Executive Summary

Q2 2025 delivered net investment income (NII) per share of $0.38 and GAAP EPS of $0.34; total investment income (revenue) was $91.0M, with NAV per share down 1.4% to $13.02, largely reflecting declared special/supplemental dividends rather than core book value erosion .
Results modestly missed S&P Global consensus: EPS $0.3925 vs $0.38 and revenue $93.14M vs $90.97M; management emphasized strong originations and a robust pipeline supporting deployment in H2 2025* [GetEstimates Q2 2025] .
Credit quality improved: non-accruals decreased to 1.6% of fair value (from 1.9% in Q1) with two restorations to accrual status and one exit; unitranche exposure to Streamland Media moved to non-accrual due to underperformance .
Capital actions support shareholder returns and funding flexibility: $12.1M of stock repurchases under a 10b5-1 plan (NAV accretive), Q3 base dividend ($0.32) and special dividend ($0.16) declared, and Revolving Credit Facility maturity extended to June 2030 with a 10 bps spread reduction .
Near-term stock catalysts: dividend confirmations, buyback activity, improving non-accruals, and commentary on accelerating deployment amid resilient M&A activity .

What Went Well and What Went Wrong

What Went Well

Improved credit metrics: non-accruals decreased to 1.6% of fair value (2.5% of amortized cost), aided by exits and restructurings; Bayside Parent (Pro‑PT) restored to accrual and Lithium Technologies restructured with lender-favorable terms .
Platform-led origination strength: $247.9M of new commitments (highest since Q3 2024), 100% first-lien senior secured, and GS led 8 of 9 new portfolio company originations; “Of the nine new portfolio companies, we served as lead on eight, which is a tangible indication of the power of the GS platform” .
Shareholder-friendly actions: $12.1M buybacks were NAV-accretive; Q3 base dividend $0.32 and special dividend $0.16 declared; “We repurchased north of 1,000,000 shares for $12.1 million, which was NAV accretive” .

What Went Wrong

Revenue and NII down q/q: total investment income fell to $91.0M from $96.9M, driven by smaller portfolio size; NII per share declined to $0.38 from $0.42 .
One new non-accrual (Streamland Media) added due to underperformance; non-accrual count remained elevated at seven companies, even as the percentage improved .
Leverage below target with repayments outpacing fundings: net debt-to-equity fell to 1.12x vs a 1.25x target; “some commitments…slipped into the next quarter,” suggesting timing impacts on deployment .

Financial Results

Quarterly Performance vs Prior Quarter

Metric	Q1 2025	Q2 2025
Total Investment Income ($USD Millions)	$96.9	$91.0
Net Investment Income after taxes ($USD Millions)	$49.6	$44.5
Net Investment Income per share ($USD)	$0.42	$0.38
Adjusted NII per share ($USD)	$0.41	$0.37
Basic & diluted EPS ($USD)	$0.27	$0.34
Net realized & unrealized gains (losses) ($USD Millions)	($18.0)	($5.2)
NAV per share ($USD)	$13.20	$13.02
Net debt-to-equity (x)	1.16x	1.12x

Management noted the revenue decline was driven by portfolio size reduction q/q .

Year-over-Year Comparison (Q2 2024 vs Q2 2025)

Metric	Q2 2024	Q2 2025
Total Investment Income ($USD Millions)	$108.6	$90.97
Net Investment Income after taxes ($USD Millions)	$66.96	$44.45
Net Investment Income per share ($USD)	$0.59	$0.38
Basic & diluted EPS ($USD)	$0.60	$0.34
Net realized & unrealized gains (losses) ($USD Millions)	($121.39)	($5.16)

Vs Wall Street Consensus (S&P Global)

Metric	Consensus*	Actual
Primary EPS ($USD)	$0.3925*	$0.38
Revenue ($USD Millions)	$93.14*	$90.97
# of EPS Estimates	4*	—
# of Revenue Estimates	2*	—

Values retrieved from S&P Global.
Bolded takeaways: modest EPS miss and revenue miss versus consensus*.

Portfolio Composition by Investment Type (Fair Value)

Investment Type	Q4 2024	Q1 2025	Q2 2025
1st Lien/Senior Secured Debt ($, % of total)	$3,179.8; 91.5%	$3,068.5; 90.7%	$2,944.4; 90.2%
1st Lien/Last-Out Unitranche ($, % of total)	$165.9; 4.8%	$183.2; 5.4%	$187.3; 5.7%
2nd Lien/Senior Secured Debt ($, % of total)	$46.8; 1.3%	$46.6; 1.4%	$49.4; 1.5%
Unsecured Debt ($, % of total)	$16.8; 0.5%	$17.0; 0.5%	$8.3; 0.3%
Preferred Stock ($, % of total)	$31.3; 0.9%	$32.0; 0.9%	$41.2; 1.3%
Common Stock ($, % of total)	$34.3; 1.0%	$36.9; 1.1%	$33.5; 1.0%
Warrants ($, % of total)	$0.4; <0.1%	$0.5; <0.1%	$0.4; <0.1%
Total ($)	$3,475.3	$3,384.7	$3,264.5

