FS Specialty Lending Fund Common Shares of Beneficial Interest (FSSL)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with what is knowable. FS Specialty Lending Fund is a financial-services lending vehicle. The latest quarter labeled 2025-Q2 showed revenue of $24.8 million, net income of $18.2 million, and a 73.54% net margin. That is a very profitable single quarter, and trailing free cash flow was $42.3 million. But one quarter and one cash-flow figure do not make a durable record. The FairStock Score is 40/100, and the Piotroski F-Score is 3/9, both suggesting weak financial signals. There is no ROE, debt, revenue-growth, profit-growth, or book-value data in the figures, so I cannot establish a competitive moat or balance-sheet strength. The Lynch category is none because there are only zero years of filed annual results, not the three needed. On valuation, the close on 2026-10-13 was $11.43. The FairStock-calculated Graham Number is $9.84, giving a margin of safety of -16.16%, so the price is above that conservative benchmark. The FairStock-calculated P/E is 19.36. With no dividend yield or P/B supplied, I have limited ways to cross-check. My conclusion: the business looks profitable in the latest quarter, but it lacks the long filed history, balance-sheet visibility, and margin of safety I demand. At $11.43, the price already reflects a fair amount of good news. I would need more evidence before calling it a bargain.

In plain English: FS Specialty Lending Fund is a financial-services lending fund. In the latest quarter labeled 2025-Q2, it reported $24.8 million of revenue and $18.2 million of net income, a 73.54% profit margin, but there is very little other financial history to judge. At $11.43 on 2026-10-13, the price looks full compared with the limited profit and value data available, and it is above a simple value estimate of $9.84.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer