Golub Capital BDC : Presentation (GBDC FY 2026 Q2 Earnings Presentation)

Published: 2026-05-04 17:30:34 ET GBDC

Published on 05/04/2026 at 05:30 pm EDT

QUARTER ENDED MARCH 31, 2026

FY 2026 Q2 Earnings Review (Quarter Ended 03/31/2026)

Earnings Summary

Net investment income remained solid, though impacted by sector headwinds (i.e., delayed impact of CQ4 2025 interest rate cuts)

Adjusted net investment income per share of $0.34, or an annualized adjusted NII ROE of 9.5%1,2

Earnings per share impacted by market-driven credit spread widening and associated fair value adjustments

Net income per share of ($0.18) driven by ($0.51) per share of net unrealized losses on investments, primarily resulting from fair value markdowns in GBDC's highest performing portfolio companies and to a lesser extent additional fair value adjustments on GBDC's small tail of underperforming borrowers (see pg. 8)

Key net investment income profitability drivers:

Continued solid portfolio company performance

Stable current portfolio spreads, but delayed impact of calendar Q4 2025 interest rate cuts

Attractive and falling borrowing costs

Leading fee structure with (i) base management fee of 1.0%, and (ii) incentive fee rate of 15.0% (8.0% hurdle rate), and prudent operating expense management

Portfolio & Credit Quality

Continued strong portfolio company performance with ~89% of the total investment portfolio having internal performance ratings of '4' or '5'3

Non-accrual investments increased but still low at 1.4% of total investments at fair value (2.3% at cost)

Diversified and healthy software portfolio of first lien senior secured middle market loans, underpinned by Golub Capital's 20+ year track record of lending to technology and software portfolio companies

Balance Sheet Update

Net asset value of $14.35 per share, a decrease of $0.49 per share from $14.84 as of December 31, 2025

$8.3 billion investment portfolio at fair value with $336.6 million in exits/sales and $17.7 million in new investment commitments ($12.9 million funded at close) in the quarter ended March 31, 2026

Given public BDC equity market dislocation, continued to prioritize share repurchases over new investment commitments

Repurchased 2.2 million shares ($27.8 million) at a weighted average price of $12.43 per share (84% of our NAV per share as of December 31, 2025) during the quarter ended March 31, 2026

GAAP debt-to-equity ratio (net) remained stable at 1.24x4 (1.21x average for the quarter)

80%5 floating rate debt funding and 51% of debt funding is well-laddered unsecured debt

Weighted average cost of debt of 5.2%6

Total available liquidity of $1.4 billion

Distributions

Declared quarterly base distribution of $0.33 per share7 for FY 2026 Q3 and maintained a variable supplemental distribution policy

Adequate coverage of quarterly base distribution from adjusted net investment income

See the slide titled "Endnotes - FY 2026 Q2 Earnings Review (Quarter Ended 03/31/2026)" at the end of this presentation for footnotes.

Summary of Financial Results vs. Prior Quarter

Quarter Ended

December 31, 2025

March 31, 2026

Net Investment Income Per Share

Net investment income per share

$0.37

$0.33

Amortization of purchase premium per share1

0.01

Adjusted net investment income per share2 A

$0.38

$0.34

Net Realized/Unrealized Gain (Loss) Per Share

Net realized/unrealized gain (loss) per share

($0.12)

($0.51)

Reversal of realized/unrealized loss resulting from the amortization of purchase premium per share1

(0.01)

Adjusted net realized/unrealized gain (loss) per share2 B

($0.13)

($0.52)

Earnings Per Share

Earnings (loss) per share

$0.25

($0.18)

Adjusted earnings (loss) per share2 A + B

$0.25

($0.18)

Net Asset Value Per Share

$14.84

$14.35

See the slide titled "Endnotes - Summary of Financial Results vs. Prior Quarter" at the end of this presentation for footnotes.

Long History of Strong Shareholder Returns

As of March 31, 2026

Investors in GBDC's 2010 IPO have achieved a 9.4% IRR on NAV1

$36.25

$0.33

$0.73

$14.63

$20.84

$14.35

Apr-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26

1. The 9.4% internal rate of return ("IRR") on NAV is calculated using beginning of period NAV, distributions paid during the period and ending period NAV. Period beginning June 30, 2010 and ending March 31, 2026. GBDC made its initial public offering on April 15, 2010. GBDC's 1-, 5- and 10-Year IRRs (net of fees and expenses) are 5.6%, 9.6% and 8.6%, respectively.

