Executive Summary

Investment income rose sharply year over year to $107.5M, driven by portfolio growth to $6.10B fair value; however GAAP net income swung to a loss due to significant unrealized marks on equity holdings, producing EPS of $(0.18) for Q1 2022 .
NAV per share declined to $17.24 from $17.65 in Q4 2021, reflecting broader tech-equity valuation pressure despite solid net investment income generation .
Management reaffirmed dividend policy and estimated a Q1 dividend of $0.21–$0.27 per share for 200,556,380 shares; all debt investments were floating-rate and no investments were on non-accrual, underscoring credit quality resilience .
Prior quarter (Q4 2021) showed strong underlying trends: net investment income per share of $0.31, zero non-accruals, robust origination, and ~$1.02B net liquidity; the near-term narrative centers on deployment capacity and rate tailwinds versus mark-to-market headwinds in tech equity exposures .

What Went Well and What Went Wrong

What Went Well

“Continued strong portfolio company performance” and “No investments on non-accrual”; OTF has “not experienced any loss of original principal since inception,” highlighting credit quality and underwriting discipline .
New investment commitments of $1.1B and net fundings of $853M in Q4 2021 set up higher investment income entering Q1 2022; portfolio at fair value reached $6.1B across 92–96 companies, expanding earnings capacity .
100% of debt investments at floating rates (by fair value) positions NII to benefit from rising base rates, with weighted average yield of debt and income-producing securities at 8.0% at year-end .

What Went Wrong

NAV per share fell to $17.24 in Q1 2022 from $17.65 in Q4 2021, driven by unrealized losses in equity holdings; GAAP EPS turned negative to $(0.18) despite solid NII .
Material fair value declines in select equity/warrant positions (e.g., Toast warrants fell from $101.6M to $50.7M; Robinhood common declined from $42.9M to $32.6M), pressuring total returns and NAV .
Incentive fees related to unrealized gains were reversed ($10.1M), reflecting the impact of lower marks on the capital gains incentive accrual in Q1 2022 .

Financial Results

Metric	Q1 2021	Q4 2021	Q1 2022
Investment Income ($USD Millions)	$66.5	—	$107.5
Net Investment Income ($USD Millions)	$25.4	—	$65.3
Net Income ($USD Millions)	$68.3 (Net increase in net assets from ops)	—	$(35.3) (Net decrease in net assets from ops)
Net Income per Share (EPS) ($)	$0.66	$(0.17)	$(0.18)
NAV per Share ($)	—	$17.65	$17.24

Segment Mix (Fair Value, $USD Millions)	Dec 31, 2021	Mar 31, 2022
First-lien senior secured debt	$4,043.3	$3,987.2
Second-lien senior secured debt	$546.7	$541.9
Unsecured debt	$199.1	$209.0
Preferred equity	$801.7	$902.0
Common equity	$548.0	$458.2
Total investments at fair value	$6,138.9	$6,098.3

KPIs	Q2 2021	Q4 2021	Q1 2022
NAV per Share ($)	$16.25–$16.41 (estimate)	$17.65	$17.24
Portfolio FV ($USD Billions)	~$4.3	$6.1	$6.10
Portfolio Companies (#)	—	92	96
Non-accrual Investments	None	None	None
Floating-rate debt (% of debt FV)	—	—	100%
Estimated Dividend per Share ($)	$0.21–$0.27	$0.16	$0.21–$0.27
Net Liquidity ($USD Billions)	—	~$1.02	—

Notes: “Net income” figures reflect “Net Increase (Decrease) in Net Assets Resulting from Operations” as presented in the 10-Q .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q1 2022	Policy: 90% of estimated investment company taxable income (ICTI); if <6% of weighted average capital called since inception, pay additional net capital gains	$0.21–$0.27 per share, record date 3/31/2022; payable on or before 5/13/2022	Maintained policy; provided range

Earnings Call Themes & Trends

No Q1 2022 earnings call transcript for OTF was available in our document catalog or via web search; OTF operated as a private BDC in 2022 with limited public call materials. We therefore track themes using the prior two quarters’ filings and investor materials.

