Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $549.10M
• Dividend Yield: 10.72%
• Average Volume (3M): 153.93K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.57
• 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: 142,402
• 30 Day Avg. Volume: 153,929
• 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: 1.97
• Enterprise Value/Revenue: 9.51
• Enterprise Value/Gross Profit: 14.27
• Enterprise Value/Ebitda: 14.74
• 1Y Price Target: $14.25
• Price Target Upside: 1.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $15.00 ▲(7.22% Upside)

Gladstone Investment's strong valuation and positive earnings call sentiment contribute significantly to its score. However, financial performance is hindered by cash flow issues and rising debt levels, which are potential risks. Technical indicators suggest a neutral market position.

Gladstone Investment Business Overview & Revenue Model

Company Description

Gladstone Investment Corporation is business development company, specializes in lower middle market, mature stage, buyouts; refinancing existing debt; senior debt securities such as senior loans, senior term loans, lines of credit, and senior notes; senior subordinated debt securities such as senior subordinated loans and senior subordinated notes; junior subordinated debt securities such as subordinated notes and mezzanine loans; limited liability company interests, and warrants or options. The fund does not invest in start-ups. The fund seeks to invest in manufacturing, consumer products and business/consumer services sector. It seeks to invest in small and mid-sized companies based in the United States. The fund prefers to make debt investments between $5 million and $30 million and equity investments between $10 million and $40 million in companies. The fund seeks to invest in companies with revenue between $20 million and $100 million. The fund invests in companies with EBITDA from $3 million to $20 million. It seeks minority equity ownership and prefers to hold a board seat in its portfolio companies. It also prefers to take majority stake in its portfolio companies. The fund typically holds the investments for seven years and exits via sale or recapitalization, initial public offering, or sale to third party.

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 revenue growth and profitability, with a net profit margin of 64.53%. However, the cash flow situation is concerning, with negative operating and free cash flows, indicating potential liquidity issues. The increasing debt levels also pose a risk if not managed properly.

Income Statement

Gladstone Investment shows strong revenue growth with a 25.99% increase in TTM, indicating robust business expansion. The company maintains high profitability with a net profit margin of 64.53% and an EBIT margin of 64.53% in TTM. However, the gross profit margin has decreased from previous periods, suggesting rising costs or pricing pressures.

Balance Sheet

The company's debt-to-equity ratio of 0.94 in TTM is relatively stable, indicating a balanced approach to leveraging. Return on Equity (ROE) is healthy at 14.87%, reflecting efficient use of equity. However, the increasing debt levels over the years could pose a risk if not managed properly.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in TTM. The free cash flow growth rate is significantly negative, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting that earnings are not translating into cash effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	114.02M	89.88M	103.17M	48.53M	112.23M	53.17M
Gross Profit	75.99M	61.63M	79.05M	32.66M	99.15M	48.73M
EBITDA	73.54M	65.32M	85.31M	35.55M	102.32M	42.45M
Net Income	64.14M	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	-167.61M	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Operating Cash Flow	-167.61M	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Investing Cash Flow	-235.03M	-145.19M	-155.92M	-98.22M	-42.72M	-64.22M
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: 13.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 13.99 is above the 20-day moving average (MA) of 13.88, above the 50-day MA of 13.84, and above the 200-day MA of 13.32, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.26 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 is Neutral, 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
GAIN	70 Outperform	$549.10M	5.56	18.68%	10.72%	-45.46%	134.73%
GLAD	70 Neutral	$427.17M	5.68	16.23%	12.01%	47.88%	-5.08%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CCAP	65 Neutral	$524.42M	11.87	5.98%	13.23%	-7.13%	-56.63%
TCPC	58 Neutral	$469.40M	―	-1.15%	22.98%	-91.81%	78.46%
CION	58 Neutral	$475.03M	―	3.22%	16.34%	-11.01%	-65.56%
PNNT	48 Neutral	$423.77M	30.14	2.89%	14.79%	-35.46%	-67.15%

Gladstone Investment Corporate Events

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.

Gladstone Investment Reports Strong Q1 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 across the United States, particularly in connection with acquisitions, changes in control, and recapitalizations.

Gladstone Investment’s 2025 Annual Meeting Approvals

On August 7, 2025, Gladstone Investment Corporation held its 2025 Annual Meeting of Stockholders, where stockholders approved all proposals presented, including the election of two directors and the ratification of PricewaterhouseCoopers LLP as the independent accounting firm for the fiscal year ending March 31, 2026. These approvals reflect strong shareholder support and are expected to positively influence the company’s governance and financial oversight, reinforcing its position in the financial services industry.

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