Gladstone Investment Corp (GAIN)
NASDAQ:GAIN
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Gladstone Investment
(NASDAQ:GAIN)
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Rating:64Neutral
Price Target:
$18.00
▲(12.92% Upside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by weak and volatile cash generation (negative TTM operating cash flow/free cash flow) alongside declining TTM revenue, despite strong reported profitability. Offsetting this are an attractive valuation (very low P/E and high yield) and a generally constructive technical setup (price above key moving averages). The latest earnings call and recent events are broadly supportive (NAV improvement, balance-sheet actions, planned leadership transition) but still reflect near-term earnings/expense volatility and some credit risk from non-accruals.
Positive Factors
Distributable income and stable payout
A large distributable income base ($108.7M) and a maintained monthly $0.08/share distribution, plus a track record of supplemental payouts, provide a durable cash-return framework. This supports shareholder income and makes dividend continuity more resilient to temporary earnings swings.
Negative Factors
Weak cash generation
A sharp swing to negative TTM operating and free cash flow (-$81.8M) undermines internal funding capacity, forcing greater reliance on external financing or realized gains to cover distributions and new investments. This reduces financial flexibility and raises refinancing sensitivity.
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Positive Factors
Negative Factors
Distributable income and stable payout
A large distributable income base ($108.7M) and a maintained monthly $0.08/share distribution, plus a track record of supplemental payouts, provide a durable cash-return framework. This supports shareholder income and makes dividend continuity more resilient to temporary earnings swings.
Read all positive factors
Gladstone Investment (GAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$669.81M
Dividend Yield11.02%
Average Volume (3M)401.35K
Price to Earnings (P/E)2.1
Beta (1Y)0.69
Revenue Growth-19.47%
EPS Growth61.85%
CountryUS
Employees70
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.16
Shares Outstanding39,821,968
10 Day Avg. Volume310,474
30 Day Avg. Volume401,347
Financial Highlights & Ratios
PEG Ratio-0.27
Price to Book (P/B)0.98
Price to Sales (P/S)5.46
P/FCF Ratio4.31
Enterprise Value/Market Cap1.85
Enterprise Value/Revenue11.01
Enterprise Value/Gross Profit15.38
Enterprise Value/Ebitda21.40
Forecast
1Y Price Target
$14.83Price Target Upside-6.94% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.89
Revenue Forecast (FY)$106.96M
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:Feb 03, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but stable picture: meaningful quarter-over-quarter NAV and asset growth, preserved monthly distribution, proactive balance sheet moves (debt refinancing, facility expansion), and yield-protection via floors are clear positives. Offsetting these are a sizable quarterly net investment loss driven by higher incentive fee accruals, a notable increase in operating expenses, a decline in adjusted NII per share, reduced spillover available for cash distributions, and three non-accruals that remain under management attention. Management’s tone was constructive about pipeline and liquidity, suggesting the negatives are being actively managed, but the financials show near-term earnings/expense volatility.Positive Updates
NAV and Portfolio Appreciation
Net asset value increased to $14.95 from $13.53 quarter-over-quarter, a +10.5% increase driven by $1.77 per share of net unrealized appreciation and $0.09 per share of net realized gains; aggregate portfolio valuations increased by $7.2 million.
Negative Updates
Quarterly Net Investment Loss and Expense Increase
Net investment loss of $6.5 million in the quarter versus net investment income of $4.3 million in the prior quarter (swing of ~$10.8M); net expenses rose to $31.6 million from $21.0 million QoQ (+50.5%), primarily due to a $9.9 million increase in accruals for capital gains-based incentive fees.
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Q3-2026 Updates
Positive
Negative
NAV and Portfolio Appreciation
Net asset value increased to $14.95 from $13.53 quarter-over-quarter, a +10.5% increase driven by $1.77 per share of net unrealized appreciation and $0.09 per share of net realized gains; aggregate portfolio valuations increased by $7.2 million.
