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Nov 5, 2026, 6:04 PM ETFinancial Services

Goldman Sachs BDC, Inc. — Third Quarter 2026 Earnings Summary

GSBDGOLDMAN SACHS BDC INC
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Financial Performance

  • Net investment income per share was $0.32 for the quarter ended September 30, 2026, down from $0.38 in the prior quarter, equating to an annualized net investment income yield on book value of 10.9%.
  • Earnings per share for the quarter ended September 30, 2026, was $(0.04), compared to $0.22 in the same period of the prior year.
  • Total investment income decreased to $75.0 million for the three months ended September 30, 2026, from $83.7 million in the prior quarter, primarily driven by a decrease in portfolio size and non-accrual placements.
  • Net investment income after taxes was $35.3 million for the quarter, down from $42.2 million in the prior quarter.
  • Net realized and unrealized losses were $(39.3) million for the quarter, compared to $(18.6) million in the prior quarter.
  • Net asset value (NAV) per share decreased 3.0% to $11.70 as of September 30, 2026, from $12.06 as of June 30, 2026.
  • Total debt outstanding decreased to $1,661.4 million as of September 30, 2026, from $1,879.6 million as of June 30, 2026.
  • The ending net debt-to-equity ratio improved to 1.21x as of September 30, 2026, from 1.35x as of June 30, 2026.
  • Net expenses before taxes were $38.8 million for the quarter, down from $40.7 million in the prior quarter, driven by lower interest and management fees.
  • The amortized cost of the portfolio decreased to $3,108.11 million as of September 30, 2026, from $3,410.98 million as of June 30, 2026.

Guidance and Future Outlook

  • The Board of Directors declared a fourth quarter 2026 Base Dividend of $0.32 per share, payable on or about January 27, 2027, to shareholders of record as of December 31, 2026.
  • The company announced a 10b5-1 stock repurchase plan allowing for up to $75.0 million in share repurchases if the stock trades below the most recently announced quarter-end NAV per share.

Business Segments and Product Lines

  • The investment portfolio consisted of 168 portfolio companies across 41 industries as of September 30, 2026, with total investments at fair value and unfunded commitments of $3,216.8 million.
  • The portfolio composition was 98.6% senior secured debt, including 96.8% in first lien investments.
  • New investment commitments totaled approximately $40.5 million during the quarter, all in 1st Lien/Senior Secured Debt, with $31.1 million funded.
  • Sales and repayments activity totaled $371.2 million, resulting in net funded investment activity of $(307.5) million.
  • The Company placed investments in CFS Management, LLC (dba Center for Sight Management), MerchantWise Solutions, LLC (dba HungerRush), ATX Networks Corp., and Streamland Media Midco LLC on non-accrual status due to financial underperformance.
  • The investment in Chase Industries, Inc. (dba Senneca Holdings) was restored to accrual status following improved performance.
  • As of September 30, 2026, 11 portfolio companies were on non-accrual status, representing 4.2% of the total investment portfolio at fair value (up from 2.9% in June 2026) and 7.3% at amortized cost (up from 5.0% in June 2026).
  • 98.2% of performing debt bore a floating rate as of September 30, 2026, compared to 99.4% as of December 31, 2025.

Market and Competitive Landscape

  • The weighted average yield on debt and income-producing investments at fair value was 11.9% as of September 30, 2026, compared to 10.9% as of December 31, 2025.
  • The weighted average leverage (net debt/EBITDA) of the portfolio increased to 6.3x as of September 30, 2026, from 5.9x as of December 31, 2025.
  • The weighted average interest coverage of the portfolio was 1.9x as of September 30, 2026, down from 2.0x as of December 31, 2025.
  • Median EBITDA of portfolio companies was $77.51 million as of September 30, 2026, up from $71.75 million as of December 31, 2025.

Risks and Challenges

  • The increase in non-accrual investments to 4.2% of the portfolio at fair value and 7.3% at amortized cost highlights credit performance challenges.
  • The decrease in total investment income was attributed to the reduction in portfolio size and the impact of placing specific investments on non-accrual status.
  • Forward-looking statements indicate risks related to future events, market conditions, and the ability to predict outcomes accurately.

Management Commentary and Tone

  • Management noted that the decrease in net expenses was primarily due to lower average daily borrowing and a decrease in management fees driven by lower gross assets.
  • The company highlighted the restoration of accrual status for Chase Industries as a positive development amidst the placement of other investments on non-accrual.

Other Key Points

  • During the three months ended September 30, 2026, the Company repurchased approximately 1.5 million shares for $15.0 million under its 10b5-1 stock repurchase plan.
  • As of September 30, 2026, the Company had $1,013.1 million of availability under its Revolving Credit Facility and $83.5 million in cash and cash equivalents.
  • The Company's debt structure included $461.4 million in borrowings under its senior secured revolving credit facility, $400.0 million of unsecured notes due 2027, $400.0 million due 2029, and $400.0 million due 2030.
  • 72.2% of the aggregate principal amount of debt outstanding was unsecured, while 27.8% was secured.
  • The Company holds an investment of $74.9 million in a money market fund managed by an affiliate of The Goldman Sachs Group, Inc.
  • The purchase discount allocated to loan investments acquired in the 2020 merger with Goldman Sachs Middle Market Lending Corp. has been fully amortized as of September 30, 2026.