Gladstone Investment Corporation Reports Financial Results for its Third Quarter Ended December 31, 2025
Rhea-AI Summary
Gladstone Investment (Nasdaq: GAIN) reported results for the quarter ended December 31, 2025. NAV per share rose to $14.95 from $13.53, driven by $70.2M of net unrealized appreciation and $3.5M realized gains. Net investment loss was $6.5M (‑$0.16/share) while Adjusted net investment income was $8.24M ($0.21/share). The company issued $60M of 6.875% notes, amended its $300M credit facility, sold 230,930 ATM shares, and paid $0.24 per share in quarterly distributions.
Positive
- Net unrealized appreciation of investments: $70.2 million
- NAV per share increased 10.5% to $14.95
- Adjusted net investment income of $8.24 million ($0.21 per share)
Negative
- Net investment loss of $6.5 million (‑$0.16 per share)
- Total expenses rose 50.3% quarter-over-quarter to $31.6 million
- Capital gains-based incentive fee accrual of $14.7 million
News Market Reaction – GAIN
On the day this news was published, GAIN gained 2.18%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Before the release, GAIN was up 0.14% with elevated volume, while peers in Asset Management showed mixed moves (e.g., GLAD -1.93%, BGY +0.84%, RMT +1.40%). This points to stock-specific dynamics rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 04 | Quarterly earnings | Positive | +0.4% | Q2 2025 results with net investment income and strong unrealized gains lifting NAV. |
| Nov 03 | Earnings call info | Neutral | +0.1% | Announcement of Q2 2025 earnings call and webcast logistics only. |
| Aug 12 | Quarterly earnings | Positive | +2.6% | Q1 2025 results showing higher net investment income and new portfolio investments. |
| Aug 11 | Earnings call info | Neutral | -0.1% | Notice of Q1 2025 earnings call and replay details without new financial data. |
| May 13 | Quarter & year results | Positive | +1.8% | Q4 and FY2025 results with higher income, realized gains and NAV increase. |
Earnings-related headlines have typically coincided with modestly positive price reactions, with full quarterly results tending to draw stronger moves than call-only notices.
Over the last year, Gladstone Investment has reported several earnings cycles, including Q4/FY2025 on May 13, 2025, Q1 on Aug 12, 2025, and Q2 on Nov 4, 2025. These updates highlighted shifts in net investment income, sizable realized and unrealized gains or losses, and changes in NAV per share. Earnings call notices around Aug 11, 2025 and Nov 3, 2025 produced only small price moves. Historically, full financial result releases have aligned with positive share reactions, while informational call notices have been largely neutral.
Historical Comparison
In the past year, GAIN had 5 earnings-tagged news events with an average move of 0.99%, and full results releases tended to draw the largest positive reactions versus call-only notices.
Earnings releases over FY2025 and into FY2026 trace a sequence from Q4/FY results through Q1 and Q2 updates, with NAV and net investment income fluctuating while the portfolio and credit facilities continued to expand.
Market Pulse Summary
This announcement details Q3 FY2026 results, highlighting a shift to a $6.509M net investment loss while adjusted NII reached $8.240M ($0.21 per share). NAV per share increased to $14.95 and total investments at fair value grew to $1,222,792K, supported by new deals like Rowan Energy and an expanded $300,000K credit facility. Investors may track future quarters for income stability versus reliance on unrealized gains and fee accruals.
Key Terms
form 10-q regulatory
non-gaap financial measure financial
at-the-market ("atm") program financial
credit facility financial
secured first lien debt financial
non-accrual status financial
secured overnight financing rate ("sofr") financial
paid-in-kind interest financial
AI-generated analysis. Not financial advice.
MCLEAN, VA / ACCESS Newswire / February 3, 2026 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its third fiscal quarter ended December 31, 2025. Please read the Company's Quarterly Report on Form 10-Q, 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)):
December 31, | September 30, | Change | % Change | |||||||||||||
For the quarter ended: | ||||||||||||||||
Total investment income | $ | 25,062 | $ | 25,279 | $ | (217 | ) | (0.9 | )% | |||||||
Total expenses, net(A) | 31,571 | 21,000 | 10,571 | 50.3 | % | |||||||||||
Net investment (loss) income(A) | (6,509 | ) | 4,279 | (10,788 | ) | NM | ||||||||||
Net realized gain (loss) | 2,180 | (29,938 | ) | 32,118 | NM | |||||||||||
Net unrealized appreciation | 70,227 | 54,368 | 15,859 | 29.2 | % | |||||||||||
Net increase in net assets resulting from operations(A) | $ | 65,898 | $ | 28,709 | $ | 37,189 | 129.5 | % | ||||||||
Net investment (loss) income per weighted-average common share(A) | $ | (0.16 | ) | $ | 0.11 | $ | (0.27 | ) | NM | |||||||
Adjusted net investment income per weighted-average common share(B) | $ | 0.21 | $ | 0.24 | $ | (0.03 | ) | (12.5 | )% | |||||||
Net increase in net assets resulting from operations per weighted-average common share(A) | $ | 1.66 | $ | 0.75 | $ | 0.91 | 121.3 | % | ||||||||
Cash distribution per common share from net investment income(C) | $ | 0.24 | $ | 0.24 | $ | - | - | % | ||||||||
Cash distribution per common share from net realized gains(C) | $ | - | $ | - | $ | - | - | % | ||||||||
Weighted-average yield on interest-bearing investments | 12.9 | % | 13.4 | % | (0.5 | )% | (3.7 | )% | ||||||||
Total dollars invested | $ | 37,438 | $ | 71,036 | $ | (33,598 | ) | (47.3 | )% | |||||||
