Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $550.29M
• Dividend Yield: 10.81%
• Average Volume (3M): 122.55K
• 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: 138,535
• 30 Day Avg. Volume: 122,554
• 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: 8.36
• Enterprise Value/Gross Profit: 11.33
• Enterprise Value/Ebitda: 10.53
• 1Y Price Target: $14.00
• Price Target Upside: 0.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $100.55M

• Rating: 67 Neutral
• Price Target: $14.50 ▲(4.47% 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 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 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: Neutral
• Last Price: 13.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.88 is below the 20-day moving average (MA) of 13.94, above the 50-day MA of 13.86, and above the 200-day MA of 13.53, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.41 is Neutral, neither overbought nor oversold. The STOCH value of 53.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$466.32M	8.18	11.86%	11.07%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GAIN	67 Neutral	$550.29M	5.57	18.68%	10.81%	-45.46%	134.73%
CCAP	66 Neutral	$541.94M	15.08	4.92%	12.97%	-20.18%	-61.90%
PNNT	59 Neutral	$381.98M	11.67	6.83%	16.41%	-3.09%	200.66%
TCPC	58 Neutral	$458.99M	-50.70	-1.15%	20.70%	-91.81%	78.46%
CION	58 Neutral	$500.17M	19.13	3.22%	15.39%	-11.01%	-65.56%

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.

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.