Blue Owl Capital Corporation Announces December 31, 2025 Financial Results

Core Insights - Blue Owl Capital Corporation reported strong fourth quarter earnings and credit performance, highlighting the health of its borrowers and its senior secured strategy focused on the upper middle market [3] - The company repurchased approximately $148 million of its common stock during the quarter, marking the largest quarterly repurchase activity in its history [3][4] - A strategic sale of $1.4 billion in direct lending investments was announced, which is expected to enhance balance sheet flexibility and increase portfolio diversity [3][6] Financial Performance - Fourth quarter GAAP net investment income per share was $0.38, with adjusted net investment income per share remaining consistent at $0.36 [7] - Dividends declared for the fourth quarter were $0.37 per share, resulting in an annualized dividend yield of 10.0% [7][10] - Net asset value per share decreased to $14.81 from $14.89 as of September 30, 2025, primarily due to credit-related markdowns [7] Investment Activity - New investment commitments for the fourth quarter totaled $684 million, while sales and repayments amounted to $1.4 billion [7][19] - For the full year 2025, new investment commitments reached $4.3 billion, a decrease from $7.3 billion in 2024 [17] - The principal amount funded in the fourth quarter was $521 million, compared to $963 million in the previous quarter [20] Portfolio Composition - As of December 31, 2025, the company had investments in 234 portfolio companies across 30 industries, with a total portfolio size of $16.5 billion at fair value [14][31] - The portfolio included 73.1% in first-lien senior secured debt investments, with 96.4% of debt investments at floating rates [15][16] Liquidity and Capital Resources - As of December 31, 2025, the company had $569 million in cash and restricted cash, with total debt outstanding of $9.3 billion [26] - The funding mix consisted of 46.5% secured and 53.5% unsecured borrowings, and the company was in compliance with all financial covenants [26] Stock Repurchase Program - The Board approved a new stock repurchase program of up to $300 million, replacing the previous $200 million authorization [5][4] - The company repurchased shares at 86% of price-to-book value, which was accretive to net asset value per share [4][7]