Sixth Street Specialty Lending, Inc. (TSLX)
NYSE:TSLX
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Earnings Data
Report Date
Aug 04, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.44Last Year’s EPS
0.56Same Quarter Last Year
Strong Buy
Based on 7 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call balanced clear near-term headwinds — notably a NAV decline driven by market-wide spread widening, a reduction in activity-based fees, lower investment income, and a modest base dividend reduction — with several constructive elements: solid net investment income, ample liquidity and an extended credit facility, embedded activity-fee upside ($1.57 per share), disciplined originations with attractive realizations (strong asset-level IRRs), stable portfolio credit metrics (low nonaccrual % and a 1.19 weighted rating), and long-term NAV outperformance since IPO. Management emphasized the marks are largely unrealized and tied to market inputs and highlighted opportunities from a more lender-friendly documentation and spread environment. Given the mix of meaningful but largely noncash valuation pressures counterbalanced by strong liquidity, portfolio quality, upside optionality and disciplined positioning, the overall tone is cautious but constructive.Company Guidance
Net Investment Income and ROE
Generated net investment income of $0.42 per share in Q1, delivering an annualized return on equity of 9.9%.
Strong Liquidity and Extended Credit Facility
Maintained $1.1 billion of unfunded revolver capacity at quarter end; post-quarter amendment extended revolving credit facility final maturity through May 2031. After reserving for $300 million 2026 notes, liquidity stood at $649 million (2.6x unfunded eligible commitments).
Dividend Reset with Attractive Yield
Board approved a base quarterly dividend of $0.42 per share (down from $0.46), corresponding to an annualized yield of 10.3% on March 31 NAV; framework preserves upside via supplemental dividends tied to activity-based fee realizations.
Embedded Activity-Based Fee Upside
Approximately $1.57 per share of potential activity-based fee income embedded in the portfolio (including unamortized OID and call protection), providing meaningful upside if market activity accelerates.
Disciplined Capital Deployment and Investment Activity
In Q1: $338 million total commitments, $135 million total fundings, $22 million net fundings. Completed investments included Mindbody and Labrie; participated in Structured Credit Partners JV (initial Q1 funding $14.7 million with $200 million commitment).
Realizations with Strong Asset-Level Returns
Q1 repayments totaled $113 million across 4 full and 4 partial realizations. Notable payoffs: Galileo Parent (refinanced at SOFR+450 from SOFR+575) produced asset-level IRR 15% and 1.4x MOIC; MadCap generated asset-level IRR 16% and 1.3x MOIC.
Portfolio Quality and Performance Metrics
Weighted average performance rating 1.19 (scale 1–5), LTM revenue and EBITDA growth both 9%. Core portfolio weighted average revenue $425 million and EBITDA $127 million; median revenue $174 million and EBITDA $54 million. Nonaccrual count remained at 3 names representing ~1.4% of portfolio at fair value.
Balance Sheet and Funding Profile
Total investments $3.3 billion; principal debt outstanding $1.8 billion; net assets $1.5 billion or $16.24 per share. Funding mix is 68% unsecured debt; weighted average remaining life of debt funding 3.9 years (investments funded by debt 2.5 years).
Expense and Funding Cost Improvements
Net expenses declined to $52.4 million from $56.4 million prior quarter (-7.1%), and weighted average interest rate on average debt outstanding fell roughly 50 bps from 6.0% to 5.5%.
Long-Term NAV Outperformance
Cumulative NAV per share growth of 4.7% since the 2014 IPO through March 31, outperforming the public BDC peer group average NAV decline of 7.3% over the same period.
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 |
|---|---|---|---|
May 05, 2026 | $19.60 | $17.91 | -8.62% |
Feb 12, 2026 | $19.59 | $18.72 | -4.42% |
Nov 04, 2025 | $21.26 | $20.81 | -2.10% |
Jul 30, 2025 | $22.07 | $22.65 | +2.62% |
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, Inc. (TSLX) report earnings?
Sixth Street Specialty Lending, Inc. (TSLX) is schdueled to report earning on Aug 04, 2026, After Close (Confirmed).
What is Sixth Street Specialty Lending, Inc. (TSLX) earnings time?
Sixth Street Specialty Lending, Inc. (TSLX) earnings time is at Aug 04, 2026, After Close (Confirmed).
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What is TSLX EPS forecast?
TSLX EPS forecast for the fiscal quarter 2026 (Q2) is 0.44.