Core Insights - Blue Owl Capital Corporation (NYSE: OBDC) operates as a business development company focused on generating earnings through a diverse portfolio of debt investments [1] - The company lends capital to businesses, aiming to create a hybrid investment strategy that combines growth and income [1] Company Overview - OBDC specializes in high-quality dividend stocks and other assets that offer potential for long-term growth [1] - The company utilizes a mix of Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1] Investment Strategy - The investment approach of OBDC is designed to boost income while maintaining a total return that aligns with the S&P [1]

Core Insights - Blue Owl Capital Corporation (NYSE: OBDC) operates as a business development company focused on generating earnings through a diverse portfolio of debt investments [1] - The company lends capital to businesses, aiming to create a hybrid investment strategy that combines growth and income [1] Company Overview - OBDC is characterized as a business development company that seeks to provide capital to various businesses [1] - The investment strategy includes a mix of classic dividend growth stocks, Business Development Companies, REITs, and Closed End Funds to enhance investment income [1] Investment Strategy - The company emphasizes a hybrid system that balances growth and income, aiming to achieve total returns comparable to traditional index funds like the S&P [1]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article emphasizes the importance of conducting personal research before making investment decisions [2] - It clarifies that the opinions expressed are personal and not professional investment advice [2][3]

Group 1 - Blue Owl Capital (NYSE: OBDC) exceeded GAAP net investment income expectations for the second fiscal quarter [1] - The investment firm experienced double-digit growth in total investment income as well as net investment income [1]

Core Insights - Blue Owl Capital Corporation (OBDC) reported a 0.4% increase in shares following the release of its second-quarter 2025 results, which were supported by strong net investment income and new investment commitments, although elevated expenses partially offset the gains [1][9] Financial Performance - Adjusted earnings per share (EPS) for Q2 2025 were 40 cents, exceeding the Zacks Consensus Estimate by 2.6%, but reflecting a 16.7% decline year over year [1][9] - Total investment income rose 22.5% year over year to $485.8 million, surpassing the consensus mark by 4.7% [2][9] - Net investment income increased 14.6% year over year to $216.7 million, exceeding the estimate of $198.2 million [3] - Total expenses grew 2.8% year over year to $266.8 million, driven by higher interest expenses, management fees, and incentive fees [4][9] - Adjusted net increase in net assets from operations was $137.5 million, marking a 12.5% improvement year over year [4] Investment Commitments and Portfolio - OBDC made total new investment commitments of $1.1 billion across six new portfolio companies and 19 existing ones [3] - As of June 30, 2025, OBDC had investments in 233 portfolio companies with an aggregate fair value of $16.9 billion, resulting in an average investment size of $72.4 million per company [3] Cash and Debt Position - The company ended Q2 2025 with a cash balance of $359.5 million, a decline of 28.9% from the end of 2024 [5] - Total assets increased by 25.5% year over year to $17.4 billion, while debt rose 23.7% to $9.2 billion [5] - OBDC had $3.7 billion of undrawn capacity under its credit facilities, with a net debt to equity ratio of 1.17X at the end of Q2 [5] Dividend and Share Repurchase - The board declared a regular dividend of 37 cents per share for Q2 2025, to be paid by September 30, 2025, along with a supplemental dividend of two cents per share [7] - OBDC has a stock repurchase program approved for up to $150 million, but no shares were repurchased in the second quarter [8]

Financial Data and Key Metrics Changes - The company achieved a return on equity (ROE) of 10.6%, marking the twelfth consecutive quarter of double-digit ROE, based on adjusted net investment income (NII) per share of $0.40, reflecting strong earnings power [5][21] - The net asset value (NAV) per share was $15.03, down $0.11 from the prior quarter [6][21] - Adjusted NII per share increased by $0.01 compared to the prior quarter, driven by elevated one-time repayment income totaling $0.05 per share [21][22] - The company declared a supplemental dividend of $0.02 and a base dividend of $0.37 for the third quarter [22] Business Line Data and Key Metrics Changes - Approximately $1.1 billion of new investment commitments were deployed in the second quarter, with $906 million of fundings [12] - The debt portfolio maintained a conservative loan-to-value (LTV) ratio of 42% on average, supporting robust recoveries [16] - Revenue and EBITDA for portfolio borrowers increased by mid to high single digits year-over-year, with interest coverage rising to 1.9 times [17] Market Data and Key Metrics Changes - The deal environment in 2025 has