Golub Capital BDC Q3 Earnings Call Highlights: Strong Portfolio Performance Despite Negative Trends

Golub Capital BDC Inc reported Q3 2025 earnings with adjusted NII per share at $0.39, a 10.4% return on equity. The investment portfolio grew 4% to $9 billion, with 90% in the highest performing internal rating categories. However, adjusted net income per share included $0.05 of losses, and net asset value per share decreased by $0.04. Net debt to equity increased to 1.26, and the investment income yield fell to 10.6%.

Golub Capital BDC Inc reported its third-quarter 2025 earnings, with adjusted net income per share (NII) at $0.39, representing a 10.4% return on equity. The investment portfolio grew by 4% to nearly $9 billion, with 90% of the portfolio in the highest performing internal rating categories. However, the earnings included $0.05 per share of adjusted net realized and unrealized losses, and the net asset value per share decreased by $0.04 to $15. Additionally, net debt to equity increased to 1.26, and the investment income yield fell to 10.6% [1].

The company's performance was mixed, with strong credit performance and portfolio growth, but also faced challenges from muted M&A activity and lower spreads on debt investments. CEO David Gollop noted that the company's leverage was higher than usual at the quarter-end but expected to remain within target ranges. The CEO also emphasized the company's focus on proactive loan management and maintaining a conservative underwriting approach [2].

Golub Capital BDC's earnings call highlighted the company's commitment to stability and managing risks in a challenging market environment. Despite a revenue miss, the company maintained a strong fundamentals with a P/E ratio of 12.46 and impressive revenue growth of 28.08% over the last twelve months. The company's beta of 0.53 indicates lower volatility compared to the broader market.

The stock price decreased by 0.75% in premarket trading following the earnings announcement, reflecting a cautious investor sentiment. The stock remains within its 52-week range, with a low of $12.68 and a high of $16.01. Looking ahead, Golub Capital BDC anticipates a protracted credit cycle and a slow improvement in the M&A environment, with a focus on maintaining stability and managing risks [2].

References:
[1] https://uk.finance.yahoo.com/news/golub-capital-bdc-inc-gbdc-150049547.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-golub-capital-bdc-meets-eps-forecasts-in-q3-2025-93CH-4171065