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Sixth Street Specialty Lending (NYSE: TSLX) Q2 income, NAV and dividend update

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Sixth Street Specialty Lending, Inc. reported second quarter 2026 net investment income and net income of $0.43 per share, producing annualized returns on equity of 10.6% and 10.5%, respectively. Reported net asset value per share was $16.24 at June 30, 2026, unchanged from March 31, 2026, as net investment income of $0.43 per share was largely offset by the second quarter base dividend of $0.42 per share and modest valuation movements. Total investment income was $97.8 million for the quarter versus $115.0 million a year earlier, primarily due to lower reference rates, while net expenses declined to $55.7 million from $62.9 million, helped by a lower average interest rate on debt outstanding.

The Board declared a third quarter 2026 base dividend of $0.42 per share to shareholders of record on September 15, 2026, payable September 30, 2026; there was no supplemental dividend related to Q2 earnings, though the supplemental framework remains in place. At June 30, 2026, the investment portfolio had an aggregate fair value of $3,302.1 million across 137 companies, with 88.3% in first-lien debt and only 1.3% of the portfolio at fair value on non-accrual status. The company held $193.6 million in cash and cash equivalents, total principal debt of $1,966.0 million, undrawn revolver capacity of $1,086.2 million, and a debt-to-equity ratio of 1.27x. It extended $1.525 billion of revolving credit facility commitments to May 1, 2031 and, after quarter-end, repaid $300 million of unsecured notes using revolver capacity and balance sheet cash.

Positive

  • None.

Negative

  • None.

Filing Explained

At June 30, reported liquidity was $1,022 million after unfunded commitments, versus $1,243 million before those commitments.

The filing’s liquidity presentation adds a funding view that includes commitments to portfolio companies, rather than only cash and revolving-credit capacity.

It distinguishes available and unavailable unfunded commitments, so the liquidity figures distinguish committed funding from immediately available resources.

For the quarter ended June 30, 2026, the company separately reports $114.6 million of new investment commitments, $136.7 million of investments funded, and $192.1 million of investments sold or repaid; these are principal amounts rather than one net cash-flow measure.

The remaining liquidity is conditional on the borrowing base, outstanding letters of credit, asset-coverage requirements, and limitations in agreements with portfolio companies.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net investment income per share Q2 2026 $0.43 For the quarter ended June 30, 2026
Annualized ROE on net investment income 10.6% For the second quarter ended June 30, 2026
Net asset value per share $16.24 At June 30, 2026
Total investment income $97.8 million Three months ended June 30, 2026
Net expenses $55.7 million Three months ended June 30, 2026
Total principal debt outstanding $1,966.0 million As of June 30, 2026
Debt to equity ratio 1.27x At June 30, 2026 quarter end
Q3 2026 base dividend per share $0.42 Declared for shareholders of record on September 15, 2026
net investment income financial
"reported net investment income of $0.43 per share for the second quarter ended June 30, 2026"
Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.
net asset value financial
"Reported net asset value (NAV) per share was $16.24 at June 30, 2026"
Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.
business development company regulatory
"elected to be regulated as a business development company, or a BDC, under the Investment Company Act"
A business development company is a publicly traded investment vehicle that lends to and buys stakes in smaller or privately held companies, acting like a combination of a lender, investor, and business partner. It matters to investors because BDCs offer the potential for higher regular income through dividends and diversified exposure to growing businesses, but they can also carry greater credit and liquidity risk than typical stocks or bonds—think higher-yielding but riskier income instruments.
non-accrual status financial
"As of June 30, 2026, 1.3% of the portfolio at fair value was on non-accrual status"
A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.
debt to equity ratio financial
"At June 30, 2026, the Company’s debt to equity ratio was 1.27x"
Debt to equity ratio measures how much a company has borrowed compared to the money provided by its owners or shareholders. Investors use it to judge financial risk and stability—much like comparing a household’s mortgage to its savings, a higher ratio means the business relies more on borrowed money and may be more vulnerable if earnings fall, while a lower ratio suggests more conservative funding from owners.
floating rates financial
"96.1% of debt investments based on fair value in the portfolio bore interest at floating rates"
Floating rates are interest rates on loans, bonds, or other debt that move up or down over time because they’re tied to a changing reference rate, so the amount of interest paid adjusts as market rates change. Investors care because floating-rate instruments shift interest-rate risk: they can protect income when rates rise but reduce price sensitivity when rates fall, much like a variable mortgage whose payments change with the market.
Total investment income $97.8 million down from $115.0 million in the three months ended June 30, 2025
Net expenses $55.7 million down from $62.9 million in the three months ended June 30, 2025
Net investment income $40,884 thousand down from $50,840 thousand in the three months ended June 30, 2025
Earnings per common share—basic and diluted $0.43 down from $0.63 for the three months ended June 30, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

