{"success":true,"data":{"pressRelease":{"id":"32394","rtpr_id":"nACSvxRdpa","ticker":"GAIN","exchange":"NASDAQ","all_tickers":["GAIN"],"title":"Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2026","author":"ACCESSWIRE","published_at":"2026-05-12T20:20:01.315Z","article_body":"MCLEAN, VA / ACCESS Newswire (https://www.accessnewswire.com/) / May 12, 2026\n/ Gladstone Investment Corporation (https://pr.report/lhjr) (Nasdaq:GAIN) (the\n\"Company\") today announced earnings for its fourth quarter and fiscal year\nended March 31, 2026. Please read the Company's Annual Report on Form 10-K,\nfiled today with the U.S. Securities and Exchange Commission (the \"SEC\"),\nwhich is available on the SEC's website at www.sec.gov or the investors\nsection of the Company's website at www.gladstoneinvestment.com.\n\nSummary Information: (dollars in thousands, except per share data\n(unaudited)):\n\n March 31, December 31, $ % \n 2026 2025 Change Change \n For the quarter ended: \n Total investment income $ 25,192 $ 25,062 $ 130 0.5 % \n Total expenses, net ((A)) 35,802 31,571 4,231 13.4 % \n Net investment loss ((A)) (10,610 ) (6,509 ) (4,101 ) 63.0 % \n Net realized gain 163 2,180 (2,017 ) (92.5 )% \n Net unrealized appreciation 92,821 70,227 22,594 32.2 % \n Net increase in net assets resulting from operations ((A)) $ 82,374 $ 65,898 $ 16,476 25.0 % \n Net investment loss per weighted-average common share ((A)) $ (0.27 ) $ (0.16 ) $ (0.11 ) 68.8 % \n Adjusted net investment income per weighted-average common share ((B)) $ 0.20 $ 0.21 $ (0.01 ) (4.8 )% \n Net increase in net assets resulting from operations per weighted-average common share ((A)) $ 2.07 $ 1.66 $ 0.41 24.7 % \n Cash distribution per common share from net investment income ((C)) $ 0.24 $ 0.24 $ - - % \n Cash distribution per common share from cumulative net realized gains ((C)) $ - $ - $ - - % \n Weighted-average yield on interest-bearing investments 12.9 % 12.9 % - % - % \n Total dollars invested $ 2,300 $ 37,438 $ (35,138 ) (93.9 )% \n Total dollars repaid and/or collected from sales and recapitalization of investments $ 8,513 $ 19,221 $ (10,708 ) (55.7 )% \n Weighted-average shares of common stock outstanding - basic and diluted 39,821,967 39,678,402 143,565 0.4 % \n Total shares of common stock outstanding 39,821,967 39,821,967 - - % \n \n As of: \n Total investments, at fair value $ 1,309,248 $ 1,222,792 $ 86,456 7.1 % \n Fair value, as a percent of cost 124.4 % 115.5 % 8.9 % 7.7 % \n Number of portfolio companies 29 29 - - % \n Net assets $ 668,225 $ 595,408 $ 72,817 12.2 % \n Net asset value per common share $ 16.78 $ 14.95 $ 1.83 12.2 % \n \n Total distributable earnings $ 181,468 $ 108,702 $ 72,766 66.9 % \n Total distributable earnings per common share $ 4.56 $ 2.73 $ 1.83 67.0 % \n \n Estimated spillover $ 21,283 $ 22,943 $ (1,660 ) (7.2 )% \n Estimated spillover per common share $ 0.53 $ 0.58 $ (0.05 ) (8.6 )% \n \n\n March 31, March 31, $ Change % Change \n 2026 2025 \n For the year ended: \n Total investment income $ 99,077 $ 93,662 $ 5,415 5.8 % \n Total expenses, net ((A)) 102,829 65,567 37,262 56.8 % \n Net investment (loss) income ((A)) (3,752 ) 28,095 (31,847 ) NM \n Net realized (loss) gain (27,595 ) 63,184 (90,779 ) NM \n Net unrealized appreciation (depreciation) 216,100 (25,960 ) 242,060 NM \n Net increase in net assets resulting from operations ((A)) $ 184,753 $ 65,319 $ 119,434 182.8 % \n Net investment (loss) income per weighted-average common share ((A)) $ (0.10 ) $ 0.76 $ (0.86 ) NM \n Adjusted net investment income per weighted-average common share ((B)) $ 0.88 $ 0.97 $ (0.09 ) (9.3 )% \n Net increase in net assets resulting from operations per weighted-average common share ((A)) $ 4.77 $ 1.78 $ 2.99 168.0 % \n Cash distribution per common share from net investment income ((C)) $ 0.99 $ 0.64 $ 0.35 54.7 % \n Cash distribution per common share from cumulative net realized gains ((C)) $ 0.51 $ 1.02 $ (0.51 ) (50.0 )% \n Weighted-average yield on interest-bearing investments 13.3 % 13.9 % (0.6 )% (4.2 )% \n Total dollars invested $ 173,616 $ 221,217 $ (47,601 ) (21.5 )% \n Total dollars repaid and/or collected from sales and recapitalization of investments $ 33,540 $ 199,625 $ (166,085 ) (83.2 )% \n Weighted-average shares of common stock outstanding - basic and diluted 38,712,611 36,735,218 1,977,393 5.4 % \n Total shares of common stock outstanding 39,821,967 36,837,381 2,984,586 8.1 % \n \n As of: \n Total investments, at fair value $ 1,309,248 $ 979,320 $ 329,928 33.7 % \n Fair value, as a percent of cost 124.4 % 104.3 % 20.1 % 19.3 % \n Number of portfolio companies 29 25 4 16.0 % \n Net assets $ 668,225 $ 499,084 $ 169,141 33.9 % \n Net asset value per common share $ 16.78 $ 13.55 $ 3.23 23.8 % \n \n Total distributable earnings $ 181,468 $ 53,535 $ 127,933 239.0 % \n Total distributable earnings per common share $ 4.56 $ 1.45 $ 3.11 214.5 % \n \n Estimated spillover $ 21,283 $ 55,337 $ (34,054 ) (61.5 )% \n Estimated spillover per common share $ 0.53 $ 1.50 $ (0.97 ) (64.7 )% \n NM = Not Meaningful \n\n (A) Inclusive of $18.5 million, or $0.47 per weighted-average common share, and $14.7 million, or $0.37 per weighted-average common share, of capital gains-based incentive fees accrued during the three months ended March 31, 2026 and December 31, 2025, \n respectively; and $38.0 million, or $0.98 per weighted-average common share, and $7.4 million, or $0.21 per weighted-average common share, of capital-gains based incentive fees accrued during the years ended March 31, 2026 and March 31, 2025, respectively. \n These fees were accrued in accordance with United States generally accepted accounting principles (\"GAAP\"), where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion \n under Non-GAAP Financial Measure - Adjusted Net Investment Income below. \n (B) See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income (loss) to Adjusted net investment income, including on a weighted-average per share basis. \n The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. \n (C) Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. \n\nHighlights for the Quarter: During the quarter ended March 31, 2026, the\nfollowing significant events occurred:\n*\nDistributions and Dividends:\n*\nPaid an $0.08 per common share monthly distribution to common stockholders in\neach of January, February, and March 2026.