Gladstone Investment (GAIN)
NASDAQ:GAIN
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Gladstone Investment
(NASDAQ:GAIN)
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Rating:59Neutral
Price Target:
$17.50
â–²(9.79% Upside)
Action:Reiterated
Date:05/13/26
The score is held back mainly by weaker and more volatile recent financial performance, including the latest period’s zero reported earnings and significant cash outflow. Offsetting that, technical trends are positive and the earnings call supported confidence in distributions alongside strong NAV/portfolio value growth and conservative leverage. A high dividend yield helps valuation, but the listed P/E of 0.000 reduces earnings-based valuation clarity.
Positive Factors
Portfolio Fair Value & NAV Growth
Sustained valuation gains and rising NAV materially strengthen the firm's capital buffer and loss-absorption capacity. Higher NAV provides durable support for distributions, improves borrowing headroom and signals successful portfolio performance that can compound returns over multiple quarters.
Negative Factors
Volatile Cash Generation
Intermittent and recently negative cash generation weakens financial flexibility and increases reliance on financing or asset realizations. Persistent cash outflows can constrain reinvestment, pressure coverage of distributions over multiple quarters, and elevate refinancing or liquidity risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio Fair Value & NAV Growth
Sustained valuation gains and rising NAV materially strengthen the firm's capital buffer and loss-absorption capacity. Higher NAV provides durable support for distributions, improves borrowing headroom and signals successful portfolio performance that can compound returns over multiple quarters.
Read all positive factors
Gladstone Investment (GAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$633.17M
Dividend Yield11.02%
Average Volume (3M)430.42K
Price to Earnings (P/E)3.0
Beta (1Y)0.69
Revenue Growth-54.43%
EPS Growth163.70%
CountryUS
Employees70
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.69
Shares Outstanding39,821,968
10 Day Avg. Volume545,154
30 Day Avg. Volume430,415
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.82
Price to Sales (P/S)7.69
P/FCF Ratio-5.41
Enterprise Value/Market Cap1.89
Enterprise Value/Revenue10.66
Enterprise Value/Gross Profit18.41
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$16.75Price Target Upside5.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.89
Revenue Forecast (FY)$108.08M
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 not...
How the Company Makes Money
GAIN makes money primarily from investment income generated by its portfolio. The core revenue stream is interest income on debt investments it makes to portfolio companies (including first-lien, second-lien, and/or subordinated/secured loans depe...
Gladstone Investment Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and balance-sheet picture: portfolio fair value and NAV showed strong growth (portfolio +34% YoY; NAV +12.2% QoQ), investment income grew for a fifth consecutive year, monthly distributions were maintained, and liquidity and leverage metrics remain conservative. Offsetting items include a quarterly net investment loss, higher operating and incentive-related expenses, modest yield compression, three nonaccruals (small in fair-value terms), a slower pace of new investments versus the prior year, and refinancing at a materially higher coupon. Management emphasized protectiveness of yields via rate floors, an active pipeline, and confidence in the distribution policy, which together with the large valuation gains and strong liquidity weigh heavily positive.Positive Updates
Significant Portfolio Fair Value Growth
Total fair value of the investment portfolio increased to $1.3 billion as of 3/31/26, a 34% increase year-over-year from $979 million, driven by 4 new buyout investments and appreciation across existing holdings.
Negative Updates
Quarterly Net Investment Loss and Rising Expenses
Net investment loss for the quarter was $10.6 million (versus $6.5 million prior quarter). Net expenses rose to $35.8 million from $31.6 million (+$4.2 million, ~13.3%), primarily due to a $3.8 million increase in capital gains-based incentive fees and a $0.4 million increase in base management fees tied to unrealized appreciation.
Read all updates
Q4-2026 Updates
Positive
Negative
Significant Portfolio Fair Value Growth
Total fair value of the investment portfolio increased to $1.3 billion as of 3/31/26, a 34% increase year-over-year from $979 million, driven by 4 new buyout investments and appreciation across existing holdings.
