# Blue Owl Capital Inc. (OWL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/OWL/thesis · /stocks/OWL/memo

## Financial Snapshot

---
title: "Step 04 — Financial Snapshot"
ticker: OWL
company: Blue Owl Capital Inc.
source: coverage-next-full | ticker: OWL | step: "04" | created: 2026-05-29
---

### Step 04 — Financial Snapshot: Blue Owl Capital Inc. (OWL)

#### 1. Summary Financial Tables (FY2021-2024 + TTM)

##### Annual Revenue (GAAP)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | TTM (Mar '26) |
|--------|--------|--------|--------|--------|---------------|
| Total Revenue ($M) | 823.9 | 1,370 | 1,732 | 2,295 | 2,941 |
| YoY Growth | — | +66.3% | +26.4% | +32.6% | — |
| Management Fees ($M) | ~680 | ~1,100 | ~1,400 | ~2,050 | ~2,400 |
| % of Total Revenue | 82.5% | 80.3% | 80.8% | 89.3% | 81.6% |

**Note:** FY2021 partial year effect — Blue Owl went public via SPAC merger in May 2021; figures reflect ~7 months of public company operations plus predecessor.

##### GAAP Net Income (Loss)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|--------|
| Net Income ($M) | (826.6) | (9.3) | 54.3 | 109.6 | 78.8 |
| EPS (Diluted) | ($1.34) | ($0.02) | $0.10 | $0.20 | $0.10 |

**Key caveat:** GAAP net income is **not** the right earnings measure for OWL. GAAP earnings are depressed by:
1. ~$280-300M/year in non-cash amortization of acquisition intangibles (Owl Rock, Dyal, Oak Street)
2. ~$150-200M/year in stock-based compensation
3. Non-cash fair value adjustments on earnout liabilities

The relevant earnings metrics are FRE and DE — see below.

---

#### 2. Fee-Related Earnings (FRE) — Primary Earnings Metric

| Period | FRE ($M) | YoY Growth | FRE/Share | FRE Margin |
|--------|----------|-----------|-----------|-----------|
| FY2021 | ~$350 est. | — | — | ~45% |
| FY2022 | ~$620 est. | +77% | — | ~50% |
| FY2023 | ~$930 est. | +50% | — | ~54% |
| FY2024 | ~$1,320 | +42% | ~$0.85 | ~57% |
| Q1 2025 | 345.4 (quarterly) | — | ~$0.91 ann. | ~57% |
| Q1 2026 | 393.6 (quarterly) | +14% YoY | ~$1.01 ann. | 58.4% |
| Annualized Run-Rate | **~$1,574** | — | **~$1.01/share** | **58.4%** |

FRE growth has been exceptional: from ~$350M in 2021 to ~$1,574M annualized run-rate by Q1 2026 — a 4.5x expansion in ~5 years. On a per-share basis (diluted), growth has been more moderate due to significant share/unit dilution from M&A.

---

#### 3. Distributable Earnings (DE)

| Period | DE ($M) | YoY Growth | DE/Share |
|--------|---------|-----------|---------|
| FY2024 | ~$1,020 est. | — | ~$0.65 |
| Q1 2025 | 262.5 (quarterly) | — | ~$0.69 ann. |
| Q1 2026 | 292.5 (quarterly) | +11.4% YoY | ~$0.75 ann. |
| Annualized Run-Rate | **~$1,170** | — | **~$0.75/share** |

DE is lower than FRE primarily due to:
- Interest expense on $3.9B corporate debt: ~$185-200M
- Entity-level taxes: ~$80-90M
- Net investment income from GP balance sheet investments partially offsets

Dividend of $0.23/quarter ($0.92/year) = **1.23x coverage on FRE basis, 0.81x on DE basis.** Management is running a DE payout ratio >100% currently, covered by the difference between FRE and DE (i.e., non-cash amortization charges in GAAP that don't consume cash).

---

#### 4. AUM Growth — The Core Value Driver

| Period | Total AUM ($B) | FEAUM ($B) | AUM Not Paying Fees ($B) |
|--------|---------------|-----------|--------------------------|
| IPO (May 2021) | ~$52.5 | ~$44.0 | ~$8.5 |
| FY2021 | ~$57.4 | ~$48.0 | ~$9.4 |
| FY2022 | ~$94.0 | ~$79.4 | ~$14.6 |
| FY2023 | ~$165.8 | ~$141.1 | ~$24.7 |
| FY2024 | ~$235.2 | ~$196.2 | ~$39.0 |
| Q1 2026 | ~$314.9 | ~$265.0 | ~$29.9 |

**AUM CAGR (IPO to Q1 2026):** ~43% over ~5 years — exceptional for an asset manager of any size.

##### AUM by Strategy (Q1 2026)
| Strategy | AUM ($B) | % of Total |
|----------|---------|-----------|
| Credit | ~180 | ~57% |
| GP Strategic Capital | ~80 | ~25% |
| Real Assets | ~55 | ~18% |
| **Total** | **~315** | **100%** |

---

#### 5. Balance Sheet Summary

| Metric | FY2023 | FY2024 | FY2025 | Q1 2026 |
|--------|--------|--------|--------|---------|
| Total Assets ($M) | 8,818 | 10,993 | 12,468 | 12,415 |
| Cash ($M) | 104.2 | 152.1 | 194.5 | 190.5 |
| Total Debt ($M) | 2,001 | 2,979 | 3,863 | 4,357 |
| Total Equity ($M) | 5,278 | 5,806 | 6,054 | 5,788 |
| Net Debt ($M) | 1,897 | 2,827 | 3,668 | 4,166 |
| Goodwill ($M) | 4,224 | 4,699 | 5,624 | 5,624 |
| Intangible Assets ($M) | 2,110 | 2,903 | 2,889 | 2,804 |

**Balance sheet quality note:** Total goodwill + intangibles = ~$8.4B = 68% of total assets. This is typical for an acquisition-driven asset manager but means tangible book value is deeply negative. The balance sheet is best evaluated on a cash flow basis — FCF > $1.2B/year comfortably services debt and dividends.

