Wall Street expects a year-over-year decline in earnings on lower revenues when Sixth Street (TSLX - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis business development company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -26.8%.
Revenues are expected to be $96.41 million, down 16.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.59% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Sixth St?For Sixth St, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.45%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Sixth St will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Sixth St would post earnings of $0.49 per share when it actually produced earnings of $0.42, delivering a surprise of -14.29%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Sixth St appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Sixth Street Specialty Lending remains 'best in breed' among BDCs, with management quality, credit discipline, and sector-leading long-term ROE. Despite a Q1 NAV drop and base dividend cut, insider buying and robust credit quality support my 'Buy' rating at current levels. TSLX trades at a modest 1.06x NAV premium, below its historical range, offering high-single-digit upside plus a covered ~10% base yield and supplemental dividends.
NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX) (“TSLX” or “the Company") announced today that it will release its financial results for the second quarter ended June 30, 2026 on Tuesday, August 4, 2026, after the market closes. TSLX invites all interested persons to its webcast / conference call on Wednesday, August 5, 2026 at 8:30 a.m. Eastern Time to discuss these results.
Conference Call Information:
The conference call will be broadcast live in listen-only mode at 8:30 a.m. Eastern Time on the Investor Resources section of TSLX’s website at https://sixthstreetspecialtylending.gcs-web.com/events-and-presentations. Please visit the website to test your connection before the webcast. A recorded version will be available under the same link following the conclusion of the conference call.
Research analysts who wish to participate in the conference call must first register at https://register-conf.media-server.com/register/BIb094b698d91c489080310428d3254a9e. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call.
About Sixth Street Specialty Lending
Sixth Street Specialty Lending is a specialty finance company focused on lending to middle-market companies. The Company seeks to generate current income primarily in U.S.-domiciled middle-market companies through direct originations of senior secured loans and, to a lesser extent, originations of mezzanine loans and investments in corporate bonds and equity securities. The Company has elected to be regulated as a business development company, or a BDC, under the Investment Company Act of 1940 and the rules and regulations promulgated thereunder. The Company is externally managed by Sixth Street Specialty Lending Advisers, LLC, an affiliate of Sixth Street and a Securities and Exchange Commission (“SEC”) registered investment adviser. The Company leverages the deep investment, sector, and operating resources of Sixth Street, a global investment firm with over $130 billion in assets under management and committed capital. For more information, visit the Company’s website at https://sixthstreetspecialtylending.com.
About Sixth Street
Sixth Street is a global investment firm with over $130 billion in assets under management and committed capital. The firm uses its long-term flexible capital, data-enabled capabilities, and One Team culture to develop themes and offer solutions to companies across all stages of growth. Founded in 2009, Sixth Street has more than 750 team members including over 300 investment professionals around the world. For more information, visit https://sixthstreet.com or follow Sixth Street on LinkedIn.
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements,” which relate to future events or the Company’s future performance or financial condition. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. The Company assumes no obligation to update any such forward-looking statements.
More News From Sixth Street Specialty Lending, Inc.
Shares of Blue Owl Capital have plunged amid private-credit fears. (Michael Nagle/Bloomberg)
It seems every day there’s another headline about a meltdown in private credit. Much of the conversation has centered on non-traded business development companies—and while the implications for listed BDCs are less clear, these investment funds appear to be under similar stress.
I spotlight 35 low-priced Dividend Power 'dogs' with robust yields and reasonable valuations, emphasizing six 'safer' picks where free cash flow covers dividends. Analyst forecasts project 41.67% to 96.55% net gains for the top ten Dividend Power stocks by April 2027, with an average estimated return of 59.49%. All 35 Dividend Power stocks show annual dividends from $1,000 invested exceeding their single share prices, underscoring attractive yield-to-price dynamics.
Sixth Street Specialty Lending is upgraded from Hold to Buy, driven by robust dividend coverage and a justifiable 8.4% premium to NAV. TSLX's fundamentals remain solid with a 10% yield, 113% dividend coverage, and strong liquidity, despite recent declines in net investment income and NAV. Portfolio risk remains contained with non-accruals under 1% and a declining leverage ratio, but economic uncertainty and war-related risks warrant caution.
In the article I analyze insider buying activity and acquisition trends across multiple BDCs. The overarching conclusion provides yet another supportive element to my structural BDC bull case. Apart from the macro-level view, I share two key (more nuanced) takeaways which have crystallized from the insider transaction activity of these 20 BDCs.
