[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)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): July 7, 2025 GOLUB CAPITAL BDC, INC. (Exact name of Registrant as Specified in Its Charter) Delaware 814-00794 27-2326940 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.) __ 200 Park Avenue, 25th Floor, New York, NY 10166_ _ (Address of Pri ...

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]

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% [6] - Adjusted net income per share was $0.30, with a return on equity of 8%, including $0.09 per share of adjusted net realized and unrealized losses [6][25] - Net asset value (NAV) per share decreased by $0.09 to $15.04, primarily due to net unrealized and realized losses [21][25] Business Line Data and Key Metrics Changes - Gross originations for the quarter were $298.9 million, with $159.5 million funded at close, reflecting a conservative approach to new investments [14] - The investment income yield remained robust at 10.8%, despite a sequential decline of about 40 basis points [12][29] - The weighted average spread on new originations increased by 30 basis points compared to previous quarters [16][26] Market Data and Key Metrics Changes - The company experienced a significant deceleration in deal activity, contrary to expectations of a strong M&A environment [54] - Nonaccrual investments increased slightly to 70 basis points of total investments at fair value, with the number of nonaccrual investments remaining at nine [17][31] Company Strategy and Development Direction - The investment strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [3][39] - The company aims to navigate uncertainty by selectively looking for new loans and focusing on early detection and intervention for underperforming borrowers [9][10] - The company believes its strategy positions it well against potential tariff impacts, as most borrowers are U.S.-centric businesses [39][40] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging macro environment marked by policy uncertainty and decreased consumer confidence [5][9] - The company remains cautious about new investment activity due to significant competition and unattractive deal conditions [54] - Management emphasized the importance of preparing for multiple scenarios and maintaining a resilient strategy [38][41] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.3% [20] - The company has a strong liquidity position with approximately $1.2 billion available from unrestricted cash and undrawn commitments [36] Q&A Session Summary Question: How should we think about the base payout going forward? - Management feels confident about the current dividend level despite spread and base rate compression, citing potential near-term levers to enhance earnings [46][47][51] Question: Are repayments trending low, and what is the focus on defending names? - Management observed a significant deceleration in deal activity and noted that private equity firms are holding longer in hopes of a better selling environment [54][56] Question: Should we expect a hit next quarter from the identified tariff risk names? - Management believes the situation is manageable and is actively working with borrowers to assess potential impacts [58][60] Question: What is the outlook for smaller companies in the portfolio? - Management indicated a focus on a broad range of EBITDA levels, with a preference for the core middle market where competitive dynamics are favorable [64][66] Question: Is there any thematic underpinning to the nonaccruals this quarter? - Management stated that the increase in nonaccruals was not influenced by tariffs and reflects general credit stress in the market [70]

