Goldman Sachs BDC, Inc. (GSBD) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. Goldman Sachs BDC, Inc. is a closed-end management investment company regulated as a Business Development Company (BDC) and a Regulated Investment Company (RIC). The Company focuses on lending to middle-market companies, primarily through secured debt (first lien, unitranche, second lien) and select equity investments. As of March 31, 2026, the Company had 112,569,067 shares of common stock outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Investment Income | $78.79 million | $96.94 million |
| Total Expenses | $53.02 million | $46.00 million |
| Net Investment Income (After Tax) | $24.79 million | $49.61 million |
| Net Realized and Unrealized Gains (Losses) | ($38.40 million) | ($17.99 million) |
| Net Increase (Decrease) in Net Assets from Operations | ($13.63 million) | $31.55 million |
| Net Asset Value (NAV) per Share | $12.17 | $12.64 (Dec 31, 2025) |
| Distributions per Share | $0.35 | $0.48 |
| Total Debt (Carrying Value) | $1,898.16 million | $1,874.62 million |
| Asset Coverage Ratio | 171% | 175% |
| Portfolio Weighted Average Yield (Fair Value) | 10.4% | 10.5% |
Material Changes vs. Prior Period
- Revenue Decline: Total investment income decreased by approximately 19% year-over-year, driven by a decline in base interest rates, tightening credit spreads, and a reduction in portfolio size (amortized cost decreased from $3.56 billion in Q1 2025 to $3.40 billion in Q1 2026).
- Expense Increase: Total expenses rose by 15%, primarily due to a significant increase in Incentive Fees (from $6.80 million to $12.44 million) driven by portfolio performance over the trailing twelve quarters, and higher interest expenses following the repayment of lower-coupon notes (2025 and 2026 Notes) and the issuance of higher-coupon notes (2029 and 2030 Notes).
- Unrealized Losses: The Company recorded a net unrealized depreciation of $40.43 million, compared to appreciation of $27.49 million in the prior year. This was driven by market volatility and financial underperformance in specific portfolio companies, notably Pluralsight, Inc. and One GI LLC, partially offset by appreciation in Chase Industries, Inc. (dba Senneca Holdings).
- Debt Structure: The Company issued $400 million of 5.100% Notes due 2029 in January 2026 and repaid the $500 million 2026 Notes in January 2026. The weighted average interest rate on debt increased to 5.75% for the quarter.
Guidance, Outlook, and Risks
- Outlook: Management continues to focus on generating current income through direct originations. The portfolio remains heavily weighted toward floating-rate debt (99.4%), providing sensitivity to interest rate changes.
- Recent Developments:
- Credit Facility Amendment: On May 5, 2026, the Company amended its Revolving Credit Facility, extending the final maturity to May 2031, reducing the applicable margin, and removing credit adjustment spreads.
- Stock Repurchase: On May 6, 2026, the Board authorized a new 10b5-1 stock repurchase program for up to $75 million, to commence after the expiration of the current plan.
- Distribution: A quarterly base distribution of $0.32 per share was declared on May 6, 2026.
- Risks: Key risks include interest rate fluctuations, credit risk associated with middle-market borrowers, and the impact of market volatility on the fair value of Level 3 assets (which comprise the majority of the portfolio). The Company noted that 4.7% of the portfolio was on non-accrual status as of March 31, 2026, up from 2.8% at year-end 2025.
Investor Verification Checklist
- Non-Accrual Status: Verify the specific portfolio companies contributing to the increase in non-accrual assets (from 2.8% to 4.7%) and the Company's recovery expectations.
- Incentive Fee Calculation: Review the "Trailing Twelve Quarters" performance metrics that triggered the 83% increase in incentive fees to ensure alignment with long-term NAV growth.
- Unrealized Depreciation Drivers: Assess the specific valuation adjustments for Pluralsight and One GI LLC to determine if these are temporary market dislocations or fundamental credit deterioration.
- Debt Maturity Profile: Confirm the impact of the new 2029 and 2030 Notes on future interest expense coverage, given the higher coupon rates compared to the retired 2025/2026 notes.
- Unfunded Commitments: Review the $574.87 million in unfunded commitments to assess capital deployment capacity and potential dilution or leverage impacts.