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Gladstone Investment
(NASDAQ:GAIN)
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Rating:70Outperform
Price Target:
$18.00
▲(9.82% Upside)
Action:Reiterated
Date:08/09/26
GAIN’s score is supported by attractive valuation (very low P/E and high dividend yield) and a generally positive earnings-call outlook with dividend coverage and improved liquidity. The main constraint is financial performance quality driven by recently negative operating/free cash flow and softening revenue momentum. Technicals are moderately bullish, reinforcing the overall mid-to-high score.
Positive Factors
Distribution Coverage
Investment income currently covers the regular distribution, while $22.5M of spillover income supports roughly seven months of payments. This provides a meaningful buffer for shareholders if portfolio income fluctuates.
Negative Factors
Weak Cash Conversion
Negative recent operating and free cash flow contrasts with reported profitability and reduces financial flexibility. If sustained, weak cash conversion could constrain new investments, distributions, or the ability to absorb portfolio losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Distribution Coverage
Investment income currently covers the regular distribution, while $22.5M of spillover income supports roughly seven months of payments. This provides a meaningful buffer for shareholders if portfolio income fluctuates.
Read all positive factors
Gladstone Investment (GAIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$656.66M
Dividend Yield5.86%
Average Volume (3M)197.69K
Price to Earnings (P/E)3.9
Beta (1Y)0.68
Revenue Growth-57.47%
EPS Growth92.94%
CountryUS
Employees78
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)4.18
Shares Outstanding39,821,968
10 Day Avg. Volume178,312
30 Day Avg. Volume197,691
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.82
Price to Sales (P/S)7.69
P/FCF Ratio-5.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.96
Revenue Forecast (FY)$105.58M
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
Gladstone Investment makes money primarily from income and gains generated by its investment portfolio in private lower middle-market companies. Key revenue and earnings drivers include: (1) Interest income on debt investments: GAIN provides loans...
Gladstone Investment Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 03, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial picture: core recurring earnings recovered materially versus the prior quarter, adjusted NII covered distributions, portfolio yield remained high (12.9%), liquidity and capital structure were strengthened (expanded credit facility, lower spread), and active M&A and exit activity are expected to generate future realized gains. Key near-term headwinds included a NAV decline driven mainly by an SFEG valuation adjustment, a $9M realized loss from a proactive restructuring, slower year-to-date investment pace versus the three-year average, and a small number of nonaccruals. Management emphasized proactive portfolio management and expects the SFEG sale to produce a meaningful realized gain; they plan careful distribution/tax planning. Overall the positives (earnings recovery, strong yield, improved liquidity, pipeline and expected realized gains) outweigh the negatives, though risks from macro factors and some valuation timing remain.Positive Updates
Positive Net Investment Income and Coverage of Distributions
Generated net investment income of $15.9M ($0.40/share) and adjusted net investment income of $10.4M ($0.26/share). Adjusted NII rose from $7.9M to $10.4M (+31.6%) and per-share adjusted NII increased from $0.20 to $0.26 (+30%), both exceeding the quarterly distributions and covering the monthly dividend of $0.08/share ($0.96 annual).
Negative Updates
NAV Decline
Net asset value declined to $16.24/share from $16.78/share in prior quarter, a decrease of ~$0.54/share (~-3.2%), driven by $0.47/share of net unrealized depreciation (primarily SFEG valuation adjustment), $0.23/share of net realized losses, and $0.24/share of distributions (partially offset by $0.40/share of net investment income).
Read all updates
Q1-2027 Updates
Positive
Negative
Positive Net Investment Income and Coverage of Distributions
Generated net investment income of $15.9M ($0.40/share) and adjusted net investment income of $10.4M ($0.26/share). Adjusted NII rose from $7.9M to $10.4M (+31.6%) and per-share adjusted NII increased from $0.20 to $0.26 (+30%), both exceeding the quarterly distributions and covering the monthly dividend of $0.08/share ($0.96 annual).
