Gladstone Capital Corporation Reports Financial Results for its Third Quarter Ended June 30, 2026
Rhea-AI Summary
Gladstone Capital (Nasdaq: GLAD) reported third fiscal quarter 2026 net investment income of $11.0 million, or $0.49 per share, versus $11.8 million, or $0.52, in the prior quarter. Total interest income rose 4.7% to $24.3 million, while total other income fell sharply due to prior quarter one-time items.
Total investments at fair value increased 5.1% quarter over quarter to $953.3 million, and net asset value per share rose to $21.50 from $21.36. The weighted average yield on interest-bearing investments remained 11.8%. The company invested $66.7 million in four new portfolio companies and $15.4 million in existing ones, generating net originations of $41.9 million and net portfolio appreciation of $3.0 million.
Gladstone Capital issued $60 million of 7% notes due December 2029, increasing Bank Line availability to over $170 million. The board declared common distributions totaling $0.45 per share for the September 2026 quarter and Series A preferred distributions totaling $0.390624. Subsequent to quarter end, two significant portfolio repayments occurred, including a $25.7 million reinvestment in Pan-Am Dental.
Positive
- Total interest income up 4.7% QoQ to $24.3 million
- Total investments at fair value up 5.1% QoQ to $953.3 million
- Net investment income $11.0 million, or $0.49 per share
- NAV per share increased to $21.50, up 0.7% QoQ
- New investments and add-ons $82.1 million with $41.9 million net originations
- Common distributions $0.45 per share, fully covered by NII of $0.49
- 7% notes due 2029 issued for $60 million, expanding liquidity
- Portfolio yield maintained at 11.8% despite asset turnover
Negative
- Net investment income declined 7.0% QoQ from $11.8 million
- Net increase in net assets from operations down 14.2% QoQ
- Total other income down 92.8% QoQ due to lack of one-time items
- Interest expense increased by $0.6 million quarter over quarter
- Non-earning investments increased to five companies, $26.7 million, 3.1% of debt fair value
News Explained
At June 30, cash was $2,350,000, equal to 5.7 historical cash-use days, while non-earning investments reached $26.7 million across five companies.
This is Gladstone Capital's unaudited quarterly-results disclosure for the quarter ended
A Form 10-Q is an unaudited quarterly report containing interim financial statements and updates on risks and liquidity, and the company filed one on
The release reports that non-earning investments increased to five companies, totaling
Because the release says its financial information is not comprehensive and lacks notes, the filed Form 10-Q is the named document for checking liquidity details and the treatment of those non-earning investments.
Sources and calculations
- Gladstone Capital third-quarter results release (2026-08-04)
- Gladstone Capital Form 10-Q (2026-08-04)
- Gladstone Capital third-quarter fundamentals record (2026Q3)
- Form 10-Q purpose (2026-07-17)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $2,350,000 / ($36,880,000 / 90) = [object Object]
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 06 | Q2 earnings report | Positive | +4.1% | Quarterly income and portfolio activity accompanied a positive 24-hour price reaction. |
| Feb 04 | Q1 earnings report | Positive | -5.7% | Income and portfolio value increased while the stock posted a negative 24-hour reaction. |
| Nov 17 | Q4 earnings report | Positive | +5.8% | Quarterly and annual results accompanied a positive 24-hour price reaction. |
| Aug 04 | Q3 earnings report | Neutral | -0.7% | Stable quarterly performance accompanied a negative 24-hour price reaction. |
| Jul 31 | Earnings call notice | Neutral | -0.9% | Conference call scheduling information preceded a negative 24-hour price reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with two aligned positive reactions and three divergences.
