Sixth Street Specialty Lending (TSLX) Q2 2026 earnings summary

Executive summary

• Net investment income and net income per share were both $0.43 for Q2 2026, with annualized ROE of 10.6% and 10.5%, and net asset value per share stable at $16.24.

• Portfolio focused on U.S. middle-market, senior floating rate loans, with 88.3% first-lien, 96.1% floating rate, and 1.3% non-accruals at fair value.

• Portfolio comprised 137 companies with $3.3B fair value and average investment size of $30.9M; largest single investment was 2.4% of total.

• Base quarterly dividend of $0.42 per share approved; supplemental dividend policy remains in place.

• Amendment to revolving credit facility extended maturity to 2031 for $1.525B; $300M unsecured notes repaid post quarter-end.

Financial highlights

• Total investment income for Q2 2026 was $97.8M, down from $115.0M in Q2 2025; net investment income was $40.9M.

• Net asset value at quarter-end was $1.55B, with net asset value per share at $16.24.

• Weighted average yield on debt and income-producing securities at fair value was 11.1%.

• Net expenses for Q2 2026 were $55.7M, mainly due to interest expense.

• Debt outstanding at quarter-end was $1.97B.

Outlook and guidance

• Management expects continued uncertainty from inflation, interest rates, and geopolitical risks, but middle-market lending remains favorable.

• Activity-based fee income and M&A activity are expected to increase in the second half of 2026.

• Target leverage range is 0.90x–1.25x, with actual debt-to-equity at 1.27x.

• Supplemental dividend policy remains in place to distribute over-earning.