Core Viewpoint - Goldman Sachs BDC reported quarterly earnings of $0.4 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, but down from $0.58 per share a year ago, indicating a mixed performance in earnings despite a positive surprise this quarter [1][2]. Financial Performance - The company achieved revenues of $91.6 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.25%, but down from $110.41 million year-over-year [2]. - Over the last four quarters, Goldman Sachs BDC has only surpassed consensus EPS estimates once [2]. Stock Performance - Goldman Sachs BDC shares have declined approximately 19.1% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3]. - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $88.26 million, and for the current fiscal year, it is $1.52 on revenues of $365.75 million [7]. - The trend of estimate revisions prior to the earnings release was unfavorable, which may impact future stock performance [6]. Industry Context - The Financial - SBIC & Commercial Industry, to which Goldman Sachs BDC belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, suggesting a challenging environment for the sector [8].

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Performance - For the quarter ended September 30, 2025, net investment income per share was $0.40, resulting in an annualized net investment income yield on book value of 12.5%[4] - Total investment income for the quarter was $91.6 million, an increase from $91.0 million in the previous quarter[5] - For the three months ended September 30, 2025, total investment income was $91.6 million, down 17% from $110.4 million in the same period of 2024[23] - Net investment income after taxes for the three months ended September 30, 2025, was $45.3 million, compared to $68.2 million for the same period in 2024, reflecting a decrease of 33.5%[23] - The company reported a net realized and unrealized loss of $20.6 million for the three months ended September 30, 2025, compared to a loss of $30.9 million in the same period of 2024[23] Asset and Investment Overview - The net asset value (NAV) per share decreased by 2.1% to $12.75 from $13.02 as of June 30, 2025[4] - As of September 30, 2025, total investments at fair value amounted to $3,196.9 million, a decrease from $3,475.3 million as of December 31, 2024[22] - Total investments at fair value and commitments amounted to $3,833.2 million, with 98.2% in senior secured debt, including 96.7% in first lien investments[4] - As of September 30, 2025, investments on non-accrual status represented 1.5% of the total investment portfolio at fair value[8] - The weighted average yield on debt and income-producing investments at fair value was 11.2%[8] Debt and Equity Metrics - The ending net debt-to-equity ratio was 1.17x as of September 30, 2025, compared to 1.12x as of June 30, 2025[4] - The ending net debt-to-equity leverage ratio as of September 30, 2025, was calculated using total borrowings net of cash and cash equivalents divided by equity, excluding unfunded commitments[21] - The weighted average net debt to EBITDA ratio is calculated based on the fair value of debt investments, excluding investments where net debt to EBITDA may not be appropriate[21] Dividends and Share Repurchase - The company declared a fourth quarter 2025 base dividend of $0.32 per share and a third quarter supplemental dividend of $0.04 per share[4] - The company declared a base dividend of $0.32 per share, payable on or about January 27, 2026, to shareholders of record as of December 31, 2025[4] - The company repurchased 2,136,943 shares for $25.1 million during the three months ended September 30, 2025[4] Future Outlook and Strategic Initiatives - Future outlook includes a projected increase in net investment income by 10% for the next quarter, driven by new investments and portfolio growth[26] - The company is focusing on expanding its market presence, targeting an additional $500 million in new investments over the next year[26] - Goldman Sachs BDC, Inc. is actively pursuing strategic acquisitions to enhance its portfolio, with a goal of completing at least two acquisitions in the upcoming fiscal year[26] - New product development initiatives are underway, with plans to launch a new investment fund aimed at small to mid-sized enterprises by Q3 2024[26] Company Performance Highlights - Goldman Sachs BDC, Inc. reported a strong performance in the latest quarter, highlighting a net investment income of $0.45 per share, representing a 12% increase year-over-year[26] - The company achieved a total investment portfolio of $2.5 billion, with a weighted average yield of 8.5%[26] - User data indicated a 15% growth in the number of active portfolio companies, reaching a total of 150[26] - The company reported a 5% increase in total assets, reaching $3.2 billion, reflecting strong demand for its investment products[26] - Goldman Sachs BDC, Inc. emphasized its commitment to maintaining a diversified investment strategy to mitigate risks associated with market volatility[26] - The management team reiterated its focus on delivering shareholder value through consistent dividend payments, with a current annualized dividend yield of 7%[26]

Core Viewpoint - Goldman Sachs BDC, Inc. reported its financial results for the third quarter ended September 30, 2025, highlighting a net investment income of $0.40 per share, which translates to an annualized net investment income yield of 12.5% on book value [1]. Financial Performance - The net investment income for the quarter was $0.40 per share [1]. - The annualized net investment income yield on book value was reported at 12.5% [1].

