GBDC Stock: Dividend Cut to $0.33, NII, NAV and Non-Accruals 2026

What GBDC is, and the date that matters

GBDC is a business development company (BDC) that lends mostly to private-equity-backed middle-market companies. The 10-Q describes its core product as “one stop” loans, a single loan that combines first lien and second lien features, and these are 87.4% of its $8.2 billion portfolio of 424 companies at June 30, 2026. It is externally managed by GC Advisors LLC, part of Golub Capital, which also manages unlisted BDCs including Golub Capital Private Credit Fund (GCRED) that the same 10-Q names as sharing its mandate. Our explainer on BDCs covers the structure.

The fiscal year ends September 30. The company said on October 6, 2026 that it will release results for the quarter and year ended September 30, 2026 on Tuesday, November 17, 2026 after the market close, with a call at 10:00 a.m. Eastern on November 18. Last year the 10-K and the earnings release were both filed on November 18, 2025 (accessions 0001476765-25-000096 and 0001476765-25-000094). As of October 16, 2026 the latest periodic filing is the Form 10-Q for June 30, 2026, filed August 3, 2026, and every “current” number on this page is as of that date unless it says otherwise. We do not have a share price after August 3, 2026 from a primary source; check a live quote.

The dividend: from $0.39 to $0.33, and what covers it

The earnings release of February 4, 2026 says the board declared $0.33 for the quarter and explains the change: “The reduction in quarterly distribution from $0.39 to $0.33 per share reflects our evolving outlook for rates, asset spreads, and financing costs in the market environment.” It also states four goals for setting the dividend: a stable NAV over time, minimizing excise taxes, adjusting infrequently, and paying as high a yield on NAV as is sustainable. The board kept a variable supplemental policy that “generally seeks to distribute to investors through a quarterly supplemental distribution 50% of the earnings of GBDC above the $0.33 quarterly distribution, subject to certain exceptions for maintenance of a stable NAV over time.”

“Adjusted” NII is the company's non-GAAP measure that adds back $0.01 a share of amortization of the purchase premium paid in the GCIC and GBDC 3 acquisitions (see the merger section below); it is a non-cash item in income and the company defines it as excluding that amortization. In dollars the picture is the same: NII of $85.2 million in the June quarter against $85.9 million of distributions declared on May 1 (99.2%, our arithmetic), and $95.8 million against $102.8 million in the December quarter (93.2%). The distribution of $0.33 declared on July 31 is estimated by the company at $85.7 million on 259,651,589 shares.

The earlier $0.39 was above NII in each of the three quarters before the cut. Over the fiscal years in the 10-K, NII per share was below distributions declared in three of five years (our arithmetic from the financial highlights).

Distributions declared are our sum of the 10-K's highlights lines (net investment income, capital gains and return of capital); FY2025 includes a $0.05 special and a $0.04 supplemental paid on December 13, 2024. The yield arithmetic: $0.33 a quarter is $1.32 a year, 9.3% of the June 30 NAV and 10.2% of the June 30 close of $12.88 (our arithmetic). The nine months to June 30, 2026 show NII of $1.02 against $1.05 declared, 97% (our arithmetic).

The next declaration is not scheduled in a filing. The board declared the December distribution on November 14 in both 2024 and 2025; that is a pattern, not a date the company has given.

NAV per share and the price: four quarters down, a 10% discount

NAV per share fell from $14.97 at September 30, 2025 to $14.25 at June 30, 2026 (-4.8%, our arithmetic). The 10-Q's financial highlights give the nine-month bridge per share:

The quarter of March 31, 2026 took most of the unrealized loss: net realized and unrealized loss was $0.51 a share, and the release says that credit spreads “widened meaningfully” and that 69% of that loss, $0.35 a share, came from fair value adjustments on loans in the two best internal rating categories (IPR 4 and 5). In the June quarter the loss was $0.11 a share and the release attributes it to underperformance of companies “on or taken to non-accrual during the quarter” and to realized losses on the restructuring of two companies, partly offset by a reversal of some of the spread-widening markdown. The fair value of the debt portfolio as a percentage of principal was 98.4% at September 30, 2025, 98.2% at December 31, 96.8% at March 31 and 97.0% at June 30, 2026.