been challenging, with muted M&A activity impacting overall deal flow [8] - The company noted a stabilization in spread pressure experienced last year, with direct lending spreads remaining tight but commanding a healthy premium over the broadly syndicated loan market [26][60] Company Strategy and Development Direction - The company is expanding into complementary strategies, including alternative credit and digital infrastructure, to access new investment opportunities [10][26] - A cross-platform equipment leasing joint venture was formed to enhance diversification and expand reach in new investment areas [10][15] - The company aims to maintain strong risk-adjusted returns regardless of economic conditions, supported by a defensively constructed portfolio and disciplined underwriting [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a potential rebound in deal activity in the second half of the year, citing increased engagement with private equity sponsors [28][45] - The company does not foresee significant stress in its portfolio, with a stable watch list and no material increase in amendment activity [18][66] - Management believes that the current economic environment is resilient, with portfolio companies continuing to perform well despite broader economic concerns [66] Other Important Information - The company ended the quarter with over $4 billion in total cash and capacity on its facilities, providing significant liquidity to invest in new opportunities [24] - The non-accrual rate was reported at 0.7% at fair value and 1.6% at cost, reflecting a slight increase due to one small position on the watch list [18] Q&A Session Summary Question: Where are we in terms of realizing synergies from the merger with OBD? - Management indicated that operational expense synergies have been realized, while financing synergies are expected to materialize over the next year [32][34] Question: Can you quantify how much of year-to-date originations have come from new business lines? - Management noted that the platform has expanded into new lines of business, but the impact on originations is still modest as they are just beginning to see deal flow [36][38] Question: What types of deals are being seen in the current environment? - Management highlighted a mix of public-to-private activity, refinancing, and add-on acquisition financing as potential deal types [44][46] Question: How does the company view leverage going forward? - Management stated that they are comfortable with current leverage levels and expect to maintain them unless deal activity picks up significantly [48] Question: What is the outlook for spreads in the current market? - Management believes spreads have troughed and may widen in the future, depending on market conditions [68] Question: How does the company plan to scale the equipment leasing business? - Management emphasized that while the equipment finance joint venture may not be a massive investment, it represents a diversification strategy that can create consistent returns [75][76]

Financial Performance - The company's net asset value per share decreased slightly to $15.03, compared to $15.14 as of March 31, 2025 [2] - Adjusted net investment income per share increased to $0.4030, up from $0.3930 as of March 31, 2025 [2] - Adjusted net income per share decreased to $0.2730, down from $0.3230 as of March 31, 2025 [2] - The company declared a Q2 2025 total dividend per share of $0.39, resulting in an annualized dividend yield of 10.4% [2] Portfolio Composition and Activity - The total portfolio at fair value was $16.9 billion, compared to $17.7 billion as of March 31, 2025, comprising 233 portfolio companies compared to 236 as of March 31, 2025 [2] - New investment commitments (net of sell downs) amounted to $1.1 billion, while net fundings were ($1.0) billion [2] - Investments on non-accrual represent 1.6% and 0.7% of total portfolio at cost and fair value, respectively [2] - Senior secured investments represent 81% of the portfolio, with 76% being first lien investments and 98% being floating rate debt investments [5, 12] Balance Sheet and Liquidity - The company has $4.1 billion of liquidity in cash and undrawn debt [2] - Debt to equity ratio decreased to 1.17x, down from 1.26x as of March 31, 2025 [2] - Unsecured debt comprises 59% of the debt funding mix [2, 30]

Core Insights - Blue Owl Capital Corporation reported $485.84 million in revenue for the quarter ended June 2025, marking a year-over-year increase of 22.5% and exceeding the Zacks Consensus Estimate of $463.85 million by 4.74% [1] - The company's EPS for the same period was $0.40, down from $0.48 a year ago, but still above the consensus estimate of $0.39, resulting in an EPS surprise of 2.56% [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments showed significant growth, with interest income at $384.76 million, surpassing the average estimate of $346.72 million, reflecting a year-over-year increase of 33.9% [4] - Total investment income from non-controlled, non-affiliated investments reached $440.42 million, exceeding the average estimate of $419.91 million, representing a year-over-year change of 24.4% [4] - Investment income from controlled, affiliated investments totaled $43.75 million, slightly below the average estimate of $47.2 million, but still showing a year-over-year increase of 2.7% [4] Stock Performance - Over the past month, shares of Blue Owl Capital Corporation have returned -1.6%, contrasting with the Zacks S&P 500 composite's +0.5% change, indicating underperformance relative to the broader market [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3]