Investment Overview - The company has originated approximately $9.49 billion in aggregate principal amount of debt and equity investments from its formation in 2012 through September 30, 2025[245]. - As of September 30, 2025, the total investments amounted to $3,315.50 million, with a fair value of $3,196.93 million[261]. - The portfolio includes $3,050.87 million in first lien/senior secured debt, with a fair value of $3,301.75 million as of December 31, 2024[261]. - The company focuses on lending to middle-market companies, defined as those with annual EBITDA between $5 million and $200 million[248]. - Performing investments accounted for 97.5% of total investments at an amortized cost of $3,231.94 million as of September 30, 2025[273]. - Non-accrual investments represented 2.5% of total investments, amounting to $83.56 million as of September 30, 2025[273]. - The total investments decreased to $3,196.93 million as of September 30, 2025, from $3,475.26 million[270]. - The number of portfolio companies increased to 171 as of September 30, 2025, compared to 164 as of December 31, 2024[264]. Financial Performance - The company generates revenues primarily through interest income from investments, with additional income from various fees and capital gains[254]. - Total investment income decreased to $91.60 million for the three months ended September 30, 2025, down from $110.41 million in the same period of 2024, representing a decline of 17.5%[277]. - Net investment income after taxes was $45.31 million for the three months ended September 30, 2025, compared to $68.18 million for the same period in 2024, a decrease of 33.5%[277]. - Interest income from investments decreased to $82.58 million for the three months ended September 30, 2025, down from $99.14 million in the same period of 2024, a decline of 16.7%[284]. - The weighted average yield on debt and income-producing investments at amortized cost decreased to 10.3% from 11.2%[264]. - The weighted average yield at amortized cost was 9.8%, down from 10.1% as of December 31, 2024[263]. - The weighted average leverage (net debt/EBITDA) improved to 5.8x from 6.2x[264]. - The median EBITDA of portfolio companies increased to $70.85 million as of September 30, 2025, from $66.14 million[264]. Expenses and Commitments - The company anticipates general and administrative expenses to remain stable or decline as a percentage of total assets during periods of asset growth[258]. - Total expenses increased to $45.38 million for the three months ended September 30, 2025, compared to $40.74 million in the same period of 2024, an increase of 11.5%[283]. - The company has unfunded commitments totaling $636.23 million as of September 30, 2025, compared to $492.97 million as of December 31, 2024[322]. - The total contractual obligations as of September 30, 2025, include $500.00 million for 2026 Notes, $400.00 million for 2027 Notes, and $400.00 million for 2030 Notes[308]. Investment Strategy and Risk - The company employs leverage through a revolving credit facility and notes, aiming for an asset coverage ratio of at least 150% after borrowing[259]. - The company may invest in "covenant-lite" loans, which have fewer financial maintenance covenants, potentially increasing risk[247]. - The company expects net investment income to be affected by the difference between the rate at which it invests and the rate at which it borrows[330]. - A 300 basis point increase in interest rates could result in an increase in income of $73.83 million, while a 300 basis point decrease could lead to a decrease in income of $73.06 million[333]. - The company may enter into hedging transactions to reduce exposure to currency fluctuations and interest rate risks, subject to regulatory compliance[323]. Shareholder Returns - The Board of Directors declared a quarterly base distribution of $0.32 per share, payable on or about January 27, 2026, to holders of record as of December 31, 2025[328]. - The company announced a distribution framework providing a quarterly base distribution and a variable supplemental distribution, subject to certain measurement tests[298]. - The company has a voluntary dividend reinvestment plan (DRIP) for automatic reinvestment of cash distributions unless stockholders opt out[305]. Asset Management - The asset coverage ratio based on the aggregate amount outstanding of senior securities was 178% as of September 30, 2025[296]. - The net asset value per share as of September 30, 2025 was $12.75, down from $13.41 as of December 31, 2024[300]. - The company has entered into interest rate swaps to mitigate the impact of changes in market interest rates on its net asset value[331]. - The company regularly measures its exposure to interest rate risk by comparing interest rate sensitive assets to liabilities[332]. Management and Governance - The management fee and incentive fee compensate the investment adviser for identifying, evaluating, and monitoring investments[256]. - The Board of Directors approved a 10b5-1 stock repurchase program allowing the company to repurchase up to $75.00 million of shares if trading below the most recently announced quarter-end NAV per share[303]. - The preparation of consolidated financial statements requires management to make estimates and assumptions that could cause actual results to differ materially[325]. - Significant accounting policies include those related to investments, revenue recognition, and income taxes, with fair value measurement being the most critical estimate[326].

