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MCLEAN, VA / ACCESS Newswire / November 14, 2025 / Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced that it plans to redeem all of its outstanding 8.00% Notes due 2028 (the "2028 Notes"). A notice of redemption will be mailed to all registered holders of the 2028 Notes by UMB Bank, National Association (the "Trustee"), in accordance with the terms of the Indenture, dated as of May 22, 2020, between the Company and the Trustee, and Section 1.01(g) of the Fourth Supplemental Inde ...

Core Viewpoint - Gladstone Investment Corporation has announced a registered direct offering of $60.0 million in 6.875% Notes due 2028, indicating a strategic move to raise capital through debt issuance [1] Group 1: Offering Details - The offering consists of $60.0 million aggregate principal amount of 6.875% Notes [1] - The Notes are set to mature on November 1, 2028 [1] - The Notes may be redeemed in whole or in part at any time prior to August 1, 2028 at par plus a "make-whole" premium [1] - After August 1, 2028, the Notes can be redeemed at par plus accrued and unpaid interest [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company reported adjusted net investment income (NII) of $0.24 per share, sufficient to cover monthly distributions to shareholders [5] - Total assets increased to $1.1 billion, up $90 million from the previous quarter [5] - Total investment income rose to $25.3 million from $23.5 million in the prior quarter, primarily driven by an additional $1 million of interest income [11] - Net investment income decreased to $4.3 million from $9.1 million in the prior quarter due to increased expenses [12] - Net asset value (NAV) increased to $13.53 per share from $12.99 per share at the end of the prior quarter [16] Business Line Data and Key Metrics Changes - The company has invested approximately $130 million in three new portfolio companies in the first six months of fiscal year 2026, compared to $221 million for the entire fiscal year 2025 [6] - The weighted average yield on debt investments decreased from 14.1% to 13.4%, but adjusted for past due interest, it increased from 13.1% to 13.2% [11] Market Data and Key Metrics Changes - The company noted good liquidity in the M&A market, creating a competitive environment for acquisitions [8] - The company is cautious about supply chain disruptions and tariff costs affecting consumer-focused companies [9] Company Strategy and Development Direction - The company aims to continue growing its portfolio through acquisitions at attractive valuations, utilizing a combination of equity and debt [6] - The management is actively evaluating supply chain alternatives and production strategies to navigate the current environment [10] - The company plans to access both equity and debt markets to support a healthy pipeline of new buyout opportunities [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about closing new buyouts in the remaining fiscal year despite macroeconomic uncertainties [9] - The company is closely monitoring the impact of the government shutdown on its portfolio, noting that it has not significantly affected performance [27] - Management remains confident in the restructuring of JR Hobbs, which is expected to position the company for long-term success [15] Other Important Information - The company reduced the number of portfolio companies on non-accrual status from four to three, reflecting a positive restructuring outcome [15] - The company has a strong liquidity position with $174 million available under its credit facility [17] Q&A Session Summary Question: Which sectors are the strongest in the portfolio and what sectors are facing challenges? - Management indicated that performance is relatively broad across sectors, with some consumer-oriented companies facing slight challenges [24] Question: How is the government shutdown impacting the portfolio? - Management noted that while there was initial concern, the impact has smoothed out and is not significantly affecting portfolio companies [27] Question: Is there a potential for other restructurings for companies on non-accrual? - Management does not anticipate further restructurings for other companies on non-accrual as they are producing income [33] Question: What is the outlook for the pipeline of new investments? - Management reported a strong pipeline with active diligence on several new opportunities, indicating a healthy level of activity [40] Question: How are tariff uncertainties affecting specific holdings or industries? - Management stated that many companies have mitigated tariff impacts by finding alternative sources, although caution remains [42]

分组1 - Gladstone Investment reported quarterly earnings of $0.24 per share, matching the Zacks Consensus Estimate, and the same as the previous year [1] - The company posted revenues of $25.28 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.89% and up from $22.57 million a year ago [2] - Over the last four quarters, Gladstone Investment has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2][3] 分组2 - The stock has gained approximately 4.3% since the beginning of the year, while the S&P 500 has increased by 16.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $25.18 million, and for the current fiscal year, it is $0.96 on revenues of $98.59 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Investment Income - Total investment income for Q2 2025 was $25.3 million, an increase of 7.4% from $23.5 million in Q1 2025[2] - Net investment income decreased to $4.3 million, or $0.11 per share, down 52.9% from $9.1 million, or $0.25 per share in the previous quarter[2][3] - Cash distribution per common share from net investment income was $0.24, down 11.1% from $0.27 in the previous quarter[2] Expenses - Total expenses rose to $21.0 million, a 45.3% increase from $14.5 million in Q1 2025, primarily due to higher accruals for capital gains-based incentive fees[2][5] Net Assets and Valuation - Net unrealized appreciation of investments was $54.4 million, contributing to a net increase in net assets resulting from operations of $28.7 million, a 269.4% increase from $7.8 million in Q1 2025[2][6] - Net asset value per common share increased to $13.53, up 4.2% from $12.99 in the previous quarter[2][6] Investments and Transactions - The company invested $67.6 million in Global GRAB Technologies, Inc. and restructured a $20.0 million loan with J.R. Hobbs Co., resulting in a realized loss of $29.9 million[7] - The company sold 2,238,361 shares under its ATM program, raising approximately $31.1 million at a weighted-average price of $14.10 per share[3][9] - Total investments at fair value increased to $1.13 billion, a 9.1% rise from $1.04 billion in the previous quarter[2] - The number of portfolio companies increased to 28, up from 27 in the previous quarter[2]

Core Viewpoint - Gladstone Investment Corporation announced its earnings for the second fiscal quarter ended September 30, 2025, highlighting its financial performance and filing a Quarterly Report with the SEC [1]. Financial Performance - The earnings report reflects the company's financial results for the second fiscal quarter [1]. - The report is available on the SEC's website and the company's investor section [1].

Investment Portfolio - As of September 30, 2025, the investment portfolio consisted of 71.1% in debt investments and 28.9% in equity investments, at cost[169] - From inception through September 30, 2025, the company has invested approximately $2.2 billion in 65 companies, excluding syndicated loans[174] - The fair value of the investment portfolio exceeded the cost basis by $93.7 million as of September 30, 2025, compared to $39.2 million as of June 30, 2025[200] - The ending investment portfolio at fair value increased to $1,130.9 million as of September 30, 2025, compared to $853.3 million in the prior year, representing a growth of approximately 32.5%[222] 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[176] - Total investment income for the three months ended September 30, 2025, increased by $2.7 million, or 12.0%, to $25.3 million compared to the prior year period[185] - Interest income rose by $1.7 million, or 8.0%, to $22.7 million for the three months ended September 30, 2025[186] - The net increase in net assets resulting from operations was $28.7 million, an increase of 85.4% compared to $15.5 million in the prior year[184] - Total investment income increased by $4.1 million, or 9.1%, for the six months ended September 30, 2025, compared to the prior year period[203] - The net increase in net assets resulting from operations was $36.5 million for the six months ended September 30, 2025, a significant increase of 307.3% compared to the prior year[201] Expenses and Fees - Total expenses, net of credits from the Adviser, increased by $5.7 million, or 37.5%, to $21.0 million for the three months ended September 30, 2025[192] - The incentive fee increased significantly by $2.975 million, or 133.3%, to $5.2 million for the three months ended September 30, 2025[192] - Total expenses, net of credits from the Adviser, increased by $10.4 million, or 41.6%, during the six months ended September 30, 2025, primarily due to higher incentive fees and interest expenses[209] - The company recorded a capital gains-based incentive fee of $4.7 million for the six months ended September 30, 2025, compared to a reversal of $2.2 million in the prior year[210] Investment Losses and Gains - The company recorded a net realized loss of $29.9 million on investments for the three months ended September 30, 2025, compared to a net realized gain of $42.3 million in the prior year[184] - For the three months ended September 30, 2025, the company recorded net realized losses on investments of $29.9 million, primarily due to the restructuring of J.R. Hobbs[197] - The net unrealized appreciation of investments for the same period was $54.5 million, driven by improved performance of certain portfolio companies and the reversal of previously recorded unrealized depreciation related to J.R. Hobbs[198] - Net realized losses on investments were $29.9 million for the six months ended September 30, 2025, compared to net realized gains of $42.3 million in the prior year, indicating a significant decline[215] - Net unrealized appreciation of investments was $53.4 million for the six months ended September 30, 2025, primarily due to improved performance of certain portfolio companies[216] Debt and Financing - The total commitment amount of the Credit Facility is $270.0 million, with a potential total commitment of $300.0 million[177] - As of September 30, 2025, the company had $97.7 million of borrowings outstanding on the Credit Facility[237] - The 5.00% Notes due 2026 have an aggregate principal amount of $127.9 million, with annual interest payments of $6.4 million[240] - The 4.875% Notes due 2028 have an aggregate principal amount of $134.6 million, with annual interest payments of $6.6 million[243] - The company completed a public offering of the 8.00% 2028 Notes with an aggregate principal amount of $74.8 million, resulting in net proceeds of approximately $72.3 million after deducting $2.5 million in underwriting discounts and offering costs[246][248] - The 7.875% 2030 Notes were offered with an aggregate principal amount of $126.5 million, yielding net proceeds of approximately $122.4 million after deducting $4.1 million in underwriting discounts and offering costs[249][251] Shareholder Distributions - Monthly cash distributions to common stockholders for the quarter totaled $0.24 per common share[182] - Monthly cash distributions of $0.08 per common share were paid for six months from April to September 2025, along with a supplemental distribution of $0.54 per common share in June 2025[225] Regulatory and Compliance - The company intends to maintain its qualification as a RIC under Subchapter M of the Code, requiring it to distribute at least 90% of its Investment Company Taxable Income[260] - The company anticipates issuing equity securities to obtain additional capital in the future, subject to regulatory constraints when trading below NAV[234] Risk Management - The average risk rating for loans in the company's portfolio was 7.4 as of September 30, 2025, compared to 7.0 on March 31, 2025[259] - The company uses a proprietary risk rating system to estimate the probability of default on debt securities, with a scale from 0 to >10, where >10 indicates the lowest probability of default[258] - The company targets approximately 90% of loans in its portfolio to be at variable rates, with all variable-rate loans linked to the current 30-day SOFR rate as of September 30, 2025[264]

Core Viewpoint - Gladstone Investment Corporation is set to hold its earnings call for the second fiscal quarter ended September 30, 2025, on November 5, 2025, at 8:30 a.m. ET [1] Event Details - The earnings call will be accessible via webcast at the provided link [1] - Participants can also join the call by phone by calling (866) 373-3416 [1] - A replay of the conference call will be available after the event and can be accessed until November 12, 2025 [1]