Golub Capital BDC, Inc. Announces Fiscal Year 2026 Second Quarter Financial Results

Published: 2026-05-04 16:23:04 ET GBDC

Declares Quarterly Distribution of $0.33 Per Share

Published on 05/04/2026 at 04:23 pm EDT

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

Adjusted net investment income per share1

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 share1

(0.01

)

(0.01

)

Adjusted net realized/unrealized gain/(loss) per share1

(0.52

)

(0.13

)

Earnings/(loss) per share

(0.18

)

0.25

Adjusted earnings/(loss) per share1

(0.18

)

0.25

Net asset value per share

14.35

14.84

Distributions paid per share

0.33

0.39

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:

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

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 Loss2 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 Income1 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, net3 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

Involves the least amount of risk in our portfolio. The borrower is performing above expectations, and the trends and risk factors are generally favorable.

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.

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.

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).

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

123,169

1.5

240,987

2.8

7,288,701

87.6

7,412,877

85.8

722,546

8.7

875,417

10.1

182,722

2.2

109,950

1.3

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:

Average Price1

Net Change in Unrealized Depreciation on Investments2,3

Category

March 31, 2026

December 31, 2025

$ Per Share

% to Total

Primary Driver

Internal Performance Ratings 4 and 5

(Performing At or Above Expectations)

98.5%

99.7%

$(0.35)

69%

Spread widening

Internal Performance Rating 3

(Performing Below Expectations)

92.2

92.6

$(0.08)

16%

Spread widening, credit challenges

Internal Performance Ratings 1 and 2

(Performing Materially Below Expectations)

45.3

45.7

$(0.08)

16%

Pre-existing credit challenges

Total

96.8%

98.2%

$(0.51)

100%

(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)

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)

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.

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