The low close of $11.97 in the March quarter was 83% of the March 31 NAV (our arithmetic). The company has been buying shares under a $150 million program that can only buy below NAV (re-approved by the board on July 31, 2026): 2,623,298 shares at an average $13.69 in the December quarter, 2,236,904 at $12.43 in the March quarter, 1,113,992 at $12.90 in the June quarter, and about 0.4 million shares at $12.86 between July 1 and August 3, 2026. The June presentation says the company “continued to prioritize accretive share repurchases over new investment commitments”.

Insiders are also buyers, with a different structure. The Golub Capital Employee Grant Program Rabbi Trust bought 2,425,911 shares in the June quarter (about $31.4 million) and 3,925,911 shares in the first half of 2026 (about $50.1 million), and an 8-K of August 11, 2026 reports that on August 7 it acquired another 1,676,387 shares from GEMS Fund 4, L.P., a partnership controlled by entities affiliated with Lawrence E. Golub and David B. Golub. The shares are for employee incentive compensation.

Non-accruals: 9 investments to 20, and which ones

A loan goes on non-accrual when the company stops recognizing interest on it. The 10-Q gives the totals: 15 portfolio companies with loans and five with preferred equity on non-accrual at June 30, 2026, which are 2.9% of investments at cost and 1.9% at fair value.

In the June quarter, per the presentation, four investments were added to non-accrual, three left it (two restructured investments returned to accrual and one was disposed of), and the count rose to twenty. By asset class the 10-Q's table puts $115.8 million of one-stop loans at cost on non-accrual ($67.1 million at fair value), $8.1 million of senior secured, $3.7 million of second lien and $118.6 million of equity (preferred and other, $85.3 million at fair value). At September 30, 2025 the equity line was $0.7 million.

The list below is our sum of every line flagged with footnote (7) in the June 30, 2026 schedule of investments; the totals match the 10-Q's $246.3 million and $158.6 million. “Preferred” means preferred equity that had been accruing a non-cash dividend.

Three readings. First, concentration: the top five by cost add to $180.8 million, 73% of the total (our arithmetic), and the five preferred equity positions are 48% of non-accrual cost and 54% of fair value. Second, what changed: comparing the schedules in the 10-K and the 10-Qs, GS Acquisitionco and Kaseya are first flagged at June 30, 2026, Titan Fitness and Symplr at March 31, 2026, and Elite Dental Partners has been flagged since at least September 30, 2025. Third, marks differ widely: Ave Holdings III and Abita are carried at 15% and 19% of cost, while GS Acquisitionco, the largest, is carried at 85%. The mark on the largest line is a number to check when the 10-K arrives.

The internal ratings the adviser uses (1 to 5, defined in the release and “not generally accepted in our industry”) moved the same way: loans rated 3 or 2, which the release describes as performing below expectations, were 10.6% of fair value at September 30, 2025 and 13.4% at June 30, 2026 (our arithmetic: 10.6% + 2.8%); rated 4 or 5 were 89.4% and 86.6%.

PIK: more of the income is not cash

PIK (payment in kind) means interest added to the loan balance instead of paid in cash. The 10-Q says PIK interest income was 8.6% of total investment income (excluding premium amortization) in the June quarter and 8.1% for the nine months, against 6.1% and 5.8% a year earlier. The PIK interest lines on the income statement add to $16.4 million for the June quarter and $48.0 million for the nine months (our sum).

A PIK feature is not the same as a loan that is paying in kind today: it means the loan permits a portion of interest to be paid in kind. The table shows that the permitted amount grew while the portfolio shrank. Our census of 36 BDCs lists GBDC at 11.4% PIK; the 10-Q's own measure for the same nine months is 8.1% of investment income, and the PIK interest lines on its income statement add to $48.0 million, not the $66.6 million behind the census figure, which appears to count dividend income as well as PIK interest.