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% [6] - Adjusted net income per share was $0.30, with a return on equity of 8%, including $0.09 per share of adjusted net realized and unrealized losses [6][20] - Net asset value (NAV) per share decreased by $0.09 to $15.04, primarily due to net unrealized and realized losses [20][24] - Debt to equity ratio remained stable at 1.16 times, with average net leverage at 1.17 times, within the targeted range [20][32] Business Line Data and Key Metrics Changes - Gross originations for the quarter were $298.9 million, with $159.5 million funded at close, reflecting a conservative approach to new investments [13] - The investment income yield was robust at 10.8%, despite a sequential decline of about 40 basis points [12][28] - The weighted average spread on new originations increased by 30 basis points compared to previous quarters [15][24] Market Data and Key Metrics Changes - The company experienced a challenging macro environment characterized by policy uncertainty and decreased consumer confidence [5][8] - The portfolio remains highly diversified, with 90% of investments in the highest performing internal rating categories [11][25] - Nonaccrual investments increased slightly to 70 basis points of total investments at fair value, with nine total nonaccrual investments [16][29] Company Strategy and Development Direction - The investment strategy focuses on providing first lien senior secured loans to resilient middle market companies backed by strong private equity sponsors [3][36] - The company aims to navigate uncertainty by selectively looking for new loans and focusing on early detection and intervention for underperforming borrowers [8][39] - The management emphasizes the importance of maintaining a resilient strategy and preparing for multiple economic scenarios [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted that previous macroeconomic predictions have often proven incorrect, emphasizing the need for resilience and adaptability [34][35] - The company believes its portfolio is relatively insulated from direct impacts of tariffs and trade-related issues due to the nature of its borrowers [36][37] - Management is actively monitoring the portfolio for tariff-related risks and engaging with sponsors to mitigate potential vulnerabilities [38][39] Other Important Information - Total distributions paid in the quarter were $0.39 per share, representing an annualized dividend yield of 10.3% based on NAV [19] - The company has a strong liquidity position with approximately $1.2 billion available from unrestricted cash and undrawn commitments [32] Q&A Session Summary Question: How should we think about the base payout going forward? - Management acknowledged the challenges of spread and base rate compression but expressed confidence in potential near-term levers to support the dividend [42][44] Question: Are repayments trending low, and what is the focus on defending names? - Management noted a significant deceleration in deal activity and emphasized a cautious approach to new investments while defending existing credits [50][51] Question: What is the status of the portfolio at risk for tariffs? - Management identified a small portion of the portfolio with potential exposure to tariffs but believes the impact will be manageable [55][66] Question: How is refinancing activity affecting the portfolio? - Management observed a shift from a borrower-friendly to a lender-friendly market, reducing concerns about significant refinancing activity in the near term [68][69] Question: Is there any noticeable trend in lender scale during recent market volatility? - Management indicated that the current environment plays to their strengths, with sponsors showing a preference for working with established lenders [70]

GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2025 Confidential | for discussion purposes only Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio companie ...

Perspective: "Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven, where neither moth nor rust destroys, and where thieves do not break in or steal; for where your treasure is, there your heart will be also ... For what will it profit a man if he gains the whole world and forfeits his soul?" ~ Jesus (Matthew 6:19-21; 16:26) Learn more Samuel Smith has a diverse background that includes being lea ...

