Investor Presentation for the Fiscal Quarter Ended December 31, 2022 FINANCING FOR LOWER MIDDLE MARKET COMPANIES Legal Disclaimer Forward-Looking Statements: This presentation may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include comments with respect to our objectives and strategies, and the results of our operations and our busines ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one): ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 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: 814-00237 GLADSTONE CAPITAL CORPORATION (Exact name of registrant as specified in its charter) ...

Gladstone Capital Corp (NASDAQ:GLAD) Q4 2022 Results Conference Call November 15, 2022 8:30 AM ET Company Participants David Gladstone - Chairman & CEO Michael LiCalsi - General Counsel & Secretary Robert Marcotte - Executive MD & President Nicole Schaltenbrand - CFO & Treasurer Conference Call Participants Mickey Schleien - Ladenburg Thalmann & Co. Operator Greetings. Welcome to the Gladstone Capital Corporation Fourth Quarter and Year-End Earnings Call. At this time, all participants are in a listen-only ...

Gladstone Capital Corp (NASDAQ:GLAD) Q3 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants David Gladstone - Chairman & CEO Michael LiCalsi - General Counsel & Secretary Robert Marcotte - Executive MD & President Nicole Schaltenbrand - CFO & Treasurer Conference Call Participants Robert Dodd - Raymond James & Associates Mickey Schleien - Ladenburg Thalmann & Co. Operator Greetings. Welcome to the Gladstone Capital Corporation Third Quarter Earnings Call. [Operator Instructions]. Ple ...

Gladstone Capital (NASDAQ:GLAD) Q2 2022 Earnings Conference Call May 4, 2022 8:30 AM ET Company Representatives David Gladstone - Chairman Michael LiCalsi - General Counsel Bob Marcotte - President Nicole Schaltenbrand - Chief Financial Officer Conference Call Participants Robert Dodd - Raymond James Operator Greetings! And welcome to Gladstone Capital, Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A Question-and-answer session will follow the formal pres ...

Gladstone Capital (NASDAQ:GLAD) Q1 2022 Earnings Conference Call February 3, 2022 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer Nicole Schaltenbrand - Chief Financial Officer Bob Marcotte - President Michael Licalsi - General Counsel Conference Call Participants Adrian Day - Adrian Day Asset Management Operator Greetings, and welcome to Gladstone Capital First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. Question-and-answer session w ...

Gladstone Capital (NASDAQ:GLAD) Q4 2021 Results Conference Call November 16, 2021 8:30 AM ET Company Participants David Gladstone - Chief Executive Officer Bob Marcotte - President Nicole Schaltenbrand - Chief Financial Officer Michael Licalsi - General Counsel Conference Call Participants Operator Greetings and welcome to the Gladstone Capital Corporation Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal p ...

Gladstone Capital Corporation (NASDAQ:GLAD) Q3 2021 Results Conference Call August 4, 2021 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel Bob Marcotte - President Nicole Schaltenbrand - CFO Conference Call Participants Operator Hello, and welcome to the Gladstone Capital Third Quarter Earnings Conference Call and Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] A question-and-answer session will follow the formal presentation ...

Financial Data and Key Metrics Changes - For the quarter ending March 31, 2021, total interest income declined slightly to $11.9 million, a decrease of $200,000 or 1.6% compared to the prior quarter, primarily due to a small decline in the weighted average yield [18][19] - Net investment income rose to $6.4 million or $0.195 per share, covering 100% of shareholder distributions, an increase of $100,000 compared to the prior quarter [20] - Net assets from operations increased to $21.3 million or $0.65 per share, compared to $12.3 million or $0.38 per share for the quarter ending December 31, 2020 [21] - NAV rose by 6.6% from $7.61 per share at December 31 to $8.11 per share as of March 31, 2021 [24] Business Line Data and Key Metrics Changes - Originations for the quarter totaled $72 million, including three new proprietary investments, while exits totaled $48 million, resulting in net originations of $24 million [7] - The portfolio's weighted average balance increased slightly by $10.7 million or 2.4% to $454.1 million compared to the previous quarter [18] - The asset mix shifted in favor of first lien loans, which rose to 58% of cost, while second lien exposure declined to 32% [15] Market Data and Key Metrics Changes - The company reported no payment defaults in its one non-accrual investment, which represents 1.5% of the portfolio at fair value, indicating a material uptick in business volumes [14] - The weighted average borrowing costs were reported at 4.6% as of March 31, with total liabilities rising to $233 million [22][24] Company Strategy and Development Direction - The company continues to target leverage in the vicinity of one-to-one debt to equity, with a focus on maintaining a low leverage position to capitalize on middle market investment opportunities [17][30] - The strategy includes investing in midsize private businesses supported by private equity funds, which helps facilitate acquisitions and business growth [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the portfolio's performance, noting that most investments have moved past COVID-related effects, with broad-based asset appreciation [12] - The company anticipates continued net investment portfolio growth driven by elevated levels of refinancing and recapitalization activity in the market [16] - Management highlighted the importance of maintaining a flexible capital position to navigate potential economic changes [30] Other Important Information - The board declared monthly distributions of $0.065 per common share for April, May, and June, resulting in an annual rate of $0.78 per share [25] - An incentive fee reduction was implemented, increasing the hurdle rate from 7% to 8%, which is expected to enhance net earnings available for shareholder distributions [26] Q&A Session Summary Question: Any questions from participants? - No questions were raised during the Q&A session, and the call concluded without further inquiries [33][34][35]

Financial Data and Key Metrics Changes - Total interest income increased by $147,000 or 1.2% to $12.1 million, primarily due to an increase in the average balance of interest-bearing investments [15] - Net investment income for the quarter was $6.3 million, unchanged compared to the prior quarter, equating to $0.195 per share [18] - Net assets from operations rose to $12.3 million or $0.38 per share, compared to $12.2 million or $0.33 per share in the previous quarter [18] - NAV increased by 2.8% from $7.40 per share at the end of the previous quarter to $7.61 per share as of December 31 [23] Business Line Data and Key Metrics Changes - Originations for the quarter totaled approximately $29 million, including two new proprietary investments, while repayments and proceeds totaled $34 million [7] - Interest income rose slightly over the prior quarter, with the portfolio yield remaining relatively unchanged at 10.8% [7][16] - The asset mix shifted slightly in favor of first lien loans, which rose to 51% at cost, while second lien exposure declined to 41% [11] Market Data and Key Metrics Changes - The portfolio has recovered approximately 70% of the unrealized depreciation reported in the March 31, 2020 quarter due to the onset of the COVID pandemic [19] - The only decliners in the portfolio were related to energy sector exposures, which continue to face soft fundamentals [11] Company Strategy and Development Direction - The company intends to continue managing its leverage around a one-to-one debt to equity ratio while enhancing overall net interest income [13][14] - The focus remains on investing in midsized private businesses with strong management, supported by private equity funds seeking experienced partners [29] Management's Comments on Operating Environment and Future Outlook - Management remains cautious regarding any lasting COVID-related financial impacts on new business opportunities and the sustainability of recent growth [14] - The company is in the final stages of closing several new investments, positioning itself well to absorb expected prepayments and grow its investment portfolio [12] Other Important Information - Total assets as of December 31 were $459 million, consisting of $452 million in investments at fair value and $7 million in cash and other assets [20] - The company declared monthly distributions of $0.065 per common share for January, February, and March, resulting in an annual rate of $0.78 per share [24] - The current distribution rate yields approximately 8.2%, which is considered attractive relative to low market yields [25] Q&A Session Summary - No questions were received during the Q&A session, indicating that all relevant information was effectively communicated during the presentation [31][32]