Blue Owl Capital Corporation (OBDC) Q1 2026 earnings summary

Executive summary

• Adjusted net investment income (NII) per share was $0.31 and GAAP NII per share was $0.32 for Q1 2026, with net asset value (NAV) per share declining to $14.41 from $14.81, mainly due to unrealized losses from credit spread widening.

• Net investment income after taxes was $159.2 million, down from $201.3 million in Q1 2025, reflecting lower interest income and a smaller portfolio.

• Moody’s upgraded the credit rating to Baa2 in January 2026, citing improved credit profile and liability management.

• The base dividend was reduced to $0.31 per share for Q2 2026, with a supplemental dividend framework maintained.

• A $300 million stock repurchase program was approved, with $35 million repurchased in Q1 2026.

Financial highlights

• Total investment income for Q1 2026 was $396.8 million, with adjusted total investment income at $390.6 million.

• Net investment income was $159.2 million; adjusted NII was $153.0 million.

• Net realized and unrealized losses were $(183.6) million, primarily due to credit spread widening and asset sales.

• Net leverage ratio improved to 1.13x debt-to-equity, the lowest in two years.

• Total investments at fair value were $15.3 billion, down from $16.5 billion at year-end 2025.

Outlook and guidance

• Management expects a more attractive investment environment with wider spreads and stabilized base rates, focusing on disciplined underwriting and strong liquidity.

• The $0.31 dividend is expected to serve as a floor, with potential for supplemental dividends if NII exceeds this level.

• Repayments and refinancing activity are expected to provide opportunities to redeploy capital at higher spreads.