\n*\nFinancing Activity:\n*\nIssued 7.125% Notes due 2031 with an aggregate principal amount of $100.0\nmillion.\n\nFourth Quarter Results: Net investment loss for the quarter ended March 31,\n2026 was $10.6 million, or $0.27 per weighted-average common share, compared\nto net investment loss for the quarter ended December 31, 2025 of $6.5\nmillion, or $0.16 per weighted-average common share. This change was a result\nof an increase in total expenses, net of credits, partially offset by an\nincrease in total investment income, quarter over quarter.\n\nTotal investment income for the quarters ended March 31, 2026 and December 31,\n2025 was $25.2 million and $25.1 million, respectively. The quarter over\nquarter increase was primarily due to a $0.4 million increase in dividend and\nsuccess fee income, the timing of which can be variable, partially offset by a\n$0.2 million decrease in interest income, primarily due to the partial\nrepayment of certain existing debt investments.\n\nTotal expenses, net of credits, for the quarters ended March 31, 2026 and\nDecember 31, 2025 was $35.8 million and $31.6 million, respectively. The\nincrease quarter over quarter was primarily due to a $3.8 million increase in\naccruals for capital gains-based incentive fees in the current quarter, as a\nresult of the net impact of realized and unrealized gains and losses, a $0.4\nmillion increase in base management fee and a $0.1 million decrease in credits\nfrom Adviser. These amounts were partially offset by a $0.4 million decrease\nin other expenses.\n\nNet asset value per common share as of March 31, 2026 was $16.78 compared to\n$14.95 as of December 31, 2025. The quarter over quarter increase was\nprimarily due to $92.5 million, or $2.32 per common share, of net unrealized\nappreciation of investments. The increase was partially offset by $10.6\nmillion, or $0.27 per common share, of net investment loss and $9.6 million,\nor $0.24 per common share, of distributions paid to common stockholders.\n\nHighlights for the Year: During the year ended March 31, 2026, the following\nsignificant events occurred:\n*\nPortfolio Activity:\n*\nIn May 2025, we invested $49.5 million in a new portfolio company, Smart\nChemical Solutions, LLC (\"Smart Chemical\"), in the form of $35.7 million of\nsecured first lien debt and $13.8 million of preferred equity. Smart Chemical,\nheadquartered in Midland, Texas, is a leading provider of production chemicals\nfor onshore oil and gas operators throughout the United States.\n*\nIn May 2025, we invested $12.8 million in a new portfolio company, Sun State\nNursery and Landscaping, LLC (\"Sun State\"), in the form of $9.8 million of\nsecured first lien debt and $3.1 million of preferred equity. Sun State,\nheadquartered in Jacksonville, Florida, is a leading commercial landscaping\ninstallation and maintenance provider in the Jacksonville area.\n*\nIn June 2025, we restructured our investment in PSI Molded Plastics, Inc. As a\nresult of the restructuring, we converted debt with a cost basis of $10.6\nmillion into preferred equity.\n*\nIn July 2025, we invested $67.6 million in a new portfolio company, Global\nGRAB Technologies, Inc. (\"Global GRAB\"), in the form of $46.5 million of\nsecured first lien debt and $21.1 million of preferred equity. Global GRAB,\nheadquartered in Franklin, Tennessee, is a provider of turnkey perimeter\nsecurity and hostile vehicle mitigation systems, serving various government\nand commercial organizations.\n*\nIn September 2025, we entered into a new $20.0 million secured first lien term\nloan with J.R. Hobbs Co. - Atlanta, LLC (\"J.R. Hobbs\"), restructuring our\npreviously outstanding first lien term loans and line of credit with an\naggregate total cost basis of $49.9 million, which resulted in a realized loss\nof $29.9 million.\n*\nIn December 2025, we invested $33.1 million in a new portfolio company, Rowan\nEnergy Inc. (\"Rowan\"), in the form of $25.8 million of secured first lien debt\nand $7.3 million of preferred equity. Rowan, headquartered in Arcadia,\nOklahoma, specializes in advanced frac sand filtration, completion-equipment\ndeployment and field-operations support.\n*\nDistributions and Dividends:\n*\nPaid an $0.08 per common share distribution to common stockholders each month\nfrom April 2025 through March 2026; and\n*\nPaid a $0.54 per common share supplemental distribution to common stockholders\nin June 2025.\n*\nAt-the-market (\"ATM\") program activity:\n*\nSold 2,984,586 shares of our common stock under our common stock ATM program\nat a weighted-average gross price of $14.12 per share and raised approximately\n$41.5 million in net proceeds. These sales were above our then current NAV per\nshare.\n*\nFinancing Activities:\n*\nIssued 6.875% Notes due 2028 with an aggregate principal amount of $60.0\nmillion.\n*\nAmended our credit facility, increasing the size from $270.0 million to $300.0\nmillion.\n*\nVoluntarily redeemed the 8.00% Notes due 2028 with an aggregate principal\namount of $74.8 million.\n*\nIssued 7.125% Notes due 2031 with an aggregate principal amount of $100.0\nmillion.\n\nFiscal Year End Results: Net investment loss for the year ended March 31, 2026\nwas $3.8 million, or $0.10 per weighted-average common share, compared to net\ninvestment income for the year ended March 31, 2025 of $28.1 million, or $0.76\nper weighted-average common share. This change was a result of an increase in\ntotal expenses, net of credits, partially offset by total investment income,\nyear over year.