Core Viewpoint - During turbulent market conditions, investors are increasingly attracted to dividend-yielding stocks, which typically feature high free cash flows and substantial dividend payouts [1] Group 1: High-Yielding Stocks - Mfa Financial Inc (NYSE:MFA) is identified as a high-yielding stock in the financial sector [2] - Trinity Capital Inc (NASDAQ:TRIN) is also highlighted as a notable dividend-yielding stock [2] - Goldman Sachs BDC Inc (NYSE:GSBD) is mentioned as another key player in the high-yielding stock category [2]

Group 1: Oil Market Dynamics - Oil prices are currently above $100 a barrel, influenced by ongoing tensions related to the Iran war and fears of supply disruptions, particularly with oil flows through the Strait of Hormuz down 97% from normal levels [1][3] - The rise in oil prices is contributing to inflation concerns, which is reflected in the performance of gold prices, heading for a second weekly loss [1][3] Group 2: Business Development Companies (BDCs) Overview - BDCs are currently offering high yields, with some yielding up to 15.6%, but face challenges due to recession fears, rising oil prices, and uncertainties from the Federal Reserve [1][2] - The sector is experiencing increased scrutiny due to fears surrounding private credit, particularly after the bankruptcy of First Brands, leading to asset sell-offs and limited investor withdrawals by major firms like BlackRock and Blackstone [1][2] Group 3: Individual BDC Performance - Gladstone Investment (GAIN) has a yield of 11.0% and focuses on lower-middle-market companies, showing resilience with no exposure to software sectors, and a net asset value increase from $12.99 to $14.95 per share [1][2] - SLR Investment Corp (SLRC) yields 11.1% and specializes in senior secured loans, maintaining low exposure to the tech sector and a diverse portfolio of 880 holdings across 110 industries [2] - Goldman Sachs BDC (GSBD) offers a yield of 15.6% but trades at a 28% discount to net asset value due to a significant reduction in its core payout and high exposure to the tech industry, which it is actively managing by exiting high-risk investments [2] - PennantPark Floating Rate Capital (PFLT) has a yield of 15.2% but faces challenges with net investment income falling short of dividend payouts, leading to a 23% discount to net asset value [2]

Core Viewpoint - Goldman Sachs BDC's net investment income is likely to have peaked during the last interest rate cycle, but the shares remain attractive for investors due to recent fears in the SaaS sector that have driven the shares to new lows [1] Group 1 - The net investment income of Goldman Sachs BDC (GSBD) is suggested to have reached its peak in the previous interest rate cycle [1] - Recent concerns regarding the Software as a Service (SaaS) industry have negatively impacted the share prices, creating potential investment opportunities [1] - The current market conditions may present a favorable entry point for investors interested in GSBD shares [1]

Core Insights - Goldman Sachs BDC (GSBD) continues to advance its integration into Goldman Sachs' Direct Lending platform, resulting in improved portfolio quality and a higher mix of first-lien exposure [3][5][12] Financial Performance - For Q4 2025, GSBD reported a net asset value (NAV) of $12.64 per share, reflecting a decline of approximately 1% quarter-over-quarter, primarily due to net realized and unrealized losses [4][12] - The net investment income (NII) for the quarter was $0.37 per share, with a supplemental dividend of $0.03 and a base dividend of $0.32 declared for Q1 2026 [4][12] - Leverage increased to a net debt-to-equity ratio of 1.27x as of December 31, 2025, compared to 1.17x at September 30, 2025 [13] Portfolio Composition - First-lien exposure rose to 97% of the portfolio from 89%, with 57% of the portfolio reflecting deals benefiting from the 2022 reorganization [2][5] - The company has significantly reduced its annual recurring revenue (ARR) exposure, which fell to about 11% from nearly 39% since 2022 [6][5] Investment Strategy - GSBD has launched a formal AI disruption underwriting framework to evaluate risks associated with software lending, reflecting a strategic shift towards EBITDA-based investments [5][10] - The platform has closed or committed to 26 new software deals since January 2025, with an average Rule of 40 of 55.8%, indicating strong revenue growth and cash EBITDA margins [10][11] Credit Quality and Risk Management - Non-accruals decreased slightly to 1.9% of fair value, down from 2.0%, indicating improved credit quality [4][17] - The company is actively managing risks associated with AI disruption, having passed on a deal due to concerns in October 2023 [9][10] Originations and Repayments - In 2025, GSBD made approximately $1.2 billion in new commitments across 35 deals, with 100% of Q4 originations being first-lien loans [14] - Total repayments for 2025 were $1.1 billion, with over 78% coming from pre-2022 vintage loans [16]

