Goldman Sachs BDC, Inc. (GSBD) reported fourth‑quarter 2025 results that included a net investment income of $0.37 per share, an annualized net investment income yield of 11.7% on book value, and a GAAP earnings‑per‑share of $0.21. Revenue for the quarter was $86.07 million, falling short of the consensus estimate of $86.85 million and marking a miss of roughly 0.9%. The net investment income beat the consensus estimate of $0.36, while the GAAP EPS fell short of the $0.36 estimate by $0.15.
The company declared a first‑quarter 2026 base dividend of $0.32 per share and a supplemental dividend of $0.03 per share for the fourth quarter of 2025, maintaining its high dividend yield in a lower‑rate environment. The dividend policy reflects confidence in the firm’s cash‑flow generation and its commitment to returning value to shareholders.
GSBD’s portfolio remains heavily weighted toward senior secured debt, with 98.4% of the portfolio in first‑lien positions. The net asset value per share as of December 31, 2025 was $12.64, a 0.9% decline from $12.75 at September 30, 2025. Nine portfolio companies were on non‑accrual status, including a first‑lien position in Pluralsight, Inc., reflecting credit‑quality concerns amid a tightening credit spread environment.
Management highlighted the impact of the 2022 reorganization on portfolio quality, noting that 57% of the portfolio benefits from the integration while 43% remains legacy. Co‑CEO David Miller emphasized that the firm committed approximately $1.2 billion in new commitments across 35 deals during the year, and CFO Stanley Matuszewski reported total portfolio investments at fair value of $3.3 billion with net assets of $1.4 billion.
The revenue miss is attributed to a decline in base interest rates and tightening credit spreads, which reduced the income generated from the loan portfolio. The net investment income beat is largely driven by a shift toward higher‑yield first‑lien investments and disciplined cost management, offsetting the impact of the revenue shortfall. While the GAAP EPS miss signals that non‑investment‑income items and one‑time charges weighed on earnings, the company’s dividend payout remains unchanged, underscoring management’s confidence in its cash‑flow resilience.
Analysts responded with mixed sentiment. Some downgraded the stock, citing the revenue miss and GAAP EPS shortfall, while others maintained coverage, noting the firm’s strong dividend policy and the strategic shift toward first‑lien, senior‑secured debt as a hedge against interest‑rate volatility.
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