Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q GLADSTONE INVESTMENT CORPORATION (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 | Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Wh ...

Gladstone Investment (NASDAQ:GAIN) Q4 2023 Earnings Conference Call May 11, 2023 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel Dave Dullum - President Rachael Easton - CFO Conference Call Participants Kyle Joseph - Jefferies Bryce Rowe - B. Riley Operator Greetings and welcome to the Gladstone Investment Corporation Fourth Quarter and Year End Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ 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, 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 a ...

Gladstone Investment Corporation (NASDAQ:GAIN) Q3 2023 Earnings Conference Call February 2, 2023 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer Eric Purple - Investor Relations Dave Dullum - President Rachael Easton - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Kyle Joseph - Jefferies Bryce Rowe - B. Riley Operator Greetings and welcome to the Gladstone Investment Third Quarter Earnings Call. [Operator Instructions] As a reminder, this conferen ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company presents its unaudited consolidated financial statements for the periods ended December 31, 2022 [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets grew to $771.6 million while NAV per share remained stable at $13.43 as of December 31, 2022 | Metric | December 31, 2022 ($ in thousands) | March 31, 2022 ($ in thousands) | | :--- | :--- | :--- | | **Total Investments at fair value** | $760,463 | $714,396 | | **Total Assets** | $771,564 | $740,412 | | **Total Liabilities** | $322,373 | $294,582 | | **Net Assets** | $449,191 | $445,830 | | **NAV Per Share** | $13.43 | $13.43 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Net investment income for the nine-month period grew significantly to $27.4 million, despite a drop in net assets from operations | Metric ($ in thousands) | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Total investment income | $61,686 | $53,306 | | Total expenses, net of credits | $34,330 | $45,046 | | **Net Investment Income** | **$27,356** | **$8,260** | | Net realized and unrealized gain | $3,533 | $77,360 | | **Net Increase in Net Assets** | **$30,889** | **$85,620** | | Net Investment Income per Share | $0.82 | $0.25 | | Net Increase in Net Assets per Share | $0.93 | $2.58 | [Consolidated Statements of Changes in Net Assets](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $3.4 million to $449.2 million, with growth from operations offset by stockholder distributions - Net assets grew from **$445.8 million** at March 31, 2022, to **$449.2 million** at December 31, 2022[14](index=14&type=chunk) - The increase was primarily due to **$30.9 million from operations**, which was largely offset by **$30.9 million in distributions** to common stockholders during the nine-month period[14](index=14&type=chunk)[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $13.4 million, a significant shift from cash provided in the prior year | Cash Flow Activity ($ in thousands) | Nine Months Ended Dec 31, 2022 | Nine Months Ended Dec 31, 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(13,405) | $39,293 | | Net cash provided by (used in) financing activities | $1,757 | $(13,047) | | **Net (Decrease) Increase in Cash** | **$(11,648)** | **$26,246** | [Consolidated Schedules of Investments](index=8&type=section&id=Consolidated%20Schedules%20of%20Investments) Total investments at fair value grew to $760.5 million, with high concentration in Diversified/Conglomerate Services Investment Portfolio Composition by Security Type (Fair Value) | Security Type | Dec 31, 2022 (%) | Mar 31, 2022 (%) | | :--- | :--- | :--- | | Secured first lien debt | 58.8% | 59.5% | | Secured second lien debt | 10.0% | 9.5% | | Preferred equity | 29.2% | 30.5% | | Common equity/equivalents | 2.0% | 0.5% | - The top five portfolio investments (Old World, Horizon, Dema/Mai, Brunswick Bowling, and Nocturne) collectively comprised **43.2% of the total investment portfolio** at fair value as of December 31, 2022[83](index=83&type=chunk) [Notes to Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's accounting policies, investment valuation process, and related-party fee structures - The company's investment objective is a portfolio mix of approximately **75% debt and 25% equity investments**, at cost; as of December 31, 2022, the mix was **77.2% debt and 22.8% equity**[42](index=42&type=chunk) - All investments were valued using **Level 3 inputs**, except for one investment (Funko) valued with Level 2 inputs[70](index=70&type=chunk) - The company has a **$180 million revolving line of credit** and two series of notes payable totaling **$262.5 million** in aggregate principal[104](index=104&type=chunk)[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, portfolio activity, and capital resources for the reporting period [Overview](index=46&type=section&id=Overview) The company operates as a BDC focused on U.S. Lower Middle Market companies with a strong asset coverage ratio - The company focuses on U.S. Lower Middle Market private businesses, generally defined as companies with annual **EBITDA of $3 million to $20 million**[157](index=157&type=chunk) - As of December 31, 2022, the company had unrecognized, contractual success fees of **$53.1 million**, or **$1.59 per common share**, which are not yet recorded as income[162](index=162&type=chunk) - The company's asset coverage ratio on senior securities was **250.5%** as of December 31, 2022, comfortably exceeding the **150% regulatory minimum**[169](index=169&type=chunk) [Results of Operations](index=50&type=section&id=Results%20of%20Operations) Net investment income grew 231.2% year-to-date, driven by higher income and lower incentive fees Q3 Performance (Three Months Ended Dec 31) | Metric ($ in thousands) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total investment income | $21,594 | $16,742 | 29.0% | | Net Investment Income | $8,569 | $8,399 | 2.0% | | Net Increase in Net Assets | $15,779 | $10,346 | 52.5% | Year-to-Date Performance (Nine Months Ended Dec 31) | Metric ($ in thousands) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Total investment income | $61,686 | $53,306 | 15.7% | | Net Investment Income | $27,356 | $8,260 | 231.2% | | Net Increase in Net Assets | $30,889 | $85,620 | (63.9)% | [Liquidity and Capital Resources](index=60&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through its $180 million credit facility, unsecured notes, and an active ATM program - As of December 31, 2022, the company had **$150.4 million of availability** under its **$180 million Credit Facility**[239](index=239&type=chunk) - The company has two outstanding series of notes: **$127.9 million of 5.00% Notes due 2026** and **$134.6 million of 4.875% Notes due 2028**[240](index=240&type=chunk)[243](index=243&type=chunk) - During the nine months ended December 31, 2022, the company sold 241,978 shares of common stock under its ATM program, raising approximately **$3.4 million in net proceeds**[227](index=227&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuation, mitigated by a variable-rate loan portfolio - The primary market risk is **interest rate risk**, as net investment income depends on the spread between borrowing rates and investment yields[257](index=257&type=chunk) - As of December 31, 2022, **100% of the company's debt investment portfolio** consisted of variable-rate loans with a floor, which helps protect income in a changing rate environment[258](index=258&type=chunk) [Item 4. Controls and Procedures](index=68&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes during the quarter - Management concluded that **disclosure controls and procedures were effective** as of the end of the reporting period[259](index=259&type=chunk) - **No changes in internal controls** that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting were identified during the quarter[260](index=260&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings outside the ordinary course of business - The company is **not currently involved in any material legal proceedings**[261](index=261&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, referencing the company's latest Annual Report on Form 10-K - There are **no material changes** from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022[262](index=262&type=chunk) [Other Part II Items](index=69&type=section&id=Other%20Part%20II%20Items) Items 2, 3, 4, and 5 are not applicable for this reporting period, while Item 6 lists filed exhibits - Items 2, 3, 4, and 5 of Part II are **not applicable** for this reporting period[263](index=263&type=chunk)[264](index=264&type=chunk)[265](index=265&type=chunk)[266](index=266&type=chunk)

