt 1 Grade Rated 2027 Notes $350 $350 Jan-27 2.70% (SOFR + 1.66%) 1 2029 Notes $300 $300 Feb-29 By Moody’s And Fitch 7.10% (SOFR + 3.13%) 1 2030 Notes $300 $300 Feb-30 6.34% (SOFR + 2.19%) Unsecured Debt Subtotal $950 $950 Total Debt $2,110 $1,451 65% Unsecured Borrowings Maturities ($ in millions) $1,500 Unsecured Debt $659 Credit Facility Drawn $699mm $1,000 Credit Facility Undrawn 2 Available Liquidity $501 $500 $350 $300 $300 $0 2026 2027 2028 2029 2030 Diverse and flexible sources of debt capital with ample liquidity As of June 30, 2026 Note: Numbers may not sum due to rounding. 1. The Company entered into an interest rate swap agreement under which the Company receives a fixed interest rate and pays a floating rate based on three-month SOFR plus a spread. 2. Liquidity was composed of $40 million of unrestricted cash and cash equivalents and $659 million of undrawn capacity under the credit facility (subject to borrowing base and other limitations). 11
Funding and Liquidity Metrics Leverage Utilization Liquidity Overview ($ in millions) ($ in millions) 9/30/25 12/31/25 3/31/26 6/30/26 $3,000 Credit Facilities Committed $1,160 $1,160 $1,160 $1,160 Credit Facilities Drawn -$545 -$665 -$540 -$501 $2,500 Cash and Equivalents $80 $81 $51 $40 $2,110 $2,110 $2,110 $2,110 $2,000 Total Liquidity $695 $576 $671 $699 $495 $615 $620 $659 1 -$259 -$247 -$250 -$208 Unfunded Commitments $1,500 Unavailable Unfunded $12 $0 $0 $0 2 Commitments $1,000 Adjusted Liquidity $448 $329 $421 $491 $1,615 $1,495 $1,490 $1,451 $500 $0 9/30/2025 12/31/2025 3/31/2026 6/30/2026 3 Ample liquidity to support funding needs Total Debt Outstanding Undrawn Capacity ($ in millions) 9/30/25 12/31/25 3/31/26 6/30/26 Cash and Equivalents $80 $81 $51 $40 Net Assets $1,466 $1,436 $1,382 $1,383 Total Leverage 1.02x 1.12x 1.08x 1.05x Net Leverage 0.97x 1.07x 1.04x 1.02x Note: Numbers may not sum due to rounding, 1. Excludes unfunded commitments to the Kemper JV and Glick JV. 2. Includes unfunded commitments ineligible to be drawn due to certain limitations in credit agreements. 3. As of June 30, 2026, we have analyzed cash and cash equivalents, availability under our credit facility, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believe 12 our liquidity and capital resources are sufficient to invest in market opportunities as they arise.
Strategic Joint Ventures are Accretive to Earnings OCSL’s JVs are income-enhancing vehicles that primarily invest in senior secured loans of middle market companies and other corporate debt securities Key Attributes: • Equity ownership: 87.5% OCSL and 12.5% joint venture partner • Shared voting control: 50% OCSL and 50% joint venture partner Kemper JV Characteristics Glick JV Characteristics (At fair value) (At fair value) $113mm 4.1% $41mm 1.5% OCSL’s Investments % of OCSL’s OCSL’s Investments % of OCSL’s in the Kemper JV Portfolio in the Glick JV Portfolio $3.3mm 11.7% $1.1mm 10.1% Net Investment Return on OCSL’s Net Investment Return on OCSL’s 1 2 3 2 Income Investment (Annualized) Income Investment (Annualized) Combined Portfolio Summary Portfolio Company Wtd. Avg. Debt Portfolio Investment Portfolio First Lien Leverage Ratio Count Yield $524mm 98% 135 7.3% 2.1x As of June 30, 2026 1. Represents OCSL’s 87.5% share of the Kemper JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2026. 2. Calculated as OCSL’s share of each respective joint venture’s net investment income annualized, divided by the fair value of OCSL’s investments in each joint venture as of March 31, 2026. 13 3. Represents OCSL’s 87.5% share of the Glick JV’s net investment income (excluding subordinated note interest expense) earned during the quarter ended June 30, 2026.
