Gladstone Investment Reports 10% Growth in Net Asset Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy GAIN?
Source: seekingalpha
- Significant Net Asset Growth: Gladstone Investment's net asset value increased by 10% in fiscal Q3 2025, reaching $14.95 per share, up from $13.53 on September 30, primarily driven by $70.2 million in unrealized investment appreciation, indicating effective asset management.
- Investment Income Misses Expectations: Total investment income of $25.1 million fell short of the $25.7 million consensus and decreased from $25.3 million in the previous quarter, reflecting challenges in the market environment and volatility in company earnings.
- New Investment Strategy: In Q3, Gladstone invested $33.1 million in new portfolio company Rowan Energy Inc., comprising $25.8 million in secured first lien debt and $7.3 million in preferred equity, showcasing the company's strategic expansion in the energy sector.
- Debt Redemption Initiative: The company voluntarily redeemed $74.8 million of its 8.00% notes during the quarter, despite facing a rise in net expenses to $31.6 million, indicating proactive measures in optimizing its capital structure.
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Analyst Views on GAIN
Wall Street analysts forecast GAIN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GAIN is 14.00 USD with a low forecast of 14.00 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 13.860
Low
14.00
Averages
14.00
High
14.00
Current: 13.860
Low
14.00
Averages
14.00
High
14.00
About GAIN
Gladstone Investment Corporation is a business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States. The Company operates as an externally managed, closed-end, non-diversified management investment company. Its investment objectives are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time; and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses, generally in combination with the aforementioned debt securities, that it believe can grow over time to permit them to sell its equity investments for capital gains. Its investment advisor is Gladstone Management Corporation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Gladstone Investment Q3 2026 Earnings Call Insights
- Significant Asset Growth: Gladstone Investment reported total assets of approximately $1.2 billion for Q3 2026, reflecting a $92 million increase from the previous quarter, primarily driven by new buyout investments and substantial appreciation of existing portfolio companies, thereby enhancing the company's financial stability and competitive position in the market.
- Consistent Investment Strategy: Year-to-date, the company has invested about $163 million in four new portfolio companies, a decrease from $221 million in fiscal year 2025, yet this strategy aligns with its goal of expanding the portfolio through acquisitions of operating companies, demonstrating its adaptability in the market.
- Stable Distribution Policy: The company maintained a monthly distribution of $0.08 per share, despite a slight decline in investment income to $25.1 million; management remains optimistic about future distribution strategies, expecting to continue providing stable returns to shareholders through effective yield protection measures.
- Focus on Non-accrual Investments: Currently, three portfolio companies are on non-accrual status, representing 3.8% of the portfolio at cost, and management is actively implementing measures to restore the income-generating capacity of these investments, highlighting its commitment to investment quality and risk management.
See More
Gladstone Investment Reports 10% Growth in Net Asset Value
- Significant Net Asset Growth: Gladstone Investment's net asset value increased by 10% in fiscal Q3 2025, reaching $14.95 per share, up from $13.53 on September 30, primarily driven by $70.2 million in unrealized investment appreciation, indicating effective asset management.
- Investment Income Misses Expectations: Total investment income of $25.1 million fell short of the $25.7 million consensus and decreased from $25.3 million in the previous quarter, reflecting challenges in the market environment and volatility in company earnings.
- New Investment Strategy: In Q3, Gladstone invested $33.1 million in new portfolio company Rowan Energy Inc., comprising $25.8 million in secured first lien debt and $7.3 million in preferred equity, showcasing the company's strategic expansion in the energy sector.
- Debt Redemption Initiative: The company voluntarily redeemed $74.8 million of its 8.00% notes during the quarter, despite facing a rise in net expenses to $31.6 million, indicating proactive measures in optimizing its capital structure.
See More
Gladstone Investment Reports Q3 2026 Earnings with Positive Outlook
- Adjusted Net Investment Income: Gladstone Investment reported an adjusted net investment income of $0.21 per weighted-average common share for Q3 2026, indicating the company's sustained profitability in high-yield investments, which boosts investor confidence.
- Total Investment Income Growth: The total investment income reached $25,062,000, reflecting strong performance across its investment portfolio and further solidifying its competitive position in the market.
