Operating cash flow turned deeply negative at -$452.6M in 2026Q2, while dividends of $84.2M exceeded cash generation, and investment purchases outpaced sales by approximately $1.9B, signaling a cash burn that may be unsustainable.
Blue Owl Technology Finance Corp. (OTF) cash flow statement — 6-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Cash from Operations | -302.58M | 924.03M | 221.8M | 708.36M | -295.28M | -2.62B | 58.45M |
| Operating CF Growth % | 14.27% | 316.61% | -68.69% | 339.89% | 88.73% | -4581.73% | - |
| Net Income | 359.5M | 18.94M | 319.23M | 369.14M | 19M | 424.81M | 122.12M |
| Depreciation & Amortization | -36.28M | -25.25M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -86.87M | 988.46M | -104.36M | 302.61M | -286.18M | -3.07B | -65.59M |
| Working Capital Changes | 110.97M | -58.12M | 6.93M | 36.61M | -28.1M | 30.74M | 1.92M |
| Cash from Investing | -3.27B | -1.84B | -157.65M | 0 | 0 | 0 | -1.51B |
| Purchase of Investments | -4.51B | -3.76B | -1.97B | 0 | 0 | 0 | -1.82B |
| Sale/Maturity of Investments | -387.59M | 1.92B | 1.82B | 0 | 0 | 0 | 306.23M |
| Net Investment Activity | -4.9B | -1.84B | -157.65M | 0 | 0 | 0 | -1.51B |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 1.62B | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 1.6B | 941.88M | -276.17M | -442.63M | 391.55M | 2.64B | 1.39B |
| Dividends Paid | -539.61M | -393.73M | -229.95M | -208.74M | -136.32M | -83.27M | -49.3M |
| Share Repurchases | -178.77M | -73.45M | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 1.7B | 655.83M |
| Net Stock Activity | -178.77M | -73.45M | 0 | 0 | 0 | 1.7B | 655.83M |
| Debt Issuance (Net) | 2M | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K |
| Other Financing | 721.53M | -26.61M | -11.69M | -11.48M | -11.24M | -6.34M | 0 |
| Net Change in Cash | 42.98M | 25.92M | -212.02M | 265.72M | 96.27M | 24.79M | -60.13M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 488.16M | 257M | 469.02M | 203.29M | 107.03M | 82.24M | 142.36M |
| Cash at End | 213.51M | 282.92M | 257M | 469.02M | 203.29M | 107.03M | 82.24M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -302.58M | 924.03M | 221.8M | 708.36M | -295.28M | -2.62B | 58.45M |
| FCF Growth % | -315.81% | 316.61% | -68.69% | 339.89% | 88.73% | -4581.73% | - |
Quick answers to the most common questions about buying OTF stock.
Blue Owl Technology Finance Corp. (OTF) generated $924.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Blue Owl Technology Finance Corp. (OTF) generated $924.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Blue Owl Technology Finance Corp. (OTF) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Blue Owl Technology Finance Corp. (OTF) returned $393.7M to shareholders via cash dividends and spent $73.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Provision volatility and NII swings
Metrics are mathematically derived from official filings.
Earnings Retention Under Pressure
According to reported financials, OTF's operating cash flow turned deeply negative in 2026Q2 at -$452.6M, versus net income of $138.6M, indicating that earnings are not translating into cash generation.
The negative OCF/NI ratio of -3.26 in 2026Q2 suggests that net income is being offset by significant cash outflows, likely from investment purchases and loan originations. This may indicate that the company is funding growth through external sources rather than internal capital generation, which could strain regulatory capital ratios over time.
Investment Portfolio Cash Burn
Investment purchases surged to $784.6M in 2026Q2, while sales proceeds were negative at -$1.1B, resulting in a net cash outflow of approximately $1.9B, as per SEC filings.
The heavy investment activity, with purchases exceeding sales, suggests an aggressive deployment of capital into new investments. However, the negative sale proceeds in 2026Q2 and 2025Q4 may indicate losses on sales or a lack of liquidity in the portfolio. This pattern could signal a shift towards longer-duration assets, potentially increasing interest rate risk.
Loan Growth Outpaces Cash Flows
Operating cash flow was negative in three of the last five quarters, with 2026Q2 at -$452.6M, while loan loss provisions were negative, suggesting credit recoveries that may not be sustainable, based on reported figures.
The negative operating cash flows, despite positive net income in some quarters, indicate that loan originations are consuming cash faster than repayments and income are generating it. The negative loan loss provisions in 2026Q1 and 2026Q2 may reflect recoveries, but they also raise questions about the quality of the loan book and the potential for future charge-offs.
Dividend Sustainability Questioned
Dividends paid totaled $84.2M in 2026Q2, down from $167.2M in 2026Q1, but still exceeding operating cash flow, which was negative, as reported in financial statements.
The company continued to pay dividends despite negative operating cash flows, relying on external financing or cash reserves. This may indicate a commitment to shareholder returns, but it also raises concerns about the sustainability of the dividend if cash generation does not improve. The reduction in dividends from 2026Q1 to 2026Q2 could be a response to cash flow pressures.
What Cash Flow Hides
The cash flow statement reveals that OTF's net income is heavily influenced by non-cash items, such as negative provisions, while actual cash generation is weak, as per reported data.
The divergence between net income and operating cash flow, particularly in 2026Q2, suggests that earnings quality may be low. The reliance on negative provisions and volatile non-interest income, as noted in prior analysis, may mask underlying operational challenges. Investors should monitor the sustainability of these non-cash adjustments and the potential for future credit losses.