NEW YORK--(BUSINESS WIRE)--February 26, 2026--
Goldman Sachs BDC, Inc. ("GSBD", the "Company", "we", "us", or "our") $(GSBD)$ today reported financial results for the fourth quarter and year ended December 31, 2025 and filed its Form 10-K with the U.S. Securities and Exchange Commission.
QUARTERLY HIGHLIGHTS
-- Net investment income and adjusted net investment income per share for
the quarter ended December 31, 2025 was $0.37, equating to an annualized
net investment income yield on book value of 11.7%.1 Earnings per share
for the quarter ended December 31, 2025 was $0.21.
-- Net asset value ("NAV") per share as of December 31, 2025 decreased
0.9% to $12.64 from $12.75 as of September 30, 2025.
-- As of December 31, 2025, the Company's total investments at fair value
and commitments were $3,898.2 million, comprised of investments in 171
portfolio companies across 40 industries. The investment portfolio was
comprised of 98.4% senior secured debt, including 96.9% in first lien
investments.
-- During the quarter, the Company had new investment commitments of
approximately $394.9 million of which $230.2 million were funded.
Fundings of previously unfunded commitments for the quarter were $90.9
million and sales and repayments activity totaled $251.6 million,
resulting in net funded investment activity of $69.5 million.
-- During the quarter, the Company's 1st Lien/Senior Secured Debt position
in Pluralsight, Inc. was placed on non-accrual status due to financial
underperformance. As of December 31, 2025, the Company had certain
investments held in nine portfolio companies on non-accrual status. As of
December 31, 2025, investments on non-accrual status amounted to 1.9% and
2.8% of the total investment portfolio at fair value and amortized cost,
respectively.
-- The Company's ending net debt-to-equity ratio was 1.27x as of December
31, 2025 compared to 1.17x as of September 30, 2025.
-- As of December 31, 2025, 68.9% of the Company's approximately $1,885.8
million aggregate principal amount of debt outstanding was comprised of
unsecured debt and 31.1% was comprised of secured debt.3
-- On January 15, 2026, the Company borrowed approximately $505.0 million
under the Truist Revolving Credit Facility and used the proceeds,
together with cash on hand, to repay the 2026 Notes plus accrued and
unpaid interest. On January 28, 2026, the Company also closed an offering
of $400.0 million aggregate principal amount of 5.100% unsecured notes
due 2029.
-- The Company's Board of Directors declared a first quarter 2026 Base
Dividend of $0.32 per share payable to shareholders of record as of March
31, 2026.4
-- The Company's Board of Directors also declared a fourth quarter 2025
Supplemental Dividend of $0.03 per share payable on or about March 20,
2026 to shareholders of record as of March 9, 2026. Adjusted for the
impact of the Supplemental Dividend related to the fourth quarter's
earnings, the Company's fourth quarter adjusted NAV per share was
$12.61.5
-- On June 13, 2025, the Company entered into a 10b5-1 stock repurchase
plan, which allows the Company to repurchase up to $75.0 million of
shares of the Company's common stock if the common stock trades below the
most recently announced quarter-end NAV per share, subject to certain
limitations. During the three months ended December 31, 2025, the Company
repurchased 1,544,029 shares for $15.0 million, inclusive of commission
and direct acquisition costs.