BDCs have become my area of expertise. While my BDC investment journey has so far been successful, there have been several painful mistakes in the process. In this article, I share my 3 biggest mistakes that have clearly improved my overall BDC investment game.
Tariff volatility, persistent inflation, and layoff waves across tech and financial sectors remind investors that earned income is fragile. A paycheck stops when employment does. Dividend income keeps flowing whether markets are calm or chaotic. Build a portfolio of high-yield securities that generates cash every quarter, and you create a financial cushion independent of your career.
High-yield dividend stocks offer something real estate cannot: instant liquidity. You can exit a position in seconds, redeploy capital across sectors, and still collect income while you decide what to do next. That combination of yield and flexibility is why income investors gravitate toward master limited partnerships, mortgage REITs, and business development companies, each engineered to pass income through to shareholders at scale.
We screened our 24/7 Wall St. dividend equity research database for stocks that pay massive dividends. Combined, these three stocks can generate over $7,902 a year in passive annual income if you invest $29,333 in each at the time of this writing.
Energy Transfer Stock #3: Energy Transfer (NYSE:ET | ET Price Prediction) Yield: ~7% Shares for $29,333: ~2,444 Annual Passive Income: ~$2,035.31 Energy Transfer owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with approximately 140,000 miles of pipeline spanning 44 states across all major U.S. production basins. The partnership’s fee-based model insulates the bulk of its cash flow from commodity price swings. No single business segment contributes more than one-third of consolidated Adjusted EBITDA, spreading risk across natural gas transport, NGL fractionation, crude oil logistics, and its Sunoco LP and USA Compression subsidiaries.
The elevated yield reflects Energy Transfer’s MLP structure, which passes the majority of distributable cash flow directly to unitholders. The most recent quarterly distribution was 33.5 cents per unit, annualizing to $1.34, and the partnership has delivered consistent quarterly increases since 2023. management raised 2026 Adjusted EBITDA guidance to $17.45 to $17.85 billion, driven in part by new Oracle data center agreements to supply approximately 900 MMcf/d and the Desert Southwest Expansion project upsized to 2.3 Bcf/d capacity at up to $5.6 billion.
Sixth Street Specialty Lending Stock #2: Sixth Street Specialty Lending (NYSE:TSLX) Yield: ~9% Shares for $29,333: ~1,222 Annual Passive Income: ~$2,639.97 Sixth Street Specialty Lending focuses on lending to U.S.-domiciled middle-market companies, with a portfolio of 143 companies at an aggregate fair value of approximately $3.35 billion. As a BDC, it must distribute at least 90% of taxable income to shareholders, structurally supporting a high and recurring dividend. First-lien debt represents 89.2% of the portfolio at fair value, and 96.3% of debt investments carry floating rates, providing income resilience in elevated rate environments.
The base quarterly dividend has held at 46 cents per share consistently since Q1 2023, with supplemental payments layered on top. The trailing 12-month dividend totals $2.05 per share. The weighted average yield on debt securities stands at 11.1%, and the non-accrual rate remains low at 0.6% of portfolio at fair value. 54.8% of shares are held by institutions, reflecting broad professional confidence in the income stream.
Starwood Property Trust Stock #1: Starwood Property Trust (NYSE:STWD) Yield: ~11% Shares for $29,333: ~1,467 Annual Passive Income: ~$3,226.63 Starwood Property Trust is a diversified real estate finance company that has deployed over $115 billion since inception, managing a portfolio of over $30 billion across debt and equity investments. It operates across four segments: commercial and residential lending, infrastructure lending, property, and investing and servicing. As a mortgage REIT, it must distribute at least 90% of taxable income, explaining the elevated yield. The $0.48 quarterly dividend has been maintained without interruption for over a decade, one of the strongest consistency records in the REIT space.
The company completed the acquisition of the Fundamental net lease business, a $2.2 billion portfolio with 17+ years of weighted average lease duration and 2.3% annual contractual rent increases. CEO Barry Sternlicht called the acquisition an “earnings generator with reliable cash flows” built for long-term accretion. A $400 million share repurchase program signals management’s confidence in current valuation, and 52.9% institutional ownership underscores broad professional conviction in the income thesis.
Combined, these three positions generate $8,214 in annual passive income on an $88,000 investment, a blended yield of approximately 9%. Starwood Property Trust contributes $2,035.31, Sixth Street Specialty Lending adds $2,639.97 and Energy Transfer rounds out the portfolio with $3,226.63.
