Financial Performance - Gladstone Investment reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.26 per share a year ago, representing an earnings surprise of -4.17% [1] - The company posted revenues of $21.37 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 7.41%, compared to year-ago revenues of $23.08 million [2] - Over the last four quarters, Gladstone Investment has not surpassed consensus EPS estimates and has topped consensus revenue estimates just once [2] Market Performance - Since the beginning of the year, Gladstone Investment shares have added about 1.7%, while the S&P 500 has gained 3.2% [3] - The current consensus EPS estimate for the coming quarter is $0.24 on revenues of $23.24 million, and for the current fiscal year, it is $0.96 on revenues of $91.06 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which Gladstone Investment belongs, is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can materially impact stock performance [5][8]

Gladstone Investment Corporation Reports Financial Results for its Third Quarter Ended December 31, 2024 MCLEAN, VA, February 12, 2025: Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its third fiscal quarter ended December 31, 2024. Please read the Company's Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or the investors section of the Company's websit ...

Investment Portfolio - As of December 31, 2024, the investment portfolio consisted of 76.3% in debt investments and 23.7% in equity investments, at cost[164]. - From inception through December 31, 2024, the company has invested approximately $2.0 billion in 62 companies, excluding syndicated loans[169]. - The company exited 32 portfolio companies, generating $332.5 million in net realized gains and $42.0 million in other income, totaling an increase of $374.5 million to net assets[171]. - As of December 31, 2024, unrecognized contractual success fees amounted to $52.8 million, or $1.43 per common share[170]. - The investment strategy focuses on lower middle market private businesses with annual EBITDA of $4 million to $15 million[165]. Financial Performance - Total investment income decreased by $1.7 million, or 7.4%, to $21.4 million for the three months ended December 31, 2024, compared to $23.1 million in the prior year period[182]. - Interest income from debt securities decreased by $1.2 million, or 5.4%, to $20.5 million for the three months ended December 31, 2024[184]. - Total expenses increased by $6.9 million, or 51.5%, to $20.2 million for the three months ended December 31, 2024, primarily due to an increase in incentive fees[190]. - Net investment income fell by $8.6 million, or 88.1%, to $1.2 million for the three months ended December 31, 2024[182]. - The net investment income for the nine months ended December 31, 2024, was $20.9 million, an increase of 26.8% compared to $16.5 million in the prior year[201]. Capital Structure and Financing - The company issued 7.875% 2030 Notes for gross proceeds of $126.5 million during the nine months ended December 31, 2024[172]. - The company has successfully extended the Credit Facility's revolving period to October 2026, with a total commitment amount of $250.0 million[172]. - The company declared monthly cash distributions of $0.08 per common share for January, February, and March 2025, totaling $0.24 for the quarter[178]. - The company anticipates issuing equity securities to obtain additional capital in the future, subject to regulatory constraints when trading below NAV[236]. - 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 underwriting discounts and offering costs of $2.5 million[251][253]. Asset and Liability Management - The asset coverage ratio on senior securities representing indebtedness was 185.9% as of December 31, 2024[176]. - As of December 31, 2024, the company had a net worth of $943.9 million and asset coverage of 185.9% on senior securities representing indebtedness[242]. - The company's total contractual obligations as of December 31, 2024, amounted to $691.8 million, including $463.7 million in notes payable and $136.6 million in interest payments[259]. - The company has line of credit commitments to portfolio companies totaling an aggregate principal of $4.8 million, which are not fully drawn[258]. Investment Income and Expenses - The capital gains-based incentive fee recorded was $7.5 million for the three months ended December 31, 2024, compared to a reversal of $0.6 million in the prior year period[191]. - Total expenses, net of credits from the Adviser, decreased by $2.0 million, or 4.1%, during the nine months ended December 31, 2024, mainly due to a reduction in incentive fees[209]. - The total investment income for the nine months ended December 31, 2024, increased by $2.5 million, or 3.9%, compared to the prior year, driven by higher interest income and dividend and success fee income[203]. Market Performance - The closing market price of the common stock on December 31, 2024, was $13.25 per share, representing a 0.4% discount to the net asset value (NAV) of $13.30 per share[173]. - As of December 31, 2024, the fair value of the investment portfolio exceeded the cost basis by $50.5 million, compared to $13.2 million as of September 30, 2024[199]. - The weighted-average yield on interest-bearing investments was 14.0% for the three months ended December 31, 2024, down from 14.4% in the prior year[186]. Risk Management - The primary risk exposure for the company is interest rate risk, which affects net investment income due to borrowing costs and investment rates[268]. - The average risk rating for loans in the company's portfolio improved from 6.6 in March 2024 to 6.9 in December 2024, with a weighted-average rating increasing from 6.9 to 7.4[264]. - 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 December 31, 2024[269].

