For the quarter ended March 2024, Gladstone Investment (GAIN) reported revenue of $23.65 million, up 19.1% over the same period last year. EPS came in at $0.24, compared to $0.29 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $22.94 million, representing a surprise of +3.10%. The company delivered an EPS surprise of -7.69%, with the consensus EPS estimate being $0.26.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Gladstone Investment (GAIN) came out with quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.69%. A quarter ago, it was expected that this business development company would post earnings of $0.27 per share when it actually produced earnings of $0.26, delivering a surprise of -3.70%.Over the last f ...

Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2024 MCLEAN, VA, May 8, 2024: Gladstone Investment Corporation (Nasdaq: GAIN) (the "Company") today announced earnings for its fourth quarter and fiscal year ended March 31, 2024. Please read the Company's Annual Report on Form 10-K, 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 Com ...

Table of Contents FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 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) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 2054 ...

Jonathan Kitchen/DigitalVision via Getty Images Overview The latest CPI report released, and the overall sentiment leads to a lower chance of interest rate cuts. The original probability of interest rate cuts before the March CPI report was around the 56% mark but has now dropped to an 18.5% chance of rate cuts by the end of June. While the market seems to be unpleased with this news, I think it's a great thing for the Business Development Company [BDC] sector and companies like Gladstone Investment (NASDAQ ...

Klaus Vedfelt Gladstone Investment (NASDAQ:GAIN) is an Equity-focused business development company that has considerable potential for net asset value growth in a growing economy. Furthermore, Gladstone Investment has paid a boatload of special dividends in the present financial year in order to distribute portfolio excess income and the company's $0.08 per share monthly dividend has consistently been covered by its adjusted net investment income. Given the unique composition of Gladstone Investment's portf ...

“The rent is too damn high!” That was the campaign slogan of New York City mayoral candidate Jimmy McMillan in 2010. At the time, the average rent in the city was $1,216 per month, 27% higher than the $955 a month national average.Some 13 years later, the situation dramatically deteriorated. Median rents in Manhattan at the end of last year was $4,457 per month, a 366% increase in 13 years! That works out to  a 10.5% compounded annual growth rate (CAGR). Nationally, median rent is $1,317 per month, a 2.5% C ...

imaginima Rising rates have impacted asset classes across the board, ushering in an unprecedented era of investing. A rapidly rising Federal Funds rate impacted income-producing investments across the board as valuation pressure proved inescapable. However, one sector remained insulated. In fact, rising rates served as a significant tailwind for these lenders in general. The past two years have put a spotlight on business development companies, or BDCs. BDCs are specialty finance companies that act as capit ...

