Revenue volatility remains elevated, with the firm reporting a $426.6 million top-line figure in 2026Q1 alongside a net margin contraction to -51.5%.
| Sales/Revenue | 1.35B | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 1.05B | 779.34M | 353.46M | 401.24M | 49.98M | 452.55M | 136.07M |
| Gross Margin % | 77.3% | 72.64% | 65.83% | 68.3% | 28.37% | 84.27% | 79.92% |
| Gross Profit Growth % | - | 120.49% | -11.91% | 702.89% | -88.96% | 232.59% | - |
| Operating Expenses | 436.77M | 50.78M | 22.77M | 22.98M | 23.11M | 22.82M | 13.95M |
| OpEx % of Revenue | - | 4.73% | 4.24% | 3.91% | 13.12% | 4.25% | 8.19% |
| Selling, General & Admin | 18.33M | 23.72M | 13.51M | 13.64M | 12.76M | 13.5M | 9.17M |
| SG&A % of Revenue | - | 2.21% | 2.52% | 2.32% | 7.24% | 2.51% | 5.39% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 608.53M | 728.56M | 330.69M | 378.27M | 26.87M | 429.73M | 122.12M |
| Operating Margin % | 45% | 67.91% | 61.59% | 64.39% | 15.25% | 80.02% | 71.72% |
| Operating Income Growth % | - | 120.31% | -12.58% | 1307.93% | -93.75% | 251.9% | - |
| EBITDA | 687.99M | 728.56M | 514.17M | 564.46M | 153.04M | 514.23M | 156.31M |
| EBITDA Margin % | 50.88% | 67.91% | 95.76% | 96.09% | 86.88% | 95.75% | 91.81% |
| EBITDA Growth % | 36.77% | 41.7% | -8.91% | 268.84% | -70.24% | 228.97% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 687.99M | 728.56M | 514.17M | 564.46M | 153.04M | 514.23M | 156.31M |
| Net Interest Income | 909.21M | 803.02M | 445.06M | 454.4M | 331.74M | 249.23M | 135.92M |
| Interest Income | 1.29B | 1.12B | 628.54M | 640.59M | 457.91M | 333.73M | 170.12M |
| Interest Expense | 377.61M | 321.49M | 183.48M | 186.19M | 126.17M | 84.5M | 34.2M |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 425.15M | 728.56M | 330.69M | 378.27M | 26.87M | 429.73M | 122.12M |
| Pretax Margin % | 31.44% | 67.91% | 61.59% | 64.39% | 15.25% | 80.02% | 71.72% |
| Income Tax | 2.81M | 8.19M | 11.47M | 9.13M | 7.87M | 4.92M | 0 |
| Effective Tax Rate % | 0.66% | 1.12% | 3.47% | 2.41% | 29.28% | 1.15% | 0% |
| Net Income | 422.35M | 720.37M | 319.23M | 369.14M | 19M | 424.81M | 122.12M |
| Net Margin % | 31.23% | 67.14% | 59.45% | 62.84% | 10.79% | 79.1% | 71.72% |
| Net Income Growth % | 37.8% | 125.66% | -13.52% | 1842.94% | -95.53% | 247.87% | - |
| Net Income (Continuing) | 422.35M | 720.37M | 319.23M | 369.14M | 19M | 424.81M | 122.12M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.91 | 1.76 | 1.52 | 1.80 | 0.09 | 3.05 | 0.61 |
| EPS Growth % | 31.65% | 15.79% | -15.56% | 1900% | -97.05% | 400% | - |
| EPS (Basic) | - | 1.76 | 1.52 | 1.80 | 0.09 | 3.05 | 0.61 |
| Diluted Shares Outstanding | 464.27M | 409.42M | 209.77M | 205.01M | 201.37M | 201.37M | 201.37M |
| Basic Shares Outstanding | 464.27M | 409.42M | 209.77M | 205.01M | 201.37M | 201.37M | 201.37M |
| Dividend Payout Ratio | - | 54.66% | - | 56.55% | 717.52% | 19.6% | 40.38% |
Portfolio Credit Quality Volatility
As indicated by the quarterly income statement data, OTF experienced a significant revenue surge to $426.6M in 2026Q1, yet this follows a period of inconsistent top-line performance, suggesting that the firm's growth trajectory is currently driven by lumpy capital deployment rather than steady, organic portfolio expansion.
The sharp revenue increase in the most recent quarter appears to be an outlier compared to the 2025 fiscal year, where revenue fluctuated between $138M and $320M. Investors should monitor whether this recent spike represents a sustainable shift in the firm's earning power or merely a temporary acceleration in deal-closing activity.
Based on the provided financial statements, OTF's gross margin profile has shown notable instability, dropping from historical levels near 73% to a volatile range that suggests potential pressure on the underlying yield of the debt portfolio or increased costs associated with maintaining the investment book.
While the 2026Q1 gross margin of 89.9% appears strong, the historical inconsistency—including a low of 25.9% in 2024Q2—indicates that the firm's profitability is highly sensitive to the timing of interest recognition and potential asset impairments. This variability suggests that the firm's pricing power may be less resilient than that of more diversified BDC peers.
According to the reported income statement, OTF's net income swung from a $234.9M profit in 2025Q3 to a $219.9M loss in 2026Q1, highlighting a significant lack of earnings predictability that may be tied to fair value adjustments of Level 3 assets within the technology-focused portfolio.
The transition to a net loss in the most recent quarter suggests that the firm's earnings quality is heavily influenced by non-operating items and mark-to-market volatility. Analysts should investigate whether these swings are indicative of underlying credit deterioration or simply the accounting reality of a concentrated, high-beta technology lending strategy.
Financial data reveals that OTF's recent operational results are characterized by extreme swings in profitability, with the 2026Q1 net loss of $219.9M casting doubt on the sustainability of the firm's business model during periods of heightened market stress or potential credit cycle downturns.
Short-term observers might focus on the firm's inability to maintain consistent positive net income, which may suggest that the current underwriting standards are not sufficiently insulating the firm from sector-specific shocks. The lack of a clear, stable earnings floor warrants further investigation into the firm's long-term viability as a reliable income-generating vehicle.
Quick answers to the most common questions about buying OTF stock.
Blue Owl Technology Finance Corp. (OTF) is profitable, generating $720.4M in net income for the fiscal year ending 2025 with a net profit margin of 67.1%.
Blue Owl Technology Finance Corp. (OTF) reported an operating income of $728.6M, resulting in an operating profit margin of 67.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Blue Owl Technology Finance Corp. (OTF) generated $779.3M in gross profit for the year, representing a gross profit margin of 72.6%. This demonstrates the company's core pricing power and production efficiency.