Acquisition Overview - Proteus Enterprises acquired Ricardo Defense Inc in partnership with Gladstone Investment Corporation [1] - Financial terms of the acquisition were not disclosed [1] Company Profiles Proteus Enterprises - Maryland-based holding company investing in middle and lower middle market aerospace, defense and government services businesses [4] - Focuses on cultivating next generation of middle-tier ADG management teams and companies [4] - Professionals have deep ADG sector experience, providing networks, operational expertise, and strategic insights [4] Ricardo Defense - Engineering services and systems integration company headquartered in Troy, Michigan [5] - Specializes in integrated vehicle engineering solutions for US Department of Defense and prime contractors [5] - Employs approximately 240 individuals as of January 2025, with US operations and some international field services [5] - Industry leader in developing engineering and product solutions for US Army vehicle and logistics programs [2] Strategic Rationale - Ricardo Defense has developed innovative technical solutions including ABS/ESC system for HMMWV [3] - Acquisition brings US ownership and access to capital for Ricardo Defense [3] - Proteus aims to leverage its government services and technology expertise to expand Ricardo's capabilities [3] - Synergy expected between Proteus' investment expertise and Ricardo's technical capabilities [3] Leadership Perspectives - Proteus co-founders highlight Ricardo's experienced leadership team and customer relationships [3] - Ricardo President emphasizes employee achievements and potential for expanded success with Proteus partnership [3] - Incoming CEO of Ricardo Defense expresses excitement about providing mission-critical services to US military [3] Transaction Advisors - Holland & Knight served as legal counsel to Proteus [3] - Squire Patton Boggs served as legal counsel to Ricardo Plc [3] - Houlihan Lokey served as financial advisor to Ricardo Plc [3]

Company and Industry Analysis - The article focuses on the latest exchange-traded debt IPO by Gladstone Investment Corp, specifically the Gladstone Investment Corp 7 875% Notes [1] - The discussion is part of a series of "new issue" oriented articles aimed at active investors [1] - The article invites active investors to join a free trial and participate in a chat room with sophisticated traders and investors [1]

Gladstone Investment (NASDAQ:GAIN) Q2 2025 Earnings Call Transcript November 8, 2024 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel and Secretary Dave Dullum - President Rachael Easton - CFO Conference Call Participants Mickey Schleien - Ladenburg Thalmann Bryce Rowe - B. Riley Securities Matthew Hurwit - Jefferies Operator Greetings. Welcome to Gladstone Investment Corporation's Second Quarter Earnings Call. At this time, all participants are in a listen-only mode. ...

Gladstone Investment (GAIN) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4%. A quarter ago, it was expected that this business development company would post earnings of $0.25 per share when it actually produced earnings of $0.24, delivering a surprise of -4%.Over the last four qu ...

NM = Not Meaningful GLADSTONE INVESTMENT Gladstone Investment Corporation Reports Financial Results for its Second Quarter Ended September 30, 2024 MCLEAN, VA, November 7, 2024: Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company") today announced earnings for its second fiscal quarter ended September 30, 2024. Please read the Company's Quarterly Report on Form 10-Q, filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov or t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 814-00704 GLADSTONE INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) Delaware 83 ...

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