MCLEAN, VA / ACCESS Newswire / September 15, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced that it plans to redeem all of its outstanding 5.125% Notes due 2026 (the "2026 Notes") on October 31, 2025 and all of its outstanding 7.75% Notes due 2028 (the "2028 Notes") on October 15, 2025. A notice of redemption will be mailed to all registered holders of the 2026 Notes and the 2028 Notes by U.S. Bank Trust Company, National Association (the "Trustee"), in accordance with th ...

MCLEAN, VA / ACCESS Newswire / September 13, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") announced today that its board of directors declared the following additional supplemental cash distribution to common stockholders payable in September 2025. Common Stock: A supplemental distribution of $0.10 per share of common stock in September 2025 payable per the table below. ...

Gladstone Capital (NASDAQ:GLAD) has priced a $130 million public offering of 5.875% convertible notes due 2030 at 98.5% of the principal amount thereof, up from the previously announced $110 million. The underwriter has a 30-day option to buy an additional $19.5 million ...

Core Viewpoint - Gladstone Capital Corporation has announced a public offering of $130.0 million in convertible notes with a 5.875% interest rate due in 2030 [1] Group 1 - The company priced the convertible notes at an issue price of 98.5% of the principal amount [1] - An additional option for the underwriter to purchase up to $19.5 million in aggregate principal amount of the notes has been granted to cover overallotments [1]

MCLEAN, VA / ACCESS Newswire / September 8, 2025 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced the commencement of a registered public offering of $110 million aggregate principal amount of unsecured convertible notes due 2030 (the "Notes"). In addition, the Company expects to grant the underwriter of the Notes an option to purchase up to an additional $16.5 million in aggregate principal amount of the Notes. ...

Group 1 - Business Development Companies (BDCs) are gaining popularity among investors looking to benefit from the current higher interest rate environment [1] - Gladstone Capital (NASDAQ: GLAD) has shown strong performance over the past few years, indicating a positive trend in the BDC sector [1] - A hybrid investment strategy combining classic dividend growth stocks with BDCs, REITs, and Closed End Funds can enhance investment income while achieving total returns comparable to traditional index funds like the S&P [1]

Financial Data and Key Metrics Changes - Fundings for the quarter totaled $73 million, with exits and prepayments at $82 million, resulting in net originations of negative $9 million [6][7] - Interest income decreased by 2.3% to $20.9 million, while the weighted average portfolio yield increased by 20 basis points to 12.8% [12][7] - Net investment income remained flat at $11.3 million, with net realized losses of $3.6 million primarily related to a specific investment [7][13] Business Line Data and Key Metrics Changes - The portfolio turnover did not materially impact the investment mix, with 70% of new originations being first lien debt [9] - The company maintained a conservative leverage position with debt at 64% of NAV, which increased to 81% of NAV post-quarter [11][15] Market Data and Key Metrics Changes - The company continues to see a healthy flow of attractive lower middle market deal opportunities, with 88% of recent deals being first lien investments [10] - The average closing leverage for new deals was three times EBITDA, with an average margin over SOFR exceeding 7% [10] Company Strategy and Development Direction - The company remains focused on growth-oriented lower middle market investments backed by private equity sponsors [19] - The strategy includes recycling investment exits to support portfolio growth and shareholder distributions [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the portfolio, citing well-articulated growth strategies among investments [24] - Concerns about economic headwinds were acknowledged, but the company believes its investments can withstand these challenges due to conservative leverage and cash flow generation [26][27] Other Important Information - Total assets rose to $780 million, with liabilities primarily consisting of senior notes and a line of credit [13][14] - Monthly distributions for August and September will be $0.0165 per common share, translating to an annual run rate of $1.98 per share [15] Q&A Session Summary Question: Impact of private credit growth on spreads - Management noted that while there is some pressure from sponsors, they have successfully resisted significant reductions in spreads, maintaining an average above 7% over SOFR [21][22] Question: Overall health of the portfolio amid economic uncertainty - Management indicated that most investments have solid growth strategies and can withstand economic headwinds, with a focus on long-term growth rather than short-term economic fluctuations [24][26] Question: Changes in portfolio structure to boost yields - Management clarified that there is no fundamental strategy change, but they are exploring opportunities to manage yield targets through selective second lien and asset-backed facilities [30][32] Question: Leverage ratio and prepayment patterns - Management confirmed the leverage ratio increase to 81% of NAV and noted that prepayments have been unpredictable, typically occurring when companies are up for sale [37][39] Question: Financing options for upcoming debt maturity - Management is evaluating various options for addressing the upcoming debt maturity, expressing some disappointment with current market spreads [41] Question: Future pipeline and backlog outlook - Management expects a healthy number of additional investments and anticipates net originations in the range of $50 million to $100 million per quarter [44][46] Question: Activity level and December quarter expectations - Management expressed cautious optimism for a strong Q4, traditionally a busy quarter, while acknowledging economic uncertainties that may affect deal closures [53][55]

