Blue Owl Capital (1D6) Q2 2026 Earnings Report

Overall the call communicated a largely positive operational and financial update: NII and ROE improved, dividend coverage was healthy with a supplemental payout, leverage was reduced to the lowest level in over two years, liquidity and funding structure were strengthened, and the portfolio continued to show stable credit metrics and diversified, defensive exposures. The primary negatives were a modest NAV decline driven by a single-name markdown (Loparex), muted new-deal activity and refinancing in the market, some reliance on one-time realizations for elevated income, and modestly higher funding costs — but these negatives were isolated and outweighed by the quarter's constructive developments.

Management reiterated a Q3 base dividend of $0.31 (paid Oct. 15; record Sept. 30) plus a $0.02 supplemental (paid Sept. 15; record Aug. 31), supported by Q2 adjusted NII of $0.34 (up from $0.31 prior quarter) which translated to a 9.6% annualized ROE (up >100 bps) and quarterly base dividend coverage of ~110%, with spillover income of roughly $0.29/share; NAV was $14.26 (down from $14.41), aided by $35M of share repurchases in Q2 (about $220M since Q4) that were accretive ~ $0.03 to NAV. Balance sheet guidance emphasized flexibility: net leverage ended 1.11x (target range 0.9–1.25x; lowest in >2 years), fundings of $429M vs $747M of repayments, total liquidity ~$3.5B (including a $4B revolver), ~$800M of unsecured debt raised to cover ~ $1B of maturities, and elimination of two secured facilities. Credit and portfolio metrics reinforced confidence: non‑accruals 0.8% at fair value (platform 1% of cost), platform loss rate since inception 12 bps, PIK as % of investment income ~10.7% (down from >13%), portfolio revenue/EBITDA growth mid‑to‑high single digits, avg position ~40 bps, software 18% of portfolio, interest coverage ~2x, avg company net leverage 5.8x, LTVs ~47%, and management noted the forward rate curve is roughly 100 bps higher and spreads/terms are more attractive—supporting a patient, selective deployment posture as the opportunity set improves.