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Blackstone Secured Lending Fund (BXSL)
NYSE:BXSL
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Blackstone Secured Lending Fund
(NYSE:BXSL)
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Rating:60Neutral
Price Target:
$25.00
▲(4.69% Upside)
Action:ReiteratedDate:02/25/26
The score is held back most by uneven/negative cash flow and inconsistencies in the latest-year financial statement data, alongside bearish technicals. Offsetting factors include an attractive valuation (low P/E and high dividend yield) and a largely constructive earnings call featuring dividend coverage, active deployment, liquidity, and buyback flexibility despite isolated credit/NAV pressures.
Positive Factors
Dividend Coverage
Consistent net investment income covering distributions indicates the core business (interest and fee income on senior secured loans) generates recurring cash sufficient for the dividend. This reduces reliance on realizations or capital markets and supports distribution durability over the next several quarters.
Active Origination & Diversification
High and sustained origination activity with a broadly diversified, mid‑market loan portfolio lowers single‑name concentration risk and preserves earnings power. Steady deployment with average LTV ~41% and wide spreads supports stable NII and long‑term credit resilience.
Liquidity & Funding Profile
Ample liquidity and a lower all‑in funding cost improve flexibility to fund new loans, manage repayments, and weather reimbursement cycles. Investment‑grade credit ratings and diversified liabilities reduce refinancing risk and sustain the leveraged lending business model over time.
Negative Factors
Cash Flow Volatility
Repeated swings to negative operating and free cash flow undermine internal funding for dividends, loan originations, or buybacks. Reliance on external financing or equity when cash generation is volatile raises structural funding and flexibility risks across a multi‑quarter horizon.
Concentrated Unrealized Losses
Significant markdowns concentrated in a few names create outsized NAV volatility and potential realized losses if trends persist. Portfolio stress clustered in specific credits raises idiosyncratic loss risk and can materially affect distributable earnings if additional downgrades occur.
2025 Reporting Inconsistencies
Material inconsistencies in the latest‑period financials impede reliable assessment of leverage, cash flow, and earnings trends. Unclear or inconsistent reporting increases model risk and investor uncertainty about the true fundamental trajectory until reconciled.
Blackstone Secured Lending Fund (BXSL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.55B
Dividend Yield11.44%
Average Volume (3M)2.40M
Price to Earnings (P/E)9.7
Beta (1Y)0.53
Revenue Growth10.95%
EPS Growth-25.98%
CountryUS
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.80
Shares Outstanding232,279,820
10 Day Avg. Volume2,677,348
30 Day Avg. Volume2,401,319
Financial Highlights & Ratios
PEG Ratio-0.37
Price to Book (P/B)0.97
Price to Sales (P/S)4.76
P/FCF Ratio-13.16
Enterprise Value/Market Cap2.40
Enterprise Value/Revenue13.89
Enterprise Value/Gross Profit13.37
Enterprise Value/Ebitda19.59
Forecast
1Y Price Target
$27.20Price Target Upside13.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)2.92
Revenue Forecast (FY)$1.40B
Blackstone Secured Lending Fund Business Overview & Revenue Model
Company DescriptionBlackstone Secured Lending Fund is business development company and a Delaware statutory trust formed on March 26, 2018, and structured as an externally managed, non-diversified closed-end investment Fund. On October 26, 2018, the fund elected to be regulated as a business development company (BDC) under the Investment Company Act of 1940, as amended (the 1940 Act). In addition, the Fund elected to be treated for U.S. federal income tax purposes, as a regulated investment company (RIC), as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The fund also intends to continue to comply with the requirements prescribed by the Code in order to maintain tax treatment as a RIC. The fund's investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The Fund seeks to achieve its investment objective primarily through originated loans, equity and other securities, including syndicated loans, of private U.S. companies, specifically small and middle market companies, typically in the form of first lien senior secured and unitranche loans (including first out/last out loans), and to a lesser extent, second lien, third lien, unsecured and subordinated loans and other debt and equity securities.
How the Company Makes MoneyBlackstone Secured Lending Fund makes money primarily through interest income and fees associated with its lending activities. The company generates revenue by providing secured loans to middle-market companies, which pay interest on the borrowed amounts. Additionally, BXSL may earn income through origination fees, prepayment penalties, and other loan-related charges. The company's financial performance is largely influenced by the credit quality of its portfolio, interest rate trends, and macroeconomic conditions. Partnerships and networks established by Blackstone Credit enhance BXSL's ability to source attractive investment opportunities, contributing to its revenue generation.