What were Sixth Street Specialty Lending (TSLX) earnings for Q2 2026?
Sixth Street Specialty Lending reported Q2 2026 net investment income and net income of $0.43 per share. This corresponded to annualized returns on equity of 10.6% for net investment income and 10.5% for net income, reflecting solid profitability for the quarter.

What dividend did TSLX declare for the third quarter of 2026?
The Board declared a third quarter 2026 base dividend of $0.42 per share for TSLX shareholders. It is payable on September 30, 2026 to shareholders of record as of September 15, 2026, with the supplemental dividend policy remaining in place.

How did TSLX’s net asset value per share change in Q2 2026?
TSLX reported net asset value per share of $16.24 at June 30, 2026, unchanged from March 31, 2026. Net investment income of $0.43 per share was substantially offset by the $0.42 per-share base dividend and modest net valuation changes over the quarter.

What was TSLX’s total investment income in Q2 2026 and how did it compare year over year?
Total investment income for TSLX was $97.8 million in Q2 2026, compared with $115.0 million in Q2 2025. The company stated this decrease was primarily driven by a decline in reference rates versus the prior-year period.

What is TSLX’s leverage and liquidity position as of June 30, 2026?
As of June 30, 2026, TSLX had $193.6 million in cash and cash equivalents, $1,966.0 million in total principal debt, and $1,086.2 million of undrawn revolver capacity. The debt-to-equity ratio was 1.27x at quarter-end.

How is TSLX’s investment portfolio composed and what is its credit quality?
At June 30, 2026, TSLX’s portfolio had a fair value of $3,302.1 million across 137 companies, with 88.3% in first-lien debt. 96.1% of debt investments were floating rate, and only 1.3% of the portfolio at fair value was on non-accrual status.

What recent financing actions did TSLX take regarding its credit facility and notes?
On May 1, 2026, TSLX extended the maturity of $1.525 billion of revolving credit facility commitments to May 1, 2031 with unchanged pricing. After quarter-end, it repaid $300 million of August 1, 2026 unsecured notes using revolver capacity and cash.
0001508655false00015086552026-08-042026-08-04

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): August 4, 2026

Sixth Street Specialty Lending, Inc.

(Exact name of registrant as specified in charter)

 

 

 

 

 

 

 

Delaware

001-36364

27-3380000

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

 

2100 McKinney Avenue, Suite 1500

Dallas, TX

 

75201

(Address of Principal Executive Offices)

 

(zip code)

 

Registrant’s telephone number, including area code: (469) 621-3001

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

TSLX

The New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

Item 2.02 – Results of Operations and Financial Condition

On August 4, 2026, Sixth Street Specialty Lending, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended June 30, 2026. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 7.01 – Regulation FD Disclosure

On August 4, 2026, the Company issued a press release, included herewith as Exhibit 99.1, announcing the declaration of a third quarter 2026 base dividend per share of $0.42 to shareholders of record as of September 15, 2026, payable on September 30, 2026.

The information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

Item 9.01 – Financial Statements and Exhibits

(d) Exhibits:

 

 

 

 

Exhibit
Number

Description

 

 

99.1

Press Release, dated August 4, 2026

 

 

 

104

 

The cover page of this Current Report on Form 8-K, formatted in Inline XBRL

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

SIXTH STREET SPECIALTY LENDING, INC.

                    (Registrant)

 

 

 

 

Date: August 4, 2026

 

By:

/s/ Ian Simmonds

 

 

 

Ian Simmonds

 

 

 

Chief Financial Officer

 

 

Exhibit 99.1

 

img52863034_0.jpg

 

k

SECOND QUARTER 2026 EARNINGS RESULTS

Sixth Street Specialty Lending, Inc. Reports Second Quarter Results; Declares a Third Quarter Base Dividend Per Share of $0.42

NEW YORK — August 4, 2026 — Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported net investment income of $0.43 per share and net income of $0.43 per share for the second quarter ended June 30, 2026. These results correspond to an annualized return on equity (ROE) on net investment income and net income of 10.6% and 10.5%, respectively.

