Sixth Street Specialty Lending, Inc.
- Open
- 18.68
- Day high
- 19.10
- Day low
- 18.66
- Prev close
- 18.74
- Volume
- 341K
- Mkt cap
- $1.8B
- P/E (TTM)
- 19.9
- EPS (TTM)
- $0.95
- P/B
- 1.2
- P/S
- 5.2
- Yield
- 4.71%
- Per share
- $0.89
Sixth Street Specialty Lending, Inc. (TSLX) is a Financial Services company listed on NYSE. The stock is down 22% over the past year.
Sixth Street Specialty Lending, Inc. (TSLX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
TSLX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 5, 2026 | $0.42 | $0.43 | +1.8% | $98M | +2.6% |
| May 6, 2026 | $0.49 | $0.42 | -14.3% | $93M | -9.4% |
| Feb 12, 2026 | $0.50 | $0.52 | +4.0% | $92M | -12.1% |
| Nov 4, 2025 | $0.52 | $0.53 | +1.9% | $81M | -24.2% |
| Jul 30, 2025 | $0.53 | $0.56 | +5.7% | $112M | +3.8% |
| Apr 30, 2025 | $0.56 | $0.58 | +3.6% | $114M | -2.4% |
| Feb 13, 2025 | $0.57 | $0.61 | +7.0% | $122M | +2.7% |
| Jul 31, 2024 | $0.58 | $0.58 | +0.0% | $113M | -5.6% |
| May 1, 2024 | $0.59 | $0.58 | -1.7% | $63M | -43.9% |
| Feb 15, 2024 | $0.58 | $0.62 | +6.9% | $111M | -2.0% |
| Nov 2, 2023 | $0.57 | $0.60 | +5.3% | $112M | +2.4% |
| Aug 3, 2023 | $0.55 | $0.59 | +7.3% | $65M | -36.2% |
TSLX insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 13, 2026 | Bruck Ross Anthonyofficer: Vice President | Buy | 8,000 | $17.76 |
| Mar 10, 2026 | Covington P Emerydirector | Buy | 7,500 | $18.35 |
| Mar 9, 2026 | Waxman Alanofficer: Vice President | Buy | 200,000 | $18.42 |
| Mar 9, 2026 | Waxman Alanofficer: Vice President | Buy | 100,000 | $18.46 |
| Mar 4, 2026 | Stiepleman Daviddirector, officer: Vice President | Buy | 20,200 | $17.65 |
| Mar 3, 2026 | Peck Joshuaofficer: Vice President | Buy | 2,840 | $17.59 |
| Mar 2, 2026 | Graf Michaelofficer: See Remarks | Buy | 1,000 | $18.26 |
| Nov 20, 2025 | Stanley Robert J.director, officer: Co-CEO | Buy | 10,000 | $20.85 |
| Nov 22, 2024 | Graf Michaelofficer: See Remarks | Buy | 1,000 | $20.53 |
| Aug 9, 2024 | Graf Michaelofficer: See Remarks | Buy | 500 | $20.45 |
| Aug 7, 2024 | Slotkin Judy Sdirector | Buy | 7,015 | $19.90 |
| May 22, 2024 | Covington P Emerydirector | Buy | 7,500 | $21.50 |
| Mar 15, 2023 | Doddy Hurleydirector | Buy | 2,900 | $17.51 |
| Mar 13, 2023 | Graf Michaelofficer: See Remarks (1) | Buy | 2,000 | $18.55 |
| Mar 13, 2023 | Graf Michaelofficer: See Remarks (1) | Buy | 1,500 | $17.55 |
Source: TSLX SEC Form 4 filings, latest May 13, 2026. For informational purposes only — not investment advice.
See the full TSLX insider & 13F page →Sixth Street Specialty Lending, Inc. company profile
Overview
Sixth Street Specialty Lending, Inc. (NYSE:TSLX) is a business development company founded in 2014 that specializes in providing debt financing to middle-market companies across the United States. The company operates as an externally managed investment fund, leveraging the broader investment platform and expertise of Sixth Street Partners, a prominent alternative asset management firm. Since its initial public offering in March 2014, TSLX has grown to manage approximately $3.5 billion in total investments, positioning itself as a significant player in the private credit market that serves companies typically overlooked by traditional banks.
Business
Sixth Street Specialty Lending operates in the private credit industry, which serves as an alternative financing source for companies that fall between traditional bank lending and public capital markets. The company functions as a business development company (BDC), a specialized investment vehicle regulated under the Investment Company Act of 1940 that provides capital to small and medium-sized businesses. The company's core business involves originating and investing in various types of debt securities, primarily focusing on senior secured loans. These loans typically sit at the top of a company's capital structure, meaning they have first claim on assets and cash flows in case of financial distress. TSLX's investment portfolio consists of approximately 93% first-lien loans, which represent the safest position in the debt hierarchy. The company targets middle-market companies - businesses with enterprise values between $50 million and $1 billion and EBITDA (earnings before interest, taxes, depreciation, and amortization) between $10 million and $250 million. These companies often struggle to access traditional bank financing due to their size, complexity, or growth capital needs, yet they're too small for public bond markets. TSLX offers several types of financing solutions: 1. First-lien senior secured loans (representing the majority of the portfolio), which provide the highest security and priority in repayment. 2. Second-lien loans, which offer higher yields but carry more risk as they're subordinated to first-lien debt. 3. Unitranche loans, which combine first and second-lien characteristics in a single facility. 4. Mezzanine debt, which typically includes equity components and carries higher returns but greater risk. 5. Limited equity investments and structured products. The company focuses on defensive industry sectors, with approximately 82% of its portfolio concentrated in software and business services companies. These sectors are favored because they typically feature recurring revenue models, predictable cash flows, variable cost structures, and pricing power - characteristics that provide stability during economic downturns.
