Gross margins have demonstrated significant instability, contracting from 100% in early 2024 to 75.1% by 2026Q1, which suggests potential pressure on the firm's core investment yield.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Sales/Revenue | 218.78M | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 148.34M | 184.14M | 123.59M | 289.2M | 219.13M | 86.79M | 17.16M | 75.65M | 80.22M | 123M | 113.68M | 121.29M | 104.51M | 101.03M | 90.37M | 70.59M | 28.64M | 20.86M | 17.13M | 13.11M | 6.44M | 4.89M | 0 |
| Gross Margin % | 67.8% | 74% | 59.1% | 100% | 100% | 72.44% | 46.41% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | - |
| Gross Profit Growth % | - | 49% | -57.27% | 31.98% | 152.49% | 405.76% | -77.32% | -5.7% | -34.78% | 8.2% | -6.27% | 16.05% | 3.45% | 11.8% | 28.02% | 146.52% | 37.27% | 21.77% | 30.73% | 103.4% | 31.63% | - | - |
| Operating Expenses | 14.88M | -27.82M | 9.83M | 74.68M | 46M | 9.1M | 8.93M | 19M | 28.8M | 21.51M | 21.08M | 22.9M | 21.32M | 19.26M | 13.34M | 12M | 8M | 7M | 7M | 4M | 115K | 2M | 0 |
| OpEx % of Revenue | - | -11.18% | 4.7% | 25.82% | 20.99% | 7.59% | 24.16% | 25.11% | 35.9% | 17.48% | 18.55% | 18.88% | 20.39% | 19.07% | 14.76% | 17% | 27.94% | 33.55% | 40.86% | 30.52% | 1.78% | 40.86% | - |
| Selling, General & Admin | 20.17M | 7.82M | 9.83M | 74.68M | 46M | 9.1M | 5.79M | 19M | 28.8M | 21.51M | 21.08M | 22.9M | 21.32M | 19.26M | 16.29M | 11.97M | 7.69M | 6.45M | 6.25M | 4.13M | 115K | 1.63M | 0 |
| SG&A % of Revenue | - | 3.14% | 4.7% | 25.82% | 20.99% | 7.59% | 15.67% | 25.11% | 35.9% | 17.48% | 18.55% | 18.88% | 20.39% | 19.07% | 18.03% | 16.95% | 26.85% | 30.91% | 36.51% | 31.49% | 1.78% | 33.33% | - |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 133.46M | 211.96M | 113.75M | 214.52M | 173.13M | 77.69M | 8.23M | 56.65M | 51.43M | 101.5M | 92.6M | 98.38M | 83.2M | 81.76M | 74.08M | 67.79M | 20.15M | 14.05M | 10.62M | 8.87M | -103 | 3.17M | -36.72K |
| Operating Margin % | 61% | 85.18% | 54.4% | 74.18% | 79.01% | 64.85% | 22.26% | 74.89% | 64.1% | 82.52% | 81.45% | 81.12% | 79.61% | 80.93% | 81.97% | 96.04% | 70.37% | 67.34% | 62% | 67.65% | -0% | 64.83% | -1.85% |
| Operating Income Growth % | - | 86.33% | -46.97% | 23.91% | 122.84% | 844.14% | -85.47% | 10.16% | -49.33% | 9.61% | -5.88% | 18.25% | 1.75% | 10.38% | 9.27% | 236.45% | 43.43% | 32.26% | 19.81% | 8607571.84% | -100% | 8741.67% | - |
| EBITDA | 133.66M | 190.88M | 113.75M | 214.52M | 173.13M | 77.69M | 8.23M | 56.65M | 51.45M | 101.56M | 92.67M | 98.44M | 83.24M | 81.8M | 74.11M | 67.82M | 20.17M | 14.07M | 10.64M | 8.87M | 13.77M | 1.16M | -36.72K |
| EBITDA Margin % | 61.09% | 76.71% | 54.4% | 74.18% | 79.01% | 64.85% | 22.26% | 74.89% | 64.14% | 82.57% | 81.52% | 81.17% | 79.65% | 80.97% | 82.01% | 96.08% | 70.43% | 67.45% | 62.1% | 67.71% | 213.77% | 23.66% | -1.85% |
| EBITDA Growth % | 30.43% | 67.8% | -46.97% | 23.91% | 122.84% | 844.14% | -85.47% | 10.1% | -49.34% | 9.6% | -5.87% | 18.26% | 1.76% | 10.38% | 9.27% | 236.26% | 43.34% | 32.26% | 19.9% | -35.58% | 1089.06% | 3254.54% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27.41K | 65.86K | 70.11K | 60.24K | 48.36K | 40.15K | 33.04K | 27.3K | 19.55K | 22.55K | 16.68K | 7.81K | 0 | 0 | 0 |
| EBIT | 133.66M | 190.88M | 113.75M | 214.52M | 173.13M | 77.69M | 8.23M | 56.65M | 51.43M | 101.5M | 92.6M | 98.38M | 83.2M | 81.76M | 0 | 48.01M | -19.55K | 13.7M | 7.77M | 6.42M | 13.77M | 1.16M | -36.72K |
