NEW YORK--(BUSINESS WIRE)--August 06, 2026--
Goldman Sachs BDC, Inc. ("GSBD", the "Company", "we", "us", or "our") $(GSBD)$ today reported financial results for the second quarter ended June 30, 2026 and filed its Form 10-Q with the U.S. Securities and Exchange Commission.
QUARTERLY HIGHLIGHTS
-- Net investment income per share for the quarter ended June 30, 2026 was
$0.38. Excluding purchase discount amortization per share of $0.01 from
the Merger, adjusted net investment income per share was $0.37 for the
quarter ended June 30, 2026, equating to an annualized net investment
income yield on book value of 12.3%.1 Earnings per share for the quarter
ended June 30, 2026 was $0.21.
-- Net asset value ("NAV") per share as of June 30, 2026 decreased 0.9% to
$12.06 from $12.17 as of March 31, 2026.
-- As of June 30, 2026, the Company's total investments at fair value and
unfunded commitments were $3,627.5 million, comprised of investments in
173 portfolio companies across 39 industries. The investment portfolio
was comprised of 98.6% senior secured debt, including 96.9% in first lien
investments2.
-- During the quarter, the Company had new investment commitments of
approximately $12.9 million of which $5.0 million were funded. Fundings
of previously unfunded commitments for the quarter were $114.3 million
and sales and repayments activity totaled $145.9 million, resulting in
net funded investment activity of $(26.6) million.
-- During the quarter, the Company's 2nd Lien/Senior Secured Debt position
in Chase Industries, Inc. (dba Senneca Holdings), which had previously
been on non-accrual status, was restructured during the period and
subsequently restored to accrual status. The Company's 2nd Lien/Senior
Secured Debt position in Chase Industries, Inc. (dba Senneca Holdings),
which had previously been non-income producing, was also restructured to
an income-producing position and subsequently placed on non-accrual
status. In addition, the Company's 1st Lien/Senior Secured Debt
investment in Thrasio was returned to accrual status following improved
performance. The Company also placed two 2nd Lien/Senior Secured Debt
investments in Wine.com Inc. on non-accrual status due to financial
underperformance. As of June 30, 2026, the Company had certain
investments held in 10 portfolio companies on non-accrual status. As of
June 30, 2026, investments on non-accrual status decreased to 2.9% of the
total investment portfolio at fair value from 3.2% as of March 31, 2026;
and investments on non-accrual status increased to 5.0% from 4.7% of the
total investment portfolio at amortized cost as of March 31, 2026.
-- The Company's ending net debt-to-equity ratio was 1.35x as of June 30,
2026 compared to 1.37x as of March 31, 2026. As of August 6, 2026, our
net debt-to-equity ratio decreased below our target of 1.25x, primarily
due to repayments and sales.
-- As of June 30, 2026, 63.9% of the Company's approximately $1,879.6
million aggregate principal amount of debt outstanding was comprised of
unsecured debt and 36.1% was comprised of secured debt.3
-- The Company's Board of Directors declared a third quarter 2026 Base
Dividend of $0.32 per share payable to shareholders of record as of
September 30, 2026.4
-- The Company's Board of Directors also declared a second quarter 2026
Supplemental Dividend of $0.03 per share payable on or about September
15, 2026 to shareholders of record as of August 31, 2026. Adjusted for
the impact of the Supplemental Dividend related to the second quarter's
earnings, the Company's second quarter adjusted NAV per share was
$12.03.5
-- On May 6, 2026, the Board approved and authorized a new 10b5-1 stock
repurchase program to allow the Company to repurchase up to $75 million
of shares of the Company's common stock, subject to certain limitations.
