Sixth Street Specialty Lending, Inc. (TSLX)

Price$18.38Cached quoteAs of 2026-09-05 01:49 UTC

AI: Fair-priced

Price checkThe shares offer strong income, but already cost more than reported assets.

At the observed quote, the shares trade at about 1.09 times June net assets of $16.24 per share, meaning buyers pay roughly a 9.5% premium to the reported portfolio value. Annualizing the $0.42 quarterly base dividend produces a yield near 9.4%. Annualizing second-quarter net investment income—interest and fees remaining after financing and operating costs—gives about 10.3 times earnings. This is attractive but not plainly cheap because it assumes asset values hold and lending income continues covering the dividend.

Big pictureCore lending income still funds the payout, although lower rates have reduced the cushion.

Investment income fell to $97.8 million in Q2 2026 from $115.0 million a year earlier, mainly because benchmark rates declined. Net investment income was $0.43 per share, barely above the $0.42 base dividend. Full-year revenue fell 6.9% in 2025 and net income fell 8.6%; dividends paid of $170.3 million nearly matched $170.5 million of net income. Operating cash swung to $401.6 million after two negative years because loan funding and repayments distort this measure, so dividend coverage is the cleaner durability test.

Business strengthSenior loans and ample borrowing room cushion losses, but leverage is elevated.

At June 30, 88.3% of the portfolio was first-lien debt, which generally gets repaid before junior claims, while loans not recording interest represented 1.3% of portfolio value. That supports recovery prospects. Debt equaled 1.27 times equity, up from 1.18 times, although liquidity after available unfunded commitments was $1.02 billion. Shares outstanding rose 1.2% year over year and 8.6% since 2023; equity grew only 3.5% over that longer span, making per-share value more important than company growth.

What could change the storyStable borrowers could support the yield, while fresh write-downs would erase the premium.

Bull case: stable asset values and loan income holding above $0.42 a quarter would protect the roughly 9.4% base yield; improving lending terms could rebuild the cushion. Bear case: 96.1% of debt investments carry floating rates, so further rate declines can reduce interest income even as funding costs ease. A rise in non-paying loans above Q2's 1.3%, another fall from $16.24 net assets per share, or net investment income below the dividend would undermine the premium. The valuation therefore requires stability, not rapid growth.

AI: News

Second-quarter income stabilizesLending income covered the base dividend, while reported asset value stopped falling.

On August 4, TSLX reported second-quarter net investment income and net income of $0.43 per share. Net assets remained at $16.24 per share, and loans not recording interest eased to 1.3% from 1.4% of portfolio value, with no new borrowers added. Investment income nevertheless declined about 15% from a year earlier because benchmark rates fell. The quarter stopped the earlier asset-value deterioration, but dividend coverage was only one cent per share.

First-quarter asset write-downsMarket-driven write-downs cut asset value and prompted a smaller quarterly base dividend.

On May 5, the company reported first-quarter net investment income of $0.42 per share but a $0.27 net loss. Net assets per share fell from $16.98 to $16.24, primarily from $0.40 of debt-market write-downs and $0.18 of equity valuation declines. Loans not recording interest rose to 1.4% from 0.6% of portfolio value. The next base dividend was reduced from $0.46 to $0.42. These marks were largely unrealized, but they exposed sensitivity to weaker credit markets.

Long-term funding resetNew debt and a longer credit line removed a near-term refinancing hurdle.

On May 1, TSLX extended the maturity of $1.525 billion in revolving credit commitments to 2031 without changing pricing. On May 7, it priced $300 million of unsecured notes due in 2031 at a 5.65% coupon. It then repaid $300 million of 2.5% notes at their August maturity using cash and revolving-credit borrowings. The longer funding runway reduces refinancing pressure, but the higher new-note coupon could weigh on future lending profit; actual costs also depend on interest-rate swaps and borrowing mix.

Loading local price history

Revenue

2022

2023

2024

2025

Net income

2020

2021

2022

2023

2024

2025

Free cash flow

No reported data

Total cash / debt

CashTotal debt

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020
Revenue	$449.1M	$482.5M	$438.1M	$136.5M	—	—
Operating expenses	$40.3M	$260.0M	$240.5M	$140.8M	$136.0M	$117.3M
Net income	$170.5M	$186.6M	$222.0M	$108.1M	$211.8M	$178.1M
Net profit margin	37.97%	38.66%	50.68%	79.16%	—	—
Basic EPSper basic share	$1.81	$2.03	$2.61	$1.38	$2.93	$2.65
Diluted EPSper diluted share	$1.81	$2.03	$2.61	$1.38	$2.79	$2.65

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

6.32%of listed shares

STRS OHIO6.03M shares · Jun 30, 2026

View holders

Top 20 reported holders of TSLX
Holder	% owned
STRS OHIO	6.32%6.03M shares
Waxman Alan	≈3.42%3.26M shares
Sixth Street Partners Management Company, L.P.	2.85%2.71M shares
Sound Income Strategies, LLC	2.84%2.71M shares
Progeny 3, Inc.	2.60%2.48M shares
UBS Group AG	2.49%2.37M shares
VAN ECK ASSOCIATES CORP	2.48%2.37M shares
OMERS ADMINISTRATION Corp	2.11%2.01M shares
ARES MANAGEMENT LLC	1.47%1.4M shares
Allen Investment Management, LLC	1.44%1.37M shares
WELLS FARGO & COMPANY/MN	1.38%1.32M shares
Cerity Partners LLC	1.27%1.21M shares
Callodine Capital Management, LP	1.23%1.18M shares
Muzinich & Co., Inc.	1.13%1.08M shares
MORGAN STANLEY	1.12%1.07M shares
RIVERNORTH CAPITAL MANAGEMENT, LLC	1.02%969.6K shares
Advisors Capital Management, LLC	0.91%864.11K shares
TECTONIC ADVISORS LLC	0.89%845.2K shares
Sumitomo Mitsui Trust Group, Inc.	0.83%792.45K shares
LSV ASSET MANAGEMENT	0.83%789.1K shares

Percentages use 95.34M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys14$11.35M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 11, 2026Form 4	Bruck Ross AnthonyVice President	BuyCommon Stock	8.0K	$17.76	$142.1K	18.3K
Mar 10, 2026Form 4	Waxman AlanVice President	BuyCommon Stock · indirect	45.0K	$18.47	$831.1K	545.0K
Mar 9, 2026Form 4	Waxman AlanVice President	BuyCommon Stock · indirect	200.0K	$18.18	$3.64M	500.0K
Mar 6, 2026Form 4	Covington P EmeryDirector	BuyCommon Stock	7.5K	$18.35	$137.6K	15.0K
Mar 6, 2026Form 4	Waxman AlanVice President	BuyCommon Stock · indirect	200.0K	$18.42	$3.68M	300.0K