NEW YORK, Aug. 5, 2026 /PRNewswire/ -- Blue Owl Capital Corporation (NYSE: OBDC) ("OBDC" or the "Company") today announced financial results for its second quarter ended June 30, 2026.
SECOND QUARTER 2026 HIGHLIGHTS
-- Second quarter GAAP net investment income ("NII") per share of $0.36
-- Second quarter adjusted NII per share(1) increased to $0.34, as compared
to the prior quarter of $0.31
-- Based on OBDC's supplemental dividend framework, the Board of Directors
(the "Board") declared a second quarter supplemental dividend of $0.02
per share
-- Dividends declared totaled $0.33 per share, representing an annualized
dividend yield of 9.3%(2)
-- Net asset value ("NAV") per share of $14.26, as compared to $14.41 as of
March 31, 2026, primarily reflecting markdowns on a small number of names,
partially offset by over-earning the dividend and accretive share
repurchases
-- New investment commitments for the second quarter were $319 million and
sales and repayments were $747 million
-- Investments on non-accrual represented 2.8% and 0.8% of the portfolio at
cost and fair value, respectively, as compared to 2.0% and 1.0% as of
March 31, 2026
-- The Company repurchased approximately $35 million of OBDC common stock,
which was accretive to NAV per share in the second quarter
-- Amended and extended the revolving credit facility with all banking
partners renewing commitments and issued $800 million of unsecured debt
during the second quarter
"We are pleased with OBDC's performance this quarter, generating strong earnings resulting in a 9.6% annualized return on adjusted net investment income and healthy dividend coverage. Portfolio company operating trends remained stable, and credit performance continued to track in line with expectations," said Craig W. Packer, Chief Executive Officer. "As market conditions continue to stabilize and investment opportunities become increasingly attractive, we believe OBDC is well positioned to deploy capital selectively. With leverage at a two-year low and a strong liquidity profile, we have meaningful flexibility to capitalize on compelling investment opportunities as we focus on delivering attractive risk-adjusted returns for shareholders."
Dividend Declaration
On August 4, 2026 the Board declared a third quarter 2026 base dividend of $0.31 per share for stockholders of record as of September 30, 2026, payable on or before October 15, 2026.
The Board also declared a second quarter 2026 supplemental dividend of $0.02 per share, related to the Company's second quarter 2026 earnings, for stockholders of record as of August 31, 2026, payable on or before September 15, 2026.
(1) See Non-GAAP Financial Measures for a description of the non-GAAP
measures and the reconciliations from the most comparable GAAP financial
measures to the Company's non-GAAP measures, including on a per share
basis. The Company's management utilizes these non-GAAP financial
measures to internally analyze and assess financial results and
performance. These measures are also considered useful by management as
an additional resource for investors to evaluate the Company's ongoing
results and trends, as well as its performance, excluding non-cash income
or gains related to the merger between the Company and Blue Owl Capital
Corp. III ("OBDE") (such merger, the "OBDE Merger"), which closed on
January 13, 2025. The presentation of non-GAAP measures is not intended
to be a substitute for financial results prepared in accordance with GAAP
and should not be considered in isolation.
(2) Dividend yield based on OBDC's annualized Q2'26 base dividend of $0.31
per share payable to shareholders of record as of June 30, 2026,
annualized Q2'26 supplemental dividend of $0.02 per share payable to
shareholders of record as of August 31, 2026, and Q2'26 NAV per share of
$14.26 less Q2'26 supplemental dividend per share of $0.02.
