Sixth Street Specialty Lending (TSLX) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Sixth Street Specialty Lending

NYSE•Financial Services•Asset Management

$18.38+0.07(<0.01%)Market closed

Market Cap

$1.73B

P/E

19.4x

P/S

4.2x

P/B

1.1x

Sixth Street Specialty Lending, Inc. (NYSE: TSLX) is a business development company. The fund provides senior secured loans (first-lien, second-lien, and unitranche), unsecured loans, mezzanine debt, and investments in corporate bonds and equity securities and structured products, non-control structured equity, and common equity with a focus on co-investments for organic growth, acquisitions, market or product expansion, restructuring initiatives, recapitalizations, growth capital, buyout, and refinancing. The fund invests in business services, software & technology, healthcare, energy, consumer & retail, manufacturing, industrials, royalty related businesses, education, and specialty finance. The fund seeks to finance and lending to middle market companies principally located in the United States. The fund invests in companies with enterprise value between $50 million and $1000 million or more and EBITDA between $10 million and $250 million. The debt transaction size is between $15 million and $350 million. The fund invests across the spectrum of the capital structure and can arrange syndicated transactions of up to $500 million and hold sizeable positions within its credits.

How this company scores

WeakMetricSide Score: 32/100

Strongest: Profitability (12/25); weakest: Growth (1/25).

Profitability12/25

Growth1/25

Balance Sheet & Red Flags7/25

Cash & Earnings Quality12/25

Strengths

Strong marginsCash-backed earnings

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 19.4x5y range 7.3x – 19.4x

Currently above its 13-quarter median.

P/S · 4.2x5y range 3.1x – 4.7x

Currently near its 13-quarter median.

P/B · 1.1x5y range 1.0x – 1.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Earnings Quality

Red Flag

Free cash flow has been negative in 4 of the last 8 quarters — earnings are not translating to cash.

Revenue Decline

Red Flag

Revenue declined in 6 of the last 7 quarters — persistent contraction signals a fundamental problem.

Price & Volume

Market Cap $1.73B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $408.93M
Q. Revenue: $97.84M
TTM EBITDA: $194.08M
TTM Op. Income: $187.09M
Q. Op. Income: $42.19M
TTM Net Income: $89.04M
Q. Net Income: $40.51M
EPS: $0.43
Shares Out.: $95.02M

$408.93M in TTM revenue declined 13.8% YoY, reaching $97.84M last quarter. TTM EBITDA of $194.08M and TTM operating income of $187.09M show growth is flowing through to the bottom line. TTM net income of $89.04M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has fallen for 6 consecutive quarters — a weakening trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 44.9%
Op. Margin: 43.1%
Net Margin: 41.4%

Op. margin of 43.1% is down 2.2% YoY — costs are rising relative to revenue. Net margin at 41.4% Across the last 8 quarters, operating margin has fallen for 2 consecutive quarters — a weakening trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 19.4x
P/S Ratio: 4.2x
P/B Ratio: 1.1x

At 19.4x P/E, the stock trades within typical market levels. P/S of 4.2x and P/B of 1.1x provide additional context. Use the growth and margin sections to judge whether the multiple is justified. Across the last 8 quarters, P/E has risen for 3 consecutive quarters — a weakening trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $3.54B
Cash: $193.56M
Long-Term Debt: $1.92B
Book Value: $1.55B
D/E Ratio: 1.2
Debt/EBITDA: 43.8

With $3.54B in assets and $1.92B in long-term debt, D/E is 1.2and book value is $1.55B — moderate leverage. Across the last 8 quarters, debt/equity has risen for 2 consecutive quarters — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $68.35M
TTM Free Cash Flow: $103.45M
FCF Margin: 25.3%
FCF / Net Income: 1.2

TTM FCF of $103.45M on $68.35M in operating cash flow. The FCF / Net Income ratio of 1.2x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 2 consecutive quarters — a weakening trend.