Goldman Sachs BDC Reports Q2 2026 Results, Declares $0.35 Per-Share Dividend
Goldman Sachs BDC, Inc. (NYSE: GSBD) has reported its financial results for the second quarter ended June 30, 2026, highlighting continued investment income generation, changes in portfolio performance and a strong level of senior secured exposure. The company also announced its third-quarter 2026 base dividend and a supplemental dividend related to second-quarter earnings.
Goldman Sachs BDC, commonly referred to as GSBD, filed its Form 10-Q with the U.S. Securities and Exchange Commission alongside the financial results.
For the quarter ended June 30, 2026, GSBD reported net investment income of $0.38 per share. After excluding $0.01 per share related to purchase discount amortization associated with the merger, adjusted net investment income was $0.37 per share. Based on adjusted net investment income, the company generated an annualized net investment income yield on book value of approximately 12.3%.
Earnings per share for the quarter were $0.21.
The company’s net asset value, or NAV, declined modestly during the quarter. NAV per share stood at $12.06 as of June 30, compared with $12.17 at the end of the first quarter, representing a decline of approximately 0.9%.
Despite the movement in NAV, GSBD continued to maintain a broadly diversified investment portfolio, with total investments at fair value and unfunded commitments of approximately $3.63 billion at the end of June. The portfolio included investments across 173 companies and 39 industries.
Strong Investment Income During the Quarter
Goldman Sachs BDC generated total investment income of $83.7 million during the second quarter, compared with $78.8 million during the previous quarter ended March 31, 2026.
The increase was primarily attributed to certain investments returning to accrual status after experiencing improved operating performance. The restoration of income recognition from those investments contributed to the increase in overall investment income during the period.
Net investment income after taxes increased substantially to $42.2 million from $24.8 million in the previous quarter.
After accounting for $0.7 million of purchase discount amortization, adjusted net investment income after taxes was $41.5 million, compared with $24.7 million in the first quarter.
The improvement in investment income was accompanied by a significant decline in net expenses before taxes. GSBD reported net expenses before taxes of $40.7 million for the second quarter, down from $53.0 million during the first quarter.
The $12.3 million reduction in expenses was primarily related to a lower incentive fee. The change in the incentive fee reflected the performance of the company’s investment portfolio over the twelve quarters ended June 30, 2026, compared with the corresponding twelve-quarter period ended March 31.
On a per-share basis, net investment income rose to $0.38 from $0.22 in the previous quarter. Adjusted net investment income per share, excluding purchase discount amortization, was $0.37.
Investment Portfolio Remains Predominantly Senior Secured
GSBD ended the second quarter with a diversified portfolio designed primarily around senior secured lending.
As of June 30, the company’s investments at fair value totaled approximately $3.20 billion. Of this amount, $2.96 billion, or 92.8%, consisted of first-lien and senior secured debt.
An additional $132.2 million, or 4.1%, was invested in first-lien/last-out unitranche debt, while $55.1 million, or 1.7%, represented second-lien/senior secured debt.
The remaining portfolio consisted of approximately $8.6 million of unsecured debt, $20.2 million of preferred stock, $15.4 million of common stock and approximately $0.4 million of warrants.
Overall, senior secured investments represented 98.6% of the company’s portfolio, while first-lien investments accounted for 96.9%.
This structure reflects GSBD’s emphasis on credit investments that occupy senior positions in the capital structures of portfolio companies.
Investment Activity During the Second Quarter
GSBD reported approximately $12.9 million of new investment commitments during the second quarter. Of that amount, approximately $5.0 million was funded during the period.
The company also funded $114.3 million of previously unfunded commitments.
At the same time, sales and repayments totaled $145.9 million. As a result, the company recorded net funded investment activity of negative $26.6 million for the quarter.
New commitments were spread across seven existing portfolio companies, with two new investment commitments involving new portfolio companies.
First-lien and senior secured debt represented the overwhelming majority of new commitments. Approximately $11.9 million, or 92.2%, of new investment commitments consisted of first-lien/senior secured debt.
The remaining $1.0 million, representing 7.8% of new commitments, was allocated to first-lien/last-out unitranche investments.
Sales and repayments during the period were primarily associated with exits, partial repayments and refinancing activity involving investments in eight portfolio companies.
The activity demonstrates the ongoing rotation of GSBD’s portfolio as the company manages liquidity, evaluates credit opportunities and realises investments.
Portfolio Diversification Across 173 Companies
As of June 30, 2026, Goldman Sachs BDC’s investment portfolio consisted of 173 portfolio companies across 39 industries.
That compares with 171 portfolio companies at the end of December 2025, indicating a modest expansion in the number of businesses represented in the portfolio during the first half of the year.
The portfolio continues to have a strong floating-rate component. Approximately 98.9% of performing debt investments carried floating interest rates at the end of June, while approximately 1.1% carried fixed rates.
The high percentage of floating-rate debt provides the company with exposure to movements in interest rates, which can affect portfolio income depending on prevailing benchmark rates and contractual spreads.
The weighted average yield on debt and income-producing investments was 9.5% at amortized cost and 11.3% at fair value.
At the end of 2025, those figures were 9.9% and 10.9%, respectively.
The weighted average yield at fair value therefore increased during the period, while the yield at amortized cost declined modestly.
Portfolio Credit Metrics
GSBD’s portfolio companies reported a weighted average net debt-to-EBITDA leverage ratio of 6.2x as of June 30, compared with 5.9x at the end of December 2025.
The weighted average interest coverage ratio remained at 2.0x, unchanged from the year-end level.
Median EBITDA among portfolio companies increased to approximately $73.37 million from $71.75 million at the end of December 2025.
These metrics provide insight into the financial leverage and earnings capacity of the companies in GSBD’s investment portfolio.
The increase in weighted average leverage highlights the importance of continued monitoring of portfolio company performance, particularly in an environment where borrowing costs, economic conditions and refinancing requirements can affect highly leveraged businesses.
Changes in Non-Accrual Investments
GSBD also reported several changes involving investments on non-accrual status during the quarter.
The company’s second-lien/senior secured debt position in Chase Industries, Inc., doing business as Senneca Holdings, which had previously been on non-accrual status, was restructured during the period and subsequently returned to accrual status.
The company also reported changes involving another position in Chase Industries. A second-lien/senior secured debt investment that had previously been non-income producing was restructured into an income-producing position and was subsequently placed on non-accrual status.
Separately, GSBD’s first-lien/senior secured debt investment in Thrasio returned to accrual status following improved performance.
At the same time, two second-lien/senior secured debt investments in Wine.com Inc. were placed on non-accrual status because of financial underperformance.
As of June 30, GSBD had investments in 10 portfolio companies classified as being on non-accrual status.
Measured at fair value, investments on non-accrual status represented 2.9% of the total investment portfolio, down from 3.2% as of March 31.
However, when measured at amortized cost, non-accrual investments represented 5.0% of the portfolio, compared with 4.7% at the end of the first quarter.
The differing trends between fair-value and amortized-cost measures reflect changes in the valuation of individual investments and underline the importance of assessing portfolio credit quality using multiple measures.
Leverage and Balance Sheet Position
Goldman Sachs BDC ended the second quarter with a net debt-to-equity ratio of 1.35x, compared with 1.37x at the end of March.
The modest decline reflects the company’s balance sheet and investment activity during the quarter.
The company subsequently reported that, as of August 6, 2026, its net debt-to-equity ratio had declined below its target of 1.25x, primarily as a result of repayments and sales of investments.
This provides GSBD with additional balance-sheet flexibility as it evaluates future investment opportunities and manages its capital structure.
As of June 30, approximately $1.88 billion of aggregate principal debt was outstanding.
The debt consisted of approximately $679.6 million of borrowings under the company’s senior secured revolving credit facility, as well as $400 million of unsecured notes due in 2027, another $400 million of unsecured notes due in 2029 and $400 million of unsecured notes due in 2030.
