Blue Owl Capital Q4 Earnings Beat on Rising Net Investment Income

Core Insights - Blue Owl Capital Corporation (OBDC) reported Q4 2025 adjusted EPS of 36 cents, exceeding the Zacks Consensus Estimate by 1.9%, but down 23.4% year over year [1][8] - Total investment income increased by 13.5% year over year to $447.8 million, slightly surpassing consensus estimates by 0.4% [1][8] - The quarterly results were positively impacted by higher net investment income, although elevated expenses partially offset these gains [1] Financial Performance - Adjusted net investment income for Q4 was $184 million, a slight decline of 0.1% year over year [2] - New investment commitments totaled $684 million across 12 new and 17 existing portfolio companies [2] - Total expenses rose by 20.5% year over year to $252.6 million, driven by increased interest expenses and management fees [3] - Adjusted net increase in net assets from operations was $119.1 million, down 23.1% year over year [3] Balance Sheet Overview - As of December 31, 2025, Blue Owl Capital had a cash balance of $558.7 million, up from $505.7 million at the end of 2024 [4] - Total assets increased to $17.2 billion from $13.9 billion at the end of 2024 [4] - Debt rose to $9.3 billion from $7.5 billion as of December 31, 2024, with a net debt to equity ratio of 1.19X [4] Cash Flow and Dividends - Net operating cash flow for 2025 was $1.7 billion, significantly up from $160.2 million in the prior year [5] - The board declared a regular dividend of 37 cents per share for Q1 2026, payable by April 15, 2026 [6] - A new share repurchase program was announced, allowing for the purchase of up to $300 million in shares, with $148 million repurchased in Q4 2025 [6] Full-Year Performance - Total investment income for 2025 reached $1.9 billion, a 15.9% increase year over year [7] - Full-year EPS was $1.24, down 19% from the previous year [7] - Total operating expenses for 2025 grew by 23.1% to $1 billion [7] - New investment commitments for the year amounted to $4.3 billion across 43 new and 81 existing portfolio companies [7]