Financial Data and Key Metrics Changes - The company reported an adjusted net investment income (NII) of $0.21 per share, with total assets increasing to approximately $1.2 billion, up about $92 million from the previous quarter [6][15] - Total investment income for the quarter was $25.1 million, slightly down from $25.3 million in the prior quarter, primarily due to a decrease in dividend and success fee income [15][18] - The net investment loss for the quarter was $6.5 million compared to net investment income of $4.3 million in the prior quarter [18] Business Line Data and Key Metrics Changes - The company has invested approximately $163 million in four new portfolio companies for fiscal 2026, compared to $221 million for all of fiscal year 2025 [7] - The portfolio's weighted average yield decreased from 13.2% to 12.9%, in line with a decrease in SOFR [15][16] - The net asset value (NAV) increased to $14.95 per share from $13.53 per share at the end of the prior quarter, driven by net unrealized appreciation and net realized gains [20] Market Data and Key Metrics Changes - The company noted good liquidity in the M&A market, creating a competitive environment for new acquisitions [9][47] - The company has expanded its credit facility to include City National Bank, increasing the total commitment level to $300 million [22] Company Strategy and Development Direction - The company continues to focus on a buyout strategy, acquiring operating companies at attractive valuations and generally being the majority economic owner [7] - The management emphasized the importance of maintaining a strong and liquid balance sheet to support portfolio growth [13][21] - The company aims to provide both debt and equity in acquisitions, differentiating itself from traditional credit BDCs [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the portfolio's performance despite challenges such as supply chain disruptions and tariff costs [12] - The outlook for the remaining fiscal year is positive, with expectations of continued good earnings and distributions [13][26] Other Important Information - The company maintained its monthly distribution to shareholders at $0.08 per share, with a total distributable income of $108.7 million as of December 31 [24] - The company has three portfolio companies on non-accrual status, representing 3.8% of the total portfolio at cost [20] Q&A Session Summary Question: Can you discuss the operational or valuation changes that drove appreciation for Schylling, Old World, and SFE? - Management indicated that the appreciation was primarily due to EBITDA increases rather than multiple changes [28][29] Question: What differentiates Schylling and Old World in the current consumer sector? - Management attributed their performance to unique products and strong management, allowing them to maintain demand despite economic headwinds [32][33] Question: How did you underwrite the Rowan Energy investment? - Management highlighted the importance of having a quality and experienced team to evaluate energy-related investments [34][36] Question: Are you seeing any pressure on terms or structure in underwriting conditions? - Management stated that they have not experienced significant pressure and continue to adhere to their investment model [57][58] Question: What is the current outlook for asset quality and non-accrual investments? - Management expressed a positive outlook for the three non-accrual companies, noting improvements in their performance [66][68]

Financial Data and Key Metrics Changes - The company reported an adjusted net investment income (NII) of $0.21 per share, with total assets increasing to approximately $1.2 billion, up about $92 million from the previous quarter [6][20] - Total investment income for the third quarter was $25.1 million, slightly down from $25.3 million in the prior quarter, primarily due to a decrease in dividend and success fee income [15][18] - The net investment loss for the quarter was $6.5 million compared to a net investment income of $4.3 million in the prior quarter [18] Business Line Data and Key Metrics Changes - The company has invested approximately $163 million in four new portfolio companies for fiscal 2026, compared to $221 million for all of fiscal year 2025 [7] - The portfolio currently consists of 29 operating companies, with a healthy pipeline for new acquisitions [6][7] - The weighted average yield of the portfolio decreased from 13.2% to 12.9%, in line with a decrease in SOFR [15][16] Market Data and Key Metrics Changes - The company noted good liquidity in the M&A market, creating a competitive environment for new acquisitions [8][9] - The company has been actively looking for add-on acquisitions to existing portfolio companies, which could lead to new buyout investments [10] Company Strategy and Development Direction - The company differentiates itself from traditional credit BDCs by providing both debt and equity in acquisitions, which supports its monthly distributions to shareholders [8][9] - The management emphasized the importance of maintaining a strong and liquid balance sheet to support portfolio growth [21][22] - The company is focused on managing supply chain disruptions and cost efficiencies to navigate the current economic environment [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the portfolio's performance despite challenges such as supply chain disruptions and tariff costs [12][13] - The outlook for the current portfolio is positive, with expectations of continued good earnings and distributions over the next year [13][24] - The company is actively working with three portfolio companies currently on non-accrual status, with a more positive outlook for their recovery [70][71] Other Important Information - The company maintained its monthly distribution to shareholders at $0.08 per share, with a total distributable income of $108.7 million as