SELECT FINANCIAL HIGHLIGHTS
As of and for the Three Months Ended
--------------------------------------------------------------
($ in thousands,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
------------------- ------------------- --------------------
GAAP results:
Net investment
income per share $ 0.36 $ 0.32 $ 0.42
Net realized and
unrealized gains
(losses) per
share $ (0.22) $ (0.37) $ (0.15)
Net increase
(decrease) in net
assets resulting
from operations
per share $ 0.13 $ (0.05) $ 0.27
Non-GAAP financial
measures(1) :
Adjusted net
investment income
per share $ 0.34 $ 0.31 $ 0.40
Adjusted net
realized and
unrealized gains
(losses) per
share $ (0.21) $ (0.36) $ (0.13)
Adjusted net
increase
(decrease) in net
assets resulting
from operations
per share $ 0.13 $ (0.05) $ 0.27
Base dividend
declared per share $ 0.31 $ 0.37 $ 0.37
Supplemental
dividend declared
per share $ 0.02 $ -- $ 0.02
Total investments at
fair value $ 14,955,049 $ 15,344,201 $ 16,868,782
Total debt
outstanding (net of
unamortized debt
issuance costs) $ 7,903,533 $ 8,454,559 $ 9,225,817
Net assets $ 7,031,759 $ 7,154,000 $ 7,682,397
Net asset value per
share $ 14.26 $ 14.41 $ 15.03
Net debt-to-equity 1.11x 1.13x 1.17x
(1) See Non-GAAP Financial Measures for a description of the non-GAAP
measures and the reconciliations from the most comparable GAAP financial
measures to the Company's non-GAAP measures, including on a per share
basis. The Company's management utilizes these non-GAAP financial
measures to internally analyze and assess financial results and
performance. These measures are also considered useful by management as
an additional resource for investors to evaluate the Company's ongoing
results and trends, as well as its performance, excluding non-cash income
or gains related to the OBDE Merger. The presentation of non-GAAP
measures is not intended to be a substitute for financial results
prepared in accordance with GAAP and should not be considered in
isolation.
PORTFOLIO COMPOSITION
As of June 30, 2026, the Company had investments in 229 portfolio companies across 30 industries, with an aggregate portfolio size of $15.0 billion at fair value and an average investment size of $65.3 million at fair value.
June 30, 2026 March 31, 2026
---------------------------- ---------------------------
% of
($ in thousands) Fair Value Total Fair Value % of Total
----------------- --------- --------------- ----------
Portfolio
composition:
First-lien
senior secured
debt
investments(1) $ 10,937,849 73.2 % $ 11,035,403 72.1 %
Second-lien
senior secured
debt
investments 674,223 4.5 % 773,357 5.0 %
Unsecured debt
investments 377,224 2.5 % 369,374 2.4 %
Specialty
finance debt
investments 171,254 1.1 % 159,598 1.0 %
Preferred equity
investments 262,536 1.8 % 536,853 3.5 %
Common equity
investments 714,693 4.8 % 665,746 4.3 %
Specialty
finance equity 1,426,590 9.5 % 1,414,987 9.2 %
Joint ventures 390,680 2.6 % 388,883 2.5 %
----------------- --------- --------------- ----------
Total investments $ 14,955,049 100.0 % $ 15,344,201 100.0 %
================= ========= =============== ==========
(1) The Company considers 52% and 51% of first-lien senior secured debt
investments to be unitranche loans as of June 30, 2026 and March 31,
2026, respectively.
June 30, 2026 March 31, 2026
------------- --------------
Number of portfolio companies 229 230
Percentage of debt investments at floating
rates 96.0 % 96.1 %
Percentage of senior secured debt investments 78.8 % 78.1 %
Weighted average spread over base rate of
floating rate debt investments 5.6 % 5.6 %
Weighted average total yield of accruing debt
and income-producing securities at fair
value 9.9 % 10.0 %
Weighted average total yield of accruing debt
and income-producing securities at cost 9.9 % 10.0 %
Percentage of investments on non-accrual of
the portfolio at fair value 0.8 % 1.0 %
PORTFOLIO AND INVESTMENT ACTIVITY
For the three months ended June 30, 2026, new investment commitments totaled $319 million across 5 new portfolio companies and 8 existing portfolio companies. For the three months ended March 31, 2026, new investment commitments were $676 million across 7 new portfolio companies and 16 existing portfolio companies.
