Gladstone Capital (GLAD) investor relations material

Executive summary

• Net investment income for the quarter ended March 31, 2026 was $11.8 million ($0.52 per share), up 5.3% year-over-year and 5.1% sequentially, driven by prepayment fees and equity distributions.

• Total investment income rose 20.5% year-over-year and 6.0% sequentially to $26.0 million, supported by higher other income despite lower SOFR rates.

• Net increase in net assets from operations was $15.5 million ($0.68 per share), a 75.7% increase year-over-year.

• Portfolio consisted of 55 companies with a fair value of $906.8 million as of March 31, 2026.

• Portfolio quality remained stable, with three non-earning debt investments unchanged and optimism for improvement.

Financial highlights

• Weighted average yield on interest-bearing portfolio declined to 11.8% for the quarter, down from 12.6% year-over-year and 12.2% sequentially.

• Net investment income was $11.8 million or $0.52 per share, covering 116% of cash distributions.

• Net asset value per share increased from $21.13 to $21.36, up $0.23 sequentially.

• Total interest income was $23.2 million, up 8.7% year-over-year but down 2.9% sequentially.

• Aggregate distributions to common stockholders were $20.3 million for the six months ended March 31, 2026.

Outlook and guidance

• Management expects continued focus on lower middle market debt investments, maintaining RIC and BDC status, and sustaining distributions with strong economic returns for shareholders.

• Monthly distributions for May and June set at $0.15 per share, annualizing to $1.80 per share, yielding about 9.4%.

• Expecting a couple of exits in the near term but maintaining a healthy pipeline of investment opportunities.