Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2026
Rhea-AI Summary
Gladstone Investment (Nasdaq:GAIN) reported results for its fourth quarter and fiscal year ended March 31, 2026.
For FY 2026, total investment income was $99.1 million and net investment loss was $3.8 million, while net assets rose to $668.2 million and NAV per share increased to $16.78.
Total investments at fair value reached $1.31 billion, with fair value at 124.4% of cost. The company paid $0.99 per share from net investment income and $0.51 per share from realized gains, and raised equity and debt capital, including $100 million of 7.125% Notes due 2031.
Positive
- Total investments at fair value up 33.7% year-over-year to $1.31 billion
- Net assets increased 33.9% year-over-year to $668.2 million
- NAV per share rose 23.8% year-over-year to $16.78
- Net increase in net assets from operations grew to $184.8 million, up 182.8%
- Net unrealized appreciation of investments reached $216.1 million for FY 2026
- Raised approximately $41.5 million net through ATM equity sales above NAV
- Issued $100 million of 7.125% Notes due 2031 and $60 million of 6.875% Notes due 2028
- Increased credit facility size from $270.0 million to $300.0 million
- Paid $0.99 per share from net investment income and $0.51 from realized gains in FY 2026
Negative
- Net investment result shifted to $3.8 million loss from $28.1 million income year-over-year
- Net realized result moved to $27.6 million loss from $63.2 million gain year-over-year
- Total expenses, net, rose 56.8% year-over-year to $102.8 million
- Capital gains-based incentive fee accruals increased by about $30.5 million year-over-year
- Interest expense increased by about $8.9 million year-over-year
- Adjusted net investment income per share declined to $0.88 from $0.97
- Weighted-average yield on interest-bearing investments decreased to 13.3% from 13.9%
- Estimated spillover declined 61.5% to $21.3 million, or $0.53 per share
- Quarterly net investment loss widened to $10.6 million from $6.5 million sequentially
News Market Reaction – GAIN
In the May 13 session, GAIN declined 6.97%, reflecting a notable negative market reaction. Argus tracked a trough of -9.7% from its starting point during tracking. Our momentum scanner triggered 43 alerts that day, indicating elevated trading interest and price volatility. Trading volume was above average at 1.8x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Quarterly earnings | Positive | +2.2% | NAV rose to $14.95 on $70.2M unrealized gains and $3.5M realized gains. |
| Nov 04 | Quarterly earnings | Positive | +0.4% | Reported $4.3M NII, strong adjusted NII, and $54.4M unrealized appreciation. |
| Nov 03 | Earnings call info | Neutral | +0.0% | Announced scheduling and access details for the Q2 2025 earnings call. |
| Aug 12 | Quarterly earnings | Positive | +2.6% | Q1 FY2025 NII of $9.1M, new investments, and declared $0.08 distributions. |
| Aug 11 | Earnings call info | Neutral | -0.1% | Provided logistics for Q1 FY2025 earnings call and replay arrangements. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related releases have generally coincided with modest positive moves, suggesting investors often reward NAV growth and portfolio gains despite incentive-fee impacts.
Recent earnings updates for GAIN have highlighted rising NAV per share, sizable net unrealized appreciation, and ongoing portfolio expansion. Prior quarters noted NAV increases to $14.95 and $13.53, driven by unrealized gains and select realized losses such as the J.R. Hobbs restructuring. Adjusted net investment income has remained positive even when GAAP results reflected incentive-fee accruals. Today’s report extends these themes with higher $16.78 NAV and strong unrealized appreciation alongside GAAP net investment losses.