分组1 - Golub Capital BDC reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.41 per share, and down from $0.51 per share a year ago, representing an earnings surprise of -4.88% [1] - The company posted revenues of $213.89 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.43%, compared to year-ago revenues of $164.23 million [2] - Golub Capital BDC shares have declined approximately 5.5% since the beginning of the year, while the S&P 500 has decreased by 3.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $222.97 million, and for the current fiscal year, it is $1.60 on revenues of $890.04 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 34% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Portfolio Overview - As of March 31, 2025, the total portfolio at fair value was $8,621.2 million, an increase from $8,235.4 million as of September 30, 2024[457]. - The company had debt and equity investments in 393 portfolio companies as of March 31, 2025, an increase from 381 companies as of September 30, 2024[459]. - As of March 31, 2025, the company had investments in 393 portfolio companies with a total fair value of $8.6 billion, up from $8.2 billion for 381 companies as of September 30, 2024[548]. - The portfolio median EBITDA for portfolio companies was $65.4 million as of March 31, 2025, compared to $63.7 million as of September 30, 2024[553]. Investment Performance - The weighted average annualized income yield for the three months ended March 31, 2025, was 10.5%, down from 10.9% for the previous quarter[460]. - The weighted average investment income yield for the six months ended March 31, 2025, was 11.0%, compared to 12.7% for the same period in the previous year[460]. - The total return based on average net asset value for the six months ended March 31, 2025, was 9.5%, compared to 13.2% for the same period in the previous year[460]. - Interest income for the three months ended March 31, 2025, decreased by $11.9 million to $188.15 million compared to $200.035 million for the three months ended December 31, 2024[481]. - Total investment income decreased by $6.8 million to $213.892 million for the three months ended March 31, 2025, compared to $220.7 million for the previous quarter[488]. - Investment income increased by $105.6 million to $434.592 million for the six months ended March 31, 2025, compared to $329 million for the same period in 2024[488]. Debt and Financing - The company amended its JPM Credit Facility on April 4, 2025, extending the maturity date to April 4, 2030, and allowing total commitments to increase to up to $3.0 billion[476]. - As of March 31, 2025, the company had outstanding debt under the JPM Credit Facility of $1,110.1 million, with remaining commitments and availability of $887.4 million[520]. - The company had outstanding debt under the 2024 Debt Securitization of $1,364.0 million as of March 31, 2025[524]. - Average debt outstanding increased by $64.4 million from $4.770 billion in Q4 2024 to $4.834 billion in Q1 2025, and by $1.667 billion from $3.147 billion in Q1 2024 to $4.814 billion in Q1 2025[494]. - The effective annualized average interest rate decreased from 6.2% in Q4 2024 to 5.9% in Q1 2025, while it increased from 5.6% in Q1 2024 to 6.0% in Q1 2025[495]. Income and Expenses - General and administrative expenses are expected to remain stable or decline as a percentage of total assets during periods of asset growth[464]. - Interest and other debt financing expenses decreased by $9.7 million from $76.998 million in Q4 2024 to $67.432 million in Q1 2025, primarily due to lower interest rates and refinancing benefits[494]. - The base management fee increased by $0.1 million from $21.581 million in Q4 2024 to $21.714 million in Q1 2025, driven by an increase in average adjusted gross assets[497]. - The Income Incentive Fee increased by $0.2 million from $18.058 million in Q4 2024 to $18.247 million in Q1 2025, but decreased by $0.4 million from $36.754 million in Q1 2024 to $36.305 million in Q1 2025 due to a reduction in fee rates[500]. - Professional fees, administrative service fees, and general administrative expenses increased by $0.1 million from Q4 2024 to Q1 2025, and by $2.9 million from Q1 2024 to Q1 2025[503]. Shareholder Distributions - A quarterly distribution of $0.39 per share was declared on May 2, 2025, payable on June 27, 2025[477]. - The company intends to make quarterly distributions to stockholders, but there are no assurances regarding the level or consistency of these distributions[559]. - The company has made and intends to continue making requisite distributions to stockholders to relieve it from U.S. federal income taxes[587]. Risk Management - The company is subject to financial market risks, including valuation risk and changes in interest rates[592]. - The fair value of investments is subject to fluctuation due to the lack of readily available market prices, which may result in significant differences if liquidated[593]. - The company may hedge against interest rate fluctuations using instruments such as interest rate swaps, futures, and options[597]. - The analysis of interest rate sensitivity does not account for changes in credit market conditions or the composition of the asset portfolio[595]. Acquisitions and Growth Strategy - The company completed the acquisition of GBDC 3 on June 3, 2024, resulting in the issuance of 92,115,308 shares of common stock to former stockholders of GBDC 3[474]. - The company completed acquisitions of GCIC and GBDC 3, impacting the fair value of assets and liabilities assumed, with purchase premiums recognized as unrealized depreciation[482]. - The company targets a GAAP debt-to-equity ratio between 0.85x to 1.25x, with a net GAAP debt-to-equity ratio of 1.16x as of March 31, 2025[542]. - The company plans to fund the growth of its investment portfolio through net proceeds from future securities offerings and borrowings, but cannot assure successful capital raising efforts[546]. Valuation and Fair Value - The fair value of the company's debt investments as a percentage of the outstanding principal value was 98.4%, up from 97.8% as of September 30, 2024[552]. - The fair value of investments can differ significantly from values that would have been used had a readily available market value existed[581]. - Approximately 50% of the valuations of debt and equity investments without readily available market quotations are subject to review by an independent valuation firm[578]. - The primary method for determining enterprise value uses a multiple analysis applied to the portfolio company's EBITDA[579]. Non-Accrual Loans - The company had loans in eight portfolio companies on non-accrual status, with non-accrual investments as a percentage of total investments at cost and fair value being 1.2% and 0.7%, respectively[551]. - The total fair value of non-accrual loans was $59.9 million as of March 31, 2025, down from $93.2 million as of September 30, 2024[586].