Gladstone Capital Corp (GLAD)
NASDAQ:GLAD
Want to see GLAD full AI Analyst Report?
Top Page
Gladstone Capital
(NASDAQ:GLAD)
Select Model
Select Model
Rating:56Neutral
Price Target:
$20.00
â–²(4.06% Upside)
Action:ReiteratedDate:03/23/26
The score is held back mainly by weak/volatile cash flow and bearish technical trends (price below key moving averages with negative MACD). These are partially offset by very strong reported profitability, a high dividend yield, and a generally stable earnings-call outlook supported by liquidity and pipeline commentary, though elevated leverage and credit marks remain notable risks.
Positive Factors
High-yield secured lending
GLAD’s core model centers on secured, predominantly first‑lien loans earning a ~12.2% average yield and produced meaningful interest income. That contractual, high-yield loan profile supports durable net investment income and dividend capacity versus riskier unsecured lending.
Negative Factors
Volatile and weak cash generation
GLAD’s operating and free cash flow are inconsistent, with sizable TTM negatives despite a positive FY2025. For a dividend-focused BDC, erratic cash generation forces reliance on revolver draws, asset sales, or market financing, increasing structural funding and dividend sustainability risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High-yield secured lending
GLAD’s core model centers on secured, predominantly first‑lien loans earning a ~12.2% average yield and produced meaningful interest income. That contractual, high-yield loan profile supports durable net investment income and dividend capacity versus riskier unsecured lending.
Read all positive factors
Gladstone Capital (GLAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$435.14M
Dividend Yield9.31%
Average Volume (3M)236.75K
Price to Earnings (P/E)19.7
Beta (1Y)0.83
Revenue Growth-43.48%
EPS Growth-65.43%
CountryUS
Employees73
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.50
Shares Outstanding22,593,070
10 Day Avg. Volume228,701
30 Day Avg. Volume236,746
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)1.01
Price to Sales (P/S)3.38
P/FCF Ratio11.21
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue14.29
Enterprise Value/Gross Profit22.38
Enterprise Value/Ebitda22.69
Forecast
1Y Price Target
$21.67Price Target Upside12.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)1.94
Revenue Forecast (FY)$100.56M
Gladstone Capital Business Overview & Revenue Model
Company Description
Gladstone Capital Corporation is a business development company specializing in lower middle market, growth capital, add on acquisitions, change of control, buy & build strategies, debt refinancing, debt investments in senior term loans, revolving...
How the Company Makes Money
Gladstone Capital makes money primarily from investment income generated by its portfolio of loans and, secondarily, from gains and other income related to equity positions. The core revenue stream is interest income earned on debt investments—typ...
Gladstone Capital Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presented a number of tangible positives: solid quarterly fundings and net originations, a robust late-stage pipeline (> $100M), improved liquidity ($150M+ available on a $365M revolver), modest growth in interest income, an $11.3M net investment income result, and management actions to reduce funding costs and align floating-rate borrowings to asset sensitivity. Offsetting these positives are meaningful unrealized losses of $5.3M concentrated in a few credits, a modest decline in NAV, rising PIK exposure in select positions, increased expenses, and elevated leverage (~93% of net assets). Management articulated clear mitigation levers for rate declines and portfolio remediation plans, and the balance of news suggests the company is fundamentally stable with manageable near-term headwinds rather than structural deterioration.Positive Updates
Strong Fundings and Net Originations
Fundings for the quarter totaled $99.1 million, including two new private-equity sponsored investments totaling $37.8 million and $61.3 million of additional advances to existing portfolio companies. Exits and prepayments were $52.8 million, resulting in net originations of $46.3 million for the quarter.
Negative Updates
Unrealized Losses Increased
Unrealized losses rose to $5.3 million for the quarter, concentrated in three investment positions impacted by a recent government shutdown or where senior management has been replaced and improvements are expected in 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Fundings and Net Originations
Fundings for the quarter totaled $99.1 million, including two new private-equity sponsored investments totaling $37.8 million and $61.3 million of additional advances to existing portfolio companies. Exits and prepayments were $52.8 million, resulting in net originations of $46.3 million for the quarter.