Fees: what the manager is paid, and the waivers that ended

The 10-Q describes the structure. The base management fee is 1.0% a year of the average adjusted gross assets of the last two quarters, excluding cash, and the adviser “voluntarily excludes any assets funded with secured borrowing proceeds”. The income incentive fee is 15.0% of pre-incentive fee NII above a fixed hurdle of 2.0% a quarter (8.0% annualized, the presentation says) with a catch-up, and it is capped so that cumulative incentive fees since April 13, 2010 cannot exceed 15.0% of cumulative pre-incentive fee net income per share. There is no capital gain incentive fee accrued or payable at June 30, 2026. The presentation calls the structure “leading”; that is the company's word.

The base fee is not comparable one to one: GBDC's applies to assets, and total assets were about 2.25 times net assets (our arithmetic), while GCRED's applies to net assets, so the percentages above are our attempt to put both on the same denominator. In fiscal 2024 the adviser waived income incentive fees: $5.2 million under a waiver letter tied to the merger, 100% of the fee for the quarter ended June 30, 2024 and $7.8 million for the quarter ended September 30, 2024, $27.3 million in total (10-K). There was no waiver in fiscal 2025, and the nine-month statements for 2026 show none.

The GBDC 3 merger is done: what it left in the numbers

The premise that the merger with Golub Capital BDC 3 (GBDC 3) is pending is out of date. The 10-K and the 10-Q state that the company completed the acquisition on June 3, 2024. Each GBDC 3 share became 0.9138 shares of GBDC and the company issued 92,115,308 shares, valued in the purchase accounting at the $16.57 closing price. The purchase price was $1,530.2 million for net assets of $1,478.6 million, a premium of $51.7 million, which GAAP booked as unrealized depreciation on day one and which amortizes back through interest income. That is why the company reports adjusted NII: the amortization was $2.3 million in the June 2026 quarter ($0.01 a share), and the 2019 GCIC acquisition left a similar premium, and the adjusted figures remove both. NAV per share rose $0.51 in fiscal 2024 from the issuance.

Leverage and debt: a ladder with $949 million due inside a year

GAAP debt to equity was 1.24x at June 30, 2026 (1.23x net of cash), asset coverage 180.4% against a legal minimum of 150%, and the company says it targets 0.85x to 1.25x. Total debt was $4,561.8 million, down from $5,154.0 million a year earlier as the portfolio shrank 8.5% over the year (our arithmetic: $8,961.5 million to $8,196.4 million).

The presentation puts total available liquidity at $2.0 billion, the weighted average cost of debt at 5.3% and about 79% of debt as floating or swapped to floating. The 10-Q's maturity table puts $949.5 million due in less than one year at June 30, 2026, the 2026 and 2027 notes. The 2026 Notes matured after quarter-end and no filing we read states how they were repaid; the $500 million of 2031 Notes issued May 27, 2026 and $1,725.9 million of undrawn JPMorgan availability are the stated sources of liquidity. An 8-K filed July 9, 2026 records the revolver amendment: the revolving period now runs to July 2, 2030, maturity to July 2, 2031, and the 0.10% SOFR adjustment is removed. Ratings shown on the presentation slide (not named there by agency) are BBB with a stable outlook, Baa2 with a negative outlook and BBB- with a stable outlook.

The portfolio shrank, and software is a quarter of it

New investment commitments were $12.6 million in the June 2026 quarter against $556.8 million in the June 2025 quarter, and exits and sales were $189.5 million. Investments at fair value fell for four straight quarters, from $8,961.5 million to $8,196.4 million. The portfolio is 87.4% one stop, 4.8% senior secured, 0.7% junior debt and 7.1% equity at fair value. Software is the largest industry at 26.0% of fair value ($2,135.1 million), down from 27.2% at September 30, 2025; no other industry is above 8%. The ten largest companies are 13% of the portfolio, the median EBITDA of portfolio companies is $75.4 million, and new loans in the quarter were made at 8.9% against 9.3% on loans repaid.