SELECTED FINANCIAL HIGHLIGHTS
(in $ millions, except per As of As of
share data) December 31, 2025 September 30, 2025
Investment portfolio, at
fair value(2) $ 3,261.7 $ 3,196.9
Total debt outstanding(3) $ 1,885.8 $ 1,853.0
Net assets $ 1,423.0 $ 1,454.8
Ending net debt to
equity(11) 1.27x 1.17x
Net asset value per share $ 12.64 $ 12.75
Less: Supplemental
Dividend per share
declared post-quarter $ 0.03 $ 0.04
Adjusted net asset value
per share(5) $ 12.61 $ 12.71
(in $ millions, except Three Months Ended Three Months Ended
per share data) December 31, 2025 September 30, 2025
Total investment income $ 86.1 $ 91.6
Net investment income
after taxes $ 42.2 $ 45.3
Less: Purchase
discount
amortization $ 0.4 0.5
Adjusted net
investment income
after taxes(1) $ 41.8 $ 44.8
Net realized and
unrealized gains
(losses) $ (18.5) $ (20.6)
Add:
Realized/Unrealized
depreciation from the
purchase discount 0.4 0.5
Adjusted net realized
and unrealized gains
(losses)(1) $ (18.1) $ (20.1)
Net investment income per
share (basic and
diluted) $ 0.37 $ 0.40
Less: Purchase
discount amortization
per share $ -- --
Adjusted net
investment income per
share(1) $ 0.37 $ 0.40
Weighted average shares
outstanding 113.5 114.4
Total Quarterly
Distributions per share $ 0.36 $ 0.51
Total investment income for the three months ended December 31, 2025 and September 30, 2025 was $86.1 million and $91.6 million, respectively. The decrease in total investment income was primarily due to a decline in base interest rates and tightening of credit spreads.
Net expenses before taxes for the three months ended December 31, 2025 and September 30, 2025 were $43.0 million and $45.4 million, respectively. Net expenses decreased by $2.4 million, primarily driven by a decrease in incentive fees, partially offset by higher interest and other debt expenses.
INVESTMENT ACTIVITY(2)
The following table summarizes investment activity for the three months ended December 31, 2025:
New Investment
Commitments Sales and Repayments
----------------------- -----------------------
Investment
Type $ Millions % of Total $ Millions % of Total
-------------- ----------- ---------- ----------- ----------
1st Lien/Senior
Secured Debt $ 330.6 83.7% $ 237.0 94.2%
1st
Lien/Last-Out
Unitranche 64.3 16.3 14.6 5.8
2nd
Lien/Senior
Secured Debt -- -- -- --
Unsecured Debt -- -- -- --
Preferred
Stock -- -- -- --
Common Stock -- -- -- --
---------- ---------- ---------- ----------
Total $ 394.9 100.0% $ 251.6 100.0%
---------- ---------- ---------- ----------
During the three months ended December 31, 2025, new investment commitments were across 7 new portfolio companies and 20 existing portfolio companies. Sales and repayments were primarily driven by the exit and refinancing of our investments in 13 portfolio companies.
PORTFOLIO SUMMARY(2)
As of December 31, 2025, the Company's investments consisted of the following:
Investments at Fair Value
------------------------------
Investment Type $ Millions % of Total
----------------------------- ------------------ ----------
1st Lien/Senior Secured Debt $ 3,028.8 92.8%
1st Lien/Last-Out Unitranche 135.1 4.1
2nd Lien/Senior Secured Debt 47.9 1.5
Unsecured Debt 8.5 0.3
Preferred Stock 26.4 0.8
Common Stock 14.7 0.5
Warrants 0.3 -- (6)
---- ------------ ----------
Total $ 3,261.7 100.0%
---- ------------ ----------
The following table presents certain selected information regarding the Company's investments:
As of
-----------------------------------------
December 31, 2025 December 31, 2024
----------------- -----------------
Number of portfolio
companies 171 164
Percentage of
performing debt
bearing a floating
rate(7) 99.4% 99.4%
Percentage of
performing debt
bearing a fixed
rate(7) 0.6% 0.6%
Weighted average yield
on debt and income
producing
investments, at
amortized cost(8) 9.9% 11.2%
Weighted average yield
on debt and income
producing
investments, at fair
value(8) 10.9% 14.1%
Weighted average
leverage (net
debt/EBITDA)(9) 5.9x 6.2x Weighted average interest coverage(9) 2.0x 1.8x Median EBITDA(9) $ 71.75 million $ 66.14 million
During the quarter, one investment was placed on non-accrual status due to financial underperformance. As of December 31, 2025, investments on non-accrual status amounted to 1.9% and 2.8% of the total investment portfolio at fair value and amortized cost, respectively.
