Blue Owl Capital Corporation reported third‑quarter 2025 results that fell short of consensus expectations. Revenue reached $453.07 million, a 11.6% year‑over‑year increase but $8.5 million below the $461.57 million estimate. GAAP net investment income per share was $0.37, while adjusted net investment income per share was $0.36, both below the consensus $0.39. The company maintained its regular dividend of $0.37 per share, the same amount it announced for the fourth quarter.
The revenue miss was driven by a modest decline in pre‑payment‑related income and interest earnings from its debt portfolio, offsetting the growth in fee‑related revenue. Although total revenue grew, the mix shift toward lower‑margin fee income and a 1.3% increase in non‑accrual investments—up from 0.7% in Q2—put pressure on earnings. The adjusted net investment income per share dropped from $0.47 in Q3 2024 to $0.36, a 23% decline, reflecting the combined impact of lower interest income and higher non‑accrual exposure.
The company’s portfolio remained diversified, covering 238 companies across 30 industries and holding $17.1 billion in fair‑value investments. New commitments of $1.3 billion were made to 13 new portfolio companies and 23 existing ones, while the proportion of first‑lien senior secured debt stayed around 74% of the portfolio. The debt‑to‑equity ratio was not disclosed in the release, but the company’s leverage profile remained stable relative to prior periods.
On the same day, Blue Owl Capital announced a definitive merger agreement with Blue Owl Capital Corporation II. The transaction is expected to create a larger, more diversified direct‑lender platform and is projected to enhance long‑term shareholder value. CEO Craig W. Packer said the merger would “enhance long‑term value for both sets of shareholders as a combined company,” underscoring the strategic intent to scale the business and broaden its credit footprint.
Management reiterated its confidence in the company’s growth trajectory, noting that it targets $5 billion in revenue and $3 billion in fee‑related earnings for the year, with expectations of reaching $3.22 billion by 2026. While the earnings miss signals short‑term headwinds, the company’s focus on portfolio quality, disciplined cost management, and the merger are positioned to support future profitability.
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