 

Reported net asset value (NAV) per share was $16.24 at June 30, 2026 as compared to $16.24 at March 31, 2026. Net asset value per share was unchanged this quarter, as net investment income of $0.43 per share was substantially offset by the second quarter base dividend of $0.42 per share. Net changes in the fair value of the portfolio were modest in aggregate, with $0.04 per share of net unrealized losses attributable to credit spread movements largely offset by $0.06 per share of net unrealized gains attributable to movement in equity market multiples and $0.01 per share of net realized gains.

 

The Company announced that its Board of Directors has declared a third quarter 2026 base dividend of $0.42 per share to shareholders of record as of September 15, 2026, payable on September 30, 2026. There was no supplemental dividend related to Q2 earnings. The supplemental dividend policy remains in place to distribute over-earning to shareholders based on the existing framework.

 

On May 1, 2026, the Company completed an amendment to its Revolving Credit Facility, which extended the stated maturity date to May 1, 2031 for $1.525 billion of commitments. The pricing and other material terms of the facility remain unchanged.

 

Subsequent to quarter-end, the Company repaid its $300 million August 1, 2026 unsecured notes through a combination of utilization of undrawn capacity on its revolving credit facility and cash on the balance sheet.

 

 

 

Net Investment Income Per Share

Q2 2026:

$0.43

 

 

Net Income Per Share

Q2 2026:

$0.43

 

 

Return on Equity

Q2 2026 (NII):

10.6%

Q2 2026 (NI):

10.5%

 

 

NAV

Q2 2026 ($MM):

$1,548.6

Q2 2026 (per share):

$16.24

 

 

Dividends Declared (per share)

Q2 2026 (Base):

$0.42

LTM Q2 2026 (Base):

$1.80

LTM Q2 2026 (Supplemental):

$0.09

LTM Q2 2026 (Total):

$1.89

 

 

 

 

1

 

img52863034_0.jpg

 

 

Portfolio and Investment Activity

 

 

 

For the quarter ended June 30, 2026, new investment commitments totaled $114.6 million. This compares to $338.1 million for the quarter ended March 31, 2026. For the quarter ended June 30, 2026, the principal amount of new investments funded was $136.7 million across two new portfolio companies and additional capital called by the previously announced joint venture, Structured Credit Partners or SCP. For this period, the Company had $192.1 million aggregate principal amount in exits and repayments. For the quarter ended March 31, 2026, the principal amount of new investments funded was $134.8 million across two new portfolio companies, four upsizes to existing portfolio companies and an initial investment in SCP. For this period, the Company had $113.0 million aggregate principal amount in exits and repayments.

 

The Company had investments in 1371 and 1432 portfolio companies as of June 30, 2026 and March 31, 2026 with an aggregate fair value of $3,302.1 million and $3,313.4 million, respectively. As of June 30, 2026, the average investment size in each portfolio company was $30.9 million based on fair value.

 

As of June 30, 2026, the Company’s portfolio based on fair value consisted of 88.3% first-lien debt investments, 0.7% second-lien debt investments, 2.0% mezzanine debt investments, 4.7% equity investments, 2.7% structured credit investments and 1.6% joint venture investments. As of March 31, 2026, the Company’s portfolio based on fair value consisted of 89.3% first-lien debt investments, 1.0% second-lien debt investments, 1.9% mezzanine debt investments, 4.6% equity investments, 2.8% structured credit investments and 0.4% joint venture investments.

 

As of June 30, 2026, 96.1% of debt investments3 based on fair value in the portfolio bore interest at floating rates with 100.0% of these subject to reference rate floors. The Company’s credit facilities also bear interest at floating rates. In connection with the Company’s Unsecured Notes, which bear interest at fixed rates, the Company has entered into fixed-to-floating interest rate swaps in order to align the nature of the interest rates of its liabilities with its investment portfolio.

 

As of June 30, 2026 and March 31, 2026, the weighted average total yield of debt and income-producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.1% and 11.1%, respectively, and the weighted average total yield of debt and income-producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.2% and 11.2%, respectively.