For the three months ended June 30, 2026, the principal amount funded totaled $219 million and aggregate principal amount of sales and repayments totaled $747 million. For the three months ended March 31, 2026, the principal amount of new investments funded was $430 million and aggregate principal amount of sales and repayments was $1.5 billion.
For the Three Months Ended June 30,
($ in thousands) 2026 2025
---------------------- ----------------------
New investment
commitments:
Gross originations $ 357,074 $ 1,116,767
Less: Sell downs (37,750) --
---------------------- ----------------------
Total new investment
commitments $ 319,324 $ 1,116,767
---------------------- ----------------------
Principal amount of new
investments funded:
First-lien senior secured
debt investments $ 208,532 $ 587,980
Second-lien senior
secured debt
investments -- 205,340
Unsecured debt
investments -- --
Specialty finance debt
investments -- 9,813
Preferred equity
investments -- 2,914
Common equity investments -- 4,401
Specialty finance equity
investments 5,239 84,114
Joint venture investments 4,844 11,473
---------------------- ----------------------
Total principal amount of
new investments funded $ 218,615 $ 906,035
---------------------- ----------------------
Drawdowns (repayments) on
revolvers and delayed
draw term loans, net $ 210,160 $ 142,162
---------------------- ----------------------
Principal amount of
investments sold or
repaid:
First-lien senior secured
debt investments(1) $ (432,759) $ (1,612,475)
Second-lien senior
secured debt
investments (33,720) (178,056)
Unsecured debt
investments (2,040) (24,233)
Specialty finance debt
investments -- --
Preferred equity
investments (255,888) (4,933)
Common equity investments (249) (78,607)
Specialty finance equity
investments (22,043) (8,583)
Joint venture
investments -- --
---------------------- ----------------------
Total principal amount of
investments sold or
repaid $ (746,699) $ (1,906,887)
---------------------- ----------------------
Number of new investment
commitments in new
portfolio companies(2) 5 6
Average new investment
commitment amount in new
portfolio companies $ 49,525 $ 92,279
Weighted average term for
new investment
commitments (in years) 6.1 5.9
Percentage of new debt
investment commitments at
floating rates 100.0 % 99.0 %
Percentage of new debt
investment commitments at
fixed rates -- % 1.0 %
Weighted average interest
rate of new investment
commitments(3) 8.7 % 9.7 %
Weighted average spread
over applicable base rate
of new debt investment
commitments at floating
rates 4.9 % 5.4 %
(1) Includes scheduled paydowns.
(2) Number of new investment commitments represents commitments to a
particular portfolio company.
(3) Assumes each floating rate commitment is subject to the greater of the
interest rate floor (if applicable) or 3-month SOFR, which was 3.73% and
4.29% as of June 30, 2026 and 2025, respectively.
RESULTS OF OPERATIONS FOR THE SECOND QUARTER ENDED JUNE 30, 2026
Investment Income
Investment income increased to $401 million for the three months ended June 30, 2026 from $397 million for the three months ended March 31, 2026, primarily driven by the impact of higher dividend income and non-recurring other income from a realization of a preferred equity investment, offset by a decline in average investments over the period. The Company expects that investment income will vary based on a variety of factors including the pace of originations and repayments, spreads of new deployments, and base rate movements.
Expenses
Total expenses decreased to $224 million for the three months ended June 30, 2026 from $235 million for the three months ended March 31, 2026, primarily driven by a decrease in interest expense from a decline in daily average borrowings from $9.3 billion to $8.4 billion. As a percentage of total assets, professional fees, directors' fees and other general and administrative expenses remained relatively consistent period-over-period.
Liquidity and Capital Resources
As of June 30, 2026, the Company had $238 million in cash and restricted cash, $8.0 billion in total principal value of debt outstanding, including $4.2 billion of undrawn capacity(1) on the Company's credit facilities and $5.3 billion of unsecured notes. The funding mix was composed of 33.6% secured and 66.4% unsecured borrowings as of June 30, 2026 on an outstanding basis. The Company was in compliance with all financial covenants under its credit facilities as of June 30, 2026. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to take advantage of market opportunities.
