Oaktree Specialty Lending Corp's stock plummeted 5.27% in pre-market trading on Tuesday following the release of weaker-than-expected second fiscal quarter financial results.

The specialty finance company reported an adjusted loss of $0.22 per share for the quarter ended March 31, 2026, with total investment income declining to $70.4 million from $75.1 million in the prior quarter. Net investment income fell to $34.4 million from $36.7 million, while net asset value per share dropped to $15.69 from $16.30 at December 31, 2025.

Company management attributed the declines to lower reference rates, reduced non-recurring income, and realized and unrealized depreciation on certain debt and equity investments. The disappointing quarterly performance prompted significant selling pressure in pre-market activity.