Blue Owl Capital (OBDC) Financials

Blue Owl Capital (NYSE: OBDC) has delivered solid financial results in the most recent quarters with steady growth in net income and revenue, along with a consistent capital structure strategy. Reviewing the quarterly data over the last four years, several important trends and financial highlights emerge:

• Q1 2025 net income attributable to common shareholders reached $242.6 million, advancing from $182.5 million in Q1 2024, indicating good bottom-line growth.
• Total revenue in Q1 2025 was $367.5 million, up from $279.1 million in Q1 2024, driven primarily by increased interest income.
• Net interest income rose significantly to $310.5 million in Q1 2025 from $280.4 million in Q1 2024, showing strong earnings from interest-bearing assets.
• The company maintained consistent dividend payouts, with dividends paid in recent quarters around $160-$170 million, signaling steady shareholder returns.
• Assets and equity have grown steadily over the last four years; total assets increased from $13.7 billion in Q1 2023 to $18.4 billion in Q1 2025, while common equity rose from $6.0 billion to $7.7 billion in the same period.

• Net realized and unrealized capital gains on investments fluctuated significantly quarter-to-quarter, affecting non-interest income, with notable gains in Q1 2025 ($51.4 million) versus losses in Q4 2024 (-$81.5 million).
• Total non-interest expense varied but remained in the $90 million to $110 million range recently, indicating stable operating costs despite revenue growth.
• Blue Owl's share count has increased due to share issuances, expanding from approximately 390 million weighted average shares in early 2023 to around 495 million in Q1 2025, diluting earnings per share growth somewhat.
• Cash and cash equivalents fluctuated each quarter but remain robust, supporting the firm’s liquidity position.
• Net cash from continuing operating activities shows volatility, with strong positive cash flow in Q4 2024 ($454 million) but more modest amounts in other quarters, reflecting timing of working capital changes.

• Interest expense on long-term debt has risen alongside increased debt issuance, with interest paid climbing from ~$103.9 million in Q1 2023 to $148.5 million in Q1 2025, which may pressure net interest margin if asset yields do not keep pace.
• The company’s repayment of debt remains high, often near or exceeding new debt issuance, reflecting active balance sheet management but also significant leverage risk.
• Net cash from continuing financing activities has been negative or low in recent quarters, indicating higher outflows from debt repayment and dividend payments.
• Volatility in investment banking income and realized investment gains introduces earnings unpredictability and revenue swings quarter-to-quarter.

Summary: Blue Owl Capital has shown consistent growth in key profitability metrics, supported by expanding assets and equity, while maintaining solid liquidity and disciplined capital returns via dividends. However, rising debt-related expenses and variability from investment-related income create some earnings volatility. Investors should watch for continued margin management and stability of capital gains to sustain profitability momentum.