Sixth Street (TSLX) Q2 Income Beats 4%

Sixth Street Specialty Lending (NYSE:TSLX), a business development company focused on lending to medium-sized U.S. firms, reported its second quarter 2025 results on July 30, 2025. The standout news was that GAAP total investment income beat Wall Street expectations, with non-GAAP EPS at $0.56, compared to the $0.53 consensus and GAAP revenue at $115.0 million, exceeding the $110.94 million estimate. However, Revenue and EPS both declined year-over-year. The quarter displayed continued solid portfolio quality, maintained net asset value, and steady dividends, but also a noticeable contraction in portfolio size and declining investment yields. Source: Analyst estimates for the quarter provided by FactSet. Sixth Street Specialty Lending The company is a business development company, or BDC, operating under rules designed to channel capital to small and medium-sized businesses that often struggle to obtain traditional bank loans. It generates revenue primarily from interest, fees, and equity investments in U.S.-based middle-market firms with annual EBITDA typically ranging from $10 million to $250 million, though it may occasionally invest in larger or smaller companies. The company maintains a focus on safe, first-lien lending, which means its loans are secured and placed first in line for repayment if a borrower runs into trouble.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool