The income statement reveals a core business in collapse, with net interest income declining for eight consecutive quarters to -$24.1M in 2026Q3 and the net interest margin swinging from 1.8% to -0.8%, indicating the company is now losing money on its primary lending function.
Oaktree Specialty Lending Corporation (OCSL) annual income statement — 18-year revenue, gross profit & net income history
| 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 |
|---|
| Net Interest Income | 113.95M | 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 |
| NII Growth % | -192.67% | -19.64% | -7.17% | 26.85% | 26.33% | 49.62% | 0.38% | 20.54% | -21.97% | -27.54% | -9.3% | -6.84% | 32.18% | 27.54% | 18.04% | 49.73% | 36.44% | 50.29% | - |
| Net Interest Margin % | 3.99% | 6.38% | 7.46% | 7.98% | 7.65% | 6.08% | 6.53% | 7.21% | 5.71% | 7.02% | 6.68% | 6.68% | 6.95% | 6.77% | 7.92% | 7.7% | 9.54% | 10.96% | 10.14% |
| Interest Income | 216.4M | 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 | 102.45M | 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 |
| Loan Loss Provision | -22.5M | 38.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 88.33M | 108.08M | -180.85M | -131.68M | -163.4M | 88M | -54.83M | 20.39M | -31.24M | -297.15M | -200.21M | -143.57M | -60.1M | -29.11M | -22.47M | -56.47M | -34.96M | -10.77M | 2.03M |
| Non-Interest Income % | 43.67% | 36.06% | -313.91% | -105.17% | -417.76% | 35.44% | -104.8% | 16.04% | -54.5% | 161.78% | 459.13% | -493.61% | -47.98% | -26.2% | -25.69% | -153.98% | -128.33% | -30.94% | 6.27% |
| Total Net Revenue | 202.28M | 299.7M | 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 |
| Revenue Growth % | 465.52% | 420.21% | -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% | - |
| Non-Interest Expense | 101.73M | 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 |
| Efficiency Ratio | 50.29% | 36.82% | -0.32% | 4.9% | 15.99% | 3.01% | 28.41% | -0.03% | 17.33% | -7.24% | -52.63% | 47.07% | 10.15% | 8.36% | 9.22% | 17.62% | 17.72% | 82.21% | 89.93% |
| Operating Income | 123.04M | 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 % | 60.83% | 50.39% | 100.32% | 95.1% | 84.01% | 96.99% | 71.59% | 100.03% | 82.67% | 107.24% | 152.63% | 52.93% | 89.85% | 91.64% | 90.78% | 82.38% | 82.28% | 17.79% | 10.07% |
| 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% | - |
| Pretax Income | 44.73M | 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 % | 22.11% | 11.74% | 100.32% | 95.1% | 84.01% | 96.99% | 71.59% | 100.03% | 82.67% | 107.24% | 152.63% | 52.93% | 89.85% | 91.64% | 90.78% | 82.38% | 82.28% | 17.79% | 10.07% |
| Income Tax | 2.49M | 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 % | 5.57% | 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 | 42.24M | 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 % | 20.88% | 11.32% | 100.51% | 93.71% | 74.71% | 95.55% | 74.98% | 99.24% | 81.59% | 107.24% | 152.63% | 52.93% | 89.85% | 91.64% | 90.78% | 82.38% | 82.28% | 17.79% | 10.07% |
| Net Income Growth % | -8.69% | -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) | 42.24M | 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 |
| EPS (Diluted) | 0.48 | 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 % | -13.32% | -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 |
Quick answers to the most common questions about buying OCSL stock.
For fiscal year 2025, Oaktree Specialty Lending Corporation (OCSL) reported total revenue of $299.7M. This represents a 826.0% increase compared to $32.4M in 2008.
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.
Key Metrics
Top Statement Risk
Negative net interest income
Metrics are mathematically derived from official filings.
Net Interest Income in Sharp Contraction
Net interest income has declined for eight consecutive quarters, falling from $58.2M in 2024Q2 to a negative -$24.1M in 2026Q3, a deterioration of over 140% that signals severe pressure on the core lending business.
The negative NII in the latest quarter is a critical development, suggesting that interest expense on liabilities has overwhelmed interest earned on assets. This implies the company's funding cost structure has become uncompetitive or its asset yields have collapsed, fundamentally undermining the primary revenue engine of a lending institution. Investors must closely monitor whether this is a temporary dislocation or a structural impairment to the business model.
Net Interest Margin in Structural Decline
The net interest margin has deteriorated from 1.8% in early 2024 to -0.8% in 2026Q3, a swing of 260 basis points that indicates asset yields are no longer covering the cost of funds, creating a persistent earnings headwind.
The negative NIM is the most concerning metric in the analysis, as it represents the fundamental profitability of the bank's lending activities. This trend suggests the company is likely caught in a challenging rate environment where deposit betas or borrowing costs have risen faster than loan yields. The margin compression is severe enough to wipe out the core earnings power of the balance sheet, making fee income and realized gains the only sources of operational profit.
Fee Income Volatility Masks Core Weakness
Non-interest income has swung wildly from negative $87.1M in 2025Q2 to positive $61.6M in 2026Q3, with fees representing 100% of total revenue in the latest quarter, highlighting extreme dependency on non-core, likely mark-to-market, gains.
The complete reliance on non-interest income for total revenue in 2026Q3 is a significant red flag. As reported in financial statements, the volatile swings suggest these gains may be driven by unrealized mark-to-market changes in the investment portfolio or other non-recurring items, rather than stable, recurring fee streams. This earnings composition offers poor visibility and durability, and investors should be cautious about extrapolating such results.
2025Q2 Marked an Operating Loss Trough
The second quarter of 2025 appears to be a key inflection point, where the company recorded a massive -$87.1M non-interest loss that drove total revenue to -$12.0M and an operating loss of -$36.0M, revealing deep vulnerability to valuation shifts.
Based on the provided data, the 2025Q2 loss coincided with a period of negative NIM (1.5%) and negative fee income (-21.7%), suggesting a perfect storm of margin pressure and portfolio mark-downs. This episode likely represents a significant write-down or realized loss on investments, which may indicate stress within the underlying asset portfolio. The subsequent quarters show a partial recovery, but the foundational NII weakness persists, indicating the structural issues from that inflection point remain unresolved.
Earnings Quality and Operational Sustainability
The strongest challenge to OCSL's earnings quality is that its recent positive net income in 2026Q3 ($30.9M) was generated entirely from volatile non-interest income against a negative NII core, an unsustainable model for a specialty lender.
The company's ability to report a profit hinges on large, unpredictable fee or gain items, while its core lending operation is losing money. This structure appears fragile and leaves earnings highly exposed to market sentiment and valuation changes. An analyst must question the long-term viability of a business model where the primary lending function does not cover its own cost of capital, forcing reliance on portfolio trading or revaluations for profitability.