Operating margins contracted sharply to 36.0% in 2026Q1 from 65.2% in 2025Q4, reflecting significant volatility in core lending spreads and earnings quality.
| Sales/Revenue | 1.31B | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 835.06M | 1.26B | 665.75M | 864.33M | 535.63M | 689.66M | 302.53M | 456.74M | 221.99M | 116.8M | 24.86M |
| Gross Margin % | 63.74% | 75.32% | 60.49% | 67.79% | 66.23% | 78.17% | 68.93% | 78.47% | 75.65% | 84.17% | 91.39% |
| Gross Profit Growth % | - | 89.96% | -22.97% | 61.37% | -22.33% | 127.96% | -33.76% | 105.75% | 90.05% | 369.94% | - |
| Operating Expenses | 184.04M | 35.1M | 58.41M | 53.65M | 59.5M | 52.16M | -90.92M | -43.24M | 18.65M | 12.9M | 7.87M |
| OpEx % of Revenue | - | 2.09% | 5.31% | 4.21% | 7.36% | 5.91% | -20.71% | -7.43% | 6.36% | 9.3% | 28.92% |
| Selling, General & Admin | 19.21M | 27.09M | 28.38M | 27.94M | 25.09M | 25.68M | 23.44M | 19.03M | 13.32M | 10.29M | 6.23M |
| SG&A % of Revenue | - | 1.61% | 2.58% | 2.19% | 3.1% | 2.91% | 5.34% | 3.27% | 4.54% | 7.41% | 22.89% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 651.02M | 1.23B | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| Operating Margin % | 49.69% | 73.23% | 55.18% | 63.59% | 58.87% | 72.25% | 89.64% | 85.9% | 69.3% | 74.87% | 62.47% |
| Operating Income Growth % | - | 102.45% | -25.08% | 70.26% | -25.31% | 62.03% | -21.31% | 145.89% | 95.71% | 511.56% | - |
| EBITDA | 650.4M | 1.24B | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| EBITDA Margin % | 49.64% | 73.86% | 55.18% | 63.59% | 58.87% | 72.25% | 89.64% | 85.9% | 69.3% | 74.87% | 62.47% |
| EBITDA Growth % | -2.56% | 104.18% | -25.08% | 70.26% | -25.31% | 62.03% | -21.31% | 145.89% | 95.71% | 511.56% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 650.4M | 1.24B | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| Net Interest Income | 1.1B | 1.25B | 940.77M | 990.82M | 780.2M | 753.82M | 632.66M | 566.54M | 295.42M | 129.28M | 25.6M |
| Interest Income | 1.66B | 1.85B | 1.38B | 1.4B | 1.05B | 946.47M | 769.04M | 691.85M | 366.86M | 151.25M | 27.94M |
| Interest Expense | 558.44M | 595.75M | 434.88M | 410.59M | 273.13M | 192.65M | 136.39M | 125.31M | 71.44M | 21.96M | 2.34M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 371.91M | 642.49M | 607.34M | 810.68M | 476.13M | 637.5M | 393.44M | 499.99M | 203.34M | 103.9M | 16.99M |
| Pretax Margin % | 28.39% | 38.27% | 55.18% | 63.59% | 58.87% | 72.25% | 89.64% | 85.9% | 69.3% | 74.87% | 62.47% |
| Income Tax | 11.52M | 15.09M | 12.36M | 17.36M | 9.77M | 12.61M | 5.71M | 1.98M | 1.09M | 158K | 352K |
| Effective Tax Rate % | 3.1% | 2.35% | 2.03% | 2.14% | 2.05% | 1.98% | 1.45% | 0.4% | 0.54% | 0.15% | 2.07% |
| Net Income | 360.39M | 627.41M | 594.98M | 793.31M | 466.36M | 624.88M | 387.74M | 498M | 202.24M | 103.74M | 16.64M |
| Net Margin % | 27.51% | 37.37% | 54.06% | 62.22% | 57.66% | 70.82% | 88.34% | 85.56% | 68.92% | 74.76% | 61.17% |
| Net Income Growth % | -44.99% | 5.45% | -25% | 70.11% | -25.37% | 61.16% | -22.14% | 146.24% | 94.95% | 523.55% | - |
| Net Income (Continuing) | 360.39M | 627.41M | 594.98M | 793.31M | 466.36M | 624.88M | 387.74M | 498M | 202.24M | 103.74M | 16.64M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.72 | 1.24 | 1.53 | 2.03 | 1.18 | 1.59 | 1.00 | 1.53 | 1.49 | 0.40 | 0.06 |
| EPS Growth % | -54.84% | -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 | 498.9M | 506.1M | 390.07M | 390.1M | 394.01M | 392.3M | 388.65M | 324.63M | 135.73M | 259.2M | 284.75M |
| Basic Shares Outstanding | 498.9M | 506.1M | 390.07M | 390.1M | 394.01M | 392.3M | 388.65M | 324.63M | 135.73M | 259.2M | 284.75M |
| Dividend Payout Ratio | - | 119.94% | 110.18% | 77.32% | 104.73% | 69.28% | 94.91% | 44.4% | 44.52% | 27.06% | 9.89% |
Portfolio credit quality deterioration
As reported in recent financial statements, OBDC's gross margin experienced significant fluctuations, dropping to 52.0% in 2025Q3 from a peak of 75.0% in 2025Q4, suggesting that the firm's ability to maintain consistent interest spreads is highly sensitive to underlying portfolio refinancing and market-driven yield compression.
The wide variance in gross margins indicates that the company's profitability is not purely a function of base interest rates but is heavily influenced by non-recurring fee income. Investors should monitor whether these margin swings reflect a structural shift toward lower-yielding assets or merely the timing of prepayment activity within the upper-middle-market portfolio.
Based on reported figures, OBDC's net income swung to a $24.4 million loss in 2026Q1, highlighting that the firm's bottom line is susceptible to significant volatility from unrealized mark-to-market adjustments on its Level 3 assets rather than just recurring net investment income.
The sharp divergence between operating income and net income in recent periods suggests that accounting adjustments for portfolio valuations are masking the underlying cash-generating capability of the loan book. Analysts should focus on net investment income as a more reliable proxy for dividend sustainability than the headline net income figure.
According to recent SEC filings, OBDC's operating margin contracted to 36.0% in 2026Q1, a notable decline from the 65.2% observed in 2025Q4, which implies that the company is struggling to maintain operating leverage as revenue volatility outpaces the firm's ability to manage its cost structure.
The deterioration in operating margins suggests that the fixed costs associated with the Blue Owl platform may become a burden during periods of lower origination activity. This trend warrants further investigation into whether the firm can maintain its current expense discipline if the interest rate environment shifts unfavorably.
Data from the income statement history reveals that the firm's reliance on unitranche structures may be understating credit risk, as evidenced by the recent negative net income print which may indicate that the portfolio is beginning to absorb losses from its concentrated software and technology exposures.
Short-sellers would likely focus on the potential for a permanent impairment of capital if the software sector experiences a valuation correction, given the lack of junior debt layers to absorb initial losses. The current leverage profile appears to leave little room for error if non-accruals continue to trend upward.
Quick answers to the most common questions about buying OBDC stock.
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 37.4%.
Blue Owl Capital Corporation (OBDC) reported an operating income of $1.23B, resulting in an operating profit margin of 73.2%. 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 75.3%. This demonstrates the company's core pricing power and production efficiency.