Blue Owl Capital Reports Significant Decrease in Net Assets and Investment Income for Q2 2026

Blue Owl Capital Corporation reported a net decrease in net assets of $122.2 million for the three months ended June 30, 2026, compared to a net increase of $56.7 million for the same period in the prior year. For the six months ended June 30, 2026, the company experienced a net decrease in net assets of $365.5 million, a significant shift from a net increase of $1.73 billion in the comparable period of 2025. This change was largely influenced by a net change in unrealized losses of $95.5 million and net realized losses of $14.9 million in the three months ended June 30, 2026, contrasting with net unrealized losses of $89.8 million and net realized gains of $10.6 million in the prior year period.

Total investment income for the three months ended June 30, 2026, was $401.3 million, a decrease from $485.8 million in the same period of 2025. This decline was primarily attributed to lower interest income, which fell by $111.6 million, due to a reduction in the portfolio size and a decrease in the weighted average yield of debt investments. However, other income and dividend income saw increases of $15.0 million and $11.0 million, respectively, partially offsetting the decline in interest income. For the six months ended June 30, 2026, total investment income was $798.1 million, down from $950.4 million in the prior year period, also largely driven by a decrease in interest income.

Total operating expenses for the three months ended June 30, 2026, decreased to $224.5 million from $266.8 million in the prior year period. This reduction was primarily due to lower interest expense, performance-based incentive fees, and management fees. Interest expense decreased by $28.6 million, reflecting a reduction in average daily borrowings and a lower average interest rate. Similarly, total operating expenses for the six months ended June 30, 2026, decreased to $459.6 million from $526.4 million in the comparable period of 2025, driven by similar factors.

As of June 30, 2026, the Company's total investments at fair value were $14.96 billion, a decrease from $16.47 billion as of December 31, 2025. The portfolio remains diversified across various industries, with the largest concentrations in Internet software and services (11.6%), Healthcare providers and services (8.5%), and Asset based lending and fund finance (7.4%). Geographically, the majority of investments are in the United States, with the South region representing 37.5% of the portfolio. The Company's weighted average total yield on its debt and income-producing securities at fair value was 9.9% as of June 30, 2026.

The Company's net asset value per share decreased to $14.26 as of June 30, 2026, from $14.81 as of December 31, 2025. For the six months ended June 30, 2026, the net increase in net assets resulting from operations was $41.4 million, or $0.08 per share, a significant decrease from $380.2 million, or $0.76 per share, for the same period in 2025. The Company declared distributions of $0.37 and $0.31 per share for the first and second quarters of 2026, respectively. The Company also continued its stock repurchase program, repurchasing approximately 6.3 million shares for $70.3 million during the six months ended June 30, 2026.