Summary of Golub BDC Q3 2025 Earnings Report Core Viewpoint - Golub BDC (NASDAQ: GBDC) has released its earnings report for fiscal Q3 2025, highlighting both positive and negative aspects of its performance, leading to a revised outlook for the company based on new data available. Financial Performance - The earnings report indicates a mixed performance for Golub BDC, with specific financial metrics that may influence investor sentiment and future projections [1]. Investment Strategy - The focus on dividend investing is emphasized as a key strategy for achieving financial freedom, suggesting that Golub BDC's dividend policy plays a significant role in its attractiveness to investors [1]. Analyst Background - The analysis is conducted by a finance professional with extensive experience in M&A and business valuation, indicating a thorough understanding of the financial landscape and the company's position within it [1]. Sector Focus - The analyst's coverage includes various sectors such as technology, real estate, software, finance, and consumer staples, which are also reflected in the investment portfolio [1].

Core Viewpoint - Golub Capital BDC reported steady earnings in Q3 FY2025, with adjusted net investment income per share at $0.39, aligning with analyst expectations, while the investment portfolio reached $8.96 billion, indicating active capital management and portfolio expansion despite some caution on unrealized depreciation and risk ratings [1][4]. Company Overview and Key Focuses - Golub Capital BDC specializes in customized financing solutions for middle-market companies in the U.S., primarily offering loans to businesses sponsored by private equity firms, focusing on senior secured, "one-stop," and equity investments [2]. - The company's growth is driven by consistent access to proprietary deal flow, rigorous underwriting and risk management, and strong relationships with private equity sponsors, supported by its affiliation with the broader Golub Capital platform [3]. Quarterly Highlights and Business Trends - The investment portfolio at fair value was $8.96 billion, with the number of portfolio companies increasing to 401. "One-stop" loans accounted for 86.9% of total assets, with $486.9 million committed in new loans [4]. - Non-GAAP adjusted net investment income per share matched analyst projections, while GAAP net income per share rose to $0.34 from $0.30 in the previous quarter, driven by higher interest and dividend income [5]. Shareholder Returns - Golub Capital BDC maintained a quarterly dividend of $0.39 per share, with the board declaring this distribution payable on September 29, 2025. The company also repurchased approximately 2.4 million shares for about $34.3 million [6]. Risk Metrics - Net asset value per share was $15.00, with a GAAP leverage ratio of 1.30x, slightly up from earlier in the year. Portfolio risk ratings showed a small increase in assets rated "below expectation," with the proportion rising from 8.9% to 9.0%, alongside unrealized depreciation of $15.0 million [7]. Outlook and Future Considerations - Management did not provide numeric guidance for future earnings or revenue but emphasized maintaining strong liquidity, disciplined origination, and continued shareholder returns through dividends and share buybacks [8]. - Future performance may depend on the company's ability to maintain disciplined underwriting, access high-quality deal flow, and manage risk-rated assets effectively, with investors monitoring trends in portfolio growth and risk metrics [9].

