Sixth Street Specialty Lending (NYSE:TSLX) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Sixth Street Specialty Lending (NYSE:TSLX) announced its earnings results on Thursday. The financial services provider reported $0.52 EPS for the quarter, beating the consensus estimate of $0.50 by $0.02, Zacks reports. Sixth Street Specialty Lending had a return on equity of 12.70% and a net margin of 37.99%.The company had revenue of $108.25 million for the quarter, compared to analyst estimates of $107.11 million. During the same quarter in the prior year, the company earned $0.61 EPS.

Sixth Street Specialty Lending Price Performance

Sixth Street Specialty Lending stock opened at $19.24 on Friday. Sixth Street Specialty Lending has a 52 week low of $18.58 and a 52 week high of $25.17. The company’s 50 day moving average price is $21.64 and its two-hundred day moving average price is $22.42. The stock has a market cap of $1.82 billion, a P/E ratio of 10.63 and a beta of 0.70. The company has a quick ratio of 4.73, a current ratio of 4.73 and a debt-to-equity ratio of 1.13.

Sixth Street Specialty Lending Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be paid a $0.01 dividend. The ex-dividend date is Monday, March 16th. This represents a $0.04 annualized dividend and a yield of 0.2%. Sixth Street Specialty Lending’s dividend payout ratio (DPR) is 90.20%.

Sixth Street Specialty Lending News Roundup

Here are the key news stories impacting Sixth Street Specialty Lending this week:

• Positive Sentiment: Q4 results slightly beat expectations — reported EPS of $0.52 vs. $0.50 consensus and revenue of $108.25M vs. $107.11M; high net margin (41.2%) and solid ROE (13.2%) provide fundamental support. Sixth Street Specialty Lending, Inc. Reports Full Year and Fourth Quarter 2025 Earnings Results; Declares a First Quarter Base Dividend Per Share of $0.46, and a Fourth Quarter Supplemental Dividend Per Share of $0.01
• Positive Sentiment: Management declared a Q1 base dividend of $0.46 and a Q4 supplemental dividend of $0.01 (supplemental ex-dividend/record dates noted), supporting income-focused holders. Dividend / Press Release
• Neutral Sentiment: Company released an earnings slide deck and held a conference call; investors can review the presentation and full transcript for portfolio composition, fee income and credit-quality commentary to assess forward earnings drivers. Q4 Results – Earnings Call Presentation Earnings Call Transcript
• Negative Sentiment: EPS declined year-over-year (from $0.61 in prior-year quarter to $0.52), signaling margin/earnings pressure despite the beat; that deterioration can weigh on valuation for income-oriented BDC investors. Zacks: Q4 Earnings and Revenues Top Estimates
• Negative Sentiment: Broader BDC-sector cooling and investor concerns about credit/fee trends were highlighted by market commentary, which may have amplified downside despite the modest beat. Investing.com: Earnings Under Pressure as BDC Sector Cools
• Negative Sentiment: Technical/flow pressure: heavy intraday volume and shares trading nearer the 52-week low and below the 50/200-day averages increase downside risk and may prompt short-term selling by technical traders. MarketBeat TSLX Quote & Stats

Analyst Ratings Changes

A number of research analysts recently issued reports on TSLX shares. Weiss Ratings reiterated a “buy (b-)” rating on shares of Sixth Street Specialty Lending in a research report on Wednesday, December 24th. Keefe, Bruyette & Woods lowered their price objective on shares of Sixth Street Specialty Lending from $24.00 to $23.00 and set an “outperform” rating on the stock in a report on Thursday, November 6th. Wells Fargo & Company reduced their price objective on shares of Sixth Street Specialty Lending from $24.00 to $22.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Finally, Royal Bank Of Canada decreased their target price on shares of Sixth Street Specialty Lending from $25.00 to $24.00 and set an “outperform” rating for the company in a research report on Wednesday, November 19th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, Sixth Street Specialty Lending has an average rating of “Buy” and an average price target of $23.50.

Insider Buying and Selling

In other Sixth Street Specialty Lending news, CEO Robert J. Stanley acquired 10,000 shares of Sixth Street Specialty Lending stock in a transaction on Tuesday, November 18th. The stock was purchased at an average price of $20.85 per share, for a total transaction of $208,500.00. Following the purchase, the chief executive officer directly owned 24,907 shares of the company’s stock, valued at $519,310.95. This trade represents a 67.08% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 3.22% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in TSLX. CANADA LIFE ASSURANCE Co increased its stake in shares of Sixth Street Specialty Lending by 3.5% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 164,256 shares of the financial services provider’s stock worth $3,573,000 after purchasing an additional 5,543 shares during the last quarter. Callodine Capital Management LP grew its holdings in Sixth Street Specialty Lending by 26.5% during the fourth quarter. Callodine Capital Management LP now owns 1,101,992 shares of the financial services provider’s stock valued at $23,935,000 after purchasing an additional 230,559 shares during the period. Stifel Financial Corp increased its position in Sixth Street Specialty Lending by 2.4% in the fourth quarter. Stifel Financial Corp now owns 626,976 shares of the financial services provider’s stock worth $13,618,000 after buying an additional 14,449 shares during the last quarter. State Street Corp raised its stake in shares of Sixth Street Specialty Lending by 23.9% in the fourth quarter. State Street Corp now owns 114,263 shares of the financial services provider’s stock valued at $2,482,000 after buying an additional 22,055 shares during the period. Finally, Wells Fargo & Company MN lifted its position in shares of Sixth Street Specialty Lending by 3.7% during the 4th quarter. Wells Fargo & Company MN now owns 1,270,816 shares of the financial services provider’s stock valued at $27,602,000 after buying an additional 45,870 shares during the last quarter. 70.25% of the stock is currently owned by hedge funds and other institutional investors.

Sixth Street Specialty Lending Company Profile

Sixth Street Specialty Lending Inc (NYSE: TSLX) is a closed-end, externally managed business development company that provides flexible debt financing solutions to middle-market companies. The fund primarily targets senior secured loans, unitranche facilities, mezzanine debt, second-lien financings and equity co-investment opportunities. By structuring tailored capital solutions, Sixth Street Specialty Lending seeks to support growth initiatives, recapitalizations and refinancings across a diverse set of industries, including technology, healthcare and business services.

As an affiliate of Sixth Street Partners, a global alternative investment firm, the company leverages the broader platform’s credit research, operational expertise and industry relationships.