Business development company Sixth Street Specialty Lending (NYSE: TSLX) reported Q4 CY2025 results topping the market’s revenue expectations, but sales fell by 12.5% year on year to $108.2 million. Its non-GAAP profit of $0.30 per share was 40.4% below analysts’ consensus estimates.
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Sixth Street Specialty Lending (TSLX) Q4 CY2025 Highlights:
- Revenue: $108.2 million vs analyst estimates of $106.1 million (12.5% year-on-year decline, 2% beat)
- Adjusted EPS: $0.30 vs analyst expectations of $0.50 (40.4% miss)
- Market Capitalization: $1.9 billion
Company Overview
Originally launched as TPG Specialty Lending before rebranding in 2020, Sixth Street Specialty Lending (NYSE: TSLX) is a business development company that provides customized financing solutions to middle-market companies across various industries.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Sixth Street Specialty Lending’s 10.7% annualized revenue growth over the last five years was decent. Its growth was slightly above the average financials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Sixth Street Specialty Lending’s recent performance shows its demand has slowed as its annualized revenue growth of 1.2% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Sixth Street Specialty Lending’s revenue fell by 12.5% year on year to $108.2 million but beat Wall Street’s estimates by 2%.
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Key Takeaways from Sixth Street Specialty Lending’s Q4 Results
It was encouraging to see Sixth Street Specialty Lending beat analysts’ revenue expectations this quarter. The stock traded up 1.1% to $20.34 immediately following the results.
Big picture, is Sixth Street Specialty Lending a buy here and now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