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) per share was $0.39, corresponding to a return on equity of 10.4% [5] - Adjusted net income per share was $0.34, with a return on equity of 9.1% [5] - The internal rate of return for GBDC shareholders since IPO is 9.6% over fifteen years [5] - Net asset value (NAV) per share decreased by $0.04 to $15 due to net unrealized losses [11][14] - Net debt to equity increased modestly to 1.26 turns, with average net leverage at 1.21 turns [12][20] Business Line Data and Key Metrics Changes - Investment portfolio grew by 4% quarter over quarter, reaching just under $9 billion at fair value [10] - New investment commitments totaled $557 million, with $411 million funded and $306 million in repayments [10] - Investments on nonaccrual status remained low at 60 basis points of the total investment portfolio [8][14] - The weighted average rate on new investments was 9.2%, while repaid investments had a rate of 9.8% [14] Market Data and Key Metrics Changes - The investment income yield was 10.6%, a sequential decline of 20 basis points [9][15] - The cost of debt decreased to 5.7%, reflecting a floating rate debt funding structure [15][20] - Nearly 90% of the investment portfolio remains in the highest performing internal rating categories [7][17] Company Strategy and Development Direction - GBDC focuses on providing first lien senior secured loans to middle market companies backed by strong private equity sponsors [4] - The company remains selective in underwriting, closing on just 3.1% of deals reviewed [10] - GBDC aims to minimize realized credit losses and proactively address borrower underperformance [32] Management's Comments on Operating Environment and Future Outlook - The management expects a protracted credit cycle to continue, with elevated default rates likely persisting [24][29] - There is optimism regarding the M&A environment improving slowly in the remainder of the year and more quickly next year [30][31] - Management emphasizes the importance of humility in forecasting due to the unpredictable nature of the current economic environment [22][32] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.4% [12] - The liquidity position remains strong, with approximately $950 million available from unrestricted cash and undrawn commitments [20] Q&A Session Summary Question: Is it fair to say that you're expecting a significant wave of repayments to eventually lever down? - Management indicated that while there are some repayments in the pipeline, they do not anticipate significant deleveraging or further leveraging [35][36] Question: Do you think the lag time between liquid loan markets and BDC will remain the same? - Management acknowledged that private credit spreads are stickier, especially in the middle market, but significant spread compression has been observed in the broader market [41][42]

Financial Data and Key Metrics Changes - GBDC reported adjusted net investment income (NII) per share of $0.39, corresponding to a return on equity of 10.4% [4] - Adjusted net income per share was $0.34, with a return on equity of 9.1% [4] - The internal rate of return for GBDC shareholders since IPO is 9.6% over fifteen years [4] - The net asset value (NAV) per share decreased by $0.04 to $15, primarily due to net unrealized losses [10][12] Business Line Data and Key Metrics Changes - GBDC's investment portfolio grew by 4% quarter over quarter, reaching just under $9 billion at fair value [9] - New investment commitments totaled $557 million, with $411 million funded during the quarter [9] - The weighted average rate on new investments was 9.2%, while repaid investments had a weighted average rate of 9.8% [13] Market Data and Key Metrics Changes - GBDC's investment income yield was 10.6%, a sequential decline of about 20 basis points [7][16] - Nonaccrual investments remained low at 60 basis points of the total investment portfolio at fair value, below the industry average [7][18] - The median EBITDA for new originations was $79 million, indicating a focus on resilient middle-market companies [10] Company Strategy and Development Direction - GBDC's investment strategy focuses on providing first lien senior secured loans to middle-market companies backed by strong private equity sponsors [3] - The company remains selective in underwriting, closing on just 3.1% of deals reviewed, with a weighted average loan-to-value (LTV) of approximately 34% [9] - GBDC aims to minimize realized credit losses and proactively address borrower underperformance [34] Management's Comments on Operating Environment and Future Outlook - Management expects a protracted credit cycle to continue, with elevated default rates across public and private credit markets [25][30] - The M&A environment is anticipated to improve slowly in the remainder of the year and more quickly next year, despite ongoing tariff uncertainties [32] - Management emphasizes the importance of maintaining a humble approach to forecasting in the current unpredictable environment [24] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.4% based on NAV [11] - GBDC's liquidity position remains strong, ending the quarter with approximately $950 million in liquidity [21] Q&A Session Summary Question: Regarding leverage, is it fair to say that you're expecting a significant wave of repayments to eventually lever down? - Management acknowledged that while there are some repayments in the pipeline, they do not anticipate significant deleveraging or further leveraging [37][38] Question: With spreads across floating rate markets being tight, do you think the lag time between liquid loan markets and BDC will remain the same? - Management confirmed that there has been significant spread compression in the broadly syndicated market, and while private credit spreads are stickier, they are not immune to these trends [42][43]

Financial Performance - The adjusted net investment income per share remained solid at $0.39, resulting in an adjusted NII ROE of 10.4%[10] - Adjusted earnings per share were $0.34, yielding an adjusted ROE of 9.1%[10] - The company declared a quarterly base distribution of $0.39 per share for FY 2025 Q3, with a distribution coverage of approximately 100%[10] - As of June 30, 2025, the dividend yield was 10.4% based on the NAV[10] Portfolio and Credit Quality - The investment portfolio modestly increased to $9.0 billion at fair value, with $305.8 million in exits/sales and $556.8 million in new investment commitments (of which $410.8 million were funded at close)[10] - Net funds increased by $340.3 million, representing a 4% increase in portfolio size from March 31, 2025[10] - Approximately 90% of the total investment portfolio had internal performance ratings of '4' or '5'[10, 40] - Non-accrual investments remained low, accounting for 0.6% of total investments at fair value[10, 40] Balance Sheet and Liquidity - The net asset value was $15.00 per share, a decrease of $0.04 per share from $15.04 as of March 31, 2025[10] - The company repurchased approximately 2.4 million shares of its common stock at an aggregate price of $13.99 per share[10] - The GAAP debt-to-equity ratio, net increased to 1.26x, with an average of 1.21x for the quarter; 42% of debt funding is unsecured debt, and 82% is floating rate debt funding[10] - The weighted average cost of debt was 5.7%[10] - Total available liquidity amounted to $947.1 million[10]

Earnings Performance - Golub Capital BDC reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.38 per share, but down from $0.48 per share a year ago, representing an earnings surprise of +2.63% [1] - The company posted revenues of $218.34 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.39%, compared to $171.27 million in the same quarter last year [2] Stock Performance and Outlook - Golub Capital BDC shares have declined approximately 2.9% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.38 for the upcoming quarter and $1.52 for the current fiscal year [4][7] Industry Context - The Financial - SBIC & Commercial Industry, to which Golub Capital BDC belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, indicating potential challenges ahead [8] - CION Investment Corporation, another company in the same industry, is expected to report a quarterly earnings decline of -20.9% year-over-year, with revenues anticipated to drop by 11.9% [9][10]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Golub Capital BDC, Inc. for the period ended June 30, 2025, including statements of financial condition, operations, changes in net assets, cash flows, and a detailed schedule of investments [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets increased to $9.24 billion from $8.70 billion, with total liabilities rising to $5.24 billion from $4.69 billion, resulting in a slight decrease in total net assets to $3.995 billion and a decline in NAV per share to $15.00 Consolidated Statements of Financial Condition (in thousands) | Metric | June 30, 2025 (unaudited) | September 30, 2024 | | :--- | :--- | :--- | | **Total Investments, at fair value** | **$8,961,549** | **$8,235,411** | | **Total Assets** | **$9,236,513** | **$8,703,756** | | **Total Liabilities** | **$5,241,184** | **$4,689,227** | | **Total Net Assets** | **$3,995,329** | **$4,014,529** | | **Net asset value per common share** | **$15.00** | **$15.19** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, total investment income was $218.3 million, with a net increase in net assets of $90.1 million, while the nine-month period saw total investment income of $652.9 million and a net increase in net assets of $280.4 million Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total investment income | $218,344 | $171,271 | | Net expenses | $117,082 | $78,424 | | Net investment income - after tax | $101,262 | $92,722 | | Net increase in net assets from operations | $90,058 | $9,252 | | Basic and diluted earnings per common share | $0.34 | $0.05 | Nine Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total investment income | $652,936 | $500,271 | | Net expenses | $356,897 | $236,286 | | Net investment income - after tax | $296,514 | $262,790 | | Net increase in net assets from operations | $280,356 | $178,586 | | Basic and diluted earnings per common share | $1.05 | $0.99 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) For the nine months ended June 30, 2025, total net assets decreased by $19.2 million, as the $280.4 million net increase from operations was offset by $335.2 million in distributions and net decreases from stock repurchases and issuances - Net assets decreased from **$4.01 billion** at September 30, 2024, to **$3.99 billion** at June 30, 2025[14](index=14&type=chunk) - Key changes for the nine months ended June 30, 2025, include a **$280.4 million** net increase from operations, offset by **$335.2 million** in distributions and **$35.5 million** in common stock repurchases[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended June 30, 2025, the company experienced a net cash outflow of $179.0 million, with operating activities using $379.7 million primarily for new investments, while financing activities provided $200.7 million from net borrowings Cash Flow Summary - Nine Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($379,713) | $543,942 | | Net cash provided by (used in) financing activities | $200,724 | ($217,913) | | Net change in cash and equivalents | ($178,989) | $326,029 | [Consolidated Schedules of Investments](index=9&type=section&id=Consolidated%20Schedules%20of%20Investments) As of June 30, 2025, the investment portfolio had a fair value of $8.96 billion, primarily in one-stop and senior secured loans across various industries, with a detailed breakdown provided for each investment Total Investments by Type (in thousands) | Investment Type | Fair Value as of June 30, 2025 | Fair Value as of Sept 30, 2024 | | :--- | :--- | :--- | | Senior secured | $480,592 | $502,386 | | One stop | $7,785,066 | $7,110,258 | | Second lien | $28,625 | $14,054 | | Subordinated debt | $37,419 | $30,175 | | Equity | $629,847 | $578,538 | | **Total** | **$8,961,549** | **$8,235,411** | Top 5 Industry Concentrations by Fair Value (as of June 30, 2025) | Industry | Fair Value (in thousands) | % of Total | | :--- | :--- | :--- | | Software | $2,374,281 | 26.5% | | Healthcare Providers & Services | $675,526 | 7.5% | | Insurance | $534,375 | 6.0% | | Specialty Retail | $435,905 | 4.9% | | Automobiles | $414,744 | 4.6% | [Notes to Consolidated Financial Statements](index=100&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details significant accounting policies and provides context on financial statements, including the GBDC 3 Merger, reduced incentive fees, specifics on debt facilities and securitizations, and details on stock repurchase and equity offerings - On June 3, 2024, the company completed its acquisition of Golub Capital BDC 3, Inc. ("GBDC 3 Merger")[228](index=228&type=chunk) - Effective June 3, 2024, the Investment Advisory Agreement was amended, reducing incentive fee rates from **20.0% to 15.0%** and the incentive fee cap from **20.0% to 15.0%**[280](index=280&type=chunk) - The company utilizes multiple borrowing facilities, including a **$2.0 billion** JPM Credit Facility, a **$300 million** Adviser Revolver, and several debt securitizations, with some older securitizations redeemed during the period[359](index=359&type=chunk)[366](index=366&type=chunk)[393](index=393&type=chunk) - For the nine months ended June 30, 2025, the company repurchased **2.5 million shares** for **$35.5 million** under its share repurchase program and issued **2.4 million shares** for **$38.0 million** under its ATM Program[437](index=437&type=chunk)[439](index=439&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=149&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting increased investment income driven by the GBDC 3 acquisition, portfolio composition, investment activity, expenses, and liquidity, noting a debt-to-equity ratio of 1.30x within the target range [Overview](index=152&type=section&id=Overview) GBDC's investment objective is to generate current income and capital appreciation by investing primarily in one-stop and senior secured loans to U.S. middle-market companies, with a $9.0 billion portfolio across 401 companies as of June 30, 2025 - The company's investment strategy focuses on one-stop and senior secured loans to U.S. middle-market companies, often sponsored by private equity firms[452](index=452&type=chunk) Portfolio Composition by Fair Value | Investment Type | As of June 30, 2025 | As of Sept 30, 2024 | | :--- | :--- | :--- | | Senior secured | 5.4% | 6.1% | | One stop | 86.9% | 86.3% | | Second lien | 0.3% | 0.2% | | Subordinated debt | 0.4% | 0.4% | | Equity | 7.0% | 7.0% | | **Total** | **100.0%** | **100.0%** | [Consolidated Results of Operations](index=158&type=section&id=Consolidated%20Results%20of%20Operations) For