Golub Capital BDC (GBDC) Q1 2026 earnings summary

Executive summary

• Adjusted net investment income per share was $0.38, with adjusted NII ROE of 10.2% for the quarter ended December 31, 2025, despite sector headwinds and lower origination spreads.

• Adjusted net income per share was $0.25, with an adjusted ROE of 6.7%.

• Net asset value per share decreased to $14.84 from $14.97 sequentially, mainly due to unrealized losses.

• Portfolio at fair value was $8.64 billion, diversified across 420 companies, primarily in one stop and senior secured loans.

• Quarterly distribution was reset to $0.33 per share, with a variable supplemental dividend policy maintained.

Financial highlights

• Total investment income for the quarter was $207.0 million, with net investment income after taxes at $95.8 million.

• Net realized and unrealized losses on investments totaled $30.5 million, with adjusted net realized/unrealized loss per share at $(0.13).

• Weighted average investment income yield was 10%, down 40 basis points sequentially.

• Portfolio size at quarter-end was $8.6 billion at fair value, down 1.5% quarter-over-quarter.

• Distributions declared per share were $0.39 for the quarter.

Outlook and guidance

• Management expects industry headwinds to persist, with continued pressure on ROEs and credit quality, and is planning for a challenging 2026.

• The board retained the supplemental dividend policy, distributing 50% of earnings above the $0.33 base dividend, subject to NAV stability.

• Asset coverage for borrowings was 178.9%, above the 150% regulatory minimum.