(1) Reflects undrawn debt which is based on committed debt less debt
outstanding as of June 30, 2026, and may not reflect the amount currently
available due to borrowing base restrictions.
CONFERENCE CALL AND WEBCAST INFORMATION
Conference Call Information:
The conference call will be broadcast live on August 6, 2026 at 10:00 a.m. Eastern Time on the News & Events section of OBDC's website at www.blueowlcapitalcorporation.com. To pre-register for the call, please use the following link: www.blueowlcapitalcorporation.com/webcast-registration?event_id=29120. Please visit the website before the webcast to test your connection.
Participants are also invited to access the conference call by dialing one of the following numbers:
-- Domestic: (877) 737-7048 -- International: +1 (201) 689-8523
All callers will need to reference "Blue Owl Capital Corporation" once connected with the operator. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected.
Replay Information:
An archived replay will be available for 14 days via a webcast link located on the News & Events section of OBDC's website, and via the dial-in numbers listed below:
-- Domestic: (877) 660-6853 -- International: +1 (201) 612-7415 -- Access Code: 13761127
ABOUT BLUE OWL CAPITAL CORPORATION
Blue Owl Capital Corporation (NYSE: OBDC) is a specialty finance company focused on lending to U.S. middle-market companies. As of June 30, 2026, OBDC had investments in 229 portfolio companies with an aggregate fair value of $15.0 billion. OBDC has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. OBDC is externally managed by Blue Owl Credit Advisors LLC, an SEC-registered investment adviser that is an indirect affiliate of Blue Owl Capital Inc. ("Blue Owl") (NYSE: OWL) and part of Blue Owl's Credit platform.
Certain information contained herein may constitute "forward-looking statements" that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about OBDC, its current and prospective portfolio investments, its industry, its beliefs and opinions, and its assumptions. Words such as "anticipates," "expects, " "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook, " "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond OBDC's control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements including, without limitation, the risks, uncertainties and other factors identified in OBDC's filings with the SEC. Investors
should not place undue reliance on these forward-looking statements, which apply only as of the date on which OBDC makes them. OBDC does not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law.
INVESTOR CONTACTS
Investor Contact:
BDC Investor Relations
Michael Mosticchio
credit-ir@blueowl.com
Media Contact:
Head of Communications
Andrew Williams
media@blueowl.com
FINANCIAL HIGHLIGHTS
For the Three Months Ended
($ in thousands,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
------------------- ------------------- -------------------
Investments at
fair value $ 14,955,049 $ 15,344,201 $ 16,868,782
Total assets $ 15,354,604 $ 16,018,541 $ 17,398,476
Net asset value
per share $ 14.26 $ 14.41 $ 15.03
GAAP results:
Total investment
income $ 401,342 $ 396,774 $ 485,843
Net investment
income $ 176,173 $ 159,170 $ 216,708
Net increase
(decrease) in
net assets
resulting from
operations $ 65,739 $ (24,382) $ 137,506
GAAP per share
results:
Net investment
income $ 0.36 $ 0.32 $ 0.42
Net realized and
unrealized
gains (losses) $ (0.22) $ (0.37) $ (0.15)
Net increase
(decrease) in
net assets
resulting from
operations(1) $ 0.13 $ (0.05) $ 0.27
Non-GAAP
financial
measures(2) :
Adjusted total
investment
income $ 395,726 $ 390,564 $ 474,907
Adjusted net
investment
income $ 170,557 $ 152,960 $ 205,772
Adjusted net
increase
(decrease) in
net assets
resulting from
operations $ 65,739 $ (24,382) $ 137,502
Non-GAAP per
share financial
measures(2) :
Adjusted net
investment
income $ 0.34 $ 0.31 $ 0.40
Adjusted net
realized and
unrealized
gains (losses) $ (0.21) $ (0.36) $ (0.13)
Adjusted net
increase
(decrease) in
net assets
resulting from
operations(1) $ 0.13 $ (0.05) $ 0.27
Base dividend
declared per
share $ 0.31 $ 0.37 $ 0.37
Supplemental
dividend
declared per
share $ 0.02 $ -- $ 0.02
Weighted average
yield of
accruing debt
and income
producing
securities at
fair value 9.9 % 10.0 % 10.6 %
Weighted average
yield of
accruing debt
and income
producing
securities at
amortized cost 9.9 % 10.0 % 10.7 %
Percentage of
debt investments
at floating
rates 96.0 % 96.1 % 97.6 %
(1) Totals may not sum due to rounding.