Blackstone Secured Lending Fund Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operating and portfolio fundamentals—NII covering the dividend, attractive yields, active deployment with attractive spreads, healthy EBITDA growth across the majority of portfolio companies, ample liquidity, tightened funding costs, and top-tier credit ratings. The primary negatives were concentrated unrealized markdowns (notably Medallia), a modest NAV decline, a small uptick in non-accruals, and public market valuation pressure on software that has increased headline risk. Management highlighted defensive portfolio construction, limited credit losses historically, and multiple capital allocation options (including a $250 million share repurchase program). Overall, the positive operational and credit metrics materially outweigh the contained pockets of underperformance and market-driven valuation noise.Q4-2025 Updates
Positive Updates
Strong Quarter of Net Investment Income and Dividend Coverage
Net investment income (NII) of $186,000,000, or $0.80 per share, representing an 11.8% annualized return on equity; the $0.77 per share distribution was 104% covered by NII and implies an 11.4% annualized distribution yield on NAV.
Solid Annual and Since-Inception Returns
BXSL delivered a 9.6% net return for the year, outperforming the leveraged loan market by 360 basis points, and has an 11.2% annualized return since inception (seven years).
Active Deployment and Portfolio Growth
Portfolio increased to 316 companies across 40 industries in Q4; funded 13 new credits (average LTV at underwrite 41%; average spread near 500 bps) and completed 15 add-ons. Funded $1.0 billion for the second consecutive quarter and committed over $900 million.
Healthy Portfolio Fundamentals
Top 90% of portfolio companies grew EBITDA ~9% over the past 12 months, have interest coverage over 2x, and an average mark of 99; software sub-verticals in BXSL have seen ~40% EBITDA growth since underwrite and generate >2x interest coverage.
Balance Sheet Strength and Liquidity
Total portfolio investments at fair value of $14.2 billion, outstanding debt $8.1 billion, total net assets $6.2 billion; total liquidity of $2.5 billion (cash + undrawn facilities) and clear line-of-sight to $550 million of near-term repayments.
Low and Stable Credit Metrics
Non-accruals remained low at 0.6% at cost (0.5% at fair market value); BXSL’s historical realized loss rate for Blackstone’s North American direct lending is <10 basis points annualized across the platform.
Favorable Funding Costs and Credit Ratings
All-in cost of debt decreased to 4.93% from 5.24% in 2024; diversified liability profile including revolver priced at SOFR+153; ratings among top-three traded BDC peers with Moody’s Baa2 (stable), S&P BBB- (positive), Fitch BBB (stable).
Capital Allocation Optionality
Board approved discretionary share repurchase program up to $250 million to repurchase shares below NAV; management also has the ability to reinvest spillover income, delever, or allocate to new loans as repayment-driven capacity materializes.
Negative Updates
Modest NAV Decline and Concentrated Unrealized Losses
NAV per share declined to $26.92 from $27.15 (down $0.23, ~0.85%); net unrealized losses of ~$0.27 per share were concentrated (two positions ~50% of net unrealized movement; top five ~60%).
Material Markdown of Medallia
Medallia marked at 77.75, implying over a ~70% reduction to its setup enterprise value due to execution/go-to-market challenges; cited as a notable underperformer in the portfolio.
Bottom-Decile Underperformance and Marks
Bottom 10% of performers averaged a mark of 82 and were set up at an average 42% LTV; these names have modest negative EBITDA growth since underwrite and reflect operational (not secular) issues in many cases.
Slight Increase in Non-Accruals
Non-accruals rose to 0.6% at cost (0.5% FMV) from 0.3% cost (0.2% FMV) a year ago, driven by two smaller positions added during the quarter.
Market Narrative and Valuation Pressure on Software
External headlines and public market re-rating pressure: software valuations compressed from ~18x NTM EBITDA to ~14x, creating near-term volatility and increased scrutiny of software exposure despite BXSL’s differentiated software mix.
BXSL Trading Below Book
Management noted the fund is trading below NAV (discount) despite strong fundamentals, creating capital allocation trade-offs (buybacks vs. reinvestment) and signaling investor sentiment disconnect.
