Golub Capital BDC (GBDC) Q4 2025 Earnings Call Transcript
Adjusted NII per share (Quarter) $0.39, translating to an adjusted NII ROE of 10.4%. This performance was supported by solid credit results and attractive borrowing costs.
Adjusted Net Income per share (Quarter) $0.36, translating to an adjusted ROE of 9.6%. This reflects solid credit performance and earnings supported by portfolio spreads and borrowing costs.
Cumulative Distributions (Fiscal Year 2025) $1.65 per share, representing 10.9% of end-of-year net asset value per share. This was driven by strong earnings and solid credit performance.
Net Asset Value (NAV) per share (End of Fiscal Year 2025) $14.97, which is $0.34 above the IPO NAV per share in 2010. This reflects consistent growth and solid portfolio performance.
Investment Income Yield (Quarter) 10.4%, a sequential decline of 20 basis points due to a modest decline in weighted average base rates and compression of portfolio spreads.
Borrowing Costs (Quarter) 5.6% annualized, reduced by repricing the syndicated corporate revolver and calling the final legacy GBDC 3 debt securitization.
Net Investment Spread (Quarter) 4.8%, a modest decline due to lower investment income yield and reduced borrowing costs.
Nonaccrual Investments (Quarter) 0.3% of the total investment portfolio at fair value, a very low level compared to the BDC peer industry average. This reflects strong credit quality.
Portfolio Size (Quarter) $8.8 billion at fair value, a modest decrease due to $371 million in repayments and exits, net of $60 million in new investment commitments.
Weighted Average Rate on New Investments (Quarter) 8.9%, a decline of 30 basis points from the prior quarter due to tighter spreads and lower SOFR reference rates.
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PagSeguro and Others Show Weak EPS Revisions Ahead of Earnings Season
- EPS Revision Ratings: Mid-cap financial stocks like PagSeguro Digital Ltd. (PAGS) and Inter & Co, Inc. (INTR) have received a D+ EPS revision grade, indicating weakened momentum in analyst earnings expectations, which may affect investor confidence.
- Quant Rating Performance: PagSeguro's quant rating stands at 3.23, Inter's at 3.18, and Golub Capital BDC (GBDC) at 3.03, all below the bullish threshold of 3.5, suggesting these companies face challenges in earnings growth.
- Market Reaction Expectations: As the earnings season approaches, analysts' downward revisions of earnings expectations for these companies may lead to increased stock price volatility, prompting investors to assess risks carefully.
- Industry-Wide Trends: Overall, the soft EPS revisions in the financial sector may reflect signs of economic slowdown, and investors should monitor policy risks and market volatility's impact on future performance.
Golub Capital BDC to Report Q4 2025 Financial Results on February 4, 2026
- Earnings Report Schedule: Golub Capital BDC will release its financial results for the quarter ending December 31, 2025, on February 4, 2026, after market close, emphasizing the company's commitment to transparency and investor communication.
- Conference Call Details: The company will host an earnings conference call at 10:00 a.m. (Eastern Time) on February 5, 2026, which is expected to attract significant attention from investors and analysts, thereby enhancing market confidence.
- Participation Instructions: Interested parties can join the call by dialing the specified numbers 10-15 minutes prior, ensuring timely communication and interaction, which improves the effectiveness of investor relations.
- Replay Availability: An archived replay of the call will be available until 11:59 p.m. (Eastern Time) on February 12, 2026, allowing investors who cannot attend live to access the information, reflecting the company's attentiveness to investor needs.