Ticker Annual Income Share of Total STWD $2,035.31 Largest contributor TSLX $2,639.97 Middle contributor ET $3,226.63 Base contributor What makes this portfolio compelling is the structural diversity: a midstream MLP with fee-based cash flows, a first-lien focused BDC with floating-rate exposure and a decade-tested mortgage REIT with contractual rent escalators. Reinvesting even a portion of that $7,902 annually compounds the income base over time without adding new capital. That self-reinforcing quality separates high-yield dividend investing from passive income strategies requiring constant attention and redeployment.
Cwm LLC cut its position in shares of Sixth Street Specialty Lending, Inc. (NYSE:TSLX – Free Report) by 31.9% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 92,325 shares of the financial services provider’s stock after selling 43,177 shares during the quarter. Cwm LLC owned 0.10% of Sixth Street Specialty Lending worth $2,005,000 at the end of the most recent reporting period.
A number of other hedge funds have also recently added to or reduced their stakes in TSLX. Harbor Investment Advisory LLC raised its stake in Sixth Street Specialty Lending by 673.2% during the fourth quarter. Harbor Investment Advisory LLC now owns 1,732 shares of the financial services provider’s stock worth $38,000 after acquiring an additional 1,508 shares during the period. Advisory Services Network LLC acquired a new position in Sixth Street Specialty Lending in the third quarter valued at approximately $75,000. Redmont Wealth Advisors LLC bought a new position in shares of Sixth Street Specialty Lending during the third quarter valued at approximately $79,000. State of Alaska Department of Revenue bought a new position in shares of Sixth Street Specialty Lending during the third quarter valued at approximately $98,000. Finally, Farther Finance Advisors LLC raised its position in shares of Sixth Street Specialty Lending by 604.6% during the 3rd quarter. Farther Finance Advisors LLC now owns 4,700 shares of the financial services provider’s stock worth $107,000 after purchasing an additional 4,033 shares during the period. Institutional investors and hedge funds own 70.25% of the company’s stock.
Analysts Set New Price Targets Several analysts recently issued reports on the company. Citizens Jmp cut their price target on Sixth Street Specialty Lending from $25.00 to $24.00 and set a “market outperform” rating on the stock in a report on Wednesday. Weiss Ratings lowered Sixth Street Specialty Lending from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, February 20th. Truist Financial cut their target price on Sixth Street Specialty Lending from $24.00 to $22.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. Wall Street Zen raised shares of Sixth Street Specialty Lending from a “sell” rating to a “hold” rating in a report on Saturday, April 4th. Finally, JPMorgan Chase & Co. lowered their price target on shares of Sixth Street Specialty Lending from $21.00 to $18.50 and set a “neutral” rating for the company in a research report on Friday, March 13th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Sixth Street Specialty Lending currently has an average rating of “Moderate Buy” and an average price target of $21.81.
View Our Latest Stock Analysis on TSLX
Sixth Street Specialty Lending Stock Performance TSLX opened at $18.67 on Friday. The company has a current ratio of 2.83, a quick ratio of 2.83 and a debt-to-equity ratio of 1.08. The business’s 50 day moving average is $18.31 and its 200-day moving average is $20.51. The stock has a market cap of $1.77 billion, a PE ratio of 10.32 and a beta of 0.66. Sixth Street Specialty Lending, Inc. has a twelve month low of $16.99 and a twelve month high of $25.17.
Sixth Street Specialty Lending (NYSE:TSLX – Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The financial services provider reported $0.30 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.20). Sixth Street Specialty Lending had a return on equity of 12.71% and a net margin of 37.99%.The business had revenue of $108.25 million during the quarter, compared to the consensus estimate of $107.11 million. During the same period last year, the company earned $0.61 earnings per share. On average, analysts predict that Sixth Street Specialty Lending, Inc. will post 1.97 earnings per share for the current year.
Sixth Street Specialty Lending Cuts Dividend The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 16th were paid a $0.01 dividend. The ex-dividend date of this dividend was Monday, March 16th. This represents a $0.04 annualized dividend and a dividend yield of 0.2%. Sixth Street Specialty Lending’s dividend payout ratio is presently 101.66%.
Insider Activity at Sixth Street Specialty Lending In other Sixth Street Specialty Lending news, VP Alan Waxman purchased 200,000 shares of the stock in a transaction dated Monday, March 9th. The shares were bought at an average cost of $18.18 per share, with a total value of $3,636,000.00. Following the completion of the acquisition, the vice president owned 500,000 shares of the company’s stock, valued at approximately $9,090,000. This trade represents a 66.67% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders acquired 545,000 shares of company stock worth $9,997,150 over the last quarter. 3.22% of the stock is currently owned by company insiders.
