Declares Quarterly Distribution of $0.33 Per Share
NEW YORK--(BUSINESS WIRE)--May 04, 2026--
Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its second fiscal quarter ended March 31, 2026.
Except where the context suggests otherwise, the terms "we," "us," "our, " and "Company" refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. "GC Advisors" refers to GC Advisors LLC, our investment adviser.
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, except per share
data)
March 31, 2026 December 31, 2025
---------------- ---------------------
Investment portfolio, at fair
value $ 8,317,245 $ 8,639,231
Total assets $ 8,529,697 $ 8,893,965
Net asset value per share $ 14.35 $ 14.84
Quarter Ended
---------------------------------------
March 31, 2026 December 31, 2025
---------------- ---------------------
Net investment income per share $ 0.33 $ 0.37
Amortization of purchase premium
per share 0.01 0.01
----------- --------------
Adjusted net investment income
per share(1) $ 0.34 $ 0.38
Net realized/unrealized
gain/(loss) per share $ (0.51) $ (0.12)
Reversal of realized/unrealized
loss resulting from the
amortization of purchase premium
per share(1) (0.01) (0.01)
----------- --------------
Adjusted net realized/unrealized
gain/(loss) per share(1) $ (0.52) $ (0.13)
Earnings/(loss) per share $ (0.18) $ 0.25
Adjusted earnings/(loss) per
share(1) $ (0.18) $ 0.25
Net asset value per share $ 14.35 $ 14.84
Distributions paid per share $ 0.33 $ 0.39
(1) On September 16, 2019 and June 3, 2024, the Company completed its
acquisition of Golub Capital Investment Corporation ("GCIC") and Golub
Capital BDC 3, Inc. ("GBDC 3"), respectively. Each acquisition was
accounted for under the asset acquisition method of accounting in
accordance with Accounting Standards Codification 805-50, Business
Combinations -- Related Issues. Under asset acquisition accounting, where
the consideration paid to GCIC and GBDC 3's stockholders exceeded the
relative fair values of the assets acquired, the premium paid by the
Company was allocated to the cost of the GCIC and GBDC 3 investments
acquired by the Company pro-rata based on their relative fair value.
Immediately following each acquisition, the Company recorded its assets
at their respective fair values and, as a result, the purchase premium
allocated to the cost basis of the assets acquired was immediately
recognized as unrealized depreciation on the Company's Consolidated
Statement of Operations. The purchase premium allocated to investments in
loan securities acquired from GCIC and GBDC 3 will amortize over the life
of the loans through interest income with a corresponding reversal of the
unrealized depreciation on such loans acquired through their ultimate
disposition. The purchase premium allocated to investments in equity
securities will not amortize over the life of the equity securities
through interest income and, assuming no subsequent change to the fair
value of the GCIC and GBDC 3 equity securities acquired and disposition
of such equity securities at fair value, the Company will recognize a
realized loss with a corresponding reversal of the unrealized
depreciation upon disposition of the GCIC and GBDC 3 equity securities
acquired. As a supplement to U.S. generally accepted accounting
principles ("GAAP") financial measures, the Company is providing the
following non-GAAP financial measures that it believes are useful for the
reasons described below: "Adjusted Net Investment Income" and "Adjusted
Net Investment Income Per Share" -- excludes the amortization of the
purchase premium from net investment income calculated in accordance with
GAAP. "Adjusted Net Investment Income Before Accrual for Capital Gain
Incentive Fee" -- Adjusted Net Investment Income excluding the accrual or
reversal for the capital gain incentive fee required under GAAP;
"Adjusted Net Realized and Unrealized Gain/(Loss)" and "Adjusted Net
Realized and Unrealized Gain/(Loss) Per Share" -- excludes the unrealized
loss resulting from the purchase premium write-down and the corresponding
reversal of the unrealized loss from the amortization of the premium from
the determination of realized and unrealized gain/(loss) in accordance
with GAAP. "Adjusted Net Income/(Loss)" and "Adjusted Earnings/(Loss) Per
Share" -- calculates net income and earnings per share based on Adjusted
Net Investment Income and Adjusted Net Realized and Unrealized
Gain/(Loss). The Company believes that excluding the financial impact of
the purchase premium write down in the above non-GAAP financial measures
is useful for investors as it is a non-cash expense/loss resulting from
the acquisitions of GCIC and GBDC 3 and is one method the Company uses to
measure its financial condition and results of operations. In addition,
the Company believes excluding the accrual of the capital gain incentive
fee under GAAP is useful as a portion of such accrual is not
contractually payable under the terms of the Company's investment
advisory agreement with GC Advisors.