Key Terms
form 10-k regulatory
non-gaap financial
capital gains-based incentive fees financial
at-the-market ("atm") program financial
credit facility financial
notes due 2031 financial
sofr financial
non-accrual status financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, VA / ACCESS Newswire / May 12, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its fourth quarter and fiscal year ended March 31, 2026. Please read the Company's Annual Report on Form 10-K, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands, except per share data (unaudited)):
March 31, | December 31, | $ | % | |||||||||||||
For the quarter ended: | ||||||||||||||||
Total investment income | $ | 25,192 | $ | 25,062 | $ | 130 | 0.5 | % | ||||||||
Total expenses, net(A) | 35,802 | 31,571 | 4,231 | 13.4 | % | |||||||||||
Net investment loss(A) | (10,610 | ) | (6,509 | ) | (4,101 | ) | 63.0 | % | ||||||||
Net realized gain | 163 | 2,180 | (2,017 | ) | (92.5 | )% | ||||||||||
Net unrealized appreciation | 92,821 | 70,227 | 22,594 | 32.2 | % | |||||||||||
Net increase in net assets resulting from operations(A) | $ | 82,374 | $ | 65,898 | $ | 16,476 | 25.0 | % | ||||||||
Net investment loss per weighted-average common share(A) | $ | (0.27 | ) | $ | (0.16 | ) | $ | (0.11 | ) | 68.8 | % | |||||
Adjusted net investment income per weighted-average common share(B) | $ | 0.20 | $ | 0.21 | $ | (0.01 | ) | (4.8 | )% | |||||||
Net increase in net assets resulting from operations per weighted-average common share(A) | $ | 2.07 | $ | 1.66 | $ | 0.41 | 24.7 | % | ||||||||
Cash distribution per common share from net investment income(C) | $ | 0.24 | $ | 0.24 | $ | - | - | % | ||||||||
Cash distribution per common share from cumulative net realized gains(C) | $ | - | $ | - | $ | - | - | % | ||||||||
Weighted-average yield on interest-bearing investments | 12.9 | % | 12.9 | % | - | % | - | % | ||||||||
Total dollars invested | $ | 2,300 | $ | 37,438 | $ | (35,138 | ) | (93.9 | )% | |||||||
Total dollars repaid and/or collected from sales and recapitalization of investments | $ | 8,513 | $ | 19,221 | $ | (10,708 | ) | (55.7 | )% | |||||||
Weighted-average shares of common stock outstanding - basic and diluted | 39,821,967 | 39,678,402 | 143,565 | 0.4 | % | |||||||||||
Total shares of common stock outstanding | 39,821,967 | 39,821,967 | - | - | % | |||||||||||
As of: | ||||||||||||||||
Total investments, at fair value | $ | 1,309,248 | $ | 1,222,792 | $ | 86,456 | 7.1 | % | ||||||||
Fair value, as a percent of cost | 124.4 | % | 115.5 | % | 8.9 | % | 7.7 | % | ||||||||
Number of portfolio companies | 29 | 29 | - | - | % | |||||||||||
Net assets | $ | 668,225 | $ | 595,408 | $ | 72,817 | 12.2 | % | ||||||||
Net asset value per common share | $ | 16.78 | $ | 14.95 | $ | 1.83 | 12.2 | % | ||||||||
Total distributable earnings | $ | 181,468 | $ | 108,702 | $ | 72,766 | 66.9 | % | ||||||||
Total distributable earnings per common share | $ | 4.56 | $ | 2.73 | $ | 1.83 | 67.0 | % | ||||||||
Estimated spillover | $ | 21,283 | $ | 22,943 | $ | (1,660 | ) | (7.2 | )% | |||||||
Estimated spillover per common share | $ | 0.53 | $ | 0.58 | $ | (0.05 | ) | (8.6 | )% | |||||||
March 31, | March 31, | $ Change | % Change | |||||||||||||
For the year ended: | ||||||||||||||||
Total investment income | $ | 99,077 | $ | 93,662 | $ | 5,415 | 5.8 | % | ||||||||
Total expenses, net(A) | 102,829 | 65,567 | 37,262 | 56.8 | % | |||||||||||
Net investment (loss) income(A) | (3,752 | ) | 28,095 | (31,847 | ) | NM | ||||||||||
Net realized (loss) gain | (27,595 | ) | 63,184 | (90,779 | ) | NM | ||||||||||
Net unrealized appreciation (depreciation) | 216,100 | (25,960 | ) | 242,060 | NM | |||||||||||
Net increase in net assets resulting from operations(A) | $ | 184,753 | $ | 65,319 | $ | 119,434 | 182.8 | % | ||||||||
Net investment (loss) income per weighted-average common share(A) | $ | (0.10 | ) | $ | 0.76 | $ | (0.86 | ) | NM | |||||||
Adjusted net investment income per weighted-average common share(B) | $ | 0.88 | $ | 0.97 | $ | (0.09 | ) | (9.3 | )% | |||||||
Net increase in net assets resulting from operations per weighted-average common share(A) | $ | 4.77 | $ | 1.78 | $ | 2.99 | 168.0 | % | ||||||||
Cash distribution per common share from net investment income(C) | $ | 0.99 | $ | 0.64 | $ | 0.35 | 54.7 | % | ||||||||
Cash distribution per common share from cumulative net realized gains(C) | $ | 0.51 | $ | 1.02 | $ | (0.51 | ) | (50.0 | )% | |||||||
Weighted-average yield on interest-bearing investments | 13.3 | % | 13.9 | % | (0.6 | )% | (4.2 | )% | ||||||||
Total dollars invested | $ | 173,616 | $ | 221,217 | $ | (47,601 | ) | (21.5 | )% | |||||||
Total dollars repaid and/or collected from sales and recapitalization of investments | $ | 33,540 | $ | 199,625 | $ | (166,085 | ) | (83.2 | )% | |||||||
Weighted-average shares of common stock outstanding - basic and diluted | 38,712,611 | 36,735,218 | 1,977,393 | 5.4 | % | |||||||||||
Total shares of common stock outstanding | 39,821,967 | 36,837,381 | 2,984,586 | 8.1 | % | |||||||||||
As of: | ||||||||||||||||
Total investments, at fair value | $ | 1,309,248 | $ | 979,320 | $ | 329,928 | 33.7 | % | ||||||||
Fair value, as a percent of cost | 124.4 | % | 104.3 | % | 20.1 | % | 19.3 | % | ||||||||
Number of portfolio companies | 29 | 25 | 4 | 16.0 | % | |||||||||||
Net assets | $ | 668,225 | $ | 499,084 | $ | 169,141 | 33.9 | % | ||||||||
Net asset value per common share | $ | 16.78 | $ | 13.55 | $ | 3.23 | 23.8 | % | ||||||||
Total distributable earnings | $ | 181,468 | $ | 53,535 | $ | 127,933 | 239.0 | % | ||||||||
Total distributable earnings per common share | $ | 4.56 | $ | 1.45 | $ | 3.11 | 214.5 | % | ||||||||
Estimated spillover | $ | 21,283 | $ | 55,337 | $ | (34,054 | ) | (61.5 | )% | |||||||
Estimated spillover per common share | $ | 0.53 | $ | 1.50 | $ | (0.97 | ) | (64.7 | )% | |||||||
NM = Not Meaningful | ||||||||||||||||
(A) | Inclusive of |
(B) | See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income (loss) to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. |
(C) | Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. |
Highlights for the Quarter: During the quarter ended March 31, 2026, the following significant events occurred:
Distributions and Dividends:
Paid an
$0.08 per common share monthly distribution to common stockholders in each of January, February, and March 2026.
Financing Activity:
Issued
7.125% Notes due 2031 with an aggregate principal amount of$100.0 million .
Fourth Quarter Results: Net investment loss for the quarter ended March 31, 2026 was
Total investment income for the quarters ended March 31, 2026 and December 31, 2025 was
Total expenses, net of credits, for the quarters ended March 31, 2026 and December 31, 2025 was
Net asset value per common share as of March 31, 2026 was
Highlights for the Year: During the year ended March 31, 2026, the following significant events occurred:
Portfolio Activity:
In May 2025, we invested
$49.5 million in a new portfolio company, Smart Chemical Solutions, LLC ("Smart Chemical"), in the form of$35.7 million of secured first lien debt and$13.8 million of preferred equity. Smart Chemical, headquartered in Midland, Texas, is a leading provider of production chemicals for onshore oil and gas operators throughout the United States.In May 2025, we invested
$12.8 million in a new portfolio company, Sun State Nursery and Landscaping, LLC ("Sun State"), in the form of$9.8 million of secured first lien debt and$3.1 million of preferred equity. Sun State, headquartered in Jacksonville, Florida, is a leading commercial landscaping installation and maintenance provider in the Jacksonville area.In June 2025, we restructured our investment in PSI Molded Plastics, Inc. As a result of the restructuring, we converted debt with a cost basis of
$10.6 million into preferred equity.In July 2025, we invested
$67.6 million in a new portfolio company, Global GRAB Technologies, Inc. ("Global GRAB"), in the form of$46.5 million of secured first lien debt and$21.1 million of preferred equity. Global GRAB, headquartered in Franklin, Tennessee, is a provider of turnkey perimeter security and hostile vehicle mitigation systems, serving various government and commercial organizations.In September 2025, we entered into a new
$20.0 million secured first lien term loan with J.R. Hobbs Co. - Atlanta, LLC ("J.R. Hobbs"), restructuring our previously outstanding first lien term loans and line of credit with an aggregate total cost basis of$49.9 million , which resulted in a realized loss of$29.9 million .In December 2025, we invested
$33.1 million in a new portfolio company, Rowan Energy Inc. ("Rowan"), in the form of$25.8 million of secured first lien debt and$7.3 million of preferred equity. Rowan, headquartered in Arcadia, Oklahoma, specializes in advanced frac sand filtration, completion-equipment deployment and field-operations support.
Distributions and Dividends:
Paid an
$0.08 per common share distribution to common stockholders each month from April 2025 through March 2026; andPaid a
$0.54 per common share supplemental distribution to common stockholders in June 2025.
At-the-market ("ATM") program activity:
Sold 2,984,586 shares of our common stock under our common stock ATM program at a weighted-average gross price of
$14.12 per share and raised approximately$41.5 million in net proceeds. These sales were above our then current NAV per share.
Financing Activities:
Issued
6.875% Notes due 2028 with an aggregate principal amount of$60.0 million .Amended our credit facility, increasing the size from
$270.0 million to$300.0 million .Voluntarily redeemed the
8.00% Notes due 2028 with an aggregate principal amount of$74.8 million .Issued
7.125% Notes due 2031 with an aggregate principal amount of$100.0 million .
Fiscal Year End Results: Net investment loss for the year ended March 31, 2026 was
Total investment income for the years ended March 31, 2026 and 2025 was
Total expenses, net of credits, for the years ended March 31, 2026 and 2025 was
Net asset value per common share as of March 31, 2026 was
The following table provides relevant information related to our notes payable and Credit Facility as of March 31, 2026:
Interest Rate | Aggregate Principal Amount | |||||||
Notes Payable | ||||||||
$ | 127,938 | |||||||
134,550 | ||||||||
126,500 | ||||||||
60,000 | ||||||||
100,000 | ||||||||
Total notes payable | $ | 548,988 | ||||||
Credit Facility (B) | ||||||||
Commitment amount | SOFR + | $ | 300,000 | |||||
Borrowings outstanding at cost | $ | 23,900 | ||||||
Availability(C) | $ | 276,100 | ||||||
Percentage of borrowings at:(D) | ||||||||
Fixed rate | 95.8 | % | ||||||
Floating rate | 4.2 | % | ||||||
(A) | On May 1, 2026, we repaid the |
(B) | The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate ("SOFR"). |
(C) | Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of |
(D) | The percentage uses the Credit Facility borrowings outstanding at cost as of March 31, 2026. The fixed rate borrowings consist of the outstanding notes payable. The floating rate borrowings consist of the Credit Facility borrowings outstanding at cost. |
The following table presents certain selected information regarding the debt investments of our portfolio companies as of March 31, 2026:
March 31, 2026(A)(B) | ||||
Weighted average interest rate of debt investments | 12.9 | % | ||
