Operating margins experienced a sharp contraction to 9.8% in 2026Q2, down from the 70-80% range maintained throughout 2024 and 2025, reflecting significant pressure on core profitability.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 |
|---|
| Net Interest Income | 317.63M | 552.6M | -212.4M | 441.4M | 293.5M | 234.7M | 220.14M | 125.91M | 107.76M | 98.92M | 94.06M | 91.63M | 84.1M | 66.39M | 45.55M | -6.55M | 0 | 0 |
| NII Growth % | 825.2% | 360.18% | -148.12% | 50.39% | 25.05% | 6.61% | 74.84% | 16.84% | 8.94% | 5.16% | 2.65% | 8.95% | 26.68% | 45.77% | 795.34% | - | - | - |
| Net Interest Margin % | 3.72% | 6.15% | -2.44% | 7.7% | 5.17% | 4.54% | 4.95% | 2.86% | 5.87% | 5.64% | 5.35% | 5.61% | 5.83% | 6.08% | 6.2% | -1.17% | 0% | 0% |
| Interest Income | 583.62M | 833.23M | 680.51M | 584.63M | 382.88M | 300.44M | 295M | 169.44M | 140.93M | 130.45M | 121.78M | 116.14M | 104.33M | 78.82M | 56.33M | 0 | 3.52M | 4.55M |
| Interest Expense | 265.99M | 280.62M | 212.4M | 143.23M | 89.38M | 65.74M | 74.86M | 43.53M | 33.17M | 31.53M | 27.72M | 24.51M | 20.23M | 12.43M | 10.78M | 6.55M | 3.52M | 4.55M |
| Loan Loss Provision | -78.37M | -119.45M | -100.04M | 1.64M | 1.32M | 0 | 0 | 0 | 0 | 0 | -27.72M | 0 | 0 | 0 | 0 | -761K | -197K | -1.7M |
| Non-Interest Income | 177.76M | 37.55M | -69.46M | -12.1M | -36.6M | 114.77M | -153.31M | -138.57M | -20.14M | -11.32M | 6.09M | -14.94M | -13.13M | -14.51M | -9.31M | 39.15M | 29.63M | 28.79M |
| Non-Interest Income % | 23.35% | 4.31% | -11.37% | -2.11% | -10.57% | 27.64% | -108.2% | -448.83% | -16.67% | -9.5% | 4.76% | -14.76% | -14.4% | -22.57% | -19.79% | 100% | 89.37% | 86.36% |
| Total Revenue | 761.39M | 870.78M | 611.05M | 572.53M | 346.28M | 415.2M | 141.69M | 30.87M | 120.8M | 119.13M | 127.87M | 101.21M | 91.2M | 64.31M | 47.02M | 39.15M | 33.15M | 33.34M |
| Revenue Growth % | 104.06% | 42.5% | 6.73% | 65.34% | -16.6% | 193.03% | 358.95% | -74.44% | 1.4% | -6.83% | 26.35% | 10.97% | 41.82% | 36.76% | 20.1% | 18.1% | -0.56% | - |
| Non-Interest Expense | 138.87M | 22.19M | 16.3M | 1.65M | 11.41M | 8.64M | 11.96M | 5.92M | 5.65M | 5.29M | 34.83M | 5.91M | 5.58M | 5.36M | 4.48M | 4M | 6.46M | 5.01M |
| Efficiency Ratio | 18.24% | 2.55% | 2.67% | 0.29% | 3.3% | 2.08% | 8.44% | 19.18% | 4.68% | 4.44% | 27.24% | 5.83% | 6.12% | 8.33% | 9.53% | 10.2% | 19.47% | 15.03% |
| Operating Income | 434.89M | 687.42M | 482.4M | 426.01M | 244.16M | 340.82M | 54.87M | -18.58M | 81.97M | 82.31M | 93.04M | 70.79M | 65.39M | 46.52M | 31.76M | 22.82M | 23.37M | 25.48M |
| Operating Margin % | 57.12% | 78.94% | 78.95% | 74.41% | 70.51% | 82.09% | 38.73% | -60.18% | 67.86% | 69.09% | 72.76% | 69.95% | 71.7% | 72.34% | 67.55% | 58.28% | 70.49% | 76.42% |
| Operating Income Growth % | - | 42.5% | 13.24% | 74.48% | -28.36% | 521.12% | 395.34% | -122.67% | -0.41% | -11.54% | 31.42% | 8.26% | 40.56% | 46.47% | 39.2% | -2.36% | -8.29% | - |
| Pretax Income | 204.49M | 375.65M | 274.36M | 275.4M | 155.64M | 340.82M | 54.87M | -18.58M | 81.97M | 82.31M | 69.54M | 70.79M | 65.39M | 46.52M | 31.76M | 21.34M | 23.37M | 25.48M |
| Pretax Margin % | 26.86% | 43.14% | 44.9% | 48.1% | 44.95% | 82.09% | 38.73% | -60.18% | 67.86% | 69.09% | 54.38% | 69.95% | 71.7% | 72.34% | 67.55% | 54.51% | 70.49% | 76.42% |
| Income Tax | -365K | -475K | 575K | 3.37M | 72K | 543K | 0 | 0 | 0 | 17K | 333K | 0 | 0 | 0 | 0 | 0 | -2.88M | 5.46M |
| Effective Tax Rate % | -0.18% | -0.13% | 0.21% | 1.22% | 0.05% | 0.16% | 0% | 0% | 0% | 0.02% | 0.48% | 0% | 0% | 0% | 0% | 0% | -12.33% | 21.43% |
| Net Income | 204.86M | 376.13M | 273.79M | 272.03M | 155.57M | 340.28M | 54.87M | -18.58M | 81.97M | 82.29M | 69.2M | 70.79M | 65.39M | 46.52M | 31.76M | 21.34M | 26.25M | 20.02M |
| Net Margin % | 26.91% | 43.19% | 44.81% | 47.51% | 44.93% | 81.95% | 38.73% | -60.18% | 67.86% | 69.07% | 54.12% | 69.95% | 71.7% | 72.34% | 67.55% | 54.51% | 79.18% | 60.04% |
| Net Income Growth % | -30.5% | 37.38% | 0.64% | 74.86% | -54.28% | 520.13% | 395.34% | -122.67% | -0.39% | 18.91% | -2.24% | 8.26% | 40.56% | 46.47% | 48.84% | -18.7% | 31.13% | - |
| Net Income (Continuing) | 204.86M | 376.13M | 273.79M | 272.03M | 155.57M | 340.28M | 54.87M | -18.58M | 81.97M | 82.29M | 69.2M | 70.79M | 65.39M | 46.52M | 31.76M | 21.34M | 26.25M | 20.02M |
| EPS (Diluted) | 0.78 | 1.42 | 1.36 | 1.52 | 0.90 | 2.03 | 0.37 | -0.28 | 1.33 | 1.45 | 1.33 | 1.44 | 1.44 | 1.35 | 1.31 | 1.03 | 1.40 | 1.09 |
| EPS Growth % | -31.63% | 4.41% | -10.53% | 68.89% | -55.66% | 448.65% | 232.14% | -121.05% | -8.28% | 9.02% | -7.64% | 0% | 6.67% | 3.05% | 27.18% | -26.43% | 28.44% | - |
| EPS (Basic) | - | 1.42 | 1.36 | 1.52 | 0.90 | 2.03 | 0.37 | -0.28 | 1.33 | 1.45 | 1.33 | 1.44 | 1.44 | 1.35 | 1.31 | 1.03 | 1.40 | 1.09 |
| Diluted Shares Outstanding | 262.68M | 266M | 201.26M | 170.32M | 170.67M | 167.99M | 148.91M | 65.49M | 61.74M | 56.91M | 54.8M | 49.02M | 45.28M | 34.47M | 24.27M | 20.71M | 18.68M | 18.36M |
Portfolio credit quality deterioration
As reported in recent financial statements, GBDC's gross margin experienced a sharp contraction to 77.6% in 2026Q2, down from the 83.4% levels observed in early 2025, suggesting that the firm's ability to maintain historical spreads is facing significant pressure from shifting interest rate environments.
The decline in gross margins indicates that the cost of leverage is increasingly offsetting the yield generated from the underlying loan portfolio. Investors should monitor whether this compression is a temporary byproduct of portfolio restructuring or a structural shift in the firm's net interest spread.
Based on the provided income statement data, GBDC reported a net loss of $46.8 million in 2026Q2, a stark reversal from the $65.3 million profit in 2026Q1, highlighting the inherent volatility introduced by mark-to-market adjustments on Level 3 assets within the BDC structure.
The significant swing in net income suggests that headline figures are heavily influenced by non-cash valuation changes rather than operational cash flow. Analysts should prioritize Net Investment Income over GAAP net income to better gauge the underlying sustainability of the dividend and operational health.
According to the latest quarterly filings, GBDC's operating margin plummeted to 9.8% in 2026Q2, representing a substantial deviation from the 70-80% range maintained throughout 2024 and 2025, which warrants further investigation into the firm's expense management and potential non-recurring charges.
The sudden collapse in operating efficiency suggests that either fixed costs are becoming disproportionately burdensome or that credit loss provisions have spiked significantly. This trend implies that the firm's ability to scale earnings relative to its asset base is currently compromised.
Data from the most recent period indicates that GBDC's EPS dropped to -$0.18 in 2026Q2, which, when contrasted with the consistent positive earnings of prior quarters, raises concerns regarding the long-term sustainability of the current dividend payout ratio in a more challenging credit environment.
Short-sellers may focus on the potential for a dividend cut if the current earnings volatility persists and erodes the firm's net asset value. The reliance on non-cash income components, such as PIK interest, may further mask the true liquidity available to support these distributions.
Quick answers to the most common questions about buying GBDC stock.
Golub Capital BDC, Inc. (GBDC) is profitable, generating $376.1M in net income for the fiscal year ending 2025 with a net profit margin of 43.2%.
Golub Capital BDC, Inc. (GBDC) reported an operating income of $687.4M, resulting in an operating profit margin of 78.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Golub Capital BDC, Inc. (GBDC) generated $709.6M in gross profit for the year, representing a gross profit margin of 81.5%. This demonstrates the company's core pricing power and production efficiency.