Gladstone Investment (GAIN) Q3 2026 earnings summary

Executive summary

• Net asset value (NAV) per share increased to $14.95 as of December 31, 2025, up from $13.53 at the prior quarter, reflecting strong portfolio appreciation and capital activity.

• Achieved strong performance in Q3 FY2026, with continued portfolio growth, robust results from existing companies, and four new portfolio investments.

• Portfolio includes 29 companies across 20 states and Canada, diversified by industry and geography.

• Since inception, invested over $2.2B and exited 33 companies, generating significant realized gains and a 4.0x cash-on-cash equity return.

• Consistent and increasing monthly distributions, with a 100% increase in annual run-rate since FY11.

Financial highlights

• Total investment income was $25.1 million for the quarter, up 17.3% year-over-year but slightly down 0.9% quarter-over-quarter.

• Net investment income for the nine months ended December 31, 2025 was $6.9 million; adjusted NII was $26.3 million.

• Net investment loss of $6.5 million for the quarter, compared to net investment income of $4.3 million in the prior quarter, mainly due to higher capital gains-based incentive fees.

• Aggregate cash distributions to common stockholders for the nine months were $47.6 million ($1.26 per share), including $0.54 supplemental.

• NAV per share grew to $14.95 at 12/31/2025 from $9.00 at 3/31/2011, a 7% annual growth rate.

Outlook and guidance

• Portfolio is in good shape with strong liquidity and a positive outlook for continued earnings and distributions.

• Plans to expand the portfolio through disciplined underwriting and active ownership, maintaining and growing regular and supplemental distributions.

• Pipeline for new buyout investments remains healthy, with ongoing diligence on new and add-on opportunities.

• Management expects continued investment activity in lower middle market companies, with a focus on a balanced mix of debt and equity.

• Monthly distributions of $0.08 per share declared for the first quarter of 2026.