Core Insights - Gladstone Capital reported steady net investment income per share at $0.50, slightly above expectations, while GAAP revenue was $21.7 million, just below the consensus of $21.88 million [1][2] - The company experienced significant realized losses of $3.62 million, marking an $11.33 million swing from the previous quarter's gain [1][7] - Net Asset Value (NAV) per share decreased by 0.7% quarter over quarter, indicating pressure on asset values [1][2] Financial Performance - Net investment income remained stable at $11.3 million, with a slight increase of 0.9% from the previous quarter [2] - Total investments at fair value decreased by $11.38 million, or 1.5%, despite a $72.95 million investment in new portfolio companies, a 60% increase from the prior quarter [5][7] - The weighted average yield on interest-bearing investments rose to 12.8% from 12.6% in the prior quarter, reflecting improved portfolio returns [6] Dividend Policy - The quarterly dividend distribution was maintained at $0.495 per share, resulting in a 100% payout ratio, indicating a commitment to income stability for shareholders [12][13] - Monthly distributions of $0.165 per share were declared for Q4 FY2025, showing consistency in shareholder returns [13] Business Overview - Gladstone Capital focuses on providing debt and equity financing to lower middle market companies, primarily through secured first lien and second lien loans [3][10] - The company emphasizes credit quality, with over 70% of debt investments being first lien loans, which offer a layer of protection against credit losses [4][10] Strategic Developments - Management expanded its credit facility to $320 million to enhance flexibility and support future investments [8] - Following the quarter-end, the company closed $76.7 million in new investments and $16.6 million in add-ons, indicating confidence in capital redeployment [9][8] Future Outlook - Management did not provide explicit forward guidance but highlighted a strong deal pipeline and the expectation of reduced portfolio repayments, which could support future earnings growth [14]

分组1 - Gladstone Capital reported quarterly earnings of $0.5 per share, matching the Zacks Consensus Estimate, but down from $0.57 per share a year ago [1] - The company posted revenues of $21.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.19%, but down from $25.69 million year-over-year [2] - Over the last four quarters, Gladstone Capital has not exceeded consensus EPS estimates and has topped revenue estimates only once [2][3] 分组2 - The stock has underperformed, losing about 4.1% since the beginning of the year, while the S&P 500 has gained 6.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $22.57 million, and for the current fiscal year, it is $2.00 on revenues of $87.52 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is in the bottom 42% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

