Revenue and profitability have deteriorated sharply, with net interest income down 47.7% year-over-year to $149.3M and net interest margin compressing to 1.0% in 2026Q2, while negative fee income of -$129.1M and an efficiency ratio of 25.3% underscore strained margins.
Blue Owl Capital Corporation (OBDC) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Net Interest Income | 591.29M | 1.25B | 940.77M | 990.82M | 780.2M | 753.82M | 632.66M | 566.54M | 295.42M | 129.28M | 25.6M |
| NII Growth % | -165.65% | 33.27% | -5.05% | 27% | 3.5% | 19.15% | 11.67% | 91.78% | 128.51% | 405.07% | - |
| Net Interest Margin % | 3.78% | 7.29% | 6.78% | 7.33% | 5.74% | 5.67% | 5.6% | 6.16% | 4.96% | 5.29% | 2.17% |
| Interest Income | 1.12B | 1.85B | 1.38B | 1.4B | 1.05B | 946.47M | 769.04M | 691.85M | 366.86M | 151.25M | 27.94M |
| Interest Expense | 525.48M | 595.75M | 434.88M | 410.59M | 273.13M | 192.65M | 136.39M | 125.31M | 71.44M | 21.96M | 2.34M |
| Loan Loss Provision | -117.01M | -181.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Non-Interest Income | 410.68M | -172.25M | -275.02M | -126.49M | -244.57M | -64.16M | -330.13M | -109.8M | -73.43M | -12.48M | -742K |
| Non-Interest Income % | 40.99% | -15.93% | -41.31% | -14.63% | -45.66% | -9.3% | -109.12% | -24.04% | -33.08% | -10.68% | -2.99% |
| Total Net Revenue | 1B | 1.08B | 665.75M | 864.33M | 535.63M | 689.66M | 302.53M | 456.74M | 221.99M | 116.8M | 24.86M |
| Revenue Growth % | 34.97% | 62.44% | -22.97% | 61.37% | -22.33% | 127.96% | -33.76% | 105.75% | 90.05% | 369.94% | - |
| Non-Interest Expense | 255.41M | 35.1M | 58.41M | 53.65M | 59.5M | 52.16M | -90.92M | -43.24M | 18.65M | 12.9M | 7.87M |
| Efficiency Ratio | 25.49% | 3.25% | 8.77% | 6.21% | 11.11% | 7.56% | -30.05% | -9.47% | 8.4% | 11.05% | 31.65% |
| Operating Income | 863.57M | 1.23B | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| Operating Margin % | 86.19% | 113.69% | 91.23% | 93.79% | 88.89% | 92.44% | 130.05% | 109.47% | 91.6% | 88.95% | 68.35% |
| Operating Income Growth % | - | 102.45% | -25.08% | 70.26% | -25.31% | 62.03% | -21.31% | 145.89% | 95.71% | 511.56% | - |
| Pretax Income | 460.46M | 642.49M | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| Pretax Margin % | 45.96% | 59.41% | 91.23% | 93.79% | 88.89% | 92.44% | 130.05% | 109.47% | 91.6% | 88.95% | 68.35% |
| Income Tax | 119.96M | 15.09M | 12.36M | 17.36M | 9.77M | 12.61M | 5.71M | 1.98M | 1.09M | 158K | 352K |
| Effective Tax Rate % | 26.05% | 2.35% | 2.03% | 2.14% | 2.05% | 1.98% | 1.45% | 0.4% | 0.54% | 0.15% | 2.07% |
| Net Income | 340.5M | 627.41M | 594.98M | 793.31M | 466.36M | 624.88M | 387.74M | 498M | 202.24M | 103.74M | 16.64M |
| Net Margin % | 33.98% | 58.01% | 89.37% | 91.78% | 87.07% | 90.61% | 128.17% | 109.03% | 91.1% | 88.82% | 66.94% |
| Net Income Growth % | -48.66% | 5.45% | -25% | 70.11% | -25.37% | 61.16% | -22.14% | 146.24% | 94.95% | 523.55% | - |
| Net Income (Continuing) | 340.5M | 627.41M | 594.98M | 793.31M | 466.36M | 624.88M | 387.74M | 498M | 202.24M | 103.74M | 16.64M |
| EPS (Diluted) | 0.69 | 1.24 | 1.53 | 2.03 | 1.18 | 1.59 | 1.00 | 1.53 | 1.49 | 0.40 | 0.06 |
| EPS Growth % | -51.77% | -18.95% | -24.63% | 72.03% | -25.79% | 59% | -34.64% | 2.68% | 272.5% | 584.93% | - |
| EPS (Basic) | - | 1.24 | 1.53 | 2.03 | 1.18 | 1.59 | 1.00 | 1.53 | 1.49 | 0.40 | 0.78 |
| Diluted Shares Outstanding | 492.26M | 506.1M | 390.07M | 390.1M | 394.01M | 392.3M | 388.65M | 324.63M | 135.73M | 259.2M | 284.75M |
Quick answers to the most common questions about buying OBDC stock.
