Blue Owl Technology Finance Corp. surpasses expectations with a non-GAAP EPS of $0.36, rising above the estimated $0.33 by $0.03.
Blue Owl Technology Finance Corp. Reports Strong Q2 Performance
Blue Owl Technology Finance Corp. (NYSE: OTF) has announced impressive financial results for the second quarter ended June 30, 2025. The company's adjusted net investment income per share stood at $0.36, surpassing analyst expectations by 8.05%. The total GAAP revenue for the quarter was approximately $319.5 million, slightly below the forecast of $319.6 million.
The investment portfolio of Blue Owl Technology Finance saw significant growth, reaching $12.7 billion as of June 30, 2025. This growth can be attributed to the impact of the OTF II merger and higher investment activity.
Key financial highlights for the quarter include: - GAAP net investment income per share: $0.34 - Adjusted net investment income per share: $0.36 - New investment commitments during Q2: $1.5 billion - Sales and repayments during Q2: $756 million - Net asset value (NAV) per share rose to $17.17, up from $17.09 at the end of the prior quarter, primarily driven by unrealized gains in certain equity investments.
Regarding dividends, the Board declared a third quarter regular dividend of $0.35 per share, payable on or before October 15, 2025. In addition, five special dividends of $0.05 per share are to be paid quarterly starting in the third quarter of 2025. This brings the total declared dividends for Q3 2025 to $0.40 per share, representing an annualized dividend yield of 9.3% based on NAV as of June 30, 2025.
Looking ahead, the company is expected to report earnings per share (EPS) of $0.23 on $692.7 million in revenues for the upcoming quarter, reflecting continued revenue growth. Blue Owl Technology's recent listing on the New York Stock Exchange as the largest publicly traded technology-focused Business Development Company (BDC) by total assets underscores its market position and growth potential.
The company's strategic capital raises, ongoing expansion, and strong demand for its alternative credit strategies, as demonstrated by the recently closed $850 million private alternative credit fund offering, indicate a promising outlook.
In summary, Blue Owl Technology Finance exhibits solid financials with growing investment assets, improving NAV per share, and a healthy dividend yield enhanced by special dividends. The outlook is cautiously positive, with steady earnings and revenue growth expected alongside continued investment activity and strategic capital raises.
[1] Blue Owl Technology Finance Corp. Q2 2025 Earnings Release [2] Blue Owl Capital Inc. Q2 2025 Earnings Estimates [3] Truist Securities Initiates Blue Owl Technology Finance with a Buy rating [4] Blue Owl Technology Closes $850 Million Private Alternative Credit Fund Offering [5] Blue Owl Technology Finance Corp. Investor Presentation, June 2025
- Blue Owl Technology Finance's Q2 performance reflects strong growth in their investment portfolio, particularly due to the OTF II merger and higher investment activity, positioning them for continued success in personal-finance and business.
- The company's strategic capital raises, such as the recently closed $850 million private alternative credit fund offering, demonstrate investing in technology and display a promising outlook for the future of business and finance.
- With growing investment assets, an improving NAV per share, and a healthy dividend yield, investors might consider Blue Owl Technology Finance Corp. as an attractive option for technology-focused Business Development Company (BDC) investments.
