Gladstone Capital (GLAD) investor relations material

Executive summary

• Net investment income for the quarter ended March 31, 2026 was $11.8 million ($0.52 per share), up both sequentially and year-over-year, supported by prepayment fees and equity distributions.

• Net asset value per share increased to $21.36, reflecting portfolio appreciation and a $0.23 rise over the prior quarter.

• Total investments at fair value reached $906.8 million across 55 companies, with three new private equity-sponsored investments and repayments totaling $46.3 million.

• Portfolio yield declined 40 basis points to 11.8% due to lower SOFR rates, while LTM ROE on net investment income was 9.6%.

• Portfolio quality remained stable, with three non-earning debt investments unchanged and optimism for improvement.

Financial highlights

• Total investment income for the quarter was $26.0 million, up 6.0% quarter-over-quarter and 20.5% year-over-year, driven by higher other investment income including prepayment fees and equity dividends.

• Net investment income was $11.8 million or $0.52 per share, fully covering cash distributions and representing a 5.3% year-over-year increase.

• Net increase in net assets from operations was $15.5 million ($0.68 per share), up 75.7% year-over-year, driven by $4.8 million in unrealized gains.

• Weighted average yield on interest-bearing portfolio declined to 11.8%.

• Weighted average shares outstanding were 22,593,069 at quarter-end.

Outlook and guidance

• Declared regular monthly distributions of $0.15 per share for April, May, and June, annualizing to $1.80 per share and yielding about 9.4%.

• Management expects continued modest asset growth, stable spreads, and a healthy pipeline of lower middle market investment opportunities.

• Management expects to sustain distributions and deliver strong economic returns for shareholders over the balance of 2026.