Earnings release
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OAKTREE OCSL | Specialty Lending Corporation NEWS RELEASE Oaktree Specialty Lending Corporation Announces Third Fiscal Quarter 2026 Financial Results 2026-08-05 LOS ANGELES -- ( BUSINESS WIRE ) -- 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 1
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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 O cer and Co-Chief Investment O cer 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 o er attractive risk-adjusted returns.” Distribution Declaration The Board of Directors declared quarterly and supplemental cash distributions of $0.30 per share and $0.03 per share, respectively, payable in cash on September 30, 2026 to stockholders of record on September 15, 2026. Distributions are paid primarily from distributable (taxable) income. To the extent taxable earnings for a scal taxable year fall below the total amount of distributions for that scal year, a portion of those distributions may be deemed a return of capital to the Company’s stockholders. Results of Operations For the three months ended ($ in thousands, except per share data) June 30, 2026(unaudited) March 31,2026(unaudited)June 30, 2025(unaudited)GAAP operating results: Interest income $ 61,636$ 65,253$ 69,390PIK interest income 5,209 3,455 5,070Fee income 976 1,299 286Dividend income 1,612 378 525 Total investment income 69,43370,38575,271 Net expenses 36,609 36,019 41,734 Net investment income before taxes32,82434,36633,537 (Provision) bene t for taxes on net investment income(303) (4) (56) Net investment income 32,52134,36233,481 2
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Net realized and unrealized gains (losses), net of taxes(1,581) (53,251) 4,871 Net increase (decrease) in net assets resulting from operations$ 30,940$ (18,889)$ 38,352 Total investment income per common share$ 0.79$ 0.80$ 0.85Net investment income per common share$ 0.37$ 0.39$ 0.38Net realized and unrealized gains (losses), net of taxes percommon share $ (0.02)$ (0.60)$ 0.06Earnings (loss) per common share — basic and diluted$ 0.35$ (0.21)$ 0.44Non-GAAP Financial Measures:Adjusted total investment income$ 69,152$ 69,744$ 74,297Adjusted net investment income$ 32,240$ 33,721$ 32,507Adjusted net realized and unrealized gains (losses), net of taxes$ (2,058)$ (52,692)$ 5,730Adjusted earnings (loss) $ 30,182$ (18,971)$ 38,237Adjusted total investment income per share$ 0.79$ 0.79$ 0.84Adjusted net investment income per share$ 0.37$ 0.38$ 0.37Adjusted net realized and unrealized gains (losses), net of taxesper share $ (0.02)$ (0.60)$ 0.07Adjusted earnings (loss) per share$ 0.34$ (0.22)$ 0.43 ____________________See Non-GAAP Financial Measures below for a description of the non-GAAP measures and the reconciliations from the most comparable GAAP nancial measures to the Company's non-GAAP measures, including on a per share basis. The Company's management uses these non-GAAP nancial measures internally to analyze and evaluate nancial results and performance and believes that these non-GAAP nancial measures areuseful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance withoutgiving e ect to non-cash income/gain/loss resulting from the merger of Oaktree Strategic Income Corporation ("OCSI") with and into the Company inMarch 2021 (the "OCSI Merger") and the merger of Oaktree Strategic Income II, Inc. ("OSI2") with and into the Company in January 2023 (the "OSI2Merger") and, in the case of adjusted net investment income, without giving e ect to capital gains incentive fees. The presentation of non-GAAPmeasures is not intended to be a substitute for nancial results prepared in accordance with GAAP and should not be considered in isolation. As of ($ in thousands, except per share data and ratios) June 30, 2026(unaudited) March 31,2026(unaudited)June 30, 2025(unaudited)Select balance sheet and other data: Cash and cash equivalents $ 39,921$ 51,261$ 79,799Investment portfolio at fair value 2,741,8142,766,3672,809,377Total debt outstanding (net of unamortized nancing costs)1,438,8421,481,6501,447,551Net assets 1,383,0551,382,0641,476,469Net asset value per share 15.70 15.69 16.76Total debt to equity ratio 1.05x 1.08x 0.99xNet 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 o set 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 o set by lower interest expense due to lower average borrowings outstanding during the quarter. 1 1 3
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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 re ected $0.6 million of lower adjusted total investment income and $0.6 million of higher net expenses. Adjusted net realized and unrealized losses, net of taxes, were $2.1 million for the quarter ended June 30, 2026, primarily re ecting realized and unrealized losses on certain debt and equity investments. Portfolio and Investment Activity As of ($ in thousands) June 30, 2026(unaudited) March 31,2026(unaudited)June 30, 2025(unaudited) Investments at fair value $ 2,741,814$ 2,766,367$ 2,809,377Number of portfolio companies 163 163 149Average portfolio company debt size$ 17,585$ 17,544$ 19,400 Asset class: 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: Non-accrual investments at fair value$ 47,035$ 69,473$ 83,637Non-accrual investments at cost 113,573167,301181,660Non-accrual investments as a percentage of debt investments at fair value1.8% 2.6% 3.2%Non-accrual investments as a percentage of debt investments at cost4.2% 5.9% 6.6%Number of investments on non-accrual6 10 10 Interest rate type: Percentage oating-rate 91.4% 91.0% 90.9%Percentage xed-rate 8.6% 9.0% 9.1% Yields: Weighted average yield on debt investments9.3% 9.3% 10.1%Cash component of weighted average yield on debt investments8.2% 8.4% 9.1%Weighted average yield on total portfolio investments9.1% 9.0% 9.6% Investment activity: New investment commitments $ 206,400$ 204,100$ 147,200New funded investment activity $ 235,500$ 198,600$ 143,300Proceeds from prepayments, exits, other paydowns and sales$ 262,800$ 334,100$ 249,400Net new investments $ (27,300) $ (135,500) $ (106,100)Number of new investment commitments in new portfolio companies7 10 5Number of new investment commitments in existing portfolio companies7 5 6Number of portfolio company exits 7 15 8 ____________________Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company's share of thereturn on debt investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basisestablished by ASC 805 (see Non-GAAP Financial Measures below) for the assets acquired in connection with the OCSI Merger and OSI2 Merger.Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including theCompany's share of the return on investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solelyfrom the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and OSI2 Merger.New funded investment activity includes drawdowns on existing revolver and delayed draw term loan commitments.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 1 2 3 4 1 2 3 4 4
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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 rst 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 rst 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. 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 5
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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 nancial 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 su cient to invest in market opportunities as they arise. As of June 30, 2026, the weighted average interest rate on debt outstanding, including the e ect 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. Non-GAAP Financial Measures On a supplemental basis, the Company is disclosing certain adjusted nancial 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 nancial measures internally to analyze and evaluate nancial results and performance and believes that these non-GAAP nancial 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 e ect 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 e ect to capital gains incentive fees. The presentation of the below non-GAAP measures is not intended to be a substitute for nancial results prepared in accordance with GAAP and should not be considered in isolation. "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 6
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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 fees , 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 identi able assets acquired other than "non-qualifying" assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was di erent 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 nancial measures described above internally to analyze and evaluate nancial results and performance and to compare its nancial 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 1 7
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as an additional tool to evaluate ongoing results and trends for the Company without giving e ect 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 speci cally as its relates to "Adjusted Net Investment Income" and "Adjusted Net Investment Income Per Share", without giving e ect 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 nancial 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 bene t of the Adviser absent such exclusion). ____________________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 IIincentive fee liability. Part II incentive fees are contractually calculated and paid at the end of the scal year in accordance with the A&R AdvisoryAgreement, which di ers from Part II incentive fees accrued under GAAP. For the three months ended June 30, 2026, no Part II incentive fees werepayable under the A&R Advisory Agreement. 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: For the three months ended June 30, 2026 (unaudited)March 31, 2026 (unaudited)June 30, 2025 (unaudited) ($ in thousands, except per share data)AmountPerShareAmountPerShareAmountPerShare GAAP total investment income$69,433$ 0.79$70,385$ 0.80$75,271$ 0.85Interest income amortization (accretion) related to mergeraccounting 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 J 302026Mh312026J 302025 1 8
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June 30, 2026 (unaudited)March 31, 2026 (unaudited)June 30, 2025 (unaudited) ($ in thousands, except per share data)AmountPerShareAmountPerShareAmountPerShare GAAP net investment income$32,521$ 0.37$34,362$ 0.39$33,481$ 0.38Interest income amortization (accretion) related to mergeraccounting 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)AmountPerShareAmountPerShareAmountPerShare GAAP net realized and unrealized gains (losses), net of taxes$ (1,581) $ (0.02) $(53,251) $ (0.60) $ 4,871$ 0.06Net realized and unrealized gains (losses) related to mergeraccounting 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)AmountPerShareAmountPerShareAmountPerShare Net increase (decrease) in net assets resulting from operations$30,940$ 0.35$(18,889) $ (0.21) $38,352$ 0.44Interest income amortization (accretion) related to mergeraccounting adjustments (281) — (641) (0.01) (974) (0.01)Net realized and unrealized gains (losses) related to mergeraccounting 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 Conference Call Information Oaktree Specialty Lending will host a conference call to discuss its third scal quarter ended June 30, 2026 results at 11:00 a.m. Eastern Time / 8:00 a.m. Paci c 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. 9
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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 nance 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 exible and innovative nancing solutions, including rst 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 a liate 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 nancial 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 di er materially from those projected, including the uncertainties associated with (i) changes or potential disruptions in the Company’s operations, the economy, nancial markets or political environment, including those caused by tari s and trade disputes with other countries, in ation 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 con ict, 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 lings. 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 10
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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 le 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. Oaktree Specialty Lending CorporationConsolidated Statements of Assets and Liabilities(in thousands, except per share amounts) June 30, 2026 (unaudited) March 31,2026 (unaudited) September30, 2025ASSETSInvestments at fair value: Control investments (cost June 30, 2026: $343,242; cost March 31, 2026: $378,041; costSeptember 30, 2025: $377,709) $ 199,896$ 210,855$ 227,748A liate investments (cost June 30, 2026: $43,826; cost March 31, 2026: $78,141; costSeptember 30, 2025: $58,344) 39,872 73,337 54,999Non-control/Non-a liate investments (cost June 30, 2026: $2,609,629; cost March 31, 2026:$2,611,720; cost September 30, 2025: $2,639,069)2,502,0462,482,1752,565,035 Total investments at fair value (cost June 30, 2026: $2,996,697; costMarch 31, 2026: $3,067,902; cost September 30, 2025: $3,075,122)2,741,8142,766,3672,847,782 Cash and cash equivalents 39,921 51,261 79,630Interest, dividends and fees receivable22,965 22,886 31,868Due from portfolio companies 237 297 3,186Receivables from unsettled transactions36,627 20,515 4,949Due from broker 1,750 15,550 15,550Deferred nancing costs 8,023 8,558 9,675Deferred o ering costs 43 43 143Derivative 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$3,002,991 LIABILITIES AND NET ASSETSLiabilities: Accounts payable, accrued expenses and other liabilities$ 2,629$ 1,852$ 1,538Base management fee and incentive fee payable9,419 7,107 12,515Due to a liate 1,957 2,113 1,569Interest payable 10,584 10,346 12,067Payables from unsettled transactions4,943 3,260 15,011Derivative liabilities at fair value 6,699 5,733 7,329Deferred tax liability 64 292 269Credit facilities payable 501,000540,000545,000Unsecured notes payable (net of $4,954, $5,490 and $6,561 of unamortized nancingcosts as of June 30, 2026, March 31, 2026 and September 30, 2025 respectively)937,842941,650941,880 Total liabilities 1,475,1371,512,3531,537,178Commitments and contingenciesNet assets: Common stock, $0.01 par value per share, 250,000 shares authorized; 88,086 sharesissued and outstanding as of June 30, 2026, March 31, 2026 and September 30, 2025,respectively 881 881 881Additional paid-in-capital 2,350,0752,350,0752,350,075 Accumulated overdistributed earnings(967,901) (968,892) (885,143) Total net assets (equivalent to $15.70, $15.69 and $16.64 per commonshare as of June 30, 2026, March 31, 2026 and September 30, 2025,respectively) 1,383,0551,382,0641,465,813 Total liabilities and net assets$2,858,192$2,894,417$3,002,991 11
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Oaktree Specialty Lending CorporationConsolidated Statements of Operations(in thousands, except per share amounts) Threemonthsended June 30, 2026 (unaudited) Threemonthsended March 31,2026 (unaudited) Threemonthsended June 30, 2025 (unaudited) Nine monthsended June 30, 2026 (unaudited) Nine monthsended June 30, 2025 (unaudited)Interest income: Control investments$ 3,271$ 4,794$ 5,165$ 12,963$ 15,275A liate investments 1,475 848 277 2,863 602Non-control/Non-a liate investments56,032 58,566 62,441175,155198,165Interest on cash and cash equivalents858 1,045 1,507 2,831 4,293 Total interest income61,63665,25369,390193,812218,335 PIK interest income: Control investments — — — — 830A liate investments 217 281 28 945 83Non-control/Non-a liate investments4,992 3,174 5,042 11,567 14,416 Total PIK interest income5,2093,4555,07012,51215,329 Fee income: A liate investments — — — 4 —Non-control/Non-a liate investments976 1,299 286 5,243 3,707 Total fee income 976 1,299 286 5,2473,707 Dividend income: Control investments 1,400 — 525 1,925 1,925Non-control/Non-a liate investments27 23 — 50 190Non-control/Non-a liate investments - PIK185 355 — 1,368 — Total dividend income1,612 378 525 3,3432,115 Total investment income69,43370,38575,271214,914239,486 Expenses: Base management fee7,046 7,107 7,195 21,697 22,854Part I incentive fee 2,373 — 5,767 3,561 20,413Professional fees 1,627 1,288 1,388 4,329 3,682Directors fees 160 160 160 480 480Interest expense 24,139 25,626 31,061 76,424 89,814Administrator expense623 663 525 1,856 1,350General and administrative expenses641 1,175 997 2,657 2,860 Total expenses 36,60936,01947,093111,004141,453 Management fees waived— — — — (933)Part I incentive fees waived— — (5,359) — (18,469) Net expenses 36,60936,01941,734111,004122,051 Net investment income before taxes32,82434,36633,537103,910117,435 (Provision) bene t for taxes on net investmentincome (303) (4) (56) (324) (597) Net investment income32,52134,36233,481103,586116,838 Unrealized appreciation (depreciation): Control investments 23,840 (8,265) (2,024) 6,615 (62,940)A liate investments 850 (663) (246) 1,145 (568)Non-control/Non-a liate investments21,987 (32,736) 18,905 (35,283) (17,268)Foreign currency forward contracts1,533 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) 13A liate investments 4,849 169 145 5,070 190Non-control/Non-a liate investments(30,544) (17,393) 1,705 (47,861) (16,898)Foreign currency forward contracts493 3,614 (15,282) 5,321 (7,342) Net realized gains (losses)(49,539) (13,610) (13,432) (61,807) (24,037) (Provision) bene t for taxes on realizedand 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 assetsresulting from operations$ 30,940$ (18,889)$ 38,352$ 17,659$ 9,342 Net investment income per commonshare — basic and diluted$ 0.37$ 0.39$ 0.38$ 1.18$ 1.37E i (l ) h 12
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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 Investor Relations: Oaktree Specialty Lending Corporation Alison Mermey (213) 830-6946 ocsl-ir@oaktreecapital.com Media Relations: Financial Pro les, Inc. Moira Conlon (310) 478-2700 mediainquiries@oaktreecapital.com Source: Oaktree Specialty Lending Corporation 13