Operating margins have compressed significantly from 59.9% in 2023Q4 to 25.9% in 2026Q1, reflecting an inability to scale income alongside revenue volatility.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 217.11M | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 163.53M | 140.23M | 99.28M | 101.09M | 94.67M | 167.96M | 17.12M | 70.19M | 47.78M | 86.2M | 71.25M | 20.52M | 10.55M | 3.42M |
| Gross Margin % | 75.32% | 70.9% | 59.18% | 58.5% | 68.29% | 84.52% | 32.33% | 58.11% | 55.83% | 77.86% | 81.23% | 68.16% | 74.31% | 90.65% |
| Gross Profit Growth % | - | 41.25% | -1.79% | 6.77% | -43.63% | 881.27% | -75.61% | 46.91% | -44.58% | 20.98% | 247.32% | 94.4% | 208.48% | - |
| Operating Expenses | 65.85M | -30.23M | 7.56M | 6.37M | 7.21M | 6.83M | 9.71M | 8.45M | 8.43M | 1.74M | 1.37M | 1.84M | 4.94M | 5.35M |
| OpEx % of Revenue | - | -15.28% | 4.51% | 3.69% | 5.2% | 3.44% | 18.35% | 7% | 9.85% | 1.57% | 1.56% | 6.12% | 34.78% | 141.71% |
| Selling, General & Admin | 8.77M | 8.37M | 7.56M | 6.37M | 7.21M | 6.83M | 5.95M | 5.38M | 6.14M | 5.68M | 4.97M | 4.4M | 4.07M | 2.99M |
| SG&A % of Revenue | - | 4.23% | 4.51% | 3.69% | 5.2% | 3.44% | 11.25% | 4.45% | 7.17% | 5.13% | 5.67% | 14.61% | 28.68% | 79.12% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 97.69M | 170.46M | 91.72M | 94.72M | 87.47M | 161.13M | 7.4M | 61.73M | 39.34M | 84.46M | 69.89M | 18.67M | 5.61M | -1.93M |
| Operating Margin % | 44.99% | 86.18% | 54.67% | 54.81% | 63.09% | 81.09% | 13.98% | 51.11% | 45.98% | 76.29% | 79.67% | 62.04% | 39.53% | -51.06% |
| Operating Income Growth % | - | 85.85% | -3.17% | 8.29% | -45.72% | 2076.91% | -88.01% | 56.9% | -53.42% | 20.86% | 274.26% | 232.61% | 391.33% | - |
| EBITDA | 104.56M | 175.76M | 91.72M | 94.72M | 87.47M | 161.13M | 7.4M | 61.73M | 39.34M | 84.46M | 69.89M | 18.67M | 5.61M | -1.93M |
| EBITDA Margin % | 48.16% | 88.86% | 54.67% | 54.81% | 63.09% | 81.09% | 13.98% | 51.11% | 45.98% | 76.29% | 79.67% | 62.04% | 39.53% | -51.06% |
| EBITDA Growth % | 36.94% | 91.63% | -3.17% | 8.29% | -45.72% | 2076.91% | -88.01% | 56.9% | -53.42% | 20.86% | 274.26% | 232.61% | 391.33% | - |
| D&A (Non-Cash Add-back) | 3.02M | 5.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EBIT | 100.59M | 159.96M | 91.72M | 94.72M | 87.47M | 161.13M | 7.4M | 61.73M | 39.34M | 84.46M | 69.89M | 18.67M | 5.61M | -1.93M |
| Net Interest Income | 148.09M | 117.5M | 103.1M | 131.81M | 124.86M | 104.03M | 114.1M | 147.63M | 145.34M | 121.27M | 86.2M | 58.77M | 29.09M | 4.62M |
| Interest Income | 239.34M | 205.59M | 171.58M | 203.52M | 168.82M | 134.78M | 149.92M | 198.22M | 183.14M | 145.78M | 102.66M | 68.36M | 32.74M | 4.97M |
| Interest Expense | 91.25M | 88.09M | 68.48M | 71.71M | 43.96M | 30.75M | 35.82M | 50.59M | 37.8M | 24.51M | 16.46M | 9.58M | 3.65M | 353K |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 53.37M | 71.88M | 91.72M | 94.72M | 87.47M | 161.13M | 7.4M | 61.73M | 39.34M | 84.46M | 69.89M | 18.67M | 5.61M | -1.93M |
| Pretax Margin % | 24.58% | 36.34% | 54.67% | 54.81% | 63.09% | 81.09% | 13.98% | 51.11% | 45.98% | 76.29% | 79.67% | 62.04% | 39.53% | -51.06% |
| Income Tax | 1.67M | 1.91M | 2.74M | 2.44M | 1.83M | 782K | 573K | 404K | 230K | 264K | 76K | 0 | 0 | 0 |
| Effective Tax Rate % | 3.13% | 2.65% | 2.99% | 2.57% | 2.09% | 0.49% | 7.74% | 0.65% | 0.58% | 0.31% | 0.11% | 0% | 0% | 0% |
| Net Income | 51.7M | 69.97M | 88.98M | 92.28M | 85.64M | 160.35M | 6.83M | 61.33M | 39.12M | 84.2M | 69.81M | 18.67M | 5.61M | -1.93M |
| Net Margin % | 23.81% | 35.38% | 53.04% | 53.4% | 61.77% | 80.69% | 12.9% | 50.78% | 45.71% | 76.05% | 79.59% | 62.04% | 39.53% | -51.06% |
| Net Income Growth % | -29.92% | -21.36% | -3.58% | 7.76% | -46.59% | 2248.12% | -88.87% | 56.79% | -53.55% | 20.61% | 273.85% | 232.61% | 391.33% | - |
| Net Income (Continuing) | 51.7M | 69.97M | 88.98M | 92.28M | 85.64M | 160.35M | 6.83M | 61.33M | 39.12M | 84.2M | 69.81M | 18.67M | 5.61M | -1.93M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 873.49M | 801.91M | 654.25M | 0 | 0 | 0 |
