Blue Owl Capital's Q2 Earnings Beat on Strong Investment Results

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]