Oaktree Specialty Lending Corp JPM F3Q26 Earnings Scorecard – Review

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Oaktree Specialty Lending Corp

JPM F3Q26 Earnings Scorecard – Review

Neutral

OCSL, OCSL US

Price (04 Aug 26):$12.13

Consumer Finance

OCSL reported F3Q26 results today (8/05) with adjusted NII/sh of $0.37, modestly

above JPMe of ~$0.36 and ahead of consensus of $0.36. OCSL declared quarterly

and supplemental cash distributions of $0.30/sh and $0.03/sh (total $0.33/sh), with

the base dividend flat Q/Q and the supplemental stepping down. We would expect

shares to be modestly higher on the slight NII beat and stable NAV, supported by

continued improvement in non-accruals, partially offset by the step-down in total

distributions. The company will host an earnings call today at 11:00 a.m. ET.

Adjusted NII/sh of $0.37 was above JPMe (~$0.36) and consensus ($0.36).

Total investment income was $69.4M, below JPMe’s ~$70.9M estimate and

slightly below consensus of ~$69.7M, with the Q/Q decline driven by a lower

average portfolio balance and less non-recurring income (partly offset by one

investment returning to accrual). Adjusted NII of $32.2M was above JPMe’s

$31.8M and consensus of $31.4M. Adjusted NII/share of $0.37 was slightly

lower Q/Q from $0.38. The wtd avg. yield on debt investments was flat

sequentially at 9.3% in F3Q26, but down from 10.1% Y/Y.

OCSL had $27.3M of net repayments in the June quarter. New funded

investments totalled $235.5M (below JPMe of $275.0M) and exits/repayments

were $262.8M (above JPMe of $250.0M), resulting in net repayments of

$27.3M (vs. JPMe’s forecast of $25.0M net originations). New investments

were made in seven new portfolio companies and seven existing ones with a

wtd. avg. yield on new investments of 10.0%; OCSL exited seven portfolio

companies during the quarter. We calculate EOP net debt to equity of 1.02x

(slightly below JPMe’s forecast of 1.04x), which was slightly lower

sequentially and around the midpoint of mgmt’s target range of 0.90x–1.25x.

NAV was essentially flat sequentially at $15.70 (vs. $15.69 prior Q). NAV

was modestly below JPMe $15.82. OCSL had net realized and unrealized

losses (net of taxes) of $1.6M ($49.5M net realized losses, $48.2M net

…