TSLX · Sixth Street Specialty Lending, Inc.

Sixth Street Specialty Lending's Q1 2026 results showed net investment income of $0.42 per share, down from $0.53 prior quarter and $0.62 year-ago, yielding 9.9% ROE, while net loss of $0.27 per share reflected -6.5% ROE due to unrealized losses. Total investment income fell to $93.4 million from $116.3 million year-over-year, driven by lower reference rates, offset partially by reduced net expenses of $52.4 million from lower debt interest rates (5.5% vs. 6.4% YoY). NAV per share dropped $0.74 to $16.24, primarily from $0.58 fair value decline ($0.40 debt credit spread widening, $0.18 equity valuations). Portfolio activity included $338.1 million new commitments (up from $242.4 million prior), $134.8 million fundings, and $113.0 million repayments, maintaining 143 companies at $3,313.4 million fair value (89.3% first-lien, 96.3% floating rate debt, 11.1% yield). Non-accrual stable at 1.4% (three names). Balance sheet showed $1,827.4 million debt at 1.18x leverage (average 1.14x), $29.2 million cash, and $1,074.8 million undrawn revolver capacity. Liquidity stood at $701 million burdened for unfunded commitments. On May 1, Revolving Credit Facility amended to extend $1.525 billion maturity to 2031. Board declared sustainable Q2 base dividend of $0.42 per share (down from Q1's $0.46), payable June 30 to June 15 record holders, with supplemental policy intact. Michael Fishman's Chairman appointment effective May 21 brings deep lending expertise as former CEO and Sixth Street Partner.