Competitive moat
Sixth Street Specialty Lending's competitive moat is moderately strong but faces increasing challenges from market saturation. The company's primary advantages stem from its association with the broader Sixth Street Partners platform, which employs over 250 investment professionals across various strategies and provides significant deal origination capabilities. This platform approach allows TSLX to access proprietary deal flow and leverage deep industry expertise across multiple sectors. The company's scale and reputation provide meaningful advantages in a relationship-driven business. TSLX can offer borrowers speed, certainty of execution, and the ability to handle large transaction sizes up to $350 million, with syndication capabilities extending to $500 million. The firm's track record of consistent dividend payments and strong credit performance helps attract both borrowers and investors. However, the private credit industry has become increasingly commoditized and competitive. The sector has experienced massive capital inflows, with numerous well-capitalized competitors including large asset managers, insurance companies, and other BDCs all competing for similar deals. This competition has led to spread compression and more borrower-friendly terms, reducing the industry's overall profitability. The company's moat is further challenged by the cyclical nature of credit markets. During economic stress periods, credit losses can quickly erode returns, and the company's floating-rate loan portfolio, while providing interest rate protection, also exposes it to credit risk during economic downturns. Additionally, regulatory changes affecting BDCs or private credit markets could impact the company's operational flexibility and cost structure. The most significant competitive threat comes from traditional banks potentially re-entering the middle-market lending space as regulatory constraints ease, and from direct lending platforms that may offer more efficient capital deployment. The company's ability to maintain its moat depends largely on its continued access to attractive deal flow through the Sixth Street platform and its ability to maintain underwriting discipline during competitive periods.
Risks & safety
The company demonstrates a moderate margin of safety with strong liquidity but faces typical BDC structural risks. • Liquidity position: Strong with $47 million in cash and approximately $1 billion in unfunded revolver capacity, providing substantial flexibility for new investments and operations. • Debt management: Total debt of $1.9 billion against $3.5 billion in assets, with debt-to-equity ratio of 1.22x (within regulatory limits). Weighted average debt maturity of 4.2 years provides reasonable runway before refinancing needs. • Credit quality: Non-accruals represent only 1.2% of portfolio at fair value, indicating strong underwriting discipline. Portfolio weighted average rating of 1.14 suggests high-quality credits. • Valuation metrics: Trading at P/E ratio of 8.8x and price-to-book ratio of 1.31x, representing reasonable valuation relative to book value and earnings power. • Income coverage: Adjusted net investment income provides adequate coverage for current dividend of $1.84 annually, with estimated spillover income of $1.31 per share providing additional buffer. • Interest rate sensitivity: Portfolio is predominantly floating-rate (beneficial in rising rate environment) but creates refinancing risk for borrowers during economic stress. • Concentration risk: Heavy weighting toward software and business services (82% of portfolio) provides defensive characteristics but creates sector concentration risk.
Recent development
Over the past several years, Sixth Street Specialty Lending has undergone significant strategic evolution, adapting to changing market conditions and competitive dynamics. The company has diversified its origination strategy, shifting from a historically sponsor-heavy approach (approximately 65% sponsored deals) to a more balanced mix, with non-sponsored transactions comprising 43-50% of recent investments. This shift has allowed TSLX to access higher-yielding opportunities and reduce dependence on private equity deal flow. The company has strengthened its balance sheet through strategic financing initiatives, including issuing $300 million in 5-year notes in February 2025 and extending its revolving credit facility maturity to March 2030. These moves have extended the average debt maturity to 4.2 years, providing greater financial flexibility and reducing near-term refinancing risks. TSLX has also enhanced its investment platform capabilities, leveraging the broader Sixth Street organization's 250 investment professionals organized by both strategy and industry focus. This has enabled the company to pursue more complex investment opportunities, including situations like Equinox and Alteryx, while maintaining its core focus on defensive software and business services sectors. The company has demonstrated disciplined capital allocation during periods of spread compression, maintaining selectivity and passing on deals that don't meet return requirements. Management has consistently targeted returns on equity of 11.5-12.5% and has been cautious about raising additional capital when it might dilute existing shareholder returns. Recent quarters have shown the company's ability to maintain portfolio yields above 12% despite competitive market conditions, while keeping credit quality strong with non-accruals consistently below 2% of portfolio value.
TSLX company profile · for informational purposes only — not investment advice.
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