- Dividend Declaration: The company declared a dividend of $0.08 per share, demonstrating its commitment to shareholder returns while also reflecting stable cash flow and profitability.
- Positive Market Outlook: The positive market outlook confirmed in the Q2 earnings report, along with a rating upgrade, suggests significant growth potential for the company, attracting increased investor interest in its stock performance.
See More
Gladstone Investment Corporation Reports Q3 2025 Earnings
- Decline in Investment Income: For the quarter ended December 31, 2025, total investment income was $25.1 million, down 0.9% from the previous quarter, indicating pressure on revenue generation that could impact future dividend capabilities.
- Net Investment Loss: The company reported a net investment loss of $6.5 million, or $0.16 per share, a significant drop from net investment income of $4.3 million in the prior quarter, reflecting challenges in expense management and revenue growth.
- Increase in Net Asset Value: As of December 31, 2025, the net asset value per share was $14.95, up 10.5% from the previous quarter, demonstrating that despite losses, the company's assets are appreciating, which may bolster investor confidence.
- New Investment Activity: In December 2025, the company invested $33.1 million in Rowan Energy Inc., indicating a strategic move to diversify its investment portfolio and enhance potential returns.
See More
Gladstone Investment to Announce FQ3 Earnings on February 3rd
- Earnings Announcement Schedule: Gladstone Investment is set to release its FQ3 earnings report on February 3rd after market close, with consensus estimates predicting an EPS of $0.23 and revenue of $25.68 million, indicating investor interest in the company's performance.
- Performance Expectation Analysis: Over the past year, Gladstone has failed to meet any EPS or revenue estimates, reflecting challenges in profitability and revenue growth that could impact investor confidence moving forward.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward and one downward revision, while revenue estimates have experienced four upward revisions with none downward, suggesting improved market expectations for the company's future revenue growth.
- Dividend and Financing Activities: Gladstone declared a $0.08 dividend per share and successfully priced a $60 million offering of 6.875% notes due in 2028, which may enhance the company's cash flow and capital structure, supporting its financial stability.
See More
Gladstone Investment (GAIN) Declares $0.08 Monthly Dividend with 6.92% Yield
- Stable Monthly Dividend: Gladstone Investment has declared a monthly dividend of $0.08 per share, consistent with previous distributions, demonstrating the company's stability and commitment to shareholder returns in the current market environment.
- Attractive Yield: The forward yield of 6.92% not only appeals to yield-seeking investors but also enhances the company's attractiveness in a competitive market landscape.
- Dividend Payment Schedule: The dividend is payable on January 30, with a record date of January 23 and an ex-dividend date also on January 23, indicating the company's ongoing commitment to its shareholders through timely distributions.
- Financial Health Indicator: Amid a competitive M&A landscape, Gladstone Investment reported an adjusted net investment income of $0.24, signaling robust financial health while expanding its investment portfolio.
See More
Gladstone Investment Q3 2026 Earnings Call Insights
- Significant Asset Growth: Gladstone Investment reported total assets of approximately $1.2 billion for Q3 2026, reflecting a $92 million increase from the previous quarter, primarily driven by new buyout investments and substantial appreciation of existing portfolio companies, thereby enhancing the company's financial stability and competitive position in the market.
- Consistent Investment Strategy: Year-to-date, the company has invested about $163 million in four new portfolio companies, a decrease from $221 million in fiscal year 2025, yet this strategy aligns with its goal of expanding the portfolio through acquisitions of operating companies, demonstrating its adaptability in the market.
- Stable Distribution Policy: The company maintained a monthly distribution of $0.08 per share, despite a slight decline in investment income to $25.1 million; management remains optimistic about future distribution strategies, expecting to continue providing stable returns to shareholders through effective yield protection measures.
- Focus on Non-accrual Investments: Currently, three portfolio companies are on non-accrual status, representing 3.8% of the portfolio at cost, and management is actively implementing measures to restore the income-generating capacity of these investments, highlighting its commitment to investment quality and risk management.