Key Terms
form 10-q regulatory
net investment income financial
net unrealized appreciation financial
secured first lien debt financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MCLEAN, VA / ACCESS Newswire / August 4, 2026 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its third quarter ended June 30, 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: | June 30, 2026 | March 31, 2026 | Change | % Change | ||||||||||||
Total interest income | $ | 24,294 | $ | 23,196 | $ | 1,098 | 4.7 | % | ||||||||
Total other income | 201 | 2,796 | (2,595 | ) | (92.8 | ) | ||||||||||
Total expenses, net of credits | (13,490 | ) | (14,154 | ) | 664 | (4.7 | ) | |||||||||
Net investment income | 11,005 | 11,838 | (833 | ) | (7.0 | ) | ||||||||||
Net investment income per common share | 0.49 | 0.52 | (0.03 | ) | (5.8 | ) | ||||||||||
Cash distribution per common share | 0.45 | 0.45 | 0.00 | 0.0 | ||||||||||||
Net realized gain (loss) | (20 | ) | (570 | ) | 550 | (96.5 | ) | |||||||||
Net unrealized appreciation (depreciation) | 3,014 | 4,779 | (1,765 | ) | (36.9 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 13,270 | 15,459 | (2,189 | ) | (14.2 | ) | ||||||||||
Weighted average yield on interest-bearing investments | 11.8 | % | 11.8 | % | 0.0 | % | 0.0 | |||||||||
Total invested | $ | 82,090 | $ | 43,560 | $ | 38,530 | 88.5 | |||||||||
Total repayments and net proceeds | 40,226 | 46,306 | (6,080 | ) | (13.1 | ) | ||||||||||
As of: | June 30, 2026 | March 31, 2026 | Change | % Change | ||||||||||||
Total investments, at fair value | $ | 953,326 | $ | 906,844 | $ | 46,482 | 5.1 | % | ||||||||
Fair value, as a percent of cost | 98.4 | % | 98.0 | % | 0.4 | % | 0.4 | |||||||||
Net asset value per common share | $ | 21.50 | $ | 21.36 | $ | 0.14 | 0.7 | |||||||||
Third Fiscal Quarter 2026 Highlights:
Portfolio Activity: Invested
$66.7 million in four new portfolio companies and$15.4 million in existing portfolio companies contributing to the net originations of$41.9 million .Portfolio Yield: Maintained portfolio weighted average yield at
11.8% despite asset turnover contributing to increased net interest income.Portfolio Performance: Net portfolio appreciation of
$3.0 million ($0.13 /share) as strong performers outnumbered decliners which included an increase in non-earning investments to five companies or$26.7 million or3.1% of debt investments at fair value.Expanded Capital Base: Closed on
$60.0 million 7% note issue due December 2029 expanding Bank Line availability to more than$170 million .
Third Fiscal Quarter 2026 Results:
Interest income increased by
Other income decreased by
Total expenses decreased by
Net investment income for the quarter ended June 30, 2026 was
The net increase in net assets resulting from operations was
Subsequent Events: Subsequent to June 30, 2026, the following significant events occurred:
Portfolio Activity:
In July 2026, our debt investment in Pan-Am Dental, LLC ("Pan-Am") was refinanced. Our existing debt investment totaling
$23.0 million was repaid at par, and we invested a total of$25.7 million in Pan-Am through new secured first lien debt and additional equity.In July 2026, our investment in Imperative Holdings Corporation paid off, which resulted in a net realized gain on our common equity and the repayment of our debt investment of
$11.0 million at par.
Distributions and Dividends Declared:
In July 2026, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date | Payment Date | Distribution per Common Share | |||
July 24, 2026 | July 31, 2026 | $ | 0.15 | ||
August 18, 2026 | August 31, 2026 | 0.15 | |||
September 21, 2026 | September 30, 2026 | 0.15 | |||
Total for the Quarter | $ | 0.45 | |||
Record Date | Payment Date | Distribution per Series A Preferred Stock | |||
July 28, 2026 | August 5, 2026 | $ | 0.130208 | ||
August 26, 2026 | September 4, 2026 | 0.130208 | |||
September 25, 2026 | October 5, 2026 | 0.130208 | |||
Total for the Quarter | $ | 0.390624 | |||
Comments from Gladstone Capital's CEO and President, Bob Marcotte: "The combination of strong lower middle market deal flow and prevailing spreads supported a solid increase in our core net interest income last quarter and is key to sustaining our distributions and delivering 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 Wednesday, August 5, 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 August 12, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13760770. 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 June 30, 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