Oaktree Specialty Lending Corporation
- Open
- 13.12
- Day high
- 13.15
- Day low
- 13.04
- Prev close
- 13.16
- Volume
- 122K
- Mkt cap
- $1.2B
- P/E (TTM)
- 27.1
- EPS (TTM)
- $0.48
- P/B
- 0.8
- P/S
- 4.1
- Yield
- 11.76%
- Per share
- $1.54
- ▲Insiders net buying $22K over the last 3 months (1 open-market buy, 0 sales)
- 🏛Institutions mixed (13F)
Oaktree Specialty Lending Corporation (OCSL) is a Financial Services company listed on NASDAQ. The stock is down 4% over the past year. Over the trailing 3 months, insiders filed 1 open-market buy and 0 sales (SEC Form 4). Drillr has 1 published research article covering OCSL.
Oaktree Specialty Lending Corporation (OCSL) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
OCSL earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.36 | $0.37 | +3.5% | $69M | +0.1% |
| May 5, 2026 | $0.36 | $0.38 | +5.6% | $70M | -6.2% |
| Feb 4, 2026 | $0.38 | $0.41 | +7.9% | $76M | +3.1% |
| Nov 18, 2025 | $0.39 | $0.40 | +3.6% | $84M | +10.1% |
| May 1, 2025 | $0.51 | $0.45 | -11.8% | $-12M | -113.9% |
| Feb 4, 2025 | $0.54 | $0.54 | +0.0% | $78M | -12.6% |
| Nov 19, 2024 | $0.56 | $0.55 | -1.8% | $36M | -62.5% |
| Aug 1, 2024 | $0.57 | $0.55 | -3.5% | $26M | -73.8% |
| Apr 30, 2024 | $0.57 | $0.56 | -1.8% | $87M | -12.7% |
| Feb 1, 2024 | $0.61 | $0.57 | -6.6% | $12M | -88.2% |
| Nov 14, 2023 | $0.63 | $0.62 | -1.6% | $49M | -52.6% |
| Aug 3, 2023 | $0.64 | $0.62 | -3.1% | $38M | -63.2% |
OCSL insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 13, 2026 | Panossian Armenofficer: See Remarks | Buy | 1,700 | $12.69 |
| Mar 18, 2026 | CALDWELL PHYLLIS Rdirector | Buy | 2,500 | $10.77 |
| Sep 16, 2025 | CALDWELL PHYLLIS Rdirector | Buy | 25 | $13.19 |
| Sep 16, 2025 | CALDWELL PHYLLIS Rdirector | Buy | 975 | $13.20 |
| Sep 16, 2025 | CALDWELL PHYLLIS Rdirector | Buy | 2,000 | $13.19 |
| Jul 1, 2025 | Gero Deborah Anndirector | Buy | 2,500 | $13.70 |
| May 19, 2025 | Panossian Armenofficer: See Remarks | Buy | 8,000 | $14.13 |
| May 8, 2025 | CALDWELL PHYLLIS Rdirector | Buy | 2,000 | $13.32 |
| May 7, 2025 | Jacobson Craig Adirector | Buy | 14,910 | $13.41 |
| Feb 26, 2025 | CALDWELL PHYLLIS Rdirector | Buy | 2,500 | $15.83 |
| Feb 25, 2025 | Khanna Raghavofficer: Co-Chief Investment Officer | Buy | 6,000 | $15.95 |
| Feb 25, 2025 | Pendo Mathewofficer: President | Buy | 6,260 | $15.93 |
| Sep 23, 2024 | CALDWELL PHYLLIS Rdirector | Buy | 405 | $16.01 |
| Sep 23, 2024 | CALDWELL PHYLLIS Rdirector | Buy | 95 | $16.00 |
| Sep 23, 2024 | CALDWELL PHYLLIS Rdirector | Buy | 500 | $16.01 |
Source: OCSL SEC Form 4 filings, latest Aug 13, 2026. For informational purposes only — not investment advice.
See the full OCSL insider & 13F page →OCSL research & analysis
Oaktree Specialty Lending Corporation company profile
Overview
Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a business development company that was founded in 2007 and went public in 2008. The company operates as a specialty finance firm that provides debt capital to middle-market companies across North America. OCSL is managed by Oaktree Capital Management, a prominent alternative investment manager known for its expertise in distressed debt and credit investing. The company has evolved from a smaller specialty lender into a significant player in the direct lending space, with a current portfolio exceeding $3 billion across more than 150 companies.
Business
Oaktree Specialty Lending Corporation operates in the business development company (BDC) sector, which is a specialized segment of the financial services industry. BDCs are investment vehicles that provide capital to small and medium-sized businesses that may have difficulty accessing traditional bank financing or public capital markets. The company's core business involves direct lending to middle-market companies, which are typically businesses with annual revenues between $20 million and $1 billion. OCSL focuses primarily on providing debt financing in the form of first-lien senior secured loans, second-lien debt, mezzanine financing, and occasionally equity co-investments. The company targets businesses with enterprise values between $20 million and $150 million and EBITDA (earnings before interest, taxes, depreciation, and amortization) between $3 million and $50 million. The portfolio composition is heavily weighted toward senior secured debt investments, with approximately 82% in first-lien positions and 86% in senior secured loans overall. This conservative approach prioritizes capital preservation by maintaining top-of-capital-structure positions that provide better recovery prospects in case of borrower distress. The company typically invests between $5 million and $75 million per transaction, with the ability to underwrite deals up to $100 million. OCSL serves companies across various industries including education services, business services, retail and consumer goods, healthcare, manufacturing, food and restaurants, construction and engineering, and media and advertising. The median portfolio company has EBITDA of approximately $140-160 million, indicating the company's focus on larger, more established middle-market businesses rather than smaller, riskier ventures.
Revenue model
Oaktree Specialty Lending generates revenue primarily through interest income from its debt investments and dividend income from equity positions. As a BDC, the company is required to distribute at least 90% of its taxable income to shareholders, making it essentially a pass-through entity for tax purposes. The company's revenue streams include: 1. Interest payments from borrowers on first-lien, second-lien, and mezzanine debt investments, with most loans carrying floating interest rates tied to SOFR (Secured Overnight Financing Rate) plus a spread. 2. Fees from loan origination, structuring, and monitoring services provided to portfolio companies. 3. Capital gains from the sale of investments and equity appreciation. 4. Dividend income from equity co-investments in portfolio companies. The primary customers are middle-market companies seeking growth capital, acquisition financing, or refinancing solutions. These businesses typically work with private equity sponsors or are family-owned enterprises that need flexible capital solutions not readily available from traditional banks. Several factors influence OCSL's profitability margins. Positive factors include rising interest rates, which increase income from floating-rate loans (86% of the portfolio), market dislocations that create attractive investment opportunities with higher spreads, and the company's focus on larger, more stable businesses that typically offer better risk-adjusted returns. Negative factors include declining interest rates, increased competition from banks and other lenders that compress loan spreads, economic downturns that increase default rates, and regulatory changes affecting BDC operations. The company's cost of capital, primarily from its credit facilities and bond issuances, also directly impacts net interest margins.
Competitive moat
Oaktree Specialty Lending's competitive moat is moderately strong but not insurmountable, primarily derived from its association with Oaktree Capital Management's established platform and reputation. The company benefits from Oaktree's extensive network of relationships with private equity sponsors, investment banks, and middle-market companies, which provides access to deal flow that might not be available to smaller or less established lenders. The Oaktree brand and expertise in credit investing provides credibility with borrowers and co-investors, particularly in complex or distressed situations. The platform's scale allows OCSL to participate in larger transactions and maintain diversification across industries and borrowers. Additionally, the company's focus on senior secured, first-lien positions provides some defensive characteristics during economic downturns. However, the moat faces significant challenges. The direct lending market has become increasingly competitive, with traditional banks re-entering the space, new BDCs launching regularly, and private credit funds raising substantial capital. This competition has compressed spreads and loosened lending terms industry-wide. Unlike technology companies with network effects or consumer brands with switching costs, OCSL's business model is relatively replicable by well-capitalized competitors. The company's regulatory structure as a BDC also creates constraints, including leverage limits and distribution requirements that may limit strategic flexibility compared to private competitors. Furthermore, the commoditized nature of debt capital means that borrowers often choose lenders primarily based on price and terms rather than relationship factors, reducing the sustainability of competitive advantages.
Risks & safety
OCSL maintains a reasonable margin of safety with conservative leverage and strong liquidity, though credit quality concerns have emerged recently. **Liquidity and Solvency:** - Strong cash position of $98 million plus $908 million in undrawn credit capacity - Leverage ratio of 0.93x (well below the 1.25x upper target range) - No near-term debt maturities creating refinancing pressure - Diverse funding sources including credit facilities and bond issuances **Credit Quality Concerns:** - Non-accrual investments increased to 4.6% of portfolio fair value (up from 1.8% in 2023) - Recent additions to non-accrual status indicate potential credit deterioration - Portfolio company leverage averaging 5.4x, which is elevated for middle-market companies **Valuation Metrics:** - Trading at 0.89x book value, providing some downside protection - Price-to-earnings ratio of approximately 9-22x depending on earnings volatility - Dividend yield of approximately 16% based on current $0.55 quarterly dividend **Other Considerations:** - Interest rate sensitivity provides both opportunity and risk depending on rate direction - Regulatory requirements ensure regular asset valuations and distribution of income - Management fee reduction from 1.5% to 1.0% improves shareholder economics
Recent development
Over the past few years, OCSL has undergone significant strategic evolution focused on portfolio optimization and cost reduction. The company permanently reduced its base management fee from 1.5% to 1.0% of gross assets in 2024, representing a meaningful improvement in shareholder economics. Additionally, management has periodically waived incentive fees, including $3.2 million in Q3 2024 and $1.2 million in Q4 2024, demonstrating alignment with shareholder interests during challenging periods. The company has strategically shifted toward larger, more diversified portfolio companies, with median portfolio company EBITDA increasing from $109 million in 2023 to approximately $158 million currently. This evolution reflects a focus on higher-quality borrowers that may offer better risk-adjusted returns and lower default probabilities. Capital structure optimization has been a key focus, with OCSL completing several refinancing transactions to reduce borrowing costs and extend maturity profiles. The company amended its senior secured revolving credit facility to reduce interest rates and issued new unsecured bonds maturing in 2030. Notably, Oaktree Capital Management invested $100 million in new OCSL shares at net asset value, demonstrating confidence in the platform. The company has also enhanced its investment strategy by increasing first-lien exposure to 82% of the portfolio (up from 76% in 2023) while reducing second-lien exposure from 10% to 4%. This shift toward senior positions reflects a more conservative approach amid uncertain market conditions. However, the company has experienced challenges with credit quality, as non-accrual investments increased from 1.8% to 4.6% of portfolio value, requiring active workout efforts on several positions.
OCSL company profile · for informational purposes only — not investment advice.
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