 

As of June 30, 2026 and March 31, 2026, 1.3% and 1.4% of the portfolio at fair value was on non-accrual status, respectively. There were no new portfolio companies added to non-accrual status during the quarter.

 

Q2 2026 Origination Activity

 

Commitments:

$114.6MM

 

Fundings:

$136.7MM

 

Net Repayments:

$55.4MM

 

 

 

 

Average Investment Size

 

$30.9MM

 

(0.9% of the portfolio at fair value)

 

 

 

 

 

 

 

First Lien Debt Investments (% FV)

 

88.3%

 

 

 

 

 

 

Floating Rate Debt Investments3

 

(% FV)

 

96.1%

 

 

 

 

Weighted Average Yield of Debt and Incoming-Producing Securities

 

Yield at Fair Value:

11.1%

 

Yield at Amortized Cost:

11.2%

 

 

 

 
1.
Includes 33 structured credit investments with a total fair value of $87.8 million as of June 30, 2026.
2.
Includes 36 structured credit investments with a total fair value of $93.8 million as of March 31, 2026.
3.
Calculation includes income earning debt investments only.

 

2

 

img52863034_0.jpg

 

RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2026

 

Total Investment Income

 

 

 

 

Total Investment Income

For the three months ended June 30, 2026 and 2025, investment income was $97.8 million and $115.0 million, respectively. The decrease in investment income was primarily the result of a decrease in reference rates for the three months ended June 30, 2026 compared to the same period in 2025.

 

 

 

$97.8MM

 

 

 

Net Expenses

 

 

 

 

Net Expenses

Net expenses totaled $55.7 million and $62.9 million for the three months ended June 30, 2026 and 2025, respectively. The decrease in net expenses was primarily due to a decrease in the average interest rate on our debt outstanding, which decreased from 6.3% for the three months ended June 30, 2025 to 5.6% for the three months ended June 30, 2026 due to a change in the mix of our debt financing sources and a change in SOFR rates.

 

 

 

 

$55.7MM

 

 

 

Debt and Capital Resources

 

 

 

 

 

As of June 30, 2026, the Company had $193.6 million in cash and cash equivalents (including $36.3 million of restricted cash), total principal value of debt outstanding of $1,966.0 million, and $1,086.2 million of undrawn capacity on its revolving credit facility, subject to borrowing base and other limitations. The Company’s weighted average interest rate on debt outstanding was 5.6% and 5.5% for the three-month periods ended June 30, 2026 and March 31, 2026, respectively. At June 30, 2026, the Company’s debt to equity ratio was 1.27x, compared to 1.18x at March 31, 2026. Average debt to equity was 1.24x for the three-month period ended June 30, 2026, compared to 1.14x for the three-month period ended March 31, 2026.

 

Total Principal Debt Outstanding

 

$1,966.0MM

 

 

 

 

Debt-to-Equity Ratio

 

Q2 2026 Quarter End:

1.27x

 

Q2 2026 Average1:

1.24x
1.
Daily average debt outstanding during the quarter divided by the average net assets during the quarter. Average net assets is calculated by starting with the prior quarter end net asset value and adjusting for capital activity during the quarter (adding common stock offerings / DRIP contributions).

 

 

 

 

3

 

img52863034_0.jpg

 

LIQUIDITY AND FUNDING PROFILE

 

Liquidity

The following tables summarize the Company’s liquidity at June 30, 2026 and changes to unfunded commitments since March 31, 2026.

 

$ Millions

Revolving Credit Facility

 

Unfunded Commitment Activity

Revolver Capacity

$1,525

 

Unfunded Commitments (See Note 8 in 3/31/26 10-Q)

$512

Drawn on Revolver

($416)

 

Extinguished Unfunded Commitments

($12)

Unrestricted Cash Balance

$157

 

New Unfunded Commitments

$15

Issued Letters of Credit

($23)

 

Net Drawdown of Unfunded Commitments

($83)

Total Liquidity (Pre-Unfunded Commitments)

$1,243

 

Total Unfunded Commitments

$432

Available Unfunded Commitments1

($221)

 

Unavailable Unfunded Commitments1

($211)

Total Liquidity (Burdened for Unfunded Commitments)

$1,022

 

Available Unfunded Commitments1

$221

 

1.
Commitments may be subject to limitations on borrowings set forth in the agreements between the Company and the applicable portfolio company. As a result, portfolio companies may not be eligible to borrow the full commitment amount on such date.

