Sixth Street Specialty Lending (TSLX) Q2 2026 earnings summary

Executive summary

• Net investment income and net income per share were $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 and 96.1% floating rate exposure.

• Portfolio comprised 137 companies with $3.3B fair value and average investment size of $30.9M.

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

• Portfolio quality remains strong, with non-accruals at 1.3% of fair value and no new additions.

Financial highlights

• Total investment income for Q2 2026 was $97.8 million, down from $115.0 million in Q2 2025.

• Net investment income for Q2 2026 was $40.9 million; net assets at quarter-end were $1.55B.

• Net expenses for Q2 2026 were $55.7 million, mainly from interest expense.

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

• Distributions per share for Q2 2026: $0.42.

Outlook and guidance

• Activity-based fee income and M&A-driven payoffs expected to increase in H2 2026.

• Annualized ROE guidance of 10%-10.5% if portfolio turnover remains below 20%.

• Management expects continued uncertainty in global markets due to inflation, interest rates, and geopolitical risks.

• Company maintains sufficient liquidity and borrowing capacity for ongoing investment activities.

• Target leverage range of 0.90x–1.25x, well below regulatory limit of 2.00x.