Blue Owl Capital Inc. (OWL) has seen its stock valuation drop significantly, trading at a forward earnings multiple of 9.24x compared to the industry average of 12.58x. Over the past year, OWL shares have fluctuated between 30.26x and 9.24x, with a five-year median of 19.24x. Concerns loom around private credit sentiment and redemption dynamics, as the company faces challenges regarding fundraising and capital deployment.
For the fiscal year 2025, Blue Owl reported GAAP revenue of $2.87 billion, a 25% increase year-over-year, though GAAP diluted earnings per share fell to $0.10 from $0.20 in the previous year. Fee-related earnings reached $1.50 billion, showcasing a 19% growth with a 58.3% margin, primarily driven by rising management fees, which totaled $2.52 billion. The company also declared a quarterly dividend of 22.5 cents per Class A share, paid on March 2, 2026.
Looking ahead to 2026, management anticipates fundraising will remain consistent with 2025 levels, driven by initiatives like Digital Infrastructure Fund IV and the scaling of evergreen wealth products. However, risks include liquidity concerns in private credit markets and the impact of increased redemption requests, which could affect investor sentiment and stock performance.