Note: Amounts presented represent per share amounts for a hypothetical shareholder that purchased one share in GBDC's initial public offering ("IPO") on April 15, 2010. For illustrative purposes only; does not reflect the actual returns of a specific GBDC investor. Past performance does not guarantee future results.

Sources: SEC filings and Golub Capital analysis

Unrealized Losses Drove a NAV Per Share Decrease From December 31, 2025

$0.01

$0.33

($0.33)

$0.00*

$(0.00)*

($0.51)

($0.01)

$14.84

Adjusted NII: $0.341

$0.02

$14.35

Adjusted Net Realized & Unrealized Loss: ($0.52)1

December 31, 2025

Net Investment

Reversal of

Quarterly

Net Realized /

Net Realized Gain

Net Change in

Net Reversal of Accretion due to March 31, 2026 NAV

NAV

Income

Amortization of

Distribution Paid

Unrealized Gain

(Loss) on

Unrealized

Realized/Unrealized Share Repurchases

Purchase Premium

During March 31,

(Loss) on Foreign

Investments

Appreciation

Loss Resulting from

2026 Quarter

Currency

(Depreciation) on

the Purchase

Spread Widening in High Performing Credits Primary Driver of NAV Decline

Drivers of Net Change in Unrealized Depreciation Per Share

Average Price1

Category

Net Change in Unrealized Depreciation on Investments2, 3

Primary Driver

12/31/25 3/31/26

$ Per Share

% to Total

Internal Performance Ratings 4 and 5

(Performing At or Above Expectations)

99.7%

98.5%

$(0.35)

69%

Spread widening

Internal Performance Rating 3

(Performing Below Expectations)

92.6% 92.2% $(0.08) 16%

Spread widening, credit challenges

Internal Performance Ratings 1 and 2 Pre-existing

(Performing Materially Below Expectations)

45.7%

45.3%

$(0.08)

16%

credit challenges

Total

98.2%

96.8%

$(0.51)

100%

Note: Percentages may not sum due to rounding.

Includes only debt investments held as of December 31, 2025 and March 31, 2026. Price reflects the fair value of debt investments as a percentage of the outstanding principal value by Internal Performance Rating category.

Net change in unrealized depreciation on investments reflects 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 acquisition purchase premium amortization.

Based on weighted average shares outstanding for the three months ended March 31, 2026.

Portfolio Highlights - New Originations

Total investments at fair value decreased by approximately 3.7%, or $322.0 million, during the three months ended March 31, 2026.

Quarter Ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Select Portfolio Funds Roll Data (in millions)

New Investment Commitments

$298.9

$556.8

$86.5

$44.7

$17.7

Exits and Sales of Investments

390.1

305.8

370.8

302.9

336.6

Net Funds Growth1

(64.0)

340.3

(192.2)

(130.2)

(322.0)

Asset Mix of New Investments

Senior Secured 8 %

10 %

2 %

7 %

6 %

One Stop 91 %

87 %

93 %

91 %

92 %

Junior Debt2 0 %

1 %

2 %

0 %

Equity and Other Investments 1 %

2 %

3 %

2 %

Portfolio Rotation - Debt Investments

Weighted average rate on new investments3 9.7 %

9.2 %

8.9 %

8.6 %

8.8 %

Weighted average spread over the applicable base rate of new 5.4 %

5.1 %

4.9 %

Weighted average rate of sales and payoffs of portfolio investments5 10.4 %

9.8 %

9.4 %

9.0 %

Weighted average fees on new investments 0.8 %

0.8 %

0.9 %

0.6 %

0.7 %

Total investments in portfolio companies at fair value was $8.3 billion at March 31, 2026.

floating rate investments4

See the slide titled "Endnotes - Portfolio Highlights - New Originations" at the end of this presentation for footnotes.

Portfolio Highlights - Investment Mix

The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors.

$8,961,549

$8,621,220

$8,769,389

$8,639,231

$8,317,245

87%

Historical Investment Portfolio ($000)

9,000,000

8,500,000

8,000,000

7,500,000

7,000,000

6,500,000

6,000,000

5,500,000

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

First Lien Traditional Senior

First Lien One Stop

Junior Debt1 Equity

March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026

1. Junior Debt is comprised of second lien and subordinated debt.

Portfolio Highlights - Portfolio Diversity as of March 31, 2026

Portfolio Composition by Seniority

Diversification by Portfolio Company

Top 10

13%

Avg Size 0.2%

Portfolio Companies

1% 7% 5%

92%

First Lien

87%

First Lien Traditional Senior

First Lien One Stop

Junior Debt1 Equity

Remaining

Portfolio Companies 395

74%

Top 25

Portfolio Companies

26%

41 industries

below 3%

Portfolio Composition by Interest Rate Type on Loans2 Diversification by Industry3