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 December 31, 2023 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- ...

```markdown [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Gladstone Investment Corporation's unaudited consolidated financial statements, including assets, operations, cash flows, and investment schedules, for the periods ended September 30, 2023 [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to $928.3 million by September 30, 2023, from $765.6 million, with net assets rising to $475.7 million and NAV per share to $14.03 Consolidated Statements of Assets and Liabilities (in thousands, except per share amounts) | Metric | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | **Total Investments at Fair Value** | $915,636 | $753,543 | | **Total Assets** | $928,349 | $765,644 | | **Total Borrowings** | $409,672 | $292,607 | | **Total Liabilities** | $452,683 | $325,902 | | **Net Assets** | $475,666 | $439,742 | | **Net Asset Value Per Share** | $14.03 | $13.09 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended September 30, 2023, the company reported a net investment loss of $1.7 million, while a $49.1 million gain led to a $47.4 million net increase in net assets, or $1.40 per share Key Operational Data (in thousands, except per share amounts) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Six Months Ended Sep 30, 2023 | Six Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $20,277 | $20,795 | $40,577 | $40,092 | | Total Expenses, net | $22,007 | $9,379 | $33,867 | $21,305 | | Net Investment (Loss) Income | $(1,730) | $11,416 | $6,710 | $18,787 | | Net Realized and Unrealized Gain (Loss) | $49,086 | $(8,341) | $49,432 | $(3,677) | | **Net Increase in Net Assets** | **$47,356** | **$3,075** | **$56,142** | **$15,110** | | **Net Increase in Net Assets per Share** | **$1.40** | **$0.09** | **$1.67** | **$0.45** | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased from $439.7 million to $475.7 million by September 30, 2023, driven by a $56.1 million net increase from operations and $4.1 million from stock issuance, offset by distributions Changes in Net Assets for the Six Months Ended September 30, 2023 (in thousands) | Description | Amount | | :--- | :--- | | Net Assets, March 31, 2023 | $439,742 | | Net Increase from Operations | $56,142 | | Net Decrease from Distributions | $(24,277) | | Net Increase from Capital Activity | $4,059 | | **Net Assets, September 30, 2023** | **$475,666** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $96.6 million for the six months ended September 30, 2023, offset by $95.9 million from financing activities, resulting in a $0.7 million net decrease in cash Cash Flow Summary for the Six Months Ended September 30 (in thousands) | Cash Flow Category | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash (Used in) Provided by Operating Activities | $(96,585) | $(9,445) | | Net Cash Provided by (Used in) Financing Activities | $95,919 | $(2,147) | | **Net (Decrease) Increase in Cash** | **$(666)** | **$(11,592)** | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments) Total investments at fair value reached $915.6 million by September 30, 2023, with the portfolio comprising 66.7% debt and 33.3% equity, diversified across 16 industries and 26 companies Investment Portfolio Composition by Security Type (at Fair Value) | Security Type | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Secured first lien debt | 55.5% | 58.1% | | Secured second lien debt | 11.2% | 10.1% | | **Total debt** | **66.7%** | **68.2%** | | Preferred equity | 29.3% | 29.5% | | Common equity/equivalents | 4.0% | 2.3% | | **Total equity/equivalents** | **33.3%** | **31.8%** | | **Total investments (in millions)** | **$915.6** | **$753.5** | - The top five portfolio investments (Nocturne, Counsel Press, Inc., Old World, Brunswick Bowling Products, Inc. and Horizon Facilities Services, Inc.) represented **39.9%** of the total investment portfolio at fair value as of September 30, 2023 [Notes to Consolidated Financial Statements](index=19&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, investment valuation, revenue recognition, related-party transactions, credit facilities, equity offerings, and significant subsequent events - The company is a Business Development Company (BDC) and a Regulated Investment Company (RIC), investing in debt (approx. **75%** at cost) and equity (approx. **25%** at cost) of established private U.S. businesses[44](index=44&type=chunk) - As of September 30, 2023, loans to Edge Adhesives, J.R. Hobbs, and The Mountain were on non-accrual status, representing **10.3%** of the cost basis of all debt investments[63](index=63&type=chunk) - Subsequent to the quarter end, in October 2023, the company exited its investment in Counsel Press, Inc., resulting in success fee income of **$1.4 million** and a realized gain of **$43.5 million** It also amended its credit facility, extending the revolving period to October 2026 and reducing the facility size to **$135.0 million**[152](index=152&type=chunk)[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results, covering business overview, portfolio activity, capital raising, regulatory compliance, liquidity, and critical accounting estimates [Overview](index=47&type=section&id=Overview) The