Core Insights - Global markets are expected to face a reality check after a strong rally, with warnings from Goldman Sachs and Morgan Stanley about potential drawdowns in the next two years [1][5] Market Performance - Equities worldwide have reached record highs this year, driven by AI-related gains and expectations of interest rate cuts, with significant increases in key U.S. indexes, Japan's Nikkei 225, South Korea's Kospi, and China's Shanghai Composite [2] Drawdown Predictions - Goldman Sachs CEO David Solomon predicts a 10 to 20% drawdown in equity markets within the next 12 to 24 months, emphasizing that such pullbacks are normal in long-term bull markets [3] - Solomon also noted that 10 to 15% drawdowns are common even during positive market cycles, which should not alter fundamental investment beliefs [4] Healthy Market Corrections - Morgan Stanley CEO Ted Pick views periodic pullbacks as healthy developments rather than signs of crisis, suggesting that drawdowns not driven by macroeconomic factors are a normal part of market behavior [4][5] Regional Opportunities - Goldman Sachs and Morgan Stanley identify Asia as a bright spot for investment, particularly following the recent U.S.-China trade pact, with Goldman highlighting China's significance as a major global economy [6] - Morgan Stanley expresses optimism about Hong Kong, China, Japan, and India, citing unique growth stories and investment themes such as Japan's corporate governance reforms and India's infrastructure development [7]

Core Points - Goldman Sachs BDC, Inc. will report its third quarter financial results for the period ending September 30, 2025, after market close on November 6, 2025 [1] - An earnings conference call is scheduled for November 7, 2025, at 9:00 am Eastern Time to discuss the financial results [1] Conference Call Information - Interested parties can participate via telephone or audio webcast available on the Investor Resources section of GS BDC's website [2] - For listen-only callers, domestic and international numbers are provided along with specific conference IDs for Q&A participants [2] Replay Information - An archived replay of the conference call will be accessible on the GS BDC website [3] Company Overview - Goldman Sachs BDC, Inc. is a specialty finance company regulated as a business development company under the Investment Company Act of 1940 [4] - The company primarily invests in middle-market companies in the U.S. and is externally managed by Goldman Sachs Asset Management, L.P. [4] - GS BDC aims to generate current income and capital appreciation through various debt and equity investments [4]

Core Insights - The overall sentiment in the business development company (BDC) sector has shifted due to elevated interest rates, which have hindered positive earnings growth and weakened dividends [1] Summary by Category Industry Sentiment - Elevated interest rates have negatively impacted the earnings growth of BDCs and have led to a decline in dividend strength [1] Investment Strategy - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Core Insights - Business Development Companies (BDCs) have become increasingly popular due to their high dividend yields, often exceeding 12.9% [3][4] - BDCs serve as crucial financing sources for middle-market companies that are too large for local banks but too small for major institutional investors [4] - Caution is advised when investing in BDCs, particularly those with sector concentration or high management fees [5][6] BDC Performance and Risks - TriplePoint Venture Growth BDC Corp. (TPVG) has a yield of 16.6% but has seen a total return decline of 15% this year, despite the tech sector's overall increase of over 21% [6][7] - Goldman Sachs BDC (GSBD) has underperformed the S&P 500 and charges high management fees, totaling approximately 3.9% on $1.5 billion in assets [8][9] - GSBD's investment income for the first half of 2025 was $94.1 million, yielding a 12.4% annualized return, which is insufficient to fully cover its 12.9% dividend yield [12][13] Alternative Investment Options - The Columbia Seligman Premium Technology Growth Fund (STK) has outperformed both the S&P 500 and GSBD, offering a stable 5% dividend that has never been cut [15] - STK is currently trading at a 5.3% discount to its net asset value, presenting a buying opportunity for investors [16] - Compared to BDCs, STK offers fewer risks and potentially higher returns, making it a compelling alternative for income-focused investors [17]

Group 1 - The company emphasizes the importance of closed-end funds for identifying directional and arbitrage opportunities due to market price deviations [1] - BDC bonds are highlighted as attractive investment opportunities, outperforming BDC common equity, with multiple publications supporting this trend [2] Group 2 - The service provided by the company includes frequent picks for mispriced preferred stocks and baby bonds, along with weekly reviews of over 1200 equities and IPO previews [2]