Core Viewpoint - Blue Owl Capital Corporation reported quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.48 per share, and showing a decrease from $0.49 per share a year ago, resulting in an earnings surprise of -2.08% [1][2] Financial Performance - The company posted revenues of $406.03 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.55%, and showing an increase from $399.02 million year-over-year [2] - Over the last four quarters, Blue Owl Capital Corporation has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance - Blue Owl Capital Corporation shares have declined approximately 0.7% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $396.22 million, and for the current fiscal year, it is $1.91 on revenues of $1.59 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Financial - Miscellaneous Services industry, to which Blue Owl Capital Corporation belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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, 2024 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 ...

Core Insights - Blue Owl Capital Corporation celebrates the five-year anniversary of its investment in Wingspire Capital, which has secured over $4.5 billion in financing commitments since its inception [1][2][3] Company Overview - Wingspire Capital operates two business units: Wingspire Equipment Finance and Wingspire Corporate Finance, focusing on providing specialized financing solutions for middle-market businesses [2][3] - The company offers senior secured credit facilities of up to $200 million and currently manages over $1 billion in assets [4] Business Growth and Strategy - Blue Owl Capital Corporation plans to continue supporting Wingspire through organic growth, acquisitions, and new product offerings, capitalizing on the increasing demand for flexible financing solutions [2][3] - Wingspire has successfully completed its inaugural equipment finance asset-backed securitization (ABS), WEF 2024-1, marking a significant milestone in its growth trajectory [3] Market Position and Demand - The private credit market is evolving, with a growing demand for flexible and timely capital solutions, which Wingspire aims to address through its offerings [3][4] - Industries financed by Wingspire include automotive, healthcare, technology, and e-commerce, among others, indicating a diverse portfolio [4]

Core Viewpoint - Blue Owl Capital Corporation reported better-than-expected second-quarter earnings, driven by growing investment income and strong portfolio performance, while also announcing a merger with Blue Owl Capital Corporation III [2][3][9]. Financial Performance - The second-quarter 2024 earnings per share (EPS) was 48 cents, beating the Zacks Consensus Estimate by 1 cent, remaining flat year over year [2]. - Total investment income reached $396.8 million, a 0.6% increase year over year, and also exceeded the Zacks Consensus Estimate by 2% [2]. - Net investment income increased by 1.3% year over year to $189.1 million, surpassing estimates by 3.3% [4]. - Total expenses remained flat at $205.2 million, higher than the estimated $200.8 million, primarily due to increased interest expenses and management fees [5]. - Net income for the second quarter was $122.2 million, down from $195.6 million in the previous year [5]. Investment Commitments and Portfolio - New investment commitments totaled $3.3 billion across 25 new and 24 existing portfolio companies [4]. - As of June 30, 2024, Blue Owl Capital had investments in 212 portfolio companies with an aggregate fair value of $13.3 billion, averaging $62.9 million per investment [4]. Cash and Debt Position - Cash and restricted cash decreased to $380 million from $658.7 million at the end of 2023 [6]. - Total assets rose to $13.9 billion from $13.5 billion at the end of 2023, while debt increased to $7.4 billion from $7.1 billion [6]. Dividend and Share Repurchase - A third-quarter 2024 dividend of 37 cents per share was declared, with a supplemental dividend of 6 cents for the second quarter [8]. - A new share repurchase plan for 2024 was approved, allowing for up to $150 million in share buybacks, with no repurchases made in the second quarter [9]. Merger Agreement - Blue Owl Capital has agreed to merge with Blue Owl Capital Corporation III, with OBDC as the surviving entity, expected to enhance operational efficiency and scale while preserving credit quality [9]. Market Outlook - Estimates for Blue Owl Capital have trended upward, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [12].

