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]

[PART I FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) For the six months ended June 30, 2025, Blue Owl Capital Corporation reported total assets of **$17.4 billion** and net assets of **$7.7 billion**, with total investment income reaching **$950.5 million**, leading to a net increase in net assets from operations of **$380.1 million**, and the company's investment portfolio, valued at **$16.9 billion**, remains heavily concentrated in first-lien senior secured debt, with Net Asset Value (NAV) per share at **$15.03** as of June 30, 2025 [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2025, total assets increased to **$17.4 billion** from **$13.9 billion** at year-end 2024, driven by investment portfolio growth, while total liabilities rose to **$9.7 billion** from **$7.9 billion** due to increased debt, leading to total net assets growing to **$7.7 billion** from **$6.0 billion**, though Net Asset Value (NAV) per share slightly decreased to **$15.03** from **$15.26** Consolidated Statements of Assets and Liabilities Highlights (in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total investments at fair value** | **$16,868,782** | **$13,194,545** | | Total Assets | $17,398,476 | $13,865,564 | | Total Debt (net) | $9,225,817 | $7,457,702 | | 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=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, total investment income grew to **$950.5 million** from **$796.3 million** year-over-year, driven by higher interest income, with net investment income after taxes increasing to **$418.0 million** from **$371.9 million**, and the net increase in net assets from operations reaching **$380.1 million**, compared to **$304.7 million** in the prior year period, with earnings per share at **$0.76** versus **$0.78** Statement of Operations Summary (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Investment Income** | **$950,489** | **$796,337** | | Total Operating Expenses | $526,447 | $416,788 | | **Net Investment Income After Taxes** | **$418,010** | **$371,899** | | Total Net Realized and Change in Unrealized Gain (Loss) | $(37,873) | $(67,162) | | **Net Increase in Net Assets from Operations** | **$380,137** | **$304,737** | | **Earnings Per Share - Basic and Diluted** | **$0.76** | **$0.78** | [Consolidated Schedules of Investments](index=7&type=section&id=Consolidated%20Schedules%20of%20Investments) As of June 30, 2025, the company's total investment portfolio was valued at **$16.87 billion**, up from **$13.19 billion** at year-end 2024, primarily composed of debt investments in non-controlled/non-affiliated companies valued at **$14.73 billion**, with controlled/affiliated investments, including joint ventures, totaling **$2.05 billion** Portfolio Composition by Investment Type (June 30, 2025, Fair Value in thousands) | Investment Category | Fair Value | | :--- | :--- | | Non-controlled/non-affiliated investments | $14,726,112 | | Non-controlled/affiliated investments | $91,866 | | Controlled/affiliated investments | $2,050,804 | | **Total Investments** | **$16,868,782** | - As of June 30, 2025, non-qualifying assets under the 1940 Act represented **13.0%** of total assets, which is within the regulatory limit of **30%**[85](index=85&type=chunk) [Consolidated Statements of Changes in Net Assets](index=78&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) For the six months ended June 30, 2025, net assets increased by **$1.73 billion**, from **$5.95 billion** to **$7.68 billion**, primarily driven by a **$1.76 billion** increase from capital share transactions, largely due to the merger with OBDE, and a **$380.1 million** increase from operations, partially offset by **$408.8 million** in distributions to shareholders Changes in Net Assets (Six Months Ended June 30, 2025, in thousands) | Description | Amount | | :--- | :--- | | Net Assets, beginning of period | $5,952,841 | | Net Increase from Operations | $380,137 | | Distributions Declared | $(408,832) | | Net Increase from Capital Share Transactions | $1,758,251 | | **Net Assets, end of period** | **$7,682,397** | [Consolidated Statements of Cash Flows](index=79&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company generated **$1.05 billion** in cash from operating activities, a significant improvement from the **$282.2 million** used in the same period of 2024, while financing activities used **$1.20 billion**, mainly for net debt repayments and shareholder distributions, ending the period with a cash and restricted cash balance of **$360.2 million** Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,049,576 | $(282,210) | | Net cash provided by (used in) financing activities | $(1,203,543) | $2,536 | | **Net increase (decrease) in