Financial Data and Key Metrics Changes - The company generated $0.37 per share of net investment income on a GAAP basis and $0.38 after adjusting for asset acquisition accounting [6][11] - The net asset value as of September 30 was $16.36 per share, a slight decrease from $16.43 per share as of June 30 [6][7] - Total investment income for the third quarter was $67 million, consistent with the prior quarter [10] - Total expenses increased slightly to $40 million, primarily due to higher interest expenses [11] Business Line Data and Key Metrics Changes - CGBD funded $260 million of investments into new and existing borrowers, resulting in net investment activity of $117 million after accounting for repayments [7] - Total investments increased from $2.3 billion to $2.4 billion during the quarter [7] - The average exposure to any single portfolio company was less than 1% of total investments, with 95% of investments in senior secured loans [9] Market Data and Key Metrics Changes - Year-over-year deal flow at the top of the funnel increased nearly 30% over the last two months [7] - The weighted average spread for the third quarter was slightly over 500 basis points, down from previous quarters [33] Company Strategy and Development Direction - The company remains focused on providing first lien loans to quality companies and maintaining a diversified portfolio [9][30] - The strategy emphasizes defensive positioning in a tight spread environment, with a continued trend towards first lien debt [30] - The company is building out the Carlyle Direct Lending team to enhance origination capabilities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit quality of the portfolio, noting below-average non-accruals compared to the public BDC average [9] - The company anticipates earnings will trough in the next couple of quarters, with a gradual recovery expected in the second half of 2026 into 2027 [53][55] - Management highlighted the potential for increased deal flow and activity supported by declining base rates and resilient economic growth expectations [8][15] Other Important Information - The board declared a fourth-quarter dividend of $0.40 per share, representing an attractive yield of over 12% based on recent share price [11] - The company has $0.86 per share of spillover income generated over the last five years to support the quarterly dividend [11] Q&A Session Summary Question: Can you provide a bridge on the top line this quarter? - The top line remained at $67 million, with a modest decline primarily due to OID accretion on repaid investments [20] Question: Was the 10 basis points change in borrowing spreads due to the baby bond or other factors? - The change was primarily due to post-quarter end items, including the repayment of the legacy CSL3 facility and the issuance of a new institutional deal [22] Question: Can you elaborate on the $0.40 dividend declaration? - Management is comfortable with the $0.40 dividend in the near term, anticipating earnings to trough in the next couple of quarters [24] Question: Will the concentration of first lien debt continue to increase? - The company does not see compelling opportunities in second liens and expects the portfolio to continue trending towards first lien debt [30] Question: What is the quality of the pipeline in terms of yields and terms? - The pipeline consists of high-quality borrowers, with loan-to-value ratios typically around 38-42%, indicating significant coverage [50] Question: How do the potential second JV and existing JV impact earnings power? - The JVs are expected to take time to scale up and will not have a near-term impact on earnings power [53]

Carlyle Secured Lending, Inc. Quarterly Earnings Presentation September 30, 2025 1 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Carlyle Secured Lending, Inc. (together with its consolidated subsidiaries, "we," "us," "our," "CGBD" or the "Company") (NASDAQ: CGBD) and may only be used for informational purposes only. This Presentation should be viewed in conjunction with the earnings conference call of the Company held on November 5, 2025 and the Company ...

Core Viewpoint - Carlyle Secured Lending, Inc. reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.39 per share, and showing a decline from $0.49 per share a year ago, indicating a negative earnings surprise of -2.56% [1][2] Financial Performance - The company posted revenues of $44.2 million for the quarter ended September 2025, which was 5.68% below the Zacks Consensus Estimate and an increase from $39.08 million year-over-year [2] - Over the last four quarters, Carlyle Secured Lending has surpassed consensus EPS estimates only once [2] Stock Performance - Carlyle Secured Lending shares have decreased approximately 29.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.40 on revenues of $47.52 million, and for the current fiscal year, it is $1.58 on revenues of $176.2 million [7] Industry Context - The Financial - SBIC & Commercial Industry, to which Carlyle Secured Lending belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - Carlyle Secured Lending, Inc. reported its financial results for Q3 2025, highlighting disciplined underwriting and net portfolio growth while maintaining leverage within target range [1] - The company declared a quarterly common dividend of $0.40 per share, payable on January 16, 2026 [3] - The net asset value per common share decreased by 0.4% to $16.36, while the total fair value of investments increased to $2.4 billion [2] Financial Performance - For Q3 2025, the company reported a Net Investment Income (NII) of $0.37 per common share and an Adjusted NII of $0.38 per common share [1] - The company continues to optimize its capital structure, including a second institutional bond issuance and repayment of the CSL III SPV Credit Facility, which lowers financing costs [1] Investment Strategy - Carlyle Secured Lending focuses on lending to middle-market companies, having invested approximately $10.2 billion since its inception in May 2013 [8] - The company's investment objective is to generate current income and capital appreciation primarily through debt investments in U.S. middle-market companies [8] Company Overview - Carlyle Secured Lending is managed by Carlyle Global Credit Investment Management L.L.C., a subsidiary of The Carlyle Group Inc., which has $474 billion in assets under management as of September 30, 2025 [9]

Financial Performance - The company generated $0.37 per common share of net investment income and $0.38 per share after adjusting for asset acquisition accounting[13] - Total investment income for Q3 2024 was $55,965,000, a slight decrease from $56,354,000 in Q4 2024[17] - Net Investment Income for Q3 2024 was $24,009,000, compared to $24,171,000 in Q4 2024, reflecting a decrease of 0.67%[17] - Adjusted Net Investment Income per Common Share for Q3 2024 was $0.49, consistent with $0.47 in Q4 2024[18] - Net Investment Income for Q3 2025 was reported at $26,839, a decrease from $28,250 in Q2 2025, reflecting a decline of about 5%[77] - Interest income for Q3 2025 was $59,794, up from $60,830 in Q2 2025, showing a slight decrease of around 1.7%[77] Asset and Investment Growth - Total assets increased to $2,533,808,000 in Q1 2025 from $1,925,993,000 in Q4 2024, representing a growth of 31.5%[19] - Total investments at fair value reached $2,422,630,000 in Q3 2025, up from $1,709,537,000 in Q3 2024, indicating a growth of 41.6%[19] - Total Investments at Fair Value increased from $1,709,537 in Q3 2024 to $2,422,630 in Q3 2025, representing a growth of approximately 42%[75] Portfolio and Yield - The total fair value of the portfolio increased to $2.4 billion across 158 portfolio companies with a weighted average yield of 10.6%[13] - First lien debt constituted 85.7% of the total investment portfolio in Q3 2025, up from 72.2% in Q3 2024[19] - The weighted average yield at amortized cost for new investment fundings was 10.7% in Q3 2024[22] - As of September 30, 2025, total investments at fair value amounted to $2,423 million, with a weighted average yield on income-producing investments at amortized cost of 10.6%[27] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.40 for Q4 2025, equating to an annualized yield of 12.8% based on the stock price as of September 30, 2025[13] - The annualized dividend yield is 9.8%[51] - The company has repurchased $158 million worth of shares to date[51] - The historical dividend data shows a consistent payout, with recent dividends declared at $0.08 per share[51] Debt and Liquidity - Total liquidity was $594.6 million based on cash and undrawn debt capacity as of September 30, 2025[13] - The company upsized total commitments at its senior secured Credit Facility by $25.0 million, bringing total commitments to $960.0 million[13] - The weighted average maturity of the company's financing facilities is 6.1 years, with a total commitment of $1,975 million and outstanding debt of $1,316 million[39] - Debt and secured borrowings rose from $848,508 in Q3 2024 to $1,306,757 in Q3 2025, an increase of approximately 54%[75] Non-Accrual Investments - Non-accrual investments decreased to 1.6% and 1.0% of the total portfolio based on amortized cost and fair value, respectively[13] - Non-accrual investments represented 1.0% of total investments at fair value, a decrease from 2.1% in the prior period[46] - As of September 30, 2025, five borrowers were on non-accrual status, representing 1.0% of total investments at fair value[46] Non-GAAP Financial Measures - The company disclosed non-GAAP measures to provide additional insights into financial performance, including Adjusted Net Investment Income[79] - The company is disclosing Adjusted Net Investment Income and Adjusted Net Income Per Common Share, which are calculated on a non-GAAP basis[82] - The adjustments reflect management's view of the economic yield on the acquired assets and are consistent with the internal evaluation of performance[82] - The company believes these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends[82] Market Position and Strategy - The company has a market capitalization of $920 million with 73 million shares outstanding[51] - CGBD's NAV per share has remained relatively flat over the past 5 years, while BDC peers experienced an average decline of 8.8%[53] - The Carlyle Global Credit Platform has an AUM of $208 billion, with $49.4 billion in liquid credit and $33.2 billion in private credit[70] - Carlyle Direct Lending targets companies with EBITDA of $25 million or greater, primarily backed by high-quality financial sponsors[72] - The company employs a disciplined underwriting approach to deliver sustainable current cash income from predominantly first lien, secured, floating rate instruments[72] Operational Insights - The company reported a net increase in net assets resulting from operations of $18,736,000 in Q3 2024, compared to $20,482,000 in Q4 2024[17] - The company reported a net increase in net assets resulting from operations of $23,903 in Q3 2025, compared to $14,630 in Q2 2025, indicating a growth of about 63.5%[77] - The company anticipates potential substantial losses on loans that are operating below expectations and are out of compliance with debt covenants[50]

