Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such ...
Gladstone Investment Corporation is a publicly traded business development company (BDC) listed on NASDAQ under the ticker GAIN. Founded in 2005 and headquartered in McLean, Virginia, the company specializes in providing capital to lower middle market businesses in the United States. It primarily focuses on mature companies, avoiding startups, and ...Gladstone Investment Corporation is a publicly traded business development company (BDC) listed on NASDAQ under the ticker GAIN. Founded in 2005 and headquartered in McLean, Virginia, the company specializes in providing capital to lower middle market businesses in the United States. It primarily focuses on mature companies, avoiding startups, and typically invests between $5 million and $30 million in debt and $10 million to $40 million in equity. The firm targets companies with EBITDA ranging from $4 million to $15 million, often seeking majority stakes and board representation. Its investment strategy includes leveraged buyouts, recapitalizations, and growth financing, with an emphasis on manufacturing, consumer products, and business/consumer services sectors. As of the latest financial data, the company has a market capitalization of approximately $660 million, with a stock price of $16.59. It manages a portfolio with total assets around $1.07 billion on an enterprise value basis. Key financial metrics include a return on equity of 28.9%, a return on assets of 13.6%, and a dividend yield of 5.8% with a quarterly dividend of $0.24 per share. The company is led by CEO David A. R. Dullum, who has been in the role since March 2026. With a team of 78 employees, Gladstone Investment maintains a lean operational structure, focusing on disciplined underwriting and active portfolio management. The firm typically holds investments for about seven years, exiting through sales or IPOs. Its investment portfolio generates income through interest and dividends, contributing to a net profit margin of 162.1%. The company's long-term strategy is to provide attractive risk-adjusted returns to shareholders through a combination of current income and capital appreciation.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$71.5M
-20.5%
-23.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$184.8M
+182.8%
-114.4%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+19.4%
-71.7%
+2214.2%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+315.8%
+334.6%
-101.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+258.5%
+255.6%
-118.9%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-101.6M
-189.2%
-52.1%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-142.1%
-212.1%
-37.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
84.5%
-7.5%
+4.5%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.01x
-99.6%
+1935.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Greetings. Welcome to Gladstone Investment Corporation First Quarter Earnings Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Mr. Gladstone, Chairman. Thank you. You may begin.
David Gladstone: Thank you for that nice introduction. This is David Gladstone, Chairman. This is the earnings conference call for the first quarter ending June 30, 2026. This is for our shareholders and for any of the analysts that are on the line for Gladstone Investment is listed on NASDAQ trading symbol GAIN, easy to remember because we're always triggering capital gains. So you keep up with us by listening to this and following us online. As for the common stock, we do have some registered notes, three of them, you can buy our notes as well. This is a multifaceted company. And I want to thank you all for calling in. We're happy to provide updates to our shareholders and analysts and provide our view of the current business environment. And there are 2 goals really to help you understand what just happened to us and what's happened to us over the last so many months and also give you a current view of the future. And now we'll hear from Catherine Gerkis. She's Director of Investor Relationship as well as any ESG and provides a brief disclosure regarding the certain regulatory matters that she keeps us from violating. So Catherine, jump online.
Catherine Gerkis: Thank you, David, and good morning, everyone. Today's call may include forward-looking statements, which are based on management's estimates, assumptions, and projections. There are no guarantees of future performance, and actual results may differ materially from those expressed or implied in these statements due to various uncertainties, including the risk factors set forth in our SEC filings, which you can find on the investors page of our website, gladstoneinvestment.com. We assume no obligation to update any of these statements unless required by law. Please visit our website for a copy of our Form 10-Q and earnings press release for more detailed information. You can also sign up for our email notification service and find information on how to contact our Investor Relations department. We're also on X at @GladstoneComp, as well as Facebook and LinkedIn. Keyword for both is The Gladstone Companies. Now I will turn the call over to David Dullum, CEO and President of Gladstone Investment.
Dave Dullum: Thanks, Catherine, and welcome to everyone on the phone call. I am happy to report that GAIN again produced solid quarter results this time for this first quarter ended June 30, 2026. We generated adjusted NII of $0.26 per share, which is sufficient to cover the monthly dividend distributions for the quarter, and we also ended a total portfolio fair value of $1.3 billion. So this was a pretty busy quarter, very much so with deal-related activity. And during the quarter, we actually entered into an agreement to acquire one new …
