TSLXHIGH SIGNALFINANCIAL10-K

TSLX experienced dramatic operational improvement with operating cash flow surging from -$45.5M to $401.6M while interest expense more than doubled, indicating significant portfolio restructuring and potential leverage increases.

The massive 982% improvement in operating cash flow suggests TSLX's business development company operations have fundamentally strengthened, likely through successful portfolio monetization and improved investment performance. However, the doubling of interest expense to $133.7M indicates substantially increased borrowing costs, which could pressure future profitability if not offset by higher investment returns.

Comparing 2026-02-12 vs 2025-02-13View on EDGAR →
FINANCIAL ANALYSIS

TSLX demonstrated remarkable financial transformation with operating cash flow swinging dramatically positive to $401.6M from negative territory, while interest expense more than doubled to $133.7M, suggesting aggressive portfolio expansion funded through increased leverage. Cash position declined modestly to $19.7M and share buybacks increased to $6.2M, indicating management confidence despite higher borrowing costs. The overall picture signals a BDC aggressively deploying capital and generating strong operational cash flows, but at the cost of significantly higher interest expenses that investors should monitor closely.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+982.8%
-$45.5M$401.6M

Operating cash flow surged 982.8% — exceptional cash generation, highest quality earnings signal.

Interest Expense
P&L
+112.3%
$63.0M$133.7M

Interest expense surged 112.3% — significant debt increase or rising rates materially impacting earnings.

Share Buybacks
Cash Flow
+110.4%
$2.9M$6.2M

Share repurchases increased 110.4% — management returning capital, signals confidence in intrinsic value.

Cash & Equivalents
Balance Sheet
-28.1%
$27.3M$19.7M

Cash decreased 28.1% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-13
ADDED
First-lien loan (AUD 60,000 par, due 12/2026) Initial Acquisition Date 12/6/2021 Reference Rate and Spread B + 6.25% Interest Rate 10.73% 2024-12-31 0001508655 us-gaap:FairValueInputsLevel3Member tslx:MezzanineDebtInvestmentsMember 2025-12-31 0001508655 Equity and Other Investments Oil, Gas and Consumable Fuels TRP Assets, LLC Partnership Interest (1.89% ownership) Initial Acquisition Date 8/25/2022 2025-01-01 2025-12-31 0001508655 Equity and Other Investments Healthcare Raptor US Buyer II Corp.
Ordinary Shares (13,176 shares) Initial Acquisition Date 3/24/2023 2024-12-31 0001508655 2023-01-01 2023-12-31 0001508655 Debt Investments Business Services Galileo Parent, Inc.
Investment First-lien revolving loan ($6,635 par, due 5/2030) Initial Acquisition Date 5/3/2023 Reference Rate and Spread SOFR + 5.75% Interest Rate 9.42% 2025-01-01 2025-12-31 0001508655 Equity and Other Investments Business Services Newark FP Co-Invest, L.P.
Partnership (2,527,719 units) Initial Acquisition Date 11/8/2023 2025-01-01 2025-12-31 0001508655 Equity and Other Investments Hotel, Gaming and Leisure IRGSE Holding Corp.
Series E Preferred Shares (113,250 shares) Initial Acquisition Date 3/1/2022 2024-01-01 2024-12-31 0001508655 2025-07-01 2025-09-30 0001508655 tslx:O2024Q2SupplementalDividendsMember 2024-05-01 0001508655 us-gaap:ValuationTechniqueDiscountedCashFlowMember us-gaap:FairValueInputsLevel3Member tslx:EquityAndOtherInvestmentsMember 2024-12-31 0001508655 Debt Investments Retail and Consumer Products American Achievement, Corp.
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REMOVED
First-lien loan ($19,737 par, due 5/2030) Initial Acquisition Date 5/13/2024 Reference Rate and Spread SOFR + 5.75% Interest Rate 10.08% 2024-01-01 2024-12-31 0001508655 tslx:DelayedDrawAndRevolverMember tslx:WranglerTopcoLlcMember 2024-12-31 0001508655 tslx:DelayedDrawMember tslx:BabylonFincoLimitedMember 2024-12-31 0001508655 us-gaap:InterestRateSwapMember tslx:TwoThousandTwentyEightNotesMember 2024-01-01 2024-12-31 0001508655 Debt Investments Hotel, Gaming and Leisure IRGSE Holding Corp.
First-lien revolving loan ($27,622 par, due 6/2024) Initial Acquisition Date 12/21/2018 Reference Rate and Spread SOFR + 9.65% Interest Rate 15.03% 2023-01-01 2023-12-31 0001508655 tslx:TwoThousandTwentyNineNotesMember 2024-01-08 0001508655 tslx:InterestRateSwapFourMember 2023-01-01 2023-12-31 0001508655 2024-10-01 2024-12-31 0001508655 Debt Investments Human Resource Support Services HireVue, Inc.
First-lien loan ($54,113 par, due 5/2029) Initial Acquisition Date 5/3/2023 Reference Rate and Spread SOFR + 7.25% Interest Rate 12.63% 2023-12-31 0001508655 Equity and Other Investments Financial Services Passport Labs, Inc.
17,534 Warrants Initial Acquisition Date 4/28/2021 2024-01-01 2024-12-31 0001508655 us-gaap:CommonStockMember 2024-01-01 2024-12-31 0001508655 Debt Investments Healthcare Merative L.P.
Investment First-lien loan ($70,103 par, due 6/2028) Initial Acquisition Date 06/30/2022 Reference Rate and Spread SOFR + 7.25% Interest Rate 11.58% 2024-12-31 0001508655 Debt Investments Automotive BestPass, Inc.
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