of the end of the quarter [24] - The company redeemed $74.8 million of its 8% notes and issued $60 million in 6.875% notes, reducing its interest burden [22][23] Q&A Session Summary Question: Can you discuss the operational or valuation changes that drove the appreciation for Schylling, Old World, and SFE-SFEG? - Management indicated that the appreciation was primarily due to EBITDA increases rather than multiple changes [30] Question: What differentiates Schylling and Old World in the current consumer sector? - Management attributed their success to unique products and strong management, allowing them to maintain demand despite economic headwinds [34] Question: How are current underwriting conditions affecting deal terms? - Management stated that they are maintaining their investment model and discipline despite competitive pressures [60] Question: What is the outlook for asset quality and non-accrual investments? - Management expressed a positive outlook for the three companies on non-accrual status, indicating improvements and potential exits [70][71]

Financial Data and Key Metrics Changes - The company reported an adjusted net investment income (NII) of $0.21 per share, with total assets increasing to approximately $1.2 billion, up about $92 million from the previous quarter [6][15] - Total investment income for the quarter was $25.1 million, slightly down from $25.3 million in the prior quarter, primarily due to a decrease in dividend and success fee income [15][18] - The net investment loss for the quarter was $6.5 million compared to a net investment income of $4.3 million in the prior quarter [19] Business Line Data and Key Metrics Changes - The company has invested approximately $163 million in four new portfolio companies for fiscal 2026, compared to $221 million for all of fiscal year 2025 [7] - The weighted average yield of the portfolio's interest-bearing investments decreased from 13.2% to 12.9% [15][16] - The net asset value (NAV) increased to $14.95 per share from $13.53 per share at the end of the prior quarter, driven by net unrealized appreciation and net realized gains [21] Market Data and Key Metrics Changes - The company noted good liquidity in the M&A market, creating a competitive environment for new acquisitions [9][50] - The interest rate environment is characterized by a decline in SOFR, which has led to a decrease in yield, but the company has protections in place through interest rate floors [12][17] Company Strategy and Development Direction - The company aims to grow its portfolio through the acquisition of operating companies at attractive valuations, utilizing both equity and debt [7][10] - The strategy includes a focus on maintaining a strong and liquid balance sheet while navigating challenges in the economic landscape [14][22] - The company is actively looking for add-on acquisitions to existing portfolio companies to enhance overall investment value [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the portfolio's performance despite challenges such as supply chain disruptions and tariff costs [13] - The outlook for the current portfolio is positive, with expectations of continued good earnings and distributions over the next year [14] - Management is working closely with companies on non-accrual status to support their return to accrual status or pursue exits where appropriate [21][71] Other Important Information - The company maintained its monthly distribution to shareholders at $0.08 per share, with a total distributable income of $108.7 million, or $2.73 per share [25] - The company redeemed $74.8 million of its 8% notes and issued $60 million in 6.875% notes, reducing its interest burden [22] Q&A Session Summary Question: What drove the appreciation in NAV for specific investments? - Management indicated that the appreciation was primarily due to EBITDA increases rather than multiple changes for the mentioned companies [30] Question: How are consumer-oriented companies performing amid economic headwinds? - Management noted that the unique products and strong management of these companies have allowed them to maintain demand and perform well [34][35] Question: What is the current state of underwriting conditions? - Management stated that they have not seen significant pressure on terms or structure, maintaining their investment strategy [60] Question: How does the company view the current M&A market? - Management believes there is good liquidity in the M&A market, but competition remains strong due to varying access to leverage among competitors [49][50] Question: What is the outlook for asset quality regarding non-accrual investments? - Management expressed a positive outlook for the three companies on non-accrual status, indicating improvements and potential exits [71][72]

Core Viewpoint - Gladstone Investment Corporation (GAIN) reported disappointing earnings and revenue figures for the third fiscal quarter, indicating ongoing challenges despite some growth in year-over-year revenue and significant net asset increases from operations [2][3][4][5]. Financial Performance - GAIN reported an earnings per share (EPS) of -$0.16, missing the estimated EPS of $0.23, marking a negative surprise of 169% [2][6]. - Revenue for the quarter was approximately $25.1 million, slightly below the estimated $25.8 million, but showing growth from $21.37 million reported a year ago [3][6]. - Total investment income decreased by 0.9% to $25.1 million from $25.3 million in the previous quarter, while total expenses increased significantly by 50.3% to $31.6 million from $21 million [4]. Investment Gains - Despite the financial challenges, GAIN experienced a net realized gain of $2.2 million and a net unrealized appreciation of $70.2 million, which is a 29.2% increase from $54.4 million [5][6]. - The net increase in net assets resulting from operations surged by 129.5% to $65.9 million [5][6].