(2) See Non-GAAP Financial Measures for a description of the non-GAAP
measures and the reconciliations from the most comparable GAAP financial
measures to the Company's non-GAAP measures, including on a per share
basis. The Company's management utilizes these non-GAAP financial
measures to internally analyze and assess financial results and
performance. These measures are also considered useful by management as
an additional resource for investors to evaluate the Company's ongoing
results and trends, as well as its performance, excluding non-cash income
or gains related to the OBDE Merger. The presentation of non-GAAP
measures is not intended to be a substitute for financial results
prepared in accordance with GAAP and should not be considered in
isolation.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(Amounts in thousands, except share and per share amounts)
As of June 30, 2026 As of December 31,
(Unaudited) 2025
--------------------------- -------------------------
Assets
Investments at fair
value:
Non-controlled,
non-affiliated
investments
(amortized cost of
$12,793,396 and
$14,060,097,
respectively) $ 12,439,882 $ 13,995,055
Non-controlled,
affiliated
investments
(amortized cost of
$190,543 and
$176,078,
respectively) 142,746 114,192
Controlled,
affiliated
investments
(amortized cost of
$2,129,577, and
$2,181,604,
respectively) 2,372,421 2,361,646
--------------------------- -------------------------
Total investments at
fair value (amortized
cost of $15,113,516
and $16,417,779,
respectively) 14,955,049 16,470,893
Cash (restricted cash
of $20,399 and
$47,448,
respectively) 237,438 558,703
Foreign cash (cost of
$625 and $9,722,
respectively) 611 9,839
Interest and dividend
receivable 91,333 104,576
Receivable from a
controlled
affiliate 33,012 26,846
Prepaid expenses and
other assets 37,161 15,508
--------------------------- -------------------------
Total Assets $ 15,354,604 $ 17,186,365
--------------------------- -------------------------
Liabilities
Debt (net of
unamortized debt
issuance costs of
$101,772 and
$93,186,
respectively) $ 7,903,533 $ 9,300,076
Distribution payable 152,874 184,877
Management fee
payable 57,348 63,145
Incentive fee payable 36,156 38,899
Payables to
affiliates 8,457 12,572
Accrued expenses and
other liabilities 164,477 189,517
--------------------------- -------------------------
Total Liabilities $ 8,322,845 $ 9,789,086
--------------------------- -------------------------
Commitments and
contingencies (Note
8)
Net Assets
Common shares $0.01
par value,
1,000,000,000 shares
authorized;
493,142,569 and
499,448,499 shares
issued and
outstanding,
respectively $ 4,931 $ 4,994
Additional
paid-in-capital 7,442,001 7,512,234
Accumulated
undistributed
(overdistributed)
earnings (415,173) (119,949)
--------------------------- -------------------------
Total Net Assets $ 7,031,759 $ 7,397,279
--------------------------- -------------------------
Total Liabilities and
Net Assets $ 15,354,604 $ 17,186,365
=========================== =========================
Net Asset Value Per
Share $ 14.26 $ 14.81
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------------
2026 2025 2026 2025
--------------- -------------- -------------- --------------
Investment Income
Investment income
from
non-controlled,
non-affiliated
investments:
Interest income $ 272,242 $ 384,762 $ 564,166 $ 741,225
Payment-in-kind
("PIK") interest
income 29,145 29,581 56,379 64,973
Dividend income 17,971 20,810 38,180 42,341
Other income 19,960 5,268 23,118 10,858
--------------- -------------- -------------- --------------
Total investment
income from
non-controlled,
non-affiliated
investments 339,318 440,421 681,843 859,397
--------------- -------------- -------------- --------------