[Financial Results and Highlights](index=1&type=section&id=Financial%20Results%20and%20Highlights) OBDC reported solid Q2 2025 earnings with adjusted NII of $0.40 per share, a slight NAV decrease, and strong portfolio fundamentals with low non-accruals [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) OBDC reported solid Q2 2025 earnings with adjusted NII of $0.40 per share, a slight NAV decrease, and strong portfolio fundamentals with non-accrual investments at 0.7% of fair value - The CEO highlighted another quarter of **solid earnings**, generating a **10.6% annualized return** on adjusted net investment income, and emphasized the portfolio's strong fundamental performance[4](index=4&type=chunk) Q2 2025 Key Metrics vs. Q1 2025 | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | GAAP NII per share | $0.42 | - | | Adjusted NII per share | $0.40 | $0.39 | | NAV per share | $15.03 | $15.14 | | Investments on Non-Accrual (at FV) | 0.7% | 0.8% | - Investment activity in Q2 2025 showed new commitments of **$1.1 billion**, which was exceeded by **$1.9 billion** in sales and repayments, indicating a net portfolio paydown during the quarter[6](index=6&type=chunk) [Dividend Declarations](index=1&type=section&id=Dividend%20Declarations) The Board declared a regular Q3 dividend of $0.37 per share and a supplemental Q2 dividend of $0.02 per share, totaling $0.39 per share for the quarter Dividend Details | Dividend Type | Quarter | Amount per Share | Record Date | Payable Date | | :--- | :--- | :--- | :--- | :--- | | Regular | Q3 2025 | $0.37 | Sep 30, 2025 | On or before Oct 15, 2025 | | Supplemental | Q2 2025 | $0.02 | Aug 29, 2025 | On or before Sep 15, 2025 | - The total dividends declared of **$0.39 per share** for the second quarter represent an annualized dividend yield of **10.4%**[6](index=6&type=chunk) [Select Financial Highlights](index=2&type=section&id=Select%20Financial%20Highlights) Key financial metrics for Q2 2025 show adjusted NII per share at $0.40 and net debt-to-equity decreasing to 1.17x from 1.26x Comparative Financial Highlights (Per Share) | Per Share Amounts | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | GAAP NII | $0.42 | $0.41 | $0.48 | | Adjusted NII | $0.40 | $0.39 | $0.48 | | Net Asset Value (NAV) | $15.03 | $15.14 | $15.36 | Balance Sheet and Leverage Highlights | ($ in thousands, except ratio) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total investments at fair value | $16,868,782 | $17,692,006 | $13,341,982 | | Net assets | $7,682,397 | $7,739,089 | $5,994,284 | | Net debt-to-equity | 1.17x | 1.26x | 1.20x | [Portfolio Analysis](index=2&type=section&id=Portfolio%20Analysis) The portfolio was valued at $16.9 billion, diversified across 233 companies, with 75.8% in first-lien senior secured debt and non-accruals at 0.7% of fair value [Portfolio Composition and Quality](index=2&type=section&id=Portfolio%20Composition%20and%20Quality) The $16.9 billion portfolio is diversified across 233 companies, with 75.8% in first-lien senior secured debt and non-accruals at a low 0.7% of fair value - The portfolio consists of investments in **233 companies** across **30 industries**, with an aggregate size of **$16.9 billion** and an average investment size of **$72.4 million** at fair value as of June 30, 2025[10](index=10&type=chunk) Portfolio Composition by Investment Type (at Fair Value) | Investment Type | Q2 2025 % of Total | Q1 2025 % of Total | | :--- | :--- | :--- | | First-lien senior secured debt | 75.8% | 77.5% | | Second-lien senior secured debt | 5.4% | 5.0% | | Unsecured debt | 2.2% | 2.1% | | Preferred equity | 3.3% | 3.1% | | Common equity | 11.0% | 10.2% | Key Portfolio Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | % of debt investments at floating rates | 97.6% | 96.5% | | Weighted avg. yield of accruing debt (at FV) | 10.6% | 10.7% | | % of investments on non-accrual (at FV) | 0.7% | 0.8% | [Portfolio and Investment Activity](index=3&type=section&id=Portfolio%20and%20Investment%20Activity) Q2 2025 saw $1.1 billion in new commitments and $1.9 billion in sales/repayments, leading to a net portfolio reduction, with new debt investments 99.0% floating rate - For Q2 2025, new investment commitments were **$1.1 billion**, while sales and repayments totaled **$1.9 billion**[12](index=12&type=chunk)[13](index=13&type=chunk) - This compares to **$1.2 billion** in commitments and **$1.1 billion** in repayments in Q1 2025[13](index=13&type=chunk) Investment Activity for the Three Months Ended June 30 | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total new