Weighted average interest rate floor of debt investments | 12.1 | % | ||
Current percentage of debt investments at interest rate floor | 52.5 | % | ||
Weighted average interest rate of debt investments assuming: | ||||
25 basis points decrease in SOFR | 12.8 | % | ||
50 basis points decrease in SOFR | 12.7 | % | ||
75 basis points decrease in SOFR | 12.6 | % | ||
100 basis points decrease in SOFR | 12.5 | % | ||
(A) | Debt investments presented exclude line of credit commitments and all debt investments on non-accrual status as of March 31, 2026. The weighted average interest rate is based on the cost balance of the debt investments. |
(B) | As of March 31, 2026, |
Subsequent Events: After March 31, 2026, the following significant events occurred:
Distributions and dividends: In April 2026, our Board of Directors declared the following monthly distributions to common stockholders:
Record Date | Payment Date | Distribution per Common Share | |||
April 24, 2026 | April 30, 2026 | $ | 0.08 | ||
May 20, 2026 | May 29, 2026 | 0.08 | |||
June 23, 2026 | June 30, 2026 | 0.08 | |||
Total for the Quarter: | $ | 0.24 | |||
Notes Payable: On May 1, 2026, we repaid the
5.00% Notes due 2026 with an aggregate principal amount outstanding of$127.9 million at maturity.
Non-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a weighted-average per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with GAAP. Adjusted net investment income represents net investment (loss) income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Company's investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. However, under GAAP, a capital gains-based incentive fee is accrued if realized capital gains and unrealized appreciation of investments exceed realized capital losses and unrealized depreciation of investments. Refer to Note 4 - Related Party Transactions in our Annual Report on Form 10-K for further discussion. The Company believes that Adjusted net investment income is a useful indicator of operations exclusive of any capital gains-based incentive fees, as net investment (loss) income does not include realized or unrealized investment activity associated with the capital gains-based incentive fee.
The following table provides a reconciliation of net investment (loss) income (the most comparable GAAP measure) to Adjusted net investment income for the periods presented (dollars in thousands, except per share amounts; unaudited):
For the quarter ended | ||||||||||||||||
March 31, 2026 | December 31, 2025 | |||||||||||||||
Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||
Net investment loss | $ | (10,610 | ) | $ | (0.27 | ) | $ | (6,509 | ) | $ | (0.16 | ) | ||||
Capital gains-based incentive fee | 18,533 | 0.47 | 14,749 | 0.37 | ||||||||||||
Adjusted net investment income | $ | 7,923 | $ | 0.20 | $ | 8,240 | $ | 0.21 | ||||||||
Weighted-average shares of common stock outstanding - basic and diluted | 39,821,967 | 39,678,402 | ||||||||||||||
For the year ended | ||||||||||||||||
March 31, 2026 | March 31, 2025 | |||||||||||||||
Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||
Net investment (loss) income | $ | (3,752 | ) | $ | (0.10 | ) | $ | 28,095 | $ | 0.76 | ||||||
Capital gains-based incentive fee | 37,970 | 0.98 | 7,445 | 0.21 | ||||||||||||
Adjusted net investment income | $ | 34,218 | $ | 0.88 | $ | 35,540 | $ | 0.97 | ||||||||
Weighted-average shares of common stock outstanding - basic and diluted | 38,712,611 | 36,735,218 | ||||||||||||||
Adjusted net investment income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted net investment income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Conference Call: The Company will hold its earnings release conference call on Wednesday, May 13, 2026, at 8:30 a.m. Eastern Time. Please call (866) 373-3416 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 20, 2026. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13759089. The replay will be available after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at www.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website.
About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.
To obtain a paper copy of our Annual Report on Form 10-K, filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company's Form 10-K for the year ended March 31, 2026, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit ir.gladstoneinvestment.com or call (703) 287-5893.
Forward-looking Statements:
The statements in this press release regarding potential future distributions, earnings and operations of the Company are "forward-looking statements." These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on the Company's current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect any future events or otherwise, except as required by law.
SOURCE: Gladstone Investment Corporation
View the original press release on ACCESS Newswire