Because cells are richly endowed with androgen receptors, adipose tissue is a target of testosterone. The very first action of testosterone is to increase the density of the beta adrenergic receptors, the only receptors that can promote dat release from the adipose tissue. They're activated by epinephrine and norepinephrine, two hormones that are categorized as catecholamines. So, even if testosterone binds directly to your adipose cells, it wil promote fat mobilization indirectly.
When you increase the number of beta receptors it takes far less epinephrine or norepinephrine to promote lypolysis, or fat burning. In other words, testosterone increases the fat sensitivity to the two direct lypolytic hormones.
The sensitizing property of testosterone is greatly reinforced by the presence of growth hormone. There's a clear synergy between androgens and GH in upregulating the lypolytic beta receptors. Since testosterone itself can trigger the release of GH, you can appreciate how great that synergy is. Testosterone and GH have the same synergistic actions in promoting muscle anabolism, by acting on fat cells, testosterone can also inhibit fat uptake, which reduces the likelihood of adipose storage. So androgens not only promote fat release, but they also prevent the entry of new fat.
These two effects are reinforced by the testosterone-driven initiation of fat oxidation. Structures called mitochondria are found inside cells such as the ones in your muscles of liver. The mitochondria are the parts of the cells where fat is transformed into energy testosterone-binding sites have been identified on the mitochondria, and once activated by androgens, they accelerate the entry of fat molecules into the mitochondria.
The rate of entry is the limiting factor that determines how much fat a single mitochondrion can burn. The higher the rate of entry, the more fat you're going to lose. That acceleration of fat-oxidation by androgens is very useful, especially as you try to get lean, and it's the reason that highly androgenic drugs are so popular with competitors who are cutting up for a contest, even though they have no anabolic properties. THE MORE ANDROGENIC THE DRUG, THE MORE FAT WILL BE IMPORTED INTO THE MITOCHONDRIA FOR OXIDATION. For example, tren is well known for this. And the DHT derivatives bind strongly to the androgen receptor as well.
So testosterone promotes both fat mobilization and oxidation while preventing the entry of new fat molecules into your adipose tissue.