SELECTED FINANCIAL HIGHLIGHTS
(in $ millions, except per share As of As of
data) June 30, 2026 March 31, 2026
---------------- -----------------
Investment portfolio, at fair
value(2) $ 3,195.2 $ 3,228.9
Total debt outstanding(3) $ 1,879.6 $ 1,920.5
Net assets $ 1,357.7 $ 1,370.0
Ending net debt to equity(11) 1.35x 1.37x
Net asset value per share $ 12.06 $ 12.17
Less: Supplemental Dividend per
share declared post-quarter $ 0.03 $ --
Adjusted net asset value per
share(5) $ 12.03 $ 12.17
(in $ millions, except per Three Months Ended Three Months Ended
share data) June 30, 2026 March 31, 2026
-------------------- --------------------
Total investment income $ 83.7 $ 78.8
Net investment income
after taxes $ 42.2 $ 24.8
Less: Purchase
discount
amortization 0.7 0.1
Adjusted net
investment income
after taxes(1) $ 41.5 $ 24.7
Net realized and
unrealized gains
(losses) $ (18.6) $ (38.4)
Add:
Realized/Unrealized
depreciation from the
purchase discount 0.7 0.1
Adjusted net realized
and unrealized gains
(losses)(1) $ (17.9) $ (38.3)
Net investment income per
share (basic and
diluted) $ 0.38 $ 0.22
Less: Purchase
discount amortization
per share 0.01 --
Adjusted net
investment income per
share(1) $ 0.37 $ 0.22
Weighted average shares
outstanding 112.6 112.6
Total Distribution per
share Recorded During the
Quarter $ 0.32 $ 0.35
Total investment income for the three months ended June 30, 2026 and March 31, 2026 was $83.7 million and $78.8 million, respectively. The increase in total investment income was primarily due to certain investment being restored back to accrual status from non-accrual status as a result of improved performance during the quarter.
Net expenses before taxes for the three months ended June 30, 2026 and March 31, 2026 were $40.7 million and $53.0 million, respectively. Net expenses decreased by $12.3 million, primarily due to a decrease in the incentive fee driven by the performance of the investment portfolio for the twelve quarters ended June 30, 2026, as compared to the twelve quarters ended March 31, 2026.
INVESTMENT ACTIVITY(2)
The following table summarizes investment activity for the three months ended June 30, 2026:
New Investment
Commitments Sales and Repayments
Investment
Type $ Millions % of Total $ Millions % of Total
1st Lien/Senior
Secured Debt $ 11.9 92.2% $ 144.4 99.0%
1st
Lien/Last-Out
Unitranche 1.0 7.8% -- --
2nd Lien/Senior
Secured Debt -- -- 1.5 1.0
Unsecured Debt -- -- -- --
Preferred
Stock -- -- -- --
Common Stock -- -- -- --
---------- ---------- ---------- ----------
Total $ 12.9 100.0% $ 145.9 100.0%
---------- ---------- ---------- ----------
During the three months ended June 30, 2026, new investment commitments were across 7 existing portfolio companies, with 2 new investment commitments made to new portfolio companies. Sales and repayments were primarily driven by the exits, partial repayments, and refinancing of our investments in 8 portfolio companies.
PORTFOLIO SUMMARY(2)
As of June 30, 2026, the Company's investments consisted of the following:
Investments at Fair Value
Investment Type $ Millions % of Total
1st Lien/Senior Secured
Debt $ 2,963.3 92.8%
1st Lien/Last-Out
Unitranche 132.2 4.1
2nd Lien/Senior Secured
Debt 55.1 1.7
Unsecured Debt 8.6 0.3
Preferred Stock 20.2 0.6
Common Stock 15.4 0.5
Warrants 0.4 -- (6 ()
---- ------------- ----------
Total $ 3,195.2 100.0%
---- ------------- ----------
The following table presents certain selected information regarding the Company's investments:
As of
-------------------------------------
June 30, 2026 December 31, 2025
Number of portfolio
companies 173 171
Percentage of performing
debt bearing a floating
rate(7) 98.9% 99.4%
Percentage of performing
debt bearing a fixed
rate(7) 1.1% 0.6%
Weighted average yield on
debt and income producing
investments, at amortized
cost(8) 9.5% 9.9%
Weighted average yield on
debt and income producing
investments, at fair
value(8) 11.3% 10.9%
Weighted average leverage
(net debt/EBITDA)(9) 6.2x 5.9x
Weighted average interest
coverage(9) 2.0x 2.0x
Median EBITDA(9) $73.37 million $ 71.75 million
As of June 30, 2026, the Company had certain investments held in 10 portfolio companies on non-accrual status. As of June 30, 2026, investments on non-accrual status decreased to 2.9% of the total investment portfolio at fair value from 3.2% as of March 31, 2026; and investments on non-accrual status increased to 5.0% from 4.7% of the total investment portfolio at amortized cost as of March 31, 2026.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2026, the Company had $1,879.6 million aggregate principal amount of debt outstanding, comprised of $679.6 million of outstanding borrowings under its senior secured revolving credit facility ("Revolving Credit Facility"), with Truist Bank, as administrative agent, and Bank of America, N.A., as syndication agent, $400.0 million of unsecured notes due 2027, $400.0 million of unsecured notes due 2029 and $400.0 million of unsecured notes due 2030. As of June 30, 2026, the Company had $795.6 million of availability under its Revolving Credit Facility and $50.7 million in cash and cash equivalents.(3,10)
The Company's ending net debt-to-equity leverage ratio was 1.35x for the three months ended June 30, 2026, as compared to 1.37x for the three months ended March 31, 2026. (11)
CONFERENCE CALL
The Company will host an earnings conference call on Friday, August 7, 2026 at 9:00 am Eastern Time. All interested parties are invited to participate in the conference call by dialing (800) 289-0459; international callers should dial +1 (929) 477-0443; conference ID 427709. All participants are asked to dial in approximately 10-15 minutes prior to the call, and reference "Goldman Sachs BDC, Inc." when prompted. For a slide presentation that the Company may refer to on the earnings conference call, please visit the Investor Resources section of the Company's website at www.goldmansachsbdc.com. An archived replay will be available on the Company's webcast link located on the Investor Resources section of the Company's website.