Software 26%

Floating, 99%

Fixed, 1%

Healthcare Equipment & Supplies 3%

Hotels, Restaurants & Leisure 3%

IT Services 4%

Pharmaceuticals 4%

Healthcare Technology 4%

Automobiles 5%

Healthcare Providers & Services 8%

Diversified Consumer Services 6%

Specialty Retail 5%

Insurance 5%

Junior Debt is comprised of second lien and subordinated debt.

The percentage of fixed rate and floating rate loans is calculated using total debt investments at fair value and excludes equity investments.

Based on S&P 2018 industry code. The largest industries represented as approximate percentages of the portfolio at fair value are labeled. All other industry segments are each below 3%.

Portfolio Highlights - Software Portfolio Credit Quality

- 95% of the software investments are in internal performance rating categories '4' and '5'

Internal Performance Ratings

8.7%

89.1%

% of Portfolio at Fair Value

4.5%

0.5%

95.0%

2.2%

Software Portfolio Total Portfolio

Internal Performance Ratings 4 and 5

Internal Performance Rating 3

Internal Performance Ratings 1 and 2

(Performing At or Above Expectations)

(Performing Below Expectations)

(Performing Materially Below Expectations)

Portfolio Highlights - Credit Quality

Fundamental credit quality as of March 31, 2026 remained strong with over 89% of the investments in our portfolio at fair value having an Internal Performance Rating1 of 4 or higher.

As of March 31, 2026, non-accrual investments remained low at 2.3% and 1.4% as a percentage of total investments at cost and fair value, respectively.

Quarter Ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Non-Accrual - Total Investments

Non-accrual investments at amortized cost (000s)

$108,218

$107,606

$56,468

$112,311

$198,441

Non-accrual investments / total investments at amortized cost

1.2%

0.6%

1.3%

2.3%

Non-accrual investments at fair value (000s)

$60,481

$56,295

$27,321

$67,883

$118,510

Non-accrual investments / total investments at fair value

0.7%

0.6%

0.3%

0.8%

1.4%

Fair Value of Debt Investments

Fair value of total debt investments as a percentage of principal

98.4%

98.2%

98.4%

98.2%

96.8%

During the quarter ended March 31, 2026, the number of non-accrual investments increased to nineteen due to the addition of five portfolio company investments.

(loans)

1. Please see Internal Performance Ratings definitions on the following page.

Portfolio Highlights - Portfolio Ratings

Internal Performance Ratings

(% of Portfolio at Fair Value)

At Fiscal Year End

At Quarter End

Rating

2021

2022

2023

2024

2025

December 31, 2025

March 31, 2026

10.2%

4.6%

0.9%

1.9%

1.8%

2.8%

1.5%

80.7%

86.8%

84.2%

85.2%

87.6%

85.8%

87.6%

8.1%

7.3%

14.6%

11.6%

9.6%

10.1%

8.7%

1.0%

1.3%

0.3%

1.3%

1.0%

1.3%

2.2%

0.0%*

0.0%

0.0%*

Grand Total

100.0%

Internal Performance Rating Definitions

Rating Definition

5 Borrower is performing above expectations and the trends and risk factors are generally favorable

4 Borrower is generally performing as expected and the risk factors are neutral to favorable

3 Borrower could be out of compliance with debt covenants; however, loan payments are generally not past due

2 Borrower is performing materially below expectations and the loan's risk has increased materially since origination

1 Borrower is performing substantially below expectations and the loan's risk has substantially increased since origination

* Represents an amount less than 0.1%.

