Goldman Sachs BDC(GSBD) - 2025 Q2 - Quarterly Results

Company Overview and Quarterly Highlights Goldman Sachs BDC, Inc. reported Q2 2025 financial results, declared dividends, and provided an overview of its operations Company Release and Q2 2025 Overview GSBD reported Q2 2025 financial results and declared a Q3 base dividend of $0.32, a special dividend of $0.16, and a Q2 supplemental dividend of $0.03 per share - GSBD reported Q2 2025 financial results and filed its 10-Q with the SEC[2] - Declared Q3 2025 base dividend of $0.32 per share and special dividend of $0.16 per share[3] - Declared Q2 2025 supplemental dividend of $0.03 per share[3] Quarterly Financial and Operational Highlights NAV per share decreased 1.4% to $13.02, with net investment income at $0.38 and adjusted net investment income at $0.37 per share, alongside a $131.5 million net investment outflow and improved debt-to-equity ratio Key Financial Metrics (Quarter-over-Quarter) | Metric | Q2 2025 | Q1 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Net investment income per share | $0.38 | N/A | N/A | | Adjusted net investment income per share | $0.37 | N/A | N/A | | Earnings per share | $0.34 | N/A | N/A | | NAV per share | $13.02 | $13.20 | -1.4% | | Ending net debt-to-equity ratio | 1.12x | 1.16x | -0.04x | - As of June 30, 2025, total investments and commitments at fair value were $3,795.6 million, comprising 162 portfolio companies across 40 industries, with 97.4% in senior secured debt (95.9% in first lien investments)[3] - Net investment outflow of $131.5 million, primarily due to new investment commitments of approximately $247.9 million ($126.7 million funded) and total sales and repayment activities of $288.8 million[3] - As of June 30, 2025, non-accrual investments represented 1.6% and 2.5% of the total portfolio at fair value and amortized cost, respectively[3] - The company repurchased 1,047,183 shares for $12.1 million during the quarter[3] About Goldman Sachs BDC, Inc. GSBD is a BDC externally managed by Goldman Sachs Asset Management, investing in US middle-market companies through secured and unsecured debt, plus equity, to generate current income and capital appreciation - GSBD is a specialized finance company regulated as a Business Development Company (BDC)[21] - Primarily invests in U.S. middle-market companies[21] - Aims to generate current income and capital appreciation through directly originated secured and unsecured debt, and select equity investments[21] Financial Performance Analysis Analysis of Q2 2025 financial results, including investment income, expenses, and net asset changes Selected Financial Highlights Q2 2025 total investment income decreased to $91.0 million from $96.9 million due to a smaller portfolio, while net expenses before taxes slightly declined to $45.6 million, driven by lower interest costs offset by higher incentive fees Selected Financial Highlights (Quarter-over-Quarter) | Metric (in $ millions, except per share data) | June 30, 2025 | March 31, 2025 | | :------------------------------------------ | :------------ | :------------- | | Investment portfolio, at fair value | $3,264.5 | $3,384.7 | | Total debt outstanding | $1,803.1 | $1,874.9 | | Net assets | $1,513.4 | $1,548.0 | | Ending net debt to equity | 1.12x | 1.16x | | Net asset value per share | $13.02 | $13.20 | | Total investment income | $91.0 | $96.9 | | Net investment income after taxes | $44.5 | $49.6 | | Net realized and unrealized gains (losses) | $(5.2) | $(18.0) | | Net investment income per share | $0.38 | $0.42 | | Adjusted net investment income per share | $0.37 | $0.41 | - Total investment income decreased by $5.9 million quarter-over-quarter due to a smaller portfolio[4] - Net expenses before taxes decreased by $0.4 million quarter-over-quarter, primarily due to lower interest and other debt expenses, partially offset by increased incentive fees[5] Consolidated Statements of Operations Total investment income for Q2 2025 was $91.0 million, down from $108.6 million year-over-year, with net investment income after taxes at $44.5 million, and a net increase in net assets from operations of $39.3 million, significantly improved from a prior year decrease Consolidated Statements of Operations (Quarter-over-Quarter and Year-over-Year) | Metric (in thousands) | Q2 2025 | Q2 2024 | 6M 2025 | 6M 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 net investment income per share | $0.38 | $0.59 | $0.80 | $1.14 | | Basic and diluted earnings (loss) per share | $0.34 | $(0.47) | $0.60 | $(0.10) | - Net realized and unrealized losses significantly decreased from $121.4 million in Q2 2024 to $5.2 million in Q2 2025[20] - Incentive fees increased from zero in Q2 2024 to $8.5 million in Q2 2025[20] Investment Portfolio & Activity Overview of Q2 2025 investment activities, portfolio composition, and key performance metrics Investment Activity Summary Q2 2025 saw $247.9 million in new First Lien/Senior Secured Debt commitments ($126.7 million funded) and $288.8 million in sales and repayments, resulting in a net investment outflow of $131.5 million Investment Activity by Type (Q2 2025) | Investment Type | New Investment Commitments ($ Millions) | % of Total Commitments | Sales and Repayments ($ Millions) | % of Total Sales/Repayments | | :------------------------ | :------------------------------------ | :--------------------- | :-------------------------------- | :-------------------------- | | 1st Lien/Senior Secured Debt | $247.9 | 100.0% | $279.1 | 96.6% | | Unsecured Debt | — | — | $9.4 | 3.3% | | Total | $247.9 | 100.0% | $288.8 | 100.0% | - New investment commitments involved nine new and six existing