See More
Gladstone Investment Reports 10% Growth in Net Asset Value
- Significant Net Asset Growth: Gladstone Investment's net asset value increased by 10% in fiscal Q3 2025, reaching $14.95 per share, up from $13.53 on September 30, primarily driven by $70.2 million in unrealized investment appreciation, indicating effective asset management.
- Investment Income Misses Expectations: Total investment income of $25.1 million fell short of the $25.7 million consensus and decreased from $25.3 million in the previous quarter, reflecting challenges in the market environment and volatility in company earnings.
- New Investment Strategy: In Q3, Gladstone invested $33.1 million in new portfolio company Rowan Energy Inc., comprising $25.8 million in secured first lien debt and $7.3 million in preferred equity, showcasing the company's strategic expansion in the energy sector.
- Debt Redemption Initiative: The company voluntarily redeemed $74.8 million of its 8.00% notes during the quarter, despite facing a rise in net expenses to $31.6 million, indicating proactive measures in optimizing its capital structure.
See More
Gladstone Investment Reports Q3 2026 Earnings with Positive Outlook
- Adjusted Net Investment Income: Gladstone Investment reported an adjusted net investment income of $0.21 per weighted-average common share for Q3 2026, indicating the company's sustained profitability in high-yield investments, which boosts investor confidence.
- Total Investment Income Growth: The total investment income reached $25,062,000, reflecting strong performance across its investment portfolio and further solidifying its competitive position in the market.
- Dividend Declaration: The company declared a dividend of $0.08 per share, demonstrating its commitment to shareholder returns while also reflecting stable cash flow and profitability.
- Positive Market Outlook: The positive market outlook confirmed in the Q2 earnings report, along with a rating upgrade, suggests significant growth potential for the company, attracting increased investor interest in its stock performance.
See More
Gladstone Investment Corporation Reports Q3 2025 Earnings
- Decline in Investment Income: For the quarter ended December 31, 2025, total investment income was $25.1 million, down 0.9% from the previous quarter, indicating pressure on revenue generation that could impact future dividend capabilities.
- Net Investment Loss: The company reported a net investment loss of $6.5 million, or $0.16 per share, a significant drop from net investment income of $4.3 million in the prior quarter, reflecting challenges in expense management and revenue growth.
- Increase in Net Asset Value: As of December 31, 2025, the net asset value per share was $14.95, up 10.5% from the previous quarter, demonstrating that despite losses, the company's assets are appreciating, which may bolster investor confidence.
- New Investment Activity: In December 2025, the company invested $33.1 million in Rowan Energy Inc., indicating a strategic move to diversify its investment portfolio and enhance potential returns.
See More
Gladstone Investment to Announce FQ3 Earnings on February 3rd
- Earnings Announcement Schedule: Gladstone Investment is set to release its FQ3 earnings report on February 3rd after market close, with consensus estimates predicting an EPS of $0.23 and revenue of $25.68 million, indicating investor interest in the company's performance.
- Performance Expectation Analysis: Over the past year, Gladstone has failed to meet any EPS or revenue estimates, reflecting challenges in profitability and revenue growth that could impact investor confidence moving forward.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward and one downward revision, while revenue estimates have experienced four upward revisions with none downward, suggesting improved market expectations for the company's future revenue growth.
- Dividend and Financing Activities: Gladstone declared a $0.08 dividend per share and successfully priced a $60 million offering of 6.875% notes due in 2028, which may enhance the company's cash flow and capital structure, supporting its financial stability.
See More
Gladstone Investment (GAIN) Declares $0.08 Monthly Dividend with 6.92% Yield
- Stable Monthly Dividend: Gladstone Investment has declared a monthly dividend of $0.08 per share, consistent with previous distributions, demonstrating the company's stability and commitment to shareholder returns in the current market environment.
- Attractive Yield: The forward yield of 6.92% not only appeals to yield-seeking investors but also enhances the company's attractiveness in a competitive market landscape.
- Dividend Payment Schedule: The dividend is payable on January 30, with a record date of January 23 and an ex-dividend date also on January 23, indicating the company's ongoing commitment to its shareholders through timely distributions.
- Financial Health Indicator: Amid a competitive M&A landscape, Gladstone Investment reported an adjusted net investment income of $0.24, signaling robust financial health while expanding its investment portfolio.
See More
