GBDC · Golub Capital BDC, Inc.

Golub Capital BDC, Inc. disclosed its fiscal Q2 2026 results via Exhibit 99.1, highlighting a net loss per share of ($0.18) primarily driven by $0.51 per share in net unrealized losses on investments. These losses stemmed mainly from market-driven credit spread widening in high-performing credits (69% of impact from ratings 4-5, where fair value declined from 99.7% to 98.5% of par), with smaller contributions from underperforming borrowers. Adjusted net investment income held solid at $0.34 per share (down from $0.38 prior quarter), supported by stable portfolio spreads, falling borrowing costs at a weighted average of 5.2%, and a leading fee structure (1.0% base management fee, 15.0% incentive fee with 8.0% hurdle). Portfolio quality remained strong with ~89% rated 4 or 5 internally and non-accruals low at 1.4% of fair value, focused on first-lien senior secured loans to software and healthcare firms. Amid public BDC equity dislocation, management prioritized repurchases (2.2 million shares at 84% of prior NAV discount) over modest new commitments ($17.7 million vs. $336.6 million exits), reducing portfolio to $8.3 billion. Balance sheet stayed resilient with 1.24x net GAAP debt-to-equity, 80% floating-rate debt (51% unsecured), and $1.4 billion liquidity. NAV fell $0.49 to $14.35, partly offset by repurchase accretion. A $0.33 base dividend was declared for Q3 with adequate coverage, maintaining variable supplemental policy. Management emphasized continued portfolio company performance and prudent expense management as key NII drivers despite sector headwinds from delayed Q4 2025 rate cut impacts.