company operates as a BDC and RIC, targeting a 75% debt and 25% equity investment mix at cost, maintaining a strong asset coverage ratio of 211.5% as of September 30, 2023 - The company's investment objective is to achieve current income from debt securities and long-term capital appreciation from equity securities in established U.S. private businesses[160](index=160&type=chunk) - As of September 30, 2023, the company had unrecognized, contractual success fees of **$59.8 million**, or **$1.76** per common share, which are not recorded on the balance sheet[166](index=166&type=chunk) - The company's asset coverage ratio for senior securities was **211.5%** as of September 30, 2023, exceeding the required minimum of **150%**[172](index=172&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) For the three months ended September 30, 2023, a $1.7 million net investment loss was offset by $48.7 million in unrealized appreciation, leading to a $47.4 million net increase in net assets Comparison of Operations for the Three Months Ended September 30 | Metric (in thousands) | 2023 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $20,277 | $20,795 | $(518) | (2.5)% | | Total Expenses, net | $22,007 | $9,379 | $12,628 | 134.6% | | Net Investment (Loss) Income | $(1,730) | $11,416 | $(13,146) | (115.2)% | | Net Realized/Unrealized Gain (Loss) | $49,086 | $(8,341) | $57,427 | NM | | **Net Increase in Net Assets** | **$47,356** | **$3,075** | **$44,281** | **NM** | Comparison of Operations for the Six Months Ended September 30 | Metric (in thousands) | 2023 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $40,577 | $40,092 | $485 | 1.2% | | Total Expenses, net | $33,867 | $21,305 | $12,562 | 59.0% | | Net Investment Income | $6,710 | $18,787 | $(12,077) | (64.3)% | | Net Realized/Unrealized Gain (Loss) | $49,432 | $(3,677) | $53,109 | NM | | **Net Increase in Net Assets** | **$56,142** | **$15,110** | **$41,032** | **271.6%** | - The significant increase in expenses for the three and six-month periods was primarily driven by higher capital gains-based incentive fees, which are accrued based on net realized gains and unrealized appreciation in the portfolio[186](index=186&type=chunk)[206](index=206&type=chunk) [Liquidity and Capital Resources](index=62&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is sourced from operations, its credit facility, and debt/equity issuance, with $100.7 million available on its credit facility and total contractual obligations of $513.3 million - Net cash used in operating activities was **$96.6 million** for the six months ended Sep 30, 2023, mainly due to **$114.8 million** in investment purchases[218](index=218&type=chunk)[219](index=219&type=chunk) - Financing activities provided **$95.9 million** in cash, primarily from a **$74.8 million** issuance of **8.00%** Notes due 2028 and net borrowings on the credit facility[222](index=222&type=chunk) Contractual Obligations as of September 30, 2023 (in thousands) | Contractual Obligations | Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Credit Facility | $79,300 | $— | $79,300 | $— | $— | | Notes payable | $337,238 | $— | $127,938 | $74,750 | $134,550 | | Interest payments on obligations | $96,716 | $26,382 | $45,705 | $24,082 | $547 | | **Total** | **$513,254** | **$26,382** | **$252,943** | **$98,832** | **$135,097** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with 100% of its debt portfolio consisting of variable-rate loans with an interest rate floor as of September 30, 2023 - The company's primary market risk exposure is to interest rate fluctuations, which affects the spread between its borrowing costs and investment income[258](index=258&type=chunk) - As of September 30, 2023, **100%** of the company's debt investment portfolio consisted of variable-rate loans with an interest rate floor[259](index=259&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal control over financial reporting identified - Management concluded that disclosure controls and procedures were effective as of September 30, 2023[260](index=260&type=chunk) - There were no changes in internal controls during the three months ended September 30, 2023, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[261](index=261&type=chunk) [PART II. OTHER INFORMATION](index=70&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company may be involved in ordinary course legal proceedings but does not expect any current matters to materially affect its financial condition or results of operations - The company is not currently party to any legal proceeding that involves a claim for damages exceeding **10%** of its consolidated current assets[262](index=262&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023 - For a discussion of risks, the company refers to the "Risk Factors" section in its Annual Report on Form 10-K for the fiscal year ended March 31, 2023[263](index=263&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[264](index=264&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the third quarter of 2023 - No officers or directors adopted or terminated any contract, instruction, or written plan for the purchase or sale of the company's securities intended to satisfy Rule 10b5-1(c) conditions during the quarter[267](index=267&type=chunk) ```