cash** | **$(153,967)** | **$(279,674)** | [Notes to Consolidated Financial Statements](index=81&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the company's accounting policies, related-party transactions, and financial instruments, with key disclosures including the company's status as a BDC and RIC, fair value methodology for illiquid investments, specifics of debt facilities and CLOs, and the accounting treatment of its January 2025 merger with Blue Owl Capital Corporation III (OBDE), which was treated as an asset acquisition resulting in an **$82.9 million** purchase discount - The company is regulated as a **Business Development Company (BDC)** under the 1940 Act and is treated as a **Regulated Investment Company (RIC)** for tax purposes[177](index=177&type=chunk) - The merger with Blue Owl Capital Corporation III (OBDE) on January 13, 2025, was accounted for as an asset acquisition, resulting in a purchase discount of **$82.9 million**, which was allocated to the cost basis of the acquired investments[513](index=513&type=chunk)[514](index=514&type=chunk)[518](index=518&type=chunk) - As of June 30, 2025, the company's asset coverage ratio was **181%**, above the required minimum of **150%**[273](index=273&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=130&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's investment strategy, focusing on directly originated senior secured loans to U.S. middle-market companies, highlighting the impact of the OBDE merger which significantly increased portfolio size and debt obligations, while noting consistent portfolio credit quality with a focus on non-cyclical, recession-resistant industries, and deeming current liquidity sufficient for near-term obligations and unfunded commitments, with the portfolio valued at **$16.87 billion** and a net leverage ratio of **1.17x** as of June 30, 2025 [Overview](index=130&type=section&id=Overview) Blue Owl Capital Corporation (OBDC) is a BDC and RIC managed by Blue Owl Credit Advisors LLC, aiming to generate current income and capital appreciation by investing in U.S. middle-market companies, and completed its merger with Blue Owl Capital Corporation III (OBDE) on January 13, 2025, with OBDC as the surviving company - The company's investment strategy focuses on originating loans and making debt/equity investments in U.S. middle-market companies[526](index=526&type=chunk) - On January 13, 2025, the company consummated its merger with Blue Owl Capital Corporation III (OBDE)[536](index=536&type=chunk) [Portfolio and Investment Activity](index=135&type=section&id=Portfolio%20and%20Investment%20Activity) As of June 30, 2025, the portfolio was valued at **$16.87 billion** across **233** companies, with **75.8%** in first-lien senior secured debt, a weighted average total yield of **10.1%**, and net leverage of **1.17x**, demonstrating high diversification with **83.6%** of investments rated '2' (performing as expected), while five portfolio companies were on non-accrual status, representing **1.8%** of the debt portfolio's amortized cost Portfolio Snapshot (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total Investments (Fair Value) | $16.87 billion | | Number of Portfolio Companies | 233 | | Weighted Average Total Yield | 10.1% | | Net Leverage (Debt-to-Equity) | 1.17x | Investment Rating Composition (June 30, 2025) | Rating | Description | % of Portfolio (Fair Value) | | :--- | :--- | :--- | | 1 | Performing above expectations | 7.8% | | 2 | Performing as expected | 83.6% | | 3 | Performing below expectations | 7.8% | | 4 | Materially below expectations | 0.2% | | 5 | Substantially below expectations | 0.6% | - As of June 30, 2025, investments on non-accrual status represented **1.8%** of the total debt portfolio at amortized cost[592](index=592&type=chunk) [Results of Operations](index=142&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2025, total investment income increased to **$950.4 million** from **$796.3 million** year-over-year, driven by a larger portfolio post-merger, while total operating expenses rose to **$526.4 million** from **$416.8 million**, mainly due to higher interest, management, and incentive fees, resulting in net investment income after taxes of **$418.0 million** and a net increase in net assets from operations of **$380.2 million** Operating Results Comparison (Six Months Ended June 30) | ($ in millions) | 2025 | 2024 | | :--- | :--- | :--- | | Total Investment Income | $950.4 | $796.3 | | Total Operating Expenses | $526.4 | $416.8 | | Net Investment Income After Taxes | $418.0 | $371.8 | | Net Increase in Net Assets | $380.2 | $304.7 | - The increase in investment income and expenses for the six months ended June 30, 2025, was primarily due to the larger portfolio and increased borrowings resulting from