Sixth Street Specialty Lending, Inc. (TSLX) AI Stock Analysis

Sixth Street Specialty Lending, Inc. operates as a business development company specializing in providing financial solutions to middle-market companies in the United States. The company offers financing options such as senior secured loans, unsecured loans, mezzanine debt, corporate bonds, and equity securities to support organic growth, acquisitions, market expansion, and restructurings. Its investments span sectors including business services, software & technology, healthcare, energy, consumer & retail, and specialty finance. Sixth Street focuses on companies with enterprise values from $50 million to over $1 billion and EBITDA between $10 million and $250 million, with transaction sizes generally ranging from $15 million to $350 million.

Sixth Street Specialty Lending generated $224.0M in revenue and $211.8M in net income in FY2021. Revenue fell 16.4% to $187.2M in FY2022 before rising 97.6% to $369.8M in FY2023, with net income of $222.0M. In FY2024, revenue fell 2.7% to $359.7M, followed by 0.1% growth to $360.2M in FY2025, alongside an operating margin of 53.5% and net income of $170.5M. Over the trailing twelve months, revenue reached $408.9M with an operating margin of 73.9%. In the latest quarter ended June 30, 2026, quarterly revenue fell 14.9% year-over-year, and quarterly earnings fell 32.1% year-over-year.

As of June 30, 2026, Sixth Street Specialty Lending held $193.6M in cash and short-term investments against $1.92B in total debt, leaving net debt at $1.73B. Total assets stood at $3.54B and shareholders' equity was $1.55B, yielding a debt-to-equity ratio of 1.24 and a current ratio of 0.80. In FY2025, operating cash flow and free cash flow were both $180.3M, while dividends paid totaled $170.3M. The company's share count increased 18.0% over the trailing 5-year period.

TSLX shares closed at $17.03 on October 16, 2026, valuing the company at a trailing P/E of 18.3x and a forward P/E of 10.2x. Relative to the median of its US-listed Financial Services peers, its trailing P/E is above the peer median of 12.1x, while its forward P/E is below the peer median of 10.8x. The stock trades at a price-to-sales multiple of 4.0x versus the peer median of 3.2x, with a price-to-book ratio of 1.1x. Over the past year, TSLX fell 11.8%, lagging the S&P 500 (SPY) return of 16.8%.

Sixth Street Specialty Lending pays a quarterly dividend with an annual forward dividend of $1.68, which corresponds to a dividend yield of 9.86% as of October 16, 2026. The payout ratio stands at 65.5%. The company has paid dividends for 13 consecutive years, though its 5-year annualized dividend growth is -2.3%. Its last ex-dividend date was September 15, 2026.

Wall Street analysts cover TSLX with 6 Strong Buy, 4 Buy, and 1 Hold ratings. The mean price target is $19.77, representing a 16.1% upside from the last close of $17.03. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $388.3M and EPS of $1.74, which implies an EPS decline of 25.4%. TSLX exceeded EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Sixth Street Specialty Lending, Inc. (TSLX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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