Company Guidance
Management guided that BXSL expects continued active deployment and portfolio turnover into 2026, pointing to Q4 activity of $1.0B funded (second consecutive quarter), >$900M committed, $400M net funded after $629M of repayments/sales, and an annualized repayment rate accelerating to 15% (from 13% last quarter) with >$550M of potential repayments in the first six months; they reiterated a long‑term target gross leverage of 1.25x (ended Q4 at 1.3x gross / 1.25x net, 1.27x average) and said they will operate near the high end of that range while weighing capital allocation among new loans, deleveraging, or share repurchases (Board‑approved repurchase program up to $250M). Financial and balance‑sheet metrics cited as context for that guidance included Q4 net investment income of $186M ($0.80/share) covering the $0.77 distribution (104% coverage; 11.4% distribution yield on NAV), NAV $26.92 (down from $27.15), $14.2B portfolio at fair value, $8.1B outstanding debt, $6.2B net assets, $2.5B total liquidity, all‑in cost of debt 4.93% (vs. 5.24% in 2024), and credit quality metrics (top 90% EBITDA +9% LTM, interest coverage >2x, avg mark 99; bottom 10% avg mark 82); management flagged ample platform firepower (firmwide dry powder cited at >$5.04T and ~$40B of corporate dry powder) and stressed they will reassess the dividend quarterly while remaining opportunistic about buybacks, new originations, and balance‑sheet management.Blackstone Secured Lending Fund Financial Statement Overview
Summary
Income statement and balance sheet show strong growth and high reported profitability through 2024 with moderate leverage, but cash flow is frequently negative and volatile (including 2024–2025). Additionally, multiple 2025 line items (revenue, net income, debt) appear inconsistent with prior years, reducing confidence in the latest-period financial picture.Income Statement
Revenue expanded strongly from 2020–2024 (with especially large jumps in 2021 and 2023) and profitability looks consistently high in the years with complete margin data (2021–2024 net profit margins roughly in the mid‑60% to high‑70% range). However, the 2025 annual report shows revenue and net income recorded as zero (with a -100% revenue growth rate), which creates a major discontinuity versus prior years and reduces confidence in the latest-period earnings trajectory based on the provided data.62
Positive
Balance Sheet
The company has built a larger asset base over time (assets rising from about $6.0B in 2020 to about $13.5B in 2024, and $14.7B in 2025). Leverage is meaningful but not extreme for the profile, with debt-to-equity around ~1.0–1.33 during 2021–2024, and returns on equity have been steady around ~10–12% in 2021–2024. A key weakness is that 2025 shows total debt as zero despite the large asset base, which is inconsistent with prior years and makes latest-period balance-sheet risk harder to assess from this dataset.64
Positive
Cash Flow
Cash generation is volatile and often negative: operating cash flow was deeply negative in 2020, 2021, and 2024, and remains negative in 2025, with free cash flow tracking the same pattern. While 2022 and 2023 show positive operating and free cash flow, the large swing back to negative cash flow in 2024 and continued negative in 2025 is a material concern for sustainability and financial flexibility based on the provided figures.28
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.27B | 1.05B | 874.72M | 584.09M | 587.46M |
| Gross Profit | 995.39M | 731.26M | 618.74M | 386.65M | 472.46M |
| EBITDA | 95.78M | 708.62M | 628.75M | 405.94M | 462.86M |
| Net Income | 563.46M | 694.10M | 611.95M | 404.56M | 460.42M |
Balance Sheet | |||||
| Total Assets | 14.66B | 13.47B | 10.13B | 9.91B | 10.18B |
| Cash, Cash Equivalents and Short-Term Investments | 289.61M | 229.61M | 154.86M | 131.27M | 102.88M |
| Total Debt | 8.08B | 7.06B | 4.91B | 5.53B | 5.50B |
| Total Liabilities | 8.41B | 7.40B | 5.18B | 5.75B | 5.73B |
| Stockholders Equity | 6.25B | 6.08B | 4.95B | 4.16B | 4.45B |
Cash Flow | |||||
| Free Cash Flow | -458.66M | -2.53B | 458.81M | 672.95M | -3.83B |
| Operating Cash Flow | -458.66M | -2.53B | 458.81M | 672.95M | -3.83B |
| Investing Cash Flow | -1.04B | 0.00 | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | 0.00 | 2.60B | -432.16M | -648.18M | 3.71B |
Blackstone Secured Lending Fund Technical Analysis
Negative
23.88
Price Trends
25.81
Negative
26.30
Negative
27.82
Negative
Market Momentum
-0.53
Negative
39.36
Neutral
53.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BXSL, the sentiment is Negative. The current price of 23.88 is below the 20-day moving average (MA) of 24.61, below the 50-day MA of 25.81, and below the 200-day MA of 27.82, indicating a bearish trend. The MACD of -0.53 indicates Negative momentum. The RSI at 39.36 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BXSL.
Blackstone Secured Lending Fund Risk Analysis
Blackstone Secured Lending Fund disclosed 106 risk factors in its most recent earnings report. Blackstone Secured Lending Fund reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blackstone Secured Lending Fund Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $5.09B | 10.29 | 17.04% | 7.17% | 11.60% | 9.38% | |
63 Neutral | $13.37B | 10.02 | 9.39% | 9.64% | 10.34% | -24.16% | |
60 Neutral | $5.55B | 9.71 | 9.15% | 11.44% | 10.95% | -25.98% | |
59 Neutral | $325.17M | 12.70 | 5.38% | 16.61% | -3.09% | 200.66% | |
56 Neutral | $3.02B | 274.81 | 0.18% | 18.52% | -13.67% | -48.49% | |
51 Neutral | $5.14B | -6.21 | ― | 2.17% | 92.02% | -1386.34% |
* Financial Sector Average
BXSL
Blackstone Secured Lending Fund
23.88
-7.12
-22.97%
MAIN
Main Street Capital
56.80
0.48
0.85%
PNNT
Pennantpark Investment
4.98
-1.23
-19.77%
ARCC
Ares Capital
18.62
-2.62
-12.34%
FSK
FS KKR Capital
10.80
-9.01
-45.48%
STEP
StepStone Group
43.14
-14.09
-24.62%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.