Note: May not sum due to rounding.

 

Funding Profile

At June 30, 2026, the Company’s funding mix was comprised of approximately 79% unsecured and 21% secured debt. As illustrated below, the Company’s nearest debt maturity was in August 2026 at $300 million, and the weighted average remaining life of investments funded with debt was ~2.4 years, compared to a weighted average remaining maturity on debt of ~3.8 years1.

 

img52863034_1.jpg

*$300 million unsecured notes with a August 1, 2026 maturity date were repaid post quarter end.

 

1.
Weighted by gross commitment amount
2.
The amount available may be subject to limitations related to the borrowing base under the Revolving Credit Facility, outstanding letters of credit and asset coverage requirements.

Note: Numbers may not sum due to rounding.

4

 

img52863034_0.jpg

 

Conference Call and Webcast

 

Conference Call Information:

A conference call to discuss the Company’s financial results will be held at 8:30 a.m. Eastern Time on August 5, 2026. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX’s website at https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations. The Events & Presentations page of the Investor Resources section of TSLX’s website also includes a slide presentation that complements the Earnings Conference Call. Please visit the website to test your connection before the webcast.

 

Research analysts who wish to participate in the conference call must first register at https://register-conf.media-server.com/register/BIb094b698d91c489080310428d3254a9e. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.

 

Replay Information:

 

A recorded version will be available under the same webcast link (https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations) following the conclusion of the conference call.

5

 

img52863034_0.jpg

 

Financial Highlights

 

(Amounts in millions, except per share amounts)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

June 30, 2026

 

December 31, 2025

 

June 30, 2025

 

Investments at Fair Value

 

 

$

 

3,302.1

 

 

 

$

 

3,347.3

 

 

 

$

 

3,294.9

 

 

Total Assets

 

 

$

 

3,543.2

 

 

 

$

 

3,421.7

 

 

 

$

 

3,415.8

 

 

Net Asset Value Per Share

 

 

$

 

16.24

 

 

 

$

 

16.98

 

 

 

$

 

17.17

 

 

Supplemental Dividend Per Share

 

 

$

 

0.00

 

 

 

$

 

0.01

 

 

 

$

 

0.05

 

 

Adjusted Net Asset Value Per Share (1)

 

 

$

 

16.24

 

 

 

$

 

16.97

 

 

 

$

 

17.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Income

 

 

$

 

97.8

 

 

 

$

 

108.2

 

 

 

$

 

115.0

 

 

Net Investment Income

 

 

$

 

40.9

 

 

 

$

 

50.4

 

 

 

$

 

50.8

 

 

Net Income (Loss)

 

 

$

 

40.5

 

 

 

$

 

30.0

 

 

 

$

 

59.0

 

 

Accrued Capital Gains Incentive Fee Expense

 

 

$

 

0.0

 

 

 

$

 

(1.8

)

 

 

$

 

1.4

 

 

Adjusted Net Investment Income (2)

 

 

$

 

40.9

 

 

 

$

 

48.6

 

 

 

$

 

52.3

 

 

Adjusted Net Income (Loss) (2)

 

 

$

 

40.5

 

 

 

$

 

28.2

 

 

 

$

 

60.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income Per Share

 

 

$

0.43

 

 

 

$

0.53

 

 

 

$

0.54

 

 

Net Income (Loss) Per Share

 

 

$

 

0.43

 

 

 

$

0.32

 

 

 

$

0.63

 

 

Accrued Capital Gains Incentive Fee Expense Per Share

 

 

$

0.00

 

 

 

$

 

(0.01

)

 

 

$

 

0.02

 

 

Adjusted Net Investment Income Per Share (2)

 

 

$

 

0.43

 

 

 

$

 

0.52

 

 

 

$

 

0.56

 

 

Adjusted Net Income (Loss) Per Share (2)

 

 

$

 

0.43

 

 

 

$

 

0.30

 

 

 

$

 

0.64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Return on Equity (Net Investment Income) (3)

 

 

 

 

10.6

%

 

 

 

 

12.5

%

 

 

 

 

12.7

%

 

Annualized Return on Equity (Net Income (Loss)) (3)

 

 

 

 

10.5

%

 

 

 

 

7.4

%

 

 

 

 

14.7

%

 

Annualized Return on Equity (Adjusted Net Investment Income) (2)(3)

 

 

 

