Blue Owl Capital Corporation (OBDC) Q1 2026 earnings summary

Executive summary

• Net asset value (NAV) per share declined to $14.41 from $14.81 at year-end 2025, reflecting unrealized losses from credit spread widening and distributions in excess of net investment income.

• Adjusted net investment income (NII) per share was $0.31 and GAAP NII per share was $0.32 for Q1 2026, both down from the prior quarter.

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

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

• Portfolio at fair value was $15.3 billion, diversified across 230 companies in 30 industries, with a focus on large, non-cyclical, defensive businesses.

Financial highlights

• Total investment income for Q1 2026 was $396.8 million; adjusted total investment income was $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, mainly due to credit spread widening and asset sales.

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

• Non-accrual rate was 2.0% at cost and 1.0% at fair value, with no new non-accruals reported.

Outlook and guidance

• Management expects a more attractive investment environment ahead, with wider spreads and improved deal terms.

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

• Focus remains on disciplined underwriting, strong liquidity, and redeploying capital into higher-spread opportunities.