| Net Interest Income | 148.46M | 176.43M | 142.63M | 154.17M | 117.14M | 80.42M | 47.13M | 47.39M | 50.27M | 80.41M | 76.25M | 76.19M | 68.84M | 67.5M | 73.96M | 52.46M | 28.2M | 20.86M | 17.13M | 10.66M | 4.89M | 4.42M | 0 |
| Interest Income | 232.27M | 261.5M | 228.14M | 238.88M | 174M | 113.44M | 66.95M | 73.49M | 74.16M | 109.67M | 102.97M | 102.95M | 104.51M | 101.03M | 90.37M | 63.36M | 35.99M | 27.76M | 21.36M | 12.74M | 280K | 5.96M | 0 |
| Interest Expense | 83.82M | 85.08M | 85.52M | 84.71M | 56.87M | 33.01M | 19.81M | 26.1M | 23.89M | 29.26M | 26.72M | 26.75M | 21.18M | 20.23M | 16.41M | 10.11M | 7.35M | 6.9M | 4.23M | 2.07M | 1.83M | 1.54M | 0 |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 93.22M | 105.81M | 113.75M | 129.69M | 6.09M | 77.69M | 8.23M | 58.53M | -115.21M | -27.78M | 34.69M | 48.24M | 31.48M | 81.75M | 60.62M | 57.68M | 25.61M | 4.19M | 7.77M | 8.87M | 0 | 3.17M | -1.26M |
| Pretax Margin % | 42.61% | 42.52% | 54.4% | 44.84% | 2.78% | 64.85% | 22.26% | 77.37% | -143.62% | -22.58% | 30.52% | 39.77% | 30.13% | 80.92% | 67.08% | 81.71% | 89.44% | 20.07% | 45.36% | 67.65% | - | 64.83% | -63.49% |
| Income Tax | 3.88M | 3.88M | 3.47M | 1.69M | 1.41M | 8K | 52K | 340.33K | -932.17K | 871.41K | 435.25K | 384.03K | 3.12M | 539.56K | 551.83K | 908.42K | 220.74K | 149.84K | 133.01K | 52.6K | 103 | 0 | 0 |
| Effective Tax Rate % | 4.16% | 3.67% | 3.05% | 1.3% | 23.1% | 0.01% | 0.63% | 0.58% | 0.81% | -3.14% | 1.25% | 0.8% | 9.92% | 0.66% | 0.91% | 1.57% | 0.86% | 3.58% | 1.71% | 0.59% | - | 0% | 0% |
| Net Income | 89.34M | 101.92M | 110.29M | 128M | 4.68M | 77.69M | 8.18M | 58.19M | -114.28M | -28.65M | 34.26M | 47.86M | 28.36M | 81.21M | 60.06M | 56.77M | 25.39M | 4.04M | 7.64M | 8.81M | -103 | 3.17M | -1.26M |
| Net Margin % | 40.84% | 40.96% | 52.74% | 44.26% | 2.14% | 64.84% | 22.12% | 76.92% | -142.45% | -23.29% | 30.13% | 39.46% | 27.14% | 80.39% | 66.47% | 80.42% | 88.67% | 19.35% | 44.59% | 67.25% | -0% | 64.83% | -63.49% |
| Net Income Growth % | -9.64% | -7.58% | -13.84% | 2634.44% | -93.97% | 850.04% | -85.95% | 150.92% | -298.88% | -183.64% | -28.42% | 68.73% | -65.08% | 35.21% | 5.8% | 123.59% | 528.99% | -47.15% | -13.33% | 8556505.83% | -100% | 351.5% | - |
| Net Income (Continuing) | 89.34M | 101.92M | 110.29M | 128M | 4.68M | 77.69M | 8.18M | 58.19M | -114.28M | -28.65M | 34.26M | 47.86M | 28.36M | 81.21M | 60.06M | 56.77M | 25.39M | 4.04M | 7.64M | 8.81M | 8.7M | 3.17M | -1.26M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100 | 100 |
| EPS (Diluted) | 0.85 | 0.97 | 1.04 | 1.20 | 0.05 | 1.19 | 0.17 | 1.16 | -2.29 | -0.62 | 0.94 | 1.44 | 0.95 | 2.94 | 2.25 | 2.90 | 1.99 | 0.47 | 1.11 | 1.31 | 1.30 | 0.47 | -0.19 |
| EPS Growth % | -9.57% | -6.73% | -13.33% | 2537.36% | -96.18% | 600% | -85.34% | 150.66% | -269.35% | -165.96% | -34.72% | 51.58% | -67.69% | 30.67% | -22.41% | 45.73% | 323.4% | -57.66% | -15.27% | 0.72% | 176.74% | 347.37% | - |
| EPS (Basic) | - | 0.97 | 1.04 | 1.20 | 0.05 | 1.19 | 0.17 | 1.16 | -2.29 | -0.62 | 0.94 | 1.44 | 0.95 | 2.94 | 2.25 | 2.90 | 1.99 | 0.47 | 1.11 | 1.31 | 1.30 | 0.47 | -0.19 |
| Diluted Shares Outstanding | 104.71M | 105.16M | 105.72M | 107.04M | 102.91M | 65.32M | 48.58M | 50.19M | 49.9M | 46.5M | 36.41M | 33.23M | 29.78M | 27.58M | 26.74M | 19.56M | 12.76M | 8.59M | 6.88M | 6.73M | 6.69M | 6.69M | 6.69M |
