Gladstone Capital Corporation Reports Financial Results for its First Quarter Ended December 31, 2025
Rhea-AI Summary
Gladstone Capital (Nasdaq:GLAD) reported results for the quarter ended December 31, 2025. Total investment income rose 2.4% to $24.5M while net investment income was $11.3M ($0.50/share). Total investments at fair value increased 5.1% to $902.9M and NAV was $21.13 per share.
Cash distribution per common share was $0.45 for the quarter (down 23.7% QoQ). The company increased its revolving credit commitment and completed $99.2M of new investments with significant repayments of $52.8M.
Positive
- Total investments at fair value increased by 5.1% to $902.9M
- Total investment income up 2.4% quarter-over-quarter to $24.5M
- Revolving credit commitment increased via Amendment No.11 by $25.0M (Feb 3, 2026)
Negative
- Cash distribution per common share fell 23.7% to $0.45 for the quarter
- Total invested during the quarter declined 21.7% to $99.2M
- Net unrealized depreciation of $5.6M reduced operating net assets, lowering quarterly net increase 61.0% QoQ
Key Figures
Market Reality Check
Peers on Argus
GLAD fell 1.28% with above-average volume, while several asset management peers like CCAP (-1.26%) and TCPC (-2.55%) also traded lower, but no names appeared in the momentum scanner, suggesting stock-specific rather than broad sector momentum.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 17 | Quarter & FY results | Positive | -2.8% | Reported Q4 and FY25 results with higher income, gains, and raised distributions. |
| Aug 04 | Quarterly results | Positive | -0.7% | Q3 2025 results with higher investment income and steady net investment income. |
| Jul 31 | Earnings call info | Neutral | -0.9% | Announcement of upcoming Q3 2025 earnings call and webcast details. |
| May 06 | Quarterly results | Positive | -0.2% | Q2 2025 results with solid net investment income and realized gains. |
| May 05 | Earnings call info | Neutral | -0.2% | Announcement of Q2 2025 earnings call and webcast logistics. |
Earnings and related calls have often seen mildly negative next-day moves despite generally stable or positive operating metrics.
Over the last few quarters, Gladstone Capital’s earnings updates have highlighted steady net investment income around the $11–11.4M level and consistent quarterly distributions near $0.495 per common share. Portfolio growth has continued, including invested capital of $73M in Q3 2025 and $126.6M in Q4 2025, with secured first lien loans remaining the core focus. Despite these constructive fundamentals, the stock typically showed modest negative moves following earnings, suggesting cautious sentiment around results.
Historical Comparison
In the past year, GLAD earnings-related headlines averaged a -0.96% move. Today’s pre-release setup, with shares already 32.32% below the 52-week high, fits a pattern of cautious trading into results.
Earnings releases from Q2 through Q4 2025 showed steady net investment income near $11–11.4M, rising portfolio investments, and maintained first-lien focus, framing today’s Q1 2026 update as a continuation of that trend.
Market Pulse Summary
This announcement details Q1 2026 results with higher total investment income of $24.5M, modestly lower net investment income per share of $0.50, and a reduced common distribution of $0.45. NAV per share edged down to $21.13 while total investments at fair value increased to $902.9M. Investors may watch trends in portfolio growth, credit performance, and dividend coverage, along with how changes in short-term rates affect the weighted average yield of 12.2%.
Key Terms
secured first lien financial
revolving line of credit financial
delayed draw term loan financial
AI-generated analysis. Not financial advice.
