Gladstone Capital Corporation Reports Financial Results for its Second Quarter Ended March 31, 2026
Rhea-AI Summary
Gladstone Capital (Nasdaq:GLAD) reported Q2 fiscal 2026 results for the quarter ended March 31, 2026. Net investment income was $11.8 million ($0.52 per share); total investment income was $25.992 million. Net assets increased by $15.459 million, driven by $11.8 million of NII and $4.8 million of net unrealized appreciation. Portfolio activity included $43.6 million of investments during the quarter and subsequent April investments of $45.2 million in OneSource and SWECO. The Board declared quarterly common distributions totaling $0.45 per share.
Positive
- Net assets from operations +183.4% to $15.459M for the quarter
- Net investment income of $11.838M, or $0.52 per common share
- Invested $43.560M during the quarter, including $34.0M in new portfolio companies
- Subsequent April investments of $12.7M in OneSource and $32.5M in SWECO
Negative
- Total invested fell 56.1% quarter over quarter to $43.560M, indicating lower deployment versus prior quarter
News Market Reaction – GLAD
In the May 7 session, GLAD gained 4.06%, reflecting a moderate positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Quarterly earnings | Positive | -5.7% | Q1 2026 results showed higher investment income and solid NII with lower dividend. |
| Nov 17 | Annual results | Positive | +5.8% | Q4 and FY25 results with higher income, rising distributions and strong realized gains. |
| Aug 04 | Quarterly earnings | Neutral | -0.7% | Q3 2025 results highlighted stable income and portfolio growth in new investments. |
| Jul 31 | Earnings call info | Neutral | -0.9% | Announcement of upcoming Q3 2025 earnings call and webcast logistics. |
| May 06 | Quarterly earnings | Neutral | -0.2% | Q2 2025 results with steady NII, lower yield and active portfolio repositioning. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-related news has produced mixed reactions: generally stable net investment income and NAV, but one notable selloff followed a prior earnings beat, while other quarters saw modest moves in both directions.
Across recent earnings events, Gladstone Capital has reported relatively steady net investment income around the $11–$11.4M range with per-share figures near $0.50–$0.52. NAV per share has hovered close to $21, and distributions have been actively managed, including a prior quarterly reduction. Larger portfolio moves, issuance of 5.875% convertible notes due 2030, and ongoing focus on secured first lien lending frame today’s Q2 2026 results as a continuation of this steady-income, actively managed capital structure story.
Key Terms
sofr financial
secured first lien debt financial
line of credit commitment financial
series a preferred stock financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, VA / ACCESS Newswire / May 6, 2026 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its second quarter ended March 31, 2026. 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 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: | March 31, 2026 | December 31, 2025 | Change | % Change | ||||||||||||
Total investment income | $ | 25,992 | $ | 24,511 | $ | 1,481 | 6.0 | % | ||||||||
Total expenses, net of credits | (14,154 | ) | (13,247 | ) | (907 | ) | 6.8 | |||||||||
Net investment income | 11,838 | 11,264 | 574 | 5.1 | ||||||||||||
Net investment income per common share | 0.52 | 0.50 | 0.02 | 4.0 | ||||||||||||
Cash distribution per common share | 0.45 | 0.45 | 0.00 | 0.0 | ||||||||||||
Net realized gain (loss) | (570 | ) | 296 | (866 | ) | NM | ||||||||||
Net unrealized appreciation (depreciation) | 4,779 | (5,638 | ) | 10,417 | NM | |||||||||||
Net increase (decrease) in net assets resulting from operations | 15,459 | 5,454 | 10,005 | 183.4 | ||||||||||||
Weighted average yield on interest-bearing investments | 11.8 | % | 12.2 | % | (0.4 | )% | (3.3 | ) | ||||||||
Total invested | $ | 43,560 | $ | 99,164 | $ | (55,604 | ) | (56.1 | ) | |||||||
Total repayments and net proceeds | 46,306 | 52,759 | (6,453 | ) | (12.2 | ) | ||||||||||
As of: | March 31, 2026 | December 31, 2025 | Change | % Change | ||||||||||||
Total investments, at fair value | $ |
| $ | 902,912 | $ | 3,932 | 0.4 | % | ||||||||
Fair value, as a percent of cost | 98.0 | % | 97.5 | % | 0.5 | % | 0.5 | |||||||||
Net asset value per common share | $ | 21.36 | $ | 21.13 | $ | 0.23 | 1.1 | |||||||||
NM - not meaningful
Second Fiscal Quarter 2026 Highlights:
Portfolio Activity: Invested
$34.0 million in three new portfolio companies and$9.6 million in existing portfolio companies offsetting a large prepayment early in the period.Net Investment Income: Prepayment fees and equity distributions more than offset lower SOFR rates lifting net investment income by
5.1% .Portfolio Appreciation: The operating performance and scale of several equity positions more than offset any loan market valuation movements contributing to the
$0.23 share increase in NAV per share.
Second Fiscal Quarter 2026 Results:
Total investment income increased by
Total expenses increased by
Net investment income for the quarter ended March 31, 2026 was
The net increase in net assets resulting from operations was
Subsequent Events: Subsequent to March 31, 2026, the following significant events occurred:
Portfolio Activity:
In April 2026, we invested
$12.7 million in OneSource HoldCo LLC ("OneSource") through secured first lien debt and common equity. We also extended OneSource a$2.0 million line of credit commitment, of which$1.0 million was funded at close.In April 2026, we invested
$32.5 million in SWECO Worldwide, Inc. ("SWECO") through secured first lien debt and common equity. We also extended SWECO a$6.0 million line of credit commitment, which was unfunded at close.
Distributions and Dividends Declared:
In April 2026, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date | Payment Date | Distribution per Common Share | ||||
April 24, 2026 | April 30, 2026 | $ | 0.15 | |||
May 20, 2026 | May 29, 2026 | 0.15 | ||||
June 23, 2026 | June 30, 2026 | 0.15 | ||||
Total for the Quarter | $ | 0.45 | ||||
Record Date | Payment Date | Distribution per Series A Preferred Stock | ||||
April 27, 2026 | May 5, 2026 | $ | 0.130208 | |||
May 27, 2026 | June 5, 2026 | 0.130208 | ||||
June 25, 2026 | July 2, 2026 | 0.130208 | ||||
Total for the Quarter | $ | 0.390624 | ||||
Comments from Gladstone Capital's CEO and President, Bob Marcotte: "The strength of our performance this quarter emanated from our lower middle market focus which supported the timely recycling of our invested capital while generating prepayment fees, as well as delivering equity distributions and appreciation from the organic growth and maturity of our modest equity exposure. Based on the current outlook for floating rates and prevailing spreads, we feel well positioned to sustain our distributions and deliver strong economic returns for our shareholders over the balance of 2026."
Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, May 7, 2026, 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 May 14, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13759085. 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-Q, 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 March 31, 2026, 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