Financial Performance - Net investment income for Q3 2025 was $26.8 million, or $0.37 per common share, reflecting an increase from the prior year due to higher average outstanding investment balance[332]. - Adjusted net investment income per common share, accounting for the CSL III Merger and Credit Fund II Purchase, was $0.38[332]. - Basic earnings per common share for Q3 2025 were $0.33, compared to $0.20 for the previous quarter[334]. - Total investment income for Q3 2025 was $66.5 million, slightly down from $67.3 million in the previous quarter[338]. - Adjusted Net Investment Income for the three months ended September 30, 2025, was $27,350,000, compared to $28,136,000 for the previous quarter[342]. - Adjusted Net Income for the same period was $23,903,000, significantly up from $14,630,000 in the prior quarter[342]. - The Company recognized a net investment income of $26.8 million for the three months ended September 30, 2025, down from $28.3 million in the previous quarter[387]. - The Company reported a net realized loss on investments of $16.4 million for the three months ended September 30, 2025[395]. - The net realized loss on investments for the three months ended September 30, 2025, was $(16,427), compared to $(11,477) in 2024, indicating a decline in performance[398]. - The company recognized a net realized loss related to the restructuring of investments during the nine months ended September 30, 2025, impacting overall profitability[409]. Investment Portfolio - Total fair value of investments as of September 30, 2025, was $2.4 billion, with 221 investments across 158 portfolio companies[332]. - Non-accrual investments represented 1.6% of the portfolio based on cost and 1.0% based on fair value as of September 30, 2025[332]. - As of September 30, 2025, 99.0% of investments were performing, with a fair value of $2,399,122,000[354]. - The total fair value of investments was $2,422,630,000, with 215 performing investments and 6 non-accrual investments[354]. - The number of portfolio companies in the Credit Fund increased to 45 as of September 30, 2025, from 33 as of December 31, 2024[384]. - The size of the Company's portfolio increased to $2,442.2 million as of September 30, 2025, from $2,366.4 million as of June 30, 2025[388]. - The portfolio size increased to $2,442,191 at amortized cost as of September 30, 2025, up from $1,757,621 as of September 30, 2024, indicating a growth of approximately 39%[398]. Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $594.6 million, including cash and undrawn debt capacity[332]. - The NAV per common share decreased to $16.36 as of September 30, 2025, down from $16.43 as of June 30, 2025[332]. - Dividends declared on common shares for Q3 2025 were $29.2 million, or $0.40 per share[332]. - The statutory debt to equity ratio improved to 1.10x as of September 30, 2025, down from 1.20x as of December 31, 2024[411]. - The company had $594,594 in total liquidity as of September 30, 2025, compared to $565,696 as of December 31, 2024, showing an increase of 5%[413]. - The total outstanding principal balance of secured and unsecured debt is $1,315,719,000, up from $978,439,000 as of December 31, 2024, representing a 34.4% increase[357]. - Total senior securities increased to $1,315,719 as of September 30, 2025, compared to $1,028,439 as of December 31, 2024, with asset coverage ratios of 190.6% and 183.2%, respectively[421]. Investment Activity - The company made new investments totaling $260,763,000 during the three months ended September 30, 2025[348]. - The number of new investment commitments was 21, with an average commitment amount of $12,702,000[348]. - The company completed a public offering of $300,000,000 in aggregate principal of 5.75% senior unsecured notes due February 15, 2031, on October 7, 2025[368]. - The company plans to redeem all outstanding 2028 Notes on December 1, 2025, at a redemption price of 100% of the principal amount plus accrued interest[369]. - The company completed a refinancing of the 2015-1R Notes, resulting in the issuance of $410.0 million in collateralized loan obligations[377]. Interest Rate and Risk Management - The weighted average yield on total debt and income-producing investments was 10.6% at amortized cost as of September 30, 2025[344]. - The weighted average interest rate for total debt decreased to 6.49% as of September 30, 2025, compared to 6.65% as of December 31, 2024[357]. - Interest rate sensitivity analysis indicates that a 300 basis point increase in interest rates could result in a net investment income increase of $25,733 as of September 30, 2025[430]. - Approximately 99.4% of the company's debt investments bear interest at a floating rate, primarily linked to SOFR rates[425]. - The company regularly assesses interest rate risk and manages exposure through ongoing comparisons of interest rate sensitive assets and liabilities[428]. Expenses - Total expenses for Q3 2025 were $39.7 million, compared to $39.0 million in the previous quarter[338]. - The total expenses for the three months ended September 30, 2025, were $39.7 million, an increase of $0.6 million from the previous quarter[387]. - Total expenses increased to $39,670 for the three months ended September 30, 2025, from $31,081 in 2024, which is a rise of 27%[397]. Commitments and Cash Flows - As of September 30, 2025, total unfunded commitments amounted to $359,057, an increase from $179,247 as of December 31, 2024[416]. - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(51,310), while financing activities provided $47,003, resulting in a net decrease in cash of $(4,307)[417]. - The company had net borrowings of $122,122 on its Credit Facilities during the nine months ended September 30, 2025[417]. - The company paid $74,877 in cash dividends during the nine months ended September 30, 2025[417].

