GSBD's Q2 Net Assets Jump to $38.9M, Driven by Strong Investment Income

TL;DR

GSBD is crushing it with higher net assets and income, making it a solid buy for income-focused investors.

AI Summary

Goldman Sachs BDC, Inc. (GSBD) reported a net increase in net assets resulting from operations of $38.9 million, or $0.78 per share, for the three months ended June 30, 2025, a significant increase from $29.7 million, or $0.60 per share, in the prior quarter. Total investment income for the quarter was $66.5 million, up from $63.2 million in the previous quarter, driven by higher interest income from investments. The company's net investment income also saw an increase to $31.2 million, or $0.63 per share, compared to $29.7 million, or $0.60 per share, in the prior quarter. GSBD maintained a strong liquidity position with $100.0 million in cash and cash equivalents as of June 30, 2025. The fair value of its investment portfolio stood at $1.8 billion across 130 portfolio companies. Key risks include potential interest rate volatility impacting floating-rate investments and the credit quality of its diverse portfolio. The strategic outlook emphasizes continued investment in middle-market companies and active portfolio management to generate stable income.

Why It Matters

This strong performance from Goldman Sachs BDC, Inc. signals robust health in the private credit market, particularly for middle-market companies, which could attract more institutional and retail investor capital into the BDC sector. For investors, the increase in net assets and net investment income suggests a stable dividend outlook and potential for capital appreciation, making GSBD a potentially attractive income-generating investment. Employees benefit from the company's stability and growth, while customers (portfolio companies) gain continued access to crucial financing. In a competitive landscape, GSBD's ability to generate higher income and manage its portfolio effectively reinforces its position as a leading private credit provider, potentially putting pressure on smaller BDCs to demonstrate similar performance.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent exposure to interest rate fluctuations, as a significant portion of GSBD's portfolio consists of floating-rate investments. While rising rates can boost income, a reversal could negatively impact earnings. Additionally, the credit quality of its 130 portfolio companies, primarily middle-market businesses, introduces credit risk, although the diversity mitigates concentration risk.

Analyst Insight

Investors should consider GSBD for its attractive dividend yield and potential for stable income generation, given its strong Q2 performance. Monitor interest rate trends and the overall health of the middle-market sector, but the current filing suggests a well-managed portfolio capable of navigating market conditions.

Financial Highlights

net Income

$38.9M

eps

$0.78

revenue

$66.5M

total Assets

$1.8B

cash Position

$100.0M

revenue Growth

+5.2%

Key Numbers

• $38.9M — Net increase in net assets from operations (Increased from $29.7M in the prior quarter, indicating strong operational performance.)
• $0.78 — Net increase in net assets per share (Up from $0.60 per share in the prior quarter, showing improved per-share profitability.)
• $66.5M — Total investment income (Increased from $63.2M in the previous quarter, driven by higher interest income.)
• $31.2M — Net investment income (Rose from $29.7M in the prior quarter, reflecting efficient expense management relative to income.)
• $1.8B — Fair value of investment portfolio (Represents the total value of its investments across 130 companies, indicating significant asset base.)
• 130 — Number of portfolio companies (Demonstrates a diversified investment strategy, mitigating concentration risk.)
• $100.0M — Cash and cash equivalents (Provides strong liquidity for future investments and operational needs as of June 30, 2025.)

Key Players & Entities

• Goldman Sachs BDC, Inc. (company) — filer of the 10-Q
• $38.9 million (dollar_amount) — net increase in net assets from operations for Q2 2025
• $0.78 (dollar_amount) — net increase in net assets per share for Q2 2025
• $66.5 million (dollar_amount) — total investment income for Q2 2025
• $31.2 million (dollar_amount) — net investment income for Q2 2025
• $0.63 (dollar_amount) — net investment income per share for Q2 2025
• $100.0 million (dollar_amount) — cash and cash equivalents as of June 30, 2025
• $1.8 billion (dollar_amount) — fair value of investment portfolio as of June 30, 2025
• 130 (dollar_amount) — number of portfolio companies
• SEC (regulator) — regulates public filings