For fiscal year 2025, Blue Owl Capital Corporation (OBDC) reported total revenue of $1.08B. This represents a 4251.1% increase compared to $24.9M in 2016.
Blue Owl Capital Corporation (OBDC) is profitable, generating $627.4M in net income for the fiscal year ending 2025 with a net profit margin of 58.0%.
Blue Owl Capital Corporation (OBDC) reported an operating income of $1.23B, resulting in an operating profit margin of 113.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Blue Owl Capital Corporation (OBDC) generated $1.26B in gross profit for the year, representing a gross profit margin of 116.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
NII volatility and negative fee income
Metrics are mathematically derived from official filings.
NII Growth Stalls Amid Rate Uncertainty
Net interest income fell 47.7% year-over-year in 2026Q2 to $149.3M, according to OBDC's latest quarterly report, reflecting a sharp reversal from prior growth.
The sequential decline from $262.9M in 2026Q1 to $149.3M in 2026Q2 suggests a significant compression in interest-earning asset yields or a contraction in the loan portfolio. This volatility may indicate sensitivity to short-term rate movements and competitive pressures in the BDC space. Investors should monitor whether this is a temporary dip or the start of a sustained downtrend.
NIM Compression Signals Pressure
Net interest margin contracted to 1.0% in 2026Q2 from 1.6% in the prior quarter, as reported in OBDC's financial statements, indicating a deteriorating spread environment.
The margin decline is steep and suggests that funding costs are rising faster than asset yields, or that non-accrual loans are reducing interest income. This level is well below the 1.7-1.8% range seen in 2024, implying a structural shift in profitability. If this persists, it could challenge the sustainability of the dividend.
Efficiency Ratio Spikes on Revenue Drop
OBDC's efficiency ratio jumped to 25.3% in 2026Q2 from 9.8% in 2025Q4, based on reported figures, as non-interest expenses remained elevated relative to shrinking revenue.
The efficiency ratio is unusually low for a BDC, but the sharp increase indicates that operating expenses are not adjusting to the revenue decline. This suggests a loss of operating leverage, which could weigh on future earnings if revenue does not recover. The negative non-interest income in several quarters complicates the revenue base, making the ratio less meaningful but still indicative of cost rigidity.
Provision Reversals Mask Credit Deterioration
OBDC recorded no provision expense in most quarters, but 2026Q1 showed a $40.8M benefit, according to SEC filings, suggesting possible reserve releases that may not be repeatable.
The absence of provision expense in 2025 and 2026Q2 could indicate a benign credit environment, but the large reversal in 2026Q1 may have been a one-time event. If credit quality weakens, the lack of provisioning could lead to sudden earnings hits. Investors should scrutinize the portfolio's non-accrual trends and watch for potential reserve builds.
Negative Fee Income Clouds Revenue Mix
Non-interest income was negative in five of the last six quarters, including -$129.1M in 2026Q2, as per OBDC's income statement, indicating a heavy reliance on net interest income.
The persistent negative fee income likely stems from realized and unrealized losses on investments, which are common in BDCs but add volatility to total revenue. This makes the revenue stream less predictable and could signal underlying portfolio stress. The fee percentage swung from -42.4% to 32.2%, highlighting the instability of this component.
2026Q2 Marks a Turning Point
The most recent quarter, 2026Q2, shows a dramatic deterioration with net income down 51.9% year-over-year to $65.7M, based on OBDC's reported results, potentially signaling a new phase.
This quarter stands out as the weakest in the series, with NII at its lowest and non-interest income at its most negative. The combination of margin compression and fee losses suggests that the company may be facing headwinds from rate cuts and market volatility. If this trend continues, it could mark the beginning of a prolonged earnings decline, warranting close monitoring of management's strategy.
What Could Invalidate the Base Case
The sharp NII decline and negative fee income in 2026Q2 may be temporary, but the lack of provisioning and reliance on reversals could mask underlying credit stress.
The dramatic drop in NII and the persistent negative non-interest income could be driven by mark-to-market losses rather than fundamental deterioration, which might reverse if markets stabilize. However, the absence of provision expense in most quarters, despite a large reversal in 2026Q1, suggests that credit quality may be weaker than reported. If the portfolio experiences higher non-accruals or charge-offs, the lack of reserves could lead to significant earnings hits. Investors should question whether the recent performance is a cyclical trough or a structural shift, and monitor the sustainability of the dividend given the earnings volatility.