Goldman Sachs BDC, Inc.

GSBD reported second-quarter GAAP and adjusted after-tax net investment income of $42.2 million and $41.5 million, versus $24.8 million and $24.7 million in Q1. On a per-share basis, GAAP NII was $0.38, and total investment income rose to $83.7 million from $78.8 million. NAV was $12.06 per share, down modestly from $12.17 in the prior quarter. Management said net investment income covered the dividend, and undistributed taxable income was about $100.3 million, or $0.89 per share. For guidance, the board declared a Q3 2026 base dividend of $0.32 per share and a Q2 2026 supplemental dividend of $0.03 per share; management said it intends to maintain the $0.32 base dividend in the near term while continuing to assess coverage, leverage, rates, and spreads. They also noted a new 10b5-1 repurchase program authorizing up to 75 million of common shares, subject to leverage and other limits.

Vivek Bantwal framed the quarter around a still-muted but improving market for direct lending. He said M&A and sponsor activity were subdued in Q2, but deal flow has picked up post quarter-end, which should help GSBD deploy into a wider-spread environment. He emphasized that the firm is benefiting from tighter capital availability in the market, which is translating into stronger lending terms, and said the strategy is to stay selective, reduce leverage, and take advantage of the platform’s scale.

Stan Matuszewski highlighted that GAAP and adjusted after-tax NII rose sharply to $42.2 million and $41.5 million, helped by higher investment income and no incentive fee expense in the quarter. He said the lack of incentive fee reflected the 3-year total return look-back, and that this structure may make the next couple of quarters more muted on that line. He also noted approximately $796 million of borrowing capacity remaining under the revolver, about $1.9 billion of outstanding debt across the financing package, and that net debt-to-equity was 1.35x at quarter end but now below 1.25x, enabling flexibility for repurchases and new investments.

Analysts focused on whether the pickup in M&A would translate into more originations, and management said there is a lag between signing and funding, but they are already seeing more sponsor activity and expect more to do now that leverage is back near target. Questions also centered on software, where management said activity remains quiet because of bid-ask gaps and AI-related uncertainty around terminal value, though stronger incumbent software names are performing well. On leverage and buybacks, management said leverage is now closer to 1.2x and that buybacks could restart, but capital will likely be split between repurchases and new investments.