| Basic Shares Outstanding | 104.71M | 105.16M | 105.72M | 107.04M | 102.91M | 65.32M | 48.58M | 50.19M | 49.9M | 46.5M | 36.41M | 33.23M | 29.78M | 27.58M | 26.74M | 19.56M | 12.76M | 8.59M | 6.88M | 6.73M | 6.69M | 6.69M | 6.69M |
| Dividend Payout Ratio | - | 122.88% | - | 85.15% | 2002.26% | 68.94% | 383.09% | 46.27% | - | - | 194.05% | 156.2% | 261.93% | 69.86% | 86.22% | 57.02% | 82.37% | 305.26% | 120.9% | 42.16% | - | - | - |
Portfolio credit quality volatility
As reported in recent financial statements, BBDC's gross margin has fluctuated significantly, ranging from a low of 51.5% in 2024Q2 to a high of 100% in early 2024, suggesting that the firm's underlying profitability is highly sensitive to non-recurring income items and shifting portfolio composition.
The extreme variance in gross margins indicates that BBDC's core interest income is frequently obscured by lumpy fee income or accounting adjustments. Investors should interpret these swings as a potential lack of earnings predictability, which may complicate the valuation of the firm's recurring revenue base.
Based on the company's quarterly filings, operating margins have demonstrated significant instability, swinging from 46.1% in 2024Q2 to 75.6% in 2023Q4, which implies that the firm's ability to scale operating income relative to gross profit is currently inconsistent and potentially dependent on external management fee structures.
The lack of a consistent operating margin trend suggests that BBDC's cost structure is not yet optimized for steady-state growth. This volatility warrants further investigation into whether management fee waivers or other temporary support agreements are masking the true underlying cost of operating the platform.
According to the provided income statement data, EPS has experienced sharp quarterly contractions, such as the 51.4% decline observed in 2024Q2, indicating that reported net income may be subject to significant non-operating noise rather than reflecting pure, sustainable investment performance from the core loan portfolio.
The erratic nature of EPS growth suggests that investors should be cautious about relying on headline net income figures as a proxy for dividend sustainability. The reliance on non-recurring items appears to create a disconnect between reported earnings and the actual cash-generating capacity of the underlying credit assets.
As indicated by the data, the sharp decline in gross margins from 100% in early 2024 to 75.1% by 2026Q1 suggests that the firm may be struggling to maintain the high-margin profile that characterized its earlier periods, potentially signaling increased competitive pressure or a shift toward lower-yielding assets.
Short-term observers might argue that the compression in margins reflects a fundamental deterioration in the quality of the loan book. If this trend continues, it may force a re-evaluation of the firm's dividend coverage and the long-term viability of its current investment strategy.
Quick answers to the most common questions about buying BBDC stock.
Barings BDC, Inc. (BBDC) is profitable, generating $101.9M in net income for the fiscal year ending 2025 with a net profit margin of 41.0%.
Barings BDC, Inc. (BBDC) reported an operating income of $212.0M, resulting in an operating profit margin of 85.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Barings BDC, Inc. (BBDC) generated $184.1M in gross profit for the year, representing a gross profit margin of 74.0%. This demonstrates the company's core pricing power and production efficiency.