Goldman Sachs BDC Sees Q3 Income Drop, NAV Per Share Declines

Ticker: GSBD · Form: 10-Q · Filed: Nov 6, 2025

Sentiment: bearish

Topics: BDC, Investment Income, Net Asset Value, Share Repurchases, Credit Markets, Financial Services, Dividend Income

Related Tickers: GSBD, ARCC, MAIN, HTGC

TL;DR

**GSBD's Q3 results are a red flag, with income and NAV per share dropping, signaling a tough road ahead for this BDC.**

AI Summary

Goldman Sachs BDC, Inc. (GSBD) reported a decrease in total investment income to $91.6 million for the three months ended September 30, 2025, down from $110.4 million in the prior year period. Net investment income after taxes also declined significantly to $45.3 million, compared to $68.2 million in the same quarter of 2024. The company experienced a net realized loss from non-controlled affiliated investments of $33.8 million for the nine months ended September 30, 2025, a substantial increase from a $2.0 million loss in the prior year. Total net assets decreased to $1.45 billion as of September 30, 2025, from $1.57 billion at December 31, 2024. The net asset value per share fell to $12.75 from $13.41 over the same period. GSBD repurchased $37.2 million of common stock during the nine months ended September 30, 2025, while distributions to stockholders totaled $176.2 million for the nine-month period. The company's debt (net of debt issuance costs) decreased to $1.84 billion from $1.93 billion at year-end 2024.

Why It Matters

GSBD's declining net investment income and NAV per share signal potential headwinds for investors, suggesting reduced profitability and asset value. The significant increase in net realized losses from affiliated investments, jumping from $2.0 million to $33.8 million year-over-year, indicates potential stress within its portfolio, which could impact future distributions. While share repurchases of $37.2 million might offer some support, the overall financial performance suggests a challenging environment for BDCs, potentially impacting the broader credit market and competitive landscape for middle-market lending.

Risk Assessment

Risk Level: high — The risk level is high due to a significant decline in net investment income after taxes, falling from $68.2 million in Q3 2024 to $45.3 million in Q3 2025. Additionally, the net asset value per share decreased from $13.41 to $12.75, and net realized losses from non-controlled affiliated investments surged from $2.0 million to $33.8 million year-over-year, indicating potential portfolio deterioration.

Analyst Insight

Investors should exercise caution and consider re-evaluating their position in GSBD. The declining net investment income and NAV per share, coupled with increased realized losses, suggest potential for further underperformance. Monitor future filings closely for trends in portfolio quality and distribution coverage.

Financial Highlights

debt To Equity
1.27
revenue
$91.6M
total Debt
$1.84B
net Income
$45.3M
eps
$0.22
revenue Growth
-17.0%

Revenue Breakdown

SegmentRevenueGrowth
Total Investment Income$91.6M-17.0%

Key Numbers

Key Players & Entities

FAQ

What were Goldman Sachs BDC's key financial results for the quarter ended September 30, 2025?

For the quarter ended September 30, 2025, Goldman Sachs BDC reported total investment income of $91.6 million and net investment income after taxes of $45.3 million. This compares to $110.4 million and $68.2 million, respectively, for the same period in 2024.

How did Goldman Sachs BDC's net asset value per share change?

Goldman Sachs BDC's net asset value per share decreased to $12.75 as of September 30, 2025, from $13.41 as of December 31, 2024. This represents a decline of $0.66 per share.

What was the impact of realized and unrealized gains/losses on Goldman Sachs BDC's operations?

For the nine months ended September 30, 2025, Goldman Sachs BDC experienced a net realized loss of $119.8 million and a net change in unrealized appreciation of $76.1 million. This contrasts with a net realized loss of $129.0 million and net unrealized depreciation of $41.7 million in the prior year period.

Did Goldman Sachs BDC repurchase any common stock during the period?

Yes, Goldman Sachs BDC repurchased $37.2 million of common stock, including commissions and direct acquisition costs, during the nine months ended September 30, 2025. This is a change from no repurchases in the prior year period.

What are the primary risks highlighted in Goldman Sachs BDC's 10-Q filing?

The filing highlights risks such as disruptions in capital markets, general economic uncertainty, changes in interest rates, and the impact of increased competition. Geopolitical factors like the war in Ukraine and conflict in the Middle East are also cited as potential risks.

How much debt does Goldman Sachs BDC have outstanding?

As of September 30, 2025, Goldman Sachs BDC had debt (net of debt issuance costs) totaling $1.84 billion. This is a decrease from $1.93 billion as of December 31, 2024.

What were the total distributions to stockholders by Goldman Sachs BDC?

Total distributions to stockholders by Goldman Sachs BDC amounted to $176.2 million for the nine months ended September 30, 2025. This represents distributions per share of $1.52 for the period.

How has Goldman Sachs BDC's cash position changed?

Goldman Sachs BDC's cash balance increased to $115.2 million as of September 30, 2025, from $61.8 million at the beginning of the period. Net cash provided by operating activities was $355.6 million for the nine months ended September 30, 2025.

