Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $553.86M
• Dividend Yield: 10.74%
• Average Volume (3M): 127.74K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.56
• Revenue Growth: -45.46%
• EPS Growth: 134.73%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.11
• Shares Outstanding: 39,646,450
• 10 Day Avg. Volume: 120,276
• 30 Day Avg. Volume: 127,742
• PEG Ratio: -0.27
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 5.46
• P/FCF Ratio: 30.09
• Enterprise Value/Market Cap: 1.96
• Enterprise Value/Revenue: 8.36
• Enterprise Value/Gross Profit: 11.33
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $14.17
• Price Target Upside: 1.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $100.55M

• Rating: 67 Neutral
• Price Target: $14.50 ▲(3.79% Upside)

Gladstone Investment's overall score is driven by strong valuation metrics and a positive earnings call, indicating potential for income and growth. However, technical indicators suggest bearish momentum, and financial performance shows areas for improvement in cash flow management and leverage.

Positive Factors

Strong Asset Growth

The increase in total assets indicates successful investment strategies and portfolio growth, enhancing the company's long-term financial stability and capacity for future investments.

Improved NAV

An increase in NAV reflects a stronger balance sheet and improved asset valuation, supporting shareholder value and potential for sustained distributions.

Increased Total Investment Income

Rising investment income demonstrates effective capital deployment and portfolio management, ensuring robust cash flow and supporting ongoing shareholder distributions.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, which could hinder the company's ability to invest in new opportunities and meet financial obligations without external financing.

Increased Net Expenses

Rising expenses, particularly from incentive fees and interest, could pressure margins and reduce profitability, affecting long-term financial health if not managed.

Competitive M&A Environment

A competitive M&A environment may limit acquisition opportunities and increase costs, potentially impacting growth strategies and portfolio expansion.

Gladstone Investment Business Overview & Revenue Model

Company Description

Gladstone Investment Corporation (GAIN) is a publicly traded business development company (BDC) that primarily invests in small to mid-sized private companies in the United States. Focused on sectors such as manufacturing, services, and consumer products, GAIN provides debt and equity capital to foster growth and development in these businesses. The company aims to generate income through interest, dividends, and capital gains from its investment portfolio while also supporting the operational success of its portfolio companies.

How the Company Makes Money

Gladstone Investment makes money primarily through its investments in private companies, which yield returns in several ways. The company earns interest income from debt investments, typically in the form of loans to its portfolio companies, which are often structured with higher interest rates due to the higher risk associated with small to mid-sized businesses. Additionally, GAIN generates revenue from equity investments, receiving dividends and potential capital gains when portfolio companies grow and either go public or are sold. The company also benefits from management fees associated with its investment operations and may have performance-based fees depending on the success of its investments. Significant partnerships with financial institutions and investment networks can enhance its deal flow and investment opportunities, further contributing to its earnings.

Gladstone Investment Financial Statement Overview

Summary

Gladstone Investment shows strong profitability and a solid return on equity, but faces challenges with increasing leverage and cash flow management. The positive revenue growth is promising, but cash flow issues need addressing for long-term stability.

Income Statement

Gladstone Investment shows strong profitability with a consistent gross profit margin above 60% and a net profit margin that remains robust. The revenue growth rate for the TTM period is positive at 12.33%, indicating a recovery from previous declines. However, the EBIT and EBITDA margins have shown some volatility, which could indicate potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased over time, reaching 0.85 in the TTM period, which suggests rising leverage. However, the return on equity remains healthy at 12.76%, reflecting efficient use of equity. The equity ratio is stable, indicating a balanced approach to financing.