GBDC and GCRED: the same adviser, a listed and a non-traded wrapper

The June 30, 2026 10-Q says GC Advisors manages GCRED and five other unlisted BDCs with similar mandates, and that GBDC's officers and directors serve in similar capacities for them. GCRED is the large one: net assets of $4,474.9 million against GBDC's $3,704.9 million. Our page on GCRED's redemption offers covers what holders of that fund can sell and when; this page puts the two funds' June 30, 2026 10-Qs side by side.

What this does and does not show. A listed fund marks the same kind of loans in public every day through its share price, and GBDC's 10% discount to NAV is the market saying something about its marks or its fees; the 10-Qs do not say which. GCRED's NAV is set by the adviser's valuation process and is the price at which it repurchases shares, so a holder cannot sell at a discount except by waiting out a proration (see our page). The non-accrual gap, 2.9% against 0.1%, is large for two funds with one adviser; the 10-Qs differ in age of loans, mix, and in GBDC's equity and preferred holdings, which are 7.1% of its portfolio.

What changed in the filings and what comes next

The latest filing is the October 6, 2026 8-K announcing the results date. The next ones, if the pattern holds, are the earnings release and presentation on November 17, 2026 and the 10-K around the same day. The numbers that settle the open questions on this page: NII against the $0.33, whether the non-accrual count goes above twenty, how GS Acquisitionco and Titan Fitness are marked, how the $600 million of 2026 Notes was repaid, the NAV against $14.25, and whether the board declares a supplemental. The 10-K will also give the tax character of the fiscal 2026 distributions: for fiscal 2025, $361.8 million was ordinary income and $77.3 million, 17.6% of the total (our arithmetic), was return of capital. See our notes on return of capital and the 1099-DIV timeline.

What a holder or reader can do with this

This is a checklist built from the filings, not a recommendation.

• Compare adjusted NII with the distribution, in dollars. June: $87.5 million of adjusted NII against $85.9 million declared. A further fall in NII is what would reopen the dividend question, since the board's own first goal is a stable NAV.
• Read the 10-K's non-accrual schedule before the headline percentage. The top five names are 73% of the cost; the three largest marks are on preferred equity and one loan.
• Compare price with NAV on the day you look. The last NAV in a filing is $14.25 at June 30; the next is due November 17. The 10% discount in the table is a June 30 snapshot.
• Watch repurchases. The program buys only below NAV and has retired 5.97 million shares in nine months (our sum), which adds to NAV per share only while the price stays under it.
• If you also hold GCRED or another non-traded BDC, put its non-accrual rate and PIK share next to these, as in the table above and in our census, and see how GBDC sits among the listed BDCs and non-traded BDCs. Other listed examples: Ares Capital, Blue Owl Capital Corporation and Main Street.
• Tax. The split between ordinary income and return of capital is on your Form 1099-DIV; we do not give tax advice.

This is analysis of public documents, not investment, legal or tax advice. We do not give price targets or say whether to buy, sell or hold.

FAQ

All figures are from Golub Capital BDC, Inc.'s SEC filings read on EDGAR on October 16, 2026 (CIK 1476765): the Form 10-K for the year ended September 30, 2025 (accession 0001476765-25-000096); the Forms 10-Q for December 31, 2025, March 31, 2026 and June 30, 2026 (0001476765-26-000012, -26-000033, -26-000048); the earnings releases and presentations (Exhibits 99.1 to the 8-Ks) of November 18, 2025, February 4, May 4 and August 3, 2026 (0001476765-25-000094 and -25-000095, -26-000010 and -26-000011, -26-000029 and -26-000032, -26-000045 and -26-000047); the 8-Ks of October 6, 2026 (-26-000072), August 11, 2026 (-26-000070) and July 9, 2026 (0001104659-26-082256); and, for Golub Capital Private Credit Fund (CIK 1930087), its Form 10-Q for June 30, 2026 (0001930087-26-000099). Ratios, sums across quarters and the company-level non-accrual totals (our sum of the lines flagged in the schedule of investments) are our arithmetic; adjusted NII is the company's non-GAAP measure. This is analysis of public documents, not investment, legal or tax advice.