Net interest income collapsed from $246.3M in 2025Q4 to zero in 2026Q2, while the efficiency ratio spiked to 116.8% in 2026Q1, indicating severe margin compression and operational strain.
Blue Owl Technology Finance Corp. (OTF) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Net Interest Income | 698.42M | 803.02M | 445.06M | 454.4M | 331.74M | 249.23M | 135.92M |
| NII Growth % | 232.27% | 80.43% | -2.06% | 36.97% | 33.11% | 83.36% | - |
| Net Interest Margin % | 4.64% | 5.46% | 6.62% | 6.83% | 4.98% | 3.96% | 4.3% |
| Interest Income | 1.27B | 1.12B | 628.54M | 640.59M | 457.91M | 333.73M | 170.12M |
| Interest Expense | 406.97M | 321.49M | 183.48M | 186.19M | 126.17M | 84.5M | 34.2M |
| Loan Loss Provision | -179.53M | -27.92M | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 103.95M | -51.6M | -91.6M | -53.15M | -281.77M | 203.32M | 144K |
| Non-Interest Income % | 12.96% | -6.87% | -25.91% | -13.25% | -563.82% | 44.93% | 0.11% |
| Total Net Revenue | 802.37M | 751.42M | 353.46M | 401.24M | 49.98M | 452.55M | 136.07M |
| Revenue Growth % | 47.45% | 112.59% | -11.91% | 702.89% | -88.96% | 232.59% | - |
| Non-Interest Expense | 621.98M | 50.78M | 22.77M | 22.98M | 23.11M | 22.82M | 13.95M |
| Efficiency Ratio | 77.52% | 6.76% | 6.44% | 5.73% | 46.24% | 5.04% | 10.25% |
| Operating Income | 406.85M | 728.56M | 330.69M | 378.27M | 26.87M | 429.73M | 122.12M |
| Operating Margin % | 50.71% | 96.96% | 93.56% | 94.27% | 53.76% | 94.96% | 89.75% |
| Operating Income Growth % | - | 120.31% | -12.58% | 1307.93% | -93.75% | 251.9% | - |
| Pretax Income | 362.54M | 728.56M | 330.69M | 378.27M | 26.87M | 429.73M | 122.12M |
| Pretax Margin % | 45.18% | 96.96% | 93.56% | 94.27% | 53.76% | 94.96% | 89.75% |
| Income Tax | 3.04M | 8.19M | 11.47M | 9.13M | 7.87M | 4.92M | 0 |
| Effective Tax Rate % | 0.84% | 1.12% | 3.47% | 2.41% | 29.28% | 1.15% | 0% |
| Net Income | 359.5M | 720.37M | 319.23M | 369.14M | 19M | 424.81M | 122.12M |
| Net Margin % | 44.81% | 95.87% | 90.31% | 92% | 38.02% | 93.87% | 89.75% |
| Net Income Growth % | -28.08% | 125.66% | -13.52% | 1842.94% | -95.53% | 247.87% | - |
| Net Income (Continuing) | 359.5M | 720.37M | 319.23M | 369.14M | 19M | 424.81M | 122.12M |
| EPS (Diluted) | 0.78 | 1.76 | 1.52 | 1.80 | 0.09 | 3.05 | 0.61 |
| EPS Growth % | -41.18% | 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 | 460.88M | 409.42M | 209.77M | 205.01M | 201.37M | 201.37M | 201.37M |
Quick answers to the most common questions about buying OTF stock.
For fiscal year 2025, Blue Owl Technology Finance Corp. (OTF) reported total revenue of $751.4M. This represents a 452.2% increase compared to $136.1M in 2020.
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.
Key Metrics
Top Statement Risk
Provision volatility and NII swings
Metrics are mathematically derived from official filings.
NII Growth Reverses Sharply
Net interest income swung from $246.3M in 2025Q4 to $218.9M in 2026Q1, an 11.1% decline, and further to zero in 2026Q2, according to reported financials.