\n\nTotal investment income for the years ended March 31, 2026 and 2025 was $99.1\nmillion and $93.7 million, respectively. The year over year increase was\nprimarily due to a $6.1 million increase in interest income, partially offset\nby a $0.7 million decrease in dividend and success fee income, related to fees\nthat did not reoccur in the current fiscal year, as the timing of such fee\nincome can be variable. The increase in interest income was primarily due to\nan increase in the weighted-average principal balance of our interest-bearing\ninvestments, due to the additional debt investments made during the year,\npartially offset by a decrease in the weighted-average yield on\ninterest-bearing investments, resulting from a decrease in SOFR.\n\nTotal expenses, net of credits, for the years ended March 31, 2026 and 2025\nwas $102.8 million and $65.6 million, respectively. The increase year over\nyear was primarily due to a $30.5 million increase in accruals for capital\ngains-based incentive fees in the current year, as a result of the net impact\nof realized and unrealized gains and losses, an $8.9 million increase in\ninterest expense, related to the issuance of the 7.875% 2030 Notes in December\n2024, the 6.875% 2028 Notes in November 2025 and the 7.125% 2031 Notes in\nFebruary 2026 and increased borrowings on the credit facility, partially\noffset by a decrease in the effective interest rate and the redemption of the\n8.00% 2028 Notes in December 2025, and a $3.7 million increase in base\nmanagement fee.\n\nNet asset value per common share as of March 31, 2026 was $16.78 compared to\n$13.55 as of March 31, 2025. The year over year increase was primarily due to\n$216.1 million, or $5.58 per common share, of net unrealized appreciation of\ninvestments, which included $197.0 million, or $5.09 per common share, of\nunrealized appreciation and $19.1 million, or $0.49 per common share, of\nreversal of unrealized depreciation on our investment in J.R. Hobbs upon its\nrestructure, and $0.07 per common share of net accretive effect of equity\nofferings. These increases were partially offset by $57.2 million, or $1.50\nper common share, of distributions paid to common stockholders, $26.3 million,\nor $0.68 per common share, of net realized losses on investments, $3.8\nmillion, or $0.10 per common share, of net investment loss and $1.3 million,\nor $0.03 of realized loss on other upon the redemption of the 8.00% Notes due\n2028.\n\nThe following table provides relevant information related to our notes payable\nand Credit Facility as of March 31, 2026:\n\n Interest Rate Aggregate Principal Amount \n Notes Payable \n 5.00% 2026 Notes ((A)) 5.00% $ 127,938 \n 4.875% 2028 Notes 4.875% 134,550 \n 7.875% 2030 Notes 7.875% 126,500 \n 6.875% 2028 Notes 6.875% 60,000 \n 7.125% 2031 Notes 7.125% 100,000 \n Total notes payable $ 548,988 \n \n Credit Facility ((B)) \n Commitment amount SOFR + 3.25% $ 300,000 \n Borrowings outstanding at cost $ 23,900 \n Availability ((C)) $ 276,100 \n \n Percentage of borrowings at: ((D)) \n Fixed rate 95.8 % \n Floating rate 4.2 % \n\n (A) On May 1, 2026, we repaid the 5.00% 2026 Notes at maturity. \n (B) The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate (\"SOFR\"). \n (C) Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $276.1 million as of March 31, 2026. \n (D) The percentage uses the Credit Facility borrowings outstanding at cost as of March 31, 2026. The fixed rate borrowings consist of the outstanding notes payable. The floating rate borrowings consist of the Credit Facility borrowings outstanding at cost. \n\nThe following table presents certain selected information regarding the debt\ninvestments of our portfolio companies as of March 31, 2026:\n\n March 31, 2026 ((A)(B)) \n Weighted average interest rate of debt investments 12.9 % \n Weighted average interest rate floor of debt investments 12.1 % \n Current percentage of debt investments at interest rate floor 52.5 % \n \n Weighted average interest rate of debt investments assuming: \n 25 basis points decrease in SOFR 12.8 % \n 50 basis points decrease in SOFR 12.7 % \n 75 basis points decrease in SOFR 12.6 % \n 100 basis points decrease in SOFR 12.5 % \n\n (A) Debt investments presented exclude line of credit commitments and all debt investments on non-accrual status as of March 31, 2026. The weighted average interest rate is based on the cost balance of the debt investments. \n (B) As of March 31, 2026, 100.0% of our debt investments are variable rates with a floor and are indexed to 30-day SOFR. The interest rate is the greater of the floor or the total of SOFR plus a spread. As of March 31, 2026, we did not have any loans with a paid-in-kind interest component. \n\nSubsequent Events: After March 31, 2026, the following significant events\noccurred:\n*\nDistributions and dividends: In April 2026, our Board of Directors declared\nthe following monthly distributions to common stockholders:\n\n Record Date Payment Date Distribution per Common Share \n April 24, 2026 April 30, 2026 $ 0.08 \n May 20, 2026 May 29, 2026 0.08 \n June 23, 2026 June 30, 2026 0.08 \n Total for the Quarter: $ 0.24 \n*\nNotes Payable: On May 1, 2026, we repaid the 5.00% Notes due 2026 with an\naggregate principal amount outstanding of $127.9 million at maturity.