What does Blue Owl Capital do and what are its main business segments?

What is Blue Owl Capital's gross profit margin?

What is Blue Owl Capital's latest dividend and current dividend yield?

What guidance did Blue Owl Capital's management provide for the next earnings period?

What were the key takeaways from Blue Owl Capital's earnings call?

What factors drove the changes in Blue Owl Capital's revenue and profit?

What were the key takeaways from Blue Owl Capital’s earnings call?

Did Blue Owl Capital beat or miss consensus estimates last quarter?

- **Merger Accretion**: OBDC II merger adds $1 billion in assets, with expected 15-20bps ROE accretion from cost savings and asset yield differences.
- **Dividend Sustainability**: Q4 base dividend of $0.37 supported by $0.31 spillover income; 2026 outlook for potential reduction in a lower-rate environment.
- **Share Buyback**: $200 million buyback program to capitalize on 82% NAV discount, with no lockups for OBDC II shareholders.
- **Market Momentum**: Q3 originations of $1.3 billion, 33% pipeline growth in September, and 89% senior secured portfolio driving credit strength.
- **Portfolio Resilience**: 1.3% nonaccrual rate, 2.0x interest coverage ratio, and mid-single-digit EBITDA growth highlight credit quality.

**【CEO Summary Section】**
- Reported adjusted NII per share of $0.36, reflecting ROE of 9.5%, consistent with long-term averages despite a lower rate environment.
- Announced merger with OBDC II, adding $1 billion in net assets and enhancing scale with a combined portfolio of $18.9 billion across 239 companies.
- Emphasized direct lending focus, with 89% of portfolio in senior secured loans, and below-industry-average nonaccrual rate of 1.3%.
- Highlighted portfolio resilience, with average revenue and EBITDA growth of mid- to high single digits, and interest coverage ratio improving to 2.0x.

**【CFO Financial Commentary】**
- Q3 total net assets of $8 billion, with net leverage of 1.22x, within target range of 0.9-1.25x.
- Adjusted NII per share of $0.36, down from $0.40 due to lower nonrecurring income ($0.02 vs. $0.05 in Q2).
- Board declared a $0.37 base dividend for Q4, with spillover income of $0.31 supporting sustainability.
- Liquidity remains strong with $3 billion in cash and capacity, and no material short-term maturities.
- Merger with OBDC II expected to be accretive, with $5 million in first-year cost savings and potential for lower-cost capital over time.

**【Q&A Highlights】**
- **Merger Impact**: OBDC II's higher nonaccruals (60bps above OBDC) are immaterial due to overlap in portfolio names. Expected ROE accretion of 15-20bps from synergies and asset yield differences.
- **Dividend Outlook**: Base dividend may adjust in 2026 as rates decline, with historical reference point of $0.33 in a 3% rate environment. Current dividend of $0.37 is $0.01 above NII, supported by spillover income.
- **Share Repurchases**: New $200 million buyback program to address undervaluation (82% of NAV). No lockups for OBDC II shareholders, but tender history suggests limited selling pressure.
- **Market Activity**: Q3 originations of $1.3 billion, with 40% add-ons. Pipeline up 33% in September, driven by M&A activity and syndicated market spread tightening.
- **Credit Performance**: Nonaccruals at 1.3%, stable amendment activity, and average revolver draw below 20%, reflecting portfolio resilience.


OBDC

OBDC fundamentals

You can ask Aime