Gladstone Investment Beats Fiscal Q1 EPS
Gladstone Investment (NASDAQ:GAIN), a business development company specializing in private equity-style buyouts and debt investments in lower middle market companies, reported first-quarter fiscal 2026 results on August 12, 2025. It delivered Non-GAAP earnings per share (EPS) of $0.24, outpacing analyst expectations of $0.22 (non-GAAP), although revenue (GAAP) came in at $23.54 million, missing consensus estimates of $24.27 million. Compared to Q4 FY2025, revenue (GAAP) dropped steeply by 14.5%. The period saw net asset value (NAV) per share fall to $12.99, a 4.1% decrease in net asset value per common share from March 31, 2025, to June 30, 2025, mainly due to substantial distributions to shareholders. The quarter was marked by high new investment activity, sharply lower total expenses (GAAP), and robust dividend payments.
Source: Gladstone Investment. Note: Analyst estimates for the quarter provided by FactSet.
Gladstone Investment is structured as a business development company, investing in a mix of debt and equity securities of private, lower middle market businesses. This means it typically provides loans (debt) and takes ownership stakes (equity) in companies that are often too small for larger private equity funds or commercial banks. Its approach aims for a target balance of about 75% debt and 25% equity in its portfolio, designed both to generate steady investment income and realized gains on successful company exits.
Source Fool.com
