Sixth Street Special Credit Reports 4Q and Full Year 2025 Results; paid a dividend of 0.46 Q1

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Sixth Street Specialty Lending, Inc. (NYSE: TSLX ) reported 2025 net investment income (NII) of $2.23 per share and net income of $1.81 per share. The fourth quarter ended on Dec. 31, 2025, NII was $0.53 per share, and earnings were $0.32 per share.

Full-year adjusted NII of $2.18 per share; net income of $1.76 per share
Q4 adjusted NII of $0.52 per share; net income is $0.30 per share
Reported NAV per share of $16.98 on Dec. 31, 2025
NII’s full-year return on equity (ROE) of 13.1%; net income ROE of 10.6%
in 2025 dividends of $2.05 per share
$1.08 billion in new investment commitments by 2025

Results for the full year 2025 included approximately $0.05 per share from the relaxation of previously accrued dividend payment expense. Excluding this impact, adjusted NII was $2.18 per share, and adjusted earnings were $1.76 per share.

For the year, ROE was 13.1% on an NII basis and 10.6% on a revenue basis. Adjusted ROE was 12.7% on adjusted NII and 10.3% on adjusted net income.

In the fourth quarter, annual ROE was 12.5% on NII and 7.4% on revenue. Annual adjusted ROE was 12.0% and 7.0%, respectively.

The net asset value (NAV) per share decreased to $16.98 at the end of the year from $17.14 on September 30, 2025. The company said the change reflects an overachievement of the underlying profit by NII, minus the change in net unrealized gains and portfolio events specific to the company.

The 2025 economic return, defined as the change in NAV and dividends paid, was 10.9%.

The board declared a first quarter 2026 dividend of $0.46 per share, payable on March 31, 2026, to shareholders of record as of March 16, 2026. It also declared a fourth quarter additional dividend of $0.01 per share, payable on March 20, 2026.

For the full year 2025, the company announced basic earnings of $1.84 per share and additional dividends of $0.21 per share, for a total of $2.05 per share.

New investment commitments reached $1.08 billion in 2025, compared to $1.24 billion in 2024. Funding was $894.0 million, while outflows totaled $1.20 billion, resulting in net returns of $302.1 million.

In the fourth quarter, obligations were $242.4 million and funding was $196.7 million. Outflows and payments were $234.9 million.

As of December 31, 2025, the portfolio included 143 portfolio companies with an aggregate fair value of $3.35 billion. Investments in primary debt represent 89.2% of the portfolio at fair value.

About 96.3% of debt securities investments have interest at floating rates. The estimated net yield on debt and income-producing securities was 11.1% of fair value and 11.3% at annualized costs.

Non-accrual investments represent 0.6% of the portfolio at year-end fair value.

As of Dec. 31, 2025, the company had $19.7 million in cash and cash equivalents and $1.76 billion in outstanding principal debt. Undrawn capacity in its revolving credit facility was $1.14 billion, subject to basic borrowing limits.

The average interest rate on outstanding debt was 6.0% in the fourth quarter. The debt-to-equity ratio stands at 1.10x at year-end, compared to 1.15x at September 30, 2025.