Carlyle Secured Lending (CGBD) Q1 2026 earnings summary

Executive summary

• Generated $0.36 per share of net investment income (NII) on both GAAP and adjusted basis for Q1 2026, with NAV per share declining to $15.89 from $16.26 due to unrealized losses from widening spreads and market volatility.

• Portfolio fair value was $2.3 billion, diversified across 171 companies and 248 investments, with 83% in first lien debt and 94% senior secured exposure.

• Non-accrual investments decreased to 1.0% of portfolio at amortized cost and 0.9% at fair value, down from 1.2% in the prior period.

• Repurchased $18.5 million of shares in Q1 2026 at a 26% discount to prior NAV, resulting in $0.09 per share of NAV accretion.

• Declared a Q2 2026 dividend of $0.35 per share, supported by $0.70 per share in spillover income and a reset dividend policy, with flexibility for supplemental dividends.

Financial highlights

• Total investment income for Q1 2026 was $64.1 million, with total expenses of $38.9 million, resulting in net investment income of $25.2 million.

• Net realized and unrealized losses were $29.4 million, leading to a net decrease in net assets from operations of $4.2 million.

• Adjusted net investment income per share was $0.36, and net income (loss) per share was $(0.06) for Q1 2026.

• NAV at quarter-end was $1.12 billion, or $15.89 per share.

• Basic and diluted EPS was $(0.06), compared to $0.25 in Q1 2025.

Outlook and guidance

• Management expects improved yields and stronger earnings power due to favorable investment environment and wider spreads.

• Continued support for the dividend with significant spillover income and ongoing share repurchases.

• Board approved an additional $100 million for the stock repurchase program, increasing the total to $300 million.

• Liquidity remains strong at $641.9 million, supporting ongoing investment and repurchase activity.

• Focus remains on middle market secured lending and disciplined capital deployment.