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Sixth Street Specialty Lending (TSLX)
NYSE:TSLX
Earnings Data
Report Date
May 05, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.5Last Year’s EPS
0.58Same Quarter Last Year
Moderate Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call emphasized durable operating results and strong balance-sheet liquidity, with full-year operating ROE (12.7%) and economic returns (10.9%) exceeding the company’s estimated cost of equity. High repayment activity, elevated fee income, conservative leverage (1.1x) and substantial liquidity (~33% of assets and multi‑times coverage of unfunded commitments) were highlighted as strategic strengths that position the firm to capitalize on market dislocations. Near-term headwinds include modest NAV declines, Q4 unrealized losses and yield compression due to lower base rates, alongside a tighter spread environment and competitive pressure in new issuance. Management expects 2026 normalized earnings to be slightly below peak but durable, and a new fee-free JV that is expected to be accretive over time. Overall, the positives around returns, liquidity, and accretive initiatives outweigh the manageable near-term challenges.Company Guidance
Strong full-year adjusted operating returns
Full-year 2025 adjusted net investment income per share of $2.18, representing an operating return on equity of 12.7% (exceeding the top end of guidance) and adjusted net income per share of $1.76 (ROE 10.3%). Economic return for 2025 was 10.9%, marking the tenth consecutive year of double-digit economic returns. Both operating ROE and economic return exceeded the company's estimated cost of equity of 9%.
Quarterly dividend coverage and payouts
Q4 adjusted net investment income of $0.52 per share exceeded the base quarterly dividend of $0.46, providing base dividend coverage of 113%. Board approved a base quarterly dividend of $0.46 and a supplemental dividend of $0.01 for Q4 (capped per distribution framework).
Robust liquidity and conservative leverage
Ending debt-to-equity of 1.1x with average 2025 leverage of 1.17x. Liquidity represented ~33% of total assets with ~$1.1B of unfunded revolver capacity vs $199M of unfunded portfolio commitments (liquidity exceeded unfunded commitments by ~4.2x after adjusting for 2026 note repayment). The company reported $246M of incremental investment capacity before reaching the top end of its target leverage range.
High repayment and fee activity supporting earnings
Total repayments of $1.2B in 2025 (highest annual repayment activity since inception) and Q4 repayments of $235M. Portfolio turnover was 34% in 2025 versus a three-year average of 22%. Activity-based fee income was $0.64 per share for 2025, the highest since 2020, supporting earnings.
Attractive new-investment economics and conservative capital structure positioning
In Q4, weighted average spread on new investments was 691 basis points (compares favorably to 551 bps reported by public BDC peers in Q3). In Q4, 97% of investments were first lien loans and investment mix included cross-platform transactions across diversified end markets, demonstrating top-of-capital-structure focus and thematic sourcing.
Portfolio credit metrics remain resilient
Weighted average LTV across the portfolio approximately 41% (stable year-over-year). Core portfolio LTM revenue growth ~9% and LTM EBITDA growth ~12%. For mapped enterprise software exposure (~40% of fair value), LTM revenue growth ~9% and LTM earnings growth ~15% with weighted average LTV ~40%.
Strategic JV expected to be accretive
Formation of Structured Credit Partners (JV with Carlyle) to invest equity into newly issued broadly syndicated loan CLOs. SLX’s total commitment is $200M (to be deployed over time). Management expects mid-teens returns on capital invested and believes the fee-free structure will be accretive to earnings and asset-level yields.
Stable guidance for 2026 and visibility
Management expects 2026 target return on equity on net investment income of 11%–11.5%, corresponding to adjusted net investment income per share of $1.87–$1.95 (using year-end book value ~$16.97) based on forward curve, mid-target leverage and broadly stable new-issue spreads.
TSLX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSLX Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 12, 2026 | $20.11 | $19.22 | -4.42% |
Nov 04, 2025 | $21.82 | $21.36 | -2.11% |
Jul 30, 2025 | $22.66 | $23.25 | +2.62% |
Apr 30, 2025 | $19.44 | $19.25 | -0.97% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Sixth Street Specialty Lending (TSLX) report earnings?
Sixth Street Specialty Lending (TSLX) is schdueled to report earning on May 05, 2026, After Close (Confirmed).
What is Sixth Street Specialty Lending (TSLX) earnings time?
Sixth Street Specialty Lending (TSLX) earnings time is at May 05, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is TSLX EPS forecast?
TSLX EPS forecast for the fiscal quarter 2026 (Q1) is 0.5.