Investment income
from
non-controlled,
affiliated
investments:
Interest income 310 219 702 834
PIK interest
income 169 865 257 1,904
Dividend income 3,575 555 6,770 555
Other income 24 34 50 70
--------------- -------------- -------------- --------------
Total investment
income from
non-controlled,
affiliated
investments 4,078 1,673 7,779 3,363
--------------- -------------- -------------- --------------
Investment income
from controlled,
affiliated
investments:
Interest income 10,638 9,847 18,635 18,799
PIK interest
income 2,272 -- 6,431 --
Dividend income 44,678 33,869 82,867 68,874
Other income 358 33 561 56
--------------- -------------- -------------- --------------
Total investment
income from
controlled,
affiliated
investments 57,946 43,749 108,494 87,729
--------------- -------------- -------------- --------------
Total Investment
Income 401,342 485,843 798,116 950,489
--------------- -------------- -------------- --------------
Operating
Expenses
Interest expense $ 122,983 $ 151,571 $ 257,299 $ 300,103
Management fees,
net(1) 57,346 64,586 118,039 126,744
Performance based
incentive fees 36,156 43,649 68,568 84,678
Professional fees 4,305 3,538 8,511 7,070
Directors' fees 445 320 890 640
Other general and
administrative 3,222 3,185 6,307 7,212
--------------- -------------- -------------- --------------
Total Operating
Expenses 224,457 266,849 459,614 526,447
--------------- -------------- -------------- --------------
Net Investment
Income (Loss)
Before Taxes 176,885 218,994 338,502 424,042
--------------- -------------- -------------- --------------
Income tax
expense
(benefit),
including excise
tax expense
(benefit) 712 2,286 3,159 6,032
--------------- -------------- -------------- --------------
Net Investment
Income (Loss)
After Taxes $ 176,173 $ 216,708 $ 335,343 $ 418,010
--------------- -------------- -------------- --------------
Net Realized and
Change in
Unrealized Gain
(Loss)
Net change in
unrealized gain
(loss):
Non-controlled,
non-affiliated
investments $ (110,049) $ (125,752) $ (274,474) $ 70,764
Non-controlled,
affiliated
investments (9,673) (14,711) 14,091 (15,411)
Controlled,
affiliated
investments 20,372 37,485 62,802 34,095
Translation of
assets and
liabilities in
foreign
currencies and
other
transactions 4,049 13,351 780 17,367
Income tax
(provision)
benefit (207) (200) 500 (1,762)
--------------- -------------- -------------- --------------
Total Net Change
in Unrealized
Gain (Loss) (95,508) (89,827) (196,301) 105,053
--------------- -------------- -------------- --------------
Net realized gain
(loss):
Non-controlled,
non-affiliated
investments $ (9,477) $ 20,834 $ 1,196 $ (131,098)
Non-controlled,
affiliated
investments 1,427 -- (37,795) --
Controlled,
affiliated
investments (6,032) -- (62,388) --
Foreign currency
transactions (844) (10,209) 1,302 (11,828)
--------------- -------------- -------------- --------------
Total Net Realized
Gain (Loss) (14,926) 10,625 (97,685) (142,926)
--------------- -------------- -------------- --------------
Total Net Realized
and Change in
Unrealized Gain
(Loss) (110,434) (79,202) (293,986) (37,873)
--------------- -------------- -------------- --------------
Net Increase
(Decrease) in
Net Assets
Resulting from
Operations $ 65,739 $ 137,506 $ 41,357 $ 380,137
Earnings Per Share
- Basic and
Diluted $ 0.13 $ 0.27 $ 0.08 $ 0.76
=============== ============== ============== ==============
Weighted Average
Shares
Outstanding -
Basic and
Diluted 495,377,115 511,048,237 497,130,632 502,981,791
=============== ============== ============== ==============
(1) Refer to "Note 3 -- Agreements and Related Party Transactions" for
additional details on management fee waiver.