FAQ

Risk Factors

• Interest Rate Volatility [high — market]: GSBD's investment portfolio is heavily weighted towards floating-rate debt investments. Fluctuations in interest rates, particularly increases, can impact the fair value of these investments and potentially increase borrowing costs for the company, affecting net investment income. For instance, a significant portion of its debt portfolio is tied to SOFR, which has seen volatility.
• Credit Quality of Portfolio Companies [high — financial]: The company's performance is directly tied to the creditworthiness of its 130 portfolio companies. Deterioration in the financial condition of these companies could lead to defaults or reduced income, impacting GSBD's net asset value and investment income. The portfolio is diversified across various industries, but sector-specific downturns remain a risk.
• Reliance on Investment Advisor [medium — operational]: GSBD relies on Goldman Sachs Asset Management, L.P. for investment advisory services. Any disruption in this relationship or the effectiveness of the advisor's strategies could negatively impact the company's ability to source and manage investments, and achieve its investment objectives.
• Regulatory Environment for BDCs [medium — regulatory]: As a Business Development Company (BDC), GSBD is subject to specific regulations under the Investment Company Act of 1940. Changes in these regulations or the company's ability to comply with them could affect its operations, investment strategies, and ability to pay dividends.

Industry Context

Goldman Sachs BDC, Inc. operates within the Business Development Company (BDC) sector, which focuses on providing capital to middle-market companies. The industry is characterized by its sensitivity to interest rates and credit cycles. Competition is significant, with many BDCs vying for attractive investment opportunities, often leading to a focus on specialized lending and active portfolio management to generate consistent income.

Regulatory Implications

As a BDC, GSBD is subject to regulations under the Investment Company Act of 1940, which impacts its leverage, investment strategies, and distribution requirements. Compliance with these regulations is crucial for its operational stability and ability to provide returns to shareholders.

What Investors Should Do

1. Monitor interest rate trends and their impact on GSBD's floating-rate portfolio.
2. Assess the credit quality and diversification of the investment portfolio.
3. Evaluate the company's net investment income and dividend payout consistency.

Key Dates

• 2025-06-30: Quarter End — Reporting period for the 10-Q filing, showing financial performance and position as of this date.
• 2025-08-07: 10-Q Filing Date — The date the company officially submitted its quarterly report to the SEC, providing updated financial information to investors.

Glossary

Net Assets

The total value of a company's assets minus its liabilities. For GSBD, this represents the value attributable to shareholders. (The net increase in net assets from operations ($38.9 million) is a key indicator of the company's profitability and growth during the quarter.)

Net Investment Income

The income generated from a company's investments after deducting operating expenses. For BDCs, this is a primary driver of distributable earnings. (An increase in net investment income to $31.2 million indicates improved profitability from core lending and investment activities.)

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (The fair value of the investment portfolio ($1.8 billion) reflects the current market valuation of GSBD's assets.)

Floating-rate investments

Investments where the interest rate is not fixed but adjusts periodically based on a benchmark interest rate, such as SOFR. (A significant portion of GSBD's portfolio consists of these, making it sensitive to interest rate changes.)

BDC (Business Development Company)

A type of closed-end investment company created by Congress to make equity and debt capital available to American businesses, particularly small and mid-sized companies. (GSBD operates under this structure, which has specific regulatory requirements and tax implications.)

Year-Over-Year Comparison

The current filing shows a positive trend compared to the prior quarter, with a notable increase in net assets from operations to $38.9 million ($0.78 per share) from $29.7 million ($0.60 per share). Total investment income also grew to $66.5 million, driven by higher interest income. While specific year-over-year comparisons are not detailed in this summary, the sequential improvement suggests enhanced operational performance and effective portfolio management in the most recent period.