 

10.6

%

 

 

 

 

12.0

%

 

 

 

 

13.1

%

 

Annualized Return on Equity (Adjusted Net Income (Loss)) (2)(3)

 

 

 

 

10.5

%

 

 

 

 

7.0

%

 

 

 

 

15.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Yield of Debt and Income Producing Securities at Fair Value

 

 

 

 

11.1

%

 

 

 

 

11.1

%

 

 

 

 

11.7

%

 

Weighted Average Yield of Debt and Income Producing Securities at Amortized Cost

 

 

 

 

11.2

%

 

 

 

 

11.3

%

 

 

 

 

12.0

%

 

Percentage of Debt Investment Commitments at Floating Rates

 

 

 

 

96.1

%

 

 

 

 

96.3

%

 

 

 

 

96.5

%

 

 

1.
Adjusted net asset value per share gives effect to the supplemental dividend declared related to earnings or special dividend in the applicable period.
2.
Adjusted to exclude the capital gains incentive fee that was accrued, but not paid, related to cumulative unrealized capital gains in excess of cumulative net realized capital gains less any cumulative unrealized losses and capital gains incentive fees paid inception to date.
3.
Return on equity is calculated using prior period’s ending net asset value per share.

6

 

img52863034_0.jpg

 

Financial Statements and Tables

 

Sixth Street Specialty Lending, Inc.
Consolidated Balance Sheets

(Amounts in thousands, except share and per share amounts)

 

 

 

June 30, 2026

 

 

December 31, 2025

 

Assets

 

 

 

 

 

 

Investments at fair value

 

 

 

 

 

 

Non-controlled, non-affiliated investments (amortized cost of $3,181,712 and $3,244,762, respectively)

 

$

3,189,952

 

 

$

3,288,945

 

Non-controlled, affiliated investments (amortized cost of $51,391 and $0, respectively)

 

 

53,832

 

 

 

—

 

Controlled, affiliated investments (amortized cost of $83,290 and $78,520, respectively)

 

 

58,348

 

 

 

58,372

 

Total investments at fair value (amortized cost of $3,316,393 and $3,323,282, respectively)

 

 

3,302,132

 

 

 

3,347,317

 

Cash and cash equivalents (restricted cash of $40,055 and $16,727, respectively)

 

 

193,555

 

 

 

19,662

 

Interest receivable

 

 

36,955

 

 

 

34,132

 

Prepaid expenses and other assets

 

 

10,549

 

 

 

20,544

 

Total Assets

 

$

3,543,191

 

 

$

3,421,655

 

Liabilities

 

 

 

 

 

 

Debt (net of deferred financing costs of $29,024 and $24,411, respectively)

 

$

1,924,967

 

 

$

1,743,234

 

Management fees payable to affiliate

 

 

12,490

 

 

 

12,794

 

Incentive fees on net investment income payable to affiliate

 

 

8,672

 

 

 

10,336

 

Incentive fees on net capital gains accrued to affiliate

 

 

—

 

 

 

—

 

Other payables to affiliate

 

 

3,357

 

 

 

3,166

 

Other liabilities

 

 

45,151

 

 

 

44,404

 

Total Liabilities

 

 

1,994,637

 

 

 

1,813,934

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

Preferred stock, $0.01 par value; 100,000,000 shares authorized; no shares
   issued and outstanding

 

 

—

 

 

 

—

 

Common stock, $0.01 par value; 400,000,000 shares authorized, 96,038,327
   and 95,369,400 shares issued, respectively; and 95,343,139 and 94,705,150
   shares outstanding, respectively

 

 

960

 

 

 

954

 

Additional paid-in capital

 

 

1,546,847

 

 

 

1,535,583

 

Treasury stock at cost; 695,188 and 664,250 shares held, respectively

 

 

(10,959

)

 

 

(10,459

)

Distributable earnings

 

 

11,706

 

 

 

81,643

 

Total Net Assets

 

 

1,548,554

 

 

 

1,607,721

 

Total Liabilities and Net Assets

 

$

3,543,191

 

 

$

3,421,655

 

Net Asset Value Per Share

 

$

16.24

 

 

$

16.98

 

 

7

 

img52863034_0.jpg

 

Sixth Street Specialty Lending, Inc.