Core Viewpoint - Carlyle Secured Lending, Inc. plans to redeem all $85 million of its outstanding 8.20% Notes due 2028 on December 1, 2025, with a redemption price equal to 100% of the principal plus accrued interest [1] Company Overview - Carlyle Secured Lending, Inc. is a closed-end, non-diversified investment company regulated as a business development company under the Investment Company Act of 1940, focusing on generating current income and capital appreciation through senior secured debt investments in U.S. middle-market companies [3] - The company is managed by Carlyle Global Credit Investment Management L.L.C., a wholly owned subsidiary of Carlyle, leveraging Carlyle's extensive resources and expertise [3] Carlyle Group Overview - Carlyle Group is a global investment firm with $474 billion in assets under management as of September 30, 2025, operating across three segments: Global Private Equity, Global Credit, and Carlyle AlpInvest [4] - The firm employs over 2,400 people in 27 offices worldwide, aiming to invest wisely and create value for investors and communities [4]

分组1 - Carlyle Secured Lending, Inc. (CGBD) is expected to report a year-over-year decline in earnings of 20.4%, with an estimated earnings per share (EPS) of $0.39, while revenues are projected to increase by 19.9% to $46.87 million [3][12] - The consensus EPS estimate has been revised down by 0.62% over the last 30 days, indicating a reassessment by analysts [4] - The company has an Earnings ESP of +2.56%, suggesting a recent bullish sentiment among analysts, but it carries a Zacks Rank of 4, making it difficult to predict an earnings beat [12][17] 分组2 - Carlyle Secured Lending has matched consensus EPS estimates in the past, delivering no surprise in the last reported quarter, and has beaten estimates two out of the last four quarters [13][14] - The stock's price movement may be influenced by how actual results compare to expectations, with potential for upward movement if results exceed estimates [2][15] - Other factors beyond earnings results may also impact stock performance, indicating that an earnings beat does not guarantee a stock price increase [15][17]

Core Points - Carlyle Secured Lending, Inc. will announce its financial results for Q3 2025 on November 4, 2025, with a conference call scheduled for November 5, 2025, at 11:00 a.m. Eastern Time [1][2] Company Overview - Carlyle Secured Lending, Inc. is a publicly traded business development company (BDC) that began investing in 2013, focusing on senior secured lending to middle-market companies primarily in the United States [3] - The company is externally managed by Carlyle Global Credit Investment Management L.L.C., a wholly owned subsidiary of Carlyle [3] - Carlyle, as a global investment firm, manages $465 billion in assets as of June 30, 2025, and operates across three business segments: Global Private Equity, Global Credit, and Carlyle AlpInvest [4]

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