[Summary of Financial Results](index=1&type=section&id=Summary%20Information) Gladstone Capital reported stable Net Investment Income (NII) of $0.50 per share for the third fiscal quarter of 2025, unchanged from the prior quarter, while Net Asset Value (NAV) per common share decreased slightly by 0.7% to $21.25, and the total fair value of investments saw a minor decline of 1.5% to $751.3 million Q3 2025 Financial Summary (vs. Q2 2025) | | June 30, 2025 (in thousands) | March 31, 2025 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | **For the Quarter Ended:** | | | | | | Total investment income | $21,657 | $21,569 | $88 | 0.4% | | Net investment income | $11,294 | $11,245 | $49 | 0.4% | | Net investment income per common share ($) | $0.50 | $0.50 | $0.00 | 0.0% | | Net increase (decrease) in net assets | $7,448 | $8,797 | $(1,349) | (15.3)% | | **As of:** | | | | | | Total investments, at fair value | $751,260 | $762,636 | $(11,376) | (1.5)% | | Net asset value per common share ($) | $21.25 | $21.41 | $(0.16) | (0.7)% | [Third Fiscal Quarter 2025 Highlights](index=1&type=section&id=Third%20Fiscal%20Quarter%202025%20Highlights) During the quarter, the company was active in its portfolio, investing a total of $73.0 million across new and existing companies, maintaining a conservative portfolio mix with over 70% in secured first lien assets, and successfully extending its credit facility to October 2029, increasing its total commitment to $320.0 million - Invested **$58.6 million** in two new portfolio companies and **$14.4 million** in existing ones[5](index=5&type=chunk) - The portfolio composition remains conservative, with secured first lien assets constituting over **70%** of debt investments at cost[5](index=5&type=chunk) - The credit facility was expanded to a total commitment of **$320.0 million**, with the revolving period extended to October 2027 and final maturity to October 2029[5](index=5&type=chunk) [Detailed Financial Performance Analysis](index=2&type=section&id=Third%20Fiscal%20Quarter%202025%20Results) For the quarter ended June 30, 2025, total investment income saw a marginal increase of 0.4%, driven by higher prepayment fees and dividend income, which offset a decrease in interest income from a smaller average portfolio balance, while expenses remained flat as lower interest expense was offset by higher management and incentive fees, resulting in a stable Net Investment Income of $11.3 million, or $0.50 per share, and a net increase in net assets from operations of $7.4 million, a decrease from the prior quarter, primarily due to a $3.6 million net realized loss - Total investment income increased slightly by **$88 thousand**, primarily due to a **$0.6 million** increase in other income (prepayment fees and dividends), which was partially offset by a **$0.5 million** decrease in interest income[6](index=6&type=chunk) - Total expenses were stable quarter-over-quarter, as a **$0.6 million** decrease in interest expense was offset by a **$0.5 million** increase in net base management and incentive fees[7](index=7&type=chunk) Quarterly Income and Net Asset Changes | Metric | Amount (in millions) | Per Share ($) | | :--- | :--- | :--- | | Net Investment Income | $11.3 | $0.50 | | Net Increase in Net Assets | $7.4 | $0.33 | [Subsequent Events](index=2&type=section&id=Subsequent%20Events) Following the quarter's end, Gladstone Capital was highly active, investing a total of $94.3 million in five new and existing portfolio companies during July and August 2025, and the company's Board of Directors also declared monthly distributions for its common and preferred stock for the upcoming quarter [Portfolio Activity](index=2&type=section&id=Portfolio%20Activity) In July and August 2025, the company deployed significant capital, investing in five companies across various sectors through secured first and second lien debt, as well as equity, with this activity including one debt payoff at par from 8th Avenue Food and Provisions, Inc - Subsequent to quarter-end, the company made several significant investments: - **$25.0 million** in MASSiv Brands, LLC (secured first lien debt) - **$15.0 million** in Alsay, Inc. (secured second lien debt and preferred equity) - **$23.7 million** in Snif-Snax, LLC (secured first lien debt and preferred equity) - **$13.0 million** in a precision manufacturing business (secured first lien debt and common equity) - An additional **$16.6 million** in existing portfolio company OCI, LLC[12](index=12&type=chunk) [Distributions and Dividends Declared](index=2&type=section&id=Distributions%20and%20Dividends%20Declared) In July 2025, the Board of Directors declared monthly cash distributions of $0.165 per common share for July, August, and September 2025, totaling $0.495 for the quarter, with dividends also declared for the Series A Preferred Stock Common Stock Distributions Declared | Record Date | Payment Date | Distribution per Share ($) | | :--- | :--- | :--- | | July 21, 2025 | July 31, 2025 | $0.165 | | August 20, 2025 | August 29, 2025 | $0.165 | | September 22, 2025 | September 30, 2025 | $0.165 | | **Total for the Quarter** | | **$0.495** | [Management Commentary](index=3&type=section&id=Comments%20from%20Gladstone%20Capital%27s%20President%2C%20Bob%20Marcotte) President Bob Marcotte stated that the company has successfully managed recent portfolio liquidity events, ending the quarter with a strong balance sheet and funding capacity, expressing confidence in the company's lower middle market strategy and its ability to grow the investment portfolio to support future shareholder distributions, which is evidenced by the robust funding activity that occurred after the quarter's end - Management believes the company has absorbed the recent surge in portfolio liquidity events and ended the quarter with a strong balance sheet and funding capacity[13](index=13&type=chunk) - The company is confident in its lower middle market deal focus and is on track to grow the investment portfolio to support shareholder distributions, as demonstrated by significant subsequent funding events[13](index=13&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20for%20Stockholders) The company will host a conference call for stockholders on Tuesday, August 5, 2025, at 8:30 a.m. Eastern Time to discuss the quarterly results, with details for participation via phone and online webcast, as well as for a replay, provided - The earnings conference call is scheduled for Tuesday, August 5, 2025, at **8:30 a.m. Eastern Time**[13](index=13&type=chunk) - To participate, call **(866) 424-3437**, and a replay will be available by dialing **(877) 660-6853** with conference number **13754182**[13](index=13&type=chunk) [About Gladstone Capital Corporation](index=3&type=section&id=About%20Gladstone%20Capital%20Corporation) Gladstone Capital Corporation is a publicly-traded business development company (BDC) whose primary investment strategy is to provide secured first and second lien term loans and equity securities to lower middle market businesses in the United States - Gladstone Capital is a business development company (BDC) that primarily invests in secured first and second lien term loans to lower middle market U.S. businesses[14](index=14&type=chunk) [Forward-looking Statements](index=3&type=section&id=Forward-looking%20Statements) This section contains a standard legal disclaimer, cautioning that statements in the press release regarding future growth and shareholder returns are forward-looking and subject to inherent risks and uncertainties, and the company does not commit to updating these statements unless required by law - The press release includes forward-looking statements concerning future growth and returns, which are subject to risks and uncertainties that could cause actual results to differ materially[17](index=17&type=chunk)