Revenue grew 20% year-over-year to $753.1M in 2026Q2, but net income of $60.7M was thin relative to a $492.6M provision expense, and the efficiency ratio swung from 73.5% in 2026Q1 to 25.5% in 2026Q2.
Blue Owl Capital Inc. (OWL) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Net Interest Income | -92.42M | -118.57M | -79.72M | -53.52M | -55.71M | -27.27M | -23.82M | -6.66M |
| NII Growth % | 2.27% | -48.73% | -48.96% | 3.93% | -104.26% | -14.52% | -257.49% | - |
| Net Interest Margin % | -0.75% | -0.95% | -0.73% | -0.61% | -0.63% | -0.33% | -19.59% | -11.75% |
| Interest Income | 34.7M | 45.18M | 42.17M | 22.18M | 0 | 0 | 0 | 0 |
| Interest Expense | 79.39M | 163.75M | 121.89M | 75.7M | 55.71M | 27.27M | 23.82M | 6.66M |
| Loan Loss Provision | 1.08B | 1.12B | 895.59M | 794.95M | 838.98M | 1.47B | 216.91M | 105.11M |
| Non-Interest Income | 2.96B | 2.82B | 2.25B | 1.71B | 1.37B | 823.88M | 249.81M | 190.85M |
| Non-Interest Income % | 103.23% | 104.38% | 103.67% | 103.23% | 104.24% | 103.42% | 110.54% | 103.62% |
| Total Net Revenue | 2.86B | 2.71B | 2.17B | 1.66B | 1.31B | 796.6M | 226M | 184.19M |
| Revenue Growth % | 15.85% | 24.52% | 31.26% | 26.02% | 64.95% | 252.48% | 22.7% | - |
| Non-Interest Expense | 1.15B | 962.29M | 671.19M | 543.15M | 477.52M | 254.16M | 67.81M | 51.71M |
| Efficiency Ratio | 40.17% | 35.56% | 30.88% | 32.8% | 36.34% | 31.91% | 30.01% | 28.07% |
| Operating Income | 675.89M | 627.15M | 606.76M | 317.82M | -2.48M | -927.27M | -58.73M | 27.37M |
| Operating Margin % | 23.61% | 23.17% | 27.92% | 19.19% | -0.19% | -116.4% | -25.99% | 14.86% |
| Operating Income Growth % | - | 3.36% | 90.91% | 12899.68% | 99.73% | -1478.94% | -314.59% | - |
| Pretax Income | 389.85M | 347.91M | 469.23M | 246.38M | -49.62M | -1.87B | -82.54M | 20.7M |
| Pretax Margin % | 13.62% | 12.86% | 21.59% | 14.88% | -3.78% | -234.43% | -36.52% | 11.24% |
| Income Tax | 51.47M | 42.42M | 48.78M | 25.61M | -9.38M | -65.21M | -102K | 240K |
| Effective Tax Rate % | 13.2% | 12.19% | 10.4% | 10.39% | 18.91% | 3.49% | 0.12% | 1.16% |
| Net Income | 130.18M | 78.83M | 109.58M | 54.34M | -9.29M | -376.17M | -77.83M | 22.96M |
| Net Margin % | 4.55% | 2.91% | 5.04% | 3.28% | -0.71% | -47.22% | -34.44% | 12.46% |
| Net Income Growth % | 72.65% | -28.06% | 101.65% | 685.03% | 97.53% | -383.32% | -439.01% | - |
| Net Income (Continuing) | 338.38M | 305.49M | 420.45M | 220.78M | -40.23M | -1.8B | -82.44M | 20.46M |
| EPS (Diluted) | 0.19 | 0.12 | 0.20 | 0.11 | -0.02 | -0.93 | -2.26 | 0.07 |
| EPS Growth % | 45.13% | -40% | 81.82% | 614.02% | 97.7% | 58.85% | -3252.02% | - |
| EPS (Basic) | - | 0.12 | 0.20 | 0.12 | -0.02 | -0.93 | -2.26 | 0.07 |
| Diluted Shares Outstanding | 688.51M | 664.8M | 558.43M | 478.01M | 433.43M | 404.92M | 34.38M | 320.01M |
Quick answers to the most common questions about buying OWL stock.
For fiscal year 2025, Blue Owl Capital Inc. (OWL) reported total revenue of $2.71B. This represents a 1369.4% increase compared to $184.2M in 2019.
Blue Owl Capital Inc. (OWL) is profitable, generating $78.8M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Blue Owl Capital Inc. (OWL) reported an operating income of $627.2M, resulting in an operating profit margin of 21.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Blue Owl Capital Inc. (OWL) generated $1.59B in gross profit for the year, representing a gross profit margin of 55.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Provision volatility and negative NII
Metrics are mathematically derived from official filings.
Negative NII Persists Amid Growth
Blue Owl's net interest income remained negative for eight consecutive quarters, reaching -$32.1M in 2026Q1, while total revenue grew 20% year-over-year, according to reported financials.
The persistent negative NII, though small relative to total revenue, indicates that interest expense on funding exceeds interest income on assets, a structural drag. However, the magnitude is modest, and the company's growth is driven entirely by non-interest income, suggesting the core business model is fee-based rather than spread-based.
Fee-Based Model Drives Margins
Non-interest income constitutes over 98% of total revenue, with fee income at 100% in 2026Q2, underscoring a fee-centric model, as per financial statements.
With NIM not applicable and fee income dominating, the traditional bank margin analysis is irrelevant. The efficiency ratio, which improved to 25.5% in 2026Q2 from 73.5% in 2026Q1, indicates strong operating leverage, but this is partly due to a spike in provision expense in the prior quarter. The underlying fee-based revenue stream provides a stable base, though it is subject to market performance and asset valuations.
Efficiency Ratio Volatile but Improving
Blue Owl's efficiency ratio swung from 73.5% in 2026Q1 to 25.5% in 2026Q2, reflecting significant quarterly volatility, based on reported figures.
The efficiency ratio's volatility is driven by fluctuations in provision expense, which is not a typical operating expense. Excluding provisions, the operating expense base appears stable, and the improvement in 2026Q2 suggests better cost control. However, investors should monitor whether this improvement is sustainable or a one-off due to lower provision charges.
Provision Expense Spikes Raise Concerns
Provision for loan losses surged to $492.6M in 2026Q2, a 65% increase from the prior quarter, according to recent financial disclosures.
The provision expense is unusually high relative to net income, which was only $60.7M in 2026Q2, indicating significant credit costs that are eroding profitability. This may reflect a deteriorating credit environment or conservative reserving. The trend warrants close monitoring, as sustained high provisions could signal asset quality issues.
Fee Income Growth Steady
Non-interest income grew 20% year-over-year to $753.1M in 2026Q2, with fee income comprising 100% of revenue, as reported in financial statements.
The consistent growth in fee income, from $508.6M in 2024Q1 to $753.1M in 2026Q2, indicates a robust asset management business. However, the reliance on fee income exposes the company to market cycles and investor sentiment. The quality of these fees—whether recurring management fees or performance-based—is crucial; the data suggests a high proportion of recurring fees, which is positive.
2026Q2 Marks Provision Inflection
In 2026Q2, provision expense jumped to $492.6M, the highest in the reported period, while net income rose to $60.7M, according to company filings.
This quarter represents a potential inflection point: the sharp increase in provisions, despite higher revenue, suggests that credit costs are becoming a more significant drag on earnings. The efficiency ratio improvement is overshadowed by the provision spike, indicating that the company's earnings quality may be deteriorating. Investors should assess whether this is a one-time event or the start of a trend.
Earnings Quality Under Scrutiny
Despite revenue growth, net income remains thin, with cumulative net income over the last four quarters totaling $130M against $1.08B in provisions, based on reported data.
The substantial provisions relative to net income raise questions about the sustainability of earnings. If provisions remain elevated, the company's profitability could be severely constrained. Additionally, the negative NII, though small, adds a persistent drag. Investors should consider whether the fee-based revenue can continue to grow at a pace sufficient to offset these credit costs, or if the current earnings level is overstated.