Consolidated Statements of Operations

(Amounts in thousands, except share and per share amounts)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

Income

 

 

 

 

 

 

 

 

 

 

 

 

Investment income from non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments

 

$

83,142

 

 

$

98,684

 

 

$

164,949

 

 

$

202,877

 

Paid-in-kind interest income

 

 

6,722

 

 

 

5,783

 

 

 

13,691

 

 

 

11,143

 

Dividend income

 

 

257

 

 

 

387

 

 

 

494

 

 

 

1,295

 

Other income

 

 

3,959

 

 

 

7,609

 

 

 

6,140

 

 

 

11,068

 

Total investment income from non-controlled, non-affiliated investments

 

 

94,080

 

 

 

112,463

 

 

 

185,274

 

 

 

226,383

 

Investment income from non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

Dividend income

 

 

1,690

 

 

 

—

 

 

 

1,913

 

 

 

—

 

Total investment income from non-controlled, affiliated investments

 

 

1,690

 

 

 

—

 

 

 

1,913

 

 

 

—

 

Investment income from controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

Interest from investments

 

 

2,069

 

 

 

2,549

 

 

 

4,040

 

 

 

4,977

 

Other income

 

 

5

 

 

 

3

 

 

 

14

 

 

 

4

 

Total investment income from controlled, affiliated investments

 

 

2,074

 

 

 

2,552

 

 

 

4,054

 

 

 

4,981

 

Total Investment Income

 

 

97,844

 

 

 

115,015

 

 

 

191,241

 

 

 

231,364

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

30,085

 

 

 

33,647

 

 

 

58,343

 

 

 

66,617

 

Management fees

 

 

12,960

 

 

 

12,918

 

 

 

25,553

 

 

 

26,001

 

Incentive fees on net investment income

 

 

8,672

 

 

 

11,089

 

 

 

17,124

 

 

 

22,606

 

Incentive fees on net capital gains

 

 

—

 

 

 

1,438

 

 

 

—

 

 

 

(2,248

)

Professional fees

 

 

2,419

 

 

 

2,561

 

 

 

4,162

 

 

 

4,521

 

Directors’ fees

 

 

230

 

 

 

248

 

 

 

484

 

 

 

496

 

Other general and administrative

 

 

1,763

 

 

 

1,280

 

 

 

3,132

 

 

 

2,617

 

Total expenses

 

 

56,129

 

 

 

63,181

 

 

 

108,798

 

 

 

120,610

 

Management and incentive fees waived (Note 3)

 

 

(470

)

 

 

(297

)

 

 

(788

)

 

 

(706

)

Net Expenses

 

 

55,659

 

 

 

62,884

 

 

 

108,010

 

 

 

119,904

 

Net Investment Income Before Income Taxes

 

 

42,185

 

 

 

52,131

 

 

 

83,231

 

 

 

111,460

 

Income taxes, including excise taxes

 

 

1,301

 

 

 

1,291

 

 

 

2,505

 

 

 

2,642

 

Net Investment Income

 

 

40,884

 

 

 

50,840

 

 

 

80,726

 

 

 

108,818

 

Unrealized and Realized Gains (Losses)

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(3,255

)

 

 

73,790

 

 

 

(35,943

)

 

 

64,352

 

Non-controlled, affiliated investments

 

 

2,441

 

 

 

—

 

 

 

2,441

 

 

 

—

 

Controlled, affiliated investments

 

 

(2,557

)

 

 

(2,987

)

 

 

(4,793

)

 

 

(4,366

)

Translation of other assets and liabilities in foreign currencies

 

 

2,916

 

 

 

(25,764

)

 

 

11,316

 

 

 

(36,807

)

Income tax provision

 

 

(727

)

 

 

—

 

 

 

(727

)

 

 

—

 

Total net change in unrealized gains (losses)

 

 

(1,182

)

 

 

45,039

 

 

 

(27,706

)

 

 

23,179

 

Realized gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

795

 

 

 

(36,803

)

 

 

(38,462

)

 

 

(35,688

)

Foreign currency transactions

 

 

11

 

 

 

(73

)

 

 

(75

)

 

 

(352

)

Total net realized gains (losses)

 

 

806

 

 

 

(36,876

)

 

 

(38,537

)

 

 

(36,040

)

Total Net Unrealized and Realized Gains (Losses)

 

 

(376

)

 

 

8,163

 

 

 

(66,243

)

 

 

(12,861

)

Increase (Decrease) in Net Assets Resulting from Operations

 

$

40,508

 

 

$

59,003

 

 

$

14,483

 

 

$

95,957

 

Earnings per common share—basic and diluted

 

$

0.43

 

 

$

0.63

 

 

$

0.15

 

 

$

1.02

 

Weighted average shares of common stock outstanding—basic and diluted

 

 

95,021,455

 

 

 

93,971,164

 

 

 

94,866,293

 

 

 

93,821,251

 

 

8

 

img52863034_0.jpg

 

The Company’s investment activity for the quarter ended June 30, 2026 and 2025 presented below (information presented herein is at par value unless otherwise indicated).