\n\nNon-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental\nbasis, the Company discloses Adjusted net investment income, including on a\nweighted-average per share basis, which is a financial measure that is\ncalculated and presented on a basis of methodology other than in accordance\nwith GAAP. Adjusted net investment income represents net investment (loss)\nincome, excluding capital gains-based incentive fees. The Company uses this\nnon-GAAP financial measure internally in analyzing financial results and\nbelieves that this non-GAAP financial measure is useful to investors as an\nadditional tool to evaluate ongoing results and trends for the Company. The\nCompany's investment advisory agreement provides that a capital gains-based\nincentive fee is determined and paid annually with respect to realized capital\ngains (but not unrealized appreciation) to the extent such realized capital\ngains exceed realized capital losses and unrealized depreciation on\ninvestments for such year. However, under GAAP, a capital gains-based\nincentive fee is accrued if realized capital gains and unrealized appreciation\nof investments exceed realized capital losses and unrealized depreciation of\ninvestments. Refer to Note 4 - Related Party Transactions in our Annual Report\non Form 10-K for further discussion. The Company believes that Adjusted net\ninvestment income is a useful indicator of operations exclusive of any capital\ngains-based incentive fees, as net investment (loss) income does not include\nrealized or unrealized investment activity associated with the capital\ngains-based incentive fee.\n\nThe following table provides a reconciliation of net investment (loss) income\n(the most comparable GAAP measure) to Adjusted net investment income for the\nperiods presented (dollars in thousands, except per share amounts; unaudited):\n\n For the quarter ended \n March 31, 2026 December 31, 2025 \n Amount Per Share Amount Amount Per Share Amount \n \n Net investment loss $ (10,610 ) $ (0.27 ) $ (6,509 ) $ (0.16 ) \n Capital gains-based incentive fee 18,533 0.47 14,749 0.37 \n Adjusted net investment income $ 7,923 $ 0.20 $ 8,240 $ 0.21 \n Weighted-average shares of common stock outstanding - basic and diluted 39,821,967 39,678,402 \n \n\n For the year ended \n March 31, 2026 March 31, 2025 \n Amount Per Share Amount Amount Per Share Amount \n \n Net investment (loss) income $ (3,752 ) $ (0.10 ) $ 28,095 $ 0.76 \n Capital gains-based incentive fee 37,970 0.98 7,445 0.21 \n Adjusted net investment income $ 34,218 $ 0.88 $ 35,540 $ 0.97 \n Weighted-average shares of common stock outstanding - basic and diluted 38,712,611 36,735,218 \n\nAdjusted net investment income may not be comparable to similar measures\npresented by other companies, as it is a non-GAAP financial measure that is\nnot based on a comprehensive set of accounting rules or principles and\ntherefore may be defined differently by other companies. In addition, Adjusted\nnet investment income should be considered in addition to, not as a substitute\nfor, or superior to, financial measures determined in accordance with GAAP.\n\nConference Call: The Company will hold its earnings release conference call on\nWednesday, May 13, 2026, at 8:30 a.m. Eastern Time. Please call (866) 373-3416\nto enter the conference call. An operator will monitor the call and set a\nqueue for any questions. A replay of the conference call will be available\nthrough May 20, 2026. To hear the replay, please dial (877) 660-6853 and use\nthe playback conference number 13759089. The replay will be available after\nthe call concludes. The live audio broadcast of the Company's quarterly\nconference call will also be available online at www.gladstoneinvestment.com.\nThe event will be archived and available for replay on the Company's website.\n\nAbout Gladstone Investment Corporation: Gladstone Investment Corporation\n(https://pr.report/lhju) is a publicly traded business development company\nthat seeks to make secured debt and equity investments in lower middle market\nbusinesses in the United States in connection with acquisitions, changes in\ncontrol and recapitalizations. Information on the business activities of all\nthe Gladstone funds can be found at www.gladstonecompanies.com.\n\nTo obtain a paper copy of our Annual Report on Form 10-K, filed today with the\nSEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean,\nVA 22102, ATTN: Investor Relations. The financial information above is not\ncomprehensive and is without notes, so readers should obtain and carefully\nreview the Company's Form 10-K for the year ended March 31, 2026, including\nthe notes to the consolidated financial statements contained therein.\n\nInvestor Relations Inquiries: Please visit ir.gladstoneinvestment.com\n(https://pr.report/lhjw) or call (703) 287-5893.\n\nForward-looking Statements:\n\nThe statements in this press release regarding potential future distributions,\nearnings and operations of the Company are \"forward-looking statements.\" These\nforward-looking statements inherently involve certain risks and uncertainties\nin predicting future results and conditions. Although these statements are\nbased on the Company's current plans that are believed to be reasonable as of\nthe date of this press release, a number of factors could cause actual results\nand conditions to differ materially from these forward-looking statements,\nincluding those factors described from time to time in the Company's filings\nwith the Securities and Exchange Commission. The Company undertakes no\nobligation to publicly release the result of any revisions to these\nforward-looking statements that may be made to reflect any future events or\notherwise, except as required by law.\n\nSOURCE: Gladstone Investment Corporation\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/real-estate/gladstone-investment-corporation-reports-financial-results-for-its-fourth-quarter-and-f-1166173)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nACSvxRdpa","title":"Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2026","author":"ACCESSWIRE","ticker":"GAIN","created":"2026-05-12T20:20:01.315Z","tickers":["GAIN"],"exchange":"NASDAQ","article_body":"MCLEAN, VA / ACCESS Newswire (https://www.accessnewswire.com/) / May 12, 2026\n/ Gladstone Investment Corporation (https://pr.report/lhjr) (Nasdaq:GAIN) (the\n\"Company\") today announced earnings for its fourth quarter and fiscal year\nended March 31, 2026. Please read the Company's Annual Report on Form 10-K,\nfiled today with the U.S. Securities and Exchange Commission (the \"SEC\"),\nwhich is available on the SEC's website at www.sec.gov or the investors\nsection of the Company's website at www.gladstoneinvestment.com.