It has been about a month since the last earnings report for Blue Owl Capital Corporation (OBDC). Shares have added about 0.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Blue Owl Capital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Blue Owl Capital Q2 Earnings Beat Estimates on Lower Interest Expenses
Blue Owl Capital reported second-quarter 2026 adjusted earnings per share (EPS) of 34 cents, which beat the Zacks Consensus Estimate by 6.3%. The bottom line increased 9.7% year over year.
Total investment income declined 17.4% year over year to $401.3 million. The top line beat the consensus mark by 1.8%.
The strong quarterly results were supported by lower expenses, particularly interest expense, as daily average borrowings declined. However, the benefit was partly offset by a year-over-year decline in net investment income, primarily due to lower interest income.
Q2 Results: Key Insights
Adjusted net investment income of $170.6 million fell 17.1% year over year. New investment commitments amounted to $319 million across five new portfolio companies and eight existing ones.
Blue Owl Capital ended the second quarter with investments in 229 portfolio companies, backed by an aggregate fair value of $15 billion. Based on the fair value, the average investment size in each portfolio company was $65.3 million as of June 30, 2026.
Total expenses decreased 15.9% year over year to $224.5 million in the second quarter due to lower interest expenses and management fees.
OBDC recorded an adjusted net increase in net assets resulting from operations of $65.7 million, which decreased from $137.5 million a year ago.
OBDC’s Q2 Financial Update
Blue Owl Capital exited the second quarter with a cash balance of $237.4 million, which declined from the 2025-end level of $558.7 million. Total assets of $15.3 billion decreased from $17.2 billion as of 2025-end.
Debt was $7.9 billion, down from $9.3 billion as of Dec. 31, 2025. OBDC had $4.2 billion of undrawn capacity under its credit facilities. At the end of the reported quarter, net debt to equity was 1.11X.
Net operating cash flow in the first half of 2026 was $1.5 billion, up from the prior-year figure of $1 billion.
Q2 Dividend & Repurchase Update
The company’s board of directors declared a third-quarter dividend of 31 cents per share for stockholders of record as of Sept. 30, 2026, payable on or before Oct. 15, 2026, and a second-quarter supplemental dividend of 2 cents per share for stockholders of record as of Aug. 31, 2026, payable on or before Sept. 15, 2026.
As per Blue Owl Capital’s previously announced repurchase program (expiring in 18 months from the approval date of Feb. 18, 2025), it may purchase shares up to $300 million. The company repurchased shares worth $35 million in the second quarter of 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, Blue Owl Capital Corporation has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Blue Owl Capital Corporation has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Blue Owl Capital Corporation belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Coinbase Global, Inc. (COIN), has gained 32.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Coinbase Global reported revenues of $1.22 billion in the last reported quarter, representing a year-over-year change of -18.5%. EPS of -$0.39 for the same period compares with $0.12 a year ago.
Coinbase Global is expected to post a loss of $0.21 per share for the current quarter, representing a year-over-year change of -114.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Coinbase Global. Also, the stock has a VGM Score of D.
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Blue Owl Capital Corporation (OBDC): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).