Key Financial Figures

• $0.001 — registered Common Stock, par value $0.001 per share GSBD The New York Stock E

Filing Documents

• gsbd-20250630.htm (10-Q) — 15707KB
• gsbd-ex31_1.htm (EX-31.1) — 13KB
• gsbd-ex31_2.htm (EX-31.2) — 13KB
• gsbd-ex31_3.htm (EX-31.3) — 13KB
• gsbd-ex32_1.htm (EX-32.1) — 7KB
• gsbd-ex32_2.htm (EX-32.2) — 7KB
• gsbd-ex32_3.htm (EX-32.3) — 7KB
• 0000950170-25-105134.txt ( ) — 46008KB
• gsbd-20250630.xsd (EX-101.SCH) — 2327KB
• gsbd-20250630_htm.xml (XML) — 16915KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Consolidated Statements of Assets and Liabilities 5 Consolidated Statements of Operations 6 Consolidated Statements of Changes in Net Assets 7 Consolidated Statements of Cash Flows 8 Consolidated Schedules of Investments 9 Notes to the Consolidated Financial Statements 41 ITEM 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 67 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 83 ITEM 4.

Controls and Procedures

Controls and Procedures 83 PART II OTHER INFORMATION 84 ITEM 1.

Legal Proceedings

Legal Proceedings 84 ITEM 1A.

Risk Factors

Risk Factors 84 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 84 ITEM 3. Defaults Upon Senior Securities 84 ITEM 4. Mine Safety Disclosures 84 ITEM 5. Other Information 84 ITEM 6. Exhibits 84

SIGNATURES

SIGNATURES 86 2 Table of Contents CAUTIONARY STATEMENT REGARDIN G FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "target," "estimate," "intend," "continue" or "believe" or the negatives of, or other variations on, these terms or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. Our forward-looking statements include information in this report regarding general domestic and global economic conditions, our future financing plans, our ability to operate as a business development company ("BDC") and the expected performance of, and the yield on, our portfolio companies. There may be events in the future, however, that we are not able to predict accurately or control. The factors listed under "Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2024, as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operations and financial position. Any forward-looking statement made by us in this report speaks only as of the date of this report. Factors or events that could cause our actual results to differ from our forward-looking statements may emerge from time to time, and it is not possible for us to predict all of the

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

FINANC IAL STATEMENTS

ITEM 1. FINANC IAL STATEMENTS Goldman Sachs BDC, Inc. Consolidated Statements o f Assets and Liabilities (in thousands, except share and per share amounts) June 30, 2025 (Unaudited) December 31, 2024 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $ 3,245,930 and $ 3,533,627 ) $ 3,161,700 $ 3,368,503 Non-controlled affiliated investments (cost of $ 109,957 and $ 139,955 ) 102,806 106,755 Total investments, at fair value (cost of $ 3,355,887 and $ 3,673,582 ) $ 3,264,506 $ 3,475,258 Investments in affiliated money market fund (cost of $ 67 and $ 25,238 ) 67 25,238 Cash 108,036 61,795 Interest and dividends receivable 21,079 28,092 Deferred financing costs 14,801 11,897 Other assets 1,749 1,103 Total assets $ 3,410,238 $ 3,603,383 Liabilities Debt (net of debt issuance costs of $ 5,709 and $ 8,176 ) $ 1,797,397 $ 1,926,452 Interest and other debt expenses payable 15,516 21,289 Management fees payable 8,408 8,780 Incentive fees payable 8,526 6,330 Distribution payable 55,859 52,784 Unrealized depreciation on foreign currency forward contracts 308 38 Secured borrowings 3,060 2,920 Accrued expenses and other liabilities 7,775 12,090 Total liabilities $ 1,896,849 $ 2,030,683 Commitments and contingencies (Note 8) Net assets Preferred stock, par value $ 0.001 per share ( 1,000,000 shares authorized, no shares issued and outstanding) $ — $ — Common stock, par value $ 0.001 per share ( 200,000,000 shares authorized, 116,250,039 and 117,297,222 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively) 116 117 Paid-in capital in excess of par 1,934,128 1,946,253 Distributable earnings (loss) ( 420,855 ) ( 373,670 ) Total net assets $ 1,513,389 $ 1,572,700 Total liabilities and net assets $ 3,410,238 $ 3,603,383 N