NON-GAAP FINANCIAL MEASURES
On a supplemental basis, the Company is disclosing certain adjusted financial measures, each of which is calculated and presented on a basis of methodology other than in accordance with GAAP ("non-GAAP"). The Company's management utilizes these non-GAAP financial measures to internally analyze and assess financial results and performance. These measures are also considered useful by management as an additional resource for investors to evaluate the Company's ongoing results and trends, as well as its performance, excluding non-cash income or gains related to the OBDE Merger. The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
-- "Adjusted Total Investment Income" and "Adjusted Total Investment Income
Per Share": represents total investment income excluding any amortization
or accretion of interest income resulting solely from the cost basis
established by ASC 805 (see below) for the assets acquired in connection
with the OBDE Merger.
-- "Adjusted Net Investment Income" and "Adjusted Net Investment Income Per
Share": represents net investment income, excluding any amortization or
accretion of interest income resulting solely from the cost basis
established by ASC 805 (see below) for the assets acquired in connection
with the OBDE Merger.
-- "Adjusted Net Realized and Unrealized Gains (Losses)" and "Adjusted Net
Realized and Unrealized Gains (Losses) Per Share": represents net
realized and unrealized gains (losses) excluding any net realized and
unrealized gains (losses) resulting solely from the cost basis
established by ASC 805 (see below) for the assets acquired in connection
with the OBDE Merger.
-- "Adjusted Net Increase (Decrease) in Net Assets Resulting from
Operations" and "Adjusted Net Increase (Decrease) in Net Assets Resulting
from Operations Per Share": represents the sum of (i) Adjusted Net
Investment Income and (ii) Adjusted Net Realized and Unrealized Gains
(Losses).
The OBDE Merger was accounted for as an asset acquisition in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations--Related Issues ("ASC 805"). The consideration paid to the stockholders of OBDE was allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than "non-qualifying" assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired investments prior to the OBDE Merger. Additionally, immediately following the completion of the OBDE Merger, the acquired investments were marked to their respective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation/depreciation. The new cost basis established by ASC 805 on debt investments acquired will accrete/amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation/depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete/amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain/loss with a corresponding reversal of the unrealized appreciation/depreciation on disposition of such equity investments acquired.
The Company's management uses the non-GAAP financial measures described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investments pursuant to ASC 805. The Company's management believes "Adjusted Total Investment Income", "Adjusted Total Investment Income Per Share", "Adjusted Net Investment Income" and "Adjusted Net Investment Income Per Share" are useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to the income resulting from the new cost basis of the investments acquired in the OBDE Merger because these amounts do not impact the fees payable to Blue Owl Credit Advisors LLC (the "Adviser") under the fourth amended and restated investment advisory agreement (the "Investment Advisory Agreement") between the Company and the Adviser, and specifically as its relates to "Adjusted Net Investment Income" and "Adjusted Net Investment Income Per Share". In addition, the Company's management believes that "Adjusted Net Realized and Unrealized Gains (Losses)", "Adjusted Net Realized and Unrealized Gains (Losses) Per Share", "Adjusted Net Increase (Decrease) in Net Assets Resulting from Operations" and "Adjusted Net Increase (Decrease) in Net Assets Resulting from Operations Per Share" are useful to investors as they exclude the non-cash income and gain/loss resulting from the OBDE Merger and are used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics more closely align the Company's key financial measures with the calculation of incentive fees payable to the Adviser under the Investment Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the benefit of the Adviser absent such exclusion).
