Sixth Street Specialty Lending, Inc. (NYSE: TSLX) reported full-year 2025 net investment income (NII) of $2.23 per share and net income of $1.81 per share. For the fourth quarter ended Dec. 31, 2025, NII was $0.53 per share, and net income was $0.32 per share.

• Full-year adjusted NII of $2.18 per share; adjusted net income of $1.76 per share
• Q4 adjusted NII of $0.52 per share; adjusted net income of $0.30 per share
• Reported NAV per share of $16.98 at Dec. 31, 2025
• Full-year NII return on equity (ROE) of 13.1%; net income ROE of 10.6%
• 2025 total dividends declared of $2.05 per share
• $1.08 billion in new investment commitments during 2025

Earnings and Return Metrics

Full-year 2025 results included approximately $0.05 per share from the unwind of previously accrued capital gains incentive fee expenses. Excluding this impact, adjusted NII was $2.18 per share, and adjusted net income was $1.76 per share.

For the year, ROE was 13.1% on an NII basis and 10.6% on a net income basis. Adjusted ROE was 12.7% on adjusted NII and 10.3% on adjusted net income.

In the fourth quarter, annualized ROE was 12.5% on NII and 7.4% on net income. Adjusted annualized ROE was 12.0% and 7.0%, respectively.

Net asset value (NAV) per share declined to $16.98 at year-end from $17.14 at Sept. 30, 2025. The company said the change reflected over-earning of the base dividend through NII, offset by the reversal of net unrealized gains and portfolio company-specific events.

Economic return for 2025, defined as the change in NAV plus dividends paid, was 10.9%.

Dividends

The board declared a first-quarter 2026 base dividend of $0.46 per share, payable March 31, 2026, to shareholders of record as of March 16, 2026. It also declared a fourth-quarter supplemental dividend of $0.01 per share, payable March 20, 2026.

For full-year 2025, the company declared base dividends of $1.84 per share and supplemental dividends of $0.21 per share, totaling $2.05 per share.

Portfolio and Investment Activity

New investment commitments totaled $1.08 billion in 2025, compared with $1.24 billion in 2024. Fundings were $894.0 million, while exits and repayments totaled $1.20 billion, resulting in net repayments of $302.1 million.

In the fourth quarter, commitments were $242.4 million and fundings were $196.7 million. Exits and repayments were $234.9 million.

At Dec. 31, 2025, the portfolio comprised 143 portfolio companies with an aggregate fair value of $3.35 billion. First-lien debt investments represented 89.2% of the portfolio at fair value.

Approximately 96.3% of debt investments bore interest at floating rates. The weighted average total yield of debt and income-producing securities was 11.1% at fair value and 11.3% at amortized cost for the year.

Non-accrual investments represented 0.6% of the portfolio at fair value at year-end.

Liquidity and Capital Structure

As of Dec. 31, 2025, the company had $19.7 million in cash and cash equivalents and total principal debt outstanding of $1.76 billion. Undrawn capacity on its revolving credit facility was $1.14 billion, subject to borrowing base limitations.

The weighted average interest rate on debt outstanding was 6.0% in the fourth quarter. The debt-to-equity ratio stood at 1.10x at year-end, compared with 1.15x at Sept. 30, 2025.