Second Fiscal Quarter 2026 Highlights
-- Net investment income per share for the quarter ended March 31, 2026
was $0.33 as compared to $0.37 for the quarter ended December 31, 2025.
Excluding $0.01 per share in purchase premium amortization from the
GCIC/GBDC 3 acquisitions, and no accrual or reversal for the capital gain
incentive fee under GAAP, Adjusted Net Investment Income Per Share1 for
the quarter ended March 31, 2026 was $0.34. This compares to Adjusted Net
Investment Income Per Share1 of $0.38 for the quarter ended December 31,
2025 when excluding $0.01 per share in purchase premium amortization from
the GCIC/GBDC 3 acquisitions and no accrual or reversal for the capital
gain incentive fee under GAAP.
-- Credit spreads widened meaningfully during the quarter ended March 31,
2026, across a wide variety of credit asset classes, including loans to
sponsor-backed companies. For the Company, this spread widening led to
unrealized depreciation from fair value adjustments (not permanent
impairment of capital), even though overall credit performance of the
portfolio remained solid. Net realized and unrealized gain/(loss) per
share for the quarter ended March 31, 2026 was ($0.51). Adjusted Net
Realized and Unrealized Gain/(Loss) Per Share1 was ($0.52) when excluding
$0.01 per share net reversal of unrealized depreciation and realized loss
resulting from the amortization of the GCIC/GBDC 3 acquisition purchase
premium. Approximately 69%, or ($0.35) per share of the Adjusted Net
Realized and Unrealized Gain/(Loss) Per Share1 for the quarter ended
March 31, 2026, was due to the fair value adjustments on the Company's
investments rated in the Adviser's highest internal performance rating
("IPR") categories (as defined below) IPR 4 and IPR 5. As of March 31,
2026, the fair value of the Company's IPR 4 and IPR 5 debt investments as
a percentage of outstanding principal ("Average Price") declined to 98.5%
compared to 99.7% as of December 31, 2025. In addition, unrealized
depreciation resulting from the underperformance of certain portfolio
companies that were on or taken to non-accrual during the quarter and a
realized loss recognized on the restructuring of a portfolio company
investment which were partially offset by net realized and unrealized
gains recognized on the translation of foreign currency transactions,
contributed to the Adjusted Net Realized and Unrealized Gain/(Loss) Per
Share1 for the quarter ended March 31, 2026. For additional analysis,
please refer to the Quarter Ended 03.31.2026 Earnings Presentation
available on the Investor Resources link on the homepage of the Company's
website (www.golubcapitalbdc.com) under Events/Presentations. The
Earnings Presentation was also filed with the Securities and Exchange
Commission as an exhibit to a Form 8-K. These results compare to net
realized and unrealized gain/(loss) per share of ($0.12) during the
quarter ended December 31, 2025. Adjusted Net Realized and Unrealized
Gain/(Loss) Per Share1 for the quarter ended December 31, 2025 was
($0.13) when excluding $0.01 per share net reversal of unrealized
depreciation and realized loss resulting from the amortization of the
GCIC/GBDC 3 acquisition purchase premium.
-- Earnings per share for the quarter ended March 31, 2026 was a loss of
($0.18) as compared to earnings per share of $0.25 for the quarter ended
December 31, 2025. Adjusted Earnings/(Loss) Per Share1 for the quarter
ended March 31, 2026 was ($0.18) as compared to $0.25 for the quarter
ended December 31, 2025.
-- Net asset value ("NAV") per share decreased to $14.35 at March 31, 2026
from $14.84 at December 31, 2025.
-- On March 30, 2026, we paid a quarterly distribution of $0.33 per
share.
-- On May 1, 2026, our board of directors declared a quarterly
distribution of $0.33 per share, which is payable on June 29, 2026, to
stockholders of record as of June 15, 2026.
-- During the three months ended March 31, 2026, we opportunistically
repurchased approximately 2,236,904 shares of our common stock for an
aggregate purchase price of approximately $27.8 million, at an aggregate
price of $12.43 per share, and during the period April 1, 2026 through
May 4, 2026 we repurchased approximately 0.7 million shares of our common
stock for an aggregate purchase price of approximately $8.4 million, at
an aggregate price of $12.93 per share in response to market volatility.
-- During the three months ended March 31, 2026, the Golub Capital
Employee Grant Program Rabbi Trust (the "Trust") purchased approximately
$18.7 million, or 1,500,000 shares, of our common stock for the purpose
of awarding incentive compensation to employees of Golub Capital. During
the calendar year 2025, the Trust purchased approximately $45.1 million
or 3,089,459 shares, of our common stock.
