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].

Group 1 - The Cash Flow Kingdom Income Portfolio aims to achieve an overall yield in the range of 7% to 10% by combining various income streams for a steady payout [1] - Golub Capital BDC (GBDC) is highlighted as a high-quality business development company with a current regular dividend yield of 11% [1] - The portfolio's price may fluctuate, but the income stream remains consistent, indicating a focus on stability in income generation [1] Group 2 - The Cash Flow Club, where the author contributes, focuses on company cash flows and access to capital, providing features like a personal income portfolio targeting a yield of over 6% [1] - The community offers resources such as a "Best Opportunities" List and coverage of sectors including energy midstream, commercial mREITs, BDCs, and shipping [1]

Financial Results Announcement - Golub Capital BDC, Inc. will release its financial results for the quarter ended March 31, 2025, on May 5, 2025, after market close[4] - The press release regarding the financial results is attached as Exhibit 99.1[6] Company Information - The company is registered under the trading symbol GBDC on The Nasdaq Global Select Market[2]

Group 1 - Golub Capital BDC (NASDAQ: GBDC) operates a first lien-strategy and supports its dividend with net investment income, indicating a strong financial foundation [1] - The company has a strong balance sheet quality, which is a positive indicator for investors [1] - The recent merger with Golub Capital BDC 3 has enhanced the firm's operational capabilities and overall performance [1]

Group 1 - The dividend pay-out ratio of Golub Capital BDC increased to 123% in 4Q24 due to the payment of a special dividend to distribute excess portfolio income along with a variable dividend [1]