Blue Owl Capital Corporation (NYSE:OBDC) Q3 2025 Earnings Call November 06, 2025 10:00 AM ET Speaker2Good morning, everyone, and welcome to Blue Owl Capital Corporation's third quarter 2025 earnings call. As a reminder, this call is being recorded. At this time, I'd like to turn the call over to Mike Mastuccio, Head of BDC Investor Relations.Speaker6Thank you, Operator, and welcome to Blue Owl Capital Corporation's third quarter 2025 earnings conference call. Yesterday, Blue Owl Capital Corporation issued i ...

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Financial Performance - The net asset value per share decreased to $14.89, compared to $15.03 as of June 30, 2025[2] - Adjusted net investment income per share was $0.36, down from $0.40 as of June 30, 2025[2] - The company declared a Q3 2025 regular dividend of $0.37 per share, resulting in an annualized dividend yield of 9.9%[2] - A new $200 million repurchase program was implemented, replacing the existing $150 million program[2] Portfolio Composition and Activity - The total portfolio at fair value reached $17.1 billion, compared to $16.9 billion as of June 30, 2025, comprising 238 portfolio companies, up from 233[2] - New investment commitments (net of sell downs) amounted to $1.3 billion, with net fundings of $0.2 billion[2] - Investments on non-accrual represented 2.7% of the total portfolio at cost and 1.3% at fair value[2] - First-lien debt investments accounted for 74% of the portfolio[4] - Floating rate debt investments made up 97% of the portfolio[4] Balance Sheet and Liquidity - The company had $3.2 billion in liquidity, including cash and undrawn debt[2] - Debt to equity ratio increased to 1.22x, up from 1.17x as of June 30, 2025[2] - Unsecured debt comprised 52% of the debt funding mix[2]

Blue Owl Capital Corporation (OBDC) reported $453.07 million in revenue for the quarter ended September 2025, representing a year-over-year increase of 11.6%. EPS of $0.36 for the same period compares to $0.47 a year ago.The reported revenue represents a surprise of -1.84% over the Zacks Consensus Estimate of $461.57 million. With the consensus EPS estimate being $0.39, the EPS surprise was -7.69%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ex ...

Core Insights - Blue Owl Capital Corporation reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.39 per share, and down from $0.47 per share a year ago, representing an earnings surprise of -7.69% [1] - The company posted revenues of $453.07 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.84%, but up from $406.03 million year-over-year [2] - The stock has underperformed the market, losing about 14.6% since the beginning of the year compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.38 on revenues of $454.33 million, and for the current fiscal year, it is $1.58 on revenues of $1.87 billion [7] - The estimate revisions trend for Blue Owl Capital Corporation was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Blue Owl Capital Corporation belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Third quarter GAAP net investment income ("NII") per share was $0.37, down from $0.42 in the previous quarter[9] - Total investment income for the three months ended September 30, 2025, was $453.1 million, compared to $485.8 million in the previous quarter and $406.0 million in the same quarter last year[34] - Net investment income for the same period was $190.1 million, down from $216.7 million in the previous quarter but up from $184.9 million year-over-year[34] - Total investment income for Q3 2025 was $453 million, down 6.8% from $486 million in Q2 2025, but up 10.5% from $406 million in Q3 2024[43] - Adjusted net investment income for Q3 2025 was $183 million, a decrease of 11.2% from $206 million in Q2 2025, and unchanged from $185 million in Q3 2024[43] - The net increase in net assets resulting from operations for Q3 2025 was $128 million, a decrease from $138 million in Q2 2025 and down from $135 million in Q3 2024[43] Investment Commitments and Portfolio - New investment commitments for the third quarter totaled $1.3 billion, an increase from $1.1 billion in the prior quarter[15] - The weighted average interest rate of new investment commitments was 9.0% for the third quarter[17] - Total investments at fair value reached $17.1 billion, compared to $16.9 billion as of June 30, 2025[11] - The fair value of investments increased to $17.1 billion as of September 30, 2025, up from $16.9 billion in the previous quarter and $13.4 billion year-over-year[34] - Investments on non-accrual represented 1.3% of the portfolio at fair value, up from 0.7% in the previous quarter[9] Dividends and Shareholder Returns - The company declared a fourth quarter 2025 regular dividend of $0.37 per share, representing an annualized dividend yield of 9.9%[9] - The company declared a base dividend of $0.37 per share, consistent with the previous quarters, while supplemental dividends were $0.00, $0.02, and $0.05 for the last three quarters respectively[34] Expenses and Liabilities - Total expenses decreased to $260.0 million for the third quarter, down from $266.8 million in the previous quarter[21] - The company incurred total operating expenses of $259.89 million for the three months ended September 30, 2025, compared to $217.56 million in 2024, reflecting an increase of approximately 19.5%[38] - Total liabilities rose to $9.99 billion as of September 30, 2025, from $7.91 billion as of December 31, 2024, indicating an increase of around 26%[36] Asset and Debt Management - As of September 30, 2025, the company had $321.3 million in cash and restricted cash, with total debt outstanding of $9.6 billion, including $2.9 billion of undrawn capacity on credit facilities[22] - The company’s debt increased to $9.53 billion as of September 30, 2025, from $7.46 billion as of December 31, 2024, marking a rise of about 28%[36] - The company is in compliance with all financial covenants under its credit facilities as of September 30, 2025, indicating strong liquidity and capital resources[22] Mergers and Corporate Actions - The company announced a definitive merger agreement with OBDC II, expected to enhance long-term shareholder value[4] - OBDC's board approved a new repurchase program allowing for the repurchase of up to $200 million of common stock[6] - The company plans to file a proxy statement and registration statement with the SEC in connection with the upcoming mergers, which will include important information about the companies involved[30] Shareholder Metrics - The net asset value ("NAV") per share decreased to $14.89 from $15.03 in the previous quarter[9] - The net asset value per share decreased to $14.89 as of September 30, 2025, from $15.26 as of December 31, 2024[36] - The company’s weighted average shares outstanding increased to 511,048,237 for the three months ended September 30, 2025, compared to 390,217,304 in the same period of 2024[38]

Accessibility StatementSkip Navigation NEW YORK, Nov. 5, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE:Â OBDC) ("OBDC" or the "Company") today announced financial results for its third quarter ended September 30, 2025. THIRD QUARTER 2025 HIGHLIGHTS "OBDC delivered another quarter of strong performance," commented Craig W. Packer, Chief Executive Officer. "Our portfolio continues to demonstrate solid credit quality and underlying fundamentals, which have been hallmarks of our platform since incepti ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______to Commission File Number 814-01190 ______________________________________________ BLUE OWL CAPITAL CORPORATION ...

Accessibility StatementSkip Navigation Merger of two high-quality, diversified portfolios with substantial investment overlap that enhances scale Will strengthen OBDC's position as the second largest publicly traded BDC by total assets NEW YORK, Nov. 5, 2025 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC") and Blue Owl Capital Corporation II ("OBDC II") announced today that they have entered into a definitive merger agreement, with OBDC as the surviving company, subject to certain shareh ...

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Blue Owl Capital Corporation despite an increase in revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Blue Owl Capital Corporation is expected to report quarterly earnings of $0.39 per share, reflecting a year-over-year decrease of 17% [3]. - Revenues are projected to be $461.57 million, which is an increase of 13.7% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.52% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Blue Owl Capital is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.85% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [9][10]. - Blue Owl Capital's current Zacks Rank is 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Blue Owl Capital was expected to post earnings of $0.39 per share but actually reported $0.40, resulting in a surprise of +2.56% [13]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14]. Industry Comparison - Oportun Financial Corporation, another player in the financial services industry, is expected to report earnings of $0.26 per share, indicating no change year-over-year, with revenues expected to decline by 4.5% [19]. - Oportun Financial's consensus EPS estimate has been revised down by 3% in the last 30 days, leading to an Earnings ESP of -13.73% [20].