Portfolio Highlights - Economic Analysis

13.0%

12.0%

11.5%

12.5% 12.6% 12.8%

11.9%

12.2% 12.4%

12.3% 12.0%

11.2%

11.0%

10.0%

9.0%

9.2%

10.5%

10.0%

11.6% 11.9%

11.1%

12.0% 11.7%

10.9%

10.8% 10.6% 10.4%

10.5% 10.3% 10.1%

10.0% 9.7%

9.7%

8.0%

7.0%

7.3% 7.5%

6.9% 7.1%

8.4%

6.1%

6.7% 6.8%

7.3% 7.2% 7.0%

5.8%

6.5% 6.8%

9.4%

6.0%

5.0%

4.5% 4.5%

5.5%

4.6%

5.3% 5.4%

5.1% 5.2%

5.4%

5.8%

4.9%

5.3% 5.3%

5.2%

5.6% 5.4% 5.2%

5.3%

6.2%

5.9%

5.7%

5.0%

4.9%

4.3%

4.8%

4.0%

3.0%

2.0%

1.0%

2.8% 3.0%

0.7% 2.1%

3.7% 4.8%

4.4%

3.6%

4.6%

4.0%

4.6%

4.5%

3.7% 3.7%

FY'22 Q2

FY'22 Q3

FY'22 Q4¹

FY'23 Q1

FY'23 Q2

FY'23 Q3

FY'23 Q4²

FY'24 Q1

FY'24 Q2

FY'24 Q3³

FY'24 Q4

FY'25 Q1

FY'25 Q2

FY'25 Q3

FY'25 Q4

FY'26 Q1

FY'26 Q2

Investment income yield⁴ Income yield⁵

Weighted average cost of debt ⁷ ⁸ 3-Month Secured Overnight Financing Rate ("SOFR")

See the slide titled "Endnotes - Portfolio Highlights Economic Analysis" at the end of this presentation for footnotes.

Summary of Quarterly Results

Quarter Ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Net Investment Income Per Share

Net investment income per share

$0.37

$0.38

$0.37

$0.33

Amortization of purchase premium per share1

0.02

0.01

Adjusted net investment income per share1 A

$0.39

$0.38

$0.34

Net Realized/Unrealized Gain (Loss) Per Share

Net realized/unrealized gain/(loss) per share

($0.07)

($0.04)

($0.02)

($0.12)

($0.51)

Reversal of realized/unrealized loss resulting from the amortization of purchase premium per share1

(0.02)

(0.01)

Adjusted net realized/unrealized gain (loss) per share1

($0.09)

($0.05)

($0.03)

($0.13)

($0.52)

Earnings (Loss) Per Share

Earnings (loss) per share

$0.30

$0.34

$0.36

$0.25

($0.18)

Adjusted earnings (loss) per share1

A + B

$0.30

$0.34

$0.36

$0.25

($0.18)

Net Asset Value Per Share

$15.04

$15.00

$14.97

$14.84

$14.35

Distributions paid per share

$0.39

$0.33

1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled "Endnotes - Non-GAAP Financial Measures" at the end of this presentation for further description of the non-GAAP financial measures.

Quarterly Statements of Financial Condition

As of

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

(Dollar amounts in 000s, except share and per share data)

(unaudited)

(audited)

(unaudited)

Assets

Investments, at fair value

$8,621,220

$8,961,549

$8,769,389

$8,639,231

$8,317,245

Cash, cash equivalents and foreign currencies

116,927

99,756

23,616

93,969

72,192

Restricted cash, cash equivalents and foreign currencies

129,457

79,017

88,827

66,573

62,987

Other assets

82,261

96,191

96,467

94,192

77,273

Total Assets

$8,949,865

$9,236,513

$8,978,299

$8,893,965

$8,529,697

Liabilities

Debt

$4,833,150

$5,154,001

$4,926,778

$4,903,076

$4,723,905

Unamortized debt issuance costs

(26,232)

(26,853)

(26,005)

(23,849)

(21,427)

Interest payable

50,473

51,446

38,254

49,092

33,891

Management and income incentive fees payable

40,869

40,613

40,884

39,637

36,533

Other liabilities

8,107

21,977

15,821

16,855

8,675

Total Liabilities

$4,906,367

$5,241,184

$4,995,732

$4,984,811

$4,781,577

Total Net Assets

$4,043,498

$3,995,329

$3,982,567

$3,909,154

$3,748,120

Total Liabilities and Net Assets

$8,949,865

$9,236,513

$8,978,299

$8,893,965

$8,529,697

Net Asset Value per Share

$15.04

$15.00

$14.97

$14.84

$14.35

GAAP leverage

1.21x

1.30x

1.25x

1.27x

GAAP debt-to-equity, net1

1.16x

1.26x

1.23x

1.24x

Asset coverage2

182.8%

176.8%

180.2%

178.9%

178.8%

Number of shares of common stock outstanding

268,831,114

266,376,416

266,008,083

263,384,785

261,147,881

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.

Following stockholder approval of the application of the reduced asset coverage requirements available to business development companies to the Company, the minimum asset coverage ratio applicable to the Company decreased to 150% from 200% effective February 6, 2019.