Topic	Previous Mentions (Q2 2021 and Q4 2021)	Current Period (Q1 2022)	Trend
Portfolio quality/non-accruals	No investments on non-accrual; portfolio up to ~$4.3B; debt-to-equity ~0.79x	No investments on non-accrual; 96 companies; 100% floating-rate debt	Stable to positive (quality maintained)
Deployment/origination	New investment commitments $1.1B; net fundings $853M in Q4 2021	Larger investment income ($107.5M) reflecting scale	Positive (supports higher NII)
Liquidity/funding	~$1.02B net liquidity; 57% funded debt unsecured; debt-to-equity 0.73x	Balance sheet shows $2.716B debt (net of costs); net assets $3.457B	Adequate liquidity; leverage manageable
Equity marks/market	Q4 2021 NAV down QoQ; net income per share $(0.17) due to marks	NAV $17.24; unrealized losses drove negative GAAP EPS $(0.18)	Continued mark-to-market pressure in tech equity
Dividend policy	Range-based per ICTI and capital gains in prior periods	Q1 estimate maintained $0.21–$0.27	Stable policy

Management Commentary

“Continued strong portfolio company performance” and “No investments on non-accrual.” “ORTF has not experienced any loss of original principal since inception.”
“New investment commitments of $1.1 billion and net fundings of $853 million” in Q4 2021, highlighting origination strength ahead of Q1 .
“Total portfolio at FV of $6.1 billion across 92 portfolio companies,” with “57% of funded debt capital in unsecured debt,” enabling over-collateralization of secured facilities .

Q&A Highlights

No public Q1 2022 earnings call transcript for OTF was found; therefore, no Q&A highlights are available from primary sources.

Estimates Context

Wall Street consensus estimates (S&P Global) for Q1 2022 EPS and Revenue were not retrievable due to an SPGI daily request limit error; comparison to estimates is therefore unavailable for this period.
If/when available, we would benchmark Investment Income (as revenue proxy) and EPS (GAAP net income per share) against consensus to identify beats/misses.

Key Takeaways for Investors

Investment income expanded significantly in Q1 2022 on portfolio scale ($107.5M vs. $66.5M YoY), demonstrating earnings capacity despite market volatility in tech .
The negative GAAP EPS stems from unrealized losses in equity/warrant holdings (e.g., Toast, Robinhood), not from credit underperformance; debt book remains strong with zero non-accruals and 100% floating-rate exposure, supporting future NII amid higher base rates .
NAV per share compressed to $17.24 from $17.65 in Q4 2021, consistent with broader tech valuation resets; monitor equity marks as a key driver of GAAP results versus steady NII .
Dividend policy was maintained with a Q1 estimate of $0.21–$0.27 per share; cash yield continuity rests on ICTI/NII generation rather than GAAP marks .
Deployment capacity and liquidity remain robust per Q4 2021 metrics, offering flexibility to lean into attractive risk-adjusted opportunities while maintaining conservative credit posture .
Near-term trading implication: narrative likely bifurcates between solid NII (rate tailwinds, floating-rate book) and mark-to-market noise in equity positions; medium-term thesis hinges on continued portfolio growth, disciplined underwriting, and stabilization/improvement in tech equity valuations .

Sources:

Q1 2022 10-Q financials and portfolio schedules .
Q1 2022 8-K 2.02 preliminary estimates (NAV range, dividend estimate, portfolio composition, non-accruals, floating-rate detail) .
Q2 2021 8-K 2.02 preliminary estimates (prior quarter context) .
Q4 2021 investor update (NII/share, NAV/share, originations, liquidity, non-accruals) .

Estimates disclaimer: S&P Global consensus data was unavailable due to an SPGI daily request limit error.

Blue Owl Technology Finance Corp. (OTF)·Q1 2022 Earnings Summary