| EPS (Diluted) | 0.73 | 1.01 | 1.58 | 1.64 | 1.49 | 2.69 | 0.08 | 1.02 | 0.63 | 1.59 | 2.03 | 0.56 | 0.17 | -0.06 |
| EPS Growth % | -45.76% | -36.08% | -3.66% | 10.07% | -44.61% | 3233.33% | -92.09% | 61.9% | -60.38% | -21.67% | 262.5% | 229.41% | 392.6% | - |
| EPS (Basic) | - | 1.02 | 1.68 | 1.75 | 1.58 | 2.89 | 0.08 | 1.02 | 0.63 | 1.59 | 2.03 | 0.56 | 0.17 | -0.06 |
| Diluted Shares Outstanding | 70.91M | 69.04M | 56.47M | 56.31M | 57.48M | 59.53M | 56.42M | 60.19M | 62.53M | 53M | 34.4M | 33.17M | 33.17M | 33.17M |
| Basic Shares Outstanding | 70.91M | 67.72M | 50.83M | 54.18M | 55.13M | 58.23M | 56.42M | 60.19M | 62.53M | 53M | 34.4M | 33.17M | 33.17M | 33.17M |
| Dividend Payout Ratio | - | 148.69% | 1.45% | 100.81% | - | - | 1413.84% | 174.62% | 238.54% | 90.31% | 87.67% | 190.38% | 211.12% | - |
Portfolio Valuation Model Sensitivity
As reported in recent financial filings, CGBD's gross margin has exhibited significant volatility, fluctuating from a low of 44.4% in 2025Q2 to a peak of 106.8% in 2025Q4, suggesting that the underlying interest income and asset valuation adjustments are highly sensitive to market-driven credit conditions.
The extreme variance in gross margins indicates that the company's core lending spread is not as stable as traditional senior secured portfolios might suggest. Investors should monitor whether these swings are driven by non-cash valuation adjustments or actual shifts in the yield-to-cost spread of the underlying loan book.
Based on the provided income statement data, CGBD's operating income has failed to scale consistently with revenue, as evidenced by the 2026Q1 operating margin compression to 25.9% compared to the 59.9% margin observed in 2023Q4, highlighting potential inefficiencies in managing fixed advisory fee structures.
The inability to maintain operating margins during periods of revenue contraction suggests that the cost structure remains relatively rigid. This lack of operating leverage may expose the company to significant earnings volatility if the interest income environment shifts unfavorably.
According to quarterly income statements, CGBD reported a net loss of $4.2 million in 2026Q1, a sharp reversal from the $29.6 million net income recorded in 2023Q4, which warrants further investigation into the sustainability of dividend payouts and the quality of non-interest income components.
The transition to negative net income suggests that the company's earnings quality is susceptible to sudden credit events or valuation write-downs. Analysts should scrutinize the reliance on non-cash income and the impact of potential fee waivers on the bottom line.
As indicated by the recent 2026Q1 net loss, the company's ability to maintain its historical dividend trajectory appears increasingly challenged, with the data suggesting that the current income generation may not be sufficient to cover distributions without relying on capital-eroding valuation adjustments or portfolio churn.
Short-term performance metrics suggest that the portfolio may be reaching a point of diminishing returns in the current interest rate environment. Investors should be wary of the potential for future dividend cuts if the net investment income does not stabilize above recent quarterly lows.
Quick answers to the most common questions about buying CGBD stock.
Carlyle Secured Lending, Inc. (CGBD) is profitable, generating $70.0M in net income for the fiscal year ending 2025 with a net profit margin of 35.4%.
Carlyle Secured Lending, Inc. (CGBD) reported an operating income of $170.5M, resulting in an operating profit margin of 86.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Carlyle Secured Lending, Inc. (CGBD) generated $140.2M in gross profit for the year, representing a gross profit margin of 70.9%. This demonstrates the company's core pricing power and production efficiency.