\n\nSummary Information: (dollars in thousands, except per share data\n(unaudited)):\n\n March 31, December 31, $ % \n 2026 2025 Change Change \n For the quarter ended: \n Total investment income $ 25,192 $ 25,062 $ 130 0.5 % \n Total expenses, net ((A)) 35,802 31,571 4,231 13.4 % \n Net investment loss ((A)) (10,610 ) (6,509 ) (4,101 ) 63.0 % \n Net realized gain 163 2,180 (2,017 ) (92.5 )% \n Net unrealized appreciation 92,821 70,227 22,594 32.2 % \n Net increase in net assets resulting from operations ((A)) $ 82,374 $ 65,898 $ 16,476 25.0 % \n Net investment loss per weighted-average common share ((A)) $ (0.27 ) $ (0.16 ) $ (0.11 ) 68.8 % \n Adjusted net investment income per weighted-average common share ((B)) $ 0.20 $ 0.21 $ (0.01 ) (4.8 )% \n Net increase in net assets resulting from operations per weighted-average common share ((A)) $ 2.07 $ 1.66 $ 0.41 24.7 % \n Cash distribution per common share from net investment income ((C)) $ 0.24 $ 0.24 $ - - % \n Cash distribution per common share from cumulative net realized gains ((C)) $ - $ - $ - - % \n Weighted-average yield on interest-bearing investments 12.9 % 12.9 % - % - % \n Total dollars invested $ 2,300 $ 37,438 $ (35,138 ) (93.9 )% \n Total dollars repaid and/or collected from sales and recapitalization of investments $ 8,513 $ 19,221 $ (10,708 ) (55.7 )% \n Weighted-average shares of common stock outstanding - basic and diluted 39,821,967 39,678,402 143,565 0.4 % \n Total shares of common stock outstanding 39,821,967 39,821,967 - - % \n \n As of: \n Total investments, at fair value $ 1,309,248 $ 1,222,792 $ 86,456 7.1 % \n Fair value, as a percent of cost 124.4 % 115.5 % 8.9 % 7.7 % \n Number of portfolio companies 29 29 - - % \n Net assets $ 668,225 $ 595,408 $ 72,817 12.2 % \n Net asset value per common share $ 16.78 $ 14.95 $ 1.83 12.2 % \n \n Total distributable earnings $ 181,468 $ 108,702 $ 72,766 66.9 % \n Total distributable earnings per common share $ 4.56 $ 2.73 $ 1.83 67.0 % \n \n Estimated spillover $ 21,283 $ 22,943 $ (1,660 ) (7.2 )% \n Estimated spillover per common share $ 0.53 $ 0.58 $ (0.05 ) (8.6 )% \n \n\n March 31, March 31, $ Change % Change \n 2026 2025 \n For the year ended: \n Total investment income $ 99,077 $ 93,662 $ 5,415 5.8 % \n Total expenses, net ((A)) 102,829 65,567 37,262 56.8 % \n Net investment (loss) income ((A)) (3,752 ) 28,095 (31,847 ) NM \n Net realized (loss) gain (27,595 ) 63,184 (90,779 ) NM \n Net unrealized appreciation (depreciation) 216,100 (25,960 ) 242,060 NM \n Net increase in net assets resulting from operations ((A)) $ 184,753 $ 65,319 $ 119,434 182.8 % \n Net investment (loss) income per weighted-average common share ((A)) $ (0.10 ) $ 0.76 $ (0.86 ) NM \n Adjusted net investment income per weighted-average common share ((B)) $ 0.88 $ 0.97 $ (0.09 ) (9.3 )% \n Net increase in net assets resulting from operations per weighted-average common share ((A)) $ 4.77 $ 1.78 $ 2.99 168.0 % \n Cash distribution per common share from net investment income ((C)) $ 0.99 $ 0.64 $ 0.35 54.7 % \n Cash distribution per common share from cumulative net realized gains ((C)) $ 0.51 $ 1.02 $ (0.51 ) (50.0 )% \n Weighted-average yield on interest-bearing investments 13.3 % 13.9 % (0.6 )% (4.2 )% \n Total dollars invested $ 173,616 $ 221,217 $ (47,601 ) (21.5 )% \n Total dollars repaid and/or collected from sales and recapitalization of investments $ 33,540 $ 199,625 $ (166,085 ) (83.2 )% \n Weighted-average shares of common stock outstanding - basic and diluted 38,712,611 36,735,218 1,977,393 5.4 % \n Total shares of common stock outstanding 39,821,967 36,837,381 2,984,586 8.1 % \n \n As of: \n Total investments, at fair value $ 1,309,248 $ 979,320 $ 329,928 33.7 % \n Fair value, as a percent of cost 124.4 % 104.3 % 20.1 % 19.3 % \n Number of portfolio companies 29 25 4 16.0 % \n Net assets $ 668,225 $ 499,084 $ 169,141 33.9 % \n Net asset value per common share $ 16.78 $ 13.55 $ 3.23 23.8 % \n \n Total distributable earnings $ 181,468 $ 53,535 $ 127,933 239.0 % \n Total distributable earnings per common share $ 4.56 $ 1.45 $ 3.11 214.5 % \n \n Estimated spillover $ 21,283 $ 55,337 $ (34,054 ) (61.5 )% \n Estimated spillover per common share $ 0.53 $ 1.50 $ (0.97 ) (64.7 )% \n NM = Not Meaningful \n\n (A) Inclusive of $18.5 million, or $0.47 per weighted-average common share, and $14.7 million, or $0.37 per weighted-average common share, of capital gains-based incentive fees accrued during the three months ended March 31, 2026 and December 31, 2025, \n respectively; and $38.0 million, or $0.98 per weighted-average common share, and $7.4 million, or $0.21 per weighted-average common share, of capital-gains based incentive fees accrued during the years ended March 31, 2026 and March 31, 2025, respectively. \n These fees were accrued in accordance with United States generally accepted accounting principles (\"GAAP\"), where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion \n under Non-GAAP Financial Measure - Adjusted Net Investment Income below. \n (B) See Non-GAAP Financial Measure - Adjusted Net Investment Income, below, for a description of this non-GAAP measure and a reconciliation from Net investment income (loss) to Adjusted net investment income, including on a weighted-average per share basis. \n The Company uses this non-GAAP financial measure internally in analyzing financial results and believes it is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. \n (C) Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. \n\nHighlights for the Quarter: During the quarter ended March 31, 2026, the\nfollowing significant events occurred:\n*\nDistributions and Dividends:\n*\nPaid an $0.08 per common share monthly distribution to common stockholders in\neach of January, February, and March 2026.