Blue Owl Capital

Blue Owl Capital (OBDC) Q1 2025 Earnings

Reported May 7, 2025 at 4:35 PM ET · SEC Source

Q1 25 EPS

$0.39

MISS 9.58%

Est. $0.43

Q1 25 Revenue

$464.6M

MISS 1.05%

Est. $469.6M

vs S&P Since Q1 25

-44.5%

TRAILING MARKET

OBDC -11.4% vs S&P +33.0%

Market Reaction

Did OBDC Beat Earnings? Q1 2025 Results

Blue Owl Capital delivered a disappointing first quarter, missing on both top and bottom lines as the aftermath of its transformative OBDE merger weighed heavily on per-share metrics. Adjusted net investment income came in at $0.39 per share, falling… Read more Blue Owl Capital delivered a disappointing first quarter, missing on both top and bottom lines as the aftermath of its transformative OBDE merger weighed heavily on per-share metrics. Adjusted net investment income came in at $0.39 per share, falling 9.58% short of the $0.43 consensus estimate, while revenue of $464.65 million edged 1.05% below expectations, even as that figure represented a robust 48.3% surge year-over-year. The culprit was dilution, with roughly 121 million additional weighted average shares issued in the January merger compressing per-share earnings despite total GAAP net investment income climbing to $201.30 million from $184.25 million the prior quarter. The expanded portfolio, now spanning $17.69 billion across 236 companies, underscores the BDC's enhanced scale, though NAV per share slipped to $15.14 and non-accruals ticked up to 0.8%. Some analysts view widening credit spreads as a net positive for future yield profitability, and management expressed confidence in the portfolio's defensive positioning, though with weighted average yields already compressing to 10.7%, the pace of originations and rate movements will be closely watched heading into the second quarter.

Key Takeaways

  • Merger with OBDE significantly expanded asset base and investment income
  • Increase in interest income from larger par value of debt investments acquired through the Merger
  • 96.5% of debt investments at floating rates providing interest rate sensitivity
  • 10.2% annualized return on equity in Q1 2025
  • 77.5% of portfolio in first-lien senior secured debt providing defensive positioning
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OBDC YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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OBDC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“OBDC's first quarter results reflect a solid start to the year, delivering a 10.2% annualized return on equity, supported by the continued resilience and quality of our portfolio.”

— Craig W. Packer, Q1 2025 Earnings Press Release