Gladstone Investment (GAIN) AI Stock Analysis

• Market Cap: $552.65M
• Dividend Yield: 10.47%
• Average Volume (3M): 132.18K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.60
• Revenue Growth: 33.75%
• EPS Growth: 6.20%
• Country: US
• Employees: 70
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 0.25
• Shares Outstanding: 38,219,230
• 10 Day Avg. Volume: 112,425
• 30 Day Avg. Volume: 132,181
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.88
• Enterprise Value/Revenue: 9.18
• Enterprise Value/Gross Profit: 11.88
• Enterprise Value/Ebitda: 11.68
• 1Y Price Target: $15.00
• Price Target Upside: 4.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $16.00 ▲(11.65% Upside)

Gladstone Investment's overall stock score is driven by its strong valuation and positive technical indicators. While financial performance shows robust profitability, cash flow issues and increasing debt levels are concerns. The earnings call and corporate events further support a positive outlook, despite some risks.

Gladstone Investment Business Overview & Revenue Model

Company Description

Gladstone Investment Corporation (GAIN) is a publicly traded business development company that primarily invests in lower middle-market companies in the United States. The company focuses on providing debt and equity capital to privately held businesses, assisting them in various stages of growth. With a diversified portfolio, Gladstone Investment targets sectors such as manufacturing, consumer products, and services, aiming to support companies with stable cash flows and strong market positions.

How the Company Makes Money

Gladstone Investment Corporation generates revenue through interest income from its debt investments and capital gains from its equity investments. The company primarily invests in secured first lien loans, second lien loans, and equity securities, targeting companies with strong management teams and growth potential. Additionally, GAIN may realize capital gains by exiting its equity investments when market conditions are favorable. The company also benefits from dividend income from its equity holdings. Significant partnerships with portfolio companies contribute to its earnings by enhancing the value of its investments through strategic guidance and operational support. Gladstone Investment's ability to effectively manage and grow its investment portfolio is crucial to maintaining its revenue streams.

Gladstone Investment Financial Statement Overview

Summary

Gladstone Investment demonstrates strong profitability and sustained revenue growth over the long term, which are positive indicators. However, the recent decrease in revenue and the increase in leverage highlight areas of concern. Cash flow management appears inconsistent, with fluctuations that could affect operational efficiency. Overall, the company is on a solid financial footing but needs to address leverage and cash flow stability to enhance financial resilience.

Income Statement

Gladstone Investment has shown strong growth with a significant increase in total revenue from 2020 to 2025. The gross profit margin remains solid, reflecting effective cost management. However, the decline in total revenue between 2024 and 2025 suggests potential volatility. The consistent profitability, indicated by positive EBIT and net income, and high net profit margins are strong points. Yet, the revenue growth rate has fluctuated, indicating potential instability in revenue streams.

Balance Sheet

The company's balance sheet reflects a stable equity position with an increasing trend in stockholders' equity over the years. However, the debt-to-equity ratio has increased, highlighting a rise in leverage which could pose risks if not managed carefully. The equity ratio is stable, implying a balanced approach to financing, but the increasing debt levels require monitoring to avoid potential over-leverage.

Cash Flow

Cash flow analysis shows a mixed picture, with fluctuations in operating cash flow and free cash flow over the years. The transition from negative to positive free cash flow in recent years is encouraging, but the inconsistency points to potential cash flow management issues. The operating cash flow to net income ratio indicates that the company is generating sufficient cash, but the variability suggests some operational cash challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	113.24M	89.88M	103.17M	48.53M	112.23M	53.17M
Gross Profit	87.57M	61.63M	79.05M	32.66M	99.15M	48.73M
EBITDA	89.03M	65.32M	85.31M	35.55M	102.32M	42.45M
Net Income	79.62M	65.32M	85.31M	35.55M	102.32M	42.45M
Balance Sheet
Total Assets	1.05B	1.01B	938.08M	765.64M	740.41M	643.73M
Cash, Cash Equivalents and Short-Term Investments	5.36M	14.30M	2.46M	2.68M	14.19M	2.06M
Total Debt	456.36M	455.71M	398.35M	292.61M	261.35M	243.59M
Total Liabilities	568.61M	507.32M	445.37M	325.90M	294.58M	261.37M
Stockholders Equity	485.30M	499.08M	492.71M	439.74M	445.83M	382.36M
Cash Flow
Free Cash Flow	-43.79M	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Operating Cash Flow	-43.79M	16.31M	-69.94M	-4.50M	36.60M	-29.73M
Investing Cash Flow	-139.48M	0.00	-155.92M	-98.22M	-42.72M	-64.22M
Financing Cash Flow	42.15M	-4.37M	69.91M	-6.74M	-24.50M	28.07M

Gladstone Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.33
• 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 14.33 is above the 20-day moving average (MA) of 14.09, above the 50-day MA of 14.03, and above the 200-day MA of 13.04, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.28 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
GAIN	73 Outperform	$552.65M	6.68	16.54%	10.47%	33.75%	6.20%
Sector *	73 Outperform	16.56B	18.78	14.14%	3.74%	11.68%	26.47%
GLAD	70 Neutral	$608.49M	8.09	16.23%	8.82%	47.88%	-5.08%
CCAP	61 Neutral	$564.82M	12.79	5.98%	12.73%	-1.88%	-52.39%
CION	58 Neutral	$553.16M	15.47	-1.27%	14.50%	-11.83%	-108.11%
PSBD	53 Neutral	$446.55M	24.75	3.46%	12.79%	0.36%	-80.23%
PNNT	48 Neutral	$480.58M	34.18	2.89%	13.46%	-35.46%	-67.15%

Gladstone Investment Corporate Events

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.

Gladstone Investment Declares Monthly Cash Distributions

On July 10, 2025, Gladstone Investment Corporation announced that its board of directors declared monthly cash distributions of $0.08 per share for its common stockholders for July, August, and September 2025. Additionally, the company plans to report its earnings for the first fiscal quarter ended June 30, 2025, on August 12, 2025, followed by a conference call on August 13, 2025, to discuss the results. This announcement highlights the company’s ongoing commitment to providing returns to its shareholders and maintaining transparency with its financial performance.

The most recent analyst rating on (GAIN) stock is a Buy with a $14.50 price target. To see the full list of analyst forecasts on Gladstone Investment stock, see the GAIN Stock Forecast page.

Gladstone Investment Updates Sales Agreements with M&T Securities

On June 2, 2025, Gladstone Investment Corporation announced amendments to its sales agreements with several sales agents, including the addition of M&T Securities, Inc. as a new sales agent. These agreements allow for the issuance of up to $75 million of common stock, with M&T acting as a sales agent under mutually agreed terms and earning a commission of up to 2.0% on sales, while also being indemnified against certain liabilities.

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.