Shares of Blue Owl Technology Finance Corp. dropped 6.9% following earnings, reflecting investor disappointment with margin compression and cautious outlook amid mark-to-market pressure on technology credit valuations.

• Adjusted net investment income per share declined to $0.29, pressured by lower base rates and tighter credit spreads.
• Portfolio mark-to-market write-downs accounted for over 80% of the valuation decline, driven by wider technology credit spreads rather than credit deterioration.
• Non-accruals remain minimal at 10 basis points, indicating stable credit quality despite market volatility.
• Weighted average loan-to-value rose from 34% to 40% due to declining portfolio valuations but remains within conservative levels.
• Elevated repayments subdued leverage growth, limiting potential earnings expansion this quarter.