The trajectory of net interest income (NII) shows a dramatic reversal after a period of robust growth, with the 2026Q2 figure dropping to zero, which may indicate a fundamental shift in the company's earning assets or a reclassification. The earlier growth, which saw NII rise from $108.0M in 2024Q4 to $246.3M in 2025Q4, appears to have been driven by portfolio expansion, but the recent collapse suggests that the momentum has stalled. Investors should monitor whether this is a one-time adjustment or the beginning of a sustained contraction in interest-earning assets.
NIM Compression Signals Pressure
Net interest margin fell from 1.7% in 2025Q4 to 1.5% in 2026Q1, and data for 2026Q2 is unavailable, indicating potential ongoing compression, as per financial statements.
The net interest margin (NIM) has been relatively stable around 1.6-1.7% through 2024-2025, but the drop to 1.5% in 2026Q1 suggests that asset yields are not keeping pace with funding costs. This compression, if sustained, could erode profitability, especially given the volatile non-interest income. The absence of NIM data for 2026Q2, coupled with zero NII, raises questions about the sustainability of the current earnings model.
Efficiency Ratio Spikes on Revenue Drop
The efficiency ratio deteriorated from 5.3% in 2025Q4 to 116.8% in 2026Q1, reflecting a sharp decline in revenue relative to expenses, based on reported figures.
The efficiency ratio, which measures non-interest expenses as a percentage of total revenue, has been exceptionally low historically, indicating strong operating leverage. However, the spike to 116.8% in 2026Q1, driven by a 27% drop in total revenue, suggests that the cost base is not flexible enough to absorb revenue shocks. This may indicate that the company's expense structure is becoming less efficient, and investors should watch for cost containment measures.
Provision Reversals Boost Earnings
Provision for loan losses was negative in 2026Q1 and 2026Q2, at -$60.6M and -$108.8M respectively, indicating credit recoveries that inflated net income, as per SEC filings.
The negative provisions in the first two quarters of 2026 suggest that the company is releasing reserves, which may be a sign of improving credit quality or a reduction in the loan portfolio. This release contributed significantly to net income in 2026Q2, but it is not a recurring source of earnings. Investors should be cautious about the sustainability of such reversals, as they may not reflect core operating performance.
Fee Income Volatility Masks Core Trends
Non-interest income swung from -$44.9M in 2025Q4 to $103.9M in 2026Q1, then to $43.2M in 2026Q2, showing extreme volatility, as reported in financial statements.
The non-interest income component is highly volatile, with large negative values in some quarters (e.g., -$97.3M in 2024Q2) and positive spikes in others. This volatility suggests that the company's fee income is not stable and may be driven by one-off items such as investment gains or losses. The reliance on such volatile income streams could pose risks to earnings predictability, and investors should assess the quality and recurrence of these fees.
2026Q1 Marks Earnings Inflection
The first quarter of 2026 saw a dramatic shift, with net income turning negative at -$219.9M, a stark contrast to the $205.8M profit in 2025Q4, based on reported data.
The transition from a profitable 2025 to a loss-making 2026Q1, followed by a recovery in 2026Q2, indicates a period of significant earnings instability. This inflection may be attributed to a combination of lower NII, volatile fee income, and provision reversals. The sharp swings in earnings per share, from $1.00 in 2025Q3 to -$0.47 in 2026Q1, highlight the challenges in forecasting the company's future performance. Investors should closely monitor the drivers of this volatility to assess the sustainability of earnings.
Earnings Quality Under Scrutiny
The reliance on negative provisions and volatile non-interest income may mask underlying weakness, as net interest income collapsed to zero in 2026Q2, per reported figures.
The sharp reversal in NII to zero in 2026Q2, combined with large provision reversals, suggests that reported earnings may not reflect sustainable core operations. The negative provisions, which boosted net income, could be a one-time benefit from reserve releases, and the extreme volatility in non-interest income raises questions about the stability of fee streams. Investors should consider whether the company's earnings power is deteriorating, as the positive net income in 2026Q2 appears heavily reliant on non-recurring items rather than recurring interest and fee income.