Goldman Sachs BDC(US:GSBD)2025-08-07 20:40PART I FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements for Goldman Sachs BDC, Inc. as of June 30, 2025, along with management's discussion and analysis, market risk disclosures, and controls and procedures Financial Statements (Unaudited) This section presents the unaudited consolidated financial statements for Goldman Sachs BDC, Inc. as of June 30, 2025, including statements of assets and liabilities, operations, changes in net assets, and cash flows, along with detailed schedules of investments and accompanying notes Consolidated Statements of Assets and Liabilities This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and net assets as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in thousands, except per share data) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | Total Investments, at fair value | $3,264,506 | $3,475,258 | | Total Assets | $3,410,238 | $3,603,383 | | Total Liabilities | $1,896,849 | $2,030,683 | | Total Net Assets | $1,513,389 | $1,572,700 | | Net Asset Value per share | $13.02 | $13.41 | - Total assets decreased to $3.41 billion as of June 30, 2025, from $3.60 billion at the end of 2024, with liabilities also decreasing to $1.90 billion from $2.03 billion12 - Net asset value (NAV) per share declined to $13.02 at the end of Q2 2025 from $13.41 at year-end 202412 Consolidated Statements of Operations This statement details the company's revenues, expenses, and net increase or decrease in net assets from operations for the three and six months ended June 30, 2025 and 2024 Quarterly and YTD Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $90,970 | $108,617 | $187,910 | $220,160 | | Total Expenses | $45,611 | $40,416 | $91,615 | $90,023 | | Net Investment Income After Taxes | $44,453 | $66,958 | $94,067 | $127,818 | | Net Realized and Unrealized Gains (Losses) | $(5,164) | $(121,392) | $(23,153) | $(139,770) | | Net Increase (Decrease) in Net Assets from Operations | $39,289 | $(54,213) | $70,842 | $(11,761) | | Basic and Diluted Earnings (Loss) per Share | $0.34 | $(0.47) | $0.60 | $(0.10) | - Total investment income for the three and six months ended June 30, 2025, was $91.0 million and $187.9 million, respectively, a decrease from $108.6 million and $220.2 million in the prior-year periods15 - The company reported a net increase in net assets from operations of $39.3 million for Q2 2025, a significant turnaround from a net decrease of $54.2 million in Q2 2024, primarily due to a substantial reduction in net realized and unrealized losses15 Consolidated Statements of Changes in Net Assets This statement outlines the changes in the company's net assets, including contributions from operations, distributions to stockholders, and stock repurchases for the six months ended June 30, 2025 and 2024 - For the six months ended June 30, 2025, net assets decreased by $59.3 million, resulting from a $70.8 million increase from operations, offset by $118.0 million in distributions to stockholders and $12.1 million in common stock repurchases18 - Distributions per share for the six months ended June 30, 2025, totaled $1.01, an increase from $0.90 in the same period of 202418 - The company repurchased $12.1 million of its common stock in the first six months of 2025, a capital transaction not present in the same period of 202418 Consolidated Statements of Cash Flows This statement details the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $308,328 | $(114,733) | | Net Cash from Financing Activities | $(262,258) | $124,037 | | Net Increase (Decrease) in Cash | $46,070 | $9,304 | - Net cash provided by operating activities was $308.3 million for the first half of 2025, a significant reversal from the $114.7 million used in the same period of 2024, largely driven by higher proceeds from sales of investments and principal repayments ($507.3 million in 2025 vs. $333.5 million in 2024)21 - Financing activities used $262.3 million in cash, primarily due to net debt repayments of $131.5 million and distributions paid of $115.0 million, contrasting with the prior year period which saw net proceeds from stock issuance and net borrowings21 Consolidated Schedules of Investments This section provides a detailed breakdown of the company's investment portfolio by type, industry, and geography as of June 30, 2025 Portfolio Composition by Investment Type (June 30, 2025) | Investment Type | Fair Value ($) | % of Total | | :--- | :--- | :--- | | 1st Lien/Senior Secured Debt | $2,944,447 | 90.2% | | 1st Lien/Last-Out Unitranche | $187,336 | 5.7% | | 2nd Lien/Senior Secured Debt | $49,359 | 1.5% | | Preferred Stock | $41,230 | 1.3% | | Common Stock | $33,455 | 1.0% | | Unsecured Debt | $8,281 | 0.3% | | Warrants | $398 | 0.0% | | Total | $3,264,506 | 100.0% | Top 5 Industry Concentrations by Fair Value (June 30, 2025) | Industry | % of Fair Value | | :--- | :--- | | Software | 19.9% | | Financial Services | 10.8% | | Health Care Providers & Services | 9.3% | | Professional Services | 8.2% | | Health Care Technology | 7.6% | - The investment portfolio is heavily concentrated in senior secured debt, with 1st Lien/Senior Secured Debt and 1st Lien/Last-Out Unitranche loans comprising approximately 95.9% of the portfolio's fair value as of June 30, 2025184 - Geographically, the portfolio is overwhelmingly focused on the United States, which represents 95.8% of the total fair value of investments185 Notes to the Consolidated Financial Statements This section provides additional information and explanations for the figures presented in the financial statements, including details on non-accrual investments, management fees, and incentive fees - As of June 30, 2025, investments in seven portfolio companies were on non-accrual status, representing 2.5% of the total portfolio at amortized cost and 1.6% at fair value136 - The company pays a management fee at an annual rate of 1.00% of average gross assets (excluding cash), amounting to $8.4 million for Q2 2025161162 - The incentive fee has two parts: one based on income (17.5% over a 1.75% quarterly hurdle) and one on capital gains (17.5%), with the income-based incentive fee for Q2 2025 being $8.5 million163171172 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's performance, focusing on its strategy of direct origination of secured debt to U.S. middle-market companies, covering portfolio composition, operating results, liquidity, capital resources, and leverage Portfolio and Investment Activity This section details the composition, credit quality, and investment activity of the company's portfolio, including new commitments and proceeds from sales Portfolio Quality Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of portfolio companies | 162 | 164 | | Weighted avg. yield on total portfolio (at fair value) | 11.4% | 13.2% | | Investments on non-accrual (at amortized cost) | 2.5% | 4.5% | | Weighted avg. leverage (net debt/EBITDA) | 5.8x | 6.2x | | Median Portfolio Company EBITDA | $66.69 million | $66.14 million | - The portfolio's weighted average yield at fair value decreased to 11.4% from 13.2% at year-end 2024, primarily due to the restructuring of the Streamland Media Midco LLC investment259 - Credit quality improved, with non-accrual investments decreasing to 2.5% of the portfolio at amortized cost, down from 4.5% at year-end 2024269 - For Q2 2025, the company committed $248.1 million in new investments across 9 new and 6 existing portfolio companies, a decrease from $440.2 million in Q2 2024, with proceeds from sales and repayments totaling $288.8 million270 Results of Operations This section analyzes the key drivers of the company's operating results, including investment income, expenses, and realized and unrealized gains or losses for the reporting period - Total investment income for Q2 2025 was $91.0 million, down from $108.6 million in Q2 2024, primarily due to a smaller portfolio size and a decline in base interest rates273280 - Net expenses for Q2 2025 were $45.6 million, up from $40.4 million in Q2 2024, mainly due to an increase in incentive fees from $0 to $8.5 million, partially offset by lower interest expenses273279281 - Net realized losses for the six months ended June 30, 2025, were $125.7 million, primarily driven by restructurings of investments in Khoros, LLC ($70.1 million loss) and Streamland Media Midco LLC ($20.7 million loss), and the exit of Animal Supply ($22.9 million loss)282 - Net change in unrealized appreciation for the six months ended June 30, 2025, was $106.9 million, largely due to the reversal of prior unrealized depreciation on restructured investments like Khoros and Streamland284286 Financial Condition, Liquidity and Capital Resources This section assesses the company's financial health, including its asset coverage ratio, debt outstanding, available credit, and unfunded commitments - As of June 30, 2025, the company's asset coverage ratio was 184%, well above the regulatory requirement of 150%198288 - The company had total debt outstanding of $1.80 billion with $792.5 million available for borrowing under its $1.70 billion revolving credit facility198 - On June 13, 2025, the company entered into a new 10b5-1 stock repurchase plan to buy back up to $75 million of its common stock when it trades below NAV, repurchasing 1,047,183 shares for $12.1 million in June 2025227295334 - As of June 30, 2025, the company had $531.1 million in unfunded commitments to portfolio companies, an increase from $493.0 million at year-end 2024309 Quantitative and Qualitative Disclosures About Market Risk This section details the company's exposure to market risks, primarily interest rate risk, and provides a sensitivity analysis of its impact on net investment income - The company's main financial market risk is from changes in interest rates, with 99.4% of its performing debt portfolio being floating-rate as of June 30, 2025, making its income sensitive to rate changes325326 Interest Rate Sensitivity Analysis (Annual Impact on Net Income, in millions) | Basis Point Change | Net Income Impact | | :--- | :--- | | Up 100 bps | $16.76 | | Up 50 bps | $8.38 | | Down 50 bps | $(8.38) | | Down 100 bps | $(16.76) | Controls and Procedures This section confirms management's evaluation of the company's disclosure controls and procedures, concluding their effectiveness, and reports no material changes to internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025329 - There were no material changes in the company's internal control over financial reporting during the quarter330 PART II OTHER INFORMATION This section covers other required disclosures, including legal proceedings, risk factors, unregistered sales of equity securities, and other miscellaneous items Legal Proceedings This section confirms that the company is not currently involved in any material legal proceedings - The company reports that it is not currently a party to any material legal proceedings331 Risk Factors This section states that there have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors since the last annual report on Form 10-K332 Unregistered Sales of Equity Securities and Use of Proceeds This section confirms no unregistered equity sales and details the company's common stock repurchases under its 10b5-1 plan during the quarter - The company initiated a 10b5-1 stock repurchase plan on June 13, 2025, authorizing up to $75 million in share buybacks334 Share Repurchases in Q2 2025 | Month | Total Shares Repurchased | Average Price Paid per Share | Total Value ($ millions) | | :--- | :--- | :--- | :--- | | June | 1,047,183 | $11.55 | $12.10 | Other Items (3, 4, 5, 6) This section confirms no defaults on senior securities, no mine safety disclosures, no director or officer 10b5-1 trading arrangement changes, and lists the exhibits filed - Item 3 (Defaults Upon Senior Securities) and Item 4 (Mine Safety Disclosures) are not applicable335336 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement in Q2 2025338