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Blue Owl Capital Corporation (OBDC)
NYSE:OBDC
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Blue Owl Capital (OBDC) AI Stock Analysis

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OBDC

Blue Owl Capital

(NYSE:OBDC)

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Outperform 72 (OpenAI - 5.2)
Rating:72Outperform
Price Target:
$12.00
▲(11.42% Upside)
Action:Upgraded
Date:08/06/26
The score is driven primarily by solid financial performance (strong profitability and recent cash generation, albeit with volatility and meaningful leverage) and a constructive earnings update (dividend coverage, reduced leverage, and stable credit metrics despite a modest NAV hit). Valuation is supportive due to the high dividend yield and reasonable P/E, while technical signals are more neutral than strongly bullish.
Positive Factors
Strong cash generation
OBDC's trailing‑12‑month operating and free cash flow (~$1.48B with ~37% FCF growth) indicates durable internal cash generation. Persistent cashflow supports sustainable dividend funding, buybacks and opportunistic deployments, improving resilience through credit cycles and reducing reliance on volatile capital markets.
Negative Factors
Meaningful structural leverage
Consistent multi‑year debt-to-equity in the ~1.18–1.26 range shows the company operates with meaningful leverage. That structural leverage amplifies returns but also raises vulnerability to rising funding costs or credit stress, which can pressure distributable income and limit capital allocation flexibility over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
OBDC's trailing‑12‑month operating and free cash flow (~$1.48B with ~37% FCF growth) indicates durable internal cash generation. Persistent cashflow supports sustainable dividend funding, buybacks and opportunistic deployments, improving resilience through credit cycles and reducing reliance on volatile capital markets.
Read all positive factors

Blue Owl Capital (OBDC) vs. SPDR S&P 500 ETF (SPY)

Blue Owl Capital Business Overview & Revenue Model

Company Description
Blue Owl Capital Corporation (OBDC) is a publicly traded business development company (BDC) managed by Blue Owl Capital that provides financing primarily to U.S. middle-market companies. The company’s core activity is originating and investing in ...
How the Company Makes Money
OBDC makes money primarily from investment income generated by its portfolio of private credit investments, especially directly originated loans to middle-market borrowers. The key revenue stream is interest income earned on these loans, which oft...

Blue Owl Capital Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
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.
Positive Updates
Adjusted NII and ROE Improvement
Adjusted net investment income (NII) was $0.34 per share in Q2, up from $0.31 in Q1 (~+9.7%), translating into a 9.6% annualized ROE — up over 100 basis points quarter-over-quarter and providing a healthy cushion above the base dividend.
Negative Updates
Modest NAV Decline
Net asset value (NAV) per share declined to $14.26 from $14.41 last quarter, a drop of ~$0.15 (~-1.0%), primarily driven by a credit-specific markdown rather than broad spread widening.
Read all updates
Q2-2026 Updates
Negative
Adjusted NII and ROE Improvement
Adjusted net investment income (NII) was $0.34 per share in Q2, up from $0.31 in Q1 (~+9.7%), translating into a 9.6% annualized ROE — up over 100 basis points quarter-over-quarter and providing a healthy cushion above the base dividend.
Read all positive updates
Company Guidance
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.

Blue Owl Capital Financial Statement Overview

Summary
Profitability and recent cash generation are solid (TTM net margin ~29.5% and strong TTM operating/free cash flow), supporting a healthy underlying earnings profile. Offsetting this, results have been volatile across years (uneven revenue and cash flow swings), and leverage appears meaningful in multi-year balance sheets (debt-to-equity ~1.18–1.26), increasing sensitivity to credit and funding conditions.
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
70
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.41B1.68B1.10B1.27B808.76M882.31M
Gross Profit954.58M1.26B665.75M864.33M535.63M689.66M
EBITDA818.73M1.24B607.34M810.68M476.13M663.31M
Net Income288.63M627.41M594.98M793.31M466.36M624.88M
Balance Sheet
Total Assets15.35B17.19B13.87B13.51B13.58B13.30B
Cash, Cash Equivalents and Short-Term Investments237.44M9.84M431.77M572.59M348.67M425.66M
Total Debt7.90B9.30B7.46B7.08B7.28B7.08B
Total Liabilities8.32B9.79B7.91B7.49B7.70B7.36B
Stockholders Equity7.03B7.40B5.95B6.02B5.88B5.94B
Cash Flow
Free Cash Flow2.47B1.74B160.22M514.37M423.79M-1.23B
Operating Cash Flow2.47B1.74B160.22M514.37M423.79M-1.23B
Investing Cash Flow63.30M0.000.00621.24M-206.52M0.00
Financing Cash Flow-1.25B-1.69B-305.72M-921.04M-219.33M1.32B

Blue Owl Capital Risk Analysis

Blue Owl Capital disclosed 105 risk factors in its most recent earnings report. Blue Owl Capital reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Blue Owl Capital Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
$6.08B12.6229.39%2.58%32.02%
72
Outperform
$5.74B20.793.95%13.37%1.32%-62.13%
72
Outperform
$8.78B23.0717.07%0.86%21.61%34.84%
72
Outperform
$5.14B7.5630.31%2.14%4.76%78.90%
71
Outperform
$4.72B15.7811.39%0.97%-6.77%-7.42%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
66
Neutral
$7.47B9.7523.07%7.01%6.93%19.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OBDC
Blue Owl Capital
11.55
-0.92
-7.39%
CACC
Credit Acceptance
581.25
117.33
25.29%
FCFS
FirstCash
208.73
73.70
54.58%
NNI
Nelnet
126.70
4.56
3.73%
SLM
SLM
27.32
-3.76
-12.11%
OMF
OneMain Holdings
63.16
11.35
21.92%

Blue Owl Capital Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Blue Owl Capital Extends Revolving Credit, Simplifies Financing
Positive
Jun 30, 2026
On June 25, 2026, Blue Owl Capital Corporation amended its senior secured revolving credit agreement, extending the revolver availability from November 2028 to June 2030 and pushing the scheduled maturity date from November 2029 to June 2031. The ...
Executive/Board ChangesShareholder Meetings
Blue Owl Shareholders Elect Directors, Ratify KPMG Auditor
Positive
Jun 26, 2026
At its Annual Meeting of Shareholders held on June 25, 2026, Blue Owl Capital Corporation shareholders elected Eric Kaye and Victor Woolridge to the board of directors, each to serve until the 2029 annual meeting and until their successors are ele...
Business Operations and StrategyPrivate Placements and Financing
Blue Owl Capital Completes $400 Million Unsecured Notes Offering
Positive
May 21, 2026
On May 21, 2026, Blue Owl Capital Corporation executed an eleventh supplemental indenture with Deutsche Bank Trust Company Americas and closed a $400 million offering of 6.300% unsecured notes maturing on August 15, 2031. The notes pay semiannual ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 06, 2026