Based on the provided financial report, the title of the article is: "CARLYLE SECURED LENDING, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026
Based on the provided financial report, the title of the article is: "CARLYLE SECURED LENDING, INC. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026
Carlyle Secured Lending, Inc. (the “Company”) filed its quarterly report for the period ended June 30, 2026. The Company reported total assets of $1.43 billion and total liabilities of $1.35 billion, resulting in a net asset value of $83 million. For the three months ended June 30, 2026, the Company reported net income of $12.6 million, compared to a net loss of $1.4 million for the same period in 2025. For the six months ended June 30, 2026, the Company reported net income of $24.1 million, compared to a net loss of $2.8 million for the same period in 2025. The Company’s investment portfolio consisted of $1.23 billion in secured loans and $200 million in other investments, with a weighted average yield of 6.5%. The Company’s net interest income was $34.4 million for the three months ended June 30, 2026, and $67.3 million for the six months ended June 30, 2026.
Carlyle Secured Lending, Inc. Delivers Solid Second Quarter Results
Carlyle Secured Lending, Inc., a specialty finance company that invests primarily in middle market companies, has reported its financial results for the second quarter of 2026. Despite some headwinds, the company continues to demonstrate resilience and deliver value for its shareholders.
Quarterly Performance Highlights
- Net investment income was $24.0 million, or $0.35 per common share. This was slightly lower than the previous quarter due to lower yields on investments, but was still a solid result.
- Dividends declared on common shares were $24.2 million, or $0.35 per share, matching the net investment income per share.
- The company’s net asset value (NAV) per common share decreased to $15.61 as of June 30, 2026, down from $15.89 as of March 31, 2026. This was primarily driven by unrealized depreciation on investments.
Portfolio and Investment Activity
As of June 30, 2026, Carlyle Secured Lending held 263 investments across 177 portfolio companies and 31 industries, with a total fair value of $2.4 billion. The portfolio composition was as follows:
- First Lien Debt: 82.0% of total investments at fair value
- Second Lien Debt: 3.3% of total investments at fair value
- Equity Investments: 6.5% of total investments at fair value
- Investment Funds: 8.2% of total investments at fair value
The weighted average yield on the total debt and income-producing investments was 10.4% based on amortized cost and 10.6% based on fair value. The portfolio is well-diversified, with investments spread across various industries and geographies, with the majority (86.9%) in the United States.
During the quarter, the company’s investment balance increased from $2.3 billion to $2.4 billion, primarily due to net origination activity. The company funded $297.6 million in new investments and received $190.9 million from investments that were sold or repaid.
Portfolio Credit Quality
The company’s internal risk rating system assigns a rating of 1 to 5 to each of its first lien and second lien debt investments, with 1 being the highest rating. As of June 30, 2026, 92.3% of the portfolio was rated 1 or 2, indicating that the majority of the investments are performing as expected or better. Only 0.7% of the portfolio was rated 4 or 5, which are considered non-performing or at high risk of loss.
The company had eight investments on non-accrual status as of June 30, 2026, representing 0.6% of the total investment portfolio at fair value. This was an improvement from the previous quarter, when six investments were on non-accrual.
Liquidity and Capital Resources
Carlyle Secured Lending maintains a strong liquidity position, with $592.2 million in cash and unused debt capacity as of June 30, 2026. This provides the company with ample resources to fund new investments and meet its obligations.
The company’s debt-to-equity ratio was 1.22x as of June 30, 2026, down from 1.32x at the end of 2025. This improvement in the leverage ratio was driven by a reduction in outstanding borrowings under the company’s credit facility.
During the quarter, the company repurchased 1,110,122 shares of its common stock for approximately $12.5 million, which resulted in an accretion to NAV per share of $0.07. The company has continued this share repurchase program, buying an additional 356,233 shares for $3.7 million since the end of the quarter.
Outlook and Conclusion
Carlyle Secured Lending’s performance in the second quarter of 2026 was solid, with the company generating consistent net investment income and maintaining a well-diversified and high-quality investment portfolio. While the company faced some headwinds in the form of lower yields and unrealized depreciation on investments, it was able to navigate these challenges and deliver value to shareholders.
Looking ahead, the company’s strong liquidity position and prudent capital management, including the share repurchase program, position it well to continue supporting its investment objectives and generating attractive returns for investors. The company’s focus on lending to middle market companies, which are often backed by private equity sponsors, provides it with access to a steady pipeline of investment opportunities.
Overall, Carlyle Secured Lending’s second quarter results demonstrate the company’s ability to adapt to changing market conditions and maintain its position as a leading specialty finance provider. Investors can take comfort in the company’s disciplined approach to portfolio management and its commitment to delivering consistent returns.