Please direct any questions regarding the conference call to Goldman Sachs BDC, Inc. Investor Relations, via e-mail, at ACF-GSCR@gs.com.
ENDNOTES
1) On October 12, 2020, we completed our merger (the "Merger") with Goldman
Sachs Middle Market Lending Corp. ("MMLC"). The Merger was accounted for
as an asset acquisition in accordance with ASC 805-50, Business
Combinations -- Related Issues. The consideration paid to MMLC's
shareholders was less than the aggregate fair values of the assets
acquired and liabilities assumed, which resulted in a purchase discount
(the "purchase discount"). The purchase discount was allocated to the
cost of MMLC investments acquired by us on a pro-rata basis based on
their relative fair values as of the closing date. Immediately following
the Merger with MMLC, we marked the investments to their respective fair
values and, as a result, the purchase discount allocated to the cost
basis of the investments acquired was immediately recognized as
unrealized appreciation on our Consolidated Statement of Operations. The
purchase discount allocated to the loan investments acquired will
amortize over the life of each respective loan through interest income,
with a corresponding adjustment recorded as unrealized appreciation on
such loan acquired through its ultimate disposition. The purchase
discount allocated to equity investments acquired will not amortize over
the life of such investments through interest income and, assuming no
subsequent change to the fair value of the equity investments acquired
and disposition of such equity investments at fair value, we will
recognize a realized gain with a corresponding reversal of the unrealized
appreciation on disposition of such equity investments acquired.
As a supplement to our financial results reported in accordance with
generally accepted accounting principles in the United States of America
("GAAP"), we have provided, as detailed below, certain non-GAAP financial
measures to our operating results that exclude the aforementioned
purchase discount and the ongoing amortization thereof, as determined in
accordance with GAAP. The non-GAAP financial measures include i) Adjusted
net investment income per share; ii) Adjusted net investment income after
taxes; and iii) Adjusted net realized and unrealized gains (losses). We
believe that the adjustment to exclude the full effect of the purchase
discount is meaningful because it is a measure that we and investors use
to assess our financial condition and results of operations. Although
these non-GAAP financial measures are intended to enhance investors'
understanding of our business and performance, these non-GAAP financial
measures should not be considered an alternative to GAAP. The
aforementioned non-GAAP financial measures may not be comparable to
similar non-GAAP financial measures used by other companies.
2) The discussion of the investment portfolio excludes the investment, if
any, in a money market fund managed by an affiliate of The Goldman Sachs
Group, Inc. (the "Money Market Fund"). As of June 30, 2026, the Company
had an investment of $36.2 million in the Money Market Fund.
3) Total debt outstanding excludes netting of debt issuance costs of $12.8
million and $14.3 million as of June 30, 2026 and March 31, 2026,
respectively. Total debt outstanding also excludes cumulative hedging
adjustments for those borrowings that are designated in a fair value
hedging relationship of $(16.6) million and $(8.1) million as of June 30,
2026 and March 31, 2026, respectively. Starting in the third quarter of
2025, the Company entered into interest rate swaps to more closely align
the interest rates of some of the Company's fixed rate liabilities with
its investment portfolio, which consists of predominately floating rate
loans. The Company designated these interest rate swaps as the hedging
instrument in a qualifying fair value hedge accounting relationship.
