Blue Owl Technology Finance Corp. Q1 FY2026 earnings call

• Credit performance is very strong with non - accruals among the lowest in the space and being one of the few BDCs to have generated net gains since inception. - Current market around software is attractive with spreads wider and capital less available. - Portfolio is positioned well in durable parts of the software market. - Technology investment team has constant dialogue with portfolio companies, sponsors, etc. - Active quarter for new investments and repayments, with examples like Telerad, MindBody, relativity being repaid. - Software operators invest heavily in AI, e.g., Toma Bravo and Google Cloud partnership. - PIC income moderate this quarter, with structured PIC as a valuable return enhancer.

Approximately 70% of the portfolio is in software, with the balance in other technology areas such as life sciences, hardware, and other tech - enabled services. Adjusted net investment income per share was 29 cents and net asset value per share was $16.49 in the first quarter ended March 31st, 2026.

• Underwriting bar will remain high and stay selective in opportunities. - Has ample dry powder and ability to increase leverage towards target range. - Volatile periods create attractive opportunities for disciplined capital deployment. - Anticipate software deal activity to remain tempered but see opportunities in digital infrastructure and life sciences. - LSI Financing has delivered good net IRR and has room to increase allocation.

• Broader volatility across technology and software assets impacts valuations. - Uncertainty around the impact of AI on software profitability and terminal values. - Market sell - off causes weighted average LTVs to rise modestly.

Q: Big picture on software, lenders in private credit wanting to pare down exposure, concern for future credit quality if new money dries up?

A: Eric said AI is significant, most lenders will reduce exposure but OTF will still be significant in software with high bar for new investments, companies performing well will likely have access to financing even if more expensive.

Q: Marks this quarter, pure loan - to - value or slowing in performance?

A: About a third of marks in certain book are multiple driven, 80% of debt marks spread driven, results reflect re - rating in software space but coming from strong position.

Q: Tide shifting in public software market, recovery in evaluations, impact on transaction activity?

A: Eric said market sentiment shifted, seen strong prints in public stocks, expect pickup in deal activity in latter half of year, conversation will shift as businesses embed AI and show growth.

Q: Opportunities outside software, digital infrastructure, life sciences?

A: Life sciences has commercially successful deals, digital infrastructure has GPU financing and data center activity, teams have dedicated capabilities.

Q: Dividend coverage, board evaluation?

A: Board focuses on dividend, drivers are deployment, leverage, spreads, churn in structured capital book, will take longer for things to play out but ultimate outcome remains.

Q: Redemption requests and institutional flow?

A: No impact on OTF's ability to deploy capital, non - traded funds have ample liquidity to cover outflows.

Q: Equity co - investment marks and near - term liquidity events?

A: Vast majority of equity book changes are mark - to - market, have other attractive investments like Revolut, Stripe with potential exits.