Sixth Street Specialty Lending Inc

Sixth Street Specialty Lending posted a modest earnings beat in Q1 2025, reporting adjusted net investment income of $0.58 per share, ahead of the $0.55 consensus estimate by 4.77%, even as revenue of $116.35 million came in just 0.30% below expectations despite surging 28.9% year over year. The headline story, however, was a sharp decline in net income per share to $0.39, down from $0.55 in Q4 2024 and $0.53 in Q1 2024, driven by $21.86 million in net unrealized losses tied to widening credit spreads and $11.04 million in foreign currency translation losses on the portfolio. NAV per share slipped to $17.04 from $17.16 at year-end, reflecting the spread-related markdowns. On a brighter note, the company strengthened its balance sheet with a $300 million unsecured notes issuance and extended $1.52 billion in revolving credit commitments to March 2030, while the board declared a Q2 base dividend of $0.46 per share alongside a $0.06 supplemental dividend for Q1.