Sixth Street Specialty Lending is a high-quality business development company with strong 25% margins, a 121% free cash flow conversion rate, and a 1,024% dividend coverage ratio, but a confirmed death cross, declining revenue of -20%, and three simultaneously failed quality gates limit the near-term entry appeal despite the attractive underlying fundamentals.
Thesis pillars
- Earnings Execution Beat Streak↓Deteriorating
- Death Cross Revenue Decline Headwind→Stable
- High Quality Cash Conversion→Stable
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Feb 12, 2026· older than 90 days
Sixth Street Specialty Lending, (TSLX) Stock Analysis
Breakout setup · Inst Constrain edge
Financial Services · Asset Management
Sell if holding. Analyst target reached at $17.81 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.2): -0.5.
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from... Read more
Sell if holding. Analyst target reached at $17.81 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.2): -0.5. Chart setup: Golden cross, above all MAs, RSI 53, MACD bullish. Score 5.8/10, moderate confidence.
Passes 6/7 gates (positive momentum, clean insider activity, no SEC red flags, earnings proximity 98d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated Oct 29, 2026Recent Developments — Sixth Street Specialty Lending,
Latest news
- NEWS TSLX Deep Dive: Share Repurchases Keep Pricing Above NAV (NYSE:TSLX) - Seeking Alpha — Seeking Alpha Oct 29, 2026 positive
- NEWS Sixth Street Specialty Lending (TSLX) Projected to Release Quarterly Earnings on Tuesday - MarketBeat — MarketBeat Oct 27, 2026 neutral
- NEWS TSLX Q3'26 Earnings: revenue estimate is 97.59M USD - TradingView — TradingView Oct 27, 2026 neutral
- NEWS Tectonic Advisors LLC Purchases 135,502 Shares of Sixth Street Specialty Lending, Inc. $TSLX - MarketBeat — MarketBeat Oct 24, 2026 neutral
- NEWS Sixth Street Specialty Lending earnings matched, revenue topped estimates By Investing.com - Investing.com UK — Investing.com UK Aug 5, 2026 neutral
Latest item Oct 29, 2026 · Generated 2026-11-05T11:44:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- LOWloan_portfolioInternet Services18%10-K Item 1: 'The largest industry in our portfolio as of December 31, 2025 was Internet Services, which represented...18.3% of the total portfolio based on fair value.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $17.81 — A.R:R is negative (-0.5) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Leverage penalty (D/E 1.2): -0.5. Chart setup: Golden cross, above all MAs, RSI 53, MACD bullish. Prior stop was $16.97. Score 5.8/10, moderate confidence.
Analyst target $17.20 reached (−3.4% from $17.81); no take-profit level is published. Prior stop was $16.97. Stop-loss: $16.97.
Analyst target reached - limited upside remaining; Leverage penalty (D/E 1.2): -0.5; Consecutive earnings misses (2).
Sixth Street Specialty Lending, trades at a P/E of 21.7 (forward 9.7). TrendMatrix value score: 7.4/10. Verdict: Sell.
17 analysts rate TSLX, with a consensus score of 4.1/5. 11 analysts publish price targets averaging $20.
What does Sixth Street Specialty Lending, do?Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by...
Sixth Street Specialty Lending is a BDC managed by an affiliate of Sixth Street Partners that generates income by originating direct loans primarily to U.S.-domiciled middle-market companies with annual EBITDA between $10 million and $250 million. Revenue comes primarily from interest income on senior secured loans. As of December 31, 2025, the total investment portfolio was $3,347.3 million at fair value across 143 portfolio companies in 19 industries.