Sixth Street Specialty Lending Reports Strong 2025 Results

Sixth Street Specialty Lending ( (TSLX) ) has provided an announcement.

On February 12, 2026, Sixth Street Specialty Lending reported full-year 2025 net investment income of $2.23 per share and net income of $1.81 per share, with fourth-quarter figures of $0.53 and $0.32 per share, respectively, supported by higher rates and strong fee income. The company’s 2025 return on equity reached 13.1% on a net investment income basis and 10.6% on a net income basis, while net asset value per share edged down to $16.98 at year-end, yielding a 10.9% economic return when including dividends.

Adjusted for capital gains incentive fee unwind, 2025 net investment income was $2.18 per share and net income was $1.76 per share, and the base dividend remained well covered, with fourth-quarter adjusted NII of $0.52 per share exceeding the $0.46 base payout. The board declared a first-quarter 2026 base dividend of $0.46 per share and a fourth-quarter 2025 supplemental dividend of $0.01 per share, signaling continued cash returns to shareholders despite modest NAV pressure.

Over 2025, the company committed $1.08 billion to new investments and funded $894 million, while exits and repayments totaled $1.20 billion, resulting in net repayments of $302.1 million and a slight reduction in portfolio company count. The portfolio remained 89.2% first-lien debt with 96.3% of debt investments floating rate and low non-accruals at 0.6% of fair value, underscoring a conservative credit profile amid active turnover.

In the fourth quarter of 2025, new commitments were $242.4 million and fundings $196.7 million, against $234.9 million of exits and repayments, and the weighted average total yield on debt and income-producing securities hovered around 11%. During the quarter, affiliates of Sixth Street, including TSLX, also formed Structured Credit Partners JV with Sixth Street Lending Partners and Carlyle-managed BDCs to invest in broadly syndicated first-lien senior secured loans via CLO debt, with TSLX committing $200 million, though the vehicle had not commenced operations by year-end 2025.

The most recent analyst rating on (TSLX) stock is a Buy with a $26.00 price target. To see the full list of analyst forecasts on Sixth Street Specialty Lending stock, see the TSLX Stock Forecast page.

Spark’s Take on TSLX Stock

According to Spark, TipRanks’ AI Analyst, TSLX is a Neutral.

The score is primarily constrained by financial performance volatility—especially the decline and inconsistency in cash flow—and meaningful leverage. Offsetting factors include an attractive income/valuation profile (high dividend yield and modest P/E) and a constructive earnings call highlighting strong credit quality, while technical signals are neutral-to-mildly positive.

To see Spark’s full report on TSLX stock, click here.

More about Sixth Street Specialty Lending

Sixth Street Specialty Lending, Inc. is a New York-based, exchange-listed business development company focused on providing first-lien senior secured loans and other debt financing to middle-market borrowers. As of December 31, 2025, its investment portfolio totaled $3.35 billion at fair value, heavily concentrated in floating-rate first-lien debt, and generated double-digit yields in an elevated interest rate environment.

Average Trading Volume: 494,169

Technical Sentiment Signal: Hold

Current Market Cap: $1.92B

For detailed information about TSLX stock, go to TipRanks’ Stock Analysis page.