OBDC Blue Owl Capital (OBDC) Q1 FY26 earnings call
Blue Owl Capital Corporation faced a challenging Q1 FY26, with lower base rates, tighter spreads, and minimal fee income impacting adjusted NII and leading to a dividend reduction. Despite these headwinds, the underlying credit quality of the portfolio remains robust, evidenced by declining nonaccruals and stable borrower performance. The company strategically reduced leverage and enhanced liquidity, positioning itself to capitalize on a more attractive investment environment with widening spreads and improved supply-demand dynamics.
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OBDC operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Fundings | $525MIn the first quarter, OBDC had fundings of $525 million against an almost $1.5 billion of repayments and sales, resulting in an ending net leverage of 1.13x, our lowest level in two years.Source: earnings call transcript | $429MOBDC had fundings of $429 million against $747 million of repayments, resulting in ending net leverage of 1.11x.Source: earnings call transcript | -18.3% |
| Average loan-to-value | 47%Our average LTV across the portfolio sits at 47%, implying that over half of enterprise value would need to be impaired before we incur any losses.Source: earnings call transcript | 47%LTVs also remained stable this quarter at 47%, providing ample cushion below our loans in the capital structure.Source: earnings call transcript | 0 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.