 

 

Three Months Ended

 

($ in millions)

 

June 30, 2026

 

 

June 30, 2025

 

New investment commitments:

 

 

 

 

 

 

Gross originations (1)

 

$

821.3

 

 

$

604.1

 

Less: Syndications/sell downs (1)

 

 

706.7

 

 

 

306.4

 

Total new investment commitments

 

$

114.6

 

 

$

297.7

 

Principal amount of investments funded:

 

 

 

 

 

 

First-lien

 

$

100.0

 

 

$

190.1

 

Second-lien

 

 

—

 

 

 

—

 

Mezzanine

 

 

—

 

 

 

—

 

Equity

 

 

—

 

 

 

2.3

 

Structured Credit

 

 

—

 

 

 

16.2

 

Joint Venture

 

 

36.7

 

 

 

—

 

Total

 

$

136.7

 

 

$

208.6

 

Principal amount of investments sold or repaid:

 

 

 

 

 

 

First-lien

 

$

175.2

 

 

$

365.9

 

Second-lien

 

 

8.2

 

 

 

3.4

 

Mezzanine

 

 

—

 

 

 

—

 

Equity

 

 

1.4

 

 

 

3.2

 

Structured Credit

 

 

7.3

 

 

 

16.2

 

Joint Venture

 

 

—

 

 

 

—

 

Total

 

$

192.1

 

 

$

388.7

 

Number of new investment commitments in
   new portfolio companies

 

 

2

 

 

 

13

 

Average new investment commitment amount in
   new portfolio companies

 

$

50.9

 

 

$

20.0

 

Weighted average term for new investment
   commitments in new portfolio companies
   (in years)

 

 

5.0

 

 

 

6.2

 

Percentage of new debt investment commitments
   at floating rates

 

 

100.0

%

 

 

99.7

%

Percentage of new debt investment commitments
   at fixed rates

 

 

0.0

%

 

 

0.3

%

Weighted average interest rate of new
   investment commitments

 

 

10.4

%

 

 

10.7

%

Weighted average spread over reference rate of new
   floating rate investment commitments

 

 

6.9

%

 

 

6.7

%

Weighted average interest rate on investments
   fully sold or paid down

 

 

10.7

%

 

 

12.2

%

 

1.
Includes affiliates of Sixth Street.

 

 

9

 

img52863034_0.jpg

 

About Sixth Street Specialty Lending

Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission (“SEC”) registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $135 billion in assets under management and committed capital. For more information, visit the Company’s website at https://sixthstreetspecialtylending.com.

About Sixth Street

Sixth Street is a global investment firm with over $135 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 750 team members including over 300 investment professionals around the world. For more information, visit https://sixthstreet.com or follow Sixth Street on LinkedIn.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements,” within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which relate to future events or the Company’s future performance or financial condition. These forward-looking statements can be identified by the use of forward-looking terminology, such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “can,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates”, “confident,” “conviction,” “identified” or the negative versions of these words or other comparable words thereof. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Except as otherwise required by federal securities laws, the Company assumes no obligation to update any such forward-looking statements, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Adjusted net investment income and adjusted net income are each non-GAAP financial measures, which represent net investment income and net income, respectively, in each case less the impact of accrued capital gains incentive fee expenses. The Company believes that adjusted net investment income and adjusted net income provide useful information to investors regarding the fundamental earnings power of the business, and these figures are used by the Company to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.

 

Investors:

Cami Senatore, 469-621-2033
Sixth Street Specialty Lending
IRTSLX@sixthstreet.com

 

Media:

Patrick Clifford, 617-793-2004
Sixth Street
PClifford@sixthstreet.com

10

 

Source: View Original Filing on SEC EDGAR

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