Structural margin volatility remains a primary concern, with gross margins fluctuating from a low of -2.9% in 2024Q3 to a peak of 100% in 2026Q2 due to portfolio-level valuation adjustments.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 |
|---|
| Sales/Revenue | 284.92M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 231.44M | 261.37M | 57.61M | 125.2M | 39.11M | 248.31M | 52.31M | 127.13M | 57.31M | -183.67M | -43.61M | 29.09M | 125.24M | 111.1M | 87.47M | 36.67M | 27.24M | 34.82M | 32.36M |
| Gross Margin % | 81.23% | 87.21% | 30.94% | 52.86% | 45.46% | 89.05% | 66.56% | 79.68% | 61.6% | 137.34% | -395.88% | 33.92% | 70.88% | 76.85% | 79% | 70.78% | 93.39% | 98.2% | 97.24% |
| Gross Profit Growth % | - | 353.68% | -53.99% | 220.11% | -84.25% | 374.63% | -58.85% | 121.81% | 131.2% | -321.21% | -249.92% | -76.78% | 12.72% | 27.02% | 138.52% | 34.6% | -21.76% | 7.58% | - |
| Operating Expenses | 102.54M | 110.35M | -185K | 6.14M | 6.25M | 7.46M | 14.86M | -43K | 9.93M | 13.29M | 22.95M | 13.69M | 12.71M | 9.28M | 8.07M | 6.46M | 4.83M | 28.62M | 29.11M |
| OpEx % of Revenue | - | 36.82% | -0.1% | 2.59% | 7.27% | 2.68% | 18.91% | -0.03% | 10.67% | -9.94% | 208.35% | 15.97% | 7.19% | 6.42% | 7.29% | 12.48% | 16.55% | 80.73% | 87.46% |
| Selling, General & Admin | 9.73M | 8.48M | 9.5M | 11.66M | 9.25M | 9.07M | 7.12M | 7.95M | 11.15M | 14.79M | 23.22M | 14.24M | 13.39M | 11.6M | 9.64M | 7.94M | 5.55M | 16.51M | 674.36K |
| SG&A % of Revenue | - | 2.83% | 5.1% | 4.92% | 10.75% | 3.25% | 9.06% | 4.98% | 11.99% | -11.06% | 210.78% | 16.6% | 7.58% | 8.03% | 8.7% | 15.33% | 19.04% | 46.56% | 2.03% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 128.9M | 151.02M | 57.8M | 119.06M | 32.86M | 240.84M | 37.45M | 127.17M | 47.38M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 3.26M |
| Operating Margin % | 45.24% | 50.39% | 31.03% | 50.27% | 38.19% | 86.38% | 47.65% | 79.7% | 50.93% | 147.28% | -604.23% | 17.96% | 63.68% | 70.43% | 71.72% | 58.31% | 76.84% | 17.47% | 9.79% |
| Operating Income Growth % | - | 161.29% | -51.46% | 262.34% | -86.36% | 543.03% | -70.55% | 168.38% | 124.06% | -195.94% | -532.32% | -86.32% | 10.52% | 28.24% | 162.86% | 34.76% | 261.91% | 90.11% | - |
| EBITDA | 128.9M | 151.02M | 57.8M | 119.06M | 32.86M | 240.84M | 37.45M | 127.17M | 47.38M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 20.21M |
| EBITDA Margin % | 45.24% | 50.39% | 31.03% | 50.27% | 38.19% | 86.38% | 47.65% | 79.7% | 50.93% | 147.28% | -604.23% | 17.96% | 63.68% | 70.43% | 71.72% | 58.31% | 76.84% | 17.47% | 60.71% |
| EBITDA Growth % | 1296.5% | 161.29% | -51.46% | 262.34% | -86.36% | 543.03% | -70.55% | 168.38% | 124.06% | -195.94% | -532.32% | -86.32% | 10.52% | 28.24% | 162.86% | 34.76% | 261.91% | -69.35% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 16.95M |
| EBIT | 128.9M | 151.02M | 57.8M | 119.06M | 32.86M | 240.84M | 37.45M | 127.17M | 47.38M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 3.26M |
| Net Interest Income | 181.49M | 191.63M | 238.46M | 256.89M | 202.51M | 160.31M | 107.14M | 106.74M | 88.55M | 113.48M | 156.6M | 172.66M | 185.34M | 140.21M | 109.94M | 93.14M | 62.2M | 45.59M | 30.34M |
| Interest Income | 290.86M | 307.47M | 367.08M | 368.53M | 249.44M | 190.83M | 133.43M | 139.17M | 124.28M | 163.42M | 211.22M | 229.31M | 236.8M | 173.68M | 133.19M | 108.27M | 64.13M | 46.23M | 31.25M |
| Interest Expense | 109.38M | 115.84M | 128.62M | 111.64M | 46.93M | 30.52M | 26.29M | 32.43M | 35.73M | 49.94M | 54.62M | 56.65M | 51.47M | 33.47M | 23.25M | 15.14M | 1.93M | 636.9K | 917.04K |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 50.58M | 35.17M | 57.8M | 119.06M | 32.86M | 240.84M | 37.45M | 127.17M | 47.38M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 3.26M |
| Pretax Margin % | 17.75% | 11.74% | 31.03% | 50.27% | 38.19% | 86.38% | 47.65% | 79.7% | 50.93% | 147.28% | -604.23% | 17.96% | 63.68% | 70.43% | 71.72% | 58.31% | 76.84% | 17.47% | 9.79% |
| Income Tax | 932K | 1.25M | -108K | 1.73M | 3.64M | 3.58M | -1.77M | 1.01M | 622K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 1.84% | 3.57% | -0.19% | 1.46% | 11.07% | 1.49% | -4.73% | 0.79% | 1.31% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 49.65M | 33.92M | 57.91M | 117.33M | 29.22M | 237.26M | 39.22M | 126.16M | 46.76M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 3.26M |
| Net Margin % | 17.43% | 11.32% | 31.09% | 49.54% | 33.96% | 85.09% | 49.9% | 79.07% | 50.26% | 147.28% | -604.23% | 17.96% | 63.68% | 70.43% | 71.72% | 58.31% | 76.84% | 17.47% | 9.79% |