分组1 - Gladstone Investment (GAIN) reported quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.23 per share a year ago, representing an earnings surprise of -10.64% [1] - The company posted revenues of $25.06 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 1.91%, compared to year-ago revenues of $21.37 million [2] - Gladstone Investment shares have lost about 0.9% since the beginning of the year, while the S&P 500 has gained 1.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $25.34 million, and for the current fiscal year, it is $0.87 on revenues of $99.71 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the top 39% of over 250 Zacks industries, indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Total investment income for Q3 2025 was $25.1 million, a decrease of 0.9% from $25.3 million in Q2 2025[2] - Net investment loss for Q3 2025 was $6.5 million, or $0.16 per weighted-average common share, compared to a net investment income of $4.3 million, or $0.11 per share in Q2 2025[3] - Total expenses for Q3 2025 increased by 50.3% to $31.6 million from $21.0 million in Q2 2025, primarily due to a $9.9 million rise in accruals for capital gains-based incentive fees[5] - Net unrealized appreciation of investments was $70.2 million, contributing to a net increase in net assets resulting from operations of $65.9 million, a 129.5% increase from $28.7 million in Q2 2025[2] - Net asset value per common share rose to $14.95, up 10.5% from $13.53 in Q2 2025, driven by net unrealized appreciation and realized gains[7] - Total distributable earnings for Q3 2025 were $108.7 million, a significant increase of 108.0% from $52.2 million in Q2 2025[2] - Estimated spillover per common share decreased to $0.58 from $0.64 in Q2 2025, reflecting a 9.4% decline[2] Investment Activities - The company invested $33.1 million in a new portfolio company, Rowan Energy Inc., during the quarter[6] - The company sold 230,930 shares under its ATM program at a weighted-average gross price of $14.03 per share, raising approximately $3.2 million in net proceeds[6] - The company issued 6.875% Notes due 2028 with a total principal amount of $60.0 million and amended its credit facility to increase the size from $270.0 million to $300.0 million[6] Corporate Communications - The Company will hold its earnings release conference call on February 4, 2026, at 8:30 a.m. Eastern Time[11] - In January 2026, the Board of Directors declared monthly distributions to common stockholders[12] - A paper copy of the Quarterly Report on Form 10-Q is available for review, detailing financial information for the quarter ended December 31, 2025[14] - The Company provides investor relations inquiries through its dedicated website and phone number[15] Business Focus - Gladstone Investment Corporation focuses on secured debt and equity investments in lower middle market businesses in the U.S.[13] Forward-Looking Statements - Forward-looking statements regarding potential future distributions and earnings involve risks and uncertainties[16]

Core Viewpoint - Gladstone Investment Corporation announced its earnings for the third fiscal quarter ended December 31, 2025, highlighting its financial performance and filing of the Quarterly Report on Form 10-Q with the SEC [1] Financial Performance - The earnings report provides insights into the company's financial results for the third fiscal quarter [1] - The report is accessible on the SEC's website and the company's investor section [1]

Investment Portfolio - As of December 31, 2025, the investment portfolio consisted of 71.0% in debt investments and 29.0% in equity investments, at cost[166]. - From inception through December 31, 2025, the company has invested approximately $2.2 billion in 66 companies, excluding syndicated loans[171]. - As of December 31, 2025, the company had equity investments in 29 portfolio companies with a total cost basis of $1.1 billion, up from 26 companies with a cost basis of $1.0 billion in 2024[222]. - The total investment portfolio at fair value increased to $1,222.8 million as of December 31, 2025, up from $1,072.2 million in 2024, representing a growth of approximately 14%[223]. - The entire investment portfolio was fair valued at 115.5% of cost as of December 31, 2025[200]. Financial Performance - The company generated $353.4 million in net realized gains and $45.4 million in other income from exiting 33 portfolio companies, totaling an increase of $398.8 million to net assets[173]. - Total investment income for the three months ended December 31, 2025, increased by $3.7 million, or 17.3%, to $25.1 million compared to the prior year[182]. - Interest income rose by $2.3 million, or 11.2%, to $22.8 million for the same period, driven by an increase in the weighted-average principal balance of the interest-bearing investment portfolio[183]. - Net investment loss income was $(6.5) million for the three months ended December 31, 2025, a decrease of $7.7 million compared to the prior year[181]. - Net unrealized appreciation increased by $32.9 million, or 88.1%, to $70.2 million for the three months ended December 31, 2025[181]. - Total investment income increased by $7.8 million, or 11.8%, for the nine months ended December 31, 2025, compared to the prior year period[202]. - Net investment income decreased by $14.0 million, or 67.1%, for the nine months ended December 31, 2025[201]. - The net increase in net assets resulting from operations was $102.4 million for the nine months ended December 31, 2025, compared to $47.4 million in the prior year[201]. Expenses and Fees - Total expenses, net of credits from the Adviser, increased by $11.4 million, or 56.2%, to $31.6 million for the three months ended December 31, 2025[189]. - The capital gains-based incentive fee for the three months ended December 31, 2025, was $14.7 million, compared to $7.5 million in the prior year[190]. - Total expenses, net of credits from the Adviser, increased by $21.8 million, or 48.1%, during the nine months ended December 31, 2025[208]. - Interest expense rose by $8.4 million, or 43.4%, during the nine months ended December 31, 2025, primarily due to new debt issuances and increased borrowings[210]. - The capital gains-based incentive fee for the nine months ended December 31, 2025, was $19.4 million, up from $5.3 million in the same period of 2024[209]. Debt and Financing - The company issued the 6.875% 2028 Notes for gross proceeds of $60.0 million and sold 2,984,586 shares of common stock for approximately $42.1 million during the nine months ended December 31, 2025[174]. - The company completed a public offering of the 5.00% 2026 Notes with an aggregate principal amount of $127.9 million, resulting in net proceeds of approximately $123.8 million after costs[241]. - The 4.875% 2028 Notes had an aggregate principal amount of $134.6 million, yielding net proceeds of approximately $131.3 million after costs[244]. - The 8.00% 2028 Notes were issued with an aggregate principal amount of $74.8 million, with a loss on extinguishment of debt recorded at $1.3 million[247]. - The 7.875% 2030 Notes had an aggregate principal amount of $126.5 million, resulting in net proceeds of approximately $122.4 million after costs[248]. - As of December 31, 2025, the company had $128.6 million of borrowings outstanding under its Credit Facility, with a maximum facility size of $300.0 million[236][238]. - The company anticipates issuing equity securities to obtain additional capital in the future, with a closing market price of $13.97 per share as of December 31, 2025, representing a 6.6% discount to its NAV per share of $14.95[235]. Risk Management - The company is exposed to interest rate risk due to borrowing for investments, with net investment income dependent on the difference between borrowing rates and investment rates[265]. - The company has no fixed-rate loans in its portfolio as of December 31, 2025, indicating a complete reliance on variable-rate loans[266]. - The company targets approximately 90% of its loan portfolio to be at variable rates, with all variable-rate loans linked to the current 30-day SOFR rate as of March 31, 2025[266]. - A hypothetical analysis indicates that a 150 basis point increase in interest rates could result in a net increase of $4.494 million in net assets from operations[268]. - The company may use interest rate risk management techniques, including hedging activities, to limit exposure to interest rate fluctuations[265]. - Risks associated with foreign operations include fluctuations in foreign currency exchange rates and potential tariffs, affecting some portfolio companies[269]. Cash Distributions - The company declared a total cash distribution of $0.24 per common share for the quarter ending March 31, 2026[179]. - The company declared monthly cash distributions of $0.08 per common share for nine months from April to December 2025, along with a supplemental distribution of $0.54 per common share in June 2025[226]. - The company has a policy to distribute up to 100% of its Investment Company Taxable Income to stockholders[262]. - The company intends to maintain its qualification as a RIC under Subchapter M of the Code, which requires distributing at least 90% of its Investment Company Taxable Income to stockholders[262].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Points - Gladstone Investment Corporation announced monthly cash distributions to common stockholders [1] - The company plans to report earnings for its third fiscal quarter ended December 31, 2025 [1] Distribution Details - The board of directors declared cash distributions for common stockholders [1] Earnings Report - The upcoming earnings report will cover the third fiscal quarter ending December 31, 2025 [1]