The following table provides a reconciliation of total investment income (the most comparable U.S. GAAP measure) to adjusted total investment income for the periods presented:
For the Three Months Ended
----------------------------------------------------------------------------------
($ in millions,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
---------------- -------------------------- -------------------------- --------------------------
Amount Per Share Amount Per Share Amount Per Share
------------ ------------ ------------ ------------ ------------ ------------
Total
investment
income $ 401 $ 0.81 $ 397 $ 0.80 $ 486 $ 0.95
Less: purchase
discount
amortization (6) (0.01) (6) (0.01) (11) (0.02)
------------ ------------ ------------ ------------ ------------ ------------
Adjusted total
investment
income(1) $ 396 $ 0.80 $ 391 $ 0.78 $ 475 $ 0.93
The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented:
For the Three Months Ended
----------------------------------------------------------------------------------
($ in millions,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
---------------- -------------------------- -------------------------- --------------------------
Amount Per Share Amount Per Share Amount Per Share
------------ ------------ ------------ ------------ ------------ ------------
Net investment
income $ 176 $ 0.36 $ 159 $ 0.32 $ 217 $ 0.42
Less: purchase
discount
amortization (6) (0.01) (6) (0.01) (11) (0.02)
------------ ------------ ------------ ------------ ------------ ------------
Adjusted net
investment
income(1) $ 171 $ 0.34 $ 153 $ 0.31 $ 206 $ 0.40
The following table provides a reconciliation of net realized and unrealized gains (losses) (the most comparable U.S. GAAP measure) to adjusted net realized and unrealized gains (losses) for the periods presented:
For the Three Months Ended
----------------------------------------------------------------------------------------
($ in millions,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
---------------- ---------------------------- ---------------------------- ----------------------------
Amount Per Share Amount Per Share Amount Per Share
------------- ------------- ------------- ------------- ------------- -------------
Net realized
and unrealized
gains
(losses) $ (110) $ (0.22) $ (184) $ (0.37) $ (79) $ (0.15)
Net change in
unrealized
(appreciation)
depreciation
due to the
purchase
discount 5 0.01 5 0.01 11 0.02
Realized gain
(loss) due to
the purchase
discount(2) 1 -- 1 -- -- --
------------- ------------- ------------- ------------- ------------- -------------
Adjusted net
realized and
unrealized
gains
(losses)(1) $ (105) $ (0.21) $ (177) $ (0.36) $ (68) $ (0.13)
The following table provides a reconciliation of net increase (decrease) in net assets resulting from operations (the most comparable U.S. GAAP measure) to adjusted net increase (decrease) in net assets resulting from operations for the periods presented:
For the Three Months Ended
($ in millions,
except per share
amounts) June 30, 2026 March 31, 2026 June 30, 2025
---------------- -------------------------- ---------------------------- --------------------------
Amount Per Share Amount Per Share Amount Per Share
------------ ------------ ------------- ------------- ------------ ------------
Net increase
(decrease) in
net assets
resulting from
operations $ 66 $ 0.13 $ (24) $ (0.05) $ 138 $ 0.27
Less: purchase
discount
amortization (6) (0.01) (6) (0.01) (11) (0.02)
Net change in
unrealized
(appreciation)
depreciation
due to the
purchase
discount 5 0.01 5 0.01 11 0.02
Realized gain
(loss) due to
the purchase
discount(2) 1 -- 1 -- -- --
------------ ------------ ------------- ------------- ------------ ------------
Adjusted net
increase
(decrease) in
net assets
resulting from
operations(1) $ 66 $ 0.13 $ (24) $ (0.05) $ 138 $ 0.27
(1) Totals may not sum due to rounding.
(2) Per share amounts round down to less than $0.01.
View original content:https://www.prnewswire.com/news-releases/blue-owl-capital-corporation-announces-june-30-2026-financial-results-302844165.html
SOURCE Blue Owl Capital Corporation
Comments