Did Golub Capital BDC beat or miss consensus estimates last quarter?

What were the key takeaways from Golub Capital BDC’s earnings call?

What factors drove the changes in Golub Capital BDC's revenue and profit?

What is the revenue and EPS growth rate for Golub Capital BDC year over year?

What is Golub Capital BDC's gross profit margin?

What is Golub Capital BDC's latest dividend and current dividend yield?

What guidance did Golub Capital BDC's management provide for the next earnings period?

What were the key takeaways from Golub Capital BDC's earnings call?

- **Resilient performance despite headwinds**: 10.4% ROE, 90% portfolio in top credit tiers, and 0.3% nonaccruals highlight strong credit management.
- **Market challenges**: Narrowed spreads (10.4% yield), elevated defaults, and subprime consumer stress contrast with middle market resilience.
- **Strategic differentiation**: Industry-leading 5.6% borrowing costs, 4.8% net spread, and 92% first lien loans reinforce competitive edge.
- **Outlook focus**: Capital spending optimism vs. subprime consumer caution; spreads likely to stay compressed unless broad macro reset occurs.

**【CEO Opening Remarks】**
- **Strong fiscal year 2025 performance**: Adjusted NII per share of $0.39 (10.4% ROE) and $1.65 cumulative distributions (10.9% of year-end NAV). NAV per share of $14.97, surpassing IPO level.
- **Challenges in direct lending market**: Narrowed spreads, declining base rates, and elevated credit stress in leveraged loans. GBDC's portfolio spreads declined 20bps to 10.4%, offset by lower borrowing costs (5.6% annualized).
- **Dividend policy update**: $0.39 Q1 2026 distribution declared; Board to revisit policy early 2026, balancing stable NAV, excise taxes, and sustainable yield.

**【Tim Topicz - Operating Performance】**
- **Credit quality**: 90% of portfolio in top two internal ratings, nonaccruals at 0.3% (industry average ~1.5%). Successful restructurings and write-downs led to $0.03 per share loss.
- **Origination activity**: $60M new commitments vs. $371M repayments/exits. 3.8% deal close rate, 42% LTV, 90% sole/lead lender. Focused on middle market (median EBITDA $61M) with selective larger cap exposure (e.g., $4.5B Clearlake deal).
- **Liquidity**: $1.2B available, 80% floating-rate debt, and $40.6M shares repurchased FY25.

**【CFO Ericson - Financial Results】**
- **Net asset value**: $14.97 as of Q4, down 0.2% from prior quarter. Investment income yield 10.4%, borrowing cost 5.6%, net spread 4.8%.
- **Portfolio diversification**: 87% one-stop loans, 417 distinct borrowers, 1.5% largest exposure. 92% first lien senior secured loans across resilient industries.
- **Leverage management**: 1.23x debt-to-equity, within 0.85-1.25x target. $250M floating-rate notes issued at SOFR + 172bps.

**【Q&A Highlights】**
- **Co-investment trends**: No change in availability; 400+ equity co-invests with strong IRR track record. Focus on private equity-backed middle market deals.
- **Economic outlook**: Optimism in capital spending (tax incentives), concern over subprime consumer stress (delinquencies in credit cards, mortgages, autos).
- **Spread compression**: Driven by investor sentiment, not supply/demand imbalance. Potential spread widening requires broad sentiment shift, likely tied to macroeconomic reset.

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