Summary
GBDC Chart
Golub Capital: A Dividend Cut Is Still Likely
I maintain my 'Hold' rating on GBDC due to ongoing concerns about dividend sustainability, despite a recent improvement in the payout ratio to 100%. The cessation of special dividends reduced short-term risk, but the base dividend remains at risk if adjusted net investment income doesn't stabilize. GBDC's portfolio quality is average, with a low non-accrual ratio, but negative net funds growth and dilution from the merger weigh on per-share results.
Golub Capital BDC, Inc. (GBDC) Q2 2025 Earnings Call Transcript
Golub Capital BDC, Inc. (NASDAQ:GBDC ) Q2 2025 Earnings Conference Call May 6, 2025 12:00 PM ET Company Participants David Golub - CEO & Director Matt Benton - COO Chris Ericson - CFO & Treasurer Conference Call Participants Finian O'Shea - Wells Fargo Robert Dodd - Raymond James Paul Johnson - KBW Operator Welcome to GBDC's Earnings Call for the Fiscal Quarter ended March 31, 2025. Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Golub Capital BDC (GBDC) Misses Q2 Earnings and Revenue Estimates
Golub Capital BDC (GBDC) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.51 per share a year ago.
Golub Capital BDC, Inc. Dividends
 GBDC 1 weeks ago Announced | Quarterly | $0.39 Per Share |
| GBDC 3 months ago Paid | Quarterly | $0.39 Per Share |
| GBDC 6 months ago Paid | Quarterly | $0.39 Per Share |
| GBDC 6 months ago Paid | Other | $0.05 Per Share |
| GBDC 9 months ago Paid | Quarterly | $0.39 Per Share |
Golub Capital BDC, Inc. Earnings
| 5 May 2025 Date | | 0.41 Cons. EPS | 0.3 EPS |
| 3 Feb 2025 Date | | 0.43 Cons. EPS | 0.37 EPS |
| 19 Nov 2024 Date | | 0.44 Cons. EPS | 0.45 EPS |
| 18 Nov 2024 Date | | - Cons. EPS | - EPS |
| 5 Aug 2024 Date | | 0.49 Cons. EPS | 0.05 EPS |
| GBDC 1 weeks ago Announced | Quarterly | $0.39 Per Share |
| GBDC 3 months ago Paid | Quarterly | $0.39 Per Share |
| GBDC 6 months ago Paid | Quarterly | $0.39 Per Share |
| GBDC 6 months ago Paid | Other | $0.05 Per Share |
| GBDC 9 months ago Paid | Quarterly | $0.39 Per Share |
| 5 May 2025 Date | | 0.41 Cons. EPS | 0.3 EPS |
| 3 Feb 2025 Date | | 0.43 Cons. EPS | 0.37 EPS |
| 19 Nov 2024 Date | | 0.44 Cons. EPS | 0.45 EPS |
| 18 Nov 2024 Date | | - Cons. EPS | - EPS |
| 5 Aug 2024 Date | | 0.49 Cons. EPS | 0.05 EPS |
Golub Capital BDC, Inc. (GBDC) FAQ
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Golub Capital BDC, Inc. Profile
| Asset Management Industry | Financial Services Sector | Mr. David B. Golub Ph.D. CEO | NASDAQ (NGS) Exchange | 38173M102 Cusip |
| US Country | 875 Employees | 3 Mar 2025 Last Dividend | 13 Apr 2020 Last Split | 15 Apr 2010 IPO Date |
Overview
Golub Capital BDC, Inc. (GBDC) operates as a business development company (BDC), focusing on providing debt and minority equity investments to middle-market companies typically backed by private equity investors. As an externally managed, closed-end, non-diversified management investment company, GBDC's investment strategy is tailored to support the growth and operational needs of these companies. GBDC primarily targets businesses across various sectors such as consumer services, healthcare, IT, and specialty retail, among others, predominantly within the United States.
Products and Services
- First Lien Traditional Senior Debt: These are debt instruments that hold the highest priority on a borrower's assets, providing GBDC with security in the form of a first claim on any payments or in the event of bankruptcy.
- First Lien One Stop: This is a flexible financing solution that combines the characteristics of senior and subordinated debt, designed to simplify the capital structure and ease the funding process for middle-market companies.
- Junior Debt and Equity: GBDC invests in subordinated debt or takes minority equity positions in companies, seeking to capitalize on higher yield opportunities while supporting the growth or operational initiatives of these firms.
- Senior Secured, One Stop, Unitranche: These investment options blend senior and junior debt into a single layer of financing, offering a simplified capital solution to businesses with tailored repayment profiles and risk-adjusted returns for GBDC.
- Second Lien: Loans positioned below first lien traditional senior debt in the priority of repayment but above unsecured debt, giving GBDC an intermediate level of security and potentially higher yields than senior debt.
- Subordinated and Mezzanine Loans: Typically unsecured and with lower priority in case of liquidation, these loans offer GBDC higher interest rates in exchange for taking on more risk compared to secured loans.
- Warrants: These are financial instruments that give GBDC the right, but not the obligation, to buy equity in the companies it invests in at a pre-agreed price, offering a potential upside beyond interest or dividend income.
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