Financial Data and Key Metrics Changes - The net investment income per share for Q4 2025 was $0.37, with a net asset value (NAV) per share of $12.64, reflecting a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [20][21] - The adjusted NAV per share for Q4 2025 is $12.61 after accounting for a supplemental dividend of $0.03 per share [20] - The net debt-to-equity ratio increased to 1.27x as of December 31, 2025, compared to 1.17x as of September 30, 2025 [21][29] Business Line Data and Key Metrics Changes - The portfolio's median EBITDA increased by 84% from year-end 2021 to $71.8 million at year-end 2025 [6] - The percentage of first lien investments in the portfolio rose to 97% from 89% during the same period [6] - PIK (Payment-in-Kind) as a percentage of total investment income decreased to 9% in Q4 2025 from 15.3% in Q4 2024 [7] - Investments on non-accrual status decreased slightly to 1.9% of fair value from 2% during the year [7] Market Data and Key Metrics Changes - In the Americas, the company committed approximately $14.6 billion in total for the year, up from $13 billion in 2024 and more than double the activity in 2023 [9] - Total M&A volume globally increased by 44% from 2024, with U.S. private equity deals reaching nearly $1.2 trillion [9] Company Strategy and Development Direction - The company has enhanced its sourcing, underwriting, and portfolio management since its integration into the broader Direct Lending platform in 2022, with 57% of the portfolio benefiting from this integration [4] - The focus remains on high-quality, EBITDA-based investments while actively managing legacy portfolio risks, particularly concerning annualized recurring revenue (ARR) loans [8] - The company aims to leverage its position as part of the number one global investment bank to identify attractive investment opportunities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A momentum continuing in a potentially falling rate environment, which is expected to stimulate greater demand for credit financing [9] - The company remains vigilant regarding AI's impact on software business models and is prepared to adapt its investment strategies accordingly [12][19] Other Important Information - The company repurchased over 1.5 million shares for $15 million, which is expected to be accretive to NAV by $0.04 per share [27] - The total portfolio investments at fair value were $3.3 billion, with outstanding debt of $1.9 billion and net assets of $1.4 billion as of the end of Q4 2025 [29] Q&A Session Summary Question: Insights on Clearwater and market competitiveness - Management highlighted the advantage of being connected to the number one M&A investment bank, which allows for unique opportunities in take-private transactions [37][39] Question: Strategy regarding spillover and deployment - Management indicated that while there are no current plans for special distributions, they could issue some if necessary, depending on future earnings [52] Question: Changes in deal flow composition - Management noted that the composition of deal flow remains stable, with signs of increased M&A activity in various industries, although software remains cautious due to market volatility [53] Question: AI risk framework application to current portfolio - Management confirmed that while most of the portfolio aligns well with the new AI framework, some legacy assets are being actively managed and exited if they do not meet the criteria [58]