investment commitments | $1,116,767 | $3,296,799 | | Total principal amount of new investments funded | $906,035 | $2,305,430 | | Total principal amount of investments sold or repaid | $(1,906,887) | $(1,146,773) | - New debt investment commitments in Q2 2025 were **99.0% floating rate**, with a weighted average spread over the applicable base rate of **5.4%**[14](index=14&type=chunk) [Financial Performance Analysis](index=5&type=section&id=Financial%20Performance%20Analysis) Investment income increased to $485.8 million in Q2 2025 due to higher non-recurring income, while total operating expenses rose to $266.8 million, driven by increased interest expense and merger-related fees [Results of Operations](index=5&type=section&id=Results%20of%20Operations) Q2 2025 investment income increased to $485.8 million due to non-recurring income, while total operating expenses rose to $266.8 million from merger-related costs [Investment Income](index=5&type=section&id=Investment%20Income) Investment income increased to $485.8 million in Q2 2025, primarily driven by a significant rise in non-recurring income from unscheduled paydowns - The increase in investment income was primarily due to a rise in prepayment-related income and accelerated amortization of upfront fees from unscheduled paydowns[16](index=16&type=chunk) Income from Unscheduled Paydowns | Period | Amount | | :--- | :--- | | Q2 2025 | $32.1 million | | Q1 2025 | $8.2 million | [Expenses](index=5&type=section&id=Expenses) Total operating expenses increased to $266.8 million in Q2 2025, mainly due to higher interest, management, and incentive fees from the recent merger - The primary drivers for the increase in total operating expenses were higher interest expense, management fees, and incentive fees resulting from the Merger[17](index=17&type=chunk) [Liquidity and Capital Resources](index=5&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company maintained strong liquidity with $360.2 million cash, $9.3 billion debt, and $3.7 billion undrawn capacity, complying with all covenants Liquidity Position as of June 30, 2025 | Metric | Amount | | :--- | :--- | | Cash and restricted cash | $360.2 million | | Total principal value of debt outstanding | $9.3 billion | | Undrawn capacity on credit facilities | $3.7 billion | | Unsecured notes | $5.5 billion | - The company's funding mix was composed of **41% secured** and **59% unsecured** borrowings, and it was in compliance with all financial covenants under its credit facilities[18](index=18&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed consolidated financial statements, including highlights, balance sheets, and statements of operations, providing a comprehensive view of the company's financial position and performance [Financial Highlights (Detailed)](index=7&type=section&id=Financial%20Highlights%20%28Detailed%29) Detailed financial highlights compare GAAP and Non-GAAP metrics, showing Q2 2025 total investment income of $485.8 million and GAAP net investment income of $216.7 million Detailed Financial Highlights | ($ in thousands, except per share) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total investment income | $485,843 | $464,646 | $396,760 | | Net investment income | $216,708 | $201,302 | $189,134 | | NII per share (GAAP) | $0.42 | $0.41 | $0.48 | | Adjusted NII per share (Non-GAAP) | $0.40 | $0.39 | $0.48 | | Net increase in net assets | $137,506 | $242,635 | $122,220 | [Consolidated Statements of Assets and Liabilities](index=8&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, the balance sheet shows total assets of $17.4 billion, total liabilities of $9.7 billion, and net assets of $7.7 billion, with NAV per share at $15.03 Balance Sheet Summary | ($ in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total investments at fair value | $16,868,782 | $13,194,545 | | Total Assets | $17,398,476 | $13,865,564 | | Total Liabilities | $9,716,079 | $7,912,723 | | Total Net Assets | $7,682,397 | $5,952,841 | | Net Asset Value Per Share | $15.03 | $15.26 | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total investment income was $485.8 million, operating expenses $266.8 million, resulting in net investment income of $216.7 million and a net asset increase of $137.5 million Income Statement Summary (Three Months Ended June 30) | ($ in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $485,843 | $396,760 | | Total Operating Expenses | $266,849 | $205,216 | | Net Investment Income After Taxes | $216,708 | $189,134 | | Total Net Realized and Unrealized Gain (Loss) | $(79,202) | $(66,914) | | Net Increase in Net Assets | $137,506 | $122,220 | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section explains and reconciles non-GAAP financial measures, such as Adjusted Net Investment Income, used by management to provide a clearer view of operational performance by excluding merger-related accounting impacts [Explanation of Non-GAAP Measures](index=10&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Non-GAAP measures, like Adjusted Net Investment Income, are used to clarify operational performance by excluding