Cash Flow

Cash flow metrics show some concerns, with a significant decline in free cash flow growth rate in the TTM period. The operating cash flow to net income ratio is negative, indicating potential cash flow management issues. However, the free cash flow to net income ratio remains stable at 1.0, suggesting that the company is still generating cash relative to its net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	129.66M	89.88M	103.17M	48.53M	112.23M	53.17M
Gross Profit	95.69M	61.63M	79.05M	32.66M	99.15M	48.73M
EBITDA	102.94M	65.32M	85.31M	35.55M	102.32M	42.45M
Net Income	102.94M	65.32M	85.31M	35.55M	102.32M	42.45M
Balance Sheet
Total Assets	1.14B	1.01B	938.08M	765.64M	740.41M	643.73M
Cash, Cash Equivalents and Short-Term Investments	210.00K	14.30M	2.46M	2.68M	14.19M	2.06M
Total Debt	456.98M	455.71M	398.35M	292.61M	261.35M	243.59M
Total Liabilities	608.60M	507.32M	445.37M	325.90M	294.58M	261.37M
Stockholders Equity	535.84M	499.08M	492.71M	439.74M	445.83M	382.36M
Cash Flow
Free Cash Flow	63.58M	113.92M	85.99M	-4.50M	77.94M	44.81M
Operating Cash Flow	63.58M	113.92M	85.99M	-4.50M	77.94M	44.81M
Investing Cash Flow	-233.59M	-97.62M	-155.92M	-98.22M	-41.34M	-74.54M
Financing Cash Flow	169.58M	-4.37M	69.91M	-6.74M	-24.50M	28.07M

Gladstone Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIN, the sentiment is Positive. The current price of 13.97 is above the 20-day moving average (MA) of 13.82, above the 50-day MA of 13.80, and above the 200-day MA of 13.42, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.46 is Neutral, neither overbought nor oversold. The STOCH value of 92.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAIN.

Gladstone Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLAD	70 Neutral	$479.65M	8.41	11.86%	10.76%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	67 Neutral	$553.86M	5.61	18.68%	10.74%	-45.46%	134.73%
CCAP	66 Neutral	$530.84M	14.77	4.92%	13.61%	-20.18%	-61.90%
TCPC	58 Neutral	$501.41M	―	-1.15%	22.98%	-91.81%	78.46%
CION	58 Neutral	$519.81M	19.89	3.22%	16.34%	-11.01%	-65.56%
PNNT	48 Neutral	$395.69M	12.09	6.83%	15.84%	-3.09%	200.66%

Gladstone Investment Corporate Events

Gladstone Investment to Redeem 8% Notes by December

On November 14, 2025, Gladstone Investment Corporation announced its decision to redeem all of its outstanding 8.00% notes due 2028, amounting to $74,750,000, on December 16, 2025. This move will result in the delisting of these notes from the Nasdaq Global Select Market, potentially impacting the company’s financial structure and market positioning.

The most recent analyst rating on (GAIN) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Gladstone Investment stock, see the GAIN Stock Forecast page.

Gladstone Investment Announces $60M Notes Offering

On November 6, 2025, Gladstone Investment Corporation announced the pricing of a registered direct offering of $60 million in 6.875% Notes due 2028, with the offering closing on November 10, 2025. The proceeds from this offering are intended to repay part of the company’s credit facility, fund new investments, and support other corporate purposes, potentially impacting its investment strategy and financial positioning.

The most recent analyst rating on (GAIN) stock is a Hold with a $14.00 price target. To see the full list of analyst forecasts on Gladstone Investment stock, see the GAIN Stock Forecast page.

Gladstone Investment Reports Strong Q2 Performance

Gladstone Investment Corporation is a publicly traded business development company that focuses on making secured debt and equity investments in lower middle market businesses in the United States, particularly during acquisitions, changes in control, and recapitalizations.

Gladstone Investment’s Earnings Call Highlights Growth Amid Challenges

Gladstone Investment’s recent earnings call painted a picture of robust asset growth and increased investment income, tempered by challenges such as decreased yields and rising expenses. The call also highlighted the restructuring of J.R. Hobbs, which, despite resulting in a significant realized loss, presents future income opportunities for the company.

Gladstone Investment’s Earnings Call: Balancing Optimism and Challenges

Gladstone Investment’s recent earnings call painted a balanced picture of the company’s current standing and future prospects. The sentiment expressed during the call was a mix of optimism and caution. While the company showcased significant investments and a robust liquidity position, challenges such as a decrease in total investment income, a decline in NAV, and economic uncertainties due to tariffs were also highlighted. This balanced sentiment reflects both positive achievements and notable challenges faced by the company.