the quarter ended June 30, 2025, total investment income was $218.3 million and net income was $90.1 million, with the nine-month period showing a $152.7 million increase in investment income due to the GBDC 3 acquisition, alongside higher net expenses from increased debt and management fees - Investment income for the nine months ended June 30, 2025, increased by **$152.7 million** year-over-year, mainly due to the GBDC 3 acquisition which expanded the average earning debt investments balance by **$2.8 billion**[486](index=486&type=chunk) - Net expenses for the nine months ended June 30, 2025, increased by **$120.6 million** year-over-year, driven by higher interest expense on increased average debt and a larger base management fee[491](index=491&type=chunk) - For the nine months ended June 30, 2025, net realized losses were **$38.9 million**, and net unrealized appreciation was **$22.4 million**[505](index=505&type=chunk)[506](index=506&type=chunk) [Liquidity and Capital Resources](index=165&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had $91.9 million in cash and $547.3 million available under its JPM Credit Facility, with a GAAP debt-to-equity ratio of 1.30x, while actively managing debt securitizations and equity programs - As of June 30, 2025, the company's asset coverage ratio was **176.8%**, and its GAAP debt-to-equity ratio was **1.30x**[540](index=540&type=chunk) - The company had **$547.3 million** of availability on its JPM Credit Facility and **$300.0 million** on its Adviser Revolver as of June 30, 2025[518](index=518&type=chunk)[519](index=519&type=chunk) - Outstanding commitments to fund investments totaled **$996.1 million** as of June 30, 2025[542](index=542&type=chunk) [Portfolio Composition, Investment Activity and Yield](index=169&type=section&id=Portfolio%20Composition,%20Investment%20Activity%20and%20Yield) The investment portfolio grew to $9.0 billion at fair value across 401 companies, with new commitments of $556.8 million for the quarter, a weighted average income yield of 9.8%, and strong portfolio quality with non-accrual investments decreasing to 0.6% Internal Performance Ratings (at Fair Value) | Rating | As of June 30, 2025 | As of Sept 30, 2024 | | :--- | :--- | :--- | | 5 (Least Risk) | 2.9% | 1.9% | | 4 (As Expected) | 86.8% | 85.2% | | 3 (Below Expectations) | 9.0% | 11.6% | | 2 (Materially Below) | 1.3% | 1.3% | | 1 (Substantially Below) | 0.0% | 0.0% | - Non-accrual investments as a percentage of total investments at fair value decreased to **0.6%** as of June 30, 2025, from **1.1%** as of September 30, 2024[549](index=549&type=chunk) - The weighted average income yield of total investments for the quarter ended June 30, 2025, was **9.8%**[459](index=459&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=179&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is primarily exposed to valuation risk for Level 3 investments and interest rate risk, with a hypothetical 100 basis point increase in base rates estimated to increase annual net investment income by $41.8 million Interest Rate Sensitivity Analysis (Annualized Impact, in thousands) | Change in Interest Rates | Net Increase (Decrease) in Investment Income | | :--- | :--- | | Down 200 basis points | ($81,623) | | Down 100 basis points | ($41,784) | | Up 100 basis points | $41,820 | | Up 200 basis points | $83,640 | - As of June 30, 2025, **97.8%** of the company's debt portfolio at fair value had interest rate floors, providing partial insulation from falling rates[550](index=550&type=chunk) [Controls and Procedures](index=181&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[596](index=596&type=chunk) - No material changes in internal controls over financial reporting occurred during the quarter[597](index=597&type=chunk) [Part II. Other Information](index=182&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=182&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently subject to any material legal proceedings - The company is not currently subject to any material legal proceedings[598](index=598&type=chunk) [Risk Factors](index=182&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended September 30, 2024 - No material changes to risk factors were reported for the nine months ended June 30, 2025[599](index=599&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=182&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[600](index=600&type=chunk) [Defaults Upon Senior Securities](index=182&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities - None[601](index=601&type=chunk) [Other Information](index=182&type=section&id=Item%205.%20Other%20Information) The company reported no other information for the period and stated that no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter - None of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the fiscal quarter ended June 30, 2025[604](index=604&type=chunk) [Exhibits](index=183&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amended bylaws, credit agreements, officer certifications, and XBRL data files - Exhibits filed include amendments to the Senior Secured Revolving Credit Agreement, the Equity Distribution Agreement, and the Revolving Loan Agreement with GC Advisors LLC[606](index=606&type=chunk)