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2025, the Company had $1,885.8 million aggregate principal amount of debt outstanding, comprised of $585.8 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, $500.0 million of unsecured notes due 2026, $400.0 million of unsecured notes due 2027 and $400.0 million of unsecured notes due 2030. As of December 31, 2025, the Company had $1,110.0 million of availability under its Revolving Credit Facility and $78.9 million in cash and cash equivalents.(3,10)
The Company's ending net debt-to-equity leverage ratio was 1.27x for the three months ended December 31, 2025, as compared to 1.17x for the three months ended September 30, 2025. (11)
CONFERENCE CALL
The Company will host an earnings conference call on Friday, February 27, 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 gscr-ir@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 Goldman Sachs
Group, Inc. (the "Money Market Fund"). As of December 31, 2025, the
Company had an investment of $35.7 million in the Money Market Fund.
(3) Total debt outstanding excludes netting of debt issuance costs of $8.2
million and $9.6 million as of December 31, 2025 and September 30,
2025, respectively. Total debt outstanding also excludes cumulative
hedging adjustments for those borrowings that are designated in a fair
value hedging relationship of $(3.0) million and $(2.6) million as of
December 31, 2025 and September 30, 2025, respectively. 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 April 28, 2026
to shareholders of record as of March 31, 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 December 31, 2025 and September 30, 2025, investments
where net debt-to-EBITDA may not be the appropriate measure of credit
risk represented 14.2% and 14.7%, 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 December 31, 2025. 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 December 31, 2025 and excludes unfunded commitments.
Goldman Sachs BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share amounts)
December 31, December 31,
2025 2024
-------------- ---------------
Assets
Investments, at fair value
Non-controlled/non-affiliated
investments (cost of
$3,285,039 and $3,533,627) $ 3,171,677 $ 3,368,503
Non-controlled affiliated
investments (cost of $110,127
and $139,955) 90,044 106,755
---------- -----------
Total investments, at fair value
(cost of $3,395,166 and
$3,673,582) $ 3,261,721 $ 3,475,258
Investments in affiliated money
market fund (cost of $35,724 and
$25,238) 35,724 25,238
Cash 43,211 61,795
Interest and dividends receivable 26,927 28,092
Deferred financing costs 13,245 11,897
Other assets 2,419 1,103
---------- -----------
Total assets $ 3,383,247 $ 3,603,383
========== ===========
Liabilities
Debt (net of debt issuance costs
of $8,169 and $8,176) $ 1,874,620 $ 1,926,452
Interest and other debt expenses
payable 25,546 21,289
Management fees payable 8,181 8,780
Incentive fees payable 3,844 6,330
Distribution payable 36,022 52,784
Unrealized depreciation on
derivatives -- 38
Secured borrowings 3,366 2,920
Accrued expenses and other
liabilities 8,649 12,090
---------- -----------
Total liabilities $ 1,960,228 $ 2,030,683
========== ===========
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 and
117,297,222 shares issued and
outstanding as of December 31,
2025 and December 31, 2024,
respectively) 113 117
Paid-in capital in excess of par 1,879,601 1,946,253
Distributable earnings (loss) (456,695) (373,670)
---------- -----------
Total net assets $ 1,423,019 $ 1,572,700
---------- -----------
Total liabilities and net assets $ 3,383,247 $ 3,603,383
========== ===========
Net asset value per share $ 12.64 $ 13.41
Goldman Sachs BDC, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
For the Years Ended December 31,
------------------------------------------
2025 2024 2023
------------ ------------ ------------
Investment income:
From
non-controlled/non-affiliated
investments:
Interest income $ 322,663 $ 374,200 $ 414,711
Payment-in-kind income 30,413 50,094 33,662