---

#### 6. Cash Flow Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|--------|--------|--------|--------|--------|-----|
| OCF ($M) | 728.5 | 949.2 | 999.6 | 1,256 | 1,341 |
| CapEx ($M) | (65.5) | (67.9) | (64.2) | (57.8) | (37.6) |
| FCF ($M) | 662.9 | 881.2 | 935.4 | 1,198 | 1,304 |
| Dividends ($M) | (182.6) | (247.9) | (368.3) | (546.7) | (300.0) |
| Buybacks ($M) | (81.1) | (18.6) | (38.9) | (133.3) | (112.3) |
| FCF after Div. ($M) | 480.3 | 633.3 | 567.1 | 651.3 | — |

**FCF conversion is exceptional:** CapEx is ~$55-65M/year on ~$1.3B OCF = ~4.5% capital intensity. The business is virtually capex-free, which is a hallmark of an asset management franchise.

---

#### 7. Profitability Trend Analysis

##### Revenue Composition Shift (FY2021 → FY2024)
The revenue mix has improved significantly:
- Management fees as % of revenue: ~82% → ~89% (higher quality, more predictable)
- Performance-related revenue: ~18% → ~11% (lower reliance on lumpy carry)

##### Margin Trajectory
| Period | FRE Margin | EBITDA Margin (GAAP) | Net Margin (GAAP) |
|--------|-----------|---------------------|-------------------|
| FY2021 | ~45% | ~15% | (100%) — loss year |
| FY2022 | ~50% | ~20% | (0.7%) |
| FY2023 | ~54% | ~22% | 3.1% |
| FY2024 | ~57% | ~24% | 4.8% |
| Q1 2026 | 58.4% | ~25% est. | ~5% est. |

GAAP margins are structurally depressed by intangible amortization (~280-300M/year). Strip out amortization and the implied EBITDA margin would be ~36-38% on a GAAP basis — more comparable to peers.

---

#### 8. GAAP vs. Non-GAAP Reconciliation (Illustrative, Q1 2026)

| Item | Q1 2026 ($M) |
|------|-------------|
| GAAP Net Income | ~$27 |
| Add: Amortization of intangibles | +72 |
| Add: Stock-based compensation | +38 |
| Add: Non-cash earnout fair value changes | +15 |
| Add: Transaction/acquisition costs | +8 |
| Add: Public company one-time items | +4 |
| Add: Other non-cash adjustments | +12 |
| **= Distributable Earnings (DE)** | **~$176 (est.)** |
| Plus: FRE from incentive fee uplift | — |
| **= Fee-Related Earnings (FRE)** | **$393.6** |

Note: The gap between DE ($176M est.) and FRE ($393.6M) reflects interest expense (~$48M quarterly), taxes (~$22M quarterly), and the structure of FRE excluding investment income/expense.

---

#### 9. Key Financial Metrics Summary (TTM / Run-Rate)

| KPI | Value | Trend |
|-----|-------|-------|
| Total AUM | $314.9B | ↑ |
| FEAUM | ~$265B | ↑ |
| AUM Not Paying Fees | $29.9B | ↓ (converting) |
| Annualized FRE | ~$1,574M | ↑ (+14% YoY) |
| FRE Margin | 58.4% | ↑ (expanding) |
| Annualized DE | ~$1,170M | ↑ (+11% YoY) |
| FRE/Share (ann.) | ~$1.01 | ↑ |
| Dividend/Share (ann.) | $0.92 | Stable |
| Dividend Coverage (FRE) | 1.10x | Tight |
| FCF | ~$1,304M TTM | ↑ |
| Net Debt | ~$4,166M | ↑ (M&A-driven) |
| Net Debt / FRE | ~2.6x | Manageable |

---

#### 10. Earnings Quality Assessment

**GAAP earnings: LOW QUALITY** — Distorted by non-cash acquisition amortization, earnout adjustments, SBC. Not reflective of operating performance.

**FRE: HIGH QUALITY** — Contractual management fees, minimal performance variability, expanding margins. The most stable earnings measure in the alternative manager peer group.

**DE: MEDIUM QUALITY** — Adds realized carry (lumpy) and net investment income from balance sheet investments; subtracts interest expense. More volatile than FRE but still higher quality than GAAP.

**FCF: VERY HIGH QUALITY** — Minimal capex, clean conversion of operating income to cash. FCF > $1.2B/year confirms dividend affordability on a cash basis despite DE gap.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/OWL/fundamental

## Navigation

- Overview: /stocks/OWL
- Financials (this page): /stocks/OWL/financials
- Thesis: /stocks/OWL/thesis
- Investment Memo: /stocks/OWL/memo
- Coverage universe: /stocks