Carlyle Secured Lending

CGBD

Market cap $832M

NEW YORK, April 15, 2026 (GLOBE NEWSWIRE) -- Carlyle Secured Lending, Inc. (“Carlyle Secured Lending”) (NASDAQ: CGBD) will host a conference call at 12:00 p.m. (Eastern Time) on Monday, May 11, 2026 to announce its financial results for the first quarter ended March 31, 2026. The Company will report its quarterly financial results on Monday, May 11, 2026.

Currently, BDCs provide very high-yield opportunities. The fact that additional interest rate cuts are unlikely to happen this year should theoretically support the existing levels. Yet for most BDCs, the damage has already been done.

Carlyle Secured Lending Inc. trades at a 34% discount to NAV, reflecting sector-wide BDC concerns as well as dividend risk. CGBD's portfolio grew 37% year-over-year in Q4'25, driven by record organic loan origination as well as a 2024 merger with another investment company. The firm's net investment income per share declined ~30% year-over-year in Q4 '25, resulting in a CGBD dividend coverage ratio drop to 82.5%. A dividend cut is therefore likely.

Carlyle Secured Lending (CGBD) remains a 'hold' as I anticipate further underperformance due to macro headwinds and likely dividend pressure. CGBD's net investment income has declined for two consecutive quarters, now insufficient to cover the base dividend, with coverage dropping to 82.5%. While CGBD's 0.68x P/NAV and 14% yield are attractive, high floating-rate exposure and sector risks threaten portfolio yields amid expected rate cuts.

Dividend Power's March 2026 list highlights 35 high-yield, low-priced financial stocks, with five 'safer' picks showing free cash flow yields above dividend yields. Analyst forecasts project average net gains of 43.15% by March 2027 for the top ten DiviPower stocks, with MFA Financial leading at a projected 57.75% return. All 35 stocks meet the dogcatcher standard: projected annual dividends from $1K invested exceed their single share prices, signaling deep value opportunities.

Carlyle Secured Lending Inc. (CGBD) Q4 2025 Earnings Call Transcript

Carlyle Secured Lending Inc. trades at a steep 30% P/NAV discount, which is even below the heavily discounted sector average. In Q4, we could observe stable (low) non-accruals at 1.2% FV, and how balanced the exposure to SaaS is. Another positive element was that the base dividend remained unchanged, which now translates to almost 15% yield.

Carlyle Secured Lending, Inc. (CGBD) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.47 per share a year ago.

There are multiple risks for your BDC investments now and three that specifically create risk for certain BDCs. Business development companies offer high yields but carry significant, often misunderstood risks, especially in falling interest rate environments. Volatile interest rates can damage BDC profitability and distributable income, causing dividend cuts and share price declines.

Carlyle Secured Lending (CGBD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.