Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2025
Rhea-AI Summary
Gladstone Capital (Nasdaq:GLAD) reported results for the quarter and fiscal year ended September 30, 2025, and filed its 10-K.
Key quarterly figures: total investment income $23.9M, net investment income $11.4M ($0.52/share), cash distribution $0.59/share, and NAV $21.34/share. Quarterly invested capital totaled $126.6M.
FY25 highlights: total investment income $89.1M, net investment income $45.2M ($2.02/share), cash distributions $2.48/share (up 25.3% YoY), net realized gains $55.6M, and net unrealized depreciation $42.7M. The company issued $149.5M of 5.875% convertible notes due 2030 and executed note redemptions and refinancing after 9/30.
Positive
- Cash distributions increased to $2.48 per share (+25.3% YoY)
- Net realized gains of $55.6 million in FY25
- Total invested of $396.8 million for the year ended Sept 30, 2025
- Issued convertible notes for gross proceeds of $149.5 million (5.875%, due 2030)
Negative
- Total investment income declined to $89.1 million in FY25 (-7.8% YoY)
- Net investment income decreased to $45.2 million in FY25 (-1.8% YoY)
- Net unrealized depreciation of $42.7 million in FY25
- Weighted average yield fell to 12.7% in FY25 from 13.9% (down 1.2 pts)
News Market Reaction 5 Alerts
On the day this news was published, GLAD declined 2.75%, reflecting a moderate negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $12M from the company's valuation, bringing the market cap to $441M at that time.
Data tracked by StockTitan Argus on the day of publication.
MCLEAN, VA / ACCESS Newswire / November 17, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its fourth quarter and fiscal year ended September 30, 2025. 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 and the Investors section of the Company's website at www.GladstoneCapital.com.
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended: | September 30, 2025 | June 30, 2025 | Change | % Change | ||||||||||||
Total investment income | $ | 23,936 | $ | 21,657 | $ | 2,279 | 10.5 | % | ||||||||
Total expenses, net of credits | (12,492 | ) | (10,363 | ) | (2,129 | ) | 20.5 | |||||||||
Net investment income | 11,444 | 11,294 | 150 | 1.3 | ||||||||||||
Net investment income per common share | 0.52 | 0.50 | 0.02 | 4.0 | ||||||||||||
Cash distribution per common share | 0.59 | 0.50 | 0.09 | 18.0 | ||||||||||||
Net realized gain (loss) | (6,258 | ) | (3,620 | ) | (2,638 | ) | 72.9 | |||||||||
Net unrealized appreciation (depreciation) | 9,101 | 15 | 9,086 | NM | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 13,971 | 7,448 | 6,523 | 87.6 | ||||||||||||
Weighted average yield on interest-bearing investments | 12.5 | % | 12.8 | % | (0.3 | )% | (2.3 | ) | ||||||||
Total invested | $ | 126,633 | $ | 72,952 | $ | 53,681 | 73.6 | |||||||||
Total repayments and net proceeds | 23,495 | 82,205 | (58,710 | ) | (71.4 | ) | ||||||||||
As of: | September 30, 2025 | June 30, 2025 | Change | % Change | ||||||||||||
Total investments, at fair value | $ | 859,124 | $ | 751,260 | $ | 107,864 | 14.4 | % | ||||||||
Fair value, as a percent of cost | 98.0 | % | 96.6 | % | 1.4 | % | 1.4 | |||||||||
Net asset value per common share | $ | 21.34 | $ | 21.25 | $ | 0.09 | 0.4 | |||||||||
NM- not meaningful
For the Year Ended: | September 30, | September 30, 2024 | Change | % Change | ||||||||||||
Total investment income | $ | 89,122 | $ | 96,621 | $ | (7,499 | ) | (7.8 | )% | |||||||
Total expenses, net of credits | (43,915 | ) | (50,562 | ) | (6,647 | ) | (13.1 | ) | ||||||||
Net investment income | 45,207 | 46,059 | (852 | ) | (1.8 | ) | ||||||||||
Net investment income per common share | 2.02 | 2.11 | (0.09 | ) | (4.3 | ) | ||||||||||
Cash distribution per common share | 2.48 | 1.98 | 0.50 | 25.3 | ||||||||||||
Net realized gain (loss) | 55,642 | 5,959 | 49,683 | NM | ||||||||||||
Net unrealized appreciation (depreciation) | (42,739 | ) | 42,703 | (85,442 | ) | NM | ||||||||||
Net increase (decrease) in net assets resulting from operations | 57,191 | 94,506 | (37,315 | ) | (39.5 | ) | ||||||||||
Weighted average yield on interest-bearing investments | 12.7 | % | 13.9 | % | (1.2 | )% | (8.6 | ) | ||||||||
Total invested | $ | 396,796 | $ | 177,649 | $ | 219,147 | 123.4 | |||||||||
Total repayments and proceeds | 352,317 | 136,270 | 216,047 | 158.5 | ||||||||||||
As of: | September 30, | September 30, 2024 | Change | % Change | ||||||||||||
Total investments, at fair value | $ | 859,124 | $ | 796,260 | $ | 62,864 | 7.9 | % | ||||||||
Fair value as a percent of cost | 98.0 | % | 103.3 | % | (5.3 | )% | (5.1 | ) | ||||||||
Net asset value per common share | $ | 21.34 | $ | 21.18 | $ | 0.16 | 0.8 | |||||||||
NM- not meaningful
Fourth Fiscal Quarter 2025 Highlights:
Portfolio Activity: Invested
$106.7 million in five new portfolio companies and$19.9 million in existing portfolio companies.Portfolio Mix: Secured first lien assets continue to be over
70% of our debt investments, at cost.Debt Issuance: Issued our
5.875% Convertible Notes, due 2030 (the "2030 Convertible Notes"), for gross proceeds of$149.5 million .