\n*\nFinancing Activity:\n*\nIssued 7.125% Notes due 2031 with an aggregate principal amount of $100.0\nmillion.\n\nFourth Quarter Results: Net investment loss for the quarter ended March 31,\n2026 was $10.6 million, or $0.27 per weighted-average common share, compared\nto net investment loss for the quarter ended December 31, 2025 of $6.5\nmillion, or $0.16 per weighted-average common share. This change was a result\nof an increase in total expenses, net of credits, partially offset by an\nincrease in total investment income, quarter over quarter.\n\nTotal investment income for the quarters ended March 31, 2026 and December 31,\n2025 was $25.2 million and $25.1 million, respectively. The quarter over\nquarter increase was primarily due to a $0.4 million increase in dividend and\nsuccess fee income, the timing of which can be variable, partially offset by a\n$0.2 million decrease in interest income, primarily due to the partial\nrepayment of certain existing debt investments.\n\nTotal expenses, net of credits, for the quarters ended March 31, 2026 and\nDecember 31, 2025 was $35.8 million and $31.6 million, respectively. The\nincrease quarter over quarter was primarily due to a $3.8 million increase in\naccruals for capital gains-based incentive fees in the current quarter, as a\nresult of the net impact of realized and unrealized gains and losses, a $0.4\nmillion increase in base management fee and a $0.1 million decrease in credits\nfrom Adviser. These amounts were partially offset by a $0.4 million decrease\nin other expenses.\n\nNet asset value per common share as of March 31, 2026 was $16.78 compared to\n$14.95 as of December 31, 2025. The quarter over quarter increase was\nprimarily due to $92.5 million, or $2.32 per common share, of net unrealized\nappreciation of investments. The increase was partially offset by $10.6\nmillion, or $0.27 per common share, of net investment loss and $9.6 million,\nor $0.24 per common share, of distributions paid to common stockholders.\n\nHighlights for the Year: During the year ended March 31, 2026, the following\nsignificant events occurred:\n*\nPortfolio Activity:\n*\nIn May 2025, we invested $49.5 million in a new portfolio company, Smart\nChemical Solutions, LLC (\"Smart Chemical\"), in the form of $35.7 million of\nsecured first lien debt and $13.8 million of preferred equity. Smart Chemical,\nheadquartered in Midland, Texas, is a leading provider of production chemicals\nfor onshore oil and gas operators throughout the United States.\n*\nIn May 2025, we invested $12.8 million in a new portfolio company, Sun State\nNursery and Landscaping, LLC (\"Sun State\"), in the form of $9.8 million of\nsecured first lien debt and $3.1 million of preferred equity. Sun State,\nheadquartered in Jacksonville, Florida, is a leading commercial landscaping\ninstallation and maintenance provider in the Jacksonville area.\n*\nIn June 2025, we restructured our investment in PSI Molded Plastics, Inc. As a\nresult of the restructuring, we converted debt with a cost basis of $10.6\nmillion into preferred equity.\n*\nIn July 2025, we invested $67.6 million in a new portfolio company, Global\nGRAB Technologies, Inc. (\"Global GRAB\"), in the form of $46.5 million of\nsecured first lien debt and $21.1 million of preferred equity. Global GRAB,\nheadquartered in Franklin, Tennessee, is a provider of turnkey perimeter\nsecurity and hostile vehicle mitigation systems, serving various government\nand commercial organizations.\n*\nIn September 2025, we entered into a new $20.0 million secured first lien term\nloan with J.R. Hobbs Co. - Atlanta, LLC (\"J.R. Hobbs\"), restructuring our\npreviously outstanding first lien term loans and line of credit with an\naggregate total cost basis of $49.9 million, which resulted in a realized loss\nof $29.9 million.\n*\nIn December 2025, we invested $33.1 million in a new portfolio company, Rowan\nEnergy Inc. (\"Rowan\"), in the form of $25.8 million of secured first lien debt\nand $7.3 million of preferred equity. Rowan, headquartered in Arcadia,\nOklahoma, specializes in advanced frac sand filtration, completion-equipment\ndeployment and field-operations support.\n*\nDistributions and Dividends:\n*\nPaid an $0.08 per common share distribution to common stockholders each month\nfrom April 2025 through March 2026; and\n*\nPaid a $0.54 per common share supplemental distribution to common stockholders\nin June 2025.\n*\nAt-the-market (\"ATM\") program activity:\n*\nSold 2,984,586 shares of our common stock under our common stock ATM program\nat a weighted-average gross price of $14.12 per share and raised approximately\n$41.5 million in net proceeds. These sales were above our then current NAV per\nshare.\n*\nFinancing Activities:\n*\nIssued 6.875% Notes due 2028 with an aggregate principal amount of $60.0\nmillion.\n*\nAmended our credit facility, increasing the size from $270.0 million to $300.0\nmillion.\n*\nVoluntarily redeemed the 8.00% Notes due 2028 with an aggregate principal\namount of $74.8 million.\n*\nIssued 7.125% Notes due 2031 with an aggregate principal amount of $100.0\nmillion.\n\nFiscal Year End Results: Net investment loss for the year ended March 31, 2026\nwas $3.8 million, or $0.10 per weighted-average common share, compared to net\ninvestment income for the year ended March 31, 2025 of $28.1 million, or $0.76\nper weighted-average common share. This change was a result of an increase in\ntotal expenses, net of credits, partially offset by total investment income,\nyear over year.\n\nTotal investment income for the years ended March 31, 2026 and 2025 was $99.1\nmillion and $93.7 million, respectively. The year over year increase was\nprimarily due to a $6.1 million increase in interest income, partially offset\nby a $0.7 million decrease in dividend and success fee income, related to fees\nthat did not reoccur in the current fiscal year, as the timing of such fee\nincome can be variable. The increase in interest income was primarily due to\nan increase in the weighted-average principal balance of our interest-bearing\ninvestments, due to the additional debt investments made during the year,\npartially offset by a decrease in the weighted-average yield on\ninterest-bearing investments, resulting from a decrease in SOFR.\n\nTotal expenses, net of credits, for the years ended March 31, 2026 and 2025\nwas $102.8 million and $65.6 million, respectively. The increase year over\nyear was primarily due to a $30.5 million increase in accruals for capital\ngains-based incentive fees in the current year, as a result of the net impact\nof realized and unrealized gains and losses, an $8.9 million increase in\ninterest expense, related to the issuance of the 7.875% 2030 Notes in December\n2024, the 6.875% 2028 Notes in November 2025 and the 7.125% 2031 Notes in\nFebruary 2026 and increased borrowings on the credit facility, partially\noffset by a decrease in the effective interest rate and the redemption of the\n8.00% 2028 Notes in December 2025, and a $3.7 million increase in base\nmanagement fee.\n\nNet asset value per common share as of March 31, 2026 was $16.78 compared to\n$13.55 as of March 31, 2025. The year over year increase was primarily due to\n$216.1 million, or $5.58 per common share, of net unrealized appreciation of\ninvestments, which included $197.0 million, or $5.09 per common share, of\nunrealized appreciation and $19.1 million, or $0.49 per common share, of\nreversal of unrealized depreciation on our investment in J.R. Hobbs upon its\nrestructure, and $0.07 per common share of net accretive effect of equity\nofferings. These increases were partially offset by $57.2 million, or $1.50\nper common share, of distributions paid to common stockholders, $26.3 million,\nor $0.68 per common share, of net realized losses on investments, $3.8\nmillion, or $0.10 per common share, of net investment loss and $1.3 million,\nor $0.03 of realized loss on other upon the redemption of the 8.00% Notes due\n2028.\n\nThe following table provides relevant information related to our notes payable\nand Credit Facility as of March 31, 2026:\n\n Interest Rate Aggregate Principal Amount \n Notes Payable \n 5.00% 2026 Notes ((A)) 5.00% $ 127,938 \n 4.875% 2028 Notes 4.875% 134,550 \n 7.875% 2030 Notes 7.875% 126,500 \n 6.875% 2028 Notes 6.875% 60,000 \n 7.125% 2031 Notes 7.125% 100,000 \n Total notes payable $ 548,988 \n \n Credit Facility ((B)) \n Commitment amount SOFR + 3.25% $ 300,000 \n Borrowings outstanding at cost $ 23,900 \n Availability ((C)) $ 276,100 \n \n Percentage of borrowings at: ((D)) \n Fixed rate 95.8 % \n Floating rate 4.2 % \n\n (A) On May 1, 2026, we repaid the 5.00% 2026 Notes at maturity. \n (B) The Credit Facility bears interest at 30-day Term Secured Overnight Financing Rate (\"SOFR\"). \n (C) Availability is subject to various constraints, characteristics and applicable advance rates based on collateral quality under our Credit Facility, which equated to an adjusted availability of $276.1 million as of March 31, 2026. \n (D) The percentage uses the Credit Facility borrowings outstanding at cost as of March 31, 2026. The fixed rate borrowings consist of the outstanding notes payable. The floating rate borrowings consist of the Credit Facility borrowings outstanding at cost. \n\nThe following table presents certain selected information regarding the debt\ninvestments of our portfolio companies as of March 31, 2026:\n\n March 31, 2026 ((A)(B)) \n Weighted average interest rate of debt investments 12.9 % \n Weighted average interest rate floor of debt investments 12.1 % \n Current percentage of debt investments at interest rate floor 52.5 % \n \n Weighted average interest rate of debt investments assuming: \n 25 basis points decrease in SOFR 12.8 % \n 50 basis points decrease in SOFR 12.7 % \n 75 basis points decrease in SOFR 12.6 % \n 100 basis points decrease in SOFR 12.5 % \n\n (A) Debt investments presented exclude line of credit commitments and all debt investments on non-accrual status as of March 31, 2026. The weighted average interest rate is based on the cost balance of the debt investments. \n (B) As of March 31, 2026, 100.0% of our debt investments are variable rates with a floor and are indexed to 30-day SOFR. The interest rate is the greater of the floor or the total of SOFR plus a spread. As of March 31, 2026, we did not have any loans with a paid-in-kind interest component. \n\nSubsequent Events: After March 31, 2026, the following significant events\noccurred:\n*\nDistributions and dividends: In April 2026, our Board of Directors declared\nthe following monthly distributions to common stockholders:\n\n Record Date Payment Date Distribution per Common Share \n April 24, 2026 April 30, 2026 $ 0.08 \n May 20, 2026 May 29, 2026 0.08 \n June 23, 2026 June 30, 2026 0.08 \n Total for the Quarter: $ 0.24 \n*\nNotes Payable: On May 1, 2026, we repaid the 5.00% Notes due 2026 with an\naggregate principal amount outstanding of $127.9 million at maturity.