non-cash income and gains from Merger accounting under ASC 805 - The Merger with OBDE was accounted for as an asset acquisition, establishing a new cost basis for acquired investments, which creates non-cash accretion/amortization through interest income and unrealized gains/losses[35](index=35&type=chunk) - Management uses non-GAAP measures like 'Adjusted Net Investment Income' to evaluate ongoing results without the distorting effects of the Merger's purchase accounting, which also aligns with the calculation of incentive fees payable to the Adviser[36](index=36&type=chunk) - Key non-GAAP measures include 'Adjusted Total Investment Income' and 'Adjusted Net Investment Income', which exclude the amortization or accretion of interest income resulting from the new cost basis established by ASC 805[37](index=37&type=chunk) [Reconciliation of Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Tables reconcile GAAP to non-GAAP metrics, showing Q2 2025 GAAP Net Investment Income of $217 million adjusted to $206 million, or $0.40 per share Reconciliation of Net Investment Income (Q2 2025) | ($ in millions, except per share) | Amount | Per Share | | :--- | :--- | :--- | | Net investment income (GAAP) | $217 | $0.42 | | Less: purchase discount amortization | $(11) | $(0.02) | | **Adjusted net investment income (Non-GAAP)** | **$206** | **$0.40** | Reconciliation of Net Increase in Net Assets (Q2 2025) | ($ in millions, except per share) | Amount | Per Share | | :--- | :--- | :--- | | Net increase in net assets (GAAP) | $138 | $0.27 | | Adjustments for purchase discount | $0 | $0.00 | | **Adjusted net increase in net assets (Non-GAAP)** | **$138** | **$0.27** | [Corporate Information and Events](index=5&type=section&id=Corporate%20Information%20and%20Events) This section provides an overview of Blue Owl Capital Corporation and details regarding its upcoming conference call and webcast for Q2 2025 financial results [About Blue Owl Capital Corporation](index=6&type=section&id=About%20Blue%20Owl%20Capital%20Corporation) Blue Owl Capital Corporation (OBDC) is a BDC lending to U.S. middle-market companies, with a $16.9 billion portfolio across 233 companies as of June 30, 2025 - OBDC is a specialty finance company focused on lending to U.S. middle-market companies and is regulated as a business development company (BDC)[24](index=24&type=chunk) - As of June 30, 2025, OBDC's portfolio was valued at **$16.9 billion** across **233 portfolio companies**[24](index=24&type=chunk) [Conference Call and Webcast Information](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Information) The company will host a conference call and webcast on August 7, 2025, at 10:00 a.m. ET, to discuss Q2 2025 financial results, with replay options available - The conference call is scheduled for **August 7, 2025, at 10:00 a.m. Eastern Time**[19](index=19&type=chunk) - Participants can access the call via webcast on the company's website or by using the provided domestic and international dial-in numbers[19](index=19&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - An archived replay of the call will be available for **14 days** via the website and dial-in numbers[21](index=21&type=chunk)

Core Insights - Blue Owl Capital Corporation reported solid earnings for Q2 2025, achieving a 10.6% annualized return on adjusted net investment income, indicating strong portfolio performance and resilience across economic conditions [3][11][18] - The company declared a regular dividend of $0.37 per share and a supplemental dividend of $0.02 per share for Q2 2025, reflecting a commitment to returning value to shareholders [4][6][11] Financial Highlights - For Q2 2025, net investment income per share was $0.42, while adjusted net investment income per share was $0.40, showing a slight increase from $0.39 in the previous quarter [8][27] - Total investment income rose to $485.8 million from $464.6 million in Q1 2025, driven by increased prepayment-related income [18][25] - The net asset value (NAV) per share decreased to $15.03 from $15.14 in Q1 2025, primarily due to write-downs on a few investments [11][25] Portfolio Composition - As of June 30, 2025, the company had investments in 233 portfolio companies with a total fair value of $16.9 billion, averaging $72.4 million per investment [9][23] - The portfolio consisted of 75.8% first-lien senior secured debt investments, with 97.6% of debt investments at floating rates [10][12] Investment Activity - New investment commitments for Q2 2025 totaled $1.1 billion, with $906 million funded, while sales and repayments amounted to $1.9 billion [13][14][16] - The company experienced a slight decrease in the number of portfolio companies from 236 in Q1 2025 to 233 in Q2 2025 [12][13] Liquidity and Capital Resources - As of June 30, 2025, the company had $360.2 million in cash and restricted cash, with total debt outstanding at $9.3 billion, including $3.7 billion of undrawn capacity on credit facilities [20][28] - The funding mix comprised 41% secured and 59% unsecured borrowings, with compliance maintained under all financial covenants [20][28]