Fourth Fiscal Quarter 2025 Results:
Total investment income increased by
Total expenses increased by
Net investment income for the quarter ended September 30, 2025 was
The net increase in net assets resulting from operations was
Fiscal Year Ended 2025 Results:
Total investment income during the years ended September 30, 2025 and 2024 was
Expenses, net of any non-contractual, unconditional and irrevocable credits to fees from the Adviser, decreased
Net investment income for the year ended September 30, 2025 was
The net increase in net assets resulting from operations was
Subsequent Events: Subsequent to September 30, 2025, the following significant events occurred:
Portfolio Activity:
In October 2025, we invested
$11.0 million in Total Access Elevator, LLC ("Total Access"), an existing portfolio company, through secured first lien debt. We also extended Total Access a new$9.85 million delayed draw term loan commitment, which was unfunded at close.In October 2025, our
$28.1 million debt investment in Leadpoint Business Services, LLC paid off at par. We also received a$0.3 million prepayment penalty in conjunction with the payoff.In October 2025, the sale of our remaining common equity investment in Sokol and Company, LLC was completed, representing a return of our equity cost basis of
$0.5 million and a realized gain of approximately$1.8 million .In October 2025, our debt investment in Sea Link International IRB, Inc. ("Sea Link") paid off at par. We also received a
$0.2 million exit fee in conjunction with the payoff. We continue to hold common and preferred equity in Sea Link.In November 2025, we invested
$15.0 million in Turn Key Health Clinics, LLC, an existing portfolio company, through secured first lien debt.In November 2025, we invested
$26.6 million in Sicilian Oven Restaurants LLC through secured first lien debt and preferred equity.
Debt Redemption:
In October 2025, we voluntarily redeemed our
7.75% Notes, due 2028, with an aggregate principal amount of$57.0 million .In October 2025, we voluntarily redeemed our
5.125% Notes, due 2026, with an aggregate principal amount of$150.0 million .
Distributions and Dividends Declared:
In October 2025, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date | Payment Date | Distribution per Common Share | |||
October 24, 2025 | October 31, 2025 | $ | 0.15 | ||
November 17, 2025 | November 26, 2025 | 0.15 | |||
December 22, 2025 | December 31, 2025 | 0.15 | |||
Total for the Quarter | $ | 0.45 | |||
Record Date | Payment Date | Distribution per Series A Preferred Stock | |||
October 27, 2025 | November 5, 2025 | $ | 0.130208 | ||
November 25, 2025 | December 5, 2025 | 0.130208 | |||
December 29, 2025 | January 5, 2026 | 0.130208 | |||
Total for the Quarter | $ | 0.390624 | |||
Comments from Gladstone Capital's President, Bob Marcotte: "FY25 closed on a high note as our lower middle market investment focus produced over
$100 million of net originations, and we reset near term maturities and increased our floating rate funding via the debt refinancing concluded shortly after 9/30. These actions combined with our modest leverage have positioned us well to deliver continued asset growth and sustain our net interest income in support of future shareholder distributions."
Conference Call for Stockholders: The Company will hold its earnings release conference call on Tuesday, November 18, 2025, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 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 November 25, 2025. To hear the replay, please dial (877) 660-6853 and use playback conference number 13755536. The replay of the conference call will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company's quarterly conference call will also be available online at www.GladstoneCapital.com. The event will be archived and available for replay on the investors section of the Company's website.
About Gladstone Capital Corporation: Gladstone Capital Corporation is a publicly-traded business development company that invests in debt and equity securities, consisting primarily of secured first and second lien term loans to lower middle market businesses in the United States. Information on the business activities of Gladstone Capital and the other publicly-traded Gladstone funds can be found at www.GladstoneCompanies.com.
To obtain a paper copy of the Company's most recent Form 10-K, 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 September 30, 2025, including the notes to the consolidated financial statements contained therein.
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or (703) 287-5893.
Forward-looking Statements:
The statements in this press release about future growth and shareholder returns are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on our 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 our filings with the U.S. 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 Capital Corporation
View the original press release on ACCESS Newswire
FAQ
What were Gladstone Capital's key Q4 2025 results (Nasdaq:GLAD)?
How much did Gladstone Capital invest during fiscal year 2025 (GLAD)?
What dividend or distribution did Gladstone Capital declare after Sept 30, 2025 (GLAD)?
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