Financial Data and Key Metrics Changes - The net investment income per share for Q4 2025 was $0.37, with a net asset value (NAV) per share of $12.64, reflecting a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [20] - The adjusted NAV per share for Q4 2025 is $12.61 after accounting for a supplemental dividend of $0.03 per share [20] - The net debt-to-equity ratio increased to 1.27x as of December 31, 2025, compared to 1.17x as of September 30, 2025 [21] Business Line Data and Key Metrics Changes - The portfolio's median EBITDA increased by 84% from year-end 2021 to $71.8 million at year-end 2025 [6] - The proportion of first lien investments in the portfolio rose to 97% from 89% during the same period [6] - The weighted average yield of total debt and income-producing investments at amortized cost decreased to 9.9% at the end of Q4 2025 from 10.3% at the end of Q3 2025 [24] Market Data and Key Metrics Changes - In the Americas, the company committed approximately $14.6 billion in total throughout 2025, up from $13 billion in 2024 and more than double the activity in 2023 [9] - Total M&A volume globally increased by 44% from 2024, with U.S. private equity deals reaching nearly $1.2 trillion [9] - The exposure to annualized recurring revenue (ARR) loans within the broader BDC complex decreased significantly to approximately 5% at year-end 2025 from a peak of 36.5% in Q3 2022 [8] Company Strategy and Development Direction - The company has enhanced its sourcing, underwriting, and portfolio management since its integration into the Direct Lending platform in 2022, with 57% of the portfolio benefiting from this integration [4] - The focus remains on high-quality investments, particularly in the software sector, leveraging the Goldman Sachs ecosystem for proprietary origination and enhanced diligence [17][19] - The company is proactively assessing the impacts of AI on the software space and has implemented a framework to evaluate AI disruption risk [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A momentum continuing in a potentially falling rate environment, which is expected to stimulate greater demand for credit financing [9] - The company remains vigilant regarding credit quality and is prepared to adapt its strategies in response to any material changes in portfolio company performance [12][19] - Management emphasized the importance of maintaining a disciplined approach amidst market volatility and AI-related risks [19] Other Important Information - The company repurchased over 1.5 million shares for $15 million during the quarter, which is expected to be accretive to NAV by $0.04 per share [27] - The total investments in the portfolio were $3.26 billion at fair value, with 38.4% in senior secured loans [22] - The company has a remaining borrowing capacity of approximately $1.1 billion under its revolving credit facility as of December 31, 2025 [29] Q&A Session Summary Question: Can you provide insights on the Clearwater deal and its competitive positioning? - Management highlighted the advantage of being connected to the number one M&A investment bank, which allows for unique opportunities in take-private transactions, emphasizing the importance of confidentiality in such deals [37][39] Question: How does the company approach the structure of its semi-liquid investments? - Management clarified that there are no different standards for different vehicles, and all deals go through a single robust investment committee process [41][42] Question: What is the strategy regarding the spillover and its deployment heading into 2026? - Management indicated that while there are no current plans for a special distribution, they could issue some incremental net investment income if needed [52] Question: Are there any shifts in the mix of deals in the pipeline? - Management noted that the composition of deal flow remains stable, with signs of increased M&A activity in various industries, although software remains cautious due to market conditions [53] Question: How does the company view its share repurchase program? - Management stated that the ability to utilize the repurchase program will depend on market opportunities and the net debt-to-equity ratio, which is currently around the target [60][61]

Financial Data and Key Metrics Changes - The net investment income per share for Q4 2025 was $0.37, with a net asset value (NAV) per share of $12.64, reflecting a decrease of approximately 1% from the previous quarter due to net realized and unrealized losses [20] - The adjusted NAV per share for Q4 2025 is $12.61 after accounting for a supplemental dividend of $0.03 per share [20] - The net debt-to-equity ratio increased to 1.27x as of December 31, 2025, compared to 1.17x as of September 30, 2025 [21] Business Line Data and Key Metrics Changes - The company committed approximately $1.2 billion in new commitments throughout 2025 across 35 new deals, with 75% of these being lead roles [21] - In Q4 2025, new commitments totaled approximately $394.9 million across 27 portfolio companies, including 7 new and 20 existing companies [22] - 100% of origination during the quarter was in first lien loans, maintaining a focus on investments at the top of the capital structure [23] Market Data and Key Metrics Changes - In the Americas, the company committed approximately $14.6 billion in 2025, up from $13 billion in 2024 and more than double the activity in 2023 [8] - Total M&A volume globally increased by 44% from 2024, with U.S. private equity deals reaching nearly $1.2 trillion [8] Company Strategy and Development Direction - The company has enhanced its sourcing, underwriting, and portfolio management since its integration into the broader Direct Lending platform in 2022, with 57% of the portfolio benefiting from this integration [4] - The focus has shifted towards EBITDA-based investments, significantly reducing exposure to annualized recurring revenue (ARR) loans from 39% to 11% [7] - The company aims to leverage its position as part of the number one global investment bank to enhance deal origination and capitalize on M&A opportunities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A environment, anticipating continued demand for credit financing in a potentially falling rate environment [8] - The company remains vigilant regarding AI's impact on creditworthiness and is prepared to adapt its investment strategies accordingly [11][19] - Management emphasized the importance of maintaining a disciplined approach amidst market volatility and evolving risks [19] Other Important Information - The company repurchased over 1.5 million shares for $15 million, which is expected to be accretive to NAV by $0.04 per share [27] - The weighted average yield of total debt and income-producing investments decreased to 9.9% from 10.3% in the previous quarter [25] Q&A Session Summary Question: Insights on Clearwater and market competitiveness - Management highlighted the advantage of being connected to the number one M&A investment bank, which allows for unique opportunities in take-private transactions [36][38] Question: Strategy regarding spillover and deployment - Management indicated that spillover has decreased year-over-year and that there are no current plans for a special distribution, but they could issue some incremental net investment income if needed [52] Question: Changes in deal flow composition - Management noted that the composition of deal flow remains stable, with signs of increased M&A activity in various industries, although software remains cautious due to market conditions [53] Question: AI risk framework application to current portfolio - Management confirmed that while most of the portfolio aligns well with the new AI framework, there are a few legacy assets that may not meet the criteria, and proactive measures are being taken to manage these risks [56][58]