MCLEAN, VA / ACCESS Newswire / February 4, 2026 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its first 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 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: | December 31, 2025 | September 30, 2025 | Change | % | ||||||||||||
Total investment income | $ | 24,511 | $ | 23,936 | $ | 575 | 2.4 | % | ||||||||
Total expenses, net of credits | (13,247 | ) | (12,492 | ) | (755 | ) | 6.0 | |||||||||
Net investment income | 11,264 | 11,444 | (180 | ) | (1.6 | ) | ||||||||||
Net investment income per common share | 0.50 | 0.52 | (0.02 | ) | (3.8 | ) | ||||||||||
Cash distribution per common share | 0.45 | 0.59 | (0.14 | ) | (23.7 | ) | ||||||||||
Net realized gain (loss) | 296 | (6,258 | ) | 6,554 | (104.7 | ) | ||||||||||
Net unrealized appreciation (depreciation) | (5,638 | ) | 9,101 | (14,739 | ) | (161.9 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 5,454 | 13,971 | (8,517 | ) | (61.0 | ) | ||||||||||
Weighted average yield on interest-bearing investments | 12.2 | % | 12.5 | % | (0.3 | )% | (2.4 | ) | ||||||||
Total invested | $ | 99,164 | $ | 126,633 | $ | (27,469 | ) | (21.7 | ) | |||||||
Total repayments and net proceeds | 52,759 | 23,495 | 29,264 | 124.6 | ||||||||||||
As of: | December 31, 2025 | September 30, 2025 | Change | % | ||||||||||||
Total investments, at fair value | $ |
| $ | 859,124 | $ | 43,788 | 5.1 | % | ||||||||
Fair value, as a percent of cost | 97.5 | % | 98.0 | % | (0.5 | )% | (0.5 | ) | ||||||||
Net asset value per common share | $ | 21.13 | $ | 21.34 | $ | (0.21 | ) | (1.0 | ) | |||||||
First Fiscal Quarter 2026 Highlights:
Portfolio Activity: Invested
$37.8 million in two new portfolio companies and$61.3 million in existing portfolio companies.Portfolio Mix: Secured first lien assets continue to be over
70% of our debt investments, at cost.Credit Facility: Increased our revolving line of credit commitment by
$20.0 million .
First Fiscal Quarter 2026 Results:
Total investment income increased by
Total expenses increased by
Net investment income for the quarter ended December 31, 2025 was
The net increase in net assets resulting from operations was
Subsequent Events: Subsequent to December 31, 2025, the following significant events occurred:
Portfolio Activity:
In January 2026, our
$42.8 million debt investment in Vet's Choice Radiology LLC paid off at par. We also received a$0.9 million prepayment penalty in conjunction with the payoff.In January 2026, we invested
$6.0 million in IMX Power Holdings Inc. ("IMX") through secured first lien debt. We also extended IMX a$1.5 million line of credit commitment and a$3.0 million delayed draw term loan commitment, both of which were unfunded at close.
Revolving Line of Credit:
On February 3, 2026, we entered into Amendment No. 11 to our credit facility to increase the total commitment by
$25.0 million .
Distributions and Dividends Declared:
In January 2026, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date | Payment Date | Distribution per | |||
January 23, 2026 | January 30, 2026 | $ | 0.15 | ||
February 18, 2026 | February 27, 2026 | 0.15 | |||
March 23, 2026 | March 31, 2026 | 0.15 | |||
Total for the Quarter | $ | 0.45 | |||
Record Date | Payment Date | Distribution per | |||
January 27, 2026 | February 5, 2026 | $ | 0.130208 | ||
February 24, 2026 | March 5, 2026 | 0.130208 | |||
March 25, 2026 | April 3, 2026 | 0.130208 | |||
Total for the Quarter | $ | 0.390624 | |||
Comments from Gladstone Capital's President, Bob Marcotte: "We closed out 2025 with a healthy increase in earning assets and were able to sustain our net interest income, lending spreads and dividend coverage despite the decline in short term interest rates. We expect this trend to continue into 2026 as we work through a healthy backlog of pending investments and maintain our return and financing discipline within our core lower middle market investing focus."
Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, February 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 February 12, 2026. To hear the replay, please dial (877) 660-6853 and use playback conference number 13757325. 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 December 31, 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 (GLAD) results for the quarter ended December 31, 2025?
Why did GLAD's cash distribution per common share change in Q1 2026?
How much did Gladstone Capital invest and receive in repayments in Q1 2026 (GLAD)?
Did GLAD's portfolio fair value change for the quarter ended December 31, 2025?
What financing actions did Gladstone Capital (GLAD) take after December 31, 2025?
