Sixth Street (TSLX) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, May 7, 2026 astatine 10:19 AM CDT 50 min read

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DATE

Wednesday, May 6, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Robert Stanley

• Head of Investment Strategy — Ross Bruck

• Chief Financial Officer — Ian Simmonds

Full Conference Call Transcript

Robert Stanley: Thank you, Cami. Good morning, everyone, and convey you for joining us. With maine contiguous is our Head of Investment Strategy, Ross Bruck, and our CFO, Ian Simmonds. Before I begin, I'm pleased to denote that effectual May 21, Mike Fishman volition go Chairman of our Board of Directors, pursuing our erstwhile announcement regarding Josh Easterly's status from the role. Mike is simply a respected manufacture seasoned with decades of acquisition successful recognition investing and plus management. As an aboriginal subordinate of Sixth Street, and a Director of SLX since 2011, including tenure arsenic CEO, helium has been instrumental successful gathering our business.

His operation of heavy manufacture expertise and level recognize him -- marque him uniquely qualified for this position, and we look guardant to his contributions arsenic Chairman. For our call, I'll reappraisal our archetypal 4th highlights and walk it to Ross to sermon concern enactment successful the portfolio. Ian volition reappraisal our fiscal show successful detail, and I volition reason with last remarks earlier opening the telephone to Q&A. Yesterday, we reported archetypal 4th nett concern income of $0.42 per stock oregon an annualized instrumentality connected equity of 9.9%. Inclusive of our question successful just worth of our investments, we reported a nett nonaccomplishment per stock of $0.27.

Our nett nonaccomplishment per stock this 4th was mostly driven by unrealized losses connected our investments arsenic we incorporated the interaction of wider marketplace spreads and little marketplace multiples successful our just worth determinations, much connected that successful a moment. At 4th end, our nett plus worth per stock declined by astir 4.3% from $16.97, which includes the interaction of the Q4 supplemental dividend to $16.24. Of this decline, $0.58 per stock oregon astir 80% was attributable to the question successful just worth from the marketplace inputs, which are unrealized.

That included $0.40 per stock from unrealized losses successful our indebtedness portfolio tied to recognition dispersed widening seen successful the broader marketplace and $0.18 per stock from little marketplace valuations and successful our constricted equity portfolio. $0.08 per stock of the diminution is related to portfolio company-specific show and the remainder from the payoffs and realized gains. Ian volition locomotion done the NAV span successful much detail. These results bespeak a play of market-driven volatility alternatively than a alteration successful the underlying spot of our business. Our portfolio remains healthy. Our equilibrium expanse is strong, and we are good positioned to capitalize connected opportunities arsenic the marketplace continues to evolve.