Blue Owl Capital Corporation (OBDC) Q4 2025 earnings summary

Executive summary

• Completed a $1.4 billion asset sale at 99.7%–99.8% of book value, including $400 million from this portfolio, validating portfolio marks and credit quality.

• Repurchased $148 million of stock at a 14% discount to NAV, the largest in company history, and authorized a new $300 million buyback program.

• Net asset value (NAV) per share was $14.81 at 12/31/2025, down from $14.89, mainly due to credit-related markdowns, partially offset by share repurchases.

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

• Portfolio remains diversified across 30 industries, with strong performance in software and healthcare sectors.

Financial highlights

• Adjusted net investment income (NII) per share was $0.36 for Q4 2025, consistent with the prior quarter; GAAP NII per share was $0.38.

• Total investment income for Q4 2025 was $448 million; adjusted total investment income was $439.5 million.

• Regular dividend declared for Q4 2025 and Q1 2026 was $0.37 per share, with a 10.0% annualized yield.

• Net assets were $7.40 billion, with investments at fair value totaling $16.5 billion across 234 companies.

• Net realized and unrealized losses per share were ($0.14); adjusted losses were ($0.13) per share.

Outlook and guidance

• Asset sale expected to reduce leverage, increase portfolio diversity, and create capacity for new investments.

• Expect forward earnings to be impacted by lower base rates and tighter spreads, compressing asset yields and NII returns.

• Will continue to evaluate the dividend each quarter as rate and spread impacts materialize.