Sixth Street Specialty Lending

TSLX Q3 2025 Earnings

Reported Nov 4, 2025 at 4:09 PM ET · SEC Source

Q3 25 EPS

$0.53

BEAT +1.83%

Est. $0.52

Q3 25 Revenue

$109.4M

BEAT +0.71%

Est. $108.7M

vs S&P Since Q3 25

-32.2%

TRAILING MARKET

TSLX -23.8% vs S&P +8.4%

Market Reaction

Did TSLX Beat Earnings? Q3 2025 Results

Sixth Street Specialty Lending posted a modest beat across the board in its third quarter of 2025, with adjusted earnings per share of $0.53 edging past the $0.52 consensus estimate by 1.83%, while revenue of $109.44 million cleared forecasts by 0.71… Read more Sixth Street Specialty Lending posted a modest beat across the board in its third quarter of 2025, with adjusted earnings per share of $0.53 edging past the $0.52 consensus estimate by 1.83%, while revenue of $109.44 million cleared forecasts by 0.71% and surged 29.6% from a year ago. The primary driver behind the quarter's shape was the lower interest rate environment, which compressed the weighted average yield on debt investments to 11.4% from 13.1% in Q3 2024 and pulled total investment income down to $109.44 million from $119.22 million a year earlier; that headwind was meaningfully cushioned, however, by a corresponding drop in net expenses to $57.39 million from $63.60 million, as falling reference rates reduced borrowing costs alongside yield. Origination remained active, with $387.70 million in new commitments and $351.80 million in fundings, while NAV per share held essentially steady at $17.14. The Board declared a Q4 base dividend of $0.46 per share alongside a $0.03 supplemental distribution for Q3, keeping total trailing twelve-month dividends at $2.05 per share.

Key Takeaways

  • Lower reference interest rates reduced both investment income and borrowing costs
  • Higher activity-based fee income partially offset declining interest income
  • Robust origination activity with $387.7 million in new investment commitments
  • Portfolio composition heavily weighted toward first-lien floating rate debt providing income stability
  • Low non-accrual rate at 0.6% of portfolio at fair value
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TSLX YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings