OWLMEDIUM SIGNALFINANCIAL10-K

Blue Owl significantly increased debt by 28% while experiencing a 28% decline in net income despite strong operating cash flow growth.

The company appears to be in an active growth phase, taking on substantial additional debt ($700M increase) while maintaining strong operational performance with operating cash flow up 26%. The declining net income is largely attributable to higher interest expense from the increased debt load, but the robust cash generation suggests the underlying business remains healthy.

Comparing 2026-02-19 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

Blue Owl shows mixed financial signals with total assets growing 13% and operating cash flow surging 26%, indicating strong operational performance and business expansion. However, profitability declined significantly with net income falling 28% as interest expense jumped 36% due to a substantial 28% increase in total debt to $3.3B. The combination of strong cash generation with declining net income suggests an aggressive growth strategy funded by debt, which bears monitoring but appears manageable given the positive operational trends.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+35.9%
$55.7M$75.7M

Interest expense surged 35.9% — significant debt increase or rising rates materially impacting earnings.

Total Debt
Balance Sheet
+28.4%
$2.6B$3.3B

Debt rose 28.4% — additional borrowing for investment or operations; monitor coverage ratios.

Net Income
P&L
-28.1%
$109.6M$78.8M

Net income declined 28.1% — review whether driven by operations, interest costs, or non-recurring items.

Cash & Equivalents
Balance Sheet
+27.9%
$152.1M$194.5M

Cash grew 27.9% — improving liquidity position supports investment and shareholder returns.

Operating Cash Flow
Cash Flow
+25.7%
$999.6M$1.3B

Operating cash flow grew 25.7% — strong conversion of earnings to cash, healthy business fundamentals.

Total Liabilities
Balance Sheet
+23.7%
$5.2B$6.4B

Liabilities increased 23.7% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+13.4%
$11.0B$12.5B

Asset base grew 13.4% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-21
ADDED
As of February 13, 2026, there were 665,568,093 of the registrant s shares of Class A common stock outstanding, 584,552,295 shares of the registrant s Class C common stock outstanding and 304,449,203 of the registrant s Class D common stock outstanding.
( OTIC ), until January 13, 2025, Blue Owl Capital Corporation III ( OBDE ) and, until March 24, 2025, Blue Owl Technology Finance Corp.
Blue Owl GP Refers collectively to Blue Owl Capital GP Holdings LLC, Blue Owl Capital GP LLC, and certain other directly or indirectly wholly owned subsidiaries of the Registrant that hold the Registrant s interests in Blue Owl Holdings, as well as Blue Owl Carry prior to the Internal Reorganization.
Blue Owl Limited Partnership Agreements Refers to the limited partnership agreements of the Blue Owl Operating Partnerships.
Blue Owl Operating Group Refers collectively to Blue Owl Holdings and its consolidated subsidiaries and any future Blue Owl Operating Partnership.
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REMOVED
As of February 14, 2025, there were 608,346,194 of the registrant s shares of Class A common stock outstanding, 619,072,523 shares of the registrant s Class C common stock outstanding and 310,415,409 of the registrant s Class D common stock outstanding.
( OTIC ) and, until January 13, 2025, Blue Owl Capital Corporation III ( OBDE ).
Blue Owl GP Refers collectively to Blue Owl Capital GP Holdings LLC, Blue Owl Capital GP LLC, and certain other directly or indirectly wholly owned subsidiaries of the Registrant that hold the Registrant s interests in the Blue Owl Operating Partnerships.
Blue Owl Operating Group Refers collectively to the Blue Owl Operating Partnerships and their consolidated subsidiaries.
Blue Owl Operating Group Units Refers collectively to a unit in each of the Blue Owl Operating Partnerships.
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