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Gladstone Investment Corporation

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Gladstone Investment Corporation • NASDAQ
$14.02 ▲ 0.36% (+0.05)
Market Cap $522.04 M
52w High $15.34
52w Low $11.42
Dividend Yield 1.50%
P/E 5.59
Volume 69.08K
Outstanding Shares 37.24M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $36.113M ▲ $-2.227M ▼ $28.709M ▲ 79.498% ▲ $0 ▼ $28.709M ▲
Q1-2026 $25.741M $-1.114M $17.873M 69.434% $0.21 ▼ $17.873M
Q4-2025 $25.741M ▼ $-1.114M ▲ $17.873M ▼ 69.434% ▼ $0.49 ▼ $17.873M ▼
Q3-2025 $42.07M ▲ $-2.805M ▼ $38.49M ▲ 91.49% ▲ $1.05 ▲ $38.49M ▲
Q2-2025 $21.883M $2K $15.482M 70.749% $0.42 $15.482M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $210K ▼ $1.144B ▲ $608.596M ▲ $535.843M ▲
Q1-2026 $2.569M $1.088B $597.707M $490.053M
Q4-2025 $2.569M ▲ $1.088B ▲ $597.707M ▲ $490.053M ▲
Q3-2025 $2.025M $868.78M $410.405M $458.375M
Q2-2025 $2.025M $868.78M $410.405M $458.375M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $28.709M ▲ $8.942M ▲ $-69.6M ▼ $57.54M ▲ $-3.118M ▲ $8.942M ▲
Q1-2026 $7.772M ▼ $8.291M ▼ $-58.472M ▼ $40.382M ▲ $-9.799M ▼ $8.291M ▼
Q4-2025 $17.873M ▼ $36.605M ▲ $76.075M ▲ $-100.673M ▼ $12.007M ▲ $36.605M ▲
Q3-2025 $38.49M ▲ $9.738M ▼ $-181.594M ▼ $172.329M ▲ $473K ▲ $9.738M ▼
Q2-2025 $15.482M $63.163M $0 $-63.679M $-516K $63.163M

Five-Year Company Overview

Income Statement

Income Statement Gladstone Investment’s income profile looks solid but somewhat uneven, which is typical for a business development company. Over the past several years, investment income has generally grown, with a noticeable step-up during stronger exit years and a softer result more recently. Profitability is high in most years because the model is lean: once interest and fee income come in, a large share tends to fall through to the bottom line. That said, earnings per share have been quite volatile, swinging up in years with strong realizations and down when exits are quieter or credit conditions are tougher. This pattern suggests a business that can be very profitable over time, but where individual years can differ a lot depending on deal activity and market conditions.

Balance Sheet

Balance Sheet The balance sheet shows a gradual build-out of the investment portfolio, with total assets climbing over the past five years. Equity has also increased, suggesting that retained gains and capital raising have supported growth rather than stretching the balance sheet purely through borrowing. Debt levels have risen along with assets, so leverage is clearly higher than it was a few years ago, but not out of line for a BDC focused on income generation. Cash on hand, however, is quite thin, which means the company depends heavily on its credit facilities and repayments from portfolio companies to manage liquidity. This is common in the sector but does leave less room for error if markets suddenly tighten.

Cash Flow

Cash Flow Cash flow is lumpy, reflecting the reality of a company that makes and exits private investments rather than running a traditional operating business. Some years show healthy positive operating cash flow, while others dip into negative territory when capital is being deployed more quickly than it is coming back. Because physical capital spending is minimal, free cash flow essentially mirrors operating cash flow. The key message is that cash generation is highly timing-dependent: when exits and interest collections are strong, cash builds; when new deals are front-loaded, cash can look weak. This amplifies the importance of stable funding lines and careful pacing of new investments, especially given the low cash balances.

Competitive Edge

Competitive Edge Gladstone Investment operates in a defined niche: lower middle-market companies that are often too small for large private equity funds but need more sophisticated capital than traditional bank loans. Its ability to provide both debt and equity in one package gives it a “one-stop” appeal, simplifying life for business owners and sponsors. Its public BDC structure allows it to offer long-term, patient capital instead of being forced into quick exits by a fixed fund life, which can be attractive to management teams seeking stability. The firm’s active involvement, including board participation, can add operational and strategic value beyond pure financing. On the other hand, it still competes with a growing universe of private credit funds and other BDCs chasing similar deals, so maintaining disciplined underwriting and deal selectivity remains crucial.

Innovation and R&D

Innovation and R&D Innovation for Gladstone Investment is less about technology and more about how it structures and delivers capital. Its buy-and-build approach—combining flexible debt with meaningful equity stakes—acts as its core “R&D,” refining how transactions are designed to appeal to owners while targeting both current income and long-term gains. The company’s edge lies in tailoring capital structures, using its public, permanent-capital model to be a patient partner, and leveraging the broader Gladstone family of funds for expertise and relationships. There is little emphasis on traditional research and development; instead, innovation is embedded in deal structuring, portfolio support, and continuous refinement of underwriting and risk management processes.

Summary

Overall, Gladstone Investment appears to be a specialized income-focused investor with a reasonably strong and growing platform, but with earnings and cash flows that naturally swing with the deal cycle. Its niche focus, integrated debt-and-equity offering, and patient capital model are clear strengths that can help it win attractive transactions in the lower middle market. Key watchpoints include rising leverage, very low cash buffers, and the inherent volatility of results tied to exits and credit conditions. The company’s long-term success will depend on maintaining credit quality, accessing stable funding, and continuing to find solid portfolio companies at sensible valuations. Dividend sustainability and total return will hinge on how well those elements are managed across economic cycles.

NEWS

November 14, 2025 · 8:30 AM UTC

Gladstone Investment Announces Intent to Redeem All Outstanding 8.00% Notes due 2028

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November 6, 2025 · 4:30 PM UTC

Gladstone Investment Corporation Prices Offering of 6.875% Notes due 2028

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November 4, 2025 · 4:20 PM UTC

Gladstone Investment Corporation Reports Financial Results for its Second Quarter Ended September 30, 2025

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November 3, 2025 · 8:30 AM UTC

Gladstone Investment Corporation Earnings Call and Webcast Information

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October 14, 2025 · 4:05 PM UTC

Gladstone Investment Announces Monthly Cash Distributions for October, November and December 2025, and Earnings Release and Conference Call Dates for the Second Fiscal Quarter

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