Quarter Ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

(Dollar amounts in 000s, except share and per share data)

(unaudited)

Investment Income

Interest income

$208,895

$212,899

$211,548

$201,443

$183,528

Acquisition purchase premium amortization

(4,592)

(3,602)

(3,543)

(3,168)

(2,520)

Dividend and fee income

9,589

9,047

9,836

8,732

7,126

Total Investment Income

$213,892

$218,344

$217,841

$207,007

$188,134

Expenses

Interest and other debt financing expenses

$69,911

$70,698

$70,366

$66,314

$61,069

Base management fee

21,714

22,082

22,514

22,115

21,035

Incentive fee - net investment income

18,247

18,543

18,434

17,457

15,542

Other operating expenses

5,358

5,759

5,762

5,363

4,941

Total Expenses

$115,230

$117,082

$117,076

$111,249

$102,587

Income and excise taxes

Net Investment Income after Tax

$98,662

$101,262

$100,765

$95,758

$85,547

Net Gain (Loss) on Investments and Foreign Currency

Net realized gain (loss) on investments and foreign currency transactions

($11,041)

($24)

($33,460)

($3,838)

($10,355)

Net unrealized appreciation (depreciation) on investments and foreign

(13,718)

(15,032)

25,080

(29,891)

(124,518)

Net unrealized appreciation (depreciation) on investments due to

4,935

3,641

3,751

3,217

2,530

Net gain (loss) on investments and foreign currency

($19,824)

($11,415)

($4,629)

($30,512)

($132,343)

Provision for taxes on realized gain and unrealized appreciation on

146

211

154

Net Increase (Decrease) in Net Assets Resulting from Operations

$78,984

$90,058

$96,290

$65,246

($46,796)

Per Share Data

Net Investment Income Per Share

$0.37

$0.38

$0.37

$0.33

Adjusted Net Investment Income per share1

$0.39

$0.38

$0.34

Earnings (Loss) Per Share

$0.30

$0.34

$0.36

$0.25

($0.18)

Adjusted Earnings (Loss) Per Share1

$0.30

$0.34

$0.36

$0.25

($0.18)

Distributions Paid

$0.39

$0.33

Weighted average shares of common stock outstanding

266,484,213

266,844,118

266,345,245

263,678,730

262,676,687

Quarterly Operating Results

currency translation

purchase premium from GCIC and GBDC 3 acquisition1

investments

Financial Performance Highlights

Quarterly Return on Equity and Quarterly Distributions (Last 5 Years)

Regular Distribution

3.3%

2.8%

2.4%

2.6%

2.9% 4.0%

2.9%

3.7%

2.8%

0.6%

0.3%

1.0%

2.4%

2.0%^ 2.3%

2.0%

2.3% 2.4%

1.6%

(1.3)%

$0.44

$0.50 $0.49 $0.48

$0.46

$0.05

$0.04

$0.41

$0.04

$0.07

$0.05

$0.37

$0.39

$0.33

$0.29

$0.30

$0.06

Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26

*The quarterly return on equity is calculated as the annualized return on average equity divided by four. Return on equity calculations presented are based on (a) Adjusted Net Income for the period, as defined on the slide titled "Endnotes - Non-GAAP Financial Measures" at the end of this presentation, divided by (b) the daily weighted average of total net assets during the period presented. Adjusted Net Income is a non-GAAP measure and the Company believes this non-GAAP measure is useful as it excludes the non-cash expense/loss from the purchase premium as further described on the slide titled "Endnotes - Non-GAAP Financial Measures" at the end of this presentation. These returns do not represent an actual return to any investor in the Company.

^ Excludes impact of write-down of purchase premium.

Liquidity and Investment Capacity

Cash and Cash Equivalents

Unrestricted cash, cash equivalents and foreign currencies totaled $72.2 million as of March 31, 2026.

Restricted cash, cash equivalents and foreign currencies totaled $63.0 million as of March 31, 2026. Restricted cash is held in our securitization vehicle and is reserved for quarterly interest payments and is also available for new investments that qualify for reinvestment by these entities.

Debt Facilities - Availability

JPM Credit Facility - As of March 31, 2026, subject to leverage and borrowing base restrictions, we had approximately $1,049.8 million of remaining commitments and availability, in the aggregate, on our $1,997.5 million revolving credit facility with JPMorgan.

GC Advisors Revolver - As of March 31, 2026, subject to leverage and borrowing base restrictions, we had approximately $300.0 million of remaining commitments and availability, in the aggregate, on our $300.0 million unsecured line of credit with GC Advisors.

Disclaimer

Golub Capital BDC Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:29 UTC.