Group 1 - Investors in Blue Owl Capital Corporation (OBDC) should monitor stock movements due to high implied volatility in the options market, particularly for the Jan 17, 2025 $3 Call option [1] - Implied volatility indicates the market's expectation of future stock movement, suggesting potential significant price changes or upcoming events that could impact the stock [2] - Blue Owl Capital Corporation holds a Zacks Rank 3 (Hold) in the Financial-Miscellaneous Services industry, which is in the top 23% of the Zacks Industry Rank [3] Group 2 - Recent analyst activity shows two analysts have raised their earnings estimates for the current quarter, while one has lowered theirs, resulting in a consensus estimate increase from 47 cents to 48 cents per share [3] - The high implied volatility may indicate a developing trade opportunity, as options traders often seek to sell premium on options with high implied volatility to benefit from time decay [4]

Core Viewpoint - Blue Owl Capital Corporation reported better-than-expected second-quarter 2024 earnings, driven by growing investment income and strong portfolio performance, despite flat expenses [2][3]. Financial Performance - Earnings per share (EPS) for Q2 2024 was 48 cents, beating the Zacks Consensus Estimate by 1 cent, remaining flat year over year [1]. - Total investment income reached $396.8 million, a 0.6% increase year over year, and exceeded the Zacks Consensus Estimate by 2% [1][2]. - Net investment income increased by 1.3% year over year to $189.1 million, surpassing estimates by 3.3% [3]. - Total expenses remained flat at $205.2 million, higher than the estimated $200.8 million, primarily due to increased interest expenses and management fees [4]. Portfolio and Investments - Blue Owl Capital made total new investment commitments of $3.3 billion across 25 new and 24 existing portfolio companies [3]. - The company ended Q2 with investments in 212 portfolio companies, with an aggregate fair value of $13.3 billion, averaging $62.9 million per investment [3]. Cash and Debt Position - Cash and restricted cash decreased to $380 million from $658.7 million at the end of 2023 [5]. - Total assets rose to $13.9 billion from $13.5 billion at the end of 2023, while debt increased to $7.4 billion from $7.1 billion [5]. Dividend and Share Repurchase - The board declared a third-quarter 2024 dividend of 37 cents per share, payable on or before October 15, 2024, and a supplemental dividend of 6 cents for Q2 2024 [7]. - A new share repurchase plan for 2024 was approved, allowing for up to $150 million in share buybacks, with no repurchases made in Q2 [8]. Merger Agreement - Blue Owl Capital has agreed to merge with Blue Owl Capital Corporation III, with OBDC as the surviving entity, expected to be completed in Q1 2025, aiming for operational savings and enhanced scale [9].