the acquisition of OBDE[610](index=610&type=chunk)[614](index=614&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=148&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's liquidity is sourced from investment cash flows, credit facilities, and debt issuances, with **$360.2 million** in cash and restricted cash and **$3.74 billion** available under its credit facilities as of June 30, 2025, maintaining an asset coverage ratio of **181%** (above the **150%** regulatory requirement), and management believes current liquidity is sufficient for near-term investing activities and operational needs - As of June 30, 2025, the company had **$3.74 billion** available under its credit facilities and an asset coverage ratio of **181%**[644](index=644&type=chunk)[645](index=645&type=chunk) - The company's target leverage ratio is **0.90x-1.25x**[556](index=556&type=chunk) - During the six months ended June 30, 2025, the company issued **200,603** shares for net proceeds of **$3.1 million** through its "at the market" offering program[490](index=490&type=chunk)[650](index=650&type=chunk) [Recent Developments](index=182&type=section&id=Recent%20Developments) Subsequent to the quarter-end, on August 5, 2025, the Board declared a third-quarter dividend of **$0.37 per share** and a supplemental dividend of **$0.02 per share**, while the company also repaid its July 2025 Notes, redeemed its CLO II debt, and upsized its revolving credit facility commitment to **$3.825 billion** - A third-quarter dividend of **$0.37 per share** and a supplemental dividend of **$0.02 per share** were declared on August 5, 2025[863](index=863&type=chunk) - The company repaid its July 2025 Notes on July 22, 2025, and redeemed all classes of its CLO II debt on July 7, 2025[864](index=864&type=chunk)[865](index=865&type=chunk) - On July 15, 2025, the revolving credit facility commitments were increased to **$3.825 billion**[866](index=866&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=159&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to several market risks, including valuation, interest rate, currency, credit, and inflation risk, with **97.6%** of debt investments at floating rates to mitigate interest rate risk, and a sensitivity analysis indicating a **100 basis point** increase in base rates would increase annual net income by approximately **$81.6 million** before income-based fees - The company's primary market risks are valuation, interest rate, currency, credit, and inflation[867](index=867&type=chunk) - As of June 30, 2025, **97.6%** of the company's debt investments by fair value had floating interest rates, which helps mitigate the impact of rising interest rates[871](index=871&type=chunk) Annualized Impact of Interest Rate Changes on Net Income (as of June 30, 2025, in millions) | Basis Point Change | Impact on Net Income | | :--- | :--- | | +300 | $244.9 | | +200 | $163.2 | | +100 | $81.6 | | -100 | $(81.6) | | -200 | $(163.2) | | -300 | $(244.6) | [Controls and Procedures](index=160&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's management, including the CEO and CFO, concluded that the disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[878](index=878&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[879](index=879&type=chunk) [PART II OTHER INFORMATION](index=161&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=161&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently subject to any material legal proceedings, nor is it aware of any material legal proceedings being threatened against it - As of the report date, neither the company nor its Adviser is subject to any material legal proceedings[881](index=881&type=chunk) [Risk Factors](index=161&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive risk factors detailed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for information on risks that could materially affect the business - The report refers to the Risk Factors section of the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a detailed discussion of potential risks[882](index=882&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=161&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) For the quarter ended June 30, 2025, the company purchased **1,024,155** shares of its common stock in the open market at a weighted average price of **$13.38 per share** to satisfy its dividend reinvestment plan for shareholders who did not opt to receive cash dividends - During the quarter ended June 30, 2025, the company purchased **1,024,155** shares in the open market at an average price of **$13.38 per share** to fulfill obligations under its dividend reinvestment plan[884](index=884&type=chunk) [Defaults Upon Senior Securities](index=161&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[885](index=885&type=chunk) [Other Information](index=161&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended June 30, 2025, none of the company's directors or executive officers adopted or terminated any Rule 10b5-1 trading plans for the purchase or sale of company securities - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[887](index=887&type=chunk) [Exhibits](index=161&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including amendments to corporate bylaws, supplemental indentures for debt offerings, amendments to credit agreements, and required officer certifications - The report includes several exhibits, such as amendments to credit agreements, supplemental indentures, and certifications by the Principal Executive Officer and Principal Financial Officer[887](index=887&type=chunk)

OBDC Highlights - OBDC's portfolio has a size of $169 billion across 233 portfolio companies[2] - The asset mix is heavily weighted towards senior secured debt, with 81% senior secured and 76% first lien investments[2] - The portfolio yield is 106% and the dividend yield is 104%[2] - OBDC's net debt-to-equity leverage is 117x[2] - The company's market capitalization is $72 billion[2] Blue Owl's Credit Platform - Blue Owl manages a market-leading credit business with $146 billion in AUM[3,10] - Diversified lending accounts for $75 billion of the credit platform's AUM[10] - BDCs make up more than half of Blue Owl's Credit platform AUM[10] Investment Strategy and Portfolio - Blue Owl primarily focuses on making debt and equity investments in U S upper middle-market companies[3] - The company's direct lending platform has extensive sponsor relationships with 800+ financial sponsors[3,13,35] - The average annual net loss rate is 7 basis points since the inception of the direct lending business in 2016[3] Financial Performance - The company has a total return of 92% since inception[32,35] - The portfolio is downside protected, with 81% senior secured and 98% floating rate investments[32] - The company's Q2 2025 net asset value per share was $1503[38]

Core Insights - Blue Owl Capital Corporation (OBDC) is expected to report quarterly earnings of $0.39 per share, reflecting an 18.8% decline year-over-year, while revenues are forecasted to increase by 16.9% to $463.85 million [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] - Analysts' forecasts for key metrics provide a more comprehensive understanding of the company's performance beyond consensus estimates [3] Investment Income Projections - The consensus estimate for 'Investment income from non-controlled, non-affiliated investments - Interest income' is $346.72 million, representing a 20.7% increase from the prior year [4] - 'Investment income from controlled, affiliated investments - Dividend income' is projected to reach $37.22 million, indicating a 7.2% year-over-year increase, while 'Investment income from non-controlled, non-affiliated investments - Dividend income' is expected to drop by 99.9% to $23.34 million [5] - 'Investment income from controlled, affiliated investments - Interest income' is estimated at $9.61 million, reflecting a 34% increase, while 'Investment income from non-controlled, non-affiliated investments - Payment-in-kind (PIK) interest income' is projected to decrease by 3.5% to $42.73 million [6] Total Investment Income - Total investment income from non-controlled, non-affiliated investments is expected to reach $419.91 million, marking an 18.6% increase year-over-year, while total investment income from controlled, affiliated investments is projected at $47.20 million, indicating a 10.8% increase [7] - Over the past month, shares of Blue Owl Capital Corporation have returned -2.3%, contrasting with a +1% change in the Zacks S&P 500 composite [7]

Company Overview - Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to U.S. middle-market companies [3] - As of March 31, 2025, OBDC had investments in 236 portfolio companies with an aggregate fair value of $17.7 billion [3] - OBDC is regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Blue Owl Credit Advisors LLC, an SEC-registered investment adviser [3] Financial Results Announcement - OBDC will release its financial results for the second quarter ended June 30, 2025, on August 6, 2025, after market close [1] - A webcast/conference call to discuss these results is scheduled for August 7, 2025, at 10:00 a.m. Eastern Time [1] - The conference call will be accessible via OBDC's website and by dialing specific numbers for domestic and international participants [2]

Company Overview - Blue Owl Capital Corporation (NYSE: OBDC) is a Business Development Company (BDC) [1] Financial Performance - In Q1, Blue Owl Capital delivered a total NAV return of 2%, which is in line with the median return in the coverage [1]