Portfolio and Investment Activities
As of March 31, 2026, the Company had investments in 420 portfolio companies with a total fair value of $8,317.2 million. This compares to the Company's portfolio as of December 31, 2025, when the Company had investments in 420 portfolio companies with a total fair value of $8,639.2 million. Investments in portfolio companies as of March 31, 2026 and December 31, 2025 consisted of the following:
As of March 31, 2026 As of December 31, 2025
------------------------------- -------------------------------
Investments Percentage of Investments Percentage of
at Fair Value Total at Fair Value Total
Investment
Type (In thousands) Investments (In thousands) Investments
----------- ---------------- ------------- ---------------- -------------
Senior
secured $ 403,460 4.9% $ 414,507 4.8%
One stop 7,241,236 87.0 7,531,078 87.1
Junior
debt(*) 57,190 0.7 61,019 0.8
Equity 615,359 7.4 632,627 7.3
------------ -------- --- ------------ ------- ----
Total $ 8,317,245 100.0% $ 8,639,231 100.0%
============ ======== ============ ======= ===
(*) Junior debt is comprised of second lien and subordinated debt.
The following table shows the asset mix of our new investment commitments for the three months ended March 31, 2026:
New Investment
Commitments Percentage of
(In thousands) Commitments
---------------- ---------------
Senior secured $ 1,000 5.6%
One stop 16,380 92.4
Junior debt(*) -- --
Equity 354 2.0
------------ ---------- ---
Total new investment commitments $ 17,734 100.0%
============ ==========
(*) Junior debt is comprised of second lien and subordinated debt.
Total investments in portfolio companies at fair value were $8,317.2 million at March 31, 2026. As of March 31, 2026, total assets were $8,529.7 million, net assets were $3,748.1 million and net asset value per share was $14.35.
Consolidated Results of Operations
For the second fiscal quarter of 2026, the Company reported GAAP net loss of ($46.8) million or ($0.18) per share and Adjusted Net Loss(2) of ($46.8) million or ($0.18) per share. GAAP net investment income was $85.5 million or $0.33 per share and Adjusted Net Investment Income(1) was $88.1 million or $0.34 per share. GAAP net realized and unrealized gain/(loss) was ($132.3) million or ($0.51) per share and Adjusted Realized and Unrealized Gain/(Loss)(1) was ($134.9) million or ($0.52) per share.
Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.
Liquidity and Capital Resources
The Company's liquidity and capital resources are derived from the Company's debt securitizations (also known as collateralized loan obligations, or CLOs), unsecured notes, revolving credit facilities and cash flow from operations. The Company's primary uses of funds from operations include investments in portfolio companies and payment of fees and other expenses that the Company incurs. The Company has used, and expects to continue to use, its debt securitizations, unsecured notes, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities and its dividend reinvestment plan to finance its investment objectives.
As of March 31, 2026, we had cash, cash equivalents and foreign currencies of $72.2 million, restricted cash, restricted cash equivalents and restricted foreign currencies of $63.0 million and $4,723.9 million of debt outstanding. As of March 31, 2026, subject to leverage and borrowing base restrictions, we had approximately $1,049.8 million of remaining availability, in the aggregate, on our revolving credit facility with JPMorgan. In addition, as of March 31, 2026, we had $300.0 million of remaining commitments and availability on our unsecured line of credit with GC Advisors.
The Company's GAAP leverage ratio remained stable at 1.27x as of March 31, 2026 and our GAAP debt-to-equity ratio, net(3) increased modestly to 1.24x as of March 31, 2026 (1.21x, on average, throughout the quarter ended March 31, 2026).
Portfolio and Asset Quality
GC Advisors regularly assesses the risk profile of each of the Company's investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors' internal performance ratings:
Internal Performance Ratings
------------------------------------------------------------------------------
Rating Definition
------ --------------------------------------------------------------------
5 Involves the least amount of risk in our portfolio. The borrower is
performing above expectations, and the trends and risk factors are
generally favorable.
4 Involves an acceptable level of risk that is similar to the risk at
the time of origination. The borrower is generally performing as
expected, and the risk factors are neutral to favorable.
3 Involves a borrower performing below expectations and indicates that
the loan's risk has increased somewhat since origination. The
borrower could be out of compliance with debt covenants; however,
loan payments are generally not past due.
2 Involves a borrower performing materially below expectations and
indicates that the loan's risk has increased materially since
origination. In addition to the borrower being generally out of
compliance with debt covenants, loan payments could be past due (but
generally not more than 180 days past due).