KPIs and Balance Sheet

KPI / Metric	Q4 2024	Q1 2025	Q2 2025
% Performing debt floating	99.4%	100.0%	99.4%
% Performing debt fixed	0.6%	0.0%	0.6%
Weighted avg yield (amortized cost)	11.2%	10.8%	10.7%
Weighted avg yield (fair value)	14.1%	11.8%	12.0%
Weighted avg net debt/EBITDA	6.2x	5.8x	5.8x
Weighted avg interest coverage	1.8x	1.9x	1.8x
Non-accruals (% FV / % amortized cost)	2.0% / 4.5%	1.9% / 4.6%	1.6% / 2.5%
Net debt-to-equity (x)	1.17x	1.16x	1.12x
Total debt outstanding ($)	$1,934.6M	$1,874.9M	$1,803.1M
Cash & cash equivalents ($)	$87.0M	$82.8M	$108.1M
RCF availability ($)	$1,020.0M	$720.1M	$792.5M

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Base dividend per share	Q3 2025	$0.32 authorized (framework affirmed)	$0.32 declared	Maintained
Special dividend per share	Q3 2025	~$0.16 authorized	$0.16 declared	Confirmed
Supplemental dividend per share	Q2 2025	$0.05 (Q1 supplemental)	$0.03 declared	Lowered
Target leverage (net debt/equity)	Ongoing	1.25x target communicated	1.25x target reiterated	Maintained
RCF terms	Q2 2025	Maturity Oct 2028; prior spread	Maturity extended to Jun 2030; spread -10 bps	Improved pricing/tenor

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Dividend framework	Base reduced to $0.32; special dividends authorized; incentive fee reduced	Base $0.32 and special $0.16 declared; Q2 supplemental $0.03	Maintained/implemented
Portfolio rotation	Net funded activity $38.5M in Q4; repayments $187.5M	Repayments $288.8M; new commitments $247.9M	Accelerating exits of legacy exposures
Non-accrual management	2.0% of FV; Pro‑PT restored to accrual	1.6% of FV; Lithium restructured; Streamland added	Improving overall mix
Leverage/capital	1.17x leverage	1.12x; target 1.25x; RCF extended/repriced	Below target; enhanced flexibility
Buybacks	Not highlighted	$12.1M repurchases (NAV accretive)	Active capital return
Market/M&A backdrop	—	Resilient H1 M&A; tightening spreads; strong deal flow	Constructive tone

Management Commentary

“Our net investment income per share for the quarter was 38¢, and net asset value per share was $13.02… which was largely due to the 16¢ per share special dividend. If you were to exclude the supplemental and special dividend paid in Q2, our book NAV per share increased quarter over quarter” — Vivek Bantwal .
“We repurchased north of 1,000,000 shares for $12.1 million, which was NAV accretive… 100% of our originations during the quarter were in first lien senior secured loans” — Tucker Greene .
“Lithium… was restructured… into a take-back term loan debt and a preferred security that gives the lender group claim on a portion of all future distributions… We believe this outcome is the best opportunity to maximize recovery” — David Miller .
“We amended the Truist RCF to extend maturity… to June 2030 and reduce the spread by 10 bps” — Stanley Matuszewski .

Q&A Highlights

Deployment vs leverage: Management expects leverage to tick up as slipped commitments fund and strong deal flow continues; current 1.12x is below the 1.25x target .
Non-accrual resolutions: Pro‑PT removed from non-accrual due to improved performance; Lithium restructured into cash-paying note plus equity-linked security; Kawa preferred exited; one new non-accrual (Streamland Media) added .

Estimates Context

Q2 2025 results modestly missed consensus: EPS $0.3925 vs $0.38 and revenue $93.14M vs $90.97M; both driven by portfolio size effects and repayments exceeding fundings in the quarter* [GetEstimates Q2 2025] .
With origination strength (new commitments $247.9M) and a robust pipeline, sell-side may modestly adjust near-term revenue/NII trajectories upward if H2 deployment accelerates* .

Values retrieved from S&P Global.

Key Takeaways for Investors

Core earnings power intact: NII per share of $0.38 and adjusted $0.37, with first‑lien bias (90%+) and improving non-accrual metrics underpinning dividend sustainability .
Capital return and flexibility: $12.1M buybacks and confirmed Q3 base/special dividends, plus extended/repriced RCF enhance balance sheet resilience and return capacity .
Deployment catalyst: Strong originations and led deals signal competitive advantage; expect leverage to migrate toward 1.25x as delayed fundings close .
Credit selection and workout capability: Lithium restructure and non-accrual reductions demonstrate effective portfolio management in a volatile backdrop .
Watch revenue/NII trajectory: Q2 softness tied to smaller portfolio size and repayments; improving pipeline suggests potential q/q recovery .
Special/supplemental dividends are variable; supplemental fell to $0.03 in Q2 vs $0.05 in Q1—monitor NII generation and board decisions each quarter .
Near-term narrative: resilient M&A, tightening spreads, platform-led origination, and constructive tone into year-end could be stock-supportive on execution .

Bolded beats/misses: modest EPS and revenue misses vs consensus*.

Goldman Sachs BDC, Inc. (GSBD)·Q2 2025 Earnings Summary