Earnings

Golub Capital BDC Restores Profit After a Loss Quarter

The Tip Desk · August 3, 2026 · 4 min read

GAAP earnings were $0.22 a share in the quarter ended June 30, 2026, after a $0.18 loss three months earlier, as net investment income per share held at $0.33.

Golub Capital BDC, Inc. (GBDC), an externally managed business development company that invests primarily in one-stop and senior secured loans to middle-market companies, reported GAAP earnings of $0.22 a share for the quarter ended June 30, 2026, reversing a $0.18 loss in the quarter ended March 31, 2026. Adjusted earnings per share followed the same path.

The swing came from a sharp narrowing in net realized and unrealized losses. Net realized and unrealized loss per share was ($0.11), versus ($0.51) in the March quarter. Adjusted net realized and unrealized loss per share was ($0.12), versus ($0.52). The adjusted figure was primarily due to unrealized depreciation from underperformance of certain portfolio companies that were on or taken to non-accrual during the quarter and realized losses on the restructuring of two portfolio companies, partially offset by net realized gains on the exit of equity investments and the reversal of a portion of unrealized depreciation from market-wide credit-spread widening recognized in the March quarter.

Net investment income per share remained $0.33, matching the March quarter after a prior-quarter drop from $0.37 in the December 2025 quarter. Adjusted net investment income per share was $0.34, unchanged from March. GAAP net investment income was $85.2 million, or $0.33 a share, versus $85.5 million in the March quarter; adjusted net investment income was $87.5 million, or $0.34 a share. Interest income was $185.0 million, versus $183.5 million. Dividend income fell to $4.2 million from $6.4 million. Total investment income was $187.7 million. Total expenses were $102.5 million, with interest and other debt financing expenses at $61.0 million.

Net asset value per share decreased to $14.25 at June 30, 2026, from $14.35 at March 31, 2026, after a larger prior-quarter drop from $14.84 at December 31, 2025. The investment portfolio at fair value declined to $8,196.4 million from $8,317.2 million at March 31, 2026, after a prior-quarter drop from $8,639.2 million at year-end 2025. The company held investments in 424 portfolio companies, up from 420.

One-stop loans remained the core of the book at $7,162.5 million, or 87.4% of investments, versus $7,241.2 million, or 87.0%, at March 31, 2026. Senior secured loans were $391.1 million, or 4.8% of the portfolio. Equity investments were $583.7 million, or 7.1%. Junior debt was $59.0 million, or 0.7%. New investment commitments totaled $12.6 million in the three months ended June 30, 2026, of which $11.2 million, or 88.7%, was one-stop, $0.7 million senior secured, $0.7 million equity and none junior debt.

Internal performance ratings shifted. Rating 4 was 84.9% of fair value, or $6,958.7 million, versus 87.6%, or $7,288.7 million, at March 31, 2026. Rating 3 rose to 10.6%, or $869.2 million, from 8.7%, or $722.5 million. Rating 2 rose to 2.8%, or $227.9 million, from 2.2%, or $182.7 million. Rating 5 was 1.7%, or $140.6 million. Rating 1 was zero, versus $0.1 million.

Cash, cash equivalents and foreign currencies were $20.0 million at June 30, 2026. Debt outstanding was $4,561.8 million, down from $4,723.9 million at March 31, 2026. GAAP leverage was 1.24x and GAAP debt-to-equity, net, was 1.23x. Remaining availability on the revolving credit facility with JPMorgan was $1,725.9 million. On May 27, 2026, the company issued $500.0 million of 6.250% unsecured notes due 2031 and swapped the principal to pay SOFR plus 2.178%. On July 2, 2026, it amended the JPMorgan revolver to extend maturity to July 2, 2031 and remove the 0.10% term-SOFR adjustment.

In the three months ended June 30, 2026, the company repurchased about 1,113,992 shares for about $14.4 million at $12.90 a share. From July 1 through August 3, 2026, it repurchased about 0.4 million shares for about $4.9 million at $12.86 a share. The Golub Capital Employee Grant Program Rabbi Trust purchased $31.4 million, or 2,425,911 shares, in the quarter. Weighted-average common shares outstanding were 260.4 million. Common shares outstanding at period-end were 260.0 million.

The quarterly distribution remained $0.33 a share. It was paid June 29, 2026. The board declared a further $0.33 distribution on July 31, 2026, payable September 29, 2026, to stockholders of record as of September 14, 2026.