1 Involves a borrower performing substantially below expectations and
indicates that the loan's risk has substantially increased since
origination. Most or all of the debt covenants are out of compliance
and payments are substantially delinquent. Loans rated 1 are not
anticipated to be repaid in full and we will reduce the fair market
value of the loan to the amount we anticipate will be recovered.
Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments. For additional analysis on the Company's internal performance ratings as of March 31, 2026, please refer to the Quarter Ended 03.31.2026 Earnings Presentation available on Investors Resources link on the homepage of the Company's website (www.golubcapitalbdc.com) under Events/Presentations.
The following table shows the distribution of the Company's investments on the 1 to 5 internal performance rating scale at fair value as of March 31, 2026 and December 31, 2025:
March 31, 2026 December 31, 2025
--------------------------------- ---------------------------------
Internal Investments Percentage of Investments Percentage of
Performance at Fair Value Total at Fair Value Total
Rating (In thousands) Investments (In thousands) Investments
----------- ---------------- ------------- ---------------- -------------
5 $ 123,169 1.5% $ 240,987 2.8%
4 7,288,701 87.6 7,412,877 85.8
3 722,546 8.7 875,417 10.1
2 182,722 2.2 109,950 1.3
1 107 0.0 * -- --
------------ ------------- ------------ ------- ----
Total $ 8,317,245 100.0% $ 8,639,231 100.0%
============ ======== ============ ======= ===
(*) Represents an amount less than 0.1%
The table below details the fair value of our debt investments as a percentage of the outstanding principal value by internal performance rating held as of March 31, 2026 and December 31, 2025, the net change in unrealized depreciation on debt and equity investments for the three months ending March 31, 2026 and the primary drivers of reductions in average price of our debt investments by internal performance rating category as for March 31, 2026 as compared to December 31, 2025:
Net Change in Unrealized
Average Depreciation on
Price(1) Investments(2,3)
--------------- -------------------------
March December
31, 31, $ Per Primary
Category 2026 2025 Share % to Total Driver
----------------------- ----- -------- ------- ---------------- ------------
Internal Performance
Ratings 4 and 5
(Performing At or Above Spread
Expectations) 98.5% 99.7% $(0.35) 69% widening
Spread
Internal Performance widening,
Rating 3 (Performing credit
Below Expectations) 92.2 92.6 $(0.08) 16% challenges
Internal Performance
Ratings 1 and 2 Pre-existing
(Performing Materially credit
Below Expectations) 45.3 45.7 $(0.08) 16% challenges
----- -------- ------- ---------------- ------------
Total 96.8% 98.2% $(0.51) 100%
===== ======== ======= ================
____________________
Note: Percentages may not sum due to rounding.
(1) Includes only debt investments held as of March 31, 2026 and December
31, 2025. Price reflects the fair value of debt investments as a
percentage of the outstanding principal value by Internal Performance
Rating category.
(2) Net change in unrealized depreciation on investments reflect the net
change in unrealized appreciation or depreciation on total debt and
equity investments for the three months ended March 31, 2026 and
excludes (i) the change in unrealized appreciation or depreciation
resulting from the translation of assets and liabilities in foreign
currencies and forward currency contracts and (ii) the reversal of the
unrealized loss resulting from GCIC/GBDC 3 purchase premium
amortization.
(3) Based on weighted average share outstanding for the three months ended
March 31, 2026.
Conference Call
The Company will host an earnings conference call at 11:00 am (Eastern Time) on Tuesday, May 5, 2026 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (800) 715-9871 approximately 10-15 minutes prior to the call; international callers should dial (646) 307-1963. Participants should reference Golub Capital BDC, Inc. when prompted or reference conference ID number 8711124. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Resources link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 03.31.2026 Earnings Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 11:59 p.m. (Eastern Time) on May 12, 2026. To hear the replay, please dial (800) 770-2030. International dialers, please dial +1 (609) 800-9909. For all replays, please reference program ID number 8711124.
