GLADSTONE INVESTMENT CORPORATION\DE (GAIN) Earnings History

GLADSTONE INVESTMENT CORPORATION\DE - Q3 FY2026 EarningsMissed

Filed at: Feb 3, 2026, 4:19 PM EST|Read from source

EXECUTIVE SUMMARY

Gladstone Investment Corporation reported a net investment loss for the quarter, primarily driven by increased expenses related to capital gains-based incentive fees. Despite a slight decrease in total investment income, net asset value per share saw a significant increase due to strong net unrealized appreciation.

POSITIVE HIGHLIGHTS

  • •

    Net asset value per common share increased to $14.95 from $13.53, driven by net unrealized appreciation of $70.2 million.

    positive
  • •

    Invested $33.1 million in a new portfolio company, Rowan Energy Inc., in December 2025.

    positive
  • •

    Sold 230,930 shares under ATM program, raising approximately $3.2 million in net proceeds.

    positive
  • •

    Number of portfolio companies increased to 29 from 28.

    positive

CONCERNS & RISKS

  • •

    Net investment loss for the quarter was $6.5 million, compared to net investment income of $4.3 million in the prior quarter.

    negative
  • •

    Total expenses increased by 50.3% to $31.6 million from $21.0 million, primarily due to a $9.9 million increase in accruals for capital gains-based incentive fees.

    negative
  • •

    Total investment income decreased by 0.9% to $25.1 million from $25.3 million.

    attention
  • •

    Weighted-average yield on interest-bearing investments decreased by 0.5% to 12.9%.

    attention
  • •

    Total dollars invested decreased significantly by 47.3% to $37.4 million from $71.0 million.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$25.06M
-0.9%
Net Income
Quarterly
$-6.51M
N/A
EPS (Diluted)
Quarterly
$-0.16
N/A
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
N/A
N/A

MARGIN ANALYSIS

Margin metrics will be available once backend extracts data from insights_json

SPECIAL ITEMS & ADJUSTMENTS

Q3 FY2026
Capital gains-based incentive fees accrued
Accrued in accordance with U.S. GAAP, not contractually due.
+$14.749M
$0.37 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Net investment loss for the quarter ended December 31, 2025 was $6.5 million, or $0.16 per weighted-average common share, compared to net investment income of $4.3 million, or $0.11 per weighted-average common share, for the quarter ended September 30, 2025.

— GLADSTONE INVESTMENT CORPORATION\DE, Q3 FY2026 2026 Earnings Call

This decrease was a result of an increase in total expenses, net of credits, primarily due to an increase in accruals for capital gains-based incentive fees, as well as a decrease in total investment income in the current quarter.

— GLADSTONE INVESTMENT CORPORATION\DE, Q3 FY2026 2026 Earnings Call

Net asset value per common share as of December 31, 2025 was $14.95, compared to $13.53 as of September 30, 2025.

— GLADSTONE INVESTMENT CORPORATION\DE, Q3 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Fair value, as a percent of cost
115.5
+6.0% YoY
Prior year: 109
%
Number of portfolio companies
29
+3.6% YoY
Prior year: 28
companies
Weighted-average yield on interest-bearing investments
12.9
-3.7% YoY
Prior year: 13.4
%

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.