Gladstone Investment Corporation (NASDAQ:GAIN) Q2 2023 Earnings Conference Call November 2, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer Michael LiCalsi - General Counsel and Secretary Dave Dullum - President Rachael Easton - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Thalmann Kyle Joseph - Jefferies Operator Greetings and welcome to the Gladstone Investment Second Quarter Earnings Call. [Operator Instructions] As a reminder, this confe ...

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, 2022 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 ...

Financial Data and Key Metrics Changes - Adjusted net investment income (NII) for Q1 FY2023 was $8.3 million or $0.25 per share, a decrease from $8.7 million or $0.26 per share in the prior quarter [20] - Total assets increased slightly to approximately $743 million from about $740 million at the end of Q4 FY2022 [9] - Net expenses decreased by $0.6 million compared to the prior quarter, primarily due to a decrease in accrued capital gains based incentive fees [24] - Net asset value (NAV) per share remained stable at $13.44, compared to $13.43 in the previous quarter [26] Business Line Data and Key Metrics Changes - The company made a new buyout investment of $21 million and an additional investment of $39.1 million in Dema Plumbing, creating a new portfolio company [10] - An add-on acquisition of $6.4 million was made for an existing portfolio company [11] - The company successfully exited one portfolio company, generating both capital gains and income [11] Market Data and Key Metrics Changes - The company noted that three portfolio companies were on nonaccrual status, with one expected to return to accrual soon [23] - The market for buyouts is competitive, with a noted moderation in buyout values anticipated [15][38] Company Strategy and Development Direction - The company continues to focus on a buyout strategy that generates income for monthly distributions and capital gains for supplemental distributions [13] - The balance sheet remains strong with low leverage and significant liquidity, allowing for support of portfolio companies and new acquisitions [14] - The company aims to remain patient and selective in its due diligence while aggressively seeking new acquisitions [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges such as inflationary costs and supply chain disruptions affecting portfolio companies [8] - There is an expectation of a slowdown in the buyout pipeline, but the company is still working on several promising opportunities [36] - Management expressed confidence in the portfolio's strength and the potential for good earnings and distributions over the next year [18] Other Important Information - Monthly distributions to shareholders were maintained at $0.075 per share, with a supplemental distribution of $0.12 per share paid in June 2022 [12] - The company has a strong liquidity position with no outstanding balance on its credit facility as of June 30, 2022 [14] Q&A Session Summary Question: How is the pipeline developing in the current economic environment? - Management noted a slight slowdown in the buyout pipeline but mentioned ongoing activity with several good companies [36] Question: Are sellers being realistic in their pricing given the current volatility? - Management indicated that sellers are adjusting their expectations, but there remains a wide bid-ask spread due to differing valuations [40][42] Question: How exposed is the portfolio to consumer market weaknesses? - Management acknowledged some exposure to consumer products but stated that the portfolio remains strong and diversified [45] Question: Any updates on IRS refunds for deemed distributions? - Management confirmed that there has been no significant progress on IRS refunds for deemed distributions, with only a few reports of success from specific brokerage firms [52]

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 Commission file number: 814-00704 GLADSTONE INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) DELAWARE 83-0423116 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 1521 WESTBRANCH DRIVE, SUITE 100 22102 MCLEAN, VIRGINIA (Zip Code) Fo ...

Gladstone Investment Corporation (NASDAQ:GAIN) Q4 2022 Earnings Conference Call May 12, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer Michael LiCalsi - General Counsel and Secretary Dave Dullum - President Rachael Easton - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Thalmann Operator Greetings and welcome to the Gladstone Investment Corporation’s Fourth Quarter ended March 31, 2022 Earnings Call and Webcast. [Operator Instructions] As a r ...