Read all positive updates
Company Guidance
Management guided that Gladstone finished the quarter (12/31/2025) with adjusted NII of $0.21 per share ($8.2M), total investment income of $25.1M, total assets of about $1.2B (up ~$92M QoQ) and a weighted average principal balance of interest‑bearing investments of $699M (up $30M); portfolio yield modestly declined from 13.2% to 12.9% (‑24 bps) but the weighted average interest‑rate floor (excluding non‑accruals and revolvers) was 12.1% with over half the debt at floors and new debt underwritten with 13–13.5% floors. To date in FY2026 they’ve invested $163M across four new buyouts (29 operating companies; 66 buyouts since inception totaling ~ $2.2B with 33 exits generating ~$353M net realized gains and $45M other exit income), maintained the monthly distribution of $0.08/share ($0.96 annual), reported NAV of $14.95 (from $13.53) driven by $1.77/share net unrealized appreciation and $0.09/share net realized gains, and showed $108.7M total distributable income ($2.73/share) with estimated spillover of ~$22.9M ($0.58/share). They also reported net expenses of $31.6M (up from $21M, driven by a $9.9M accrual of capital‑gains‑based incentive fees), a net investment loss of $6.5M (vs $4.3M income prior), three non‑accruals representing 3.8% of cost (1.5% of fair value), an asset coverage ratio of 201%, a $300M credit facility (expanded to include a $30M City National commitment), redemption of $74.8M of 8% notes and issuance of $60M 6.875% notes (reducing interest burden on ~$75M of debt by ~110 bps), and a “healthy” M&A pipeline with supplemental distributions expected to be paid from realized capital gains.Gladstone Investment Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
39
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 112.66M | 89.88M | 103.17M | 48.53M | 112.23M | 53.17M |
| Gross Profit | 80.66M | 61.63M | 79.05M | 32.66M | 99.15M | 48.73M |
| EBITDA | 57.95M | 65.32M | 85.31M | 35.55M | 102.32M | 42.45M |
| Net Income | 130.35M | 65.32M | 85.31M | 35.55M | 102.32M | 42.45M |
Balance Sheet | ||||||
| Total Assets | 1.24B | 1.01B | 938.08M | 765.64M | 740.41M | 643.73M |
| Cash, Cash Equivalents and Short-Term Investments | 1.38M | 14.30M | 2.46M | 2.68M | 14.19M | 2.06M |
| Total Debt | 571.84M | 455.71M | 398.35M | 292.61M | 261.35M | 243.59M |
| Total Liabilities | 641.21M | 507.32M | 445.37M | 325.90M | 294.58M | 261.37M |
| Stockholders Equity | 595.41M | 499.08M | 492.71M | 439.74M | 445.83M | 382.36M |
Cash Flow | ||||||
| Free Cash Flow | -81.82M | 113.92M | 85.99M | -4.50M | 77.94M | 44.81M |
| Operating Cash Flow | -81.82M | 113.92M | 85.99M | -4.50M | 77.94M | 44.81M |
| Investing Cash Flow | -91.76M | -97.62M | -155.92M | -98.22M | -41.34M | -74.54M |
| Financing Cash Flow | 5.49M | -4.37M | 69.91M | -6.74M | -24.50M | 28.07M |
Gladstone Investment Technical Analysis
Positive
15.94
Price Trends
14.12
Positive
13.88
Positive
13.67
Positive
Market Momentum
0.41
Negative
77.51
Negative
95.25
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 15.94 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 14.12, and above the 200-day MA of 13.67, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 77.51 is Negative, neither overbought nor oversold. The STOCH value of 95.25 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $669.81M | 2.10 | 24.70% | 11.02% | -19.47% | 61.85% | |
58 Neutral | $311.46M | 10.64 | 5.42% | 16.61% | 84.11% | 56.99% | |
58 Neutral | $514.98M | 15.08 | 4.81% | 13.20% | -19.84% | -53.12% | |
56 Neutral | $435.14M | 19.71 | 7.50% | 9.31% | -43.48% | -65.43% | |
53 Neutral | $369.77M | -5.23 | -12.44% | 21.13% | -139.70% | -46.02% | |
53 Neutral | $402.96M | -24.53 | -2.75% | 15.77% | -10.20% | -162.66% |
* Financial Sector Average
GAIN
Gladstone Investment
16.82
4.41
35.52%
GLAD
Gladstone Capital
19.26
-3.90
-16.84%
PNNT
Pennantpark Investment
4.77
-0.70
-12.77%
TCPC
BlackRock TCP Capital
4.39
-1.17
-21.10%
CCAP
Crescent Capital BDC
13.93
0.08
0.55%
CION
CION Investment Corp
7.98
-0.37
-4.47%
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...
Business Operations and StrategyPrivate Placements and Financing
Gladstone Investment Prices $100 Million Notes Offering
Positive
Feb 11, 2026
On February 10, 2026, Gladstone Investment Corporation entered into an underwriting agreement with Gladstone Management Corporation, Gladstone Administration, LLC and Oppenheimer Co. Inc., as representative of the underwriters, for the issuance a...
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.