Golub Capital BDC, Inc. and
Subsidiaries
Consolidated Statements of
Financial Condition
(In thousands, except share and
per share data)
March 31, 2026 December 31, 2025
---------------- ---------------------
Assets (unaudited) (unaudited)
Investments, at fair value (cost
of $8,477,016 and $8,653,728,
respectively) $ 8,317,245 $ 8,639,231
Cash and cash equivalents 65,429 84,310
Unrestricted foreign currencies
(cost of $6,884 and $9,406,
respectively) 6,763 9,659
Restricted cash and cash
equivalents 62,987 66,573
Interest receivable 63,678 72,129
Receivable for investments 3,587 6,701
Other assets 10,008 15,362
----------- --------------
Total Assets $ 8,529,697 $ 8,893,965
=========== ==============
Liabilities
Debt $ 4,723,905 $ 4,903,076
Less unamortized debt issuance
costs (21,427) (23,849)
----------- --------------
Debt less unamortized debt
issuance costs 4,702,478 4,879,227
Interest payable 33,891 49,092
Management and income incentive
fees payable 36,533 39,637
Accounts payable and other
liabilities 8,675 16,855
----------- --------------
Total Liabilities 4,781,577 4,984,811
----------- --------------
Net Assets
Preferred stock, par value $0.001
per share, 1,000,000 shares
authorized, zero shares issued
and outstanding as of March 31,
2026 and December 31, 2025,
respectively. -- --
Common stock, par value $0.001
per share, 500,000,000 shares
authorized, 261,147,881 issued
and outstanding as of March 31,
2026 and 263,384,785 issued and
outstanding as of December 31,
2025. 261 263
Paid in capital in excess of par 3,967,414 3,995,213
Distributable earnings (219,555) (86,322)
----------- --------------
Total Net Assets 3,748,120 3,909,154
----------- --------------
Total Liabilities and Total Net
Assets $ 8,529,697 $ 8,893,965
=========== ==============
Number of common shares
outstanding 261,147,881 263,384,785
Net asset value per common share $ 14.35 $ 14.84
Golub Capital BDC, Inc. and
Subsidiaries
Consolidated Statements of
Operations
(In thousands, except share
and per share data)
Three months ended
---------------------------------------
March 31, 2026 December 31, 2025
---------------- ---------------------
(unaudited) (unaudited)
Investment income
Interest income $ 183,528 $ 201,443
Acquisition purchase price
premium amortization (2,520) (3,168)
Dividend income 6,360 7,619
Fee income 766 1,113
----------- --------------
Total investment income 188,134 207,007
Expenses
Interest and other debt
financing expenses 61,069 66,314
Base management fee 21,035 22,115
Incentive fee 15,542 17,457
Administrative service fee 2,939 3,180
Professional fees 1,627 1,785
General and administrative
expenses 375 398
----------- --------------
Total expenses 102,587 111,249
----------- --------------
Net investment income after
tax 85,547 95,758
Net gain (loss) on investment
transactions
Net realized gain (loss)
from:
Investments (1,451) (2,718)
Foreign currency
transactions 1,354 (1,120)
Forward currency contracts (10,258) --
----------- --------------
Net realized gain (loss) in
investment transactions (10,355) (3,838)
Net change in unrealized
appreciation (depreciation)
from:
Investments (131,632) (29,014)
Translation of assets and
liabilities in foreign
currencies (4,398) 2,048
Forward currency contracts 14,042 292
----------- --------------
Net change in unrealized
appreciation (depreciation)
on investment transactions (121,988) (26,674)
----------- --------------
Net gain (loss) on investment
transactions (132,343) (30,512)
----------- --------------
(Provision) benefit for
taxes on unrealized
appreciation on investments -- --
----------- --------------
Net increase (decrease) in net
assets resulting from
operations $ (46,796) $ 65,246
=========== ==============
Per Common Share Data
Basic and diluted earnings
per common share $ (0.18) $ 0.25
Dividends and distributions
declared per common share $ 0.33 $ 0.39
Basic and diluted weighted
average common shares
outstanding 262,676,687 263,678,730
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc. ("GBDC") is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. GBDC invests primarily in one stop and other senior secured loans to middle market companies that are often sponsored by private equity investors. GBDC's investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital LLC group of companies ("Golub Capital").
ABOUT GOLUB CAPITAL
Golub Capital is a market-leading, award-winning direct lender and experienced private credit manager. The firm specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. Golub Capital's sponsor finance expertise also forms the foundation of its Broadly Syndicated Loan and Credit Opportunities investment programs. Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.
As of January 1, 2026, Golub Capital had over 1,000 employees and over $90 billion of capital under management, a gross measure of invested capital including leverage. The firm has offices in North America, Europe, Asia and the Middle East. For more information, please visit golubcapital.com.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
___________________ (1) See footnote 1 to "Selected Financial Highlights" above. (2) See footnote 1 to "Selected Financial Highlights" above. (3) GAAP debt-to-equity, net is calculated as (a) total debt reduced by (i) cash, (ii) cash equivalents and foreign currencies and (iii) restricted cash held for partial repayment on notes of certain of our securitization vehicles past their reinvestment period term (if any) divided by (b) total net assets.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260504411563/en/
CONTACT: Christopher Ericson
312-212-4036
cericson@golubcapital.com
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May 04, 2026 16:22 ET (20:22 GMT)