Carlyle Secured Lending, Inc. Announces Financial Results For Second Quarter Ended June 30, 2025, Declares Third Quarter 2025 Dividend of $0.40 Per Common Share

Rhea-AI Summary

Carlyle Secured Lending (NASDAQ: CGBD) reported strong second quarter 2025 results, achieving record originations despite market uncertainty. The company posted Net Investment Income of $0.39 per share, while Net Asset Value (NAV) per share decreased by 1.2% to $16.43 from $16.63 in the previous quarter.

The total fair value of investments increased to $2.3 billion as of June 30, 2025. The Board declared a quarterly dividend of $0.40 per share, payable on October 17, 2025, to stockholders of record as of September 30, 2025. Since its inception in May 2013, CGBD has invested approximately $9.9 billion in debt and equity investments in middle-market companies.

Positive

• Record quarter of originations for both CGBD and Carlyle Direct Lending platform
• Net financial leverage at mid-point of target range, well-positioned for H2 2025
• Total investment fair value increased to $2.3 billion
• Maintained quarterly dividend at $0.40 per share

Negative

• Net Asset Value per share decreased 1.2% quarter-over-quarter
• Market spreads remain historically tight
• Net Investment Income of $0.39 per share falls slightly below quarterly dividend of $0.40

Insights

BDC Financial Analyst

CGBD reported steady Q2 results with $0.39 EPS, maintained $0.40 dividend despite 1.2% NAV decline amid record originations.

Carlyle Secured Lending delivered a solid second quarter with $0.39 per share in Net Investment Income, maintaining full dividend coverage on its $0.40 quarterly payout. The slight 1.2% NAV decline from $16.63 to $16.43 warrants attention but isn't alarming given market conditions.

What's particularly noteworthy is that CGBD achieved record originations despite CEO Justin Plouffe acknowledging historically tight spreads in the lending market. This suggests the management team is successfully navigating a competitive environment while maintaining disciplined underwriting standards.

The company's net financial leverage sits at the mid-point of their target range, positioning them well for what management anticipates will be increased deal flow in H2 2025. The growth in total investments to $2.3 billion demonstrates continued portfolio expansion.

From a structural perspective, it's worth noting the earnings release references non-GAAP adjustments related to recent acquisitions - specifically the CSL III merger and an interest in Middle Market Credit Fund II. These accounting adjustments maintain consistency in how management evaluates economic yield, though they didn't impact the final adjusted earnings figure for this quarter.

Overall, CGBD's results reflect the broader dynamics in the middle-market lending space: compressed yields amid high competition for deals, yet continued demand for private credit and opportunities for disciplined managers to deploy capital selectively.

NEW YORK, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “CGBD” or the “Company”) (NASDAQ: CGBD) today announced its financial results for its second quarter ended June 30, 2025. Justin Plouffe, CGBD’s Chief Executive Officer, said, “Despite market uncertainty, the second quarter was another record quarter of originations for both CGBD and the broader Carlyle Direct Lending platform. With CGBD net financial leverage at the mid-point of our target range, we remain well positioned to benefit from the expected pickup in deal volume in the second half of the year. Although spreads in the overall market remain historically tight, we continue to be dynamic in our origination strategies and disciplined in our underwriting approach, providing consistent credit performance and core middle market exposure.”

For the second quarter of 2025, we reported $0.39 per common share of Net Investment Income and Adjusted Net Investment Income, a non-GAAP financial measure described below.

Net asset value per common share decreased by 1.2% for the second quarter to $16.43 from $16.63 as of March 31, 2025. The total fair value of our investments increased to $2.3 billion as of June 30, 2025.

Dividends

On July 29, 2025, the Board of Directors declared a quarterly common dividend of $0.40 per share. The dividend is payable on October 17, 2025 to common stockholders of record on September 30, 2025.

Conference Call

The Company will host a conference call at 11:00 a.m. (Eastern Time) on Wednesday, August 6, 2025 to discuss these quarterly financial results. The conference call will be available via public webcast via a link on our website and will also be available on our website soon after the call’s completion.

Non-GAAP Financial Measures

On a supplemental basis, we are disclosing Adjusted Net Investment Income Per Common Share, which is calculated and presented on a basis other than in accordance with GAAP (“non-GAAP”). We use this non-GAAP financial measure internally to analyze and evaluate financial results and performance, and we believe this non-GAAP financial measures is useful to investors as an additional tool to evaluate our ongoing results and trends and to review our performance without giving effect to (i) the amortization/accretion resulting from the new cost basis of the investments acquired and accounted for under the acquisition method of accounting in accordance with ASC 805 and (ii) the one-time purchase or non-recurring investment income and expense events, including the effects on incentive fees. In addition, Company’s management uses the non-GAAP financial measure described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not had similar one-time or non-recurring events. The presentation of this non-GAAP measure is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

For the second quarter of 2025, the adjustment to net investment income per common share to determine Adjusted Net Investment Income Per Common Share represents the difference between GAAP amortization under the asset acquisition method of accounting in accordance with ASC 850 and management’s non-GAAP measure of amortization related to assets acquired in connection with the CSL III merger on March 27, 2025, and the remaining interest in Middle Market Credit Fund II on February 11, 2025. This adjustment reflects management’s view of the economic yield on the acquired assets and is consistent with our internal evaluation of performance.

There were no other one-time or non-recurring events considered as part of the non-GAAP measure for the second quarter of 2025.

Carlyle Secured Lending, Inc.

CGBD is an externally managed specialty finance company focused on lending to middle-market companies. CGBD is managed by Carlyle Global Credit Investment Management L.L.C., an SEC-registered investment adviser and a wholly owned subsidiary of The Carlyle Group Inc. Since it commenced investment operations in May 2013 through June 30, 2025, CGBD has invested approximately $9.9 billion in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. CGBD’s investment objective is to generate current income and capital appreciation primarily through debt investments in U.S. middle market companies. CGBD has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.

Web: carlylesecuredlending.com

About Carlyle

Carlyle (“Carlyle,” or the “Adviser”) (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Carlyle AlpInvest. With $453 billion of assets under management as of March 31, 2025, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,300 employees in 29 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.

Contacts:

Investors:	Media:
Nishil Mehta	Kristen Ashton
+1-212-813-4918	+1-212-813-4763
publicinvestor@carlylesecuredlending.com	kristen.ashton@carlyle.com

FAQ

What was CGBD's Net Investment Income per share for Q2 2025?

CGBD reported Net Investment Income of $0.39 per share for the second quarter of 2025.

What dividend did Carlyle Secured Lending declare for Q3 2025?

CGBD declared a quarterly dividend of $0.40 per share, payable on October 17, 2025, to stockholders of record as of September 30, 2025.

How much has CGBD's NAV per share changed in Q2 2025?

CGBD's Net Asset Value per share decreased by 1.2% from $16.63 to $16.43 during the second quarter of 2025.

What is the total fair value of CGBD's investments as of Q2 2025?

The total fair value of CGBD's investments increased to $2.3 billion as of June 30, 2025.

How much has Carlyle Secured Lending invested since its inception?

Since beginning operations in May 2013, CGBD has invested approximately $9.9 billion in aggregate principal amount of debt and equity investments.