Oaktree Specialty Lending Corporation (OCSL) AI Stock Analysis

Oaktree Specialty Lending Corporation operates as a business development company focused on investing in middle-market companies through diverse debt financing structures. It specializes in bridge financing, first and second lien debt, unsecured and mezzanine loans, preferred equity, and management buyouts. The fund targets companies with enterprise values from $20 million to $150 million and EBITDA between $3 million and $50 million across sectors including healthcare, education services, manufacturing, retail, consumer goods, and technology. Typically investing between $5 million and $75 million per transaction, Oaktree acts as a lead investor underwriting transactions up to $100 million.

OCSL grew revenue from $248.3M in FY2021 to $299.7M in FY2025, reflecting a 5-year revenue CAGR of 41.8%, though results were volatile with revenue dipping to $39.1M in FY2022 before rebounding. Net income shifted from $237.3M in FY2021 to $33.9M in FY2025, bringing net margin to 11.3% and EPS to $1.76. In the latest quarter ended June 30, 2026, quarterly revenue fell 7.8% year-over-year, and quarterly earnings decreased 19.3%. Over the trailing twelve months, revenue reached $292.2M with diluted EPS of $0.48.

As of June 30, 2026, OCSL held $39.9M in cash and short-term investments against $1.44B in total debt, leading to net debt of $1.40B. The company closed the quarter with total assets of $2.86B, shareholders' equity of $1.38B, a current ratio of 3.92, and a debt-to-equity ratio of 1.04. Free cash flow stood at $142.4M in FY2025. During FY2025, capital allocation included $10.7M in share buybacks and $148.2M paid out in dividends.

OCSL trades at a trailing P/E of 24.1x, higher than the 12.1x median of its US-listed Financial Services peers. However, its forward P/E stands at 8.9x, below the peer group median of 10.8x. The stock trades at a price-to-book multiple of 0.8x and a price-to-sales multiple of 3.5x compared to the peer median of 3.2x. Over the past year, the stock returned 2.2%, lagging the 16.8% return for the S&P 500 (SPY), while its 5-year return of -5.4% trailed the SPY return of 83.0%.

OCSL pays a quarterly dividend with an annualized forward payout of $1.32 per share, yielding 11.41%. The company has paid consecutive dividends for 19 years and generated a 5-year annualized dividend growth rate of 6.8%. The dividend payout ratio stands at 94.2%, and the last ex-dividend date was September 15, 2026.

Wall Street coverage includes 6 Hold ratings, with 0 Buy and 0 Sell ratings. The mean price target is $12.50, representing an 8.0% upside over the last close of $11.57. For the fiscal year ending September 30, 2026, consensus estimates project revenue of $284.4M and EPS of $1.50, an earnings decline of 14.8%. The company has beaten EPS expectations in each of the last 4 quarters, with next earnings scheduled for November 17, 2026.

This page is an AI-written research summary of Oaktree Specialty Lending Corporation (OCSL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: OCSL income statement, OCSL balance sheet, OCSL key metrics, OCSL analyst forecast, OCSL chart. See the OCSL stock overview for the latest quote and news.