Total dollars repaid and collected from sales and recapitalization of investments | $ | 19,221 | $ | 1,436 | $ | 17,785 | NM | |||||||||
Weighted-average shares of common stock outstanding - basic and diluted | 39,678,402 | 38,445,643 | 1,232,759 | 3.2 | % | |||||||||||
Total shares of common stock outstanding | 39,821,967 | 39,591,037 | 230,930 | 0.6 | % | |||||||||||
As of: | ||||||||||||||||
Total investments, at fair value | $ | 1,222,792 | $ | 1,130,859 | $ | 91,933 | 8.1 | % | ||||||||
Fair value, as a percent of cost | 115.5 | % | 109.0 | % | 6.5 | % | 6.0 | % | ||||||||
Number of portfolio companies | 29 | 28 | 1 | 3.6 | % | |||||||||||
Net assets | $ | 595,408 | $ | 535,843 | $ | 59,565 | 11.1 | % | ||||||||
Net asset value per common share | $ | 14.95 | $ | 13.53 | $ | 1.42 | 10.5 | % | ||||||||
Total distributable earnings | $ | 108,702 | $ | 52,249 | $ | 56,453 | 108.0 | % | ||||||||
Total distributable earnings per common share | $ | 2.73 | $ | 1.32 | $ | 1.41 | 106.8 | % | ||||||||
Estimated spillover | $ | 22,943 | $ | 25,435 | $ | (2,492 | ) | (9.8 | )% | |||||||
Estimated spillover per common share | $ | 0.58 | $ | 0.64 | $ | (0.06 | ) | (9.4 | )% | |||||||
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 (loss) income 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 December 31, 2025, the following significant events occurred:
Portfolio Activity:
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 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 in each of October, November and December 2025.
At-the-market ("ATM") Program Activity:
Sold 230,930 shares of our common stock under our common stock ATM program at a weighted-average gross price of
$14.03 per share and raised approximately$3.2 million in net proceeds. These sales were above our then-current NAV per share.
Financing activity:
Issued
6.875% Notes due 2028 with a total 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 .
Third Quarter Results: Net investment loss for the quarter ended December 31, 2025 was
Total investment income for the quarters ended December 31, 2025 and September 30, 2025 was
Total expenses, net of credits, for the quarters ended December 31, 2025 and September 30, 2025 was
Net asset value per common share as of December 31, 2025 was
The following table provides relevant information related to our notes payable and Credit Facility as of December 31, 2025:
Interest | Aggregate Principal Amount | |||||||
Notes Payable | ||||||||
5.00 | % | $ | 127,938 | |||||
4.875 | % | 134,550 | ||||||
7.875 | % | 126,500 | ||||||
6.875 | % | 60,000 | ||||||
Total Notes payable | $ | 448,988 | ||||||
Credit Facility (A) | ||||||||
Commitment amount | SOFR + | $ | 300,000 | |||||
Borrowings outstanding at cost | $ | 128,600 | ||||||
Availability(B) | $ | 171,400 | ||||||
Percentage of borrowings at:(C) | ||||||||
Fixed rate | 77.7 | % | ||||||
Floating rate | 22.3 | % | ||||||
(A) The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate ("SOFR").
(B) 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
(C) The percentage uses the Credit Facility borrowings outstanding at cost as of December 31, 2025. 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 December 31, 2025:
December 31, 2025(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 | 52.1 | % | ||
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 December 31, 2025. The weighted average interest rate is based on the cost balance of the debt investments.
(B) As of December 31, 2025,
Subsequent Events: After December 31, 2025, the following significant events occurred:
Distributions and Dividends:
In January 2026, our Board of Directors declared the following monthly distributions to common stockholders:
Record Date | Payment Date | Distribution per Common Share | ||||
January 23, 2026 | January 30, 2026 | $ | 0.08 | |||
February 18, 2026 | February 27, 2026 | 0.08 | ||||
March 23, 2026 | March 31, 2026 | 0.08 | ||||
Total for the Quarter: | $ | 0.24 | ||||
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 Quarterly Report on Form 10-Q 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 | ||||||||||||||||
December 31, 2025 | September 30, 2025 | |||||||||||||||
Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||
Net investment (loss) income | $ | (6,509 | ) | $ | (0.16 | ) | $ | 4,279 | $ | 0.11 | ||||||
Capital gains-based incentive fee | 14,749 | 0.37 | 4,897 | 0.13 | ||||||||||||
Adjusted net investment income | $ | 8,240 | $ | 0.21 | $ | 9,176 | $ | 0.24 | ||||||||
Weighted-average shares of common stock outstanding - basic and diluted | 39,678,402 | 38,445,643 | ||||||||||||||
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, February 4, 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 February 11, 2026. To hear the replay, please dial (877) 660-6853 and use the playback conference number 13757327. 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 Quarterly Report on Form 10-Q, 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-Q for the quarter ended December 31, 2025, 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
FAQ
What drove Gladstone Investment's NAV increase to $14.95 for the quarter ended December 31, 2025 (GAIN)?
Why did Gladstone Investment report a net investment loss of $6.5 million in Q3 2025 (GAIN)?
How did Adjusted net investment income compare quarter-over-quarter for Gladstone Investment (GAIN)?
What financing actions did Gladstone Investment complete after December 31, 2025 (GAIN)?
What distributions did Gladstone Investment declare for January–March 2026 and what is the quarterly total (GAIN)?