| Net Income Growth % | 450.25% | -41.42% | -50.65% | 301.5% | -87.68% | 504.88% | -68.91% | 169.79% | 123.74% | -195.94% | -532.32% | -86.32% | 10.52% | 28.24% | 162.86% | 34.76% | 261.91% | 90.11% | - |
| Net Income (Continuing) | 49.65M | 33.92M | 57.91M | 117.33M | 29.22M | 237.26M | 39.22M | 126.16M | 46.76M | -196.97M | -66.56M | 15.39M | 112.53M | 101.82M | 79.4M | 30.21M | 22.42M | 6.19M | 3.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.56 | 0.39 | 0.72 | 1.63 | 0.48 | 4.39 | 0.83 | 2.69 | 1.00 | -4.18 | -1.32 | 0.30 | 2.37 | 2.70 | 2.91 | 1.41 | 1.47 | 0.75 | 0.63 |
| EPS Growth % | 335.61% | -45.83% | -55.83% | 239.58% | -89.07% | 428.92% | -69.14% | 169% | 123.92% | -216.67% | -540% | -87.34% | -12.22% | -7.22% | 106.38% | -4.08% | 96% | 19.05% | - |
| EPS (Basic) | - | 0.39 | 0.72 | 1.63 | 0.48 | 4.39 | 0.83 | 2.69 | 1.00 | -4.18 | -1.35 | 0.30 | 2.37 | 2.76 | 3.00 | 1.41 | 1.47 | 0.75 | 0.63 |
| Diluted Shares Outstanding | 88.09M | 86.08M | 80.42M | 72.12M | 60.73M | 54.04M | 46.99M | 46.99M | 46.99M | 47.15M | 50.45M | 53.65M | 49.93M | 39.35M | 29.24M | 22.91M | 15.15M | 8.22M | 5.19M |
| Basic Shares Outstanding | 88.09M | 86.08M | 80.42M | 72.12M | 60.73M | 54.04M | 46.99M | 46.99M | 46.99M | 47.15M | 49.14M | 51.05M | 47.33M | 36.76M | 26.52M | 21.35M | 15.15M | 8.22M | 5.19M |
| Dividend Payout Ratio | - | 436.91% | 305.35% | 153.45% | 394.37% | 33.66% | 135.37% | 41.39% | 117.56% | - | - | 745.01% | 117.72% | 113.37% | 115.7% | 253.91% | 186.55% | 438.12% | 272.34% |
Portfolio valuation volatility
As evidenced by the quarterly income statement data, OCSL's gross margin has fluctuated significantly, ranging from a low of -2.9% in 2024Q3 to a peak of 100% in 2026Q2, highlighting the inherent sensitivity of BDC interest income to portfolio-level valuation adjustments and non-accrual events.
The extreme variance in gross margins suggests that the company's core interest income is frequently obscured by unrealized gains or losses on its investment portfolio. Investors should monitor whether these swings represent temporary market-to-market noise or a fundamental degradation in the underlying credit quality of the loan book.
Based on the reported financial figures, the disparity between operating income and net income, exemplified by the 2026Q2 net loss of $18.9M despite positive operating income, indicates that non-operating items and portfolio mark-to-market adjustments are exerting a disproportionate influence on the bottom line.
This disconnect suggests that headline earnings may not accurately reflect the cash-generating capacity of the lending business. Analysts should focus on Net Investment Income (NII) rather than GAAP net income to better gauge the sustainability of the dividend and the true operational performance of the firm.
According to the provided quarterly data, operating margins have swung from 3.0% in 2025Q2 to 60.4% in 2025Q4, indicating that the company's ability to scale operating income relative to gross profit is heavily dependent on the stability of its investment portfolio valuations.
The lack of consistent operating leverage suggests that management's expense discipline is secondary to the impact of portfolio-level credit events. This volatility warrants further investigation into whether the current cost structure can support consistent profitability during periods of broader market stress.
While the company reports significant revenue figures, the 2025Q2 period, where revenue dropped to -$12.0M, serves as a stark reminder that OCSL's income statement is susceptible to sudden, sharp reversals that may indicate underlying credit deterioration within its middle-market loan portfolio.
Short-sellers would likely focus on the reliance on Level 3 asset valuations, which may be masking the true extent of credit risk. The potential for future write-downs remains a significant concern that could impair the net asset value and pressure the company's ability to maintain its current dividend payout.
Quick answers to the most common questions about buying OCSL stock.
Oaktree Specialty Lending Corporation (OCSL) is profitable, generating $33.9M in net income for the fiscal year ending 2025 with a net profit margin of 11.3%.
Oaktree Specialty Lending Corporation (OCSL) reported an operating income of $151.0M, resulting in an operating profit margin of 50.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Oaktree Specialty Lending Corporation (OCSL) generated $261.4M in gross profit for the year, representing a gross profit margin of 87.2%. This demonstrates the company's core pricing power and production efficiency.