NASDAQ$OCSL
Oaktree Specialty Lending Corporation · Q1 2025 earnings
Q1 2025 earnings · · Before market open · Investor relations
Briefing
Financial results announced for the fiscal quarter ended December 31, 2024.
Oaktree Specialty Lending Corporation reported a GAAP net investment income of $44.3 million ($0.54 per share) for the first fiscal quarter of 2025, compared to $44.9 million ($0.55 per share) for the fourth fiscal quarter of 2024. Total investment income was $86.6 million ($1.05 per share) for the first fiscal quarter of 2025, as compared with $94.7 million ($1.15 per share) for the fourth fiscal quarter of 2024.
- Oaktree Capital I, L.P. purchased $100.0 million of shares of OCSL common stock at the Company’s net asset value as of January 31, 2025.
- A total return hurdle was implemented, resulting in waived Part I incentive fees of $6.4 million for the quarter ended December 31, 2024.
- Originated $198.1 million of new investment commitments and received $352.4 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended December 31, 2024.
- A quarterly and supplemental cash distribution was declared of $0.40 per share and $0.07 per share, respectively, payable in cash on March 31, 2025.
Headline financials
Revenue & EPS history
Oaktree · Revenue · Quarterly
$69.3M
Revenue by segment
Oaktree · $60.3M total across 3 segments · Q1 2022
- Interest income$55.5M—92.0%
- Dividend income$3.92M—6.5%
- Fee income$912K—1.5%
Forward guidance
Oaktree is focused on underperforming borrowers and identifying appropriate courses of action. They remain committed to shareholders and growing the business, as demonstrated by Oaktree's $100 million share purchase at NAV and the institution of a cap in the calculation of the Part I Incentive Fee.
Tailwinds
- Continued focus on working through underperforming borrowers to identify appropriate actions.
- Demonstrated commitment to shareholders through Oaktree's $100 million share purchase at NAV.
- Incentive fee cap instituted to consider capital gains and losses, building to a 12-quarter lookback by fiscal year-end 2027.
- Actions taken to provide capital for executing long-term initiatives.
- Modification to the dividend policy introduces a stable base dividend, which is anticipated to be sustainable across market cycles, amid fluctuations in rates and spreads.
Headwinds
- Continued challenges with several portfolio companies.
- Decline in adjusted total investment income primarily due to decreases in reference rates, the impact of certain investments that were placed on non-accrual status, a smaller investment portfolio, and lower OID acceleration from investment repayments.
- Decrease in fee income driven by lower prepayment fees.
- Reduction in dividend income from the Company’s investment in Senior Loan Fund JV I, LLC (“SLF JV I”).
- Adjusted net realized and unrealized losses, net of taxes, were $37.1 million, primarily reflecting realized and unrealized losses on certain debt and equity investments.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 18 quarterly earnings reports · overlaid with Q1 2025
-1.4%
Avg return
Earnings day
-2.0%
Avg return
5 days after
-2.6%
Avg return
30 days after
33%
6 / 18 earnings
Positive
+7.3%
Q4 2022
Best reaction
-8.4%
Q3 2024
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | +0.4% | -5.8% | -5.3% | |
| Q1 2026 | +3.0% | +2.0% | -5.6% | |
| Q4 2025 | +0.0% | +1.1% | -3.8% | |
| Q2 2025 | -7.8% | -6.7% | +1.6% | |
| Q1 2025 | -2.8% | -2.9% | +0.2% | |
| Q4 2024 | -2.9% | -1.9% | -6.0% | |
| Q3 2024 | -8.4% | -10.6% | -5.0% | |
| Q2 2024 | -1.9% | -2.9% | -1.9% | |
| Q1 2024 | -6.9% | -7.2% | -7.1% | |
| Q4 2023 | +0.5% | +0.4% | +1.4% | |
| Q3 2023 | -1.7% | -0.8% | -1.4% | |
| Q2 2023 | -2.4% | -0.7% | +1.3% | |
| Q1 2023 | -1.6% | -1.7% | -4.4% | |
| Q4 2022 | +7.3% | +7.9% | +2.4% | |
| Q3 2022 | -0.8% | -1.1% | -4.3% | |
| Q2 2022 | -1.5% | -4.5% | -5.4% | |
| Q1 2022 | +1.1% | +0.0% | -2.4% | |
| Q4 2021 | +1.3% | -0.8% | -1.3% |
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