4) The $0.32 per share Base Dividend is payable on or about October 28, 2026
to shareholders of record as of September 30, 2026.
5) On February 26, 2025, we announced a distribution framework that is
comprised of a quarterly base distribution declared in the relevant
quarter and a variable supplemental distribution declared in the
following quarter, subject to satisfaction of certain measurement tests
and the approval of our Board.
As a supplement, we have provided a non-GAAP financial measure of our
financial condition that adjusts the net asset value per share for the
declared and unpaid supplemental distribution per share. We believe that
the adjustment to the net asset value per share for the supplemental
dividend is meaningful because it aligns the supplemental distribution to
its relevant quarter earnings.
Although this non-GAAP financial measure is intended to enhance
investors' understanding of our business and performance, this non-GAAP
financial measure should not be considered an alternative to GAAP. The
aforementioned non-GAAP financial measure may not be comparable to
similar non-GAAP financial measures used by other companies.
6) Amount rounds to less than 0.1%.
7) The fixed versus floating composition has been calculated as a percentage
of performing debt investments measured on a fair value basis, including
income producing preferred stock investments and excludes investments, if
any, placed on non-accrual status.
8) Computed based on the (a) annual actual interest rate or yield earned
plus amortization of fees and discounts on the performing debt and other
income producing investments as of the reporting date, divided by (b) the
total performing debt and other income producing investments (excluding
investments on non-accrual) at amortized cost or fair value,
respectively. This calculation excludes exit fees that are receivable
upon repayment of the investment. Excludes the purchase discount and
amortization related to the Merger.
9) For a particular portfolio company, we calculate the level of contractual
indebtedness net of cash ("net debt") owed by the portfolio company and
compare that amount to measures of cash flow available to service the net
debt. To calculate net debt, we include debt that is both senior and pari
passu to the tranche of debt owned by us but exclude debt that is legally
and contractually subordinated in ranking to the debt owned by us. We
believe this calculation method assists in describing the risk of our
portfolio investments, as it takes into consideration contractual rights
of repayment of the tranche of debt owned by us relative to other senior
and junior creditors of a portfolio company. We typically calculate cash
flow available for debt service at a portfolio company by taking net
income before net interest expense, income tax expense, depreciation and
amortization ("EBITDA") for the trailing twelve month period. Weighted
average net debt to EBITDA is weighted based on the fair value of our
debt investments and excludes investments where net debt to EBITDA may
not be the appropriate measure of credit risk, such as cash
collateralized loans and investments that are underwritten and covenanted
based on recurring revenue.
For a particular portfolio company, we also compare that amount of EBITDA
to the portfolio company's contractual interest expense. We believe this
calculation method assists in describing the risk of our portfolio
investments, as it takes into consideration contractual interest
obligations of the portfolio company. Weighted average interest coverage
is weighted based on the fair value of our performing debt investments
and excludes investments where interest coverage may not be the
appropriate measure of credit risk, such as cash collateralized loans and
investments that are underwritten and covenanted based on recurring
revenue.
Median EBITDA is based on our debt investments and excludes investments
where net debt-to-EBITDA may not be the appropriate measure of credit
risk, such as cash collateralized loans and investments that are
underwritten and covenanted based on recurring revenue.
Portfolio company statistics are derived from the financial statements
most recently provided to us of each portfolio company as of the reported
end date. Statistics of the portfolio companies have not been
independently verified by us and may reflect a normalized or adjusted
amount. As of June 30, 2026 and March 31, 2026, investments where net
debt-to-EBITDA may not be the appropriate measure of credit risk
represented 10.3% and 13.7%, respectively, of total debt investments at
fair value.
10) The Company's Revolving Credit Facility has debt outstanding denominated
in currencies other than U.S. Dollars ("USD"). These balances have been
converted to USD using applicable foreign currency exchange rates as of
June 30, 2026. As a result, the Revolving Credit Facility's outstanding
borrowings and the available debt amounts may not sum to the total debt
commitment amount.
11) The ending net debt-to-equity leverage ratio is calculated by using the
total borrowings net of cash and cash equivalents divided by equity as of
June 30, 2026 and excludes unfunded commitments.