Read all positive updates
Company Guidance
Management guided that it expects continued strong earnings and distributions over the next year while remaining cautious on the macro environment, reaffirming the $0.08 monthly common distribution ($0.96 annual) and noting FY‑26 supplemental distributions of $0.54 per share; spillover stood at $21.3 million ($0.53/share), which covers roughly six months of the $0.08 monthly payout. Key metrics underpinning that guidance include a portfolio fair value of $1.3 billion as of 3/31/26 (up 34% from $979 million), NAV of $16.78/share (vs. $14.95 last quarter), FY adjusted NII of $0.88/share, total FY investment income of $99.1 million (vs. $93.7M prior year), a weighted average interest‑bearing principal of $672 million (up ~$70M), portfolio yield down from 13.9% to 13.3% (a 63 bp decline vs. an 82 bp SOFR decline), a quarterly yield of 12.9%, an excluding‑nonaccrual weighted average interest‑rate floor of 12.1% (with new debt underwritten at 13.5%–14% and >50% of debt protected by floors), and active liquidity/leverage metrics including issuance of $100M of 7.125% 5‑year notes, an asset coverage ratio of 214% and debt/equity of 0.84x. They noted portfolio activity of 4 new buyouts totaling ~$163M in FY‑26 (vs. $221M prior year), three companies on nonaccrual (3.8% of portfolio at cost, 0.7% at fair value), total distributable income of $181.5M ($4.56/share), and a pipeline of potential buyouts and accretive add‑on opportunities that could support higher adjusted NII and future supplemental distributions as gains are realized.Gladstone Investment Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
39
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 71.48M | 89.88M | 103.17M | 48.53M | 112.23M |
| Gross Profit | 13.85M | 61.63M | 79.05M | 32.66M | 99.15M |
| EBITDA | 225.77M | 65.32M | 85.31M | 35.55M | 102.32M |
| Net Income | 184.75M | 65.32M | 85.31M | 35.55M | 102.32M |
Balance Sheet | |||||
| Total Assets | 1.32B | 1.01B | 938.08M | 765.64M | 740.41M |
| Cash, Cash Equivalents and Short-Term Investments | 1.13M | 14.30M | 2.46M | 2.68M | 14.19M |
| Total Debt | 564.47M | 455.71M | 398.35M | 292.61M | 261.35M |
| Total Liabilities | 654.62M | 507.32M | 445.37M | 325.90M | 294.58M |
| Stockholders Equity | 668.23M | 499.08M | 492.71M | 439.74M | 445.83M |
Cash Flow | |||||
| Free Cash Flow | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Operating Cash Flow | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Investing Cash Flow | -143.72M | -97.62M | -155.92M | -98.22M | -41.34M |
| Financing Cash Flow | 88.84M | -4.37M | 69.91M | -6.74M | -24.50M |
Gladstone Investment Technical Analysis
Neutral
15.94
Price Trends
15.34
Positive
14.46
Positive
13.91
Positive
Market Momentum
0.20
Positive
48.28
Neutral
63.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAIN, the sentiment is Neutral. The current price of 15.94 is below the 20-day moving average (MA) of 16.40, above the 50-day MA of 15.34, and above the 200-day MA of 13.91, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 48.28 is Neutral, neither overbought nor oversold. The STOCH value of 63.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GAIN.
Gladstone Investment Risk Analysis
Gladstone Investment disclosed 12 risk factors in its most recent earnings report. Gladstone Investment reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gladstone Investment Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $428.14M | 6.11 | 9.10% | 9.31% | -46.94% | -51.89% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $633.17M | 2.98 | 34.04% | 11.02% | -54.43% | 163.70% | |
57 Neutral | $418.94M | -7.23 | 2.14% | 13.20% | -18.56% | -69.62% | |
54 Neutral | $312.96M | -4.67 | -19.08% | 21.13% | -153.69% | -168.78% | |
52 Neutral | $326.12M | -3.77 | -0.13% | 15.77% | -11.90% | 84.61% | |
50 Neutral | $248.13M | -30.83 | 0.01% | 16.61% | 122.81% | 43.00% |
* Financial Sector Average
GAIN
Gladstone Investment
15.90
2.66
20.12%
GLAD
Gladstone Capital
18.95
-4.88
-20.48%
PNNT
Pennantpark Investment
3.80
-1.78
-31.90%
TCPC
BlackRock TCP Capital
3.73
-2.74
-42.38%
CCAP
Crescent Capital BDC
11.37
-2.17
-16.01%
CION
CION Investment Corp
6.55
-1.50
-18.67%
Gladstone Investment Corporate Events
Business Operations and StrategyExecutive/Board Changes
Gladstone Investment announces leadership transition and governance succession
Positive
Mar 23, 2026
On March 20, 2026, founder David Gladstone stepped down as CEO of Gladstone Investment Corporation, though he remains chairman, investment committee member and head of its affiliated adviser. The board simultaneously elevated longtime president Da...
Business Operations and StrategyPrivate Placements and Financing
Gladstone Investment Issues $115 Million in Unsecured Notes
Positive
Feb 18, 2026
Gladstone Investment Corporation has issued up to $115 million of 7.125% unsecured notes due May 1, 2031, under a supplemental indenture executed with UMB Bank on February 18, 2026. The notes, which closed the same day, rank pari passu with the co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.