About Sixth Street Specialty Lending (Free Report)
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.
Further Reading Five stocks we like better than Sixth Street Specialty Lending Want to see what other hedge funds are holding TSLX? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Sixth Street Specialty Lending, Inc. (NYSE:TSLX – Free Report).
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Beacon Financial (BBT - Free Report) came out with quarterly earnings of $0.7 per share, missing the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.6 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -15.87%. A quarter ago, it was expected that this bank holding company would post earnings of $0.79 per share when it actually produced earnings of $0.79, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Beacon, which belongs to the Zacks Banks - Northeast industry, posted revenues of $214.72 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 6.2%. This compares to year-ago revenues of $110.44 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Beacon shares have added about 20.7% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for Beacon?While Beacon has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Beacon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.90 on $235.37 million in revenues for the coming quarter and $3.65 on $946.76 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Northeast is currently in the top 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Sixth Street (TSLX - Free Report) , another stock in the broader Zacks Finance sector, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 5.
This business development company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of -15.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Sixth Street's revenues are expected to be $104.57 million, down 10.1% from the year-ago quarter.
SaaS-related fears have driven significant discounts in BDCs, especially those with higher SaaS exposure. Market concerns center on AI disruption, weak SaaS recovery rates, and skepticism around leveraged SaaS LBOs. I believe SaaS default fears are overblown; established SaaS firms with strong moats and cash flow are more resilient.
NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported financial results for the first quarter ended March 31, 2026. Please view a printable version of the 2026 First Quarter Results. Conference Call Information: A conference call to discuss the Company's financial results will be held at 8:30 a.m. Eastern Time on May 6, 2026. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX's website.
Sixth Street (TSLX - Free Report) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -13.85%. A quarter ago, it was expected that this business development company would post earnings of $0.5 per share when it actually produced earnings of $0.52, delivering a surprise of +4%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Sixth St, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $93.4 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 10.68%. This compares to year-ago revenues of $116.35 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sixth St shares have lost about 9% since the beginning of the year versus the S&P 500's gain of 5.2%.
What's Next for Sixth St?While Sixth St has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sixth St was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.48 on $104.14 million in revenues for the coming quarter and $1.97 on $420.4 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 17% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Carlyle Secured Lending, Inc. (CGBD - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 10.
This company is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents a year-over-year change of -14.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Carlyle Secured Lending, Inc.'s revenues are expected to be $43.07 million, up 18.8% from the year-ago quarter.
Sixth Street Specialty Lending, Inc. has just crashed after a very concerning earnings release. TSLX's total interest revenue fell over 19% year-over-year, driving a dividend cut to $0.42 per share and raising concerns about future coverage. Portfolio credit quality deteriorated, with a doubling of worst-performing assets and a threefold increase in 3-rated investments since year-end.
NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE:TSLX) (“TSLX” or the “Company”) announced today that it has priced an underwritten public offering of $300.0 million in aggregate principal amount of 5.650% notes due 2031. The notes will mature on August 15, 2031 and may be redeemed in whole or in part at TSLX's option at any time at par plus a “make-whole” premium, if applicable. TSLX expects to use the net proceeds of the offering to pay down outstanding debt under its rev.
Sixth Street Specialty Lending remains a hold due to declining earnings, a downward-trending NAV, and limited growth catalysts despite a recent dividend reduction. TSLX's premium to NAV has widened to 10.47% but remains below its five-year average, offering relative valuation appeal if BDC market conditions improve. Q1 2026 net investment income fell to $0.42 per share, with interest income and NAV both declining, while non-accruals rose to 1.4% of portfolio value.
Sixth Street Specialty Lending (TSLX) remains a HOLD as Q1-26 results revealed negative clarity: NII missed, dividend was cut, and NAV fell sharply. TSLX's valuation is split—P/NII is historically expensive while P/NAV is historically cheap—reflecting market belief in both income and book value recovery. Portfolio quality concerns persist as Grade 2 watch-list loans rose to 9.4%, but non-accruals improved and leverage remains within target range.
Higher interest rates are generally favorable for BDCs. However, some BDCs can suffer from higher rates that could potentially result in painful dividend cuts. In this article, I explain how we as BDC investors could digest the current rate regime and its implications on dividends.
