TSLX Q4 Earnings and Revenues Beat Expectations
Earnings Performance and Market Outlook for Sixth Street
Sixth Street (TSLX) recently released its quarterly earnings, reporting $0.52 per share, which exceeded the Zacks Consensus Estimate of $0.50 per share. This result marks a slight improvement compared to the previous year's earnings of $0.61 per share. These figures have been adjusted for non-recurring items.
The quarterly report represents an earnings surprise of +4.00%. A quarter ago, the company was expected to post earnings of $0.52 per share, but it actually delivered $0.53, resulting in a surprise of +1.92%. Over the past four quarters, the company has surpassed consensus EPS estimates on every occasion.
As part of the Zacks Financial - SBIC & Commercial Industry, Sixth Street reported revenues of $108.2 million for the quarter ended December 2025. This figure surpassed the Zacks Consensus Estimate by 0.09%, although it is lower than the year-ago revenue of $123.7 million. The company has exceeded consensus revenue estimates twice in the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will largely depend on management's commentary during the earnings call.
Since the start of the year, Sixth St shares have declined by approximately 7.4%, while the S&P 500 has gained 1.4%.
What Comes Next for Sixth Street?
Despite underperforming the market so far this year, investors are keenly interested in what lies ahead for the stock. While there are no definitive answers, one reliable measure that can help address this question is the company's earnings outlook. This includes current consensus earnings expectations for the coming quarters as well as how these expectations have evolved recently.
Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or rely on tools like the Zacks Rank, which has a proven track record of leveraging the power of earnings estimate revisions.
Before this earnings release, the estimate revisions trend for Sixth St was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Therefore, the shares are expected to perform in line with the market in the near future.
Investors should keep an eye on how estimates for the coming quarters and the current fiscal year evolve in the days ahead. The current consensus EPS estimate for the next quarter is $0.50 on $105.11 million in revenues, while for the current fiscal year, it stands at $2.00 on $414.66 million in revenues.
It’s also important to consider the outlook for the industry, as it can significantly impact the performance of the stock. In terms of the Zacks Industry Rank, the Financial - SBIC & Commercial Industry is currently in the top 34% of the 250 plus Zacks industries. Research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Related Stock: Carlyle Secured Lending, Inc.
Carlyle Secured Lending, Inc. (CGBD), another stock in the same industry, has yet to report results for the quarter ended December 2025. The results are expected to be released on February 24.
The company is anticipated to post quarterly earnings of $0.38 per share in its upcoming report, representing a year-over-year decline of -19.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Carlyle Secured Lending, Inc.'s revenues are expected to reach $45.58 million, up 16.2% from the year-ago quarter.