Read all positive updates
Company Guidance
The company’s guidance emphasized balance-sheet flexibility and rate-sensitivity management: with fundings of $99.1M last quarter (two new PE‑sponsored investments of $37.8M plus $61.3M of add‑on advances), exits/prepayments of $52.8M and net originations of $46.3M, management expects a late‑stage pipeline of over $100M to more than offset recent repayments; quarter metrics included interest income of $23.9M on a weighted average yield of 12.2%, net investment income of $11.3M (~$0.50/share) and a net increase from operations of $5.5M ($0.24/share), total assets of $923M (investments $903M fair value), liabilities $445M, net assets $477M (NAV $21.13), gross leverage ~93.3% of net assets, a $365M credit facility with >$150M available, monthly distributions of $0.15 (annualized $1.80, ~8.8% yield at ~$20.44/share), PIK income $2.3M (9.6% of interest income) with $2.8M collected, three non‑earning debt investments cost $28.8M (fair value $13.2M, ~1.6%), $300k realized gains and $5.3M unrealized losses, a post‑quarter $42.8M prepayment (Vets Choice) with an $855k fee and a $6M new senior debt funding — and management believes it can absorb roughly a 50–75 bps SOFR decline (sensitivity roughly $2.4M per 50 bps, ~$5.3M per 100 bps) by increasing revolver usage, realizing commitment‑fee savings (prior run‑rate ~$2.6M vs current ~$1M), and closing new originations to support the dividend.Gladstone Capital Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 58.56M | 144.76M | 120.26M | 65.83M | 33.03M | 97.55M |
| Gross Profit | 37.39M | 126.33M | 98.55M | 44.98M | 20.06M | 86.04M |
| EBITDA | 36.89M | 122.28M | 94.72M | 42.67M | 19.91M | 84.30M |
| Net Income | 36.89M | 58.11M | 94.72M | 42.67M | 19.91M | 84.30M |
Balance Sheet | ||||||
| Total Assets | 922.81M | 907.60M | 812.47M | 719.50M | 660.97M | 566.50M |
| Cash, Cash Equivalents and Short-Term Investments | 4.17M | 32.37M | 2.17M | 1.31M | 2.01M | 671.00K |
| Total Debt | 405.90M | 397.86M | 324.61M | 300.91M | 339.41M | 237.11M |
| Total Liabilities | 416.34M | 425.56M | 333.73M | 310.80M | 345.48M | 248.06M |
| Stockholders Equity | 506.47M | 482.04M | 478.74M | 408.69M | 315.49M | 318.44M |
Cash Flow | ||||||
| Free Cash Flow | -22.98M | 43.63M | 3.24M | -10.86M | -76.40M | -14.06M |
| Operating Cash Flow | -22.98M | 43.63M | 3.24M | -10.86M | -76.40M | -14.06M |
| Investing Cash Flow | -40.31M | -49.12M | 0.00 | 0.00 | -259.05M | -165.99M |
| Financing Cash Flow | 65.58M | 35.55M | -2.34M | 10.15M | 77.66M | 12.44M |
Gladstone Capital Technical Analysis
Positive
19.22
Price Trends
18.04
Positive
19.17
Positive
20.88
Negative
Market Momentum
0.23
Negative
62.44
Neutral
90.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLAD, the sentiment is Positive. The current price of 19.22 is above the 20-day moving average (MA) of 17.86, above the 50-day MA of 18.04, and below the 200-day MA of 20.88, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 62.44 is Neutral, neither overbought nor oversold. The STOCH value of 90.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLAD.
Gladstone Capital Risk Analysis
Gladstone Capital disclosed 61 risk factors in its most recent earnings report. Gladstone Capital 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 Capital 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
GLAD
Gladstone Capital
19.26
-3.90
-16.84%
GAIN
Gladstone Investment
16.82
4.41
35.52%
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 Capital Corporate Events
Business Operations and StrategyExecutive/Board Changes
Gladstone Capital Announces CEO Transition and Leadership Promotions
Positive
Mar 23, 2026
On March 20, 2026, Gladstone Capital executed a planned leadership transition in which founder David Gladstone stepped down as CEO while remaining chairman of the board, investment committee member, and head of the affiliated adviser. Robert Marco...
Executive/Board ChangesShareholder Meetings
Gladstone Capital stockholders approve directors and auditor
Positive
Feb 5, 2026
On February 5, 2026, Gladstone Capital Corporation held its 2026 Annual Meeting of Stockholders, with common and preferred shareholders represented in person or by proxy. At the meeting, preferred shareholders elected Michela A. English and Anthon...
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.