Other income 4,172 3,733 3,099
Dividend income -- 2 --
From non-controlled affiliated
investments:
Interest income 4,882 3,912 2,286
Dividend income 785 1,970 908
Payment-in-kind income 2,488 335 207
Other income 165 128 41
----------- ----------- -----------
Total investment income $ 365,568 $ 434,374 $ 454,914
=========== =========== ===========
Expenses:
Interest and other debt
expenses $ 111,558 $ 113,718 $ 111,302
Management fees 33,449 35,232 35,470
Incentive fees 26,224 17,212 49,417
Professional fees 3,324 4,998 3,536
Directors' fees 828 828 823
Other general and
administrative expenses 4,592 4,535 4,269
----------- ----------- -----------
Total expenses $ 179,975 $ 176,523 $ 204,817
=========== =========== ===========
Fee waivers $ -- $ -- $ (1,986)
----------- ----------- -----------
Net expenses $ 179,975 $ 176,523 $ 202,831
=========== =========== ===========
Net investment income before taxes $ 185,593 $ 257,851 $ 252,083
=========== =========== ===========
Income tax expense, including
excise tax $ 4,026 $ 5,298 $ 4,842
----------- ----------- -----------
Net investment income after taxes $ 181,567 $ 252,553 $ 247,241
=========== =========== ===========
Net realized and unrealized gains
(losses) on investment
transactions:
Net realized gain (loss) from:
Non-controlled/non-affiliated
investments $ (89,292) $ (155,950) $ (49,409)
Non-controlled affiliated
investments (33,824) (2,015) --
Controlled affiliated
investments -- -- (22,366)
Foreign currency forward
contracts -- (703) --
Foreign currency and other
transactions 506 5,236 404
Net change in unrealized
appreciation (depreciation)
from:
Non-controlled/non-affiliated
investments 51,535 (35,110) 5,529
Non-controlled affiliated
investments 13,117 (1,947) (2,532)
Controlled affiliated
investments -- -- 22,366
Foreign currency forward
contracts (214) 688 (242)
Foreign currency translations
and other transactions (4,048) 299 (4,482)
----------- ----------- -----------
Net realized and unrealized gains
(losses) $ (62,220) $ (189,502) $ (50,732)
=========== =========== ===========
(Provision) benefit for taxes on
realized gain/loss on
investments $ (80) $ (492) $ (1,210)
(Provision) benefit for taxes on
unrealized
appreciation/depreciation on
investments -- 308 575
----------- ----------- -----------
Net increase (decrease) in net
assets from operations $ 119,267 $ 62,867 $ 195,874
=========== =========== ===========
Weighted average shares
outstanding 115,576,890 114,673,460 108,305,428
Basic and diluted net
investment income per share $ 1.57 $ 2.20 $ 2.28
Basic and diluted earnings
(loss) per share $ 1.03 $ 0.55 $ 1.81
ABOUT GOLDMAN SACHS BDC, INC.
Goldman Sachs BDC, Inc. is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940. GSBD was formed by The Goldman Sachs Group, Inc. ("Goldman Sachs") to invest primarily in middle-market companies in the United States, and is externally managed by Goldman Sachs Asset Management, L.P., an SEC-registered investment adviser and a wholly-owned subsidiary of Goldman Sachs. GSBD seeks to generate current income and, to a lesser extent, capital appreciation primarily through direct originations of secured debt, including first lien, first lien/last-out unitranche and second lien debt, and unsecured debt, including mezzanine debt, as well as through select equity investments. For more information, visit www.goldmansachsbdc.com. Information on the website is not incorporated by reference into this press release and is provided merely for convenience.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should, " "expect," "anticipate," "project," "target," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements represent the Company's belief regarding future events that, by their nature, are uncertain and outside of the Company's control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260226682096/en/
CONTACT: Goldman Sachs BDC, Inc.
Investor Contact: John Psyllos, 212-902-1000
Media Contact: Victoria Zarella, 212-902-5400
(END) Dow Jones Newswires
February 26, 2026 20:11 ET (01:11 GMT)