Oaktree Specialty Lending (OCSL) investor relations material

Executive summary

• Net asset value (NAV) per share declined to $15.69 from $16.30, driven by realized and unrealized losses, particularly in software investments, and distributions to stockholders.

• Net investment income was $34.4 million ($0.39/share GAAP, $0.38/share adjusted), down from the prior quarter, reflecting lower investment income and higher expenses.

• Portfolio at fair value totaled $2.8 billion across 163 companies, with 85%–96% in senior secured debt and 84%–96% first lien.

• Non-accruals reduced to 2.6% of the debt portfolio at fair value, down from 3.1% last quarter and 4.6% a year ago.

• Quarterly and supplemental distributions of $0.34 per share were declared, payable June 30, 2026.

Financial highlights

• Total investment income for Q2 2026 was $70.4 million (GAAP), down from $75.1 million in the prior quarter, mainly due to lower reference rates and reduced non-recurring income.

• Adjusted net investment income was $33.7 million ($0.38/share), down from $36.1 million ($0.41/share) in the prior quarter.

• Net realized and unrealized losses, net of taxes, were $(0.60) per share, a larger loss than the prior quarter.

• Net assets decreased to $1.38 billion as of March 31, 2026, from $1.47 billion at September 30, 2025.

• Total expenses for the quarter were $36.0 million, down from $38.2 million year-over-year.

Outlook and guidance

• Management expects continued progress reducing non-accruals and redeploying proceeds into performing assets.

• Sufficient liquidity and capital resources are available to invest in market opportunities as they arise.

• Forward-looking risks include inflation, interest rates, and geopolitical events, but the middle market offers attractive risk-adjusted returns.

• Plan to maintain leverage toward the mid to low end of the 0.9x–1.25x target range.

• Dividend adjusted to $0.34 per share for the quarter, reflecting a conservative leverage approach.