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Blue Owl Capital Q1 Earnings Miss on Lower Net Investment Income
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Key Takeaways
OBDC's Q1 adjusted EPS fell 20.5% year over year and missed estimates by 11.4%.
Blue Owl Capital posted lower investment income, partly offset by reduced expenses.
OBDC declared a 31-cent Q2 dividend and repurchased $35M of shares in Q1.
Blue Owl Capital Corporation (OBDC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 31 cents, which missed the Zacks Consensus Estimate by 11.4%. The bottom line decreased 20.5% year over year.
Total investment income declined 14.6% year over year to $396.8 million. The top line missed the consensus mark by 6.2%.
The weaker-than-expected quarterly results were affected by lower net investment income. However, the downside was partly offset by lower expenses.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Adjusted net investment income of $153 million fell 3% year over year. New investment commitments were $676 million across seven new portfolio companies and 16 existing ones.
Blue Owl Capital ended the first quarter with investments in 230 portfolio companies, backed with an aggregate fair value of $15.3 billion. Based on the fair value, the average investment size in each portfolio company was $66.7 million as of March 31, 2026.
Total expenses decreased 9.4% year over year to $235.2 million in the first quarter due to lower interest expenses and management fees.
OBDC recorded an adjusted net decrease in net assets resulting from operations of $24.4 million, which decreased from the net increase of $159.7 million a year ago.
Financial Update (as of March 31, 2026)
Blue Owl Capital exited the first quarter with a cash balance of $416.1 million, which declined from the 2025-end level of $558.7 million. Total assets of $16 billion decreased from the $17.2 billion figure at 2025-end.
Debt was $8.5 billion, down from the $9.3 billion figure as of Dec. 31, 2025. OBDC had $3.6 billion of undrawn capacity under its credit facilities. At the first-quarter end, net debt to equity was 1.13X.
Net operating cash flow in the first quarter of 2026 was $967.4 million, up from the prior-year figure of $38.9 million.
Q1 Dividend & Repurchase Update
The board of directors at Blue Owl Capital declared a second-quarter 2026 regular dividend of 31 cents per share, to be paid on or before July 15, 2026, to its shareholders of record as of June 30.
Blue Owl Capital announced a new repurchase program (expiring in 18 months from the approval date of Feb. 18, 2025), under which it may purchase shares up to $300 million. The company repurchased shares worth $35 million in the first quarter of 2026.
Several companies in the Finance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49 per share. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.
AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.
Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.
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Blue Owl Capital Q1 Earnings Miss on Lower Net Investment Income
Key Takeaways
Blue Owl Capital Corporation (OBDC - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 31 cents, which missed the Zacks Consensus Estimate by 11.4%. The bottom line decreased 20.5% year over year.
Total investment income declined 14.6% year over year to $396.8 million. The top line missed the consensus mark by 6.2%.
The weaker-than-expected quarterly results were affected by lower net investment income. However, the downside was partly offset by lower expenses.
Blue Owl Capital Corporation Price, Consensus and EPS Surprise
Blue Owl Capital Corporation price-consensus-eps-surprise-chart | Blue Owl Capital Corporation Quote
Key Insights From Q1 Results
Adjusted net investment income of $153 million fell 3% year over year. New investment commitments were $676 million across seven new portfolio companies and 16 existing ones.
Blue Owl Capital ended the first quarter with investments in 230 portfolio companies, backed with an aggregate fair value of $15.3 billion. Based on the fair value, the average investment size in each portfolio company was $66.7 million as of March 31, 2026.
Total expenses decreased 9.4% year over year to $235.2 million in the first quarter due to lower interest expenses and management fees.
OBDC recorded an adjusted net decrease in net assets resulting from operations of $24.4 million, which decreased from the net increase of $159.7 million a year ago.
Financial Update (as of March 31, 2026)
Blue Owl Capital exited the first quarter with a cash balance of $416.1 million, which declined from the 2025-end level of $558.7 million. Total assets of $16 billion decreased from the $17.2 billion figure at 2025-end.
Debt was $8.5 billion, down from the $9.3 billion figure as of Dec. 31, 2025. OBDC had $3.6 billion of undrawn capacity under its credit facilities. At the first-quarter end, net debt to equity was 1.13X.
Net operating cash flow in the first quarter of 2026 was $967.4 million, up from the prior-year figure of $38.9 million.
Q1 Dividend & Repurchase Update
The board of directors at Blue Owl Capital declared a second-quarter 2026 regular dividend of 31 cents per share, to be paid on or before July 15, 2026, to its shareholders of record as of June 30.
Blue Owl Capital announced a new repurchase program (expiring in 18 months from the approval date of Feb. 18, 2025), under which it may purchase shares up to $300 million. The company repurchased shares worth $35 million in the first quarter of 2026.
OBDC’s Zacks Rank
OBDC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Peers Perform?
Several companies in the Finance space, including RenaissanceRe Holdings Ltd. (RNR - Free Report) , AMERISAFE, Inc. (AMSF - Free Report) and The Hartford Insurance Group, Inc. (HIG - Free Report) , have already reported their financial results for the March quarter of 2026. Here’s how they had performed:
RenaissanceRe reported first-quarter 2026 operating income of $13.75 per share, which surpassed the Zacks Consensus Estimate by 24.2%. The bottom line improved from the year-ago quarter’s operating loss of $1.49 per share. Total operating revenues declined 16.6% year over year to $2.6 billion. The top line missed the consensus mark by 10.6%. RNR’s quarterly earnings were aided by a decline in expenses and strong underwriting performance in both segments. Improved combined ratio and fee income contributed to the upside. However, the upside was partly offset by lower net premiums earned across both segments.
AMERISAFE reported first-quarter 2026 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 52 cents. The bottom line declined 16.7% year over year. Operating revenues increased 7.9% year over year to $81.75 million but missed the consensus estimate by 0.9%. AMSF’s quarterly result was affected by higher expenses and weaker underwriting margins, with additional pressure from lower fee income and weaker investment income. Stronger premium growth partially offsets the downside.
Hartford posted first-quarter fiscal 2026 core earnings per share of $3.09, up 40.5% from $2.20 in the prior-year quarter. The figure missed the Zacks Consensus Estimate of $3.29 by 6.1%. Operating revenues totaled $5.09 billion, up 7% year over year, but missed the consensus mark by 2.1%. HIG’s weaker-than-expected results were caused by less favorable prior-year reserve development, higher expenses and pressure in Employee Benefits. The negatives were partially offset by high demand for expensive risk events, stronger investment income and a massive turnaround in Personal Insurance.