Sixth Street Specialty

TSLX

Market cap $2.06B

There is a major market disconnect in which there are blue-chip dividend payers offering 11%+ yields right now, despite posting strong fundamentals. I discuss why the market is bearish on these stocks and why I think the fears are overblown. I also share two high-yield stocks that I think are attractive buys at current pricing.

The Fed's dovishness has been the key driver for the BDC sell-off. The idea is that lower interest rates should lead to lower dividends (i.e., BDCs cutting their dividend across the board). While it is a process that takes time, the current data show that many BDCs are well-positioned to safeguard their existing dividends.

Sixth Street Specialty Lending remains resilient with stable NAV and strong dividend coverage, but trades at a 30% premium to NAV. TSLX's portfolio is defensively structured, with 93% in first lien loans and broad industry diversification, supporting reliable income generation. Despite solid fundamentals, TSLX faces limited growth due to a challenging debt environment and slow deployment of new investments.

Sixth Street Specialty Lending, Inc. ( TSLX ) Q3 2025 Earnings Call November 5, 2025 8:30 AM EST Company Participants Cami VanHorn Joshua Easterly - CEO & Chairman of the Board Robert Stanley - President Ian Simmonds - Chief Financial Officer Conference Call Participants Brian Mckenna - Citizens JMP Securities, LLC, Research Division Finian O'Shea - Wells Fargo Securities, LLC, Research Division Melissa Wedel - JPMorgan Chase & Co, Research Division Arren Cyganovich - Truist Securities, Inc., Research Division Kenneth Lee - RBC Capital Markets, Research Division Robert Dodd - Raymond James & Associates, Inc., Research Division Paul Johnson - Keefe, Bruyette, & Woods, Inc., Research Division Mickey Schleien - Clear Street LLC Presentation Operator Good day, and thank you for standing by. Welcome to the Sixth Street Specialty Lending, Inc. Q3 2025 Earnings Conference Call.

While the top- and bottom-line numbers for Sixth St (TSLX) give a sense of how the business performed in the quarter ended September 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

Sixth Street (TSLX) came out with quarterly earnings of $0.53 per share, beating the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.57 per share a year ago.

NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today sent the following letter to its stakeholders in conjunction with its third quarter ended September 30, 2025 financial results. Please view a printable version of the letter here.

NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX) (“TSLX” or “the Company") announced today that President Robert (“Bo”) Stanley has been appointed as Co-Chief Executive Officer of the Company, effective as of November 4, 2025. Mr. Stanley will assume the role of Co-CEO alongside existing CEO, Joshua Easterly. Mr. Easterly will continue to serve as Co-CEO until December 31, 2025, at which point Mr. Stanley will serve as the Company's sole CEO. Mr. Easterly will remain.

NEW YORK--(BUSINESS WIRE)--Sixth Street Specialty Lending, Inc. (NYSE: TSLX, or the “Company”) today reported financial results for the third quarter ended September 30, 2025. Please view a printable version of the 2025 Third 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 November 5, 2025. The conference call will be broadcast live in listen-only mode on the Investor Resources section of TSLX's.

Sixth St (TSLX) 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.