Financial Data and Key Metrics Changes - Blue Owl Capital Corporation reported a net investment income (NII) of $0.48 per share, an increase of one cent from the previous quarter [6] - The net asset value (NAV) per share at the end of the quarter was $15.36, reflecting a year-over-year increase of $0.10 [18] - The company achieved an annualized return on equity (ROE) of 12.6%, marking the sixth consecutive quarter of double-digit ROE [7][27] - Shareholders received a total dividend of $0.43 for the quarter, which includes a regular dividend of $0.37 and a supplemental dividend of $0.06 [6] Business Line Data and Key Metrics Changes - Total portfolio investments reached $13.3 billion, with outstanding debt of $7.5 billion and total net assets of $6 billion [18] - The company had $3.3 billion in originations, offset by $1.1 billion in repayments, resulting in a leverage ratio of 1.2 times, near the high end of the target range [19] - The average interest coverage across the portfolio remained stable at approximately 1.6 times [21] Market Data and Key Metrics Changes - The public BDC market environment has been solid, with BDC equities trading at a valuation premium to historical averages [7] - The merger with OBDE is expected to add approximately $4.3 billion of investments to OBDC's portfolio, bringing total investments to approximately $17.7 billion [10] Company Strategy and Development Direction - The merger with OBDE is viewed as a strategic opportunity to streamline the BDC platform and enhance scale, providing long-term value to shareholders [4][9] - The combined company aims to improve trading liquidity, diversify the portfolio, and access lower-cost debt financing [12][13] - The company continues to focus on direct lending solutions to U.S. sponsor-backed upper-middle market companies, emphasizing diversification by borrower and sector [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite increased competition in the direct lending market and signs of stabilization in spreads [23][24] - The company is well-positioned to take advantage of opportunities arising from market volatility and is focused on maintaining appropriate levels of structural protection in documentation and capital structures [25][26] Other Important Information - The merger is subject to customary closing conditions, including shareholder approval, and is expected to close in the first quarter of 2025 [17] - The company plans to continue declaring and paying regular and supplemental dividends post-merger, maintaining a yield of approximately 9.5% [16] Q&A Session All Questions and Answers Question: Future Deal Commitments and M&A Activity - Management indicated that the mix of new and existing companies in deal commitments is expected to remain balanced, with potential for more new names as M&A activity picks up [29][30] Question: Synergies from the Merger - Management expects operational synergies of about $5 million immediately post-merger, with potential for NII accretion over time [56] Question: Borrowing Cost Impact from the Merger - Management anticipates a tightening of borrowing costs by approximately 10 to 20 basis points due to increased scale and improved access to capital [40][41] Question: Portfolio Strategy Post-Merger - Management confirmed that there will be no change in the core strategy, focusing on high-quality, sponsor-backed upper-middle market lending [49][65] Question: Sourcing Advantages from Blue Owl Platform - The merger is expected to enhance sourcing capabilities, providing more opportunities without changing the existing strategy [52][65]

| --- | --- | |-----------------------------------------------------|-------| | June 30, 2024 | | | Blue Owl | | | Capital Corporation Quarterly Earnings Presentation | | Review of Q2 2024 Earnings Summary Portfolio Update • Net asset value per share of $15.36, down from $15.47 as of 3/31/2024 • Net investment income per share of $0.48, up from $0.47 as of 3/31/2024 • Net income per share of $0.31, down from $0.47 as of 3/31/2024 • Annualized ROE on both net investment income and net income of 12.6%1 and 8. ...

Core Insights - Blue Owl Capital Corporation reported revenue of $396.76 million for the quarter ended June 2024, reflecting a year-over-year increase of 0.6% and a surprise of +2.04% over the Zacks Consensus Estimate of $388.84 million [1] - The company's EPS was $0.48, unchanged from the same quarter last year, with an EPS surprise of +2.13% compared to the consensus estimate of $0.47 [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments showed strong performance with interest income at $287.36 million, exceeding the average estimate of $284.29 million [3] - Other income from non-controlled, non-affiliated investments was reported at $5.99 million, surpassing the average estimate of $4.69 million [3] - Payment-in-kind interest income from non-controlled, non-affiliated investments reached $44.27 million, above the estimated $40.73 million [4] - Dividend income from non-controlled, non-affiliated investments was reported at $16.31 million, which was below the average estimate of $21.33 million [4] - Interest income from controlled, affiliated investments was $7.17 million, slightly below the average estimate of $7.95 million [4] - Other income from controlled, affiliated investments was $0.18 million, marginally below the average estimate of $0.19 million [5] Stock Performance - Over the past month, shares of Blue Owl Capital Corporation have returned -3.7%, compared to a -5.9% change in the Zacks S&P 500 composite [5] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [5]

分组1 - Blue Owl Capital Corporation reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, with a year-over-year comparison showing no change [1] - The company achieved revenues of $396.76 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.04% and showing an increase from $394.22 million a year ago [2] - Over the last four quarters, Blue Owl Capital Corporation has surpassed consensus EPS estimates three times and topped revenue estimates four times [2] 分组2 - The stock has added approximately 0.3% since the beginning of the year, underperforming compared to the S&P 500's gain of 9.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $389.93 million, and for the current fiscal year, it is $1.88 on revenues of $1.57 billion [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 39% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]