[Filing Information](index=1&type=section&id=Filing%20Information) This section provides fundamental company and filing details, including registrant information, report type, and securities registration status [General Company and Filing Details](index=1&type=section&id=General%20Company%20and%20Filing%20Details) This section provides the foundational details of the Form 8-K filing, identifying the registrant, the type of report, and the date of the earliest event reported - Registrant: **Golub Capital BDC, Inc.**[1](index=1&type=chunk) - Filing Type: **Form 8-K**, Current Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934[1](index=1&type=chunk) - Date of Report (earliest event reported): **July 7, 2025**[1](index=1&type=chunk) [Securities Registration and Status](index=1&type=section&id=Securities%20Registration%20and%20Status) This part details the company's registered securities and clarifies its status regarding emerging growth company classification | Title of each class | Trading Symbol | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock, par value $0.001 per share | GBDC | The Nasdaq Global Select Market | - The registrant is **not an emerging growth company**[3](index=3&type=chunk) [Current Report Items](index=3&type=section&id=Current%20Report%20Items) This section details the company's financial results announcement and lists the exhibits included in the current report [Item 2.02. Results of Operations and Financial Condition](index=3&type=section&id=Item%202.02.%20Results%20of%20Operations%20and%20Financial%20Condition) This section announces the upcoming release date for Golub Capital BDC, Inc.'s financial results for the quarter ended June 30, 2025, and specifies the legal treatment of the information furnished in this report - Golub Capital BDC, Inc. will release its financial results for the quarter ended **June 30, 2025**, on **Monday, August 4, 2025**, after the close of financial markets[4](index=4&type=chunk) - The information in Item 2.02, including Exhibit 99.1, is furnished and **not deemed 'filed'** for purposes of Section 18 of the Securities Exchange Act of 1934, nor incorporated by reference into other filings unless expressly stated[5](index=5&type=chunk) [Item 9.01. Financial Statements and Exhibits](index=3&type=section&id=Item%209.01.%20Financial%20Statements%20and%20Exhibits) This item lists the exhibits included as part of this Form 8-K filing - Exhibits include:[6](index=6&type=chunk) - **99.1**: Press release of Golub Capital BDC, Inc., dated July 7, 2025[6](index=6&type=chunk) - **104**: Cover Page Interactive Data File (embedded within the Inline XBRL document)[6](index=6&type=chunk) [Signatures](index=4&type=section&id=SIGNATURES) This section confirms the official authorization and signing of the Form 8-K report by an authorized officer [Report Authorization](index=4&type=section&id=Report%20Authorization) This section confirms the official authorization and signing of the Form 8-K report by an authorized officer of Golub Capital BDC, Inc. - The report was signed on behalf of Golub Capital BDC, Inc. pursuant to the requirements of the Securities Exchange Act of 1934[8](index=8&type=chunk) - Signatory: **Christopher C. Ericson**, Chief Financial Officer[10](index=10&type=chunk) - Date of Signature: **July 7, 2025**[10](index=10&type=chunk)

Core Viewpoint - The stock classification of Golub Capital BDC (NASDAQ: GBDC) has been changed from 'Buy' to 'Hold' due to a concerning rise in its dividend pay-out ratio above 120% [1] Summary by Relevant Sections - **Dividend Pay-out Ratio**: The company has experienced a significant increase in its dividend pay-out ratio, which now exceeds 120%, indicating potential financial strain [1] - **Investment Perspective**: The article reflects a cautious stance on GBDC, suggesting that the current financial metrics warrant a more conservative investment approach [1] - **Research Focus**: The analysis emphasizes the importance of monitoring financial health indicators such as dividend sustainability in assessing investment opportunities [1]

Core Insights - Golub Capital BDC (NASDAQ: GBDC) reported a solid quarterly performance with a total NAV return of 2% [1] - The company offers an attractive dividend yield of 11%, maintaining the same adjusted NII yield [1] Company Performance - The latest quarterly results indicate consistent performance in generating returns for investors [1] - The total NAV return of 2% reflects the company's ability to manage its investments effectively [1] Investment Appeal - The 11% dividend yield positions Golub Capital BDC as a compelling option for income-focused investors [1]