Read all positive updates
Company Guidance
The company guided that it expects continued disciplined deployment and realizations while maintaining its $0.08 monthly common distribution ($0.96 annual), noting adjusted net investment income of $10.4 million ($0.26 per share) and net investment income of $15.9 million ($0.40 per share) for the quarter—both covering the regular distribution—and a total portfolio fair value of about $1.3 billion; key metrics included total investment income of $28.4 million (vs. $25.2M prior), adjusted NII spillover of $22.5 million ($0.56/share) sufficient to cover roughly seven months of distributions, total distributable income of $160.4 million ($4.03/share), a weighted-average interest-bearing portfolio principal of ~$706 million with a 12.9% yield, portfolio SOFR sensitivity of roughly +50–150 bps → +$0.02–$0.09/share (and the converse −$0.01–$0.03/share), three nonaccruals representing 3.9% of cost (1.0% of fair value), NAV of $16.24 (down from $16.78), a quarter portfolio valuation decline of $18.8 million (partly reflecting SFEG), asset coverage of 209%, debt/equity of 0.88x, approximately $158 million outstanding on the credit facility (facility increased to $405M, maturity extended to 2031 and spread reduced 40 bps), and at least $116 million invested in the first six months of the fiscal year (vs. a ~$183 million three‑year average), with management expecting additional accretive investments and near‑term exits (including SFEG) to drive supplemental distributions.Gladstone Investment Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.89M | 71.48M | 89.88M | 103.17M | 48.53M | 112.23M |
| Gross Profit | 67.25M | 13.85M | 61.63M | 79.05M | 32.66M | 99.15M |
| EBITDA | 114.16M | 225.77M | 65.32M | 85.31M | 47.77M | 102.32M |
| Net Income | 165.13M | 184.75M | 65.32M | 85.31M | 35.55M | 102.32M |
Balance Sheet | ||||||
| Total Assets | 1.30B | 1.32B | 1.01B | 938.08M | 765.64M | 740.41M |
| Cash, Cash Equivalents and Short-Term Investments | 11.56M | 1.16M | 14.30M | 2.46M | 2.68M | 14.19M |
| Total Debt | 570.84M | 564.47M | 455.71M | 398.35M | 292.61M | 261.35M |
| Total Liabilities | 656.20M | 654.62M | 507.32M | 445.37M | 325.90M | 294.58M |
| Stockholders Equity | 646.81M | 668.23M | 499.08M | 492.71M | 439.74M | 445.83M |
Cash Flow | ||||||
| Free Cash Flow | -101.84M | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Operating Cash Flow | -101.84M | -101.61M | 113.92M | 85.99M | -4.50M | 77.94M |
| Investing Cash Flow | -109.96M | -143.72M | -97.62M | -155.92M | -98.22M | -41.34M |
| Financing Cash Flow | 41.60M | 88.84M | -4.37M | 69.91M | -6.74M | -24.50M |
Gladstone Investment Technical Analysis
Positive
16.39
Price Trends
15.95
Positive
15.76
Positive
14.57
Positive
Market Momentum
0.09
Positive
53.07
Neutral
56.97
Neutral
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 16.39 is above the 20-day moving average (MA) of 16.38, above the 50-day MA of 15.95, and above the 200-day MA of 14.57, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 53.07 is Neutral, neither overbought nor oversold. The STOCH value of 56.97 is Neutral, 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 2 risk factors in its most recent earnings report. Gladstone Investment reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
Gladstone Investment Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $656.66M | 3.92 | 27.00% | 6.02% | -57.47% | 92.94% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $448.25M | 9.22 | 10.19% | 9.39% | -38.83% | -36.61% | |
63 Neutral | $394.07M | -119.98 | -0.46% | 15.50% | -28.84% | -107.31% | |
60 Neutral | $248.78M | 23.81 | <0.01% | 29.18% | 138.32% | -27.91% | |
60 Neutral | $350.71M | -3.25 | -17.68% | 27.85% | -141.00% | -809.18% | |
52 Neutral | $369.51M | 27.19 | 1.84% | 23.83% | 3.63% | ― |
* Financial Sector Average
GAIN
Gladstone Investment
16.40
3.19
24.20%
GLAD
Gladstone Capital
19.84
-4.02
-16.86%
PNNT
Pennantpark Investment
3.74
-2.16
-36.64%
TCPC
BlackRock TCP Capital
4.13
-1.81
-30.47%
CCAP
Crescent Capital BDC
10.60
-3.24
-23.39%
CION
CION Investment Corp
7.41
-1.56
-17.35%
Gladstone Investment Corporate Events
Shareholder Meetings
Gladstone Investment Adjourns 2026 Virtual Shareholder Meeting
Negative
Aug 6, 2026
On August 6, 2026, Gladstone Investment Corporation convened its 2026 Annual Meeting of Stockholders virtually but was forced to adjourn after failing to secure a quorum of common shares present or represented by proxy. As a result, no business wa...
Business Operations and StrategyM&A Transactions
Gladstone Investment Realizes Exit with SFEG Sale
Positive
Jul 8, 2026
On July 7, 2026, Gladstone Investment’s portfolio company SFEG Holdings Inc. agreed to sell Specialized Fabrication Equipment Group LLC to Enerpac Tool Group Corp., a global provider of industrial tools and services. The deal is expected to ...
Business Operations and StrategyPrivate Placements and Financing
Gladstone Investment Expands and Extends Corporate Credit Facility
Positive
Jun 11, 2026
On June 10, 2026, Gladstone Investment amended its Fifth Amended and Restated Credit Agreement, extending the revolving period of its corporate credit facility to June 8, 2029 and pushing final maturity to two years after that date. The amendment ...
Business Operations and StrategyExecutive/Board Changes
Gladstone Investment Adds Independent Director to Board
Positive
Jun 2, 2026
On June 1, 2026, Gladstone Investment Corporation expanded its board from seven to eight members and elected George “Chip” Stelljes, III as an independent director in the 2028 class, with his term set to run through the 2028 annual mee...
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.