portfolio companies[6] - Sales and repayments were primarily driven by full repayments and exits from ten portfolio companies[6] Portfolio Composition and Metrics As of June 30, 2025, the portfolio comprised 162 companies, with 90.2% in First Lien/Senior Secured Debt by fair value, a weighted average yield of 12.0%, and non-accrual investments at 1.6% of fair value Portfolio Composition (June 30, 2025) | Investment Type | $ Millions (Fair Value) | % of Total | | :------------------------ | :---------------------- | :--------- | | 1st Lien/Senior Secured Debt | $2,944.4 | 90.2% | | 1st Lien/Last-Out Unitranche | $187.3 | 5.7% | | 2nd Lien/Senior Secured Debt | $49.4 | 1.5% | | Unsecured Debt | $8.3 | 0.3% | | Preferred Stock | $41.2 | 1.3% | | Common Stock | $33.5 | 1.0% | | Warrants | $0.4 | <0.1% | | Total | $3,264.5 | 100.0% | Selected Portfolio Metrics (Quarter-over-Quarter) | Metric | June 30, 2025 | December 31, 2024 | | :---------------------------------------------------------------- | :------------ | :---------------- | | Number of portfolio companies | 162 | 164 | | Percentage of performing debt bearing a floating rate | 99.4% | 99.4% | | Weighted average yield on debt and income producing investments, at amortized cost | 10.7% | 11.2% | | Weighted average yield on debt and income producing investments, at fair value | 12.0% | 14.1% | | Weighted average leverage (net debt/EBITDA) | 5.8x | 6.2x | | Weighted average interest coverage | 1.8x | 1.8x | | Median EBITDA | $66.69 million | $66.14 million | - As of June 30, 2025, non-accrual investments represented 1.6% and 2.5% of the total portfolio at fair value and amortized cost, respectively[7] Financial Position and Capital Management Review of the company's liquidity, capital resources, and consolidated balance sheet as of Q2 2025 Liquidity and Capital Resources As of June 30, 2025, total outstanding debt was $1,803.1 million with a 5.37% weighted average interest rate, $792.5 million available under the credit facility, $108.1 million in cash, and an improved net debt-to-equity ratio of 1.12x Debt and Liquidity (June 30, 2025) | Metric | Amount ($ Millions) | | :------------------------------------ | :------------------ | | Total debt outstanding | $1,803.1 | | Revolving Credit Facility outstanding | $903.1 | | Unsecured notes due 2026 | $500.0 | | Unsecured notes due 2027 | $400.0 | | Availability under Revolving Credit Facility | $792.5 | | Cash and cash equivalents | $108.1 | | Combined weighted average interest rate on debt | 5.37% | | Ending net debt-to-equity leverage ratio | 1.12x | - As of June 30, 2025, of the approximately $1,803.1 million in outstanding debt, 49.9% was unsecured and 50.1% was secured[3] Consolidated Statements of Assets and Liabilities As of June 30, 2025, total investments at fair value were $3,264.5 million, down from $3,475.3 million, with total assets decreasing to $3,410.2 million, total liabilities to $1,896.8 million, and net assets at $1,513.4 million, resulting in a NAV per share of $13.02 Consolidated Statements of Assets and Liabilities (Year-over-Year) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total investments, at fair value | $3,264,506 | $3,475,258 | | Cash | $108,036 | $61,795 | | Total assets | $3,410,238 | $3,603,383 | | Debt (net of debt issuance costs) | $1,797,397 | $1,926,452 | | 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 | - Cash significantly increased from $61.8 million as of December 31, 2024, to $108.0 million as of June 30, 2025[19] - Paid-in capital in excess of par value decreased from $1,946.3 million to $1,934.1 million[19] Supplemental Information Additional details on financial footnotes, non-GAAP measures, investor relations, and forward-looking statements Endnotes and Non-GAAP Measures Endnotes clarify financial calculations, accounting for MMLC merger purchase discounts, non-GAAP measures like adjusted net investment income, and definitions for portfolio statistics such as weighted average leverage and interest coverage - Non-GAAP financial measures (adjusted net investment income per share, adjusted net investment income after taxes, adjusted net realized and unrealized gains/losses) are provided to exclude the full impact of the MMLC merger purchase discount[11] - Adjusted NAV per share is provided to account for declared and unpaid supplemental distributions, aligning with earnings for the relevant quarter[12] - Definitions for weighted average leverage (net debt/EBITDA) and interest coverage are provided, emphasizing the exclusion of certain investments not applicable to these metrics[14][15][16] Conference Call and Investor Relations Goldman Sachs BDC, Inc. will host an earnings conference call on Friday, August 8, 2025, at 9:00 AM ET, with participation details and access to presentation slides and archived replays provided - The earnings conference call is scheduled for Friday, August 8, 2025, at 9:00 AM ET[9] - Investors can access the presentation slides and archived replay in the 'Investor Resources' section of the company's website[9] Forward-Looking Statements This section contains a standard disclaimer for forward-looking statements, highlighting significant risks and uncertainties that may cause actual results to differ materially from expectations, with no obligation to update these statements - Press releases may contain forward-looking statements, identifiable by words such as 'may,' 'will,' 'should,' 'expect,' and 'anticipate'[22] - These statements involve significant risks and uncertainties, and actual results may differ materially from expectations[22] - The company undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[22]