What is Goldman Sachs BDC's strategy regarding its investment portfolio?

Goldman Sachs BDC continues to invest in non-controlled/non-affiliated and non-controlled affiliated investments. As of September 30, 2025, total investments at fair value were $3.20 billion, with a cost of $3.32 billion, indicating an overall unrealized depreciation.

What is a Business Development Company (BDC) like Goldman Sachs BDC?

A Business Development Company (BDC) like Goldman Sachs BDC is a type of closed-end investment company that invests in small and mid-sized companies. BDCs typically provide debt and equity financing to these companies and are required to distribute at least 90% of their taxable income to shareholders.

Risk Factors

Industry Context

The Business Development Company (BDC) sector is characterized by its focus on providing capital to middle-market companies, often through debt and equity investments. The industry is sensitive to interest rate movements, economic cycles, and regulatory changes. Competition is present from other BDCs, private equity funds, and traditional lenders.

Regulatory Implications

As a BDC, GSBD is subject to regulations under the Investment Company Act of 1940, including asset coverage requirements. Changes in these regulations or failure to comply can significantly impact its operations and financial health.

What Investors Should Do

  1. Monitor portfolio performance closely.
  2. Analyze the drivers of declining investment income.
  3. Evaluate the sustainability of distributions.
  4. Assess the impact of share repurchases.

Key Dates

Glossary

BDC
Business Development Company. A type of closed-end investment company that invests in small and medium-sized companies and provides them with capital and management expertise. (GSBD operates under this structure, influencing its investment strategy and regulatory framework.)
Net Asset Value (NAV)
The market value of a company's assets minus its liabilities. For a BDC, it represents the value per share of its investment portfolio. (A key metric for BDCs, indicating the underlying value of the company's investments. GSBD's NAV per share has decreased.)
Net Investment Income
The income generated from a company's investments after deducting operating expenses and interest expenses. (Represents the core profitability of GSBD's lending and investment activities. It has declined significantly.)
Realized Loss
A loss incurred when an asset is sold for less than its purchase price or book value. (GSBD reported a substantial realized loss from affiliated investments, signaling poor performance in those specific holdings.)

Year-Over-Year Comparison

Compared to the prior year period, Goldman Sachs BDC, Inc. (GSBD) has experienced a notable downturn. Total investment income for Q3 2025 fell to $91.6 million from $110.4 million in Q3 2024, and net investment income after taxes saw a sharper decline to $45.3 million from $68.2 million. A significant concern is the surge in net realized losses from non-controlled affiliated investments, which rose to $33.8 million for the nine months ended September 30, 2025, from just $2.0 million in the prior year. Consequently, total net assets have decreased to $1.45 billion from $1.57 billion at year-end 2024, and net asset value per share has fallen to $12.75 from $13.41.

Filing Stats: 4,511 words · 18 min read · ~15 pages · Grade level 10.7 · Accepted 2025-11-06 16:47:26

Key Financial Figures

Filing Documents

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 42 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 70 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 86 ITEM 4.

Controls and Procedures

Controls and Procedures 86 PART II OTHER INFORMATION 87 ITEM 1.

Legal Proceedings

Legal Proceedings 87 ITEM 1A.

Risk Factors

Risk Factors 87 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 87 ITEM 3. Defaults Upon Senior Securities 87 ITEM 4. Mine Safety Disclosures 87 ITEM 5. Other Information 87 ITEM 6. Exhibits 87

SIGNATURES

SIGNATURES 89 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) September 30, 2025 (Unaudited) December 31, 2024 Assets Investments, at fair value Non-controlled/non-affiliated investments (cost of $ 3,204,888 and $ 3,533,627 ) $ 3,100,060 $ 3,368,503 Non-controlled affiliated investments (cost of $ 110,611 and $ 139,955 ) 96,873 106,755 Total investments, at fair value (cost of $ 3,315,499 and $ 3,673,582 ) $ 3,196,933 $ 3,475,258 Investments in affiliated money market fund (cost of $ 32,693 and $ 25,238 ) 32,693 25,238 Cash 115,183 61,795 Interest and dividends receivable 25,499 28,092 Deferred financing costs 14,050 11,897 Other assets 643 1,103 Total assets $ 3,385,001 $ 3,603,383 Liabilities Debt (net of debt issuance costs of $ 9,602 and $ 8,176 ) $ 1,840,781 $ 1,926,452 Interest and other debt expenses payable 8,099 21,289 Management fees payable 8,179 8,780 Incentive fees payable 7,051 6,330 Distribution payable 54,774 52,784 Unrealized depreciation on derivatives 477 38 Secured borrowings 3,209 2,920 Accrued expenses and other liabilities 7,602 12,090 Total liabilities $ 1,930,172 $ 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, 114,113,096 and 117,297,222 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively) 114 117 Paid-in capital in excess of par 1,909,063 1,946,253 Distributable earnings (loss) ( 454,348 ) ( 373,670 ) Total net assets $ 1,454,829 $ 1,572,700 Total liabilities and net assets $ 3,385,001 $ 3,603,383 Net asset

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