Appendix
Quarterly Statement of Operations For the three months ended ($ in thousands) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Investment income Interest income $61,636 $65,253 $66,923 $69,716 $69,390 PIK interest income $5,209 $3,455 $3,848 $4,094 $5,070 Fee income $976 $1,299 $2,972 $2,122 $286 Dividend income $1,612 $378 $1,353 $1,383 $525 GAAP total investment income $69,433 $70,385 $75,096 $77,315 $75,271 Interest income amortization related to merger accounting ($281) ($641) ($615) ($449) ($974) adjustments Adjusted total investment income $69,152 $69,744 $74,481 $76,866 $74,297 Expenses Base management fee $7,046 $7,107 $7,544 $7,309 $7,195 Part I incentive fee $2,373 -- $1,188 $7,103 $5,767 Part II incentive fee -- -- -- -- -- Interest expense $24,139 $25,626 $26,659 $26,031 $31,061 1 Other operating expenses $3,051 $3,286 $2,985 $2,703 $3,070 Total expenses $36,609 $36,019 $38,376 $43,146 $47,093 Management fees waived -- -- -- -- -- Part I incentive fees waived -- -- -- ($1,897) ($5,359) Net expenses $36,609 $36,019 $38,376 $41,249 $41,734 (Provision) benefit for taxes on net investment income ($303) ($4) ($17) ($264) ($56) GAAP net investment income $32,521 $34,362 $36,703 $35,802 $33,481 Less: Interest income accretion related to merger accounting ($281) ($641) ($615) ($449) ($974) adjustments Add: Part II incentive fee -- -- -- -- -- Adjusted net investment income $32,240 $33,721 $36,088 $35,353 $32,507 Note: See appendix for a description of the non-GAAP measures. 15 1. Includes professional fees, directors fees, administrator expense and general and administrative expenses. I n v e s t o r P r e s e n a t
Quarterly Statement of Operations (continued) For the three months ended (in thousands, except per share amounts) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025 Net realized and unrealized gains (losses) Net unrealized appreciation (depreciation) $48,210 ($39,339) ($32,418) ($18,164) $18,572 Net realized gains (losses) ($49,539) ($13,610) $1,342 $6,940 ($13,432) (Provision) benefit for taxes on realized and unrealized gains (losses) ($252) ($303) ($19) - ($269) GAAP net realized and unrealized gains (losses), net of taxes ($1,581) ($53,251) ($31,095) ($11,224) $4,871 Net realized and unrealized losses (gains) related to merger accounting ($477) $559 $710 $375 $859 adjustments Adjusted net realized and unrealized gains (losses), net of taxes ($2,058) ($52,692) ($30,385) ($10,849) $5,730 GAAP net increase (decrease) in net assets resulting from operations $30,940 ($18,889) $5,608 $24,578 $38,352 Interest income amortization (accretion) related to merger accounting adjustments ($281) ($641) ($615) ($449) ($974) Net realized and unrealized losses (gains) related to merger accounting ($477) $559 $710 $375 $859 adjustments Adjusted earnings (loss) $30,182 ($18,971) $5,703 $24,504 $38,237 Per share data: GAAP total investment income $0.79 $0.80 $0.85 $0.88 $0.85 Adjusted total investment income $0.79 $0.79 $0.85 $0.87 $0.84 GAAP net investment income $0.37 $0.39 $0.42 $0.41 $0.38 Adjusted net investment income $0.37 $0.38 $0.41 $0.40 $0.37 GAAP net realized and unrealized gains (losses), net of taxes ($0.02) ($0.60) ($0.35) ($0.13) $0.06 Adjusted net realized and unrealized gains (losses), net of taxes ($0.02) ($0.60) ($0.34) ($0.12) $0.07 GAAP net increase/decrease in net assets resulting from operations $0.35 ($0.21) $0.06 $0.28 $0.44 Adjusted earnings (loss) $0.34 ($0.22) $0.06 $0.28 $0.43 Weighted average common shares outstanding 88,086 88,086 88,086 88,086 88,086 Shares outstanding, end of period 88,086 88,086 88,086 88,086 88,086 16 I n v e s t o r P r e s e n a t
Strategic Actions In Support of OCSL • On February 3, 2025, Oaktree purchased $100 million of newly issued shares of OCSL common stock at a price of $17.63/share equal to net asset value per share on January 31, 2025 • This transaction represented a 10% premium to the closing stock price on January 31, 2025, and resulted in a nearly Equity Raise 7% increase in net assets at the time of share issuance • The equity raise (coupled with additional leverage) increased dry powder for deployment, enabling growth and further diversification of the portfolio • In the first fiscal quarter of 2025, Oaktree implemented an incentive fee cap (i.e., a total return hurdle). Since the implementation of the incentive fee cap, OCSL has retained $34.3 million in Part I incentive fees that would have otherwise been paid to Oaktree. Incentive Fee • This arrangement includes a lookback provision that commences October 1, 2024, building to a rolling 12 quarter Cap lookback by the Company's 2027 fiscal year-end • The incentive fee cap formalized our process and provided clarity Oaktree remains committed to the long-term growth and success of OCSL 17
Non-GAAP Disclosures The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues ( ASC 805 ). The consideration paid to each of the stockholders of OCSI and OSI2 were allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than non-qualifying assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired investments prior to the OCSI Merger or OSI2 Merger, as applicable. Additionally, immediately following the completion of the Mergers, the acquired investments were marked to their respective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation / depreciation. The new cost basis established by ASC 805 on debt investments acquired will accrete / amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation / depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete / amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain / loss with a corresponding reversal of the unrealized appreciation / depreciation on disposition of such equity investments acquired. The Company’s management uses the non-GAAP financial measures described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investments pursuant to ASC 805. The Company’s management believes Adjusted Total Investment Income , Adjusted Total Investment Income Per Share , Adjusted Net Investment Income and Adjusted Net Investment Income Per Share are useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to the accretion income resulting from the new cost basis of the investments acquired in the Mergers because these amounts do not impact the fees payable to Oaktree under its fourth amended and restated investment advisory agreement (the “A&R Advisory Agreement”), and specifically as its relates to Adjusted Net Investment Income and Adjusted Net Investment Income Per Share , without giving effect to Part II incentive fees. In addition, the Company’s management believes that “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes”, “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share”, “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” are useful to investors as they exclude the non-cash income/gain resulting from the Mergers and used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics align the Company's key financial measures with the calculation of incentive fees payable to Oaktree under with the A&R Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the benefit of Oaktree absent such exclusion). 18 I n v e s t o r P r e s e n a t
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