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分组1 - Goldman Sachs BDC reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $0.47 per share a year ago, representing an earnings surprise of +3.73% [1] - The company posted revenues of $86.06 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 2.09%, and down from $103.8 million year-over-year [2] - Over the last four quarters, Goldman Sachs BDC has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - The stock has underperformed the market, losing about 0.2% since the beginning of the year compared to the S&P 500's gain of 1.5% [3] - The current consensus EPS estimate for the coming quarter is $0.33 on revenues of $82.72 million, and for the current fiscal year, it is $1.31 on revenues of $317.79 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the bottom 41% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - For the quarter ended December 31, 2025, net investment income per share was $0.37, resulting in an annualized net investment income yield on book value of 11.7%[3] - Total investment income for the quarter was $86.1 million, down from $91.6 million in the previous quarter[4] - Total investment income for 2025 was reported at $365.57 million, down from $454.91 million in 2023, indicating a decrease of 19.6%[20] - Net investment income before taxes was $185.59 million in 2025, a decrease of 27.0% from $252.08 million in 2023[20] - Net investment income after taxes was $181.57 million in 2025, down from $247.24 million in 2023, a decline of 26.5%[20] - Basic and diluted net investment income per share was $1.57 in 2025, compared to $2.28 in 2023, a decrease of 30.5%[20] - Basic and diluted earnings (loss) per share was $1.03 in 2025, a significant increase from $0.55 in 2024, and a decrease from $1.81 in 2023[20] Asset and Investment Overview - The net asset value (NAV) per share decreased by 0.9% to $12.64 from $12.75 as of September 30, 2025[3] - Total investments at fair value and commitments amounted to $3,898.2 million, with 98.4% in senior secured debt[3] - As of December 31, 2025, total investments at fair value amounted to $3,261.7 million, a decrease from $3,475.3 million as of December 31, 2024[19] - The company’s total assets as of December 31, 2025, were $3,383.2 million, down from $3,603.4 million as of December 31, 2024[19] - Total debt outstanding as of December 31, 2025, was $1,874.6 million, down from $1,926.5 million as of December 31, 2024[19] - The weighted average yield on debt and income-producing investments at fair value was 10.9%[7] Dividends and Share Repurchase - The company declared a first quarter 2026 base dividend of $0.32 per share and a fourth quarter 2025 supplemental dividend of $0.03 per share[3] - The company declared a base dividend of $0.32 per share, payable on or about April 28, 2026, to shareholders of record as of March 31, 2026[4] - The company repurchased 1,544,029 shares for $15.0 million during the quarter under a stock repurchase plan[3] Debt and Leverage - The ending net debt-to-equity ratio increased to 1.27x as of December 31, 2025, compared to 1.17x as of September 30, 2025[3] - As of December 31, 2025, the weighted average net debt to EBITDA ratio was calculated based on the fair value of debt investments, reflecting the risk profile of portfolio investments[15] - Investments where net debt-to-EBITDA may not be the appropriate measure of credit risk represented 14.2% of total debt investments at fair value as of December 31, 2025[18] Cash and Expenses - Cash and cash equivalents as of December 31, 2025, totaled $43.2 million, a decrease from $61.8 million as of December 31, 2024[19] - Net expenses before taxes decreased to $43.0 million from $45.4 million, primarily due to lower incentive fees[5] - Total expenses increased to $179.98 million in 2025, compared to $204.81 million in 2023, reflecting a decrease of 12.1%[20] Management and Forward-Looking Statements - Goldman Sachs BDC, Inc. focuses on generating current income primarily through secured debt and select equity investments[21] - The company is externally managed by Goldman Sachs Asset Management, L.P., a wholly-owned subsidiary of Goldman Sachs[21] - The press release contains forward-looking statements that involve substantial risks and uncertainties, which may affect the company's future results[22] - The company emphasizes the importance of reading forward-looking statements carefully due to their inherent uncertainties and potential risks[22] - The company does not undertake any obligation to update or revise forward-looking statements except as required by law[22]