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Gladstone Investment
(NASDAQ:GAIN)
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Rating:72Outperform
Price Target:
$18.50
â–²(15.99% Upside)
Action:Upgraded
Date:08/07/26
The score is driven primarily by attractive valuation (very low P/E and high yield) and supportive technical momentum, alongside a generally positive earnings-call outlook on distributions and portfolio/NAV growth. These positives are tempered by the key fundamental risk: recent negative operating/free cash flow and softer revenue momentum, which reduce confidence in the durability of reported profitability.
Positive Factors
Portfolio fair value & NAV growth
Sustained portfolio revaluation and rising NAV reflect durable appreciation across holdings and improved valuation multiples. Higher NAV enhances the firm's equity cushion, supports future distributions or share-level capital actions, and provides a stronger base for realizing gains over the medium term.
Negative Factors
Negative operating and free cash flow
Recent cash burn versus accounting earnings is a durable risk: weaker cash conversion limits the company's ability to fund recurring distributions and new investments from internal cash, increasing reliance on realizations or debt and reducing financial flexibility during drawdowns or slower exit markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Portfolio fair value & NAV growth
Sustained portfolio revaluation and rising NAV reflect durable appreciation across holdings and improved valuation multiples. Higher NAV enhances the firm's equity cushion, supports future distributions or share-level capital actions, and provides a stronger base for realizing gains over the medium term.
Read all positive factors
Gladstone Investment (GAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$643.12M
Dividend Yield5.94%
Average Volume (3M)197.69K
Price to Earnings (P/E)3.4
Beta (1Y)0.69
Revenue Growth-54.43%
EPS Growth163.70%
CountryUS
Employees78
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.48
Shares Outstanding39,821,968
10 Day Avg. Volume178,312
30 Day Avg. Volume197,691
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.75Price Target Upside5.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.87
Revenue Forecast (FY)$105.60M
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
Gladstone Investment makes money primarily from income and gains generated by its investment portfolio in private lower middle-market companies. Key revenue and earnings drivers include: (1) Interest income on debt investments: GAIN provides loans...
Gladstone Investment Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 03, 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
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 109.20M | 71.48M | 89.88M | 103.17M | 48.53M | 112.23M |
| Gross Profit | 48.22M | 13.85M | 61.63M | 79.05M | 32.66M | 99.15M |
| EBITDA | 115.18M | 225.77M | 65.32M | 85.31M | 47.77M | 102.32M |
| Net Income | 176.98M | 184.75M | 65.32M | 85.31M | 35.55M | 102.32M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 1.32B | 1.01B | 938.08M | 765.64M | 740.41M |
| Cash, Cash Equivalents and Short-Term Investments | 1.60M | 1.16M | 14.30M | 2.46M | 2.68M | 14.19M |
| Total Debt | 413.24M | 564.47M | 455.71M | 398.35M | 292.61M | 261.35M |
| Total Liabilities | 656.20M | 654.62M | 507.32M | 445.37M | 325.90M | 294.58M |
| Stockholders Equity | 646.81M | 668.23M | 499.08M | 492.71M | 439.74M | 445.83M |
Cash Flow | ||||||
| Free Cash Flow | -101.84M | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Operating Cash Flow | -101.84M | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Investing Cash Flow | -109.36M | 0.00 | -97.62M | -155.92M | -98.22M | -41.34M |
| Financing Cash Flow | 41.60M | 88.84M | -4.37M | 69.91M | -6.74M | -24.50M |
Gladstone Investment Technical Analysis
Positive
15.95
Price Trends
15.75
Positive
15.48
Positive
14.42
Positive
Market Momentum
0.23
Negative
61.36
Neutral
80.69
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 15.95 is below the 20-day moving average (MA) of 16.39, above the 50-day MA of 15.75, and above the 200-day MA of 14.42, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 80.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $643.12M | 3.44 | 34.04% | 6.02% | -54.43% | 163.70% | |
71 Outperform | $402.73M | 26.66 | 2.14% | 15.50% | -18.56% | -69.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $421.81M | 9.93 | 9.17% | 9.39% | -46.94% | -51.89% | |
60 Neutral | $272.68M | -2.20 | -19.08% | 27.85% | -153.69% | -168.78% | |
53 Neutral | $214.82M | 15.70 | 0.01% | 29.18% | 122.81% | 43.00% | |
52 Neutral | $296.74M | -149.00 | -0.13% | 23.83% | -11.90% | 84.61% |
* Financial Sector Average
GAIN
Gladstone Investment
16.86
3.77
28.78%
GLAD
Gladstone Capital
19.51
-5.11
-20.75%
PNNT
Pennantpark Investment
3.62
-2.37
-39.56%
TCPC
BlackRock TCP Capital
3.90
-1.88
-32.55%
CCAP
Crescent Capital BDC
11.77
-0.70
-5.64%
CION
CION Investment Corp
7.28
-1.47
-16.84%
Gladstone Investment Corporate Events
Shareholder Meetings
Gladstone Investment Adjourns 2026 Virtual Shareholder Meeting
Negative
Aug 6, 2026
On August 6, 2026, Gladstone Investment Corporation convened its 2026 Annual Meeting of Stockholders virtually but was forced to adjourn after failing to secure a quorum of common shares present or represented by proxy. As a result, no business wa...
Business Operations and StrategyM&A Transactions
Gladstone Investment Realizes Exit with SFEG Sale
Positive
Jul 8, 2026
On July 7, 2026, Gladstone Investment’s portfolio company SFEG Holdings Inc. agreed to sell Specialized Fabrication Equipment Group LLC to Enerpac Tool Group Corp., a global provider of industrial tools and services. The deal is expected to ...
Business Operations and StrategyPrivate Placements and Financing
Gladstone Investment Expands and Extends Corporate Credit Facility
Positive
Jun 11, 2026
On June 10, 2026, Gladstone Investment amended its Fifth Amended and Restated Credit Agreement, extending the revolving period of its corporate credit facility to June 8, 2029 and pushing final maturity to two years after that date. The amendment ...
Business Operations and StrategyExecutive/Board Changes
Gladstone Investment Adds Independent Director to Board
Positive
Jun 2, 2026
On June 1, 2026, Gladstone Investment Corporation expanded its board from seven to eight members and elected George “Chip” Stelljes, III as an independent director in the 2028 class, with his term set to run through the 2028 annual mee...
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.