Goldman Sachs BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share amounts)
June 30, 2026 December 31,
(Unaudited) 2025
--------------- --------------
Assets
Investments, at fair value
Non-controlled/non-affiliated
investments (cost of
$3,328,296 and $3,285,039) $ 3,146,544 $ 3,171,677
Non-controlled affiliated
investments (cost of $82,680
and $110,127) 48,704 90,044
----------- ----------
Total investments, at fair value
(cost of $3,410,976 and
$3,395,166) $ 3,195,248 $ 3,261,721
Investments in affiliated money
market fund (cost of $36,226 and
$35,724) 36,226 35,724
Cash 14,430 43,211
Interest and dividends receivable 23,886 26,927
Deferred financing costs 15,438 13,245
Other assets 2,576 2,419
----------- ----------
Total assets $ 3,287,804 $ 3,383,247
=========== ==========
Liabilities
Debt (net of debt issuance costs of
$12,777 and $8,169) $ 1,850,308 $ 1,874,620
Interest and other debt expenses
payable 26,279 25,546
Management fees payable 8,182 8,181
Incentive fees payable -- 3,844
Distribution payable 36,022 36,022
Secured borrowings 2,361 3,366
Accrued expenses and other
liabilities 7,002 8,649
----------- ----------
Total liabilities $ 1,930,154 $ 1,960,228
=========== ==========
Commitments and contingencies
(Note 8)
Net assets
Preferred stock, par value $0.001
per share (1,000,000 shares
authorized, no shares issued and
outstanding) $ -- $ --
Common stock, par value $0.001 per
share (200,000,000 shares
authorized, 112,569,067 shares
issued and outstanding as of June
30, 2026 and December 31, 2025) 113 113
Paid-in capital in excess of par 1,879,601 1,879,601
Distributable earnings (loss) (522,064) (456,695)
----------- ----------
Total net assets $ 1,357,650 $ 1,423,019
----------- ----------
Total liabilities and net assets $ 3,287,804 $ 3,383,247
=========== ==========
Net asset value per share $ 12.06 $ 12.64
Goldman Sachs BDC, Inc.
Consolidated Statements of Operations
For the Three Months Ended For the Six Months Ended
--------------------------- ---------------------------
June 30, June 30, June 30, June 30,
2026 2025 2026 2025
------------ ------------ ------------ ------------
Investment income:
From non-controlled/non-affiliated
investments:
Interest income $ 70,345 $ 81,060 $ 139,451 $ 165,264
Payment-in-kind income 4,827 6,808 12,331 16,433
Other income 1,778 865 2,749 1,850
From non-controlled affiliated
investments:
Interest income 3,686 1,269 4,685 2,630
Payment-in-kind income 2,856 711 2,914 1,267
Dividend income 204 208 329 381
Other income 28 49 58 85
----------- ----------- ----------- -----------
Total investment income $ 83,724 $ 90,970 $ 162,517 $ 187,910
=========== =========== =========== ===========
Expenses:
Interest and other debt
expenses $ 30,100 $ 26,416 $ 60,141 $ 54,721
Management fees 8,182 8,408 16,445 17,089
Incentive fees -- 8,526 12,438 15,330
Professional fees 1,117 781 1,954 1,745
Directors' fees 151 207 303 414
Other general and
administrative expenses 1,116 1,273 2,412 2,316
----------- ----------- ----------- -----------
Total expenses $ 40,666 $ 45,611 $ 93,693 $ 91,615
=========== =========== =========== ===========
Net investment income before taxes $ 43,058 $ 45,359 $ 68,824 $ 96,295
=========== =========== =========== ===========
Income tax expense, including
excise tax $ 844 $ 906 $ 1,826 $ 2,228
----------- ----------- ----------- -----------
Net investment income after taxes $ 42,214 $ 44,453 $ 66,998 $ 94,067
=========== =========== =========== ===========
Net realized and unrealized gains
(losses) on investment
transactions:
Net realized gain (loss) from:
Non-controlled/non-affiliated
investments $ 21,376 $ (70,297) $ 21,330 $ (91,867)
Non-controlled affiliated
investments -- (10,922) -- (33,824)
Foreign currency forward
contracts (20) -- (273) --
Foreign currency and other
transactions (52) 225 1,190 464
Net change in unrealized
appreciation (depreciation) from: