Goldman Sachs BDC Reports Third Quarter 2025 Results and Declares Base and Supplemental Dividends
Goldman Sachs BDC, Inc. (NYSE: GSBD) (“GSBD” or the “Company”) has released its financial results for the quarter ended September 30, 2025, in conjunction with the filing of its Form 10-Q with the U.S. Securities and Exchange Commission. The results highlight continued income generation and disciplined portfolio management, even as selective credit pressures and market conditions influenced net asset value and certain investment performance metrics during the quarter.
Strong Income Generation and Quarterly Earnings
For the third quarter of 2025, GSBD reported net investment income (NII) and adjusted net investment income of $0.40 per share, supporting an annualized net investment income yield on book value of 12.5%. The Company reported earnings per share of $0.22, reflecting the impact of realized and unrealized losses during the period.
The Company’s net asset value (NAV) per share declined to $12.75 as of September 30, 2025, compared to $13.02 at the end of the prior quarter, representing a 2.1% decrease. This shift was primarily driven by valuation mark-downs in select portfolio holdings, offset in part by continued income contributions from the majority of the loan book.
Diversified Portfolio with Significant Senior Secured Exposure
As of September 30, 2025, GSBD’s total investments at fair value and unfunded commitments were reported at $3.83 billion, diversified across 171 portfolio companies within 40 distinct industries. This Goldman level of industry and borrower diversification reflects the Company’s ongoing focus on middle-market lending and risk management through broad exposure across the private credit universe.
The portfolio composition remained predominantly weighted toward senior secured positions, with:
- 98.2% in senior secured debt, and
- 96.7% specifically in first-lien senior secured loans.
This heavy allocation to first-lien positions continues to be a defining aspect of GSBD’s investment strategy, Goldman providing enhanced downside protection relative to subordinated or unsecured financing structures.
Investment Activity During the Quarter
The Company recorded $470.6 million in new investment commitments during the third quarter, of which $266.9 million was funded at closing. Goldman GSBD also funded $47.7 million of previously committed obligations.
These deployments were offset by sales and repayment activity totaling $374.4 million, driven by both voluntary borrower repayments and refinancing transactions. As a result,Goldman net funded investment activity for the quarter was $(59.8) million, indicating a slight net reduction in portfolio size.
New investment commitments were diversified across 13 new portfolio companies and 14 existing company relationships, demonstrating both new origination traction and ongoing support for existing holdings.
Non-Accrual and Credit Portfolio Performance
During the quarter, the Company’s first-lien position in Vardiman Black Holdings, LLC (operating as Specialty Dental Brands) was moved to non-accrual status due to borrower underperformance. By quarter-end:
- Eight portfolio companies were categorized as non-accrual, representing:
- 1.5% of total investments at fair value
- 2.5% at amortized cost
Though the non-accrual balance remains limited, GSBD continues to monitor credit developments closely, reflecting a selective increase in credit risk across portions of the middle market.
Balance Sheet, Leverage, and Capital Structure
GSBD’s net debt-to-equity ratio rose slightly to 1.17x at September 30, 2025, compared to 1.12x at June 30, 2025. The Company continues to operate within its target leverage range.
As of quarter-end, the Company had $1.85 billion in total debt, consisting of:
| Debt Instrument | Amount Outstanding | Type |
|---|---|---|
| Senior Secured Revolving Credit Facility | $553.0M | Secured |
| Unsecured Notes Due 2026 | $500.0M | Unsecured |
| Unsecured Notes Due 2027 | $400.0M | Unsecured |
| Unsecured Notes Due 2030 | $400.0M | Unsecured |
Approximately 70.2% of total debt was unsecured, providing long-term financing flexibility and reducing collateral encumbrance, while 29.8% was secured.
GSBD reported a weighted average interest rate of 5.37% across its debt capital for the third quarter. The Company also reported $147.9 million in cash and cash equivalents and $1.14 billion in remaining borrowing capacity under its revolving credit facility.
Dividends: Base and Supplemental Distributions Continue
In February 2025, GSBD adopted a new dividend framework, establishing:
- A Base Dividend of $0.32 per share per quarter, and
- A Supplemental Dividend equal to at least 50% of net investment income earned above the Base Dividend.
Under this framework, the Board has:
- Declared a fourth quarter 2025 Base Dividend of $0.32 per share, payable to shareholders of record as of December 31, 2025.
- Declared a third quarter 2025 Supplemental Dividend of $0.04 per share, payable on or about December 15, 2025, to shareholders of record as of November 28, 2025.
After giving effect to the supplemental distribution, adjusted NAV per share for the third quarter stood at $12.71.
Share Repurchase Activity
On June 13, 2025, the Company adopted a Rule 10b5-1 share repurchase plan, authorizing up to $75 million in common stock repurchases when shares trade below NAV.
During the quarter, GSBD Goldman repurchased 2,136,943 shares at a total cost of $25.1 million, including transaction expenses. The repurchase strategy aims to enhance shareholder value by acquiring shares at a discount to NAV, which is accretive to book value.
Portfolio Trends and Borrower Fundamentals
Portfolio data as of September 30, 2025 shows:
- Weighted average borrower leverage: 5.8x net debt / EBITDA
- Weighted average interest coverage: 1.9x
- Median borrower EBITDA: $70.85 million
Approximately 99.4% of performing debt investments bore floating interest rates, positioning GSBD to benefit from higher reference rates, though also increasing borrower interest expense sensitivity.
Goldman Sachs BDC’s third quarter results demonstrate continued strong net investment income generation and a predominantly senior secured, first-lien-weighted portfolio designed to mitigate downside risk. While NAV Goldman declined due to valuation pressures and select non-accrual developments, dividend distributions continued in accordance with the Company’s shareholder return framework, supported by a stable income profile, diversified investment book, and strong liquidity position.
The Company remains Goldman focused on disciplined portfolio management, selective capital deployment, credit monitoring, and maintaining a balanced leverage and capital structure as market conditions evolve.
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