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Gladstone Investment (GAIN) investor relations material

Gladstone Investment Q1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q1 2026 earnings summary13 Aug, 2025

Executive summary

  • Net investment income for the quarter was $9.1 million ($0.25/share), up 25.7% sequentially but down 26.8% year-over-year, with a net increase in net assets from operations of $7.8 million, reversing a prior year loss.

  • Total investment income for the quarter was $23.5 million, down 14.5% sequentially but up 6.2% year-over-year, driven by higher interest and dividend/success fee income.

  • Portfolio fair value reached $1.04 billion, up from $979 million, with investments in 28 operating businesses after three new investments totaling $130 million in the quarter and subsequent period.

  • Paid $0.78 per share in distributions, including a $0.54 supplemental distribution from realized capital gains.

  • Since inception, invested in 64 buyout companies, exited 33, and generated $353 million in net realized gains.

Financial highlights

  • Net asset value per share declined to $12.99 from $13.55, mainly due to distributions and unrealized depreciation.

  • Adjusted net investment income per share was $0.24, down from $0.26 in the prior quarter.

  • Aggregate cash distributions to stockholders totaled $28.8 million for the quarter.

  • Weighted-average yield on interest-bearing investments was 14.1%.

  • Net unrealized depreciation of $1.3 million was recorded, with the portfolio fair valued at 103.9% of cost.

Outlook and guidance

  • Board declared monthly distributions of $0.08 per share for July, August, and September 2025, and $0.24 per share in monthly distributions for Q3 2025.

  • Management expects continued focus on lower middle market buyouts and maintaining a portfolio mix of ~75% debt and ~25% equity at cost.

  • Subsequent to quarter-end, $67.6 million was invested in a new portfolio company and $12.1 million in net proceeds were raised via ATM equity sales.

  • Management remains optimistic for continued buyout activity and earnings growth for the remainder of the fiscal year.

  • Forward-looking statements caution about risks and uncertainties affecting future results and distributions.

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Frequently asked questions

Gladstone Investment Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time. Its subsidiary company invests in mezzanine debt instruments such as subordinated loans issued by private companies and warrants or options.

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