\n\nNon-GAAP Financial Measure - Adjusted Net Investment Income: On a supplemental\nbasis, the Company discloses Adjusted net investment income, including on a\nweighted-average per share basis, which is a financial measure that is\ncalculated and presented on a basis of methodology other than in accordance\nwith GAAP. Adjusted net investment income represents net investment (loss)\nincome, excluding capital gains-based incentive fees. The Company uses this\nnon-GAAP financial measure internally in analyzing financial results and\nbelieves that this non-GAAP financial measure is useful to investors as an\nadditional tool to evaluate ongoing results and trends for the Company. The\nCompany's investment advisory agreement provides that a capital gains-based\nincentive fee is determined and paid annually with respect to realized capital\ngains (but not unrealized appreciation) to the extent such realized capital\ngains exceed realized capital losses and unrealized depreciation on\ninvestments for such year. However, under GAAP, a capital gains-based\nincentive fee is accrued if realized capital gains and unrealized appreciation\nof investments exceed realized capital losses and unrealized depreciation of\ninvestments. Refer to Note 4 - Related Party Transactions in our Annual Report\non Form 10-K for further discussion. The Company believes that Adjusted net\ninvestment income is a useful indicator of operations exclusive of any capital\ngains-based incentive fees, as net investment (loss) income does not include\nrealized or unrealized investment activity associated with the capital\ngains-based incentive fee.\n\nThe following table provides a reconciliation of net investment (loss) income\n(the most comparable GAAP measure) to Adjusted net investment income for the\nperiods presented (dollars in thousands, except per share amounts; unaudited):\n\n For the quarter ended \n March 31, 2026 December 31, 2025 \n Amount Per Share Amount Amount Per Share Amount \n \n Net investment loss $ (10,610 ) $ (0.27 ) $ (6,509 ) $ (0.16 ) \n Capital gains-based incentive fee 18,533 0.47 14,749 0.37 \n Adjusted net investment income $ 7,923 $ 0.20 $ 8,240 $ 0.21 \n Weighted-average shares of common stock outstanding - basic and diluted 39,821,967 39,678,402 \n \n\n For the year ended \n March 31, 2026 March 31, 2025 \n Amount Per Share Amount Amount Per Share Amount \n \n Net investment (loss) income $ (3,752 ) $ (0.10 ) $ 28,095 $ 0.76 \n Capital gains-based incentive fee 37,970 0.98 7,445 0.21 \n Adjusted net investment income $ 34,218 $ 0.88 $ 35,540 $ 0.97 \n Weighted-average shares of common stock outstanding - basic and diluted 38,712,611 36,735,218 \n\nAdjusted net investment income may not be comparable to similar measures\npresented by other companies, as it is a non-GAAP financial measure that is\nnot based on a comprehensive set of accounting rules or principles and\ntherefore may be defined differently by other companies. In addition, Adjusted\nnet investment income should be considered in addition to, not as a substitute\nfor, or superior to, financial measures determined in accordance with GAAP.\n\nConference Call: The Company will hold its earnings release conference call on\nWednesday, May 13, 2026, at 8:30 a.m. Eastern Time. Please call (866) 373-3416\nto enter the conference call. An operator will monitor the call and set a\nqueue for any questions. A replay of the conference call will be available\nthrough May 20, 2026. To hear the replay, please dial (877) 660-6853 and use\nthe playback conference number 13759089. The replay will be available after\nthe call concludes. The live audio broadcast of the Company's quarterly\nconference call will also be available online at www.gladstoneinvestment.com.\nThe event will be archived and available for replay on the Company's website.\n\nAbout Gladstone Investment Corporation: Gladstone Investment Corporation\n(https://pr.report/lhju) is a publicly traded business development company\nthat seeks to make secured debt and equity investments in lower middle market\nbusinesses in the United States in connection with acquisitions, changes in\ncontrol and recapitalizations. Information on the business activities of all\nthe Gladstone funds can be found at www.gladstonecompanies.com.\n\nTo obtain a paper copy of our Annual Report on Form 10-K, filed today with the\nSEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean,\nVA 22102, ATTN: Investor Relations. The financial information above is not\ncomprehensive and is without notes, so readers should obtain and carefully\nreview the Company's Form 10-K for the year ended March 31, 2026, including\nthe notes to the consolidated financial statements contained therein.\n\nInvestor Relations Inquiries: Please visit ir.gladstoneinvestment.com\n(https://pr.report/lhjw) or call (703) 287-5893.\n\nForward-looking Statements:\n\nThe statements in this press release regarding potential future distributions,\nearnings and operations of the Company are \"forward-looking statements.\" These\nforward-looking statements inherently involve certain risks and uncertainties\nin predicting future results and conditions. Although these statements are\nbased on the Company's current plans that are believed to be reasonable as of\nthe date of this press release, a number of factors could cause actual results\nand conditions to differ materially from these forward-looking statements,\nincluding those factors described from time to time in the Company's filings\nwith the Securities and Exchange Commission. The Company undertakes no\nobligation to publicly release the result of any revisions to these\nforward-looking statements that may be made to reflect any future events or\notherwise, except as required by law.\n\nSOURCE: Gladstone Investment Corporation\nView the original press release\n(https://www.accessnewswire.com/newsroom/en/real-estate/gladstone-investment-corporation-reports-financial-results-for-its-fourth-quarter-and-f-1166173)\non ACCESS Newswire\n\n\nCopyright 2026 ACCESS Newswire. All Rights Reserved."},"type":"article","timestamp":"2026-05-12T20:20:01.356550883Z","server_sent_at_ms":1778617201356},"received_at":"2026-05-12T20:20:01.527Z","source_url":"https://www.accessnewswire.com/newsroom/en/real-estate/gladstone-investment-corporation-reports-financial-results-for-its-fourth-quarter-and-f-1166173"},"analysis":null,"durationMs":null,"modelName":null}}