Approximately 63.9% of the company’s outstanding debt was unsecured, while 36.1% was secured.
GSBD also maintained approximately $795.6 million of availability under its revolving credit facility and held approximately $50.7 million in cash and cash equivalents.
The combination of available revolver capacity and cash provides the company with liquidity to meet obligations and potentially fund new investment opportunities.
Goldman Sachs BDC Declares Dividends
One of the key announcements accompanying the second-quarter results was the declaration of GSBD’s third-quarter 2026 base dividend.
The company’s Board of Directors declared a base dividend of $0.32 per share, payable to shareholders of record as of September 30, 2026.
The Board also declared a supplemental dividend of $0.03 per share related to second-quarter 2026 earnings. That supplemental distribution is expected to be paid on or around September 15, 2026, to shareholders of record as of August 31, 2026.
Combined, the company’s announced base and supplemental distributions amount to $0.35 per share.
The supplemental dividend reflects the company’s ability to distribute additional earnings to shareholders beyond its regular base dividend.
After adjusting for the impact of the supplemental dividend associated with second-quarter earnings, adjusted NAV per share was $12.03 compared with reported NAV of $12.06.
During the previous quarter, the total distribution recorded per share was $0.35.
Share Repurchase Program
GSBD also continued to provide shareholders with a potential capital-return mechanism through its share repurchase program.
On May 6, 2026, the company’s Board approved and authorised a new 10b5-1 stock repurchase program.
Under the program, GSBD may repurchase up to $75 million of its common stock, subject to applicable limitations and conditions.
A 10b5-1 program can provide a structured mechanism for repurchasing shares during specified periods and under predetermined conditions.
For a business development company, share repurchases can potentially enhance shareholder value when shares trade at a discount to NAV, although actual repurchase activity depends on market conditions, regulatory requirements and other factors.
NAV Declines Modestly
GSBD’s NAV per share declined from $12.17 at March 31 to $12.06 at June 30, representing a 0.9% decrease.
Net assets stood at approximately $1.36 billion at the end of the quarter, compared with $1.37 billion at the end of the first quarter.
The change in NAV reflects the combined effects of investment performance, realised and unrealised gains and losses, distributions and other balance-sheet movements.
GSBD reported net realised and unrealised losses of approximately $18.6 million during the quarter, compared with losses of $38.4 million during the previous quarter.
After adjusting for the impact of purchase discount amortization, adjusted net realised and unrealised losses were approximately $17.9 million, compared with $38.3 million in the first quarter.
Although the portfolio generated losses during the quarter, the magnitude of the loss was significantly lower than in the previous period.
Goldman Sachs BDC enters the second half of 2026 with a diversified portfolio, significant liquidity and a substantial base of senior secured investments.
The company generated higher investment income during the second quarter, while lower incentive fees contributed to a substantial reduction in expenses. At the same time, the investment portfolio remained concentrated in senior secured debt, with first-lien investments representing the majority of assets at fair value.
The company’s credit profile remains an important area to monitor. While the percentage of non-accrual investments at fair value declined during the quarter, the ratio measured at amortized cost increased. Changes in individual portfolio companies, including the return of certain investments to accrual status and the placement of others on non-accrual status, demonstrate the ongoing credit management required across the portfolio.
The balance sheet also remains positioned to support future activity. With approximately $795.6 million of unused revolving credit capacity and $50.7 million in cash and cash equivalents at quarter-end, GSBD retains meaningful liquidity.
The company has also reduced its net debt-to-equity ratio below its 1.25x target as of August 6, following repayments and investment sales.
For shareholders, the declaration of the $0.32 third-quarter base dividend and $0.03 supplemental dividend provides a combined distribution of $0.35 per share based on the announced payments.
Overall, GSBD’s second-quarter results highlight a business balancing income generation, portfolio management, credit quality and shareholder distributions. With a $3.2 billion investment portfolio spanning 173 companies and 39 industries, a predominantly